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104th Congress                                                   Report
                      HOUSE OF REPRESENTATIVES       
 2d Session                                                     104-494
_______________________________________________________________________


 
        FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2854




                 March 25, 1996.--Ordered to be printed



104th Congress                                                   Report
                      HOUSE OF REPRESENTATIVES    
 2d Session                                                     104-494
_______________________________________________________________________




        FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2854




                 March 25, 1996.--Ordered to be printed



         FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-494
_______________________________________________________________________


         FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1966

                                _______


                 March 25, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Roberts, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2854]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2854), to modify the operation of certain agricultural 
programs, having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal 
Agriculture Improvement and Reform Act of 1996''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:
Sec. 1. Short title; table of contents.

               TITLE I--AGRICULTURAL MARKET TRANSITION ACT

            Subtitle A--Short Title, Purpose, and Definitions

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

              Subtitle B--Production Flexibility Contracts

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

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

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

                      Subtitle D--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Recourse loan program for commercial processors of dairy 
          products.
Sec. 143. Consolidation and reform of Federal milk marketing orders.
Sec. 144. Effect on fluid milk standards in State of California.
Sec. 145. Milk manufacturing marketing adjustment.
Sec. 146. Promotion.
Sec. 147. Northeast Interstate Dairy Compact.
Sec. 148. Dairy export incentive program.
Sec. 149. Authority to assist in establishment and maintenance of one or 
          more export trading companies.
Sec. 150. Standby authority to indicate entity best suited to provide 
          international market development and export services.
Sec. 151. Study and report regarding potential impact of Uruguay Round 
          on prices, income, and Government purchases.
Sec. 152. Promotion of United States dairy products in international 
          markets through dairy promotion program.

                      Chapter 2--Peanuts and Sugar

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

                       Subtitle E--Administration

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

              Subtitle F--Permanent Price Support Authority

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

      Subtitle G--Commission on 21st Century Production Agriculture

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

             Subtitle H--Miscellaneous Commodity Provisions

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

                      TITLE II--AGRICULTURAL TRADE

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

Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food Aid Consultative Group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of Commodity Credit Corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations. 
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
Sec. 229. Stimulation of foreign production.

        Subtitle B--Amendments to Agricultural Trade Act of 1978

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

         Subtitle C--Miscellaneous Agricultural Trade Provisions

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

                         TITLE III--CONSERVATION

                         Subtitle A--Definitions

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

              Subtitle B--Highly Erodible Land Conservation

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

                    Subtitle C--Wetland Conservation

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

     Subtitle D--Environmental Conservation Acreage Reserve Program

Sec. 331. Environmental conservation acreage reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.
Sec. 334. Environmental quality incentives program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.

           Subtitle E--Conservation Funding and Administration

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

     Subtitle F--National Natural Resources Conservation Foundation

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

                          Subtitle G--Forestry

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

            Subtitle H--Miscellaneous Conservation Provisions

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

                     TITLE IV--NUTRITION ASSISTANCE

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

                     TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

Sec. 501. Commodity promotion and evaluation.

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

Sec. 511. Short title.
Sec. 512. Findings and purpose.
Sec. 513. Definitions.
Sec. 514. Issuance of orders.
Sec. 515. Required terms in orders.
Sec. 516. Permissive terms in orders.
Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to subpoena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.
Sec. 526. Authorization of appropriations.

                     Subtitle C--Canola and Rapeseed

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

                          Subtitle D--Kiwifruit

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

                           Subtitle E--Popcorn

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

                        Subtitle F--Miscellaneous

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

                            TITLE VI--CREDIT

                    Subtitle A--Farm Ownership Loans

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

                       Subtitle B--Operating Loans

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

                       Subtitle C--Emergency Loans

Sec. 621. Hazard insurance requirement.
Sec. 622. Narrowing of authority to waive application of the credit 
          elsewhere test.
Sec. 623. Linking of emergency loans for crop or livestock changes to 
          natural disasters.
Sec. 624. Maximum emergency loan indebtedness.
Sec. 625. Establishment of date for emergency loan asset valuation.
Sec. 626. Insurance of emergency loans.

                  Subtitle D--Administrative Provisions

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

                     Subtitle E--General Provisions

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

                      TITLE VII--RURAL DEVELOPMENT

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

                      Chapter 1--General Provisions

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

   Chapter 2--Alternative Agricultural Research and Commercialization

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

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

                      Chapter 1--General Provisions

Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant program for small 
          communities.
Sec. 743. Emergency community water assistance grant program for 
          smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development 
          loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. Water systems for rural and Native villages in Alaska.
Sec. 758. Application requirements relating to water and waste disposal 
          loan and grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting systems.

             Chapter 2--Rural Community Advancement Program

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

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

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

         Subtitle D--Miscellaneous Rural Development Provisions

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

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

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

Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. National Agricultural Research, Extension, Education, and 
          Economics Advisory Board.
Sec. 803. Federal Advisory Committee Act exemption for Federal-State 
          cooperative programs.
Sec. 804. Coordination and planning of agricultural research, extension, 
          and education.
Sec. 805. Grants and fellowships for food and agricultural sciences 
          education.
Sec. 806. Grants for research on the production and marketing of 
          alcohols and industrial hydrocarbons from agricultural 
          commodities and forest products.
Sec. 807. Policy research centers.
Sec. 808. Human nutrition intervention and health promotion research 
          program.
Sec. 809. Food and nutrition education program.
Sec. 810. Purposes and findings relating to animal health and disease 
          research.
Sec. 811. Animal health and disease continuing research.
Sec. 812. Animal health and disease national or regional research.
Sec. 813. Grant program to upgrade agricultural and food sciences 
          facilities at 1890 land-grant colleges.
Sec. 814. National research and training centennial centers.
Sec. 815. Programs for Hispanic-serving institutions.
Sec. 816. International agricultural research and extension.
Sec. 817. Authorization of appropriations for agricultural research 
          programs.
Sec. 818. Authorization of appropriations for extension education.
Sec. 819. Supplemental and alternative crops research.
Sec. 820. Aquaculture assistance programs.
Sec. 821. Authorization of appropriations for rangeland research.

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

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

        Subtitle C--Repeal of Certain Activities and Authorities

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

              Subtitle D--Miscellaneous Research Provisions

Sec. 881. Critical agricultural materials research.
Sec. 882. Memorandum of agreement regarding 1994 Institutions.
Sec. 883. Smith-Lever Act funding for 1890 land-grant colleges, 
          including Tuskegee University.
Sec. 884. Agricultural research facilities.
Sec. 885. National competitive research initiative.
Sec. 886. Rural development research and education.
Sec. 887. Dairy goat research program.
Sec. 888. Competitive grants for research to eradicate and control brown 
          citrus aphid and citrus tristeza virus.
Sec. 889. Stuttgart National Aquaculture Research Center.
Sec. 890. Expansion of authorities related to National Arboretum.
Sec. 891. Transfer of aquacultural research center.
Sec. 892. Use of remote sensing data and other data to anticipate 
          potential food, feed, and fiber shortages or excesses and to 
          provide timely information to assist farmers with planting 
          decisions.
Sec. 893. Sense of Senate regarding methyl bromide alternative research 
          and extension activities.

          Subtitle E--Research Authority After Fiscal Year 1997

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

                         TITLE IX--MISCELLANEOUS

      Subtitle A--Commercial Transportation of Equine for Slaughter

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

                     Subtitle B--General Provisions

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

              TITLE I--AGRICULTURAL MARKET TRANSITION ACT

           Subtitle A--Short Title, Purpose, and Definitions

SEC. 101. SHORT TITLE AND PURPOSE.

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

SEC. 102. DEFINITIONS.

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

              Subtitle B--Production Flexibility Contracts

SEC. 111. AUTHORIZATION FOR USE OF PRODUCTION FLEXIBILITY CONTRACTS.

    (a) Offer and Terms.--The Secretary shall offer to enter 
into a production flexibility contract with an eligible owner 
or producer described in subsection (b) on a farm containing 
eligible cropland. Under the terms of a contract, the owner or 
producer shall agree, in exchange for annual contract payments, 
to--
            (1) comply with applicable conservation 
        requirements under subtitle B of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3811 et seq.);
            (2) comply with applicable wetland protection 
        requirements under subtitle C of title XII of the Act 
        (16 U.S.C. 3821 et seq.);
            (3) comply with the planting flexibility 
        requirements of section 118; and
            (4) use the land subject to the contract for an 
        agricultural or related activity, but not for a 
        nonagricultural commercial or industrial use, as 
        determined by the Secretary.
    (b) Eligible Owners and Producers Described.--The following 
producers and owners shall be eligible to enter into a 
contract:
            (1) An owner of eligible cropland who assumes all 
        or a part of the risk of producing a crop.
            (2) A producer (other than an owner) on eligible 
        cropland with a share-rent lease of the eligible 
        cropland, regardless of the length of the lease, if the 
        owner enters into the same contract.
            (3) A producer (other than an owner) on eligible 
        cropland who cash rents the eligible cropland under a 
        lease expiring on or after September 30, 2002, in which 
        case the owner is not required to enter into the 
        contract.
            (4) A producer (other than an owner) on eligible 
        cropland who cash rents the eligible cropland under a 
        lease expiring before September 30, 2002. The owner of 
        the eligible cropland may also enter into the same 
        contract. If the producer elects to enroll less than 
        100 percent of the eligible cropland in the contract, 
        the consent of the owner is required.
            (5) An owner of eligible cropland who cash rents 
        the eligible cropland and the lease term expires before 
        September 30, 2002, if the tenant declines to enter 
        into a contract. In the case of an owner covered by 
        this paragraph, contract payments shall not begin under 
        a contract until the lease held by the tenant ends.
            (6) An owner or producer described in any preceding 
        paragraph regardless of whether the owner or producer 
        purchased catastrophic risk protection for a 1996 crop 
        under section 508(b) of the Federal Crop Insurance Act 
        (7 U.S.C. 1508(b)).
    (c) Tenants and Sharecroppers.--In carrying out this 
subtitle, the Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
    (d) Eligible Cropland Described.--Land shall be considered 
to be cropland eligible for coverage under a contract only if 
the land has contract acreage attributable to the land and--
            (1) for at least 1 of the 1991 through 1995 crops, 
        at least a portion of the land was enrolled in the 
        acreage reduction program authorized for a crop of a 
        contract commodity under section 101B, 103B, 105B, or 
        107B of the Agricultural Act of 1949 or was considered 
        planted;
            (2) was subject to a conservation reserve contract 
        under section 1231 of the Food Security Act of 1985 (16 
        U.S.C. 3831) whose term expired, or was voluntarily 
        terminated, on or after January 1, 1995; or
            (3) is released from coverage under a conservation 
        reserve contract by the Secretary during the period 
        beginning on January 1, 1995, and ending on the date 
        specified in section 112(a)(2).
    (e) Quantity of Eligible Cropland Covered by Contract.--
Subject to subsection (b)(4), an owner or producer may enroll 
as contract acreage all or a portion of the eligible cropland 
on the farm.
    (f) Voluntary Reduction in Contract Acreage.--Subject to 
subsection (b)(4), an owner or producer who enters into a 
contract may subsequently reduce the quantity of contract 
acreage covered by the contract.

SEC. 112. ELEMENTS OF CONTRACTS.

    (a) Time for Contracting.--
            (1) Commencement.--To the extent practicable, the 
        Secretary shall commence entering into contracts not 
        later than 45 days after the date of enactment of this 
        title.
            (2) Deadline.--Except as provided in paragraph (3), 
        the Secretary may not enter into a contract after 
        August 1, 1996.
            (3) Conservation reserve lands.--
                    (A) In general.--At the beginning of each 
                fiscal year, the Secretary shall allow an 
                eligible owner or producer on a farm covered by 
                a conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 
                1985 (16 U.S.C. 3831) that terminates after the 
                date specified in paragraph (2) to enter into 
                or expand a production flexibility contract to 
                cover the contract acreage of the farm that was 
                subject to the former conservation reserve 
                contract.
                    (B) Amount.--Contract payments made for 
                contract acreage under this paragraph shall be 
                made at the rate and amount applicable to the 
                annual contract payment level for the 
                applicable crop. For the fiscal year in which 
                the conservation reserve contract is 
                terminated, the owner or producer subject to 
                the production flexibility contract may elect 
                to receive either contract payments or a 
                prorated payment under the conservation reserve 
                contract, but not both.
    (b) Duration of Contract.--
            (1) Beginning date.--The term of a contract shall 
        begin with--
                    (A) the 1996 crop of a contract commodity; 
                or
                    (B) in the case of acreage that was subject 
                to a conservation reserve contract described in 
                subsection (a)(3), the date the production 
                flexibility contract was entered into or 
                expanded to cover the acreage.
            (2) Ending date.--The term of a contract shall 
        extend through the 2002 crop, unless earlier terminated 
        by the owner or producer.
    (c) Estimation of Contract Payments.--At the time the 
Secretary enters into a contract, the Secretary shall provide 
an estimate of the minimum contract payments anticipated to be 
made during at least the first fiscal year for which contract 
payments will be made.
    (d) Time for Payment.--
            (1) In general.--An annual contract payment shall 
        be made not later than September 30 of each of fiscal 
        years 1996 through 2002.
            (2) Advance payments.--
                    (A) Fiscal year 1996.--At the option of the 
                owner or producer, 50 percent of the contract 
                payment for fiscal year 1996 shall be made not 
                later than 30 days after the date on which the 
                contract is entered into and approved by the 
                Secretary and the owner or producer.
                    (B) Subsequent fiscal years.--At the option 
                of the owner or producer for fiscal year 1997 
                and each subsequent fiscal year, 50 percent of 
                the annual contract payment shall be made on 
                December 15 or January 15 of the fiscal year. 
                The owner or producer may change the date 
                selected under this subparagraph for a 
                subsequent fiscal year by providing advance 
                notice to the Secretary.

SEC. 113. AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS.

    (a) Fiscal Year Amounts.--The Secretary shall, to the 
maximum extent practicable, expend the following amounts to 
satisfy the obligations of the Secretary under all contracts:
            (1) For fiscal year 1996, $5,570,000,000.
            (2) For fiscal year 1997, $5,385,000,000.
            (3) For fiscal year 1998, $5,800,000,000.
            (4) For fiscal year 1999, $5,603,000,000.
            (5) For fiscal year 2000, $5,130,000,000.
            (6) For fiscal year 2001, $4,130,000,000.
            (7) For fiscal year 2002, $4,008,000,000.
    (b) Allocation.--The amount made available for a fiscal 
year under subsection (a) shall be allocated as follows:
            (1) For wheat, 26.26 percent.
            (2) For corn, 46.22 percent.
            (3) For grain sorghum, 5.11 percent.
            (4) For barley, 2.16 percent.
            (5) For oats, 0.15 percent.
            (6) For upland cotton, 11.63 percent.
            (7) For rice, 8.47 percent.
    (c) Adjustment.--The Secretary shall adjust the amounts 
allocated for each contract commodity under subsection (b) for 
a particular fiscal year by--
            (1) adding an amount equal to the sum of all 
        repayments of deficiency payments required under 
        section 114(a)(2) of the Agricultural Act of 1949 (7 
        U.S.C. 1445j(a)(2)) for the commodity;
            (2) adding an amount equal to the sum of all 
        refunds of contract payments received during the 
        preceding fiscal year under section 116 for the 
        commodity; and
            (3) subtracting an amount equal to the amount, if 
        any, necessary during that fiscal year to satisfy 
        payment requirements for the commodity under sections 
        103B, 105B, or 107B of the Agricultural Act of 1949 for 
        the 1994 and 1995 crop years.
    (d) Additional Rice Allocation.--In addition to the 
adjustments required under subsection (c), the amount allocated 
under subsection (b) for rice contract payments shall be 
increased by $8,500,000 for each of fiscal years 1997 through 
2002.
    (e) Exclusion of Certain Amounts From Contract Payments.--
Any amount added pursuant to paragraphs (1) and (2) of 
subsection (c) to the amount available under subsection (a) for 
a fiscal year and paid to owners and producers under a contract 
shall not be treated as a contract payment for purposes of 
section 115(a) of this title or section 1001(1) of the Food 
Security Act of 1985 (7 U.S.C. 1308(1)). However, the amount of 
a payment covered by this subsection may not exceed $50,000 per 
person.
    (f) Effect of Payment Limitation.--The amount available 
under subsection (a) for a fiscal year shall be reduced by an 
amount equal to the total amount of contract payments for the 
fiscal year that owners and producers forgo as a result of 
operation of the payment limitation under section 1001(1) of 
the Food Security Act of 1985 (7 U.S.C. 1308(1)).

SEC. 114. DETERMINATION OF CONTRACT PAYMENTS UNDER CONTRACTS.

    (a) Individual Payment Quantity of Contract Commodities.--
For each contract, the payment quantity of a contract commodity 
for each fiscal year shall be equal to the product of--
            (1) 85 percent of the contract acreage; and
            (2) the farm program payment yield.
    (b) Annual Payment Quantity of Contract Commodities.--The 
payment quantity of each contract commodity covered by all 
contracts for each fiscal year shall be equal to the sum of the 
amounts calculated under subsection (a) for each individual 
contract.
    (c) Annual Payment Rate.--The payment rate for a contract 
commodity for each fiscal year shall be equal to--
            (1) the amount made available under section 113 for 
        the contract commodity for the fiscal year; divided by
            (2) the amount determined under subsection (b) for 
        the fiscal year.
    (d) Annual Payment Amount.--The amount to be paid under a 
contract in effect for each fiscal year with respect to all 
contract commodities covered by the contract shall be equal to 
the sum of the products of--
            (1) the payment quantity determined under 
        subsection (a) for each of the contract commodities 
        covered by the contract; and
            (2) the corresponding payment rate for the contract 
        commodity in effect under subsection (c).
    (e) Reduction in Payment Amount.--The contract payment 
determined under subsection (d) for an owner or producer for a 
fiscal year shall be immediately reduced by the amount of any 
repayment of deficiency payments that is required under section 
114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 
1445j(a)(2)) and is not repaid as of the date the contract 
payment is determined. The Secretary shall be required to 
collect the required repayment, or any claim based on the 
required repayment, as soon as the contract payment is 
determined.
    (f) Assignment of Contract Payments.--The provisions of 
section 8(g) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(g)) (relating to assignment of payments) 
shall apply to contract payments under this section. The owner 
or producer making the assignment, or the assignee, shall 
provide the Secretary with notice, in such manner as the 
Secretary may require in the contract, of any assignment made 
under this subsection.
    (g) Sharing of Contract Payments.--The Secretary shall 
provide for the sharing of contract payments among the owners 
and producers subject to the contract on a fair and equitable 
basis.

SEC. 115. PAYMENT LIMITATIONS.

    (a) Applicability of Payment Limitations.--Sections 1001 
through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 
through 1308-3), as amended by this section, shall be 
applicable to contract payments made under this subtitle.
    (b) Payment Limitations.--Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended by striking paragraphs 
(1) through (4) and inserting the following:
            ``(1) Limitation on payments under production 
        flexibility contracts.--The total amount of contract 
        payments made under the Agricultural Market Transition 
        Act to a person under 1 or more production flexibility 
        contracts during any fiscal year may not exceed 
        $40,000.
            ``(2) Limitation on marketing loan gains and loan 
        deficiency payments.--The total amount of the payments 
        specified in paragraph (3) that a person shall be 
        entitled to receive under the Agricultural Market 
        Transition Act for 1 or more contract commodities and 
        oilseeds during any crop year may not exceed $75,000.
            ``(3) Description of payments subject to 
        limitation.--The payments referred to in paragraph (2) 
        are the following:
                    ``(A) Any gain realized by a producer from 
                repaying a marketing assistance loan under 
                section 131 of the Agricultural Market 
                Transition Act for a crop of any loan commodity 
                at a lower level than the original loan rate 
                established for the loan commodity under 
                section 132 of the Act.
                    ``(B) Any loan deficiency payment received 
                for a loan commodity under section 135 of the 
                Act.
            ``(4) Definitions.--In this title, the terms 
        `contract commodity', `contract payment', `loan 
        commodity', `oilseed', and `production flexibility 
        contract' have the meaning given those terms in section 
        102 of the Agricultural Market Transition Act.''.
    (c) Conforming Amendments.--
            (1) Section 1001A of the Food Security Act of 1985 
        (7 U.S.C. 1308-1) is amended--
                    (A) in subsection (a)(1), by striking 
                ``under the Agricultural Act of 1949 (7 U.S.C. 
                1421 et seq.)''; and
                    (B) in subsection (b)(1), by striking 
                ``under the Agricultural Act of 1949''.
            (2) Section 1001C(a) of the Act (7 U.S.C. 1308-
        3(a)) is amended--
                    (A) by striking ``For each of the 1991 
                through 1997 crops, any'' and inserting 
                ``Any'';
                    (B) by striking ``production adjustment 
                payments, price support program loans, 
                payments, or benefits made available under the 
                Agricultural Act of 1949 (7 U.S.C. 1421 et 
                seq.),'' and inserting ``loans or payments made 
                available under the Agricultural Market 
                Transition Act,''; and
                    (C) by striking ``during the 1989 through 
                1997 crop years''.

SEC. 116. VIOLATIONS OF CONTRACT.

    (a) Termination of Contract For Violation.--Except as 
provided in subsection (b), if an owner or producer subject to 
a contract violates a requirement of the contract specified in 
section 111(a), the Secretary shall terminate the contract with 
respect to the owner or producer on each farm in which the 
owner or producer has an interest. On the termination, the 
owner or producer shall forfeit all rights to receive future 
contract payments on each farm in which the owner or producer 
has an interest and shall refund to the Secretary all contract 
payments received by the owner or producer during the period of 
the violation, together with interest on the contract payments 
as determined by the Secretary.
    (b) Refund or Adjustment.--If the Secretary determines that 
a violation does not warrant termination of the contract under 
subsection (a), the Secretary may require the owner or producer 
subject to the contract--
            (1) to refund to the Secretary that part of the 
        contract payments received by the owner or producer 
        during the period of the violation, together with 
        interest on the contract payments as determined by the 
        Secretary; or
            (2) to accept a reduction in the amount of future 
        contract payments that is proportionate to the severity 
        of the violation, as determined by the Secretary.
    (c) Foreclosure.--
            (1) Effect of foreclosure.--An owner or producer 
        subject to a contract may not be required to make 
        repayments to the Secretary of amounts received under 
        the contract if the contract acreage has been 
        foreclosed on and the Secretary determines that 
        forgiving the repayments is appropriate to provide fair 
        and equitable treatment.
            (2) Resumption of operation.--This subsection shall 
        not void the responsibilities of the owner or producer 
        under the contract if the owner or producer continues 
        or resumes operation, or control, of the contract 
        acreage. On the resumption of operation or control over 
        the contract acreage by the owner or producer, the 
        provisions of the contract in effect on the date of the 
        foreclosure shall apply.
    (d) Review.--A determination of the Secretary under this 
section shall be considered to be an adverse decision for 
purposes of the availability of administrative review of the 
determination.

SEC. 117. TRANSFER OR CHANGE OF INTEREST IN LANDS SUBJECT TO CONTRACT.

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

SEC. 118. PLANTING FLEXIBILITY.

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

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

SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) Nonrecourse Loans Available.--For each of the 1996 
through 2002 crops of each loan commodity, the Secretary shall 
make available to producers on a farm nonrecourse marketing 
assistance loans for loan commodities produced on the farm. The 
loans shall be made under terms and conditions that are 
prescribed by the Secretary and at the loan rate established 
under section 132 for the loan commodity.
    (b) Eligible Production.--The following production shall be 
eligible for a marketing assistance loan under subsection (a):
            (1) In the case of a marketing assistance loan for 
        a contract commodity, any production by a producer on a 
        farm containing eligible cropland covered by a 
        production flexibility contract.
            (2) In the case of a marketing assistance loan for 
        extra long staple cotton and oilseeds, any production.
    (c) Compliance With Conservation and Wetlands 
Requirements.--As a condition of the receipt of a marketing 
assistance loan under subsection (a), the producer shall comply 
with applicable conservation requirements under subtitle B of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.) and applicable wetland protection requirements under 
subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) 
during the term of the loan.
    (d) Additional Outlays Prohibited.--The Secretary shall 
carry out this subtitle in such a manner that there are no 
additional outlays under this subtitle as a result of the 
reconstitution of a farm that occurs as a result of the 
combination of another farm that does not contain eligible 
cropland covered by a production flexibility contract.

SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

    (a) Wheat.--
            (1) Loan rate.--Subject to paragraph (2), the loan 
        rate for a marketing assistance loan under section 131 
        for wheat shall be--
                    (A) not less than 85 percent of the simple 
                average price received by producers of wheat, 
                as determined by the Secretary, during the 
                marketing years for the immediately preceding 5 
                crops of wheat, excluding the year in which the 
                average price was the highest and the year in 
                which the average price was the lowest in the 
                period; but
                    (B) not more than $2.58 per bushel.
            (2) Stocks to use ratio adjustment.--If the 
        Secretary estimates for any marketing year that the 
        ratio of ending stocks of wheat to total use for the 
        marketing year will be--
                    (A) equal to or greater than 30 percent, 
                the Secretary may reduce the loan rate for 
                wheat for the corresponding crop by an amount 
                not to exceed 10 percent in any year;
                    (B) less than 30 percent but not less than 
                15 percent, the Secretary may reduce the loan 
                rate for wheat for the corresponding crop by an 
                amount not to exceed 5 percent in any year; or
                    (C) less than 15 percent, the Secretary may 
                not reduce the loan rate for wheat for the 
                corresponding crop.
    (b) Feed Grains.--
            (1) Loan rate for corn.--Subject to paragraph (2), 
        the loan rate for a marketing assistance loan under 
        section 131 for corn shall be--
                    (A) not less than 85 percent of the simple 
                average price received by producers of corn, as 
                determined by the Secretary, during the 
                marketing years for the immediately preceding 5 
                crops of corn, excluding the year in which the 
                average price was the highest and the year in 
                which the average price was the lowest in the 
                period; but
                    (B) not more than $1.89 per bushel.
            (2) Stocks to use ratio adjustment.--If the 
        Secretary estimates for any marketing year that the 
        ratio of ending stocks of corn to total use for the 
        marketing year will be--
                    (A) equal to or greater than 25 percent, 
                the Secretary may reduce the loan rate for corn 
                for the corresponding crop by an amount not to 
                exceed 10 percent in any year;
                    (B) less than 25 percent but not less than 
                12.5 percent, the Secretary may reduce the loan 
                rate for corn for the corresponding crop by an 
                amount not to exceed 5 percent in any year; or
                    (C) less than 12.5 percent, the Secretary 
                may not reduce the loan rate for corn for the 
                corresponding crop.
            (3) Other feed grains.--The loan rate for a 
        marketing assistance loan under section 131 for grain 
        sorghum, barley, and oats, respectively, shall be 
        established at such level as the Secretary determines 
        is fair and reasonable in relation to the rate that 
        loans are made available for corn, taking into 
        consideration the feeding value of the commodity in 
        relation to corn.
    (c) Upland Cotton.--
            (1) Loan rate.--Subject to paragraph (2), the loan 
        rate for a marketing assistance loan under section 131 
        for upland cotton shall be established by the Secretary 
        at such loan rate, per pound, as will reflect for the 
        base quality of upland cotton, as determined by the 
        Secretary, at average locations in the United States a 
        rate that is not less than the smaller of--
                    (A) 85 percent of the average price 
                (weighted by market and month) of the base 
                quality of cotton as quoted in the designated 
                United States spot markets during 3 years of 
                the 5-year period ending July 31 of the year 
                preceding the year in which the crop is 
                planted, excluding the year in which the 
                average price was the highest and the year in 
                which the average price was the lowest in the 
                period; or
                    (B) 90 percent of the average, for the 15-
                week period beginning July 1 of the year 
                preceding the year in which the crop is 
                planted, of the 5 lowest-priced growths of the 
                growths quoted for Middling 1\3/32\-inch cotton 
                C.I.F. Northern Europe (adjusted downward by 
                the average difference during the period April 
                15 through October 15 of the year preceding the 
                year in which the crop is planted between the 
                average Northern European price quotation of 
                such quality of cotton and the market 
                quotations in the designated United States spot 
                markets for the base quality of upland cotton), 
                as determined by the Secretary.
            (2) Limitations.--The loan rate for a marketing 
        assistance loan for upland cotton shall not be less 
        than $0.50 per pound or more than $0.5192 per pound.
    (d) Extra Long Staple Cotton.--The loan rate for a 
marketing assistance loan under section 131 for extra long 
staple cotton shall be--
            (1) not less than 85 percent of the simple average 
        price received by producers of extra long staple 
        cotton, as determined by the Secretary, during 3 years 
        of the 5-year period ending July 31 of the year 
        preceding the year in which the crop is planted, 
        excluding the year in which the average price was the 
        highest and the year in which the average price was the 
        lowest in the period; but
            (2) not more than $0.7965 per pound.
    (e) Rice.--The loan rate for a marketing assistance loan 
under section 131 for rice shall be $6.50 per hundredweight.
    (f) Oilseeds.--
            (1) Soybeans.--The loan rate for a marketing 
        assistance loan under section 131 for soybeans shall 
        be--
                    (A) not less than 85 percent of the simple 
                average price received by producers of 
                soybeans, as determined by the Secretary, 
                during the marketing years for the immediately 
                preceding 5 crops of soybeans, excluding the 
                year in which the average price was the highest 
                and the year in which the average price was the 
                lowest in the period; but
                    (B) not less than $4.92 or more than $5.26 
                per bushel.
            (2) Sunflower seed, canola, rapeseed, safflower, 
        mustard seed, and flaxseed.--The loan rate for a 
        marketing assistance loan under section 131 for 
        sunflower seed, canola, rapeseed, safflower, mustard 
        seed, and flaxseed, individually, shall be--
                    (A) not less than 85 percent of the simple 
                average price received by producers of 
                sunflower seed, individually, as determined by 
                the Secretary, during the marketing years for 
                the immediately preceding 5 crops of sunflower 
                seed, individually, excluding the year in which 
                the average price was the highest and the year 
                in which the average price was the lowest in 
                the period; but
                    (B) not less than $0.087 or more than 
                $0.093 per pound.
            (3) Other oilseeds.--The loan rates for a marketing 
        assistance loan under section 131 for other oilseeds 
        shall be established at such level as the Secretary 
        determines is fair and reasonable in relation to the 
        loan rate available for soybeans, except in no event 
        shall the rate for the oilseeds (other than cottonseed) 
        be less than the rate established for soybeans on a 
        per-pound basis for the same crop.

SEC. 133. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity 
(other than upland cotton or extra long staple cotton), a 
marketing assistance loan under section 131 shall have a term 
of 9 months beginning on the first day of the first month after 
the month in which the loan is made.
    (b) Special Rule for Cotton.--A marketing assistance loan 
for upland cotton or extra long staple cotton shall have a term 
of 10 months beginning on the first day of the month in which 
the loan is made.
    (c) Extensions Prohibited.--The Secretary may not extend 
the term of a marketing assistance loan for any loan commodity.

SEC. 134. REPAYMENT OF LOANS.

    (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--
The Secretary shall permit a producer to repay a marketing 
assistance loan under section 131 for wheat, corn, grain 
sorghum, barley, oats, and oilseeds at a rate that is the 
lesser of--
            (1) the loan rate established for the commodity 
        under section 132, plus interest (as determined by the 
        Secretary); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of 
                the commodity by the Federal Government;
                    (C) minimize the cost incurred by the 
                Federal Government in storing the commodity; 
                and
                    (D) allow the commodity produced in the 
                United States to be marketed freely and 
                competitively, both domestically and 
                internationally.
    (b) Repayment Rates for Upland Cotton and Rice.--The 
Secretary shall permit producers to repay a marketing 
assistance loan under section 131 for upland cotton and rice at 
a rate that is the lesser of--
            (1) the loan rate established for the commodity 
        under section 132, plus interest (as determined by the 
        Secretary); or
            (2) the prevailing world market price for the 
        commodity (adjusted to United States quality and 
        location), as determined by the Secretary.
    (c) Repayment Rates for Extra Long Staple Cotton.--
Repayment of a marketing assistance loan for extra long staple 
cotton shall be at the loan rate established for the commodity 
under section 132, plus interest (as determined by the 
Secretary).
    (d) Prevailing World Market Price.--For purposes of this 
section and section 136, the Secretary shall prescribe by 
regulation--
            (1) a formula to determine the prevailing world 
        market price for each loan commodity, adjusted to 
        United States quality and location; and
            (2) a mechanism by which the Secretary shall 
        announce periodically the prevailing world market price 
        for each loan commodity.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
            (1) In general.--During the period ending July 31, 
        2003, the prevailing world market price for upland 
        cotton (adjusted to United States quality and location) 
        established under subsection (d) shall be further 
        adjusted if--
                    (A) the adjusted prevailing world market 
                price is less than 115 percent of the loan rate 
                for upland cotton established under section 
                132, as determined by the Secretary; and
                    (B) the Friday through Thursday average 
                price quotation for the lowest-priced United 
                States growth as quoted for Middling (M) 1\3/
                32\-inch cotton delivered C.I.F. Northern 
                Europe is greater than the Friday through 
                Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for 
                Middling (M) 1\3/32\-inch cotton, delivered 
                C.I.F. Northern Europe (referred to in this 
                section as the ``Northern Europe price'').
            (2) Further adjustment.--Except as provided in 
        paragraph (3), the adjusted prevailing world market 
        price for upland cotton shall be further adjusted on 
        the basis of some or all of the following data, as 
        available:
                    (A) The United States share of world 
                exports.
                    (B) The current level of cotton export 
                sales and cotton export shipments.
                    (C) Other data determined by the Secretary 
                to be relevant in establishing an accurate 
                prevailing world market price for upland cotton 
                (adjusted to United States quality and 
                location).
            (3) Limitation on further adjustment.--The 
        adjustment under paragraph (2) may not exceed the 
        difference between--
                    (A) the Friday through Thursday average 
                price for the lowest-priced United States 
                growth as quoted for Middling 1\3/32\-inch 
                cotton delivered C.I.F. Northern Europe; and
                    (B) the Northern Europe price.

SEC. 135. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--Except as 
provided in subsection (d), the Secretary may make loan 
deficiency payments available to producers who, although 
eligible to obtain a marketing assistance loan under section 
131 with respect to a loan commodity, agree to forgo obtaining 
the loan for the commodity in return for payments under this 
section.
    (b) Computation.--A loan deficiency payment under this 
section shall be computed by multiplying--
            (1) the loan payment rate determined under 
        subsection (c) for the loan commodity; by
            (2) the quantity of the loan commodity that the 
        producers on a farm are eligible to place under loan 
        but for which the producers forgo obtaining the loan in 
        return for payments under this section.
    (c) Loan Payment Rate.--For purposes of this section, the 
loan payment rate shall be the amount by which--
            (1) the loan rate established under section 132 for 
        the loan commodity; exceeds
            (2) the rate at which a loan for the commodity may 
        be repaid under section 134.
    (d) Exception for Extra Long Staple Cotton.--This section 
shall not apply with respect to extra long staple cotton.

SEC. 136. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
            (1) Issuance.--Subject to paragraph (4), during the 
        period ending July 31, 2003, the Secretary shall issue 
        marketing certificates or cash payments to domestic 
        users and exporters for documented purchases by 
        domestic users and sales for export by exporters made 
        in the week following a consecutive 4-week period in 
        which--
                    (A) the Friday through Thursday average 
                price quotation for the lowest-priced United 
                States growth, as quoted for Middling (M) 1\3/
                32\-inch cotton, delivered C.I.F. Northern 
                Europe exceeds the Northern Europe price by 
                more than 1.25 cents per pound; and
                    (B) the prevailing world market price for 
                upland cotton (adjusted to United States 
                quality and location) does not exceed 130 
                percent of the loan rate for upland cotton 
                established under section 132.
            (2) Value of certificates or payments.--The value 
        of the marketing certificates or cash payments shall be 
        based on the amount of the difference (reduced by 1.25 
        cents per pound) in the prices during the 4th week of 
        the consecutive 4-week period multiplied by the 
        quantity of upland cotton included in the documented 
        sales.
            (3) Administration of marketing certificates.--
                    (A) Redemption, marketing, or exchange.--
                The Secretary shall establish procedures for 
                redeeming marketing certificates for cash or 
                marketing or exchange of the certificates for 
                agricultural commodities owned by the Commodity 
                Credit Corporation in such manner, and at such 
                price levels, as the Secretary determines will 
                best effectuate the purposes of cotton user 
                marketing certificates. Any price restrictions 
                that would otherwise apply to the disposition 
                of agricultural commodities by the Commodity 
                Credit Corporation shall not apply to the 
                redemption of certificates under this 
                subsection.
                    (B) Designation of commodities and 
                products.--To the extent practicable, the 
                Secretary shall permit owners of certificates 
                to designate the commodities and products, 
                including storage sites, the owners would 
                prefer to receive in exchange for certificates. 
                If any certificate is not presented for 
                redemption, marketing, or exchange within a 
                reasonable number of days after the issuance of 
                the certificate (as determined by the 
                Secretary), reasonable costs of storage and 
                other carrying charges, as determined by the 
                Secretary, shall be deducted from the value of 
                the certificate for the period beginning after 
                the reasonable number of days and ending with 
                the date of the presentation of the certificate 
                to the Commodity Credit Corporation.
                    (C) Transfers.--Marketing certificates 
                issued to domestic users and exporters of 
                upland cotton may be transferred to other 
                persons in accordance with regulations issued 
                by the Secretary.
            (4) Exception.--The Secretary shall not issue 
        marketing certificates or cash payments under paragraph 
        (1) if, for the immediately preceding consecutive 10-
        week period, the Friday through Thursday average price 
        quotation for the lowest priced United States growth, 
        as quoted for Middling (M) 1\3/32\-inch cotton, 
        delivered C.I.F. Northern Europe, adjusted for the 
        value of any certificate issued under this subsection, 
        exceeds the Northern Europe price by more than 1.25 
        cents per pound.
            (5) Limitation on expenditures.--Total expenditures 
        under this subsection shall not exceed $701,000,000 
        during fiscal years 1996 through 2002.
    (b) Special Import Quota.--
            (1) Establishment.--The President shall carry out 
        an import quota program that provides that, during the 
        period ending July 31, 2003, whenever the Secretary 
        determines and announces that for any consecutive 10-
        week period, the Friday through Thursday average price 
        quotation for the lowest-priced United States growth, 
        as quoted for Middling (M) 1\3/32\-inch cotton, 
        delivered C.I.F. Northern Europe, adjusted for the 
        value of any certificates issued under subsection (a), 
        exceeds the Northern Europe price by more than 1.25 
        cents per pound, there shall immediately be in effect a 
        special import quota.
            (2) Quantity.--The quota shall be equal to 1 week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent 3 
        months for which data are available.
            (3) Application.--The quota shall apply to upland 
        cotton purchased not later than 90 days after the date 
        of the Secretary's announcement under paragraph (1) and 
        entered into the United States not later than 180 days 
        after the date.
            (4) Overlap.--A special quota period may be 
        established that overlaps any existing quota period if 
        required by paragraph (1), except that a special quota 
        period may not be established under this subsection if 
        a quota period has been established under subsection 
        (c).
            (5) Preferential tariff treatment.--The quantity 
        under a special import quota shall be considered to be 
        an in-quota quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade 
                Preference Act (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 
                (19 U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized 
                Tariff Schedule.
            (6) Definition.--In this subsection, the term 
        ``special import quota'' means a quantity of imports 
        that is not subject to the over-quota tariff rate of a 
        tariff-rate quota.
    (c) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an 
        import quota program that provides that whenever the 
        Secretary determines and announces that the average 
        price of the base quality of upland cotton, as 
        determined by the Secretary, in the designated spot 
        markets for a month exceeded 130 percent of the average 
        price of such quality of cotton in the markets for the 
        preceding 36 months, notwithstanding any other 
        provision of law, there shall immediately be in effect 
        a limited global import quota subject to the following 
        conditions:
                    (A) Quantity.--The quantity of the quota 
                shall be equal to 21 days of domestic mill 
                consumption of upland cotton at the seasonally 
                adjusted average rate of the most recent 3 
                months for which data are available.
                    (B) Quantity if prior quota.--If a quota 
                has been established under this subsection 
                during the preceding 12 months, the quantity of 
                the quota next established under this 
                subsection shall be the smaller of 21 days of 
                domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to 
                increase the supply to 130 percent of the 
                demand.
                    (C) Preferential tariff treatment.--The 
                quantity under a limited global import quota 
                shall be considered to be an in-quota quantity 
                for purposes of--
                            (i) section 213(d) of the Caribbean 
                        Basin Economic Recovery Act (19 U.S.C. 
                        2703(d));
                            (ii) section 204 of the Andean 
                        Trade Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade 
                        Act of 1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' 
                        means, using the latest official data 
                        of the Bureau of the Census, the 
                        Department of Agriculture, and the 
                        Department of the Treasury--
                                    (I) the carry-over of 
                                upland cotton at the beginning 
                                of the marketing year (adjusted 
                                to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the 
                                current crop; and
                                    (III) imports to the latest 
                                date available during the 
                                marketing year.
                            (ii) Demand.--The term ``demand'' 
                        means--
                                    (I) the average seasonally 
                                adjusted annual rate of 
                                domestic mill consumption 
                                during the most recent 3 months 
                                for which data are available; 
                                and
                                    (II) the larger of--
                                            (aa) average 
                                        exports of upland 
                                        cotton during the 
                                        preceding 6 marketing 
                                        years; or
                                            (bb) cumulative 
                                        exports of upland 
                                        cotton plus outstanding 
                                        export sales for the 
                                        marketing year in which 
                                        the quota is 
                                        established.
                            (iii) Limited global import 
                        quota.--The term ``limited global 
                        import quota'' means a quantity of 
                        imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate 
                        quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may 
                be entered under the quota during the 90-day 
                period beginning on the date the quota is 
                established by the Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a 
        quota period may not be established that overlaps an 
        existing quota period or a special quota period 
        established under subsection (b).

SEC. 137. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
                    AND SEED COTTON.

    (a) High Moisture Feed Grains.--
            (1) Recourse loans available.--For each of the 1996 
        through 2002 crops of corn and grain sorghum, the 
        Secretary shall make available recourse loans, as 
        determined by the Secretary, to producers on a farm 
        containing eligible cropland covered by a production 
        flexibility contract who--
                    (A) normally harvest all or a portion of 
                their crop of corn or grain sorghum in a high 
                moisture state;
                    (B) present--
                            (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, 
                        feedlot, feed mill, distillery, or 
                        other similar entity approved by the 
                        Secretary, pursuant to regulations 
                        issued by the Secretary; or
                            (ii) field or other physical 
                        measurements of the standing or stored 
                        crop in regions of the United States, 
                        as determined by the Secretary, that do 
                        not have certified commercial scales 
                        from which certified scale tickets may 
                        be obtained within reasonable proximity 
                        of harvest operation;
                    (C) certify that they were the owners of 
                the feed grain at the time of delivery to, and 
                that the quantity to be placed under loan under 
                this subsection was in fact harvested on the 
                farm and delivered to, a feedlot, feed mill, or 
                commercial or on-farm high-moisture storage 
                facility, or to a facility maintained by the 
                users of corn and grain sorghum in a high 
                moisture state; and
                    (D) comply with deadlines established by 
                the Secretary for harvesting the corn or grain 
                sorghum and submit applications for loans under 
                this subsection within deadlines established by 
                the Secretary.
            (2) Eligibility of acquired feed grains.--A loan 
        under this subsection shall be made on a quantity of 
        corn or grain sorghum of the same crop acquired by the 
        producer equivalent to a quantity determined by 
        multiplying--
                    (A) the acreage of the corn or grain 
                sorghum in a high moisture state harvested on 
                the producer's farm; by
                    (B) the lower of the farm program payment 
                yield or the actual yield on a field, as 
                determined by the Secretary, that is similar to 
                the field from which the corn or grain sorghum 
                was obtained.
            (3) High moisture state defined.--In this 
        subsection, the term ``high moisture state'' means corn 
        or grain sorghum having a moisture content in excess of 
        Commodity Credit Corporation standards for marketing 
        assistance loans made by the Secretary under section 
        131.
    (b) Recourse Loans Available for Seed Cotton.--
            (1) Upland cotton.--For each of the 1996 through 
        2002 crops of upland cotton, the Secretary shall make 
        available recourse seed cotton loans, as determined by 
        the Secretary, to producers on a farm containing 
        eligible cropland covered by a production flexibility 
        contract.
            (2) Extra long staple cotton.--For each of the 1996 
        through 2002 crops of extra long staple cotton, the 
        Secretary shall make available recourse seed cotton 
        loans, as determined by the Secretary, on any 
        production.
    (c) Repayment Rates.--Repayment of a recourse loan made 
under this section shall be at the loan rate established for 
the commodity by the Secretary, plus interest (as determined by 
the Secretary).

                     Subtitle D--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 141. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--The Secretary of Agriculture shall 
support the price of milk produced in the 48 contiguous States 
through the purchase of cheese, butter, and nonfat dry milk 
produced from the milk.
    (b) Rate.--The price of milk shall be supported at the 
following rates per hundredweight for milk containing 3.67 
percent butterfat:
            (1) During calendar year 1996, $10.35.
            (2) During calendar year 1997, $10.20.
            (3) During calendar year 1998, $10.05.
            (4) During calendar year 1999, $9.90.
    (c) Purchase Prices.--The support purchase prices under 
this section for each of the products of milk (butter, cheese, 
and nonfat dry milk) announced by the Secretary shall be the 
same for all of that product sold by persons offering to sell 
the product to the Secretary. The purchase prices shall be 
sufficient to enable plants of average efficiency to pay 
producers, on average, a price that is not less than the rate 
of price support for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase 
Prices.--
            (1) Allocation of purchase prices.--The Secretary 
        may allocate the rate of price support between the 
        purchase prices for nonfat dry milk and butter in a 
        manner that will result in the lowest level of 
        expenditures by the Commodity Credit Corporation or 
        achieve such other objectives as the Secretary 
        considers appropriate. Not later than 10 days after 
        making or changing an allocation, the Secretary shall 
        notify the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate of the 
        allocation. Section 553 of title 5, United States Code, 
        shall not apply with respect to the implementation of 
        this section.
            (2) Timing of purchase price adjustments.--The 
        Secretary may make any such adjustments in the purchase 
        prices for nonfat dry milk and butter the Secretary 
        considers to be necessary not more than twice in each 
        calendar year.
    (e) Refunds of 1995 and 1996 Assessments.--
            (1) Refund required.--The Secretary shall provide 
        for a refund of the entire reduction required under 
        section 204(h)(2) of the Agricultural Act of 1949 (7 
        U.S.C. 1446e(h)(2)), as in effect on the day before the 
        amendment made by subsection (g), in the price of milk 
        received by a producer during calendar year 1995 or 
        1996, if the producer provides evidence that the 
        producer did not increase marketings in calendar year 
        1995 or 1996 when compared to calendar year 1994 or 
        1995, respectively.
            (2) Exception.--This subsection shall not apply 
        with respect to a producer for a particular calendar 
        year if the producer has already received a refund 
        under section 204(h) of the Agricultural Act of 1949 
        for the same fiscal year before the effective date of 
        this section.
            (3) Treatment of refund.--A refund under this 
        subsection shall not be considered as any type of price 
        support or payment for purposes of sections 1211 and 
        1221 of the Food Security Act of 1985 (16 U.S.C. 3811 
        and 3821).
    (f) Commodity Credit Corporation.--The Secretary shall 
carry out the program authorized by this section through the 
Commodity Credit Corporation.
    (g) Conforming Repeal.--Effective on the first day of the 
first month beginning after the date of enactment of this 
title, section 204 of the Agricultural Act of 1949 (7 U.S.C. 
1446e) is repealed.
    (h) Period of Effectiveness.--This section (other than 
subsection (g)) shall be effective only during the period 
beginning on the first day of the first month beginning after 
the date of enactment of this title and ending on December 31, 
1999. The program authorized by this section shall terminate on 
December 31, 1999, and shall be considered to have expired 
notwithstanding section 257 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).

SEC. 142. RECOURSE LOAN PROGRAM FOR COMMERCIAL PROCESSORS OF DAIRY 
                    PRODUCTS.

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

SEC. 143. CONSOLIDATION AND REFORM OF FEDERAL MILK MARKETING ORDERS.

    (a) Amendment of Orders.--
            (1) Required consolidation.--The Secretary shall 
        amend Federal milk marketing orders issued under 
        section 8c of the Agricultural Adjustment Act (7 U.S.C. 
        608c), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937, to limit the number of 
        Federal milk marketing orders to not less than 10 and 
        not more than 14 orders.
            (2) Inclusion of california as separate order.--
        Upon the petition and approval of California dairy 
        producers in the manner provided in section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
        with amendments by the Agricultural Marketing Agreement 
        Act of 1937, the Secretary shall designate the State of 
        California as a separate Federal milk marketing order. 
        The order covering California shall have the right to 
        reblend and distribute order receipts to recognize 
        quota value.
            (3) Related issues addressed in consolidation.--
        Among the issues the Secretary is authorized to 
        implement as part of the consolidation of Federal milk 
        marketing orders are the following:
                    (A) The use of utilization rates and 
                multiple basing points for the pricing of fluid 
                milk.
                    (B) The use of uniform multiple component 
                pricing when developing 1 or more basic formula 
                prices for manufacturing milk.
            (4) Effect of existing law.--In implementing the 
        consolidation of Federal milk marketing orders and 
        related reforms under this subsection, the Secretary 
        may not consider, or base any decision on, the table 
        contained in section 8c(5)(A) of the Agricultural 
        Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with 
        amendments by the Agricultural Marketing Agreement Act 
        of 1937, as added by section 131 of the Food Security 
        Act of 1985.
    (b) Expedited Process.--
            (1) Use of informal rulemaking.--To implement the 
        consolidation of Federal milk marketing orders and 
        related reforms under subsection (a), the Secretary 
        shall use the notice and comment procedures provided in 
        section 553 of title 5, United States Code.
            (2) Time limitations.--
                    (A) Proposed amendments.--The Secretary 
                shall announce the proposed amendments to be 
                made under subsection (a) not later than 2 
                years after the date of enactment of this 
                title.
                    (B) Final amendments.--The Secretary shall 
                implement the amendments not later than 3 years 
                after the date of enactment of this title.
            (3) Effect of court order.--The actions authorized 
        by this subsection are intended to ensure the timely 
        publication and implementation of new and amended 
        Federal milk marketing orders. In the event that the 
        Secretary is enjoined or otherwise restrained by a 
        court order from publishing or implementing the 
        consolidation and related reforms under subsection (a), 
        the length of time for which that injunction or other 
        restraining order is effective shall be added to the 
        time limitations specified in paragraph (2) thereby 
        extending those time limitations by a period of time 
        equal to the period of time for which the injunction or 
        other restraining order is effective.
    (c) Failure To Timely Consolidate Orders.--If the Secretary 
fails to implement the consolidation required under subsection 
(a)(1) within the time period required under subsection 
(b)(2)(B) (plus any additional period provided under subsection 
(b)(3)), the Secretary may not assess or collect assessments 
from milk producers or handlers under such section 8c for 
marketing order administration and services provided under such 
section after the end of that period until the consolidation is 
completed. The Secretary may not reduce the level of services 
provided under the section on account of the prohibition 
against assessments, but shall rather cover the cost of 
marketing order administration and services through funds 
available for the Agricultural Marketing Service of the 
Department.
    (d) Report Regarding Further Reforms.--
            (1) Report required.--Not later than April 1, 1997, 
        the Secretary shall submit to Congress a report--
                    (A) reviewing the Federal milk marketing 
                order system established pursuant to section 8c 
                of the Agricultural Adjustment Act (7 U.S.C. 
                608c), reenacted with amendments by the 
                Agricultural Marketing Agreement Act of 1937, 
                in light of the reforms required by subsection 
                (a);
                    (B) describing the efforts underway and the 
                progress made in implementing the reforms 
                required by subsection (a); and
                    (C) containing such recommendations as the 
                Secretary considers appropriate for further 
                improvements and reforms to the Federal milk 
                marketing order system.
            (2) Effect of other laws.--Any limitation imposed 
        by Act of Congress on the conduct or completion of 
        reports to Congress shall not apply to the report 
        required under this section, unless the limitation 
        specifically refers to this section.

SEC. 144. EFFECT ON FLUID MILK STANDARDS IN STATE OF CALIFORNIA.

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

SEC. 145. MILK MANUFACTURING MARKETING ADJUSTMENT.

    (a) Maximum Allowances Established.--No State shall provide 
for a manufacturing allowance for the processing of milk in 
excess of--
            (1) $1.65 per hundredweight of milk for milk 
        manufactured into butter and nonfat dry milk; and
            (2) $1.80 per hundredweight of milk for milk 
        manufactured into cheese.
    (b) Manufacturing Allowance Defined.--In this section, the 
term ``manufacturing allowance'' means--
            (1) the amount by which the product price value of 
        butter and nonfat dry milk manufactured from a hundred 
        pounds of milk containing 3.5 pounds of butterfat and 
        8.7 pounds of milk solids not fat resulting from a 
        State's yield and product price formulas exceeds the 
        class price for the milk used to produce those 
        products; or
            (2) the amount by which the product price value of 
        cheese manufactured from a hundred pounds of milk 
        containing 3.5 pounds of butterfat and 8.7 pounds of 
        milk solids not fat resulting from a State's yield and 
        product price formulas exceeds the class price for the 
        milk used to produce cheese.
    (c) Effect of Violation.--If the Secretary determines 
following a hearing that a State has in effect a manufacturing 
allowance that exceeds the manufacturing allowance authorized 
in subsection (a), the Secretary shall suspend purchases of 
cheddar cheese, butter, and nonfat dry milk produced in that 
State until such time as the State complies with such 
subsection.
    (d) Effective Date; Implementation.--This section (other 
than subsection (e)) shall be effective during the period 
beginning on the first day of the first month beginning after 
the date of enactment of this title and ending on December 31, 
1999. During that period, the Secretary may exercise the 
authority provided to the Secretary under this section without 
regard to the issuance of regulations intended to carry out 
this section.
    (e) Conforming Repeal.--Effective on the first day of the 
first month beginning after the date of enactment of this 
title, section 102 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1446e-1) is repealed.

SEC. 146. PROMOTION.

    (a) Congressional Purpose.--Section 1999B(a) of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
            (1) by redesignating paragraphs (6), (7) and (8) as 
        paragraphs (7), (8) and (9), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) the congressional purpose underlying this 
        subtitle is to maintain and expand markets for fluid 
        milk products, not to maintain or expand any 
        processor's share of those markets and that the 
        subtitle does not prohibit or restrict individual 
        advertising or promotion of fluid milk products since 
        the programs created and funded by this subtitle are 
        not extended to replace individual advertising and 
        promotion efforts;''.
    (b) Congressional Policy.--Section 1999B(b) of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to 
read as follows:
    ``(b) Policy.--It is declared to be the policy of Congress 
that it is in the public interest to authorize the 
establishment, through the exercise of powers provided in this 
subtitle, of an orderly procedure for developing, financing, 
through adequate assessments on fluid milk products produced in 
the United States and carrying out an effective, continuous, 
and coordinated program of promotion, research, and consumer 
information designed to strengthen the position of the dairy 
industry in the marketplace and maintain and expand domestic 
and foreign markets and uses for fluid milk products, the 
purpose of which is not to compete with or replace individual 
advertising or promotion efforts designed to promote individual 
brand name or trade name fluid milk products, but rather to 
maintain and expand the markets for all fluid milk products, 
with the goal and purpose of this subtitle being a national 
governmental goal that authorizes and funds programs that 
result in government speech promoting government objectives.''.
    (c) Research.--Section 1999C(6) of the Fluid Milk Promotion 
Act of 1990 (7 U.S.C. 6402(6)) is amended to read as follows:
            ``(6) Research.--The term `research' means market 
        research to support advertising and promotion efforts, 
        including educational activities, research directed to 
        product characteristics, product development, including 
        new products or improved technology in production, 
        manufacturing or processing of milk and the products of 
        milk.''.
    (d) Voting.--
            (1) Initial referenda.--Section 1999N(b)(2) of the 
        Fluid Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) 
        is amended by striking ``all processors'' and inserting 
        ``fluid milk processors voting in the referendum''.
            (2) Suspension or termination.--Section 1999O(c) of 
        such Act (7 U.S.C. 6414(c)) is amended--
                    (A) in paragraph (1), by striking ``all 
                processors'' and inserting ``fluid milk 
                processors voting in the preceding 
                referendum''; and
                    (B) in paragraph (2)(B), by striking ``all 
                processors'' and inserting ``fluid milk 
                processors voting in the referendum''.
    (e) Duration.--Section 1999O(a) of the Fluid Milk Promotion 
Act of 1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' 
and inserting ``2002''.

SEC. 147. NORTHEAST INTERSTATE DAIRY COMPACT.

    Congress hereby consents to the Northeast Interstate Dairy 
Compact entered into among the States of Connecticut, Maine, 
Massachusetts, New Hampshire, Rhode Island and Vermont as 
specified in section 1(b) Senate Joint Resolution 28 of the 
104th Congress, as placed on the calendar of the Senate, 
subject to the following conditions:
            (1) Finding of Compelling Public Interest.--Based 
        upon a finding by the Secretary of a compelling public 
        interest in the Compact region, the Secretary may grant 
        the States that have ratified the Northeast Interstate 
        Dairy Compact, as of the date of enactment of this 
        title, the authority to implement the Northeast 
        Interstate Dairy Compact.
            (2) Limitation on Manufacturing Price.--The 
        Northeast Interstate Dairy Compact Commission shall not 
        regulate Class II, Class III, or Class III-A milk used 
        for manufacturing purposes or any other milk, other 
        than Class I (fluid) milk, as defined by a Federal milk 
        marketing order issued under section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c) reenacted 
        with amendments by the Agricultural Marketing Agreement 
        Act of 1937.
            (3) Duration.--Consent for the Northeast Interstate 
        Dairy Compact shall terminate concurrent with the 
        Secretary's implementation of the dairy pricing and 
        Federal milk marketing order consolidation and reforms 
        under section 143.
            (4) Additional States.--Delaware, New Jersey, New 
        York, Pennsylvania, Maryland, and Virginia are the only 
        additional States that may join the Northeast 
        Interstate Dairy Compact, individually or otherwise, if 
        upon entry the State is contiguous to a participating 
        State and if Congress consents to the entry of the 
        State into the Compact after the date of enactment of 
        this title.
            (5) Compensation of Commodity Credit Corporation.--
        Before the end of each fiscal year that a Compact price 
        regulation is in effect, the Northeast Interstate Dairy 
        Compact Commission shall compensate the Commodity 
        Credit Corporation for the cost of any purchases of 
        milk and milk products by the Corporation that result 
        from the projected rate of increase in milk production 
        for the fiscal year within the Compact region in excess 
        of the projected national average rate of the increase 
        in milk production, as determined by the Secretary.
            (6) Milk Marketing Order Administrator.--At the 
        request of the Northeast Interstate Dairy Compact 
        Commission, the Administrator of the applicable Federal 
        milk marketing order issued under section 8(c)5 of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
        with amendments by the Agricultural Marketing Agreement 
        Act of 1937, shall provide technical assistance to the 
        Compact Commission and be compensated for that 
        assistance.
            (7) Further Conditions.--The Northeast Interstate 
        Dairy Compact Commission shall not prohibit or in any 
        way limit the marketing in the Compact region of any 
        milk or milk product produced in any other production 
        area in the United States. The Compact Commission shall 
        respect and abide by the ongoing procedures between 
        Federal milk marketing orders with respect to the 
        sharing of proceeds from sales within the Compact 
        region of bulk milk, packaged milk, or producer milk 
        originating from outside of the Compact region. The 
        Compact Commission shall not use compensatory payments 
        under section 10(6) of the Compact as a barrier to the 
        entry of milk into the Compact region or for any other 
        purpose. Establishment of a Compact over-order price, 
        in itself, shall not be considered a compensatory 
        payment or a limitation or prohibition on the marketing 
        of milk.

SEC. 148. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Duration.--Section 153(a) of the Food Security Act of 
1985 (15 U.S.C. 713a-14(a)) is amended by striking ``2001'' and 
inserting ``2002''.
    (b) Sole Discretion.--Section 153(b) of the Food Security 
Act of 1985 (15 U.S.C. 713a-14(b)) is amended by inserting 
``sole'' before ``discretion''.
    (c) Elements of Program.--Section 153(c) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(c)) is amended--
            (1) by striking ``and'' at the end of paragraph 
        (1);
            (2) by striking the period at the end of paragraph 
        (2) and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) the maximum volume of dairy product exports 
        allowable consistent with the obligations of the United 
        States as a member of the World Trade Organization is 
        exported under the program each year (minus the volume 
        sold under section 1163 of the Food Security Act of 
        1985 (Public Law 99-198; 7 U.S.C. 1731 note) during 
        that year), except to the extent that the export of 
        such a volume under the program would, in the judgment 
        of the Secretary, exceed the limitations on the value 
        set forth in subsection (f); and
            ``(4) payments may be made under the program for 
        exports to any destination in the world for the purpose 
        of market development, except a destination in a 
        country with respect to which shipments from the United 
        States are otherwise restricted by law.''.
    (d) Market Development.--Section 153(e)(1) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--
            (1) by striking ``and'' and inserting ``the''; and
            (2) by inserting before the period the following: 
        ``, and any additional amount that may be required to 
        assist in the development of world markets for United 
        States dairy products''.
    (e) Maximum Allowable Amounts.--Section 153 of the Food 
Security Act of 1985 (15 U.S.C. 713a-14) is amended by adding 
at the end the following:
    ``(f) Required Funding.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Commodity Credit Corporation shall in each 
        year use money and commodities for the program under 
        this section in the maximum amount consistent with the 
        obligations of the United States as a member of the 
        World Trade Organization, minus the amount expended 
        under section 1163 of the Food Security Act of 1985 
        (Public Law 99-198; 7 U.S.C. 1731 note) during that 
        year.
            ``(2) Volume limitations.--The Commodity Credit 
        Corporation may not exceed the limitations specified in 
        subsection (c)(3) on the volume of allowable dairy 
        product exports.''.

SEC. 149. AUTHORITY TO ASSIST IN ESTABLISHMENT AND MAINTENANCE OF ONE 
                    OR MORE EXPORT TRADING COMPANIES.

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

SEC. 150. STANDBY AUTHORITY TO INDICATE ENTITY BEST SUITED TO PROVIDE 
                    INTERNATIONAL MARKET DEVELOPMENT AND EXPORT 
                    SERVICES.

    (a) Indication of Entity Best Suited To Assist 
International Market Development for and Export of United 
States Dairy Products.--The Secretary of Agriculture shall 
indicate which entity or entities autonomous of the Government 
of the United States, which seeks such a designation, is best 
suited to facilitate the international market development for 
and exportation of United States dairy products, if the 
Secretary determines that--
            (1) the United States dairy industry has not 
        established an export trading company under the Export 
        Trading Company Act of 1982 (15 U.S.C. 4001 et seq.) 
        for the purpose of facilitating the international 
        market development for an exportation of dairy products 
        produced in the United States on or before June 30, 
        1997; or
            (2) the quantity of exports of United States dairy 
        products during the 12-month period preceding July 1, 
        1998 does not exceed the quantity of exports of United 
        States dairy products during the 12-month period 
        preceding July 1, 1997 by 1.5 billion pounds (milk 
        equivalent, total solids basis).
    (b) Funding of Export Activities.--The Secretary shall 
assist the entity or entities identified under subsection (a) 
in identifying sources of funding for the activities specified 
in subsection (a) from within the dairy industry and elsewhere.
    (c) Application of Section.--This section shall apply only 
during the period beginning on July 1, 1997 and ending on 
September 30, 2000.

SEC. 151. STUDY AND REPORT REGARDING POTENTIAL IMPACT OF URUGUAY ROUND 
                    ON PRICES, INCOME, AND GOVERNMENT PURCHASES.

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

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

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

                      CHAPTER 2--PEANUTS AND SUGAR

SEC. 155. PEANUT PROGRAM.

    (a) Quota Peanuts.--
            (1) Availability of loans.--The Secretary shall 
        make nonrecourse loans available to producers of quota 
        peanuts.
            (2) Loan rate.--The national average quota loan 
        rate for quota peanuts shall be $610 per ton.
            (3) Inspection, handling, or storage.--The loan 
        amount may not be reduced by the Secretary by any 
        deductions for inspection, handling, or storage.
            (4) Location and other factors.--The Secretary may 
        make adjustments in the loan rate for quota peanuts for 
        location of peanuts and such other factors as are 
        authorized by section 162.
            (5) Offers from handlers.--If a producer markets a 
        quota peanut crop, meeting quality requirements for 
        domestic edible use, through the marketing association 
        loan for two consecutive marketing years and the 
        Secretary determines that a handler provided the 
        producer with a written offer, upon delivery, for the 
        purchase of the quota peanut crops at a price equal to 
        or in excess of the quota support price, the producer 
        shall be ineligible for quota price support for the 
        next marketing year. The Secretary shall establish the 
        method by which a producer may appeal a determination 
        under this paragraph regarding ineligibility for quota 
        price support.
    (b) Additional Peanuts.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary shall make nonrecourse loans available to 
        producers of additional peanuts at such rates as the 
        Secretary finds appropriate, taking into consideration 
        the demand for peanut oil and peanut meal, expected 
        prices of other vegetable oils and protein meals, and 
        the demand for peanuts in foreign markets.
            (2) Limitation.--The Secretary shall establish the 
        support rate on additional peanuts at a level estimated 
        by the Secretary to ensure that there are no losses to 
        the Commodity Credit Corporation on the sale or 
        disposal of the peanuts.
            (3) Announcement.--The Secretary shall announce the 
        loan rate for additional peanuts of each crop not later 
        than February 15 preceding the marketing year for the 
        crop for which the loan rate is being determined.
    (c) Area Marketing Associations.--
            (1) Warehouse storage loans.--
                    (A) In general.--In carrying out 
                subsections (a) and (b), the Secretary shall 
                make warehouse storage loans available in each 
                of the producing areas (described in section 
                1446.95 of title 7 of the Code of Federal 
                Regulations (January 1, 1989)) to a designated 
                area marketing association of peanut producers 
                that is selected and approved by the Secretary 
                and that is operated primarily for the purpose 
                of conducting the loan activities. The 
                Secretary may not make warehouse storage loans 
                available to any cooperative that is engaged in 
                operations or activities concerning peanuts 
                other than those operations and activities 
                specified in this section and section 358e of 
                the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1359a).
                    (B) Administrative and supervisory 
                activities.--An area marketing association 
                shall be used in administrative and supervisory 
                activities relating to loans and marketing 
                activities under this section and section 358e 
                of the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1359a).
                    (C) Association costs.--Loans made to the 
                association under this paragraph shall include 
                such costs as the area marketing association 
                reasonably may incur in carrying out the 
                responsibilities, operations, and activities of 
                the association under this section and section 
                358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
            (2) Pools for quota and additional peanuts.--
                    (A) In general.--The Secretary shall 
                require that each area marketing association 
                establish pools and maintain complete and 
                accurate records by area and segregation for 
                quota peanuts handled under loan and for 
                additional peanuts placed under loan, except 
                that separate pools shall be established for 
                Valencia peanuts produced in New Mexico.
                    (B) Eligibility to participate in new 
                mexico pools.--
                            (i) In general.--Except as provided 
                        in clause (ii), in the case of the 1996 
                        and subsequent crops, Valencia peanuts 
                        not physically produced in the State of 
                        New Mexico shall not be eligible to 
                        participate in the pools of the State.
                            (ii) Exception.--A producer of 
                        Valencia peanuts may enter Valencia 
                        peanuts that are produced in Texas into 
                        the pools of New Mexico in a quantity 
                        not greater than the average annual 
                        quantity of the peanuts that the 
                        producer entered into the New Mexico 
                        pools for the 1990 through 1995 crops.
                    (C) Types of peanuts.--Bright hull and dark 
                hull Valencia peanuts shall be considered as 
                separate types for the purpose of establishing 
                the pools.
                    (D) Net gains.--Net gains on peanuts in 
                each pool, unless otherwise approved by the 
                Secretary, shall be distributed only to 
                producers who placed peanuts in the pool and 
                shall be distributed in proportion to the value 
                of the peanuts placed in the pool by each 
                producer. Net gains for peanuts in each pool 
                shall consist of the following:
                            (i) Quota peanuts.--For quota 
                        peanuts, the net gains over and above 
                        the loan indebtedness and other costs 
                        or losses incurred on peanuts placed in 
                        the pool.
                            (ii) Additional peanuts.--For 
                        additional peanuts, the net gains over 
                        and above the loan indebtedness and 
                        other costs or losses incurred on 
                        peanuts placed in the pool for 
                        additional peanuts.
    (d) Losses.--Losses in quota area pools shall be covered 
using the following sources in the following order of priority:
            (1) Transfers from additional loan pools.--The 
        proceeds due any producer from any pool shall be 
        reduced by the amount of any loss that is incurred with 
        respect to peanuts transferred from an additional loan 
        pool to a quota loan pool by the producer under section 
        358-1(b)(8) of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1358-1(b)(8)).
            (2) Producers in same pool.--Further losses in an 
        area quota pool shall be offset by reducing the gain of 
        any producer in the pool by the amount of pool gains 
        attributed to the same producer from the sale of 
        additional peanuts for domestic and edible export use.
            (3) Offset within area.--Further losses in an area 
        quota pool shall be offset by any gains or profits from 
        additional peanuts (other than separate type pools 
        established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) owned or controlled by 
        the Commodity Credit Corporation in that area and sold 
        for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply 
        to profits or gains from a farm with 1 acre or less of 
        peanut production.
            (4) First use of marketing assessments.--The 
        Secretary shall use funds collected under subsection 
        (g) (except funds attributable to handlers) to offset 
        further losses in area quota pools. The Secretary shall 
        transfer to the Treasury those funds collected under 
        subsection (g) and available for use under this 
        paragraph that the Secretary determines are not 
        required to cover losses in area quota pools.
            (5) Cross compliance.--Further losses in area quota 
        pools, other than losses incurred as a result of 
        transfers from additional loan pools to quota loan 
        pools under section 358-1(b)(8) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)), shall 
        be offset by any gains or profits from quota pools in 
        other production areas (other than separate type pools 
        established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) in such manner as the 
        Secretary shall by regulation prescribe.
            (6) Offset generally.--If losses in an area quota 
        pool have not been entirely offset under the preceding 
        paragraphs, further losses shall be offset by any gains 
        or profits from additional peanuts (other than separate 
        type pools established under subsection (c)(2)(A) for 
        Valencia peanuts produced in New Mexico) owned or 
        controlled by the Commodity Credit Corporation and sold 
        for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply 
        to profits or gains from a farm with 1 acre or less of 
        peanut production.
            (7) Second use of marketing assessments.--The 
        Secretary shall use funds collected under subsection 
        (g) and attributable to handlers to offset further 
        losses in area quota pools. The Secretary shall 
        transfer to the Treasury those funds collected under 
        subsection (g) and available for use under this 
        paragraph that the Secretary determines are not 
        required to cover losses in area quota pools.
            (8) Increased assessments.--If use of the 
        authorities provided in the preceding paragraphs is not 
        sufficient to cover losses in an area quota pool, the 
        Secretary shall increase the marketing assessment for 
        producers established under subsection (g) by such an 
        amount as the Secretary considers necessary to cover 
        the losses. The increased assessment shall apply only 
        to quota peanuts in the production area covered by the 
        pool. Amounts collected under subsection (g) as a 
        result of the increased assessment shall be retained by 
        the Secretary to cover losses in that pool.
    (e) Disapproval of Quotas.--Notwithstanding any other 
provision of law, no loan for quota peanuts may be made 
available by the Secretary for any crop of peanuts with respect 
to which poundage quotas have been disapproved by producers, as 
provided for in section 358-1(d) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1358-1(d)).
    (f) Quality Improvement.--
            (1) In general.--With respect to peanuts under 
        loan, the Secretary shall--
                    (A) promote the crushing of peanuts at a 
                greater risk of deterioration before peanuts of 
                a lesser risk of deterioration;
                    (B) ensure that all Commodity Credit 
                Corporation inventories of peanuts sold for 
                domestic edible use must be shown to have been 
                officially inspected by licensed Department 
                inspectors both as farmer stock and shelled or 
                cleaned in-shell peanuts;
                    (C) continue to endeavor to operate the 
                peanut program so as to improve the quality of 
                domestic peanuts and ensure the coordination of 
                activities under the Peanut Administrative 
                Committee established under Marketing Agreement 
                No. 146, regulating the quality of domestically 
                produced peanuts (under the Agricultural 
                Adjustment Act (7 U.S.C. 601 et seq.), 
                reenacted with amendments by the Agricultural 
                Marketing Agreement Act of 1937); and
                    (D) ensure that any changes made in the 
                peanut program as a result of this subsection 
                requiring additional production or handling at 
                the farm level shall be reflected as an upward 
                adjustment in the Department loan schedule.
            (2) Exports and other peanuts.--The Secretary shall 
        require that all peanuts in the domestic and export 
        markets fully comply with all quality standards under 
        Marketing Agreement No. 146.
    (g) Marketing Assessment.--
            (1) In general.--The Secretary shall provide for a 
        nonrefundable marketing assessment. The assessment 
        shall be made on a per pound basis in an amount equal 
        to 1.1 percent for each of the 1994 and 1995 crops, 
        1.15 percent for the 1996 crop, and 1.2 percent for 
        each of the 1997 through 2002 crops, of the national 
        average quota or additional peanut loan rate for the 
        applicable crop.
            (2) First purchasers.--
                    (A) In general.--Except as provided under 
                paragraphs (3) and (4), the first purchaser of 
                peanuts shall--
                            (i) collect from the producer a 
                        marketing assessment equal to the 
                        quantity of peanuts acquired multiplied 
                        by--
                                    (I) in the case of each of 
                                the 1994 and 1995 crops, .55 
                                percent of the applicable 
                                national average loan rate;
                                    (II) in the case of the 
                                1996 crop, .6 percent of the 
                                applicable national average 
                                loan rate; and
                                    (III) in the case of each 
                                of the 1997 through 2002 crops, 
                                .65 percent of the applicable 
                                national average loan rate;
                            (ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the 
                        quantity of peanuts acquired multiplied 
                        by .55 percent of the applicable 
                        national average loan rate; and
                            (iii) remit the amounts required 
                        under clauses (i) and (ii) to the 
                        Commodity Credit Corporation in a 
                        manner specified by the Secretary.
                    (B) Definition of first purchaser.--In this 
                subsection, the term ``first purchaser'' means 
                a person acquiring peanuts from a producer 
                except that in the case of peanuts forfeited by 
                a producer to the Commodity Credit Corporation, 
                the term means the person acquiring the peanuts 
                from the Commodity Credit Corporation.
            (3) Other private marketings.--In the case of a 
        private marketing by a producer directly to a consumer 
        through a retail or wholesale outlet or in the case of 
        a marketing by the producer outside of the continental 
        United States, the producer shall be responsible for 
        the full amount of the assessment and shall remit the 
        assessment by such time as is specified by the 
        Secretary.
            (4) Loan peanuts.--In the case of peanuts that are 
        pledged as collateral for a loan made under this 
        section, the producer portion of the assessment shall 
        be deducted from the proceeds of the loan. The 
        remainder of the assessment shall be paid by the first 
        purchaser of the peanuts. For purposes of computing net 
        gains on peanuts under this section, the reduction in 
        loan proceeds shall be treated as having been paid to 
        the producer.
            (5) Penalties.--If any person fails to collect or 
        remit the reduction required by this subsection or 
        fails to comply with the requirements for recordkeeping 
        or otherwise as are required by the Secretary to carry 
        out this subsection, the person shall be liable to the 
        Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of peanuts involved in the 
                violation; by
                    (B) the national average quota peanut rate 
                for the applicable crop year.
            (6) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    (h) Crops.--Subsections (a) through (g) shall be effective 
only for the 1996 through 2002 crops of peanuts.
    (i) Poundage Quotas.--
            (1) In general.--Part VI of subtitle B of title III 
        of the Agricultural Adjustment Act of 1938 is amended--
                    (A) in section 358-1 (7 U.S.C. 1358-1)--
                            (i) in the section heading, by 
                        striking ``1991 THROUGH 1997 CROPS 
                        OF'';
                            (ii) in subsections (a)(1), 
                        (b)(1)(B), (b)(2)(A), (b)(2)(C), and 
                        (b)(3)(A), by striking ``of the 1991 
                        through 1997 marketing years'' each 
                        place it appears and inserting 
                        ``marketing year'';
                            (iii) in subsection (a)(3), by 
                        striking ``1990'' and inserting ``1990, 
                        for the 1991 through 1995 marketing 
                        years, and 1995, for the 1996 through 
                        2002 marketing years'';
                            (iv) in subsection (b)(1)(A)--
                                    (I) by striking ``each of 
                                the 1991 through 1997 marketing 
                                years'' and inserting ``each 
                                marketing year''; and
                                    (II) in clause (i), by 
                                inserting before the semicolon 
                                the following: ``, in the case 
                                of the 1991 through 1995 
                                marketing years, and the 1995 
                                marketing year, in the case of 
                                the 1996 through 2002 marketing 
                                years'';
                            (v) in subsection (b)(1), by adding 
                        at the end the following:
                    ``(D) Certain farms ineligible for quota.--
                Effective beginning with the 1998 crop, the 
                Secretary shall not establish a farm poundage 
                quota under subparagraph (A) for a farm owned 
                or controlled by--
                            ``(i) a municipality, airport 
                        authority, school, college, refuge, or 
                        other public entity (other than a 
                        university used for research purposes); 
                        or
                            ``(ii) a person who is not a 
                        producer and resides in another 
                        State.'';
                            (vi) in subsection (b)(2), by 
                        adding at the end the following:
                    ``(E) Transfer of quota from ineligible 
                farms.--Any farm poundage quota held at the end 
                of the 1996 marketing year by a farm described 
                in paragraph (1)(D) shall be allocated to other 
                farms in the same State on such basis as the 
                Secretary may by regulation prescribe.''; and
                            (vii) in subsection (f), by 
                        striking ``1997'' and inserting 
                        ``2002'';
                    (B) in section 358b (7 U.S.C. 1358b)--
                            (i) in the section heading, by 
                        striking ``1991 THROUGH 1995 CROPS 
                        OF''; and
                            (ii) in subsection (c), by striking 
                        ``1995'' and inserting ``2002'';
                    (C) in section 358c(d) (7 U.S.C. 1358c(d)), 
                by striking ``1995'' and inserting ``2002''; 
                and
                    (D) in section 358e (7 U.S.C. 1359a)--
                            (i) in the section heading, by 
                        striking ``FOR 1991 THROUGH 1997 CROPS 
                        OF PEANUTS''; and
                            (ii) in subsection (i), by striking 
                        ``1997'' and inserting ``2002''.
            (2) Elimination of quota floor.--Section 358-
        1(a)(1) of the Agricultural Adjustment Act of 1938 (7 
        U.S.C. 1358-1(a)(1)) is amended by striking the second 
        sentence.
            (3) Temporary quota allocation.--Section 358-1 of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-
        1) is amended--
                    (A) in subsection (a)(1), by striking 
                ``domestic edible, seed,'' and inserting 
                ``domestic edible use (except seed)''; and
                    (B) in subsection (b)(2)--
                            (i) in subparagraph (A), by 
                        striking ``subparagraph (B) and subject 
                        to''; and
                            (ii) by striking subparagraph (B) 
                        and inserting the following:
                    ``(B) Temporary quota allocation.--
                            ``(i) Allocation related to seed 
                        peanuts.--Temporary allocation of quota 
                        pounds for the marketing year only in 
                        which the crop is planted shall be made 
                        to producers for each of the 1996 
                        through 2002 marketing years as 
                        provided in this subparagraph.
                            ``(ii) Quantity.--The temporary 
                        quota allocation shall be equal to the 
                        pounds of seed peanuts planted on the 
                        farm, as may be adjusted and determined 
                        under regulations prescribed by the 
                        Secretary.
                            ``(iii) Additional quota.--The 
                        temporary allocation of quota pounds 
                        under this paragraph shall be in 
                        addition to the farm poundage quota 
                        otherwise established under this 
                        subsection and shall be credited, for 
                        the applicable marketing year only, in 
                        total, to the producer of the peanuts 
                        on the farm in a manner prescribed by 
                        the Secretary.
                            ``(iv) Effect of other 
                        requirements.--Nothing in this section 
                        alters or changes the requirements 
                        regarding the use of quota and 
                        additional peanuts established by 
                        section 358e(b).''.
            (4) Undermarketings.--Part VI of subtitle B of 
        title III of the Agricultural Adjustment Act of 1938 is 
        amended--
                    (A) in section 358-1(b) (7 U.S.C. 1358-
                1(b))--
                            (i) in paragraph (1)(B), by 
                        striking ``including--'' and clauses 
                        (i) and (ii) and inserting ``including 
                        any increases resulting from the 
                        allocation of quotas voluntarily 
                        released for 1 year under paragraph 
                        (7).'';
                            (ii) in paragraph (3)(B), by 
                        striking ``include--'' and clauses (i) 
                        and (ii) and inserting ``include any 
                        increase resulting from the allocation 
                        of quotas voluntarily released for 1 
                        year under paragraph (7).''; and
                            (iii) by striking paragraphs (8) 
                        and (9); and
                    (B) in section 358b(a) (7 U.S.C. 
                1358b(a))--
                            (i) in paragraph (2), by striking 
                        ``(including any applicable under 
                        marketings)''; and
                            (ii) in paragraph (3), by striking 
                        ``(including any applicable 
                        undermarketings)''.
            (5) Disaster transfers.--Section 358-1(b) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-
        1(b)), as amended by paragraph (4)(A)(iii), is amended 
        by adding at the end the following:
            ``(8) Disaster transfers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), additional peanuts produced 
                on a farm from which the quota poundage was not 
                harvested and marketed because of drought, 
                flood, or any other natural disaster, or any 
                other condition beyond the control of the 
                producer, may be transferred to the quota loan 
                pool for pricing purposes on such basis as the 
                Secretary shall by regulation provide.
                    ``(B) Limitation.--The poundage of peanuts 
                transferred under subparagraph (A) shall not 
                exceed the difference between--
                            ``(i) the total quantity of peanuts 
                        meeting quality requirements for 
                        domestic edible use, as determined by 
                        the Secretary, marketed from the farm; 
                        and
                            ``(ii) the total farm poundage 
                        quota, excluding quota pounds 
                        transferred to the farm in the fall.
                    ``(C) Support rate.--Peanuts transferred 
                under this paragraph shall be supported at 70 
                percent of the quota support rate for the 
                marketing years in which the transfers occur. 
                The transfers for a farm shall not exceed 25 
                percent of the total farm quota pounds, 
                excluding pounds transferred in the fall.''.
            (6) Sale or lease.--Section 358b(a) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b(a)) 
        is amended--
                    (A) by striking paragraph (1) and inserting 
                the following:
            ``(1) Sale and lease authority.--
                    ``(A) Sale or lease within same state.--
                Subject to subparagraph (B) and such terms and 
                conditions as the Secretary may prescribe, the 
                owner, or operator with the permission of the 
                owner, of a farm in a State for which a farm 
                poundage quota has been established may sell or 
                lease all or any part of the poundage quota to 
                any other owner or operator of a farm within 
                the same State for transfer to the farm. 
                However, any such lease of poundage quota may 
                be entered into in the fall or after the normal 
                planting season--
                            ``(i) if not less than 90 percent 
                        of the basic quota (the farm quota and 
                        temporary quota transfers), plus any 
                        poundage quota transferred to the farm 
                        under this subsection, has been planted 
                        or considered planted on the farm from 
                        which the quota is to be leased; and
                            ``(ii) under such terms and 
                        conditions as the Secretary may by 
                        regulation prescribe.
                ``In the case of a fall transfer or a transfer 
                after the normal planting season by a cash 
                lessee, the landowner shall not be required to 
                sign the transfer authorization. A fall 
                transfer or a transfer after the normal 
                planting season may be made not later than 72 
                hours after the peanuts that are the subject of 
                the transfer are inspected and graded.
                    ``(B) Percentage limitations on spring 
                transfers.--Spring transfers under subparagraph 
                (A) by sale or lease of a quota for farms in a 
                county to any owner or operator of a farm 
                outside the county within the same State shall 
                not exceed the applicable percentage specified 
                in this subparagraph of the quotas of all farms 
                in the originating county (as of January 1, 
                1996) for the crop year in which the transfer 
                is made, plus the total amount of quotas 
                eligible for transfer from the originating 
                county in the preceding crop year that were not 
                transferred in that year or that were 
                transferred through an expired lease. However, 
                not more than an aggregate of 40 percent of the 
                total poundage quota within a county (as of 
                January 1, 1996) may be transferred outside of 
                the county. Cumulative unexpired transfers 
                outside of a county may not exceed for a crop 
                year the following:
                            ``(i) For the 1996 crop, 15 
                        percent.
                            ``(ii) For the 1997 crop, 25 
                        percent.
                            ``(iii) For the 1998 crop, 30 
                        percent.
                            ``(iv) For the 1999 crop, 35 
                        percent.
                            ``(v) For the 2000 and subsequent 
                        crops, not more than an aggregate of 40 
                        percent of the total poundage quota 
                        within the county as of January 1, 
                        1996.
                    ``(C) Clarification regarding fall 
                transfers.--The limitation in subparagraph (B) 
                does not apply to 1-year fall transfers, which 
                in all cases may be made to any farm in the 
                same State.
                    ``(D) Effect of transfer.--Any farm 
                poundage quota transferred under this paragraph 
                shall not result in any reduction in the farm 
                poundage quota for the transferring farm if the 
                transferred quota is produced or considered 
                produced on the receiving farm.''; and
                    (B) by adding at the end the following:
            ``(4) Transfers in counties with small quotas.--
        Notwithstanding paragraphs (1) and (2), in the case of 
        any county in a State for which the poundage quota 
        allocated to the county was less than 100,000 pounds 
        for the preceding year's crop, all or any part of a 
        farm poundage quota may be transferred by sale or lease 
        or otherwise from a farm in the county to a farm in 
        another county in the same State.''.

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) Reduction in Loan Rates.--
            (1) Reduction required.--The Secretary shall reduce 
        the loan rate specified in subsection (a) for 
        domestically grown sugarcane and subsection (b) for 
        domestically grown sugar beets if the Secretary 
        determines that negotiated reductions in export 
        subsidies and domestic subsidies provided for sugar of 
        other major sugar growing, producing, and exporting 
        countries in the aggregate exceed the commitments made 
        as part of the Agreement on Agriculture.
            (2) Extent of reduction.--The Secretary shall not 
        reduce the loan rate under subsection (a) or (b) below 
        a rate that provides an equal measure of support to 
        that provided by other major sugar growing, producing, 
        and exporting countries, based on an examination of 
        both domestic and export subsidies subject to reduction 
        in the Agreement on Agriculture.
            (3) Announcement of reduction.--The Secretary shall 
        announce any loan rate reduction to be made under this 
        subsection as far in advance as is practicable.
            (4) Definitions.--In this subsection:
                    (A) Agreement on agriculture.--The term 
                ``Agreement on Agriculture'' means the 
                Agreement on Agriculture referred to in section 
                101(d)(2) of the Uruguay Round Agreements Act 
                (19 U.S.C. 3511(d)(2)).
                    (B) Major sugar countries.--The term 
                ``major sugar growing, producing, and exporting 
                countries'' means--
                            (i) the countries of the European 
                        Union; and
                            (ii) the 10 foreign countries not 
                        covered by subparagraph (A) that the 
                        Secretary determines produce the 
                        greatest quantity of sugar.
    (d) Term of Loans.--
            (1) In general.--A loan under this section during 
        any fiscal year shall be made available not earlier 
        than the beginning of the fiscal year and shall mature 
        at the earlier of--
                    (A) the end of the 9-month period beginning 
                on the first day of the first month after the 
                month in which the loan is made; or
                    (B) the end of the fiscal year in which the 
                loan is made.
            (2) Supplemental loans.--In the case of a loan made 
        under this section in the last 3 months of a fiscal 
        year, the processor may repledge the sugar as 
        collateral for a second loan in the subsequent fiscal 
        year, except that the second loan shall--
                    (A) be made at the loan rate in effect at 
                the time the second loan is made; and
                    (B) mature in 9 months less the quantity of 
                time that the first loan was in effect.
    (e) Loan Type; Processor Assurances.--
            (1) Recourse loans.--Subject to paragraph (2), the 
        Secretary shall carry out this section through the use 
        of recourse loans.
            (2) Nonrecourse loans.--During any fiscal year in 
        which the tariff rate quota for imports of sugar into 
        the United States is established at, or is increased 
        to, a level in excess of 1,500,000 short tons raw 
        value, the Secretary shall carry out this section by 
        making available nonrecourse loans. Any recourse loan 
        previously made available by the Secretary under this 
        section during the fiscal year shall be changed by the 
        Secretary into a nonrecourse loan.
            (3) Processor assurances.--If the Secretary is 
        required under paragraph (2) to make nonrecourse loans 
        available during a fiscal year or to change recourse 
        loans into nonrecourse loans, the Secretary shall 
        obtain from each processor that receives a loan under 
        this section such assurances as the Secretary considers 
        adequate to ensure that the processor will provide 
        payments to producers that are proportional to the 
        value of the loan received by the processor for sugar 
        beets and sugarcane delivered by producers served by 
        the processor. The Secretary may establish appropriate 
        minimum payments for purposes of this paragraph.
    (f) Marketing Assessment.--
            (1) Sugarcane.--Effective for marketings of raw 
        cane sugar during the 1996 through 2003 fiscal years, 
        the first processor of sugarcane shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to--
                    (A) in the case of marketings during fiscal 
                year 1996, 1.1 percent of the loan rate 
                established under subsection (a) per pound of 
                raw cane sugar, processed by the processor from 
                domestically produced sugarcane or sugarcane 
                molasses, that has been marketed (including the 
                transfer or delivery of the sugar to a refinery 
                for further processing or marketing); and
                    (B) in the case of marketings during each 
                of fiscal years 1997 through 2003, 1.375 
                percent of the loan rate established under 
                subsection (a) per pound of raw cane sugar, 
                processed by the processor from domestically 
                produced sugarcane or sugarcane molasses, that 
                has been marketed (including the transfer or 
                delivery of the sugar to a refinery for further 
                processing or marketing).
            (2) Sugar beets.--Effective for marketings of beet 
        sugar during the 1996 through 2003 fiscal years, the 
        first processor of sugar beets shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to--
                    (A) in the case of marketings during fiscal 
                year 1996, 1.1794 percent of the loan rate 
                established under subsection (a) per pound of 
                beet sugar, processed by the processor from 
                domestically produced sugar beets or sugar beet 
                molasses, that has been marketed; and
                    (B) in the case of marketings during each 
                of fiscal years 1997 through 2003, 1.47425 
                percent of the loan rate established under 
                subsection (a) per pound of beet sugar, 
                processed by the processor from domestically 
                produced sugar beets or sugar beet molasses, 
                that has been marketed.
            (3) Collection.--
                    (A) Timing.--A marketing assessment 
                required under this subsection shall be 
                collected on a monthly basis and shall be 
                remitted to the Commodity Credit Corporation 
                not later than 30 days after the end of each 
                month. Any cane sugar or beet sugar processed 
                during a fiscal year that has not been marketed 
                by September 30 of the year shall be subject to 
                assessment on that date. The sugar shall not be 
                subject to a second assessment at the time that 
                it is marketed.
                    (B) Manner.--Subject to subparagraph (A), 
                marketing assessments shall be collected under 
                this subsection in the manner prescribed by the 
                Secretary and shall be nonrefundable.
            (4) Penalties.--If any person fails to remit the 
        assessment required by this subsection or fails to 
        comply with such requirements for recordkeeping or 
        otherwise as are required by the Secretary to carry out 
        this subsection, the person shall be liable to the 
        Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of cane sugar or beet 
                sugar involved in the violation; by
                    (B) the loan rate for the applicable crop 
                of sugarcane or sugar beets.
            (5) Enforcement.--The Secretary may enforce this 
        subsection in a court of the United States.
    (g) Forfeiture Penalty.--
            (1) In general.--A penalty shall be assessed on the 
        forfeiture of any sugar pledged as collateral for a 
        nonrecourse loan under this section.
            (2) Cane sugar.--The penalty for cane sugar shall 
        be 1 cent per pound.
            (3) Beet sugar.--The penalty for beet sugar shall 
        bear the same relation to the penalty for cane sugar as 
        the marketing assessment for sugar beets bears to the 
        marketing assessment for sugarcane.
            (4) Effect of forfeiture.--Any payments owed 
        producers by a processor that forfeits any sugar 
        pledged as collateral for a nonrecourse loan shall be 
        reduced in proportion to the loan forfeiture penalty 
        incurred by the processor.
    (h) Information Reporting.--
            (1) Duty of processors and refiners to report.--A 
        sugarcane processor, cane sugar refiner, and sugar beet 
        processor shall furnish the Secretary, on a monthly 
        basis, such information as the Secretary may require to 
        administer sugar programs, including the quantity of 
        purchases of sugarcane, sugar beets, and sugar, and 
        production, importation, distribution, and stock levels 
        of sugar.
            (2) Penalty.--Any person willfully failing or 
        refusing to furnish the information, or furnishing 
        willfully any false information, shall be subject to a 
        civil penalty of not more than $10,000 for each such 
        violation.
            (3) Monthly reports.--Taking into consideration the 
        information received under paragraph (1), the Secretary 
        shall publish on a monthly basis composite data on 
        production, imports, distribution, and stock levels of 
        sugar.
    (i) Crops.--This section (other than subsection (f)) shall 
be effective only for the 1996 through 2002 crops of sugar 
beets and sugarcane.

                       Subtitle E--Administration

SEC. 161. ADMINISTRATION.

    (a) Use of Commodity Credit Corporation.--The Secretary 
shall carry out this title through the Commodity Credit 
Corporation.
    (b) Limitation on Expenditure of Commodity Credit 
Corporation Funds.--
            (1) General powers and responsibilities.--Section 4 
        of the Commodity Credit Corporation Charter Act (15 
        U.S.C. 714b) is amended--
                    (A) in the first sentence of subsection 
                (g), by inserting before the period the 
                following: ``, except that obligations under 
                all such contracts or agreements (other than 
                reimbursable agreements under section 11) for 
                equipment or services relating to automated 
                data processing, information technologies, or 
                related items (including telecommunications 
                equipment and computer hardware and software) 
                may not exceed $170,000,000 in fiscal year 1996 
                and not more than $275,000,000 in the 6-fiscal 
                year period beginning on October 1, 1996, 
                unless additional amounts for such contracts 
                and agreements are provided in advance in 
                appropriation Acts''; and
                    (B) in subsection (h), by striking ``shall 
                have power to acquire personal property 
                necessary to the conduct of its business but''.
            (2) Reimbursable agreements.--Section 11 of the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 
        714i) is amended by adding at the end the following: 
        ``After September 30, 1996, the total amount of all 
        allotments and fund transfers from the Corporation 
        under this section (including allotments and transfers 
        for automated data processing or information resource 
        management activities) for a fiscal year may not exceed 
        the total amount of the allotments and transfers made 
        under this section in fiscal year 1995.''.
            (3) Reporting requirements.--Section 13 of the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 
        714k) is amended by adding at the end the following: 
        ``In addition to the annual report, the Corporation 
        shall submit to Congress on a quarterly basis an 
        itemized report of all expenditures over $10,000 made 
        under section 5 or 11 during the period covered by the 
        report, including expenditures in the form of 
        allotments or fund transfers to other agencies and 
        departments of the Federal Government.''.
    (c) Determinations by Secretary.--A determination made by 
the Secretary under this title shall be final and conclusive.
    (d) Regulations.--Not later than 90 days after the date of 
enactment of this title, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as 
are necessary to implement this title. The issuance of the 
regulations shall be made without regard to--
            (1) the notice and comment provisions of section 
        553 of title 5, United States Code;
            (2) the Statement of Policy of the Secretary of 
        Agriculture effective July 24, 1971 (36 Fed. Reg. 
        13804) relating to notices of proposed rulemaking and 
        public participation in rulemaking; and
            (3) chapter 35 of title 44, United States Code 
        (commonly know as the ``Paperwork Reduction Act'').

SEC. 162. ADJUSTMENTS OF LOANS.

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

SEC. 163. COMMODITY CREDIT CORPORATION INTEREST RATE.

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

SEC. 164. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    (a) In General.--Except as provided in subsection (b), no 
producer shall be personally liable for any deficiency arising 
from the sale of the collateral securing any nonrecourse loan 
made under this title unless the loan was obtained through a 
fraudulent representation by the producer.
    (b) Limitations.--Subsection (a) shall not prevent the 
Commodity Credit Corporation or the Secretary from requiring a 
producer to assume liability for--
            (1) a deficiency in the grade, quality, or quantity 
        of a commodity stored on a farm or delivered by the 
        producer;
            (2) a failure to properly care for and preserve a 
        commodity; or
            (3) a failure or refusal to deliver a commodity in 
        accordance with a program established under this title.
    (c) Acquisition of Collateral.--In the case of a 
nonrecourse loan made under this title or the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714 et seq.), if the 
Commodity Credit Corporation acquires title to the unredeemed 
collateral, the Corporation shall be under no obligation to pay 
for any market value that the collateral may have in excess of 
the loan indebtedness.
    (d) Sugarcane and Sugar Beets.--A security interest 
obtained by the Commodity Credit Corporation as a result of the 
execution of a security agreement by the processor of sugarcane 
or sugar beets shall be superior to all statutory and common 
law liens on raw cane sugar and refined beet sugar in favor of 
the producers of sugarcane and sugar beets and all prior 
recorded and unrecorded liens on the crops of sugarcane and 
sugar beets from which the sugar was derived.

SEC. 165. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.

    (a) General Sales Authority.--The Commodity Credit 
Corporation may sell any commodity owned or controlled by the 
Corporation at any price that the Secretary determines will 
maximize returns to the Corporation.
    (b) Nonapplication of Sales Price Restrictions.--Subsection 
(a) shall not apply to--
            (1) a sale for a new or byproduct use;
            (2) a sale of peanuts or oilseeds for the 
        extraction of oil;
            (3) a sale for seed or feed if the sale will not 
        substantially impair any loan program;
            (4) a sale of a commodity that has substantially 
        deteriorated in quality or as to which there is a 
        danger of loss or waste through deterioration or 
        spoilage;
            (5) a sale for the purpose of establishing a claim 
        arising out of a contract or against a person who has 
        committed fraud, misrepresentation, or other wrongful 
        act with respect to the commodity;
            (6) a sale for export, as determined by the 
        Corporation; and
            (7) a sale for other than a primary use.
    (c) Presidential Disaster Areas.--
            (1) In general.--Notwithstanding subsection (a), on 
        such terms and conditions as the Secretary may consider 
        in the public interest, the Corporation may make 
        available any commodity or product owned or controlled 
        by the Corporation for use in relieving distress--
                    (A) in any area in the United States 
                (including the Virgin Islands) declared by the 
                President to be an acute distress area because 
                of unemployment or other economic cause, if the 
                President finds that the use will not displace 
                or interfere with normal marketing of 
                agricultural commodities; and
                    (B) in connection with any major disaster 
                determined by the President to warrant 
                assistance by the Federal Government under the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.).
            (2) Costs.--Except on a reimbursable basis, the 
        Corporation shall not bear any costs in connection with 
        making a commodity available under paragraph (1) beyond 
        the cost of the commodity to the Corporation incurred 
        in--
                    (A) the storage of the commodity; and
                    (B) the handling and transportation costs 
                in making delivery of the commodity to 
                designated agencies at 1 or more central 
                locations in each State or other area.
    (d) Efficient Operations.--Subsection (a) shall not apply 
to the sale of a commodity the disposition of which is 
desirable in the interest of the effective and efficient 
conduct of the operations of the Corporation because of the 
small quantity of the commodity involved, or because of the 
age, location, or questionable continued storability of the 
commodity.

             Subtitle F--Permanent Price Support Authority

SEC. 171. SUSPENSION AND REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Adjustment Act of 1938 shall not be 
        applicable to the 1996 through 2002 crops of loan 
        commodities, peanuts, and sugar and shall not be 
        applicable to milk during the period beginning on the 
        date of enactment of this title and ending on December 
        31, 2002:
                    (A) Parts II through V of subtitle B of 
                title III (7 U.S.C. 1326-1351).
                    (B) Subsections (a) through (j) of section 
                358 (7 U.S.C. 1358).
                    (C) Subsections (a) through (h) of section 
                358a (7 U.S.C. 1358a).
                    (D) Subsections (a), (b), (d), and (e) of 
                section 358d (7 U.S.C. 1359).
                    (E) Part VII of subtitle B of title III (7 
                U.S.C. 1359aa-1359jj).
                    (F) In the case of peanuts, part I of 
                subtitle C of title III (7 U.S.C. 1361-1368).
                    (G) In the case of upland cotton, section 
                377 (7 U.S.C. 1377).
                    (H) Subtitle D of title III (7 U.S.C. 
                1379a-1379j).
                    (I) Title IV (7 U.S.C. 1401-1407).
            (2) Reports and records.--Effective only for the 
        1996 through 2002 crops of peanuts, the first sentence 
        of section 373(a) of the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1373(a)) is amended by inserting before 
        ``all brokers and dealers in peanuts'' the following: 
        ``all producers engaged in the production of 
        peanuts,''.
    (b) Agricultural Act of 1949.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Act of 1949 shall not be applicable to the 
        1996 through 2002 crops of loan commodities, peanuts, 
        and sugar and shall not be applicable to milk during 
        the period beginning on the date of enactment of this 
        title and ending on December 31, 2002:
                    (A) Section 101 (7 U.S.C. 1441).
                    (B) Section 103(a) (7 U.S.C. 1444(a)).
                    (C) Section 105 (7 U.S.C. 1444b).
                    (D) Section 107 (7 U.S.C. 1445a).
                    (E) Section 110 (7 U.S.C. 1445e).
                    (F) Section 112 (7 U.S.C. 1445g).
                    (G) Section 115 (7 U.S.C. 1445k).
                    (H) Section 201 (7 U.S.C. 1446).
                    (I) Title III (7 U.S.C. 1447-1449).
                    (J) Title IV (7 U.S.C. 1421-1433d), other 
                than sections 404, 412, and 416 (7 U.S.C. 1424, 
                1429, and 1431).
                    (K) Title V (7 U.S.C. 1461-1469).
                    (L) Title VI (7 U.S.C. 1471-1471j).
            (2) Repeals.--The following provisions of the 
        Agricultural Act of
                    (A) Section 101B (7 U.S.C. 1441-2).
                    (B) Section 103B (7 U.S.C. 1444-2).
                    (C) Section 105B (7 U.S.C. 1444f).
                    (D) Section 107B (7 U.S.C. 1445-3a).
                    (E) Section 108B (7 U.S.C. 1445c-3).
                    (F) Section 113 (7 U.S.C. 1445h).
                    (G) Subsections (b) and (c) of section 114 
                (7 U.S.C. 1445j).
                    (H) Sections 205, 206, and 207 (7 U.S.C. 
                1446f, 1446g, and 1446h).
                    (I) Sections 406 and 427 (7 U.S.C. 1426 and 
                1433f).
            (3) Potential price support for rice.--Section 101 
        of the Agricultural Act of 1949 (7 U.S.C. 1441), as 
        suspended by paragraph (1), is amended by adding after 
        subsection (d) the following:
    ``(e) Rice.--The Secretary shall make available to 
producers of each crop of rice on a farm price support at a 
level that is not less than 50 percent, or more than 90 percent 
of the parity price for rice as the Secretary determines will 
not result in increasing stocks of rice to the Commodity Credit 
Corporation.''.
    (c) Suspension of Certain Quota Provisions.--The joint 
resolution entitled ``A joint resolution relating to corn and 
wheat marketing quotas under the Agricultural Adjustment Act of 
1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 
1340), shall not be applicable to the crops of wheat planted 
for harvest in the calendar years 1996 through 2002.

SEC. 172. EFFECT OF AMENDMENTS.

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

     Subtitle G--Commission on 21st Century Production Agriculture

SEC. 181. ESTABLISHMENT.

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

SEC. 182. COMPOSITION.

    (a) Membership and Appointment.--The Commission shall be 
composed of 11 members, appointed as follows:
            (1) Three members shall be appointed by the 
        President.
            (2) Four members shall be appointed by the Chairman 
        of the Committee on Agriculture of the House of 
        Representatives in consultation with the ranking 
        minority member of the Committee.
            (3) Four members shall be appointed by the Chairman 
        of the Committee on Agriculture, Nutrition, and 
        Forestry of the Senate in consultation with the ranking 
        minority member of the Committee.
    (b) Qualifications.--At least 1 of the members appointed 
under each of paragraphs (1), (2), and (3) of subsection (a) 
shall be an individual who is primarily involved in production 
agriculture. All other members of the Commission shall be 
appointed from among individuals having knowledge and 
experience in agricultural production, marketing, finance, or 
trade.
    (c) Term of Members; Vacancies.--A member of the Commission 
shall be appointed for the life of the Commission. A vacancy on 
the Commission shall not affect its powers, but shall be filled 
in the same manner as the original appointment was made.
    (d) Time for Appointment; First Meeting.--The members of 
the Commission shall be appointed not later than October 1, 
1997. The Commission shall convene its first meeting to carry 
out its duties under this subtitle 30 days after 6 members of 
the Commission have been appointed.
    (e) Chairperson.--The chairperson of the Commission shall 
be designated jointly by the Chairman of the Committee on 
Agriculture of the House of Representatives and the Chairman of 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate from among the members of the Commission.

SEC. 183. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION 
                    AGRICULTURE.

    (a) Initial Review.--The Commission shall conduct a 
comprehensive review of changes in the condition of production 
agriculture in the United States since the date of enactment of 
this title and the extent to which the changes are the result 
of this title and the amendments made by this title. The review 
shall include the following:
            (1) An assessment of the initial success of 
        production flexibility contracts in supporting the 
        economic viability of farming in the United States.
            (2) An assessment of economic risks to farms 
        delineated by size of farm operation (such as small, 
        medium, or large farms) and region of production.
            (3) An assessment of the food security situation in 
        the United States in the areas of trade, consumer 
        prices, international competitiveness of United States 
        production agriculture, food supplies, and humanitarian 
        relief.
            (4) An assessment of the changes in farmland values 
        and agricultural producer incomes since the date of 
        enactment of this title.
            (5) An assessment of the extent to which regulatory 
        relief for agricultural producers has been enacted and 
        implemented, including the application of cost/benefit 
        principles in the issuance of agricultural regulations.
            (6) An assessment of the extent to which tax relief 
        for agricultural producers has been enacted in the form 
        of capital gains tax reductions, estate tax exemptions, 
        and mechanisms to average tax loads over high- and low-
        income years.
            (7) An assessment of the effect of any Federal 
        Government interference in agricultural export markets, 
        such as the imposition of trade embargoes, and the 
        degree of implementation and success of international 
        trade agreements and United States export programs.
            (8) An assessment of the likely affect of the sale, 
        lease, or transfer of farm poundage quota for peanuts 
        across State lines.
    (b) Subsequent Review.--The Commission shall conduct a 
comprehensive review of the future of production agriculture in 
the United States and the appropriate role of the Federal 
Government in support of production agriculture. The review 
shall include the following:
            (1) An assessment of changes in the condition of 
        production agriculture in the United States since the 
        initial review conducted under subsection (a).
            (2) Identification of the appropriate future 
        relationship of the Federal Government with production 
        agriculture after 2002.
            (3) An assessment of the personnel and 
        infrastructure requirements of the Department of 
        Agriculture necessary to support the future 
        relationship of the Federal Government with production 
        agriculture.
            (4) An assessment of economic risks to farms 
        delineated by size of farm operation (such as small, 
        medium, or large farms) and region of production.
    (c) Recommendations.--In carrying out the subsequent review 
under subsection (b), the Commission shall develop specific 
recommendations for legislation to achieve the appropriate 
future relationship of the Federal Government with production 
agriculture identified under subsection (a)(2).

SEC. 184. REPORTS.

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

SEC. 185. POWERS.

    (a) Hearings.--The Commission may, for the purpose of 
carrying out this subtitle, conduct such hearings, sit and act 
at such times, take such testimony, and receive such evidence, 
as the Commission considers appropriate.
    (b) Assistance From Other Agencies.--The Commission may 
secure directly from any department or agency of the Federal 
Government such information as may be necessary for the 
Commission to carry out its duties under this subtitle. On the 
request of the chairperson of the Commission, the head of the 
department or agency shall, to the extent permitted by law, 
furnish such information to the Commission.
    (c) Mail.--The Commission may use the United States mails 
in the same manner and under the same conditions as the 
departments and agencies of the Federal Government.
    (d) Assistance From Secretary.--The Secretary shall provide 
to the Commission appropriate office space and such reasonable 
administrative and support services as the Commission may 
request.

SEC. 186. COMMISSION PROCEDURES.

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

SEC. 187. PERSONNEL MATTERS.

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

SEC. 188. TERMINATION OF COMMISSION.

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

             Subtitle H--Miscellaneous Commodity Provisions

SEC. 191. OPTIONS PILOT PROGRAM.

    (a) Pilot Programs Authorized.--Until December 31, 2002, 
the Secretary of Agriculture may conduct a pilot program for 1 
or more agricultural commodities supported under this title to 
ascertain whether futures and options contracts can provide 
producers with reasonable protection from the financial risks 
of fluctuations in price, yield, and income inherent in the 
production and marketing of the commodities. The pilot program 
shall be an alternative to other related programs of the 
Department of Agriculture.
    (b) Distribution of Pilot Program.--For each agricultural 
commodity included in the pilot program, the Secretary may 
operate the pilot program in not more than 100 counties, except 
that not more than 6 of the counties may be located in any 1 
State. The pilot program for a commodity shall not be operated 
in any county for more than 3 of the 1996 through 2002 calendar 
years.
    (c) Eligible Participants.--In operating the pilot program, 
the Secretary may enter into contract with a producer who--
            (1) is eligible for a production flexibility 
        contract, a marketing assistance loan, or other 
        assistance under this title;
            (2) volunteers to participate in the pilot program;
            (3) operates a farm located in a county selected 
        for the pilot program; and
            (4) meets such other eligibility requirements as 
        the Secretary may establish.
    (d) Notice to Producers.--The Secretary shall provide 
notice to each producer participating in the pilot program 
that--
            (1) the participation of the producer is voluntary; 
        and
            (2) neither the United States, the Commodity Credit 
        Corporation, the Federal Crop Insurance Corporation, 
        the Department of Agriculture, nor any other Federal 
        agency is authorized to guarantee that participants in 
        the pilot program will be better or worse off 
        financially as a result of participation in the pilot 
        program than the producer would have been if the 
        producer had not participated in the pilot program.
    (e) Contracts.--The Secretary shall set forth in each 
contract under the pilot program the terms and conditions for 
participation in the pilot program and the notice required by 
subsection (d).
    (f) Eligible Markets.--Trades for futures and options 
contracts under the pilot program shall be carried out on 
commodity futures and options markets designated as contract 
markets under the Commodity Exchange Act (7 U.S.C. 1 et seq.)
    (g) Recordkeeping.--A producer participating in the pilot 
program shall compile, maintain, and submit (or authorize the 
compilation, maintenance, and submission) of such documentation 
as the regulations governing the pilot program require.
    (h) Use of Commodity Credit Corporation.--The Secretary 
shall fund and operate the pilot program through the Commodity 
Credit Corporation. To the maximum extent practicable, the 
Secretary shall operate the pilot program in a budget neutral 
manner.
    (i) Conforming Repeal.--The Options Pilot Program Act of 
1990 (subtitle E of title XI of Public Law 101-624; 7 U.S.C. 
1421 note) is repealed.

SEC. 192. RISK MANAGEMENT EDUCATION.

    In consultation with the Commodity Futures Trading 
Commission, the Secretary shall provide such education in 
management of the financial risks inherent in the production 
and marketing of agricultural commodities as the Secretary 
considers appropriate. As part of such educational activities, 
the Secretary may develop and implement programs to facilitate 
the participation of agricultural producers in commodity 
futures trading programs, forward contracting options, and 
insurance protection programs by assisting and training 
producers in the usage of such programs. In implementing this 
authority, the Secretary may use existing research and 
extension authorities and resources of the Department of 
Agriculture.

SEC. 193. CROP INSURANCE.

    (a) Catastrophic Risk Protection.--
            (1) Single delivery.--Section 508(b)(4) of the 
        Federal Crop Insurance Act (7 U.S.C. 1508(b)(4)) is 
        amended by adding at the end the following:
                    ``(C) Delivery of coverage.--
                            ``(i) In general.--In full 
                        consultation with approved insurance 
                        providers, the Secretary may continue 
                        to offer catastrophic risk protection 
                        in a State (or a portion of a State) 
                        through local offices of the Department 
                        if the Secretary determines that there 
                        is an insufficient number of approved 
                        insurance providers operating in the 
                        State or portion of the State to 
                        adequately provide catastrophic risk 
                        protection coverage to producers.
                            ``(ii) Coverage by approved 
                        insurance providers.--To the extent 
                        that catastrophic risk protection 
                        coverage by approved insurance 
                        providers is sufficiently available in 
                        a State (or a portion of a State) as 
                        determined by the Secretary, only 
                        approved insurance providers may 
                        provide the coverage in the State or 
                        portion of the State.
                            ``(iii) Timing of determinations.--
                        Not later than 90 days after the date 
                        of enactment of this subparagraph, the 
                        Secretary shall announce the results of 
                        the determinations under clause (i) for 
                        policies for the 1997 crop year. For 
                        subsequent crop years, the Secretary 
                        shall make the announcement not later 
                        than April 30 of the year preceding the 
                        year in which the crop will be 
                        produced, or at such other times during 
                        the year as the Secretary finds 
                        practicable in consultation with 
                        affected crop insurance providers for 
                        those States (or portions of States) in 
                        which catastrophic coverage remains 
                        available through local offices of the 
                        Department.
                            ``(iv) Current policies.--This 
                        clause shall take effect beginning with 
                        the 1997 crop year. Subject to clause 
                        (ii) all catastrophic risk protection 
                        policies written by local offices of 
                        the Department shall be transferred to 
                        the approved insurance provider for 
                        performance of all sales, service, and 
                        loss adjustment functions. Any fees in 
                        connection with such policies that are 
                        not yet collected at the time of the 
                        transfer shall be payable to the 
                        approved insurance providers assuming 
                        the policies. The transfer process for 
                        policies for the 1997 crop year with 
                        sales closing dates before January 1, 
                        1997, shall begin at the time of the 
                        Secretary's announcement under clause 
                        (iii) and be completed by the sales 
                        closing date for the crop and county. 
                        The transfer process for all subsequent 
                        policies (including policies for the 
                        1998 and subsequent crop years) shall 
                        begin at a date that permits the 
                        process to be completed not later than 
                        45 days before the sales closing 
                        date.''.
            (2) Waiver of mandatory linkage.--Section 508(b)(7) 
        of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) 
        is amended by striking subparagraph (A) and inserting 
        the following:
                    ``(A) In general.--Effective for the 
                spring-planted 1996 and subsequent crops (and 
                fall-planted 1996 crops at the option of the 
                Secretary), to be eligible for any payment or 
                loan under the Agricultural Market Transition 
                Act, for the conservation reserve program, or 
                for any benefit described in section 371 of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2008f), a person shall--
                            ``(i) obtain at least the 
                        catastrophic level of insurance for 
                        each crop of economic significance in 
                        which the person has an interest; or
                            ``(ii) provide a written waiver to 
                        the Secretary that waives any 
                        eligibility for emergency crop loss 
                        assistance in connection with the 
                        crop.''.
            (3) Special rule for 1996.--
                    (A) Effective period.--This paragraph shall 
                apply only to the 1996 crop year.
                    (B) Availability.--During a period of not 
                less than 2 weeks, but not more than 4 weeks, 
                beginning on the date of enactment of this 
                title, the Secretary shall provide producers 
                with an opportunity to obtain catastrophic risk 
                protection insurance under section 508(b) of 
                the Federal Crop Insurance Act (7 U.S.C. 
                1508(b)) for a spring-planted crop, and limited 
                additional coverage for malting barley under 
                the Malting Barley Price and Quality 
                Endorsement. The Federal Crop Insurance 
                Corporation may attach such limitations and 
                restrictions on obtaining insurance during this 
                period as the Corporation considers necessary 
                to maintain the actuarial soundness of the crop 
                insurance program.
                    (C) Attachment.--Insurance coverage under 
                any policy obtained under this paragraph during 
                the extended sales period shall not attach 
                until 10 days after the application.
                    (D) Cancellation.--During the extended 
                period, a producer may cancel a catastrophic 
                risk protection policy if--
                            (i) the policy is a continuation of 
                        a policy that was obtained for a 
                        previous crop year; and
                            (ii) the cancellation request is 
                        made before the acreage reporting date 
                        for the policy for the 1996 crop year.
    (b) Crop Insurance Pilot Project.--
            (1) Coverage.--The Secretary of Agriculture shall 
        develop and administer a pilot project for crop 
        insurance coverage that indemnifies crop losses due to 
        a natural disaster such as insect infestation or 
        disease.
            (2) Actuarial soundness.--A pilot project under 
        this paragraph shall be actuarially sound, as 
        determined by the Secretary and administered at no net 
        cost.
            (3) Duration.--A pilot project under this paragraph 
        shall be of two years' duration.
    (c) Crop Insurance for Nursery Crops.--Section 508(a)(6) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended 
by adding at the end the following:
                    ``(D) Addition of nursery crops.--Not later 
                than 2 years after the date of enactment of 
                this subparagraph, the Corporation shall 
                conduct a study and limited pilot program on 
                the feasibility of insuring nursery crops.''.
    (d) Marketing Windows.--Section 508(j) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the 
end the following:
            ``(4) Marketing windows.--The Corporation shall 
        consider marketing windows in determining whether it is 
        feasible to require planting during a crop year.''.
    (e) Funding.--
            (1) Mandatory expenses.--Section 516(a)(2) of the 
        Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is 
        amended--
                    (A) by inserting ``and'' at the end of 
                subparagraph (A);
                    (B) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (C) by striking subparagraph (C).
            (2) Funding of sales commissions.--Section 516(b) 
        of the Federal Crop Insurance Act (7 U.S.C. 1516(b)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(A) In general'' 
                        and all that follows through 
                        ``subparagraph (B), in'' and inserting 
                        ``In''; and
                            (ii) by striking subparagraph (B); 
                        and
                    (B) in paragraph (2)(B), by striking 
                ``subject to paragraph (1)(B),''.
            (3) Other expenses.--Section 516(b)(2)(A) of the 
        Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is 
        amended by striking ``, noninsured assistance 
        benefits,''.
    (f) Limitation on Multiple Benefits for Same Loss.--Section 
508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
amended by adding at the end the following:
    ``(n) Limitation on Multiple Benefits for Same Loss.--If a 
producer who is eligible to receive benefits under catastrophic 
risk protection under subsection (b) is also eligible to 
receive assistance for the same loss under any other program 
administered by the Secretary, the producer shall be required 
to elect whether to receive benefits under this title or under 
the other program, but not both. A producer who purchases 
additional coverage under subsection (c) may also receive 
assistance for the same loss under other programs administered 
by the Secretary, except that the amount received for the loss 
under the additional coverage together with the amount received 
under the other programs may not exceed the amount of the 
actual loss of the producer.''.

SEC. 194. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.

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

``SEC. 226A. OFFICE OF RISK MANAGEMENT.

    ``(a) Establishment.--Subject to subsection (e), the 
Secretary shall establish and maintain in the Department an 
independent Office of Risk Management.
    ``(b) Functions of the Office of Risk Management.--The 
Office of Risk Management shall have jurisdiction over the 
following functions:
            ``(1) Supervision of the Federal Crop Insurance 
        Corporation.
            ``(2) Administration and oversight of all aspects, 
        including delivery through local offices of the 
        Department, of all programs authorized under the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
            ``(3) Any pilot or other programs involving revenue 
        insurance, risk management savings accounts, or the use 
        of the futures market to manage risk and support farm 
        income that may be established under the Federal Crop 
        Insurance Act or other law.
            ``(4) Such other functions as the Secretary 
        considers appropriate.
    ``(c) Administrator.--
            ``(1) Appointment.--The Office of Risk Management 
        shall be headed by an Administrator who shall be 
        appointed by the Secretary.
            ``(2) Manager.--The Administrator of the Office of 
        Risk Management shall also serve as Manager of the 
        Federal Crop Insurance Corporation.
    ``(d) Resources.--
            ``(1) Functional coordination.--Certain functions 
        of the Office of Risk Management, such as human 
        resources, public affairs, and legislative affairs, may 
        be provided by a consolidation of such functions under 
        the Under Secretary of Agriculture for Farm and Foreign 
        Agricultural Services.
            ``(2) Minimum provisions.--Notwithstanding 
        paragraph (1) or any other provision of law or order of 
        the Secretary, the Secretary shall provide the Office 
        of Risk Management with human and capital resources 
        sufficient for the Office to carry out its functions in 
        a timely and efficient manner.''.
    (b) Fiscal Year 1996 Funding.--From funds appropriated for 
the salaries and expenses of the Consolidated Farm Service 
Agency in the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1996 
(Public Law 104-37), the Secretary of Agriculture may use such 
sums as necessary for the salaries and expenses of the Office 
of Risk Management established under subsection (a).
    (c) Conforming Amendment.--Section 226(b) of the Act (7 
U.S.C. 6932(b)) is amended by striking paragraph (2).

SEC. 195. REVENUE INSURANCE.

    Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 
1508(h)) is amended by adding at the end the following:
            ``(9) Revenue insurance pilot program.--
                    ``(A) In general.--Not later than December 
                31, 1996, the Secretary shall carry out a pilot 
                program in a limited number of counties, as 
                determined by the Secretary, for crop years 
                1997, 1998, 1999, and 2000, under which a 
                producer of wheat, feed grains, soybeans, or 
                such other commodity as the Secretary considers 
                appropriate may elect to receive insurance 
                against loss of revenue, as determined by the 
                Secretary.
                    ``(B) Administration.--Revenue insurance 
                under this paragraph shall--
                            ``(i) be offered through 
                        reinsurance arrangements with private 
                        insurance companies;
                            ``(ii) offer at least a minimum 
                        level of coverage that is an 
                        alternative to catastrophic crop 
                        insurance;
                            ``(iii) be actuarially sound; and
                            ``(iv) require the payment of 
                        premiums and administrative fees by an 
                        insured producer.''.

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

    (a) Operation and Administration of Program.--
            (1) In general.--In the case of an eligible crop 
        described in paragraph (2), the Secretary of 
        Agriculture shall operate a noninsured crop disaster 
        assistance program to provide coverage equivalent to 
        the catastrophic risk protection otherwise available 
        under section 508(b) of the Federal Crop Insurance Act 
        (7 U.S.C. 1508(b)). The Secretary shall carry out this 
        section through the Consolidated Farm Service Agency 
        (in this section referred to as the ``Agency'').
            (2) Eligible crops.--
                    (A) In general.--In this section, the term 
                ``eligible crop'' means each commercial crop or 
                other agricultural commodity (except 
                livestock)--
                            (i) for which catastrophic risk 
                        protection under section 508(b) of the 
                        Federal Crop Insurance Act (7 U.S.C. 
                        1508(b)) is not available; and
                            (ii) that is produced for food or 
                        fiber.
                    (B) Crops specifically included.--The term 
                ``eligible crop'' shall include floricultural, 
                ornamental nursery, and Christmas tree crops, 
                turfgrass sod, seed crops, aquaculture 
                (including ornamental fish), and industrial 
                crops.
            (3) Cause of loss.--To qualify for assistance under 
        this section, the losses of the noninsured commodity 
        shall be due to drought, flood, or other natural 
        disaster, as determined by the Secretary.
    (b) Application for Noninsured Crop Disaster Assistance.--
            (1) Timely application.--To be eligible for 
        assistance under this section, a producer shall submit 
        an application for noninsured crop disaster assistance 
        at a local office of the Department. The application 
        shall be in such form, contain such information, and be 
        submitted at such time as the Secretary may require.
            (2) Records.--A producer shall provide records, as 
        required by the Secretary, of crop acreage, acreage 
        yields, and production.
            (3) Acreage reports.--A producer shall provide 
        reports on acreage planted or prevented from being 
        planted, as required by the Secretary, by the 
        designated acreage reporting date for the crop and 
        location as established by the Secretary.
    (c) Loss Requirements.--
            (1) Required area loss.--A producer of an eligible 
        crop shall not receive noninsured crop disaster 
        assistance unless the average yield for that crop, or 
        an equivalent measure in the event yield data are not 
        available, in an area falls below 65 percent of the 
        expected area yield, as established by the Secretary.
            (2) Prevented planting.--Subject to paragraph (1), 
        the Secretary shall make a prevented planting 
        noninsured crop disaster assistance payment if the 
        producer is prevented from planting more than 35 
        percent of the acreage intended for the eligible crop 
        because of drought, flood, or other natural disaster, 
        as determined by the Secretary.
            (3) Reduced yields.--Subject to paragraph (1), the 
        Secretary shall make a reduced yield noninsured crop 
        disaster assistance payment to a producer if the total 
        quantity of the eligible crop that the producer is able 
        to harvest on any farm is, because of drought, flood, 
        or other natural disaster as determined by the 
        Secretary, less than 50 percent of the expected 
        individual yield for the crop, as determined by the 
        Secretary, factored for the interest of the producer 
        for the crop.
    (d) Payment.--The Secretary shall make available to a 
producer eligible for noninsured assistance under this section 
a payment computed by multiplying--
            (1) the quantity that is less than 50 percent of 
        the established yield for the crop; by
            (2)(A) in the case of each of the 1996 through 1998 
        crop years, 60 percent of the average market price for 
        the crop (or any comparable coverage determined by the 
        Secretary); or
            (B) in the case of each of the 1999 and subsequent 
        crop years, 55 percent of the average market price for 
        the crop (or any comparable coverage determined by the 
        Secretary); by
            (3) a payment rate for the type of crop (as 
        determined by the Secretary) that--
                    (A) in the case of a crop that is produced 
                with a significant and variable harvesting 
                expense, reflects the decreasing cost incurred 
                in the production cycle for the crop that is--
                            (i) harvested;
                            (ii) planted but not harvested; and
                            (iii) prevented from being planted 
                        because of drought, flood, or other 
                        natural disaster (as determined by the 
                        Secretary); and
                    (B) in the case of a crop that is not 
                produced with a significant and variable 
                harvesting expense, is determined by the 
                Secretary.
    (e) Yield Determinations.--
            (1) Establishment.--The Secretary shall establish 
        farm yields for purposes of providing noninsured crop 
        disaster assistance under this section.
            (2) Actual production history.--The Secretary shall 
        determine yield coverage using the actual production 
        history of the producer over a period of not less than 
        the 4 previous consecutive crop years and not more than 
        10 consecutive crop years. Subject to paragraph (3), 
        the yield for the year in which noninsured crop 
        disaster assistance is sought shall be equal to the 
        average of the actual production history of the 
        producer during the period considered.
            (3) Assignment of yield.--If a producer does not 
        submit adequate documentation of production history to 
        determine a crop yield under paragraph (2), the 
        Secretary shall assign to the producer a yield equal to 
        not less than 65 percent of the transitional yield of 
        the producer (adjusted to reflect actual production 
        reflected in the records acceptable to the Secretary 
        for continuous years), as specified in regulations 
        issued by the Secretary based on production history 
        requirements.
            (4) Prohibition on assigned yields in certain 
        counties.--
                    (A) In general.--
                            (i) Documentation.--If sufficient 
                        data are available to demonstrate that 
                        the acreage of a crop in a county for 
                        the crop year has increased by more 
                        than 100 percent over any year in the 
                        preceding 7 crop years or, if data are 
                        not available, if the acreage of the 
                        crop in the county has increased 
                        significantly from the previous crop 
                        years, a producer must provide such 
                        detailed documentation of production 
                        costs, acres planted, and yield for the 
                        crop year for which benefits are being 
                        claimed as is required by the 
                        Secretary. If the Secretary determines 
                        that the documentation provided is not 
                        sufficient, the Secretary may require 
                        documenting proof that the crop, had 
                        the crop been harvested, could have 
                        been marketed at a reasonable price.
                            (ii) Prohibition.--Except as 
                        provided in subparagraph (B), a 
                        producer who produces a crop on a farm 
                        located in a county described in clause 
                        (i) may not obtain an assigned yield.
                    (B) Exception.--A crop or a producer shall 
                not be subject to this subsection if--
                            (i) the planted acreage of the 
                        producer for the crop has been 
                        inspected by a third party acceptable 
                        to the Secretary; or
                            (ii)(I) the County Executive 
                        Director and the State Executive 
                        Director recommend an exemption from 
                        the requirement to the Administrator of 
                        the Agency; and
                            (II) the Administrator approves the 
                        recommendation.
            (5) Limitation on receipt of subsequent assigned 
        yield.--A producer who receives an assigned yield for 
        the current year of a natural disaster because required 
        production records were not submitted to the local 
        office of the Department shall not be eligible for an 
        assigned yield for the year of the next natural 
        disaster unless the required production records of the 
        previous 1 or more years (as applicable) are provided 
        to the local office.
            (6) Yield variations due to different farming 
        practices.--The Secretary shall ensure that noninsured 
        crop disaster assistance accurately reflects 
        significant yield variations due to different farming 
        practices, such as between irrigated and nonirrigated 
        acreage.
    (f) Contract Payments.--A producer who has received a 
guaranteed payment for production, as opposed to delivery, of a 
crop pursuant to a contract shall have the production of the 
producer adjusted upward by the amount of the production equal 
to the amount of the contract payment received.
    (g) Use of Commodity Credit Corporation.--The Secretary may 
use the funds of the Commodity Credit Corporation to carry out 
this section.
    (h) Exclusions.--Noninsured crop disaster assistance under 
this section shall not cover losses due to--
            (1) the neglect or malfeasance of the producer;
            (2) the failure of the producer to reseed to the 
        same crop in those areas and under such circumstances 
        where it is customary to reseed; or
            (3) the failure of the producer to follow good 
        farming practices, as determined by the Secretary.
    (i) Payment and Income Limitations.--
            (1) Definitions.--In this subsection:
                    (A) Person.--The term ``person'' has the 
                meaning provided the term in regulations issued 
                by the Secretary. The regulations shall 
                conform, to the extent practicable, to the 
                regulations defining the term ``person'' issued 
                under section 1001 of the Food Security Act of 
                1985 (7 U.S.C. 1308).
                    (B) Qualifying gross revenues.--The term 
                ``qualifying gross revenues'' means--
                            (i) if a majority of the gross 
                        revenue of the person is received from 
                        farming, ranching, and forestry 
                        operations, the gross revenue from the 
                        farming, ranching, and forestry 
                        operations of the person; and
                            (ii) if less than a majority of the 
                        gross revenue of the person is received 
                        from farming, ranching, and forestry 
                        operations, the gross revenue of the 
                        person from all sources.
            (2) Payment limitation.--The total amount of 
        payments that a person shall be entitled to receive 
        annually under this section may not exceed $100,000.
            (3) Limitation on multiple benefits for same 
        loss.--If a producer who is eligible to receive 
        benefits under this section is also eligible to receive 
        assistance for the same loss under any other program 
        administered by the Secretary, the producer shall be 
        required to elect whether to receive benefits under 
        this section or under the other program, but not both.
            (4) Income limitation.--A person who has qualifying 
        gross revenues in excess of the amount specified in 
        section 2266(a) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 1421 note) (as in 
        effect on November 28, 1990) during the taxable year 
        (as determined by the Secretary) shall not be eligible 
        to receive any noninsured assistance payment under this 
        section.
            (5) Regulations.--The Secretary shall issue 
        regulations prescribing such rules as the Secretary 
        determines necessary to ensure a fair and equitable 
        application of section 1001 of the Food Security Act of 
        1985 (7 U.S.C. 1308), the general payment limitation 
        regulations of the Secretary, and the limitations 
        established under this subsection.
    (j) Conforming Repeal.--Section 519 of the Federal Crop 
Insurance Act (7 U.S.C. 1519) is repealed.

                      TITLE II--AGRICULTURAL TRADE

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

SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

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

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

    ``(a) Policy.--In light of the Uruguay Round Agreement on 
Agriculture and the Ministerial Decision on Measures Concerning 
the Possible Negative Effects of the Reform Program on Least-
Developed and Net-Food Importing Developing Countries, the 
United States reaffirms the commitment of the United States to 
providing food aid to developing countries.
    ``(b) Sense of Congress.--It is the sense of Congress 
that--
            ``(1) the President should initiate consultations 
        with other donor nations to consider appropriate levels 
        of food aid commitments to meet the legitimate needs of 
        developing countries; and
            ``(2) the United States should increase its 
        contribution of bona fide food assistance to developing 
        countries consistent with the Agreement on 
        Agriculture.''.
    (b) Conforming Amendment.--Section 411 of the Uruguay Round 
Agreements Act is amended by striking subsection (e) (19 U.S.C. 
3611).

SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

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

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

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

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

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

SEC. 204. TERMS AND CONDITIONS OF SALES.

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

SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

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

SEC. 206. VALUE-ADDED FOODS.

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

SEC. 207. ELIGIBLE ORGANIZATIONS.

    (a) In General.--Section 202 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1722) is 
amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Nonemergency Assistance.--
            ``(1) In general.--The Administrator may provide 
        agricultural commodities for nonemergency assistance 
        under this title through eligible organizations (as 
        described in subsection (d)) that have entered into an 
        agreement with the Administrator to use the commodities 
        in accordance with this title.
            ``(2) Limitation.--The Administrator may not deny a 
        request for funds submitted under this subsection 
        because the program for which the funds are requested--
                    ``(A) would be carried out by the eligible 
                organization in a foreign country in which the 
                Agency for International Development does not 
                have a mission, office, or other presence; or
                    ``(B) is not part of a development plan for 
                the country prepared by the Agency.''; and
            (2) in subsection (e)--
                    (A) in the subsection heading, by striking 
                ``Private Voluntary Organizations and 
                Cooperatives'' and inserting ``Eligible 
                Organizations'';
                    (B) in paragraph (1)--
                            (i) by striking ``$13,500,000'' and 
                        inserting ``$28,000,000''; and
                            (ii) by striking ``private 
                        voluntary organizations and 
                        cooperatives to assist such 
                        organizations and cooperatives'' and 
                        inserting ``eligible organizations 
                        described in subsection (d), to assist 
                        the organizations'';
                    (C) by striking paragraph (2) and inserting 
                the following:
            ``(2) Request for funds.--To receive funds made 
        available under paragraph (1), an eligible organization 
        described in subsection (d) shall submit a request for 
        the funds that is subject to approval by the 
        Administrator.''; and
                    (D) in paragraph (3), by striking ``a 
                private voluntary organization or cooperative, 
                the Administrator may provide assistance to 
                that organization or cooperative'' and 
                inserting ``an eligible organization, the 
                Administrator may provide assistance to the 
                eligible organization''.
    (b) Conforming Amendments.--Section 207 of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) 
is amended--
            (1) in subsection (a)(1), by striking ``a private 
        voluntary organization or cooperative'' each place it 
        appears and inserting ``an eligible organization''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``private 
                voluntary organizations and cooperatives'' and 
                inserting ``eligible organizations''; and
                    (B) in paragraph (2), by striking 
                ``organizations, cooperatives,'' and inserting 
                ``eligible organizations''.

SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

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

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

    Section 204 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1724) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``amount 
                that'' and all that follows through the period 
                at the end and inserting ``amount that for each 
                of fiscal years 1996 through 2002 is not less 
                than 2,025,000 metric tons.'';
                    (B) in paragraph (2), by striking ``amount 
                that'' and all that follows through the period 
                at the end and inserting ``amount that for each 
                of fiscal years 1996 through 2002 is not less 
                than 1,550,000 metric tons.''; and
                    (C) in paragraph (3), by adding at the end 
                the following: ``No waiver shall be made before 
                the beginning of the applicable fiscal year.''; 
                and
            (2) in subsection (b)(1), by inserting before the 
        period at the end the following: ``and that not less 
        than 50 percent of the quantity of the bagged 
        commodities that are whole grain commodities be bagged 
        in the United States''.

SEC. 210. FOOD AID CONSULTATIVE GROUP.

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

SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.

    (a) In General.--Section 306(b) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is 
amended--
            (1) in the subsection heading, by striking 
        ``Indigenous Non-Governmental'' and inserting 
        ``Nongovernmental''; and
            (2) by striking ``utilization of indigenous'' and 
        inserting ``utilization of''.
    (b) Conforming Amendment.--Section 402 of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1732) is 
amended by striking paragraph (6) and inserting the following:
            ``(6) Nongovernmental organization.--The term 
        `nongovernmental organization' means an organization 
        that works at the local level to solve development 
        problems in a foreign country in which the organization 
        is located, except that the term does not include an 
        organization that is primarily an agency or 
        instrumentality of the government of the foreign 
        country.''.

SEC. 212. COMMODITY DETERMINATIONS.

    Section 401 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1731) is amended--
            (1) by striking subsections (a) through (d) and 
        inserting the following:
    ``(a) Availability of Commodities.--No agricultural 
commodity shall be available for disposition under this Act if 
the Secretary determines that the disposition would reduce the 
domestic supply of the commodity below the supply needed to 
meet domestic requirements and provide adequate carryover (as 
determined by the Secretary), unless the Secretary determines 
that some part of the supply should be used to carry out urgent 
humanitarian purposes under this Act.'';
            (2) by redesignating subsections (e) and (f) as 
        subsections (b) and (c), respectively; and
            (3) in subsection (c) (as so redesignated), by 
        striking ``(e)(1)'' and inserting ``(b)(1)''.

SEC. 213. GENERAL PROVISIONS.

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

SEC. 214. AGREEMENTS.

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

SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

    Section 406 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736) is amended--
            (1) in subsection (a), by striking ``shall'' and 
        inserting ``may'';
            (2) in subsection (b)--
                    (A) by striking ``this Act'' and inserting 
                ``titles II and III''; and
                    (B) by striking paragraph (4) and inserting 
                the following:
            ``(4) the vessel freight charges from United States 
        ports or designated Canadian transshipment ports, as 
        determined by the Secretary, to designated ports of 
        entry abroad;''; and
            (3) by striking subsection (d).

SEC. 216. ADMINISTRATIVE PROVISIONS.

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

SEC. 217. EXPIRATION DATE.

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

SEC. 218. REGULATIONS.

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

SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

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

SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736f) is amended--
            (1) by striking subsections (b) and (c) and 
        inserting the following:
    ``(b) Transfer of Funds.--
            ``(1) In general.--Except as provided in paragraph 
        (2) and notwithstanding any other provision of law, the 
        President may direct that up to 15 percent of the funds 
        available for any fiscal year for carrying out any 
        title of this Act be used to carry out any other title 
        of this Act.
            ``(2) Title iii funds.--The President may direct 
        that up to 50 percent of the funds available for any 
        fiscal year for carrying out title III be used to carry 
        out title II.''; and
            (2) by redesignating subsections (d) and (e) as 
        subsections (c) and (d), respectively.

SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

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

SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

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

``SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    ``(a) In General.--Subject to the availability of practical 
technology and to cost effectiveness, not later than September 
30, 1997, the Secretary, in consultation with the 
Administrator, shall establish a micronutrient fortification 
pilot program under this Act. The purpose of the program shall 
be to--
            ``(1) assist developing countries in correcting 
        micronutrient dietary deficiencies among segments of 
        the populations of the countries; and
            ``(2) encourage the development of technologies for 
        the fortification of whole grains and other commodities 
        that are readily transferable to developing countries.
    ``(b) Selection of Participating Countries.--From among the 
countries eligible for assistance under this Act, the Secretary 
may select not more than 5 developing countries to participate 
in the pilot program.
    ``(c) Fortification.--Under the pilot program, whole grains 
and other commodities made available to a developing country 
selected to participate in the pilot program may be fortified 
with 1 or more micronutrients (including vitamin A, iron, and 
iodine) with respect to which a substantial portion of the 
population in the country is deficient. The commodity may be 
fortified in the United States or in the developing country.
    ``(d) Termination of Authority.--The authority to carry out 
the pilot program established under this section shall 
terminate on September 30, 2002.''.

SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

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

``SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

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

SEC. 224. FARMER-TO-FARMER PROGRAM.

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

SEC. 225. FOOD SECURITY COMMODITY RESERVE.

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

              ``TITLE III--FOOD SECURITY COMMODITY RESERVE

``SEC. 301. SHORT TITLE.

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

``SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

    ``(a) In General.--To provide for a reserve solely to meet 
emergency humanitarian food needs in developing countries, the 
Secretary of Agriculture (referred to in this title as the 
`Secretary') shall establish a reserve stock of wheat, rice, 
corn, or sorghum, or any combination of the commodities, 
totalling not more than 4,000,000 metric tons for use as 
described in subsection (c).
    ``(b) Commodities in Reserve.--
            ``(1) In general.--The reserve established under 
        this section shall consist of--
                    ``(A) wheat in the reserve established 
                under the Food Security Wheat Reserve Act of 
                1980 as of the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 1996;
                    ``(B) wheat, rice, corn, and sorghum 
                (referred to in this section as `eligible 
                commodities') acquired in accordance with 
                paragraph (2) to replenish eligible commodities 
                released from the reserve, including wheat to 
                replenish wheat released from the reserve 
                established under the Food Security Wheat 
                Reserve Act of 1980 but not replenished as of 
                the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 1996; 
                and
                    ``(C) such rice, corn, and sorghum as the 
                Secretary may, at such time and in such manner 
                as the Secretary determines appropriate, 
                acquire as a result of exchanging an equivalent 
                value of wheat in the reserve established under 
                this section.
            ``(2) Replenishment of reserve.--
                    ``(A) In general.--Subject to subsection 
                (h), commodities of equivalent value to 
                eligible commodities in the reserve established 
                under this section may be acquired--
                            ``(i) through purchases--
                                    ``(I) from producers; or
                                    ``(II) in the market, if 
                                the Secretary determines that 
                                the purchases will not unduly 
                                disrupt the market; or
                            ``(ii) by designation by the 
                        Secretary of stocks of eligible 
                        commodities of the Commodity Credit 
                        Corporation.
                    ``(B) Funds.--Any use of funds to acquire 
                eligible commodities through purchases from 
                producers or in the market to replenish the 
                reserve must be authorized in an appropriations 
                Act.
    ``(c) Release of Eligible Commodities.--
            ``(1) Emergency assistance.--
                    ``(A) In general.--Notwithstanding 
                paragraph (2), to meet unanticipated need, the 
                Secretary may release eligible commodities in 
                any fiscal year, without regard to the 
                availability of domestic supply of the 
                commodities, to provide emergency assistance to 
                developing countries under title II of the 
                Agricultural Trade Development and Assistance 
                Act of 1954 (7 U.S.C. 1721 et seq.).
                    ``(B) Release for emergency assistance.--If 
                the eligible commodities needed to meet 
                unanticipated need cannot be made available in 
                a timely manner under normal means for 
                obtaining eligible commodities for food 
                assistance because of unanticipated need for 
                emergency assistance as provided under section 
                202(a) of the Agricultural Trade Development 
                and Assistance Act of 1954 (7 U.S.C. 1722(a)), 
                the Secretary may in any fiscal year release 
                from the reserve--
                            ``(i) up to 500,000 metric tons of 
                        wheat or the equivalent value of 
                        eligible commodities other than wheat; 
                        and
                            ``(ii) up to 500,000 metric tons of 
                        any eligible commodities under this 
                        paragraph that could have been released 
                        but were not released in prior fiscal 
                        years.
                    ``(C) Waiver of minimum tonnage 
                requirements.--Nothing in this paragraph shall 
                require a waiver under section 204(a)(3) of the 
                Agricultural Trade Development and Assistance 
                Act of 1954 (7 U.S.C. 1724(a)(3)) as a 
                prerequisite for the release of eligible 
                commodities under this paragraph.
            ``(2) Emergency food assistance.--Notwithstanding 
        any other provision of law, eligible commodities 
        designated or acquired for the reserve established 
        under this section may be released by the Secretary to 
        provide, on a donation or sale basis, emergency food 
        assistance to developing countries at such time as the 
        domestic supply of the eligible commodities is so 
        limited that quantities of the eligible commodities 
        cannot be made available for disposition under the 
        Agricultural Trade Development and Assistance Act of 
        1954 (7 U.S.C. 1691 et seq.) (other than disposition 
        for urgent humanitarian purposes under section 401 of 
        the Act (7 U.S.C. 1731)).
            ``(3) Processing of eligible commodities.--Eligible 
        commodities that are released from the reserve 
        established under this section may be processed in the 
        United States and shipped to a developing country when 
        conditions in the recipient country require processing.
            ``(4) Exchange.--The Secretary may exchange an 
        eligible commodity for another United States commodity 
        of equal value, including powdered milk, pulses, and 
        vegetable oil.
            ``(5) Use of normal commercial practices.--To the 
        maximum extent practicable consistent with the 
        fulfillment of the purposes of this section and the 
        effective and efficient administration of this section, 
        the Secretary shall use the usual and customary 
        channels, facilities, arrangements, and practices of 
        trade and commerce to carry out this subsection.
    ``(d) Management of Eligible Commodities.--The Secretary 
shall provide--
            ``(1) for the management of eligible commodities in 
        the reserve established under this section as to 
        location and quality of eligible commodities needed to 
        meet emergency situations; and
            ``(2) for the periodic rotation or replacement of 
        stocks of eligible commodities in the reserve to avoid 
        spoilage and deterioration of the commodities.
    ``(e) Treatment of Reserve Under Other Law.--Eligible 
commodities in the reserve established under this section shall 
not be--
            ``(1) considered a part of the total domestic 
        supply (including carryover) for the purpose of 
        subsection (c) or for the purpose of administering the 
        Agricultural Trade Development and Assistance Act of 
        1954 (7 U.S.C. 1691 et seq.); and
            ``(2) subject to any quantitative limitation on 
        exports that may be imposed under section 7 of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2406).
    ``(f) Use of Commodity Credit Corporation.--
            ``(1) In general.--Subject to the limitations 
        provided in this section, the funds, facilities, and 
        authorities of the Commodity Credit Corporation shall 
        be used by the Secretary in carrying out this section, 
        except that any restriction applicable to the 
        acquisition, storage, or disposition of eligible 
        commodities owned or controlled by the Commodity Credit 
        Corporation shall not apply.
            ``(2) Reimbursement.--
                    ``(A) In general.--The Commodity Credit 
                Corporation shall be reimbursed for the release 
                of eligible commodities from funds made 
                available to carry out the Agricultural Trade 
                Development and Assistance Act of 1954 (7 
                U.S.C. 1691 et seq.).
                    ``(B) Basis for reimbursement.--The 
                reimbursement shall be made on the basis of the 
                lesser of--
                            ``(i) the actual costs incurred by 
                        the Commodity Credit Corporation with 
                        respect to the eligible commodity; or
                            ``(ii) the export market price of 
                        the eligible commodity (as determined 
                        by the Secretary) as of the time the 
                        eligible commodity is released from the 
                        reserve.
                    ``(C) Source of funds.--The reimbursement 
                may be made from funds appropriated for 
                subsequent fiscal years.
    ``(g) Finality of Determination.--Any determination by the 
Secretary under this section shall be final.
    ``(h) Termination of Authority.--
            ``(1) In general.--The authority to replenish 
        stocks of eligible commodities to maintain the reserve 
        established under this section shall terminate on 
        September 30, 2002.
            ``(2) Disposal of eligible commodities.--Eligible 
        commodities remaining in the reserve after September 
        30, 2002, shall be disposed of by release for use in 
        providing for emergency humanitarian food needs in 
        developing countries as provided in this section.''.
    (b) Conforming Amendment.--Section 208(d) of the 
Agricultural Trade Suspension Adjustment Act of 1980 (7 U.S.C. 
4001(d)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Applicability of certain provisions.--
        Subsections (c), (d), (e), and (f)(2) of section 302 of 
        the Food Security Commodity Reserve Act of 1996 shall 
        apply to commodities in any reserve established under 
        paragraph (1), except that the references to `eligible 
        commodities' in the subsections shall be deemed to be 
        references to `agricultural commodities'.''.

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

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

SEC. 227. FOOD FOR PROGRESS PROGRAM.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1)'' and 
                        inserting ``(b)''; and
                            (ii) in the first sentence, by 
                        inserting ``intergovernmental 
                        organizations,'' after 
                        ``cooperatives,''; and
                    (B) by striking paragraph (2);
            (2) in subsection (e)(4), by striking ``203'' and 
        inserting ``406'';
            (3) in subsection (f)--
                    (A) in paragraph (1)(B), by striking ``in 
                the case of the independent states of the 
                former Soviet Union,'';
                    (B) by striking paragraph (2);
                    (C) in paragraph (4), by inserting ``for 
                each of fiscal years 1996 through 2002'' after 
                ``may be used''; and
                    (D) by redesignating paragraphs (3) through 
                (5) as paragraphs (2) through (4), 
                respectively;
            (4) in subsection (g), by striking ``1995'' and 
        inserting ``2002'';
            (5) in subsection (j), by striking ``shall'' and 
        inserting ``may'';
            (6) in subsection (k), by striking ``1995'' and 
        inserting ``2002'';
            (7) in subsection (l)(1)--
                    (A) by striking ``1991 through 1995'' and 
                inserting ``1996 through 2002''; and
                    (B) by inserting ``, and to provide 
                technical assistance for monetization 
                programs,'' after ``monitoring of food 
                assistance programs''; and
            (8) in subsection (m)--
                    (A) by striking ``with respect to the 
                independent states of the former Soviet 
                Union'';
                    (B) by striking ``private voluntary 
                organizations and cooperatives'' each place it 
                appears and inserting ``agricultural trade 
                organizations, intergovernmental organizations, 
                private voluntary organizations, and 
                cooperatives''; and
                    (C) in paragraph (2), by striking ``in the 
                independent states''.

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

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

SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

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

        Subtitle B--Amendments to Agricultural Trade Act of 1978

SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

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

``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    ``(a) In General.--The Secretary shall develop a strategy 
for implementing Federal agricultural export promotion programs 
that takes into account the new market opportunities for 
agricultural products, including opportunities that result 
from--
            ``(1) the North American Free Trade Agreement and 
        the Uruguay Round Agreements;
            ``(2) any accession to membership in the World 
        Trade Organization;
            ``(3) the continued economic growth in the Pacific 
        Rim; and
            ``(4) other developments.
    ``(b) Purpose of Strategy.--The strategy developed under 
subsection (a) shall encourage the maintenance, development, 
and expansion of export markets for United States agricultural 
commodities and related products, including high-value and 
value-added products.
    ``(c) Goals of Strategy.--The strategy developed under 
subsection (a) shall have the following goals:
            ``(1) Increase the value of United States 
        agricultural exports each year.
            ``(2) Increase the value of United States 
        agricultural exports each year at a faster rate than 
        the rate of increase in the value of overall world 
        export trade in agricultural products.
            ``(3) Increase the value of United States high-
        value and value-added agricultural exports each year.
            ``(4) Increase the value of United States high-
        value and value-added agricultural exports each year at 
        a faster rate than the rate of increase in the value of 
        overall world export trade in high-value and value-
        added agricultural products.
            ``(5) Ensure that to the extent practicable--
                    ``(A) all obligations undertaken in the 
                Uruguay Round Agreement on Agriculture that 
                significantly increase access for United States 
                agricultural commodities are implemented to the 
                extent required by the Uruguay Round 
                Agreements; or
                    ``(B) applicable United States laws are 
                used to secure United States rights under the 
                Uruguay Round Agreement on Agriculture.
    ``(d) Priority Markets.--
            ``(1) Identification of markets.--In developing the 
        strategy required under subsection (a), the Secretary 
        shall annually identify as priority markets--
                    ``(A) those markets in which imports of 
                agricultural products show the greatest 
                potential for increase; and
                    ``(B) those markets in which, with the 
                assistance of Federal export promotion 
                programs, exports of United States agricultural 
                products show the greatest potential for 
                increase.
            ``(2) Identification of supporting offices.--The 
        President shall identify annually in the budget of the 
        United States Government submitted under section 1105 
        of title 31, United States Code, each overseas office 
        of the Foreign Agricultural Service that provides 
        assistance to United States exporters in each of the 
        priority markets identified under paragraph (1).''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate should conduct a 
        thorough review of agricultural export and food aid 
        programs not later than December 31, 1998; and
            (2) the review should examine what changes, if any, 
        need to be made in the programs as a result of the 
        effects of the Agricultural Market Transition Act, the 
        Uruguay Round agreements, changing world market 
        conditions, and such other factors as the Committees 
        consider appropriate.
    (c) Elimination of Report.--
            (1) In general.--Section 601 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5711) is repealed.
            (2) Conforming amendment.--The last sentence of 
        section 603 of the Agricultural Trade Act of 1978 (7 
        U.S.C. 5713) is amended by striking ``, in a 
        consolidated report,'' and all that follows through 
        ``section 601'' and inserting ``or in a consolidated 
        report''.

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

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

``SEC. 106. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND 
                    AGREEMENTS.

    ``Not later than September 30 of each year, the Secretary 
shall evaluate whether the obligations undertaken by foreign 
countries under the Uruguay Round Agreement on Agriculture are 
being fully implemented. If the Secretary has reason to believe 
(based on the evaluation) that any foreign country, by not 
implementing the obligations of the country, may be 
significantly constraining an opportunity for United States 
agricultural exports, the Secretary shall--
            ``(1) submit the evaluation to the United States 
        Trade Representative; and
            ``(2) transmit a copy of the evaluation to the 
        Committee on Agriculture, and the Committee on Ways and 
        Means, of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry, and 
        the Committee on Finance, of the Senate.''.
    (b) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--Section 414 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5674) is amended by adding at the end the following:
    ``(c) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--The Secretary shall monitor the compliance of World 
Trade Organization member countries with the sanitary and 
phytosanitary measures of the Agreement on Agriculture of the 
Uruguay Round of Multilateral Trade Negotiations of the General 
Agreement on Tariffs and Trade. If the Secretary has reason to 
believe that any country may have failed to meet the commitment 
on sanitary and phytosanitary measures under the Agreement in a 
manner that adversely impacts the exports of a United States 
agricultural commodity, the Secretary shall--
            ``(1) provide such information to the United States 
        Trade Representative of the circumstances surrounding 
        the matter arising under this subsection; and
            ``(2) with respect to any such circumstances that 
        the Secretary considers to have a continuing adverse 
        effect on United States agricultural exports, report to 
        the Committee on Agriculture, and the Committee on Ways 
        and Means, of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry, and 
        the Committee on Finance, of the Senate--
                    ``(A) that a country may have failed to 
                meet the sanitary and phytosanitary 
                commitments; and
                    ``(B) any notice given by the Secretary to 
                the United States Trade Representative.''.

SEC. 243. EXPORT CREDITS.

    (a) Export Credit Guarantee Program.--Section 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Guarantees.--The'' and 
                inserting the following: ``Guarantees.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Supplier credits.--In carrying out this 
        section, the Commodity Credit Corporation may issue 
        guarantees for the repayment of credit made available 
        for a period of not more than 180 days by a United 
        States exporter to a buyer in a foreign country.'';
            (2) in subsection (f)--
                    (A) by striking ``(f) Restrictions.--The'' 
                and inserting the following:
    ``(f) Restrictions.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Criteria for determination.--In making the 
        determination required under paragraph (1) with respect 
        to credit guarantees under subsection (b) for a 
        country, the Secretary may consider, in addition to 
        financial, macroeconomic, and monetary indicators--
                    ``(A) whether an International Monetary 
                Fund standby agreement, Paris Club rescheduling 
                plan, or other economic restructuring plan is 
                in place with respect to the country;
                    ``(B) whether the country is addressing 
                issues such as--
                            ``(i) the convertibility of the 
                        currency of the country;
                            ``(ii) adequate legal protection 
                        for foreign investments;
                            ``(iii) the viability of the 
                        financial markets of the country; and
                            ``(iv) adequate legal protection 
                        for the private property rights of 
                        citizens of the country; or
                    ``(C) any other factors that are relevant 
                to the ability of the country to service the 
                debt of the country.'';
            (3) by striking subsection (h) and inserting the 
        following:
    ``(h) United States Agricultural Commodities.--The 
Commodity Credit Corporation shall finance or guarantee under 
this section only United States agricultural commodities.'';
            (4) in subsection (i)--
                    (A) by striking paragraph (1);
                    (B) by striking ``Institutions.--A 
                financial'' and inserting the following: 
                ``Institutions.--
            ``(1) In general.--A financial'';
                    (C) by striking ``(2) is'' and inserting 
                the following:
                    ``(A) is'';
                    (D) by striking ``(3) is'' and inserting 
                the following:
                    ``(B) is''; and
                    (E) by adding at the end the following:
            ``(2) Third country banks.--The Commodity Credit 
        Corporation may guarantee under subsections (a) and (b) 
        the repayment of credit made available to finance an 
        export sale irrespective of whether the obligor is 
        located in the country to which the export sale is 
        destined.''; and
            (5) by striking subsection (k) and inserting the 
        following:
    ``(k) Processed and High-Value Products.--
            ``(1) In general.--In issuing export credit 
        guarantees under this section, the Commodity Credit 
        Corporation shall, subject to paragraph (2), ensure 
        that not less than 25 percent for each of fiscal years 
        1996 and 1997, 30 percent for each of fiscal years 1998 
        and 1999, and 35 percent for each of fiscal years 2000, 
        2001, and 2002, of the total amount of credit 
        guarantees issued for a fiscal year is issued to 
        promote the export of processed or high-value 
        agricultural products and that the balance is issued to 
        promote the export of bulk or raw agricultural 
        commodities.
            ``(2) Limitation.--The percentage requirement of 
        paragraph (1) shall apply for a fiscal year to the 
        extent that a reduction in the total amount of credit 
        guarantees issued for the fiscal year is not required 
        to meet the percentage requirement.''.
    (b) Funding Levels.--Section 211 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Export Credit Guarantee Programs.--
            ``(1) Export credit guarantees.--The Commodity 
        Credit Corporation shall make available for each of 
        fiscal years 1996 through 2002 not less than 
        $5,500,000,000 in credit guarantees under subsections 
        (a) and (b) of section 202.
            ``(2) Limitation on origination fee.--
        Notwithstanding any other provision of law, the 
        Secretary may not charge an origination fee with 
        respect to any credit guarantee transaction under 
        section 202(a) in excess of an amount equal to 1 
        percent of the amount of credit to be guaranteed under 
        the transaction, except with respect to an export 
        credit guarantee transaction pursuant to section 
        1542(b) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 
        note).''.
    (c) Definition of United States Agricultural Commodity.--
Section 102(7) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5602(7)) is amended by striking subparagraphs (A) and (B) and 
inserting the following:
                    ``(A) an agricultural commodity or product 
                entirely produced in the United States; or
                    ``(B) a product of an agricultural 
                commodity--
                            ``(i) 90 percent or more of the 
                        agricultural components of which by 
                        weight, excluding packaging and added 
                        water, is entirely produced in the 
                        United States; and
                            ``(ii) that the Secretary 
                        determines to be a high value 
                        agricultural product.''.
    (d) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out the amendments made by this section.

SEC. 244. MARKET ACCESS PROGRAM.

    (a) Change of Name.--
            (1) In general.--Section 203 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5623) is amended--
                    (A) in the section heading, by striking 
                ``MARKET PROMOTION PROGRAM'' and inserting 
                ``MARKET ACCESS PROGRAM''; and
                    (B) by striking ``marketing promotion 
                program'' each place it appears and inserting 
                ``market access program''.
            (2) Conforming amendments.--
                    (A) Section 1302 of the Omnibus Budget 
                Reconciliation Act of 1993 (Public Law 103-66; 
                7 U.S.C. 5623) is amended--
                            (i) in the section heading, by 
                        striking ``MARKET PROMOTION PROGRAM'' 
                        and inserting ``MARKET ACCESS 
                        PROGRAM''; and
                            (ii) in subsection (b), by striking 
                        ``market promotion program'' each place 
                        it appears and inserting ``market 
                        access program''.
                    (B) Section 211(c) of the Agricultural 
                Trade Act of 1978 (7 U.S.C. 5641(c)) is 
                amended--
                            (i) in the subsection heading, by 
                        striking ``Marketing Promotion 
                        Programs'' and inserting ``Market 
                        Access Programs'';
                            (ii) by striking ``market promotion 
                        activities'' and inserting ``market 
                        access activities'';
                            (iii) in paragraph (1), by striking 
                        ``market development program'' and 
                        inserting ``market access program''; 
                        and
                            (iv) in paragraph (2), by striking 
                        ``marketing promotion program'' and 
                        inserting ``market access program''.
    (b) Use of Funds.--Section 203(f) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5623(f)) is amended by adding at the end 
the following:
            ``(4) Use of funds.--Funds made available to carry 
        out this section--
                    ``(A) shall not be used to provide direct 
                assistance to any foreign for-profit 
                corporation for the corporation's use in 
                promoting foreign-produced products;
                    ``(B) shall not be used to provide direct 
                assistance to any for-profit corporation that 
                is not recognized as a small-business concern 
                described in section 3(a) of the Small Business 
                Act (15 U.S.C. 632(a)), excluding--
                            ``(i) a cooperative;
                            ``(ii) an association described in 
                        the first section of the Act entitled 
                        `An Act To authorize association of 
                        producers of agricultural products', 
                        approved February 18, 1922 (7 U.S.C. 
                        291); and
                            ``(iii) a nonprofit trade 
                        association; and
                    ``(C) may be used by a United States trade 
                association, cooperative, or small business for 
                individual branded promotional activity related 
                to a United States branded product, if the 
                beneficiaries of the activity have provided 
                funds for the activity in an amount that is at 
                least equivalent to the amount of assistance 
                provided under this section.''.
    (c) Funding.--Effective October 1, 1995, section 211(c)(1) 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is 
amended--
            (1) by striking ``and'' after ``1991 through 
        1993,''; and
            (2) by striking ``through 1997,'' and inserting 
        ``through 1995, and not more than $90,000,000 for each 
        of fiscal years 1996 through 2002,''.

SEC. 245. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Effective October 1, 1995, section 301(e) 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)) is 
amended by striking paragraph (1) and inserting the following:
            ``(1) In general.--The Commodity Credit Corporation 
        shall make available to carry out the program 
        established under this section not more than--
                    ``(A) $350,000,000 for fiscal year 1996;
                    ``(B) $250,000,000 for fiscal year 1997;
                    ``(C) $500,000,000 for fiscal year 1998;
                    ``(D) $550,000,000 for fiscal year 1999;
                    ``(E) $579,000,000 for fiscal year 2000;
                    ``(F) $478,000,000 for fiscal year 2001; 
                and
                    ``(G) $478,000,000 for fiscal year 2002.''.
    (b) Priority Funding for Intermediate Products.--Section 
301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is 
amended by adding at the end the following:
    ``(h) Priority Funding for Intermediate Products.--
            ``(1) In general.--Effective beginning in fiscal 
        year 1996, and consistent, as determined by the 
        Secretary, with the obligations and reduction 
        commitments undertaken by the United States under the 
        Uruguay Round Agreements, the Secretary may make 
        available not more than $100,000,000 for each fiscal 
        year under this section for the sale of intermediate 
        agricultural products in sufficient quantities to 
        attain the volume of export sales consistent with the 
        volume of intermediate agricultural products exported 
        by the United States during the Uruguay Round base 
        period years of 1986 through 1990.
            ``(2) Additional assistance.--Notwithstanding 
        paragraph (1), if the export sale of any intermediate 
        agricultural product attains the volume of export sales 
        consistent with the volume of the intermediate 
        agricultural product exported by the United States 
        during the Uruguay Round base period years of 1986 
        through 1990, the Secretary may make available 
        additional amounts under this section for the 
        encouragement of export sales of the intermediate 
        agricultural product.''.

SEC. 246. ARRIVAL CERTIFICATION.

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

SEC. 247. COMPLIANCE.

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

SEC. 248. REGULATIONS.

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

SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

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

``SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    ``(a) In General.--Except as provided in subsection (f), 
notwithstanding any other provision of law, if, after the date 
of enactment of this section, the President or any other member 
of the executive branch causes exports from the United States 
to any country to be unilaterally suspended for reasons of 
national security or foreign policy, and if within 90 days 
after the date on which the suspension is imposed on United 
States exports no other country with an agricultural economic 
interest agrees to participate in the suspension, the Secretary 
shall carry out a trade compensation assistance program in 
accordance with this section (referred to in this section as a 
`program').
    ``(b) Compensation or Provision of Funds.--Under a program, 
the Secretary shall, based on an evaluation by the Secretary of 
the method most likely to produce the greatest compensatory 
benefit for producers of the commodity involved in the 
suspension--
            ``(1) compensate producers of the commodity by 
        making payments available to producers, as provided by 
        subsection (c)(1); or
            ``(2) make available an amount of funds calculated 
        under subsection (c)(2), to promote agricultural 
        exports or provide agricultural commodities to 
        developing countries under any authorities available to 
        the Secretary.
    ``(c) Determination of Amount of Compensation or Funds.--
            ``(1) Compensation.--If the Secretary makes 
        payments available to producers under subsection 
        (b)(1), the amount of the payment shall be determined 
        by the Secretary based on the Secretary's estimate of 
        the loss suffered by producers of the commodity 
        involved due to any decrease in the price of the 
        commodity as a result of the suspension.
            ``(2) Determination of amount of funds.--For each 
        fiscal year of a program, the amount of funds made 
        available under subsection (b)(2) shall be equal to 90 
        percent of the average annual value of United States 
        agricultural exports to the country with respect to 
        which exports are suspended during the most recent 3 
        years prior to the suspension for which data are 
        available.
    ``(d) Duration of Program.--For each suspension of exports 
for which a program is implemented under this section, funds 
shall be made available under subsection (b) for each fiscal 
year or part of a fiscal year for which the suspension is in 
effect, but not to exceed 3 fiscal years.
    ``(e) Commodity Credit Corporation.--The Secretary shall 
use funds of the Commodity Credit Corporation to carry out this 
section.
    ``(f) Exception to Carrying Out a Program.--This section 
shall not apply to any suspension of trade due to a war or 
armed hostility.
    ``(g) Partial Year Embargoes.--If the Secretary makes funds 
available under subsection (b)(2), regardless of whether an 
embargo is in effect for only part of a fiscal year, the full 
amount of funds as calculated under subsection (c)(2) shall be 
made available under a program for the fiscal year. If the 
Secretary determines that making the required amount of funds 
available in a partial fiscal year is impracticable, the 
Secretary may make all or part of the funds required to be made 
available in the following fiscal year (in addition to any 
funds otherwise required under a program to be made available 
in the following fiscal year).
    ``(h) Short Supply Embargoes.--If the President or any 
other member of the executive branch causes exports to be 
suspended based on a determination of short supply, the 
Secretary shall carry out section 1002 of the Food and 
Agriculture Act of 1977 (7 U.S.C. 1310).''.

SEC. 250. FOREIGN AGRICULTURAL SERVICE.

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

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

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

SEC. 251. REPORTS.

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

SEC. 252. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

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

       ``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.

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

``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    ``(a) In General.--The Secretary shall establish and, in 
cooperation with eligible trade organizations, carry out a 
foreign market development cooperator program to maintain and 
develop foreign markets for United States agricultural 
commodities and products.
    ``(b) Administration.--Funds made available to carry out 
this title shall be used only to provide--
            ``(1) cost-share assistance to an eligible trade 
        organization under a contract or agreement with the 
        organization; and
            ``(2) assistance for other costs that are necessary 
        or appropriate to carry out the foreign market 
        development cooperator program, including contingent 
        liabilities that are not otherwise funded.

``SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

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

        Subtitle C--Miscellaneous Agricultural Trade Provisions

SEC. 261. EDWARD R. MADIGAN UNITED STATES AGRICULTURAL EXPORT 
                    EXCELLENCE AWARD.

    (a) Findings.--Congress finds that--
            (1) United States producers of agricultural 
        products are some of the most productive and efficient 
        producers of agricultural products in the world;
            (2) continued growth and expansion of markets for 
        United States agricultural exports is crucial to the 
        continued development and economic well-being of rural 
        areas of the United States and the agricultural sector 
        of the United States economy;
            (3) in recent years, United States agricultural 
        exports have steadily increased, surpassing 
        $54,000,000,000 in value in 1995;
            (4) as United States agricultural producers move 
        toward a market-oriented system in which planting and 
        other decisions by producers are driven by national and 
        international market signals, developing new and 
        expanding agricultural export markets is vital to 
        maintaining a vibrant and healthy agricultural sector 
        and rural economy; and
            (5) a United States agricultural export excellence 
        award will increase United States agricultural exports 
        by--
                    (A) identifying efforts of United States 
                entities to develop and expand markets for 
                United States agricultural exports through the 
                development of new products and services and 
                through the use of innovative marketing 
                techniques;
                    (B) recognizing achievements of those who 
                have exhibited or supported entrepreneurial 
                efforts to expand and create new markets for 
                United States agricultural exports or increase 
                the volume or value of United States 
                agricultural exports; and
                    (C) disseminating information on successful 
                methods used to develop and expand markets for 
                United States agricultural exports.
    (b) Establishment.--There is established the Edward R. 
Madigan United States Agricultural Export Excellence Award, 
which shall be evidenced by a medal bearing the inscription 
``Edward R. Madigan United States Agricultural Export 
Excellence Award''. The medal shall be of such design and 
materials and bear such additional inscriptions as the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may prescribe.
    (c) Selection of Recipient.--The President or the Secretary 
(on the basis of recommendations received from the board 
established under subsection (h)) shall periodically provide 
the award to companies and other entities that in the judgment 
of the President or the Secretary substantially encourage 
entrepreneurial efforts in the food and agriculture sector for 
advancing United States agricultural exports.
    (d) Presentation of Award.--The presentation of the award 
shall be made by the President or the Secretary with such 
ceremonies as the President or the Secretary considers proper.
    (e) Publication of Award.--An entity to which an award is 
made under this section may publicize the receipt of the award 
by the entity and use the award in advertising of the entity.
    (f) Categories for Which Award May Be Given.--Separate 
awards shall be made to qualifying entities in each of the 
following categories:
            (1) Development of new products or services for 
        agricultural export markets.
            (2) Development of new agricultural export markets.
            (3) Creative marketing of products or services in 
        agricultural export markets.
    (g) Criteria for Qualification.--An entity may qualify for 
an award under this section only if the entity--
            (1)(A) applies to the board established under 
        subsection (h) in writing for the award; or
            (B) is recommended for the award by a Governor of a 
        State;
            (2)(A) has exhibited significant entrepreneurial 
        effort to create new markets for United States 
        agricultural exports or increase United States 
        agricultural exports; or
            (B) has provided significant assistance to others 
        in an effort to create new markets for United States 
        agricultural exports or increase United States 
        agricultural exports;
            (3) has not received another award in the same 
        category under subsection (f) during the preceding 5-
        year period; and
            (4) meets such other requirements and 
        specifications as the Secretary determines are 
        appropriate to achieve the objectives of this section.
    (h) Board.--
            (1) Selection.--The Secretary shall appoint a board 
        of evaluators, consisting of at least 5 individuals 
        from the private sector selected for their knowledge 
        and experience in exporting United States agricultural 
        products.
            (2) Meetings.--The board shall meet at least once 
        annually to review and evaluate all applicants and 
        entities recommended by States under subsection (g)(1).
            (3) Recommendations of board.--The board shall 
        report its recommendations concerning the making of the 
        award to the Secretary.
            (4) Term.--Each member of the board may serve a 
        term of not to exceed 3 years.
    (i) Funding.--The Secretary may seek and accept gifts from 
public and private sources to carry out this section.

SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.

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

SEC. 263. TRIGGERED EXPORT ENHANCEMENT.

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

SEC. 264. DISPOSITION OF COMMODITIES TO PREVENT WASTE.

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

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

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

SEC. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

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

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

    Section 1121 of the Food Security Act of 1985 (7 U.S.C. 
1736p) is amended--
            (1) by striking subsection (a); and
            (2) in subsection (b)--
                    (A) by striking ``(b)''; and
                    (B) by striking paragraphs (1) through (4) 
                and inserting the following:
            ``(1) be the premier supplier of agricultural and 
        food products to world markets and expand exports of 
        high value products;
            ``(2) support the principle of free trade and the 
        promotion of fair trade in agricultural commodities and 
        products;
            ``(3) cooperate fully in all efforts to negotiate 
        with foreign countries further reductions in tariff and 
        nontariff barriers to trade, including sanitary and 
        phytosanitary measures and trade-distorting subsidies;
            ``(4) aggressively counter unfair foreign trade 
        practices as a means of encouraging fairer trade;''.

SEC. 268. POLICY ON TRADE LIBERALIZATION.

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

SEC. 269. AGRICULTURAL TRADE NEGOTIATIONS.

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

``SEC. 1123. TRADE NEGOTIATIONS POLICY.

    ``(a) Findings.--Congress finds that--
            ``(1) on a level playing field, United States 
        producers are the most competitive suppliers of 
        agricultural products in the world;
            ``(2) exports of United States agricultural 
        products accounted for $54,000,000,000 in 1995, 
        contributing a net $24,000,000,000 to the merchandise 
        trade balance of the United States and supporting 
        approximately 1,000,000 jobs;
            ``(3) increased agricultural exports are critical 
        to the future of the farm, rural, and overall United 
        States economy, but the opportunities for increased 
        agricultural exports are limited by the unfair 
        subsidies of the competitors of the United States, and 
        a variety of tariff and nontariff barriers to highly 
        competitive United States agricultural products;
            ``(4) international negotiations can play a key 
        role in breaking down barriers to United States 
        agricultural exports;
            ``(5) the Uruguay Round Agreement on Agriculture 
        made significant progress in the attainment of 
        increased market access opportunities for United States 
        exports of agricultural products, for the first time--
                    ``(A) restraining foreign trade-distorting 
                domestic support and export subsidy programs; 
                and
                    ``(B) developing common rules for the 
                application of sanitary and phytosanitary 
                restrictions;
        that should result in increased exports of United 
        States agricultural products, jobs, and income growth 
        in the United States;
            ``(6) the Uruguay Round Agreement on Agriculture 
        did not succeed in completely eliminating trade 
        distorting domestic support and export subsidies by--
                    ``(A) allowing the European Union to 
                continue unreasonable levels of spending on 
                export subsidies; and
                    ``(B) failing to discipline monopolistic 
                state trading entities, such as the Canadian 
                Wheat Board, that use nontransparent and 
                discriminatory pricing as a hidden de facto 
                export subsidy;
            ``(7) during the period 1996 through 2002, there 
        will be several opportunities for the United States to 
        negotiate fairer trade in agricultural products, 
        including further negotiations under the World Trade 
        Organization, and steps toward possible free trade 
        agreements of the Americas and Asian-Pacific Economic 
        Cooperation (APEC); and
            ``(8) the United States should aggressively use 
        these opportunities to achieve more open and fair 
        opportunities for trade in agricultural products.
    ``(b) Goals of the United States in Agricultural Trade 
Negotiations.--The objectives of the United States with respect 
to future negotiations on agricultural trade include--
            ``(1) increasing opportunities for United States 
        exports of agricultural products by eliminating tariff 
        and nontariff barriers to trade;
            ``(2) leveling the playing field for United States 
        producers of agricultural products by limiting per unit 
        domestic production supports to levels that are no 
        greater than those available in the United States;
            ``(3) ending the practice of export dumping by 
        eliminating all trade distorting export subsidies and 
        disciplining state trading entities so that they do not 
        (except in cases of bona fide food aid) sell in foreign 
        markets at prices below domestic market prices or 
        prices below their full costs of acquiring and 
        delivering agricultural products to the foreign 
        markets; and
            ``(4) encouraging government policies that avoid 
        price-depressing surpluses.''.

SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.

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

SEC. 271. AGRICULTURAL AID AND TRADE MISSIONS.

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

SEC. 272. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

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

SEC. 273. WORLD LIVESTOCK MARKET PRICE INFORMATION.

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

SEC. 274. ORDERLY LIQUIDATION OF STOCKS.

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

SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.

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

SEC. 276. REGULATIONS.

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

SEC. 277. EMERGING MARKETS.

    (a) Promotion of Agricultural Exports to Emerging 
Markets.--
            (1) Emerging markets.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 7 U.S.C. 5622 note) is amended--
                    (A) in the section heading, by striking 
                ``EMERGING DEMOCRACIES'' and inserting 
                ``EMERGING MARKETS'';
                    (B) by striking ``emerging democracies'' 
                each place it appears in subsections (b), (d), 
                and (e) and inserting ``emerging markets'';
                    (C) in subsection (c), by striking 
                ``emerging democracy'' each place it appears 
                and inserting ``emerging market''; and
                    (D) by striking subsection (f) and 
                inserting the following:
    ``(f) Emerging Market.--In this section and section 1543, 
the term `emerging market' means any country that the Secretary 
determines--
            ``(1) is taking steps toward a market-oriented 
        economy through the food, agriculture, or rural 
        business sectors of the economy of the country; and
            ``(2) has the potential to provide a viable and 
        significant market for United States agricultural 
        commodities or products of United States agricultural 
        commodities.''.
            (2) Funding.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 is 
        amended by striking subsection (a) and inserting the 
        following:
    ``(a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through 2002 not less than 
$1,000,000,000 of direct credits or export credit guarantees 
for exports to emerging markets under section 201 or 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in 
addition to the amounts acquired or authorized under section 
211 of the Act (7 U.S.C. 5641) for the program.''.
            (3) Agricultural fellowship program.--Section 1542 
        of the Food, Agriculture, Conservation, and Trade Act 
        of 1990 is amended--
                    (A) in subsection (b), by striking the last 
                sentence and inserting the following: ``The 
                Commodity Credit Corporation shall give 
                priority under this subsection to--
            ``(A) projects that encourage the privatization of 
        the agricultural sector or that benefit private farms 
        or cooperatives in emerging markets; and
            ``(B) projects for which nongovernmental persons 
        agree to assume a relatively larger share of the 
        costs.''; and
                    (B) in subsection (d)--
                            (i) in the matter preceding 
                        paragraph (1), by striking ``the Soviet 
                        Union'' and inserting ``emerging 
                        markets'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph 
                                (A)(i)--
                                            (aa) by striking 
                                        ``1995'' and inserting 
                                        ``2002''; and
                                            (bb) by striking 
                                        ``those systems, and 
                                        identify'' and 
                                        inserting ``the 
                                        systems, including 
                                        potential reductions in 
                                        trade barriers, and 
                                        identify and carry 
                                        out'';
                                    (II) in subparagraph (B), 
                                by striking ``shall'' and 
                                inserting ``may'';
                                    (III) in subparagraph (D), 
                                by inserting ``(including the 
                                establishment of extension 
                                services)'' after ``technical 
                                assistance'';
                                    (IV) by striking 
                                subparagraph (F); and
                                    (V) by redesignating 
                                subparagraphs (G), (H), and (I) 
                                as subparagraphs (F), (G), and 
                                (H), respectively;
                            (iii) in paragraph (2)--
                                    (I) by striking ``the 
                                Soviet Union'' each place it 
                                appears and inserting 
                                ``emerging markets'';
                                    (II) in subparagraph (A), 
                                by striking ``a free market 
                                food production and 
                                distribution system'' and 
                                inserting ``free market food 
                                production and distribution 
                                systems'';
                                    (III) in subparagraph (B)--
                                            (aa) in clause (i), 
                                        by striking 
                                        ``Government'' and 
                                        inserting 
                                        ``governments'';
                                            (bb) in clause 
                                        (iii)(II), by striking 
                                        ``and'' at the end;
                                            (cc) in clause 
                                        (iii)(III), by striking 
                                        the period at the end 
                                        and inserting ``; 
                                        and''; and
                                            (dd) by adding at 
                                        the end of clause (iii) 
                                        the following:
                                    ``(IV) to provide for the 
                                exchange of administrators and 
                                faculty members from 
                                agricultural and other 
                                institutions to strengthen and 
                                revise educational programs in 
                                agricultural economics, 
                                agribusiness, and agrarian law, 
                                to support change towards a 
                                free market economy in emerging 
                                markets.'';
                                    (IV) by striking 
                                subparagraph (D); and
                                    (V) by redesignating 
                                subparagraph (E) as 
                                subparagraph (D); and
                            (iv) by striking paragraph (3).
            (4) United states agricultural commodity.--
        Subsections (b) and (c) of section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 are 
        amended by striking ``section 101(6)'' each place it 
        appears and inserting ``section 102(7)''.
            (5) Report.--The first sentence of section 
        1542(e)(2) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 is amended by striking ``Not'' and 
        inserting ``Subject to section 217 of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6917), 
        not''.
    (b) Agricultural Fellowship Program for Middle Income 
Countries, Emerging Democracies, and Emerging Markets.--Section 
1543 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 3293) is amended--
            (1) in the section heading, by striking ``MIDDLE 
        INCOME COUNTRIES AND EMERGING DEMOCRACIES'' and 
        inserting ``MIDDLE INCOME COUNTRIES, EMERGING 
        DEMOCRACIES, AND EMERGING MARKETS'';
            (2) in subsection (b), by adding at the end the 
        following:
            ``(5) Emerging market.--Any emerging market, as 
        defined in section 1542(f).''; and
            (3) in subsection (c)(1), by striking ``food 
        needs'' and inserting ``food and fiber needs''.
    (c) Conforming Amendments.--
            (1) Section 501 of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1737) 
        is amended--
                    (A) in subsection (a), by striking 
                ``emerging democracies'' and inserting 
                ``emerging markets''; and
                    (B) in subsection (b), by striking 
                paragraph (1) and inserting the following:
            ``(1) Emerging market.--The term `emerging market' 
        means any country that the Secretary determines--
                    ``(A) is taking steps toward a market-
                oriented economy through the food, agriculture, 
                or rural business sectors of the economy of the 
                country; and
                    ``(B) has the potential to provide a viable 
                and significant market for United States 
                agricultural commodities or products of United 
                States agricultural commodities.''.
            (2) Section 201(d)(1)(C)(ii) of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is 
        amended by striking ``emerging democracies'' and 
        inserting ``emerging markets''.
            (3) Section 202(d)(3)(B) of the Agricultural Trade 
        Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is amended by 
        striking ``emerging democracies'' and inserting 
        ``emerging markets''.

SEC. 278. REIMBURSEMENT FOR OVERHEAD EXPENSES.

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

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

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

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

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

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

    (a) In General.--Sections 1551 through 1555, section 1558, 
and section 1559 of subtitle E of title XV of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 
101-624; 104 Stat. 3696) (as redesignated by section 1011(d) of 
the Federal Reports Elimination and Sunset Act of 1995 (Public 
Law 104-66; 109 Stat. 709)) are repealed.
    (b) Language Proficiency.--Section 1556 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 
101-624; 7 U.S.C. 5694 note) is amended by striking subsection 
(c).

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

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

SEC. 283. INTERNATIONAL COTTON ADVISORY COMMITTEE.

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

                        TITLE III--CONSERVATION

                        Subtitle A--Definitions

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

    (a) Conservation Plan and Conservation System.--Section 
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 
amended--
            (1) by redesignating paragraphs (2) through (16) as 
        paragraphs (4) through (18), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Conservation plan.--The term `conservation 
        plan' means the document that--
                    ``(A) applies to highly erodible cropland;
                    ``(B) describes the conservation system 
                applicable to the highly erodible cropland and 
                describes the decisions of the person with 
                respect to location, land use, tillage systems, 
                and conservation treatment measures and 
                schedule; and
                    ``(C) is approved by the local soil 
                conservation district, in consultation with the 
                local committees established under section 
                8(b)(5) of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h(b)(5)) and the 
                Secretary, or by the Secretary.
            ``(3) Conservation system.--The term `conservation 
        system' means a combination of 1 or more conservation 
        measures or management practices that--
                    ``(A) are based on local resource 
                conditions, available conservation technology, 
                and the standards and guidelines contained in 
                the Natural Resources Conservation Service 
                field office technical guides; and
                    ``(B) are designed to achieve, in a cost 
                effective and technically practicable manner, a 
                substantial reduction in soil erosion or a 
                substantial improvement in soil conditions on a 
                field or group of fields containing highly 
                erodible cropland when compared to the level of 
                erosion or soil conditions that existed before 
                the application of the conservation measures 
                and management practices.''.
    (b) Field.--Section 1201(a) of the Food Security Act of 
1985 is amended by striking paragraph (7) (as redesignated by 
subsection (a)(1)) and inserting the following:
            ``(7) Field.--The term `field' means a part of a 
        farm that is separated from the balance of the farm by 
        permanent boundaries such as fences, roads, permanent 
        waterways, or other similar features. At the option of 
        the owner or operator of the farm, croplines may also 
        be used to delineate a field if farming practices make 
        it probable that the croplines are not subject to 
        change. Any highly erodible land on which an 
        agricultural commodity is produced after December 23, 
        1985, and that is not exempt under section 1212, shall 
        be considered as part of the field in which the land 
        was included on December 23, 1985, unless the owner and 
        Secretary agree to modification of the boundaries of 
        the field to carry out this title.''.
    (c) Highly Erodible Land.--Section 1201(a)(9) of the Food 
Security Act of 1985 (as redesignated by subsection (a)(1)) is 
amended by adding at the end the following:
                    ``(C) Equations.--Not later than 60 days 
                after the date of enactment of this 
                subparagraph, the Secretary shall publish in 
                the Federal Register the universal soil loss 
                equation and wind erosion equation used by the 
                Department of Agriculture as of that date. The 
                Secretary may not change the equations after 
                that date except following notice and comment 
                in a manner consistent with section 553 of 
                title 5, United States Code.''.
    (d) Conforming Amendments.--Section 1212 of the Food 
Security Act of 1985 (16 U.S.C. 3812) is amended--
            (1) in the first sentence of subsection (a)(2), by 
        striking ``that documents'' and all that follows 
        through ``by the Secretary'';
            (2) in subsection (c)(3), by striking ``based on'' 
        and all that follows through ``and the Secretary,'' and 
        inserting ``, in which case,'';
            (3) in subsection (e)(1)(A), by striking 
        ``conservation compliance plan'' and inserting 
        ``conservation plan''; and
            (4) in subsection (f)--
                    (A) in paragraph (1), by striking ``that 
                documents'' and all that follows through 
                ``under subsection (a)'';
                    (B) in paragraph (3), by striking 
                ``prepared under subsection (a)''; and
                    (C) in paragraph (4), by striking ``that 
                documents'' and all that follows through 
                ``subsection (a)''.

             Subtitle B--Highly Erodible Land Conservation

SEC. 311. PROGRAM INELIGIBILITY.

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

SEC. 312. CONSERVATION RESERVE LANDS.

    Section 1212(a)(3) of the Food Security Act of 1985 (16 
U.S.C. 3812(a)(3)) is amended by striking ``shall, if the 
conservation plan established under this subtitle for such land 
requires structures to be constructed,'' and inserting ``shall 
only be required to apply a conservation plan established under 
this subtitle. The person shall not be required to meet a 
higher conservation standard than the standard applied to other 
highly erodible cropland located within the same area. If the 
person's conservation plan requires structures to be 
constructed, the person shall''.

SEC. 313. GOOD FAITH EXEMPTION.

    (a) Grace Period To Resume Conservation Compliance.--
Section 1212(f)(1) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(1)) is amended--
            (1) by striking ``Except to the extent provided in 
        paragraph (2), no'' and inserting ``No''; and
            (2) by striking ``such person has--'' and all that 
        follows through the period at the end of subparagraph 
        (B) and inserting the following: ``the person has acted 
        in good faith and without an intent to violate this 
        subtitle. A person who meets the requirements of this 
        paragraph shall be allowed a reasonable period of time, 
        as determined by the Secretary, but not to exceed 1 
        year, during which to implement the measures and 
        practices necessary to be considered to be actively 
        applying the person's conservation plan.''.
    (b) Special Penalties Regarding Certain Highly Erodible 
Cropland.--Section 1212(f)(2) of the Food Security Act of 1985 
(16 U.S.C. 3812(f)(2)) is amended by striking ``meets the 
requirements of paragraph (1)'' and inserting ``with respect to 
highly erodible cropland that was not in production prior to 
December 23, 1985, and has acted in good faith and without an 
intent to violate the provisions''.
    (c) Conforming Amendment.--Section 1212(f)(4) of the Food 
Security Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by 
striking the last sentence.

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

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

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

    (a) Development and Implementation.--The Food Security Act 
of 1985 is amended--
            (1) by redesignating section 1213 (16 U.S.C. 3813) 
        as section 1214; and
            (2) by inserting after section 1212 (16 U.S.C. 
        3812) the following:

``SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
                    CONSERVATION SYSTEMS.

    ``(a) Technical Requirements.--In connection with the 
standards and guidelines contained in Natural Resources 
Conservation Service field office technical guides applicable 
to the development and use of conservation measures and 
management practices as part of a conservation system, the 
Secretary shall ensure that the standards and guidelines permit 
a person to use a conservation system that--
            ``(1) is technically and economically feasible;
            ``(2) is based on local resource conditions and 
        available conservation technology;
            ``(3) is cost-effective; and
            ``(4) does not cause undue economic hardship on the 
        person applying the conservation system under the 
        person's conservation plan.
    ``(b) Measurement of Erosion Reduction.--For the purpose of 
determining whether there is a substantial reduction in soil 
erosion on a field containing highly erodible cropland, the 
measurement of erosion reduction achieved by the application of 
a conservation system under a person's conservation plan shall 
be based on the estimated annual level of erosion at the time 
of the measurement compared to the estimated annual level of 
erosion that existed before the implementation of the 
conservation measures and management practices provided for in 
the conservation system.
    ``(c) Residue Measurement.--
            ``(1) Responsibilities of the secretary.--For the 
        purpose of measuring the level of residue on a field, 
        the Secretary shall--
                    ``(A) take into account any residue 
                incorporated into the top 2 inches of soil, as 
                well as the growing crop, in the measurement;
                    ``(B) provide technical guidelines for 
                acceptable residue measurement methods;
                    ``(C) provide a certification system for 
                third parties to perform residue measurements; 
                and
                    ``(D) provide for the acceptance and use of 
                information and data voluntarily provided by 
                the producer regarding the field.
            ``(2) Acceptance of producer measurements.--Annual 
        residue measurements supplied by a producer (including 
        measurements performed by a certified third party) 
        shall be used by the Secretary if the Secretary 
        determines that the measurements indicate that the 
        residue level for the field meets the level required 
        under the conservation plan.
    ``(d) Certification of Compliance.--
            ``(1) In general.--For the purpose of determining 
        the eligibility of a person for program benefits 
        specified in section 1211 at the time application is 
        made for the benefits, the Secretary shall permit the 
        person to certify that the person is complying with the 
        person's conservation plan.
            ``(2) Status reviews.--If a person makes a 
        certification under paragraph (1), the Secretary shall 
        not be required to carry out a review of the status of 
        compliance of the person with the conservation plan 
        under which the conservation system is being applied.
            ``(3) Revisions and modifications.--The Secretary 
        shall permit a person who makes a certification under 
        paragraph (1) with respect to a conservation plan to 
        revise the conservation plan in any manner, if the same 
        level of conservation treatment provided for by the 
        conservation system under the person's conservation 
        plan is maintained. The Secretary may not revise the 
        person's conservation plan without the concurrence of 
        the person.
    ``(e) Technical Assistance.--The Secretary shall, using 
available resources and consistent with the Secretary's other 
conservation responsibilities and objectives, provide technical 
assistance to a person throughout the development, revision, 
and application of the conservation plan and any conservation 
system of the person. At the request of the person, the 
Secretary may provide technical assistance regarding 
conservation measures and management practices for other lands 
of the person that do not contain highly erodible cropland.
    ``(f) Encouragement of On-Farm Research.--To encourage on-
farm conservation research, the Secretary may allow a person to 
include in the person's conservation plan or a conservation 
system under the plan, on a field trial basis, practices that 
are not currently approved but that the Secretary considers 
have a reasonable likelihood of success.''.
    (b) Treatment of Technical Determinations.--Section 
226(d)(2) of the Department of Agriculture Reorganization Act 
of 1994 (7 U.S.C. 6932(d)(2)) is amended--
            (1) by striking ``determination.--With'' and 
        inserting ``determination.--
                    ``(A) In general.--With''; and
            (2) by adding at the end the following:
                    ``(B) Economic hardship.--After a technical 
                determination has been made, on a producer's 
                request, if a county or area committee 
                determines that the application of the 
                producer's conservation system would impose an 
                undue economic hardship on the producer, the 
                committee shall provide the producer with 
                relief to avoid the hardship.''.

SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.

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

``SEC. 1215. NOTICE AND INVESTIGATION OF POSSIBLE COMPLIANCE 
                    DEFICIENCIES.

    ``(a) In General.--An employee of the Department of 
Agriculture who observes a possible compliance deficiency or 
other potential violation of a conservation plan or this 
subtitle while providing on-site technical assistance shall 
provide to the responsible persons, not later than 45 days 
after observing the possible violation, information regarding 
actions needed to comply with the plan and this subtitle. The 
employee shall provide the information in lieu of reporting the 
observation as a compliance violation.
    ``(b) Corrective Action.--The responsible persons shall 
attempt to correct the deficiencies as soon as practicable 
after receiving the information.
    ``(c) Review.--If the corrective action is not fully 
implemented not later than 1 year after the responsible persons 
receive the information, the Secretary may conduct a review of 
the status of compliance of the persons with the conservation 
plan and this subtitle.''.

SEC. 317. WIND EROSION ESTIMATION PILOT PROJECT.

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

                    Subtitle C--Wetland Conservation

SEC. 321. PROGRAM INELIGIBILITY.

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

``SEC. 1221. PROGRAM INELIGIBILITY.

    ``(a) Production on Converted Wetland.--Except as provided 
in this subtitle and notwithstanding any other provision of 
law, any person who in any crop year produces an agricultural 
commodity on converted wetland, as determined by the Secretary, 
shall be--
            ``(1) in violation of this section; and
            ``(2) ineligible for loans or payments in an amount 
        determined by the Secretary to be proportionate to the 
        severity of the violation.
    ``(b) Ineligibility for Certain Loans and Payments.--If a 
person is determined to have committed a violation under 
subsection (a) during a crop year, the Secretary shall 
determine which of, and the amount of, the following loans and 
payments for which the person shall be ineligible:
            ``(1) Contract payments under a production 
        flexibility contract, marketing assistance loans, and 
        any type of price support or payment made available 
        under the Agricultural Market Transition Act, the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 714 
        et seq.), or any other Act.
            ``(2) A loan made or guaranteed under the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1921 et seq.) or any other provision of law 
        administered by the Consolidated Farm Service Agency, 
        if the Secretary determines that the proceeds of the 
        loan will be used for a purpose that will contribute to 
        conversion of a wetland (other than as provided in this 
        subtitle) to produce an agricultural commodity.
            ``(3) During the crop year:
                    ``(A) A payment made pursuant to a contract 
                entered into under the environmental quality 
                incentives program under chapter 4 of subtitle 
                D.
                    ``(B) A payment under any other provision 
                of subtitle D.
                    ``(C) A payment under section 401 or 402 of 
                the Agricultural Credit Act of 1978 (16 U.S.C. 
                2201 and 2202).
                    ``(D) A payment, loan, or other assistance 
                under section 3 or 8 of the Watershed 
                Protection and Flood Prevention Act (16 U.S.C. 
                1003 and 1006a).''.
    (b) Conforming Amendments.--
            (1) Section 1221(c) of the Food Security Act of 
        1985 (as redesignated by subsection (a)(1)) is 
        amended--
                    (A) by striking ``Except'' and inserting 
                ``Wetland Conversion.--Except'';
                    (B) by striking ``subsequent to the date of 
                enactment of the Food, Agriculture, 
                Conservation, and Trade Act of 1990'' and 
                inserting ``beginning after November 28, 
                1990,''; and
                    (C) by striking ``subsections (a) (1) 
                through (3)'' and inserting ``subsection (b)''.
            (2) Section 1221 of the Food Security Act of 1985 
        (as amended by subsection (a)) is amended by adding at 
        the end the following:
    ``(d) Prior Loans.--This section shall not apply to a loan 
described in subsection (b) made before December 23, 1985.''.

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

    (a) Delineation of Wetlands.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (a) and inserting the following:
    ``(a) Delineation by the Secretary.--
            ``(1) In general.--Subject to subsection (b) and 
        paragraph (6), the Secretary shall delineate, 
        determine, and certify all wetlands located on subject 
        land on a farm.
            ``(2) Wetland delineation maps.--The Secretary 
        shall delineate wetlands on wetland delineation maps. 
        On the request of a person, the Secretary shall make a 
        reasonable effort to make an on-site wetland 
        determination prior to delineation.
            ``(3) Certification.--On providing notice to 
        affected persons, the Secretary shall--
                    ``(A) certify whether a map is sufficient 
                for the purpose of making a determination of 
                ineligibility for program benefits under 
                section 1221; and
                    ``(B) provide an opportunity to appeal the 
                certification prior to the certification 
                becoming final.
            ``(4) Duration of certification.--A final 
        certification made under paragraph (3) shall remain 
        valid and in effect as long as the area is devoted to 
        an agricultural use or until such time as the person 
        affected by the certification requests review of the 
        certification by the Secretary.
            ``(5) Review of mapping on appeal.--In the case of 
        an appeal of the Secretary's certification, the 
        Secretary shall review and certify the accuracy of the 
        mapping of all land subject to the appeal to ensure 
        that the subject land has been accurately delineated. 
        Prior to rendering a decision on the appeal, the 
        Secretary shall conduct an on-site inspection of the 
        subject land on a farm.
            ``(6) Reliance on prior certified delineation.--No 
        person shall be adversely affected because of having 
        taken an action based on a previous certified wetland 
        delineation by the Secretary. The delineation shall not 
        be subject to a subsequent wetland certification or 
        delineation by the Secretary, unless requested by the 
        person under paragraph (4).''.
    (b) Exemptions.--Section 1222 of the Food Security Act of 
1985 (16 U.S.C. 3822) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Exemptions.--No person shall become ineligible under 
section 1221 for program loans or payments under the following 
circumstances:
            ``(1) As the result of the production of an 
        agricultural commodity on the following lands:
                    ``(A) A converted wetland if the conversion 
                of the wetland was commenced before December 
                23, 1985.
                    ``(B) Land that is a nontidal drainage or 
                irrigation ditch excavated in upland.
                    ``(C) A wet area created by a water 
                delivery system, irrigation, irrigation system, 
                or application of water for irrigation.
                    ``(D) A wetland on which the owner or 
                operator of a farm or ranch uses normal 
                cropping or ranching practices to produce an 
                agricultural commodity in a manner that is 
                consistent for the area where the production is 
                possible as a result of a natural condition, 
                such as drought, and is without action by the 
                producer that destroys a natural wetland 
                characteristic.
                    ``(E) Land that is an artificial lake or 
                pond created by excavating or diking land (that 
                is not a wetland) to collect and retain water 
                and that is used primarily for livestock 
                watering, fish production, irrigation, 
                wildlife, fire control, flood control, 
                cranberry growing, or rice production, or as a 
                settling pond.
                    ``(F) A wetland that is temporarily or 
                incidentally created as a result of adjacent 
                development activity.
                    ``(G) A converted wetland if the original 
                conversion of the wetland was commenced before 
                December 23, 1985, and the Secretary determines 
                the wetland characteristics returned after that 
                date as a result of--
                            ``(i) the lack of maintenance of 
                        drainage, dikes, levees, or similar 
                        structures;
                            ``(ii) a lack of management of the 
                        lands containing the wetland; or
                            ``(iii) circumstances beyond the 
                        control of the person.
                    ``(H) A converted wetland, if--
                            ``(i) the converted wetland was 
                        determined by the Natural Resources 
                        Conservation Service to have been 
                        manipulated for the production of an 
                        agricultural commodity or forage prior 
                        to December 23, 1985, and was returned 
                        to wetland conditions through a 
                        voluntary restoration, enhancement, or 
                        creation action subsequent to that 
                        determination;
                            ``(ii) technical determinations 
                        regarding the prior site conditions and 
                        the restoration, enhancement, or 
                        creation action have been adequately 
                        documented by the Natural Resources 
                        Conservation Service;
                            ``(iii) the proposed conversion 
                        action is approved by the Natural 
                        Resources Conservation Service prior to 
                        implementation; and
                            ``(iv) the extent of the proposed 
                        conversion is limited so that the 
                        conditions will be at least equivalent 
                        to the wetland functions and values 
                        that existed prior to implementation of 
                        the voluntary wetland restoration, 
                        enhancement, or creation action.
            ``(2) For the conversion of the following:
                    ``(A) An artificial lake or pond created by 
                excavating or diking land that is not a wetland 
                to collect and retain water and that is used 
                primarily for livestock watering, fish 
                production, irrigation, wildlife, fire control, 
                flood control, cranberry growing, rice 
                production, or as a settling pond.
                    ``(B) A wetland that is temporarily or 
                incidentally created as a result of adjacent 
                development activity.
                    ``(C) A wetland on which the owner or 
                operator of a farm or ranch uses normal 
                cropping or ranching practices to produce an 
                agricultural commodity in a manner that is 
                consistent for the area where the production is 
                possible as a result of a natural condition, 
                such as drought, and is without action by the 
                producer that destroys a natural wetland 
                characteristic.
                    ``(D) A wetland previously identified as a 
                converted wetland (if the original conversion 
                of the wetland was commenced before December 
                23, 1985), but that the Secretary determines 
                returned to wetland status after that date as a 
                result of--
                            ``(i) the lack of maintenance of 
                        drainage, dikes, levees, or similar 
                        structures;
                            ``(ii) a lack of management of the 
                        lands containing the wetland; or
                            ``(iii) circumstances beyond the 
                        control of the person.
                    ``(E) A wetland, if--
                            ``(i) the wetland was determined by 
                        the Natural Resources Conservation 
                        Service to have been manipulated for 
                        the production of an agricultural 
                        commodity or forage prior to December 
                        23, 1985, and was returned to wetland 
                        conditions through a voluntary 
                        restoration, enhancement, or creation 
                        action subsequent to that 
                        determination;
                            ``(ii) technical determinations 
                        regarding the prior site conditions and 
                        the restoration, enhancement, or 
                        creation action have been adequately 
                        documented by the Natural Resources 
                        Conservation Service;,
                            ``(iii) the proposed conversion 
                        action is approved by the Natural 
                        Resources Conservation Service prior to 
                        implementation; and
                            ``(iv) the extent of the proposed 
                        conversion is limited so that the 
                        conditions will be at least equivalent 
                        to the wetland functions and values 
                        that existed prior to implementation of 
                        the voluntary wetland restoration, 
                        enhancement, or creation action.''.
    (c) Identification of Minimal Effect Exemptions.--Section 
1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Identification of Minimal Effect Exemptions.--For 
purposes of applying the minimal effect exemption under 
subsection (f)(1), the Secretary shall identify by regulation 
categorical minimal effect exemptions on a regional basis to 
assist persons in avoiding a violation of the ineligibility 
provisions of section 1221. The Secretary shall ensure that 
employees of the Department of Agriculture who administer this 
subtitle receive appropriate training to properly apply the 
minimal effect exemptions determined by the Secretary.''.
    (d) Minimal Effect and Mitigation Exemptions.--Section 1222 
of the Food Security Act of 1985 (16 U.S.C. 3822) is amended by 
striking subsection (f) and inserting the following:
    ``(f) Minimal Effect; Mitigation.--The Secretary shall 
exempt a person from the ineligibility provisions of section 
1221 for any action associated with the production of an 
agricultural commodity on a converted wetland, or the 
conversion of a wetland, if 1 or more of the following 
conditions apply, as determined by the Secretary:
            ``(1) The action, individually and in connection 
        with all other similar actions authorized by the 
        Secretary in the area, will have a minimal effect on 
        the functional hydrological and biological value of the 
        wetlands in the area, including the value to waterfowl 
        and wildlife.
            ``(2) The wetland and the wetland values, acreage, 
        and functions are mitigated by the person through the 
        restoration of a converted wetland, the enhancement of 
        an existing wetland, or the creation of a new wetland, 
        and the restoration, enhancement, or creation is--
                    ``(A) in accordance with a wetland 
                conservation plan;
                    ``(B) in advance of, or concurrent with, 
                the action;
                    ``(C) not at the expense of the Federal 
                Government;
                    ``(D) in the case of enhancement or 
                restoration of wetlands, on not greater than a 
                1-for-1 acreage basis unless more acreage is 
                needed to provide equivalent functions and 
                values that will be lost as a result of the 
                wetland conversion to be mitigated;
                    ``(E) in the case of creation of wetlands, 
                on greater than a 1-for-1 acreage basis if more 
                acreage is needed to provide equivalent 
                functions and values that will be lost as a 
                result of the wetland conversion that is 
                mitigated;
                    ``(F) on lands in the same general area of 
                the local watershed as the converted wetland; 
                and
                    ``(G) with respect to the restored, 
                enhanced, or created wetland, made subject to 
                an easement that--
                            ``(i) is recorded on public land 
                        records;
                            ``(ii) remains in force for as long 
                        as the converted wetland for which the 
                        restoration, enhancement, or creation 
                        to be mitigated remains in agricultural 
                        use or is not returned to its original 
                        wetland classification with equivalent 
                        functions and values; and
                            ``(iii) prohibits making 
                        alterations to the restored, enhanced, 
                        or created wetland that lower the 
                        wetland's functions and values.
            ``(3) The wetland was converted after December 23, 
        1985, but before November 28, 1990, and the wetland 
        values, acreage, and functions are mitigated by the 
        producer through the requirements of subparagraphs (A), 
        (B), (C), (D), (F), and (G) of paragraph (2).
            ``(4) The action was authorized by a permit issued 
        under section 404 of the Federal Water Pollution 
        Control Act (33 U.S.C. 1344) and the wetland values, 
        acreage, and functions of the converted wetland were 
        adequately mitigated for the purposes of this 
        subtitle.''.
    (e) References to Producer.--Section 1222(g) of the Food 
Security Act of 1985 (16 U.S.C. 3822(g)) is amended by striking 
``producer'' and inserting ``person''.
    (f) Good Faith Exemption.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Good Faith Exemption.--
            ``(1) Exemption described.--The Secretary may waive 
        a person's ineligibility under section 1221 for program 
        loans, payments, and benefits as the result of the 
        conversion of a wetland subsequent to November 28, 
        1990, or the production of an agricultural commodity on 
        a converted wetland, if the Secretary determines that 
        the person has acted in good faith and without intent 
        to violate this subtitle.
            ``(2) Period for compliance.--The Secretary shall 
        provide a person who the Secretary determines has acted 
        in good faith and without intent to violate this 
        subtitle with a reasonable period, but not to exceed 1 
        year, during which to implement the measures and 
        practices necessary to be considered to actively 
        restoring the subject wetland.''.
    (g) Restoration.--Section 1222(i) of the Food Security Act 
of 1985 (16 U.S.C. 3822(i)) is amended by inserting before the 
period at the end the following: ``or has otherwise mitigated 
for the loss of wetland values, as determined by the Secretary, 
through the restoration, enhancement, or creation of wetland 
values in the same general area of the local watershed as the 
converted wetland''.
    (h) Determinations.--Section 1222 of the Food Security Act 
of 1985 (16 U.S.C. 3822) is amended by striking subsection (j) 
and inserting the following:
    ``(j) Determinations; Restoration and Mitigation Plans; 
Monitoring Activities.--Technical determinations, the 
development of restoration and mitigation plans, and monitoring 
activities under this section shall be made by the National 
Resources Conservation Service.''.
    (i) Mitigation Banking.--Section 1222 of the Food Security 
Act of 1985 (16 U.S.C. 3822) is amended by adding at the end 
the following:
    ``(k) Mitigation Banking Program.--Using authorities 
available to the Secretary, the Secretary may operate a pilot 
program for mitigation banking of wetlands to assist persons to 
increase the efficiency of agricultural operations while 
protecting wetland functions and values. Subsection (f)(2)(C) 
shall not apply to this subsection.''.

SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.

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

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

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

``SEC. 1223. AFFILIATED PERSONS.

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

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

    (a) Agricultural Lands.--For purposes of implementing the 
memorandum of agreement entered into between the Department of 
Agriculture, the Environmental Protection Agency, the 
Department of the Interior, and the Department of the Army on 
January 6, 1994, relating to the delineation of wetlands, the 
term ``agricultural lands'' shall include--
            (1) native pasture, rangelands, and other lands 
        used to produce or support the production of livestock; 
        and
            (2) tree farms.
    (b) Wetland Conservation.--Subsection (a) shall not apply 
with respect to the delineation of wetlands under subtitle C of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3821 et 
seq.) or to the enforcement of the subtitle.
    (c) Successor Memorandum.--Subsection (a) shall apply to 
any amendment to or successor of the memorandum of agreement 
described in subsection (a).

SEC. 326. EFFECTIVE DATE.

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

     Subtitle D--Environmental Conservation Acreage Reserve Program

SEC. 331. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

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

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

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 
        calendar years, the Secretary shall establish an 
        environmental conservation acreage reserve program 
        (referred to in this section as `ECARP') to be 
        implemented through contracts and the acquisition of 
        easements to assist owners and operators of farms and 
        ranches to conserve and enhance soil, water, and 
        related natural resources, including grazing land, 
        wetland, and wildlife habitat.
            ``(2) Means.--The Secretary shall carry out the 
        ECARP by--
                    ``(A) providing for the long-term 
                protection of environmentally sensitive land; 
                and
                    ``(B) providing technical and financial 
                assistance to farmers and ranchers to--
                            ``(i) improve the management and 
                        operation of the farms and ranches; and
                            ``(ii) reconcile productivity and 
                        profitability with protection and 
                        enhancement of the environment.
            ``(3) Programs.--The ECARP shall consist of--
                    ``(A) the conservation reserve program 
                established under subchapter B;
                    ``(B) the wetlands reserve program 
                established under subchapter C; and
                    ``(C) the environmental quality incentives 
                program established under chapter 4.
    ``(b) Administration.--
            ``(1) In general.--In carrying out the ECARP, the 
        Secretary shall enter into contracts with owners and 
        operators and acquire interests in land through 
        easements from owners, as provided in this chapter and 
        chapter 4.
            ``(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve or wetlands reserve program prior 
        to the date of enactment of this paragraph shall be 
        considered to be placed into the ECARP.
    ``(c) Conservation Priority Areas.--
            ``(1) Designation.--The Secretary may designate 
        watersheds, multistate areas, or regions of special 
        environmental sensitivity as conservation priority 
        areas that are eligible for enhanced assistance under 
        this chapter and chapter 4.
            ``(2) Assistance.--The Secretary may designate 
        areas as conservation priority areas to assist, to the 
        maximum extent practicable, agricultural producers 
        within the conservation priority areas to comply with 
        nonpoint source pollution requirements under the 
        Federal Water Pollution Control Act (33 U.S.C. 1251 et 
        seq.) and other Federal and State environmental laws 
        and to meet other conservation needs.
            ``(3) Producers.--The Secretary may provide 
        technical assistance, cost-share payments, and 
        incentive payments to producers in a conservation 
        priority area under this chapter and chapter 4 based 
        on--
                    ``(A) the significance of the soil, water, 
                wildlife habitat, and related natural resource 
                problems in a watershed, multistate area, or 
                region; and
                    ``(B) the structural practices or land 
                management practices that best address the 
                problems, and that maximize environmental 
                benefits for each dollar expended, as 
                determined by the Secretary.''.

SEC. 332. CONSERVATION RESERVE PROGRAM.

    (a) Program Extensions.--
            (1) Conservation reserve program.--Section 1231 of 
        the Food Security Act of 1985 (16 U.S.C. 3831) is 
        amended by striking ``1995'' each place it appears and 
        inserting ``2002''.
            (2) Duties of owners and operators.--Section 
        1232(c) of the Food Security Act of 1985 (16 U.S.C. 
        3832(c)) is amended by striking ``1995'' and inserting 
        ``2002''.
    (b) Maximum Enrollment.--Section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended by striking subsection 
(d) and inserting the following:
    ``(d) Maximum Enrollment.--The Secretary may maintain up to 
36,400,000 acres in the conservation reserve at any one time 
during the 1986 through 2002 calendar years (including 
contracts extended by the Secretary pursuant to section 1437(c) 
of the Food, Agriculture, Conservation, and Trade Act of 1990 
(Public Law 101-624; 16 U.S.C. 3831 note).''.
    (c) Optional Contract Termination by Producers.--Section 
1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``3-
                year'' and inserting ``1-year''; and
                    (B) in paragraph (2)(B)(i), by striking ``3 
                years'' and inserting ``1 year''; and
            (2) by adding at the end the following:
    ``(e) Termination by Owner or Operator.--
            ``(1) Early termination authorized.--Subject to the 
        other provisions of this subsection, the Secretary 
        shall allow a participant who entered into a contract 
        before January 1, 1995, to terminate the contract at 
        any time if the contract has been in effect for at 
        least 5 years. The termination shall not relieve the 
        participant of liability for a contract violation 
        occurring before the date of the termination. The 
        participant shall provide the Secretary with reasonable 
        notice of the participant's desire to terminate the 
        contract.
            ``(2) Certain lands excepted.--The following lands 
        shall not be subject to an early termination of 
        contract under this subsection:
                    ``(A) Filterstrips, waterways, strips 
                adjacent to riparian areas, windbreaks, and 
                shelterbelts.
                    ``(B) Land with an erodibility index of 
                more than 15.
                    ``(C) Other lands of high environmental 
                value (including wetlands), as determined by 
                the Secretary.
            ``(3) Effective date.--The contract termination 
        shall become effective 60 days after the date on which 
        the owner or operator submits the notice required under 
        paragraph (1).
            ``(4) Prorated rental payment.--If a contract 
        entered into under this subchapter is terminated under 
        this subsection before the end of the fiscal year for 
        which a rental payment is due, the Secretary shall 
        provide a prorated rental payment covering the portion 
        of the fiscal year during which the contract was in 
        effect.
            ``(5) Renewed enrollment.--The termination of a 
        contract entered into under this subchapter shall not 
        affect the ability of the owner or operator who 
        requested the termination to submit a subsequent bid to 
        enroll the land that was subject to the contract into 
        the conservation reserve.
            ``(6) Conservation requirements.--If land that was 
        subject to a contract is returned to production of an 
        agricultural commodity, the conservation requirements 
        under subtitles B and C shall apply to the use of the 
        land to the extent that the requirements are similar to 
        those requirements imposed on other similar lands in 
        the area, except than the requirements may not be more 
        onerous than the requirements imposed on other 
        lands.''.
    (d) Enrollments in 1997.--Section 725 of the Agriculture, 
Rural Development, Food and Drug Administration, and Related 
Agencies Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 
332), is amended by striking ``: Provided,'' and all that 
follows through ``1997''.

SEC. 333. WETLANDS RESERVE PROGRAM.

    (a) Enrollment.--Section 1237 of the Food Security Act of 
1985 (16 U.S.C. 3837) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of 
        acres enrolled in the wetlands reserve program shall 
        not exceed 975,000 acres.
            ``(2) Methods of enrollment.--
                    ``(A) In general.--Subject to subparagraph 
                (B), effective beginning October 1, 1996, to 
                the maximum extent practicable, the Secretary 
                shall enroll into the wetlands reserve 
                program--
                            ``(i) \1/3\ of the acres through 
                        the use of permanent easements;
                            ``(ii) \1/3\ of the acres through 
                        the use of 30-year easements; and
                            ``(iii) \1/3\ of the acres through 
                        the use of restoration cost-share 
                        agreements.
                    ``(B) Temporary easements.--Effective 
                beginning October 1, 1996, the Secretary shall 
                not enroll acres in the wetlands reserve 
                program through the use of new permanent 
                easements until the Secretary has enrolled at 
                least 75,000 acres in the program through the 
                use of temporary easements.''.
    (b) Eligibility.--Section 1237(c) of the Food Security Act 
of 1985 (16 U.S.C. 3837(c)) is amended--
            (1) by striking ``2000'' and inserting ``2002'';
            (2) by redesignating paragraphs (1) and (2) as 
        paragraphs (2) and (3), respectively; and
            (3) by inserting after ``determines that--'' the 
        following:
            ``(1) such land maximizes wildlife benefits and 
        wetland values and functions;''.
    (c) Other Eligible Lands.--Section 1237(d) of the Food 
Security Act of 1985 (16 U.S.C. 3837(d)) is amended--
            (1) by inserting after ``subsection (c)'' the 
        following ``, land that maximizes wildlife benefits and 
        that is''; and
            (2) in paragraph (2), by striking ``and'' at the 
        end and inserting ``or''.
    (d) Easements.--Section 1237A of the Food Security Act of 
1985 (16 U.S.C. 3837a) is amended--
            (1) in the section heading, by inserting before the 
        period at the end the following: ``AND AGREEMENTS'';
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Restoration Plans.--The development of a restoration 
plan, including any compatible use, under this section shall be 
made through the local Natural Resources Conservation Service 
representative, in consultation with the State technical 
committee.'';
            (3) in subsection (f), by striking the third 
        sentence and inserting the following: ``Compensation 
        may be provided in not less than 5, nor more than 30, 
        annual payments of equal or unequal size, as agreed to 
        by the owner and the Secretary.''; and
            (4) by adding at the end the following:
    ``(h) Restoration Cost-Share Agreements.--The Secretary may 
enroll land into the wetlands reserve program through an 
agreement that requires the landowner to restore wetlands on 
the land, if the agreement does not provide the Secretary with 
an easement.''.
    (e) Cost-Share and Technical Assistance.--Section 1237C of 
the Food Security Act of 1985 (16 U.S.C. 3837c) is amended by 
striking subsection (b) and inserting the following:
    ``(b) Cost-Share and Technical Assistance.--
            ``(1) Easements.--Effective beginning October 1, 
        1996, in making cost-share payments under subsection 
        (a)(1), the Secretary shall--
                    ``(A) in the case of a permanent easement, 
                pay the owner an amount that is not less than 
                75 percent, but not more than 100 percent, of 
                the eligible costs; and
                    ``(B) in the case of a 30-year easement, 
                pay the owner an amount that is not less than 
                50 percent, but not more than 75 percent, of 
                the eligible costs.
            ``(2) Restoration cost-share agreements.--In making 
        cost-share payments in connection with a restoration 
        cost-share agreement entered into under section 
        1237A(h), the Secretary shall pay the owner an amount 
        that is not less than 50 percent, but not more than 75 
        percent, of the eligible costs.
            ``(3) Technical assistance.--The Secretary shall 
        provide owners with technical assistance to assist 
        owners in complying with the terms of easements and 
        restoration cost-share agreements.''.
    (f) Effect on Existing Agreements.--The amendments made by 
this section shall not affect the validity or terms of any 
agreements entered into by the Secretary of Agriculture under 
subchapter C of chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3837 et seq.) before the 
date of enactment of this Act or any payments required to be 
made in connection with the agreements.

SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

         ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``SEC. 1240. PURPOSES.

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

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
            ``(1) Eligible land.--The term `eligible land' 
        means agricultural land (including cropland, rangeland, 
        pasture, and other land on which crops or livestock are 
        produced), including agricultural land that the 
        Secretary determines poses a serious threat to soil, 
        water, or related resources by reason of the soil 
        types, terrain, climatic, soil, topographic, flood, or 
        saline characteristics, or other factors or natural 
        hazards.
            ``(2) Land management practice.--The term `land 
        management practice' means a site-specific nutrient or 
        manure management, integrated pest management, 
        irrigation management, tillage or residue management, 
        grazing management, or other land management practice 
        carried out on eligible land that the Secretary 
        determines is needed to protect, in the most cost-
        effective manner, water, soil, or related resources 
        from degradation.
            ``(3) Livestock.--The term `livestock' means dairy 
        cattle, beef cattle, laying hens, broilers, turkeys, 
        swine, sheep, and such other animals as determined by 
        the Secretary.
            ``(4) Producer.--The term `producer' means a person 
        who is engaged in livestock or agricultural production 
        (as defined by the Secretary).
            ``(5) Structural practice.--The term `structural 
        practice' means--
                    ``(A) the establishment on eligible land of 
                a site-specific animal waste management 
                facility, terrace, grassed waterway, contour 
                grass strip, filterstrip, tailwater pit, 
                permanent wildlife habitat, or other structural 
                practice that the Secretary determines is 
                needed to protect, in the most cost-effective 
                manner, water, soil, or related resources from 
                degradation; and
                    ``(B) the capping of abandoned wells on 
                eligible land.

``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
                    INCENTIVES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 
        fiscal years, the Secretary shall provide technical 
        assistance, cost-share payments, incentive payments, 
        and education to producers, who enter into contracts 
        with the Secretary, through an environmental quality 
        incentives program in accordance with this chapter.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--A producer who 
                implements a structural practice shall be 
                eligible for any combination of technical 
                assistance, cost-share payments, and education.
                    ``(B) Land management practices.--A 
                producer who performs a land management 
                practice shall be eligible for any combination 
                of technical assistance, incentive payments, 
                and education.
    ``(b) Application and Term.--A contract between a producer 
and the Secretary under this chapter may--
            ``(1) apply to 1 or more structural practices or 1 
        or more land management practices, or both; and
            ``(2) have a term of not less than 5, nor more than 
        10, years, as determined appropriate by the Secretary, 
        depending on the practice or practices that are the 
        basis of the contract.
    ``(c) Structural Practices.--
            ``(1) Offer selection process.--The Secretary 
        shall, to the maximum extent practicable, establish a 
        process for selecting applications for financial 
        assistance if there are numerous applications for 
        assistance for structural practices that would provide 
        substantially the same level of environmental benefits. 
        The process shall be based on--
                    ``(A) a reasonable estimate of the 
                projected cost of the proposals and other 
                factors identified by the Secretary for 
                determining which applications will result in 
                the least cost to the program authorized by 
                this chapter; and
                    ``(B) the priorities established under this 
                subtitle and such other factors determined by 
                the Secretary that maximize environmental 
                benefits per dollar expended.
            ``(2) Concurrence of owner.--If the producer making 
        an offer to implement a structural practice is a tenant 
        of the land involved in agricultural production, for 
        the offer to be acceptable, the producer shall obtain 
        the concurrence of the owner of the land with respect 
        to the offer.
    ``(d) Land Management Practices.--The Secretary shall 
establish an application and evaluation process for awarding 
technical assistance or incentive payments, or both, to a 
producer in exchange for the performance of 1 or more land 
management practices by the producer.
    ``(e) Cost-Share Payments, Incentive Payments, and 
Technical Assistance.--
            ``(1) Cost-share payments.--
                    ``(A) In general.--The Federal share of 
                cost-share payments to a producer proposing to 
                implement 1 or more structural practices shall 
                be not more than 75 percent of the projected 
                cost of the practice, as determined by the 
                Secretary, taking into consideration any 
                payment received by the producer from a State 
                or local government.
                    ``(B) Limitation.--A producer who owns or 
                operates a large confined livestock operation 
                (as defined by the Secretary) shall not be 
                eligible for cost-share payments to construct 
                an animal waste management facility.
                    ``(C) Other payments.--A producer shall not 
                be eligible for cost-share payments for 
                structural practices on eligible land under 
                this chapter if the producer receives cost-
                share payments or other benefits for the same 
                land under chapter 1 or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate 
        determined by the Secretary to be necessary to 
        encourage a producer to perform 1 or more land 
        management practices.
            ``(3) Technical assistance.--
                    ``(A) Funding.--The Secretary shall 
                allocate funding under this chapter for the 
                provision of technical assistance according to 
                the purpose and projected cost for which the 
                technical assistance is provided for a fiscal 
                year. The allocated amount may vary according 
                to the type of expertise required, quantity of 
                time involved, and other factors as determined 
                appropriate by the Secretary. Funding shall not 
                exceed the projected cost to the Secretary of 
                the technical assistance provided for a fiscal 
                year.
                    ``(B) Other authorities.--The receipt of 
                technical assistance under this chapter shall 
                not affect the eligibility of the producer to 
                receive technical assistance under other 
                authorities of law available to the Secretary.
                    ``(C) Private sources.--The Secretary shall 
                ensure that the processes of writing and 
                developing proposals and plans for contracts 
                under this chapter, and of assisting in the 
                implementation of structural practices and land 
                management practices covered by the contracts, 
                are open to individuals in agribusiness, 
                including agricultural producers, 
                representatives from agricultural cooperatives, 
                agricultural input retail dealers, and 
                certified crop advisers. The requirements of 
                this subparagraph shall also apply to any other 
                conservation program of the Department of 
                Agriculture that provides incentive payments, 
                technical assistance, or cost-share payments.
    ``(f) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The 
        Secretary may modify or terminate a contract entered 
        into with a producer under this chapter if--
                    ``(A) the producer agrees to the 
                modification or termination; and
                    ``(B) the Secretary determines that the 
                modification or termination is in the public 
                interest.
            ``(2) Involuntary termination.--The Secretary may 
        terminate a contract under this chapter if the 
        Secretary determines that the producer violated the 
        contract.
    ``(g) Non-Federal Assistance.--The Secretary may request 
the services of a State water quality agency, State fish and 
wildlife agency, State forestry agency, or any other 
governmental or private resource considered appropriate to 
assist in providing the technical assistance necessary for the 
development and implementation of a structural practice or land 
management practice.

``SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

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

``SEC. 1240D. DUTIES OF PRODUCERS.

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

``SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

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

``SEC. 1240F. DUTIES OF THE SECRETARY.

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

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``(a) In General.--The total amount of cost-share and 
incentive payments paid to a producer under this chapter may 
not exceed--
            ``(1) $10,000 for any fiscal year; or
            ``(2) $50,000 for any multiyear contract.
    ``(b) Exception to Annual Limit.--The Secretary may exceed 
the limitation on the annual amount of a payment under 
subsection (a)(1) on a case-by-case basis if the Secretary 
determines that a larger payment is--
            ``(1) essential to accomplish the land management 
        practice or structural practice for which the payment 
        is made; and
            ``(2) consistent with the maximization of 
        environmental benefits per dollar expended and the 
        purposes of this chapter specified in section 1240.
    ``(c) Timing of Expenditures.--Expenditures under a 
contract entered into under this chapter during a fiscal year 
may not be made by the Secretary until the subsequent fiscal 
year.

``SEC. 1240H. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY 
                    INCENTIVES PROGRAM.

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

SEC. 335. CONSERVATION FARM OPTION.

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

                 ``CHAPTER 5--CONSERVATION FARM OPTION

``SEC. 1240M. CONSERVATION FARM OPTION.

    ``(a) In General.--The Secretary shall establish 
conservation farm option pilot programs for producers of wheat, 
feed grains, cotton, and rice.
    ``(b) Eligible Owners and Producers.--An owner or producer 
with a farm that has contract acreage enrolled in the 
agricultural market transition program established under the 
Agricultural Market Transition Act shall be eligible to 
participate in the conservation farm option offered under a 
pilot program under subsection (a) if the owner or producer 
meets the conditions established under section (e).
    ``(c) Purposes.--The purposes of the conservation farm 
option pilot programs shall include--
            ``(1) conservation of soil, water, and related 
        resources;
            ``(2) water quality protection or improvement;
            ``(3) wetland restoration, protection, and 
        creation;
            ``(4) wildlife habitat development and protection; 
        or
            ``(5) other similar conservation purposes.
    ``(d) Conservation Farm Plan.--
            ``(1) In general.--To be eligible to enter into a 
        conservation farm option contract, an owner or producer 
        must prepare and submit to the Secretary, for approval, 
        a conservation farm plan that shall become a part of 
        the conservation farm option contract.
            ``(2) Requirements.--A conservation farm plan 
        shall--
                    ``(A) describe the resource-conserving crop 
                rotations, and all other conservation 
                practices, to be implemented and maintained on 
                the acreage that is subject to contract during 
                the contract period;
                    ``(B) contain a schedule for the 
                implementation and maintenance of the practices 
                described in the conservation farm plan;
                    ``(C) comply with highly erodible land and 
                wetland conservation requirements of this 
                title; and
                    ``(D) contain such other terms as the 
                Secretary may require.
    ``(e) Contracts.--
            ``(1) In general.--On approval of a conservation 
        farm plan, the Secretary may enter into a contract with 
        the owner or producer that specifies the acres being 
        enrolled and the practices being adopted.
            ``(2) Duration of contract.--The contract shall be 
        for a period of 10 years. The contract may be renewed 
        for a period of not to exceed 5 years on mutual 
        agreement of the Secretary and the owner or producer.
            ``(3) Consideration.--In exchange for payments 
        under this subsection, the owner or producer shall not 
        participate in and shall forgo payments under--
                    ``(A) the conservation reserve program 
                established under subchapter B of chapter 1;
                    ``(B) the wetlands reserve program 
                established under subchapter C of chapter 1; 
                and
                    ``(C) the environmental quality incentives 
                program established under chapter 4.
            ``(4) Owner or producer responsibilities under the 
        agreement.--Under the terms of the contract entered 
        into under this section, an owner or producer shall 
        agree to--
                    ``(A) actively comply with the terms and 
                conditions of the approved conservation farm 
                plan;
                    ``(B) keep such records as the Secretary 
                may reasonably require for purposes of 
                evaluation of the implementation of the 
                conservation farm plan; and
                    ``(C) not engage in any activity that would 
                defeat the purposes of the conservation farm 
                option pilot program.
            ``(5) Payments.--The Secretary shall offer an owner 
        or producer annual payments under the contract that are 
        equivalent to the payments the owner or producer would 
        have received under the conservation reserve program, 
        the wetlands reserve program, and the environmental 
        quality incentives program.
            ``(6) Balance of benefits.--The Secretary shall not 
        permit an owner or producer to terminate a conservation 
        reserve program contract and enter a conservation farm 
        option contract if the Secretary determines that such 
        action will reduce net environmental benefits.
    ``(f) Secretarial Determinations.--
            ``(1) Acreage estimates.--Prior to each year during 
        which the Secretary intends to offer conservation 
        reserve program contracts, the Secretary shall estimate 
        the number of acres that--
                    ``(A) will be retired under the 
                conservation farm option under the terms and 
                conditions the Secretary intends to offer for 
                that program; and
                    ``(B) would be retired under the 
                conservation reserve program if the 
                conservation farm option were not available.
            ``(2) Total land retirement.--The Secretary shall 
        announce a number of acres to be enrolled in the 
        conservation reserve program that will result in a 
        total number of acres retired under the conservation 
        reserve program and the conservation farm option that 
        does not exceed the amount estimated under paragraph 
        (1)(B) for the current or future years.
            ``(3) Limitation.--The Secretary shall not enroll 
        additional conservation reserve program contracts to 
        offset the land retired under the conservation farm 
        option.
    ``(g) Commodity Credit Corporation.--The Secretary shall 
use the funds, authorities, and facilities of the Commodity 
Credit Corporation to carry out this subsection.
    ``(h) Funding.--Of the funds of the Commodity Credit 
Corporation, the Corporation shall make available to carry out 
this section--
            ``(1) $7,500,000 for fiscal year 1997;
            ``(2) $15,000,000 for fiscal year 1998;
            ``(3) $25,000,000 for fiscal year 1999;
            ``(4) $37,500,000 for fiscal year 2000;
            ``(5) $50,000,000 for fiscal year 2001; and
            ``(6) $62,500,000 for fiscal year 2002.''.

SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Agricultural Conservation Program.--
            (1) Elimination.--
                    (A) Section 8 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590h) is 
                amended--
                            (i) in subsection (b)--
                                    (I) by striking paragraphs 
                                (1) through (4) and inserting 
                                the following:
            ``(1) Environmental quality incentives program.--
        The Secretary shall provide technical assistance, cost-
        share payments, and incentive payments to operators 
        through the environmental quality incentives program in 
        accordance with chapter 4 of subtitle D of title XII of 
        the Food Security Act of 1985.''; and
                                    (II) by striking paragraphs 
                                (6) through (8); and
                            (ii) by striking subsections (d), 
                        (e), and (f).
                    (B) The first sentence of section 11 of the 
                Soil Conservation and Domestic Allotment Act 
                (16 U.S.C. 590k) is amended by striking 
                ``performance: Provided further,'' and all that 
                follows through ``or other law'' and inserting 
                ``performance''.
                    (C) Section 14 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590n) is 
                amended--
                            (i) in the first sentence, by 
                        striking ``or 8''; and
                            (ii) by striking the second 
                        sentence.
                    (D) Section 15 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590o) is 
                amended--
                            (i) in the first undesignated 
                        paragraph--
                                    (I) in the first sentence, 
                                by striking ``sections 7 and 
                                8'' and inserting ``section 
                                7''; and
                                    (II) by striking the third 
                                sentence; and
                            (ii) by striking the second 
                        undesignated paragraph.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of the last proviso of 
                the matter under the heading ``conservation 
                reserve program'' under the heading ``Soil Bank 
                Programs'' of title I of the Department of 
                Agriculture and Farm Credit Administration 
                Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 
                1831a), is amended by striking ``Agricultural 
                Conservation Program'' and inserting 
                ``environmental quality incentives program 
                established under chapter 4 of subtitle D of 
                title XII of the Food Security Act of 1985''.
                    (B) Section 4 of the Cooperative Forestry 
                Assistance Act of 1978 (16 U.S.C. 2103) is 
                amended by striking ``as added by the 
                Agriculture and Consumer Protection Act of 
                1973'' each place it appears in subsections (d) 
                and (i) and inserting ``as in effect before the 
                amendment made by section 336(d)(1) of the 
                Federal Agriculture Improvement and Reform Act 
                of 1996''.
                    (C) Section 226(b)(4) of the Department of 
                Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6932(b)(4)) is amended by striking ``and 
                the agricultural conservation program under the 
                Soil Conservation and Domestic Allotment Act 
                (16 U.S.C. 590g et seq.)''.
                    (D) Section 246(b)(8) of the Department of 
                Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6962(b)(8)) is amended by striking ``and 
                the agricultural conservation program under the 
                Soil Conservation and Domestic Allotment Act 
                (16 U.S.C. 590g et seq.)''.
                    (E) Section 1271(c)(3)(C) of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990 (16 U.S.C. 2106a(c)(3)(C)) is amended by 
                striking ``Agricultural Conservation Program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 
                U.S.C. 590h, 590l, or 590p)'' and inserting 
                ``environmental quality incentives program 
                established under chapter 4 of subtitle D of 
                title XII of the Food Security Act of 1985''.
                    (F) Section 304(a) of the Lake Champlain 
                Special Designation Act of 1990 (Public Law 
                101-596; 33 U.S.C. 1270 note) is amended--
                            (i) in the subsection heading, by 
                        striking ``Special Project Area Under 
                        the Agricultural Conservation Program'' 
                        and inserting ``Priority Area Under the 
                        Environmental Quality Incentives 
                        Program''; and
                            (ii) in paragraph (1), by striking 
                        ``special project area under the 
                        Agricultural Conservation Program 
                        established under section 8(b) of the 
                        Soil Conservation and Domestic 
                        Allotment Act (16 U.S.C. 590h(b))'' and 
                        inserting ``priority area under the 
                        environmental quality incentives 
                        program established under chapter 4 of 
                        subtitle D of title XII of the Food 
                        Security Act of 1985''.
                    (G) Section 6 of the Department of 
                Agriculture Organic Act of 1956 (70 Stat. 1033) 
                is amended by striking subsection (b).
    (b) Great Plains Conservation Program.--
            (1) Elimination.--Section 16 of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 
        590p) is repealed.
            (2) Conforming amendments.--
                    (A) The Agricultural Adjustment Act of 1938 
                is amended by striking ``Great Plains program'' 
                each place it appears in sections 344(f)(8) and 
                377 (7 U.S.C. 1344(f)(8) and 1377) and 
                inserting ``environmental quality incentives 
                program established under chapter 4 of subtitle 
                D of title XII of the Food Security Act of 
                1985''.
                    (B) Section 246(b) of the Department of 
                Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6962(b)) is amended by striking 
                paragraph (2).
    (c) Colorado River Basin Salinity Control Program.--
            (1) In general.--Section 202 of the Colorado River 
        Basin Salinity Control Act (43 U.S.C. 1592) is amended 
        by striking subsection (c) and inserting the following:
    ``(c) Salinity Control Measures.--The Secretary of 
Agriculture shall carry out salinity control measures 
(including watershed enhancement and cost-share measures with 
livestock and crop producers) in the Colorado River Basin as 
part of the environmental quality incentives program 
established under chapter 4 of subtitle D of title XII of the 
Food Security Act of 1985.''.
            (2) Funds.--Section 205 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1595) is amended--
                    (A) in subsection (a), by striking 
                ``pursuant to section 202(c)(2)(C)''; and
                    (B) by adding at the end the following:
    ``(f) Funds.--The Secretary may expend funds available in 
the Basin Funds referred to in this section to carry out cost-
share salinity measures in a manner that is consistent with the 
cost allocations required under this section.''.
            (3) Conforming amendment.--Section 246(b)(6) of the 
        Department of Agriculture Reorganization Act of 1994 (7 
        U.S.C. 6962(b)(6)) is amended by striking ``program'' 
        and inserting ``measures''.
    (d) Rural Environmental Conservation Program.--
            (1) Elimination.--Title X of the Agricultural Act 
        of 1970 (16 U.S.C. 1501 et seq.) is repealed.
            (2) Conforming amendments.--Section 246 of the 
        Department of Agriculture Reorganization Act of 1994 (7 
        U.S.C. 6962) (as amended by subsection (b)(2)(B))) is 
        amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (1); and
                            (ii) by redesignating paragraphs 
                        (3) through (8) as paragraphs (1) 
                        through (6), respectively; and
                    (B) in subsection (c), by striking ``(2), 
                (3), (4), and (6)'' and inserting ``(1), (2), 
                and (4)''.
    (e) Other Conservation Provisions.--Subtitle F of title XII 
of the Food Security Act of 1985 (16 U.S.C. 2005a and 2101 
note) is repealed.
    (f) Resource Conservation.--
            (1) Elimination.--Subtitles A, B, D, E, and F of 
        title XV of the Agriculture and Food Act of 1981 (95 
        Stat. 1328; 16 U.S.C. 3401 et seq.) are repealed.
            (2) Conforming amendment.--Section 739 of the 
        Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations 
        Act, 1992 (7 U.S.C. 2272a), is repealed.
    (g) Technical Amendment.--The first sentence of the matter 
under the heading ``Commodity Credit Corporation'' of Public 
Law 99-263 (100 Stat. 59; 16 U.S.C. 3841 note) is amended by 
striking ``prices: Provided further,'' and all that follows 
through ``Acts.'' and inserting ``prices.''.
    (h) Agricultural Water Quality Incentives Program.--Chapter 
2 of subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3838 et seq.) is repealed.

          Subtitle E--Conservation Funding and Administration

SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.

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

                ``Subtitle E--Funding and Administration

``SEC. 1241. FUNDING.

    ``(a) Mandatory Expenses.--For each of fiscal years 1996 
through 2002, the Secretary shall use the funds of the 
Commodity Credit Corporation to carry out the programs 
authorized by--
            ``(1) subchapter B of chapter 1 of subtitle D 
        (including contracts extended by the Secretary pursuant 
        to section 1437 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 
        3831 note));
            ``(2) subchapter C of chapter 1 of subtitle D; and
            ``(3) chapter 4 of subtitle D.
    ``(b) Environmental Quality Incentives Program.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available 
        $130,000,000 for fiscal year 1996, and $200,000,000 for 
        each of fiscal years 1997 through 2002, for providing 
        technical assistance, cost-share payments, incentive 
        payments, and education under the environmental quality 
        incentives program under chapter 4 of subtitle D.
            ``(2) Livestock production.--For each of fiscal 
        years 1996 through 2002, 50 percent of the funding 
        available for technical assistance, cost-share 
        payments, incentive payments, and education under the 
        environmental quality incentives program shall be 
        targeted at practices relating to livestock production.

``SEC. 1242. USE OF OTHER AGENCIES.

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

``SEC. 1243. ADMINISTRATION.

    ``(a) Plans.--The Secretary shall, to the extent 
practicable, avoid duplication in--
            ``(1) the conservation plans required for--
                    ``(A) highly erodible land conservation 
                under subtitle B;
                    ``(B) the conservation reserve program 
                established under subchapter B of chapter 1 of 
                subtitle D; and
                    ``(C) the wetlands reserve program 
                established under subchapter C of chapter 1 of 
                subtitle D; and
            ``(2) the environmental quality incentives program 
        established under chapter 4 of subtitle D.
    ``(b) Acreage Limitation.--
            ``(1) In general.--The Secretary shall not enroll 
        more than 25 percent of the cropland in any county in 
        the programs administered under the conservation 
        reserve and wetlands reserve programs established under 
        subchapters B and C, respectively, of chapter 1 of 
        subtitle D. Not more than 10 percent of the cropland in 
        a county may be subject to an easement acquired under 
        the subchapters.
            ``(2) Exception.--The Secretary may exceed the 
        limitations in paragraph (1) if the Secretary 
        determines that--
                    ``(A) the action would not adversely affect 
                the local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Shelterbelts and windbreaks.--The limitations 
        established under this subsection shall not apply to 
        cropland that is subject to an easement under chapter 1 
        or 3 of subtitle D that is used for the establishment 
        of shelterbelts and windbreaks.
    ``(c) Tenant Protection.--Except for a person who is a 
tenant on land that is subject to a conservation reserve 
contract that has been extended by the Secretary, the Secretary 
shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers, including provision for sharing, on 
a fair and equitable basis, in payments under the programs 
established under subtitles B through D.
    ``(d) Provision of Technical Assistance by Other Sources.--
In the preparation and application of a conservation compliance 
plan under subtitle B or similar plan required as a condition 
for assistance from the Department of Agriculture, the 
Secretary shall permit persons to secure technical assistance 
from approved sources, as determined by the Secretary, other 
than the Natural Resources Conservation Service. If the 
Secretary rejects a technical determination made by such a 
source, the basis of the Secretary's determination must be 
supported by documented evidence.
    ``(e) Regulations.--Not later than 90 days after the date 
of enactment of the Federal Agriculture Improvement and Reform 
Act of 1996, the Secretary shall issue regulations to implement 
the conservation reserve and wetlands reserve programs 
established under chapter 1 of subtitle D.''.

SEC. 342. STATE TECHNICAL COMMITTEES.

    (a) Composition.--Section 1261(c) of the Food Security Act 
of 1985 (16 U.S.C. 3861(c))--
            (1) in paragraph (7), by striking ``and'' at the 
        end;
            (2) in paragraph (8), by striking the period at the 
        end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) agricultural producers with demonstrable 
        conservation expertise;
            ``(10) nonprofit organizations with demonstrable 
        conservation expertise;
            ``(11) persons knowledgeable about conservation 
        techniques; and
            ``(12) agribusiness.''.
    (b) Responsibilities.--Section 1262 of the Food Security 
Act of 1985 (16 U.S.C. 3862) is amended--
            (1) in subsection (a), by adding at the end the 
        following: ``Each State technical committee shall 
        provide public notice of, and permit public attendance 
        at meetings considering, issues of concern related to 
        carrying out this title.'';
            (2) in subsection (b)(1), by adding at the end the 
        following: ``Each State technical committee shall 
        establish criteria and guidelines for evaluating 
        petitions by agricultural producers regarding new 
        conservation practices and systems not already 
        described in field office technical guides.''; and
            (3) in subsection (c)--
                    (A) in paragraph (7), by striking ``and'' 
                at the end;
                    (B) by redesignating paragraph (8) as 
                paragraph (9); and
                    (C) by inserting after paragraph (7) the 
                following:
            ``(8) establishing criteria and priorities for 
        State initiatives under the environmental quality 
        incentives program under chapter 4 of subtitle D; 
        and''.

SEC. 343. PUBLIC NOTICE AND COMMENT FOR REVISIONS TO CERTAIN STATE 
                    TECHNICAL GUIDES.

    After the date of enactment of this Act, the Secretary of 
Agriculture shall provide for public notice and comment under 
section 553 of title 5, United States Code, with regard to any 
future revisions to those provisions of the Natural Resources 
Conservation Service State technical guides that are used to 
carry out subtitles A, B, and C of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3801 et seq.).

     Subtitle F--National Natural Resources Conservation Foundation

SEC. 351. SHORT TITLE.

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

SEC. 352. DEFINITIONS.

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

SEC. 353. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

    (a) Establishment.--A National Natural Resources 
Conservation Foundation is established as a charitable and 
nonprofit corporation for charitable, scientific, and 
educational purposes specified in subsection (b). The 
Foundation is not an agency or instrumentality of the United 
States.
    (b) Duties.--The Foundation shall--
            (1) promote innovative solutions to the problems 
        associated with the conservation of natural resources 
        on private lands, particularly with respect to 
        agriculture and soil and water conservation;
            (2) promote voluntary partnerships between 
        government and private interests in the conservation of 
        natural resources;
            (3) conduct research and undertake educational 
        activities, conduct and support demonstration projects, 
        and make grants to State and local agencies and 
        nonprofit organizations;
            (4) provide such other leadership and support as 
        may be necessary to address conservation challenges, 
        such as the prevention of excessive soil erosion, the 
        enhancement of soil and water quality, and the 
        protection of wetlands, wildlife habitat, and 
        strategically important farmland subject to urban 
        conversion and fragmentation;
            (5) encourage, accept, and administer private gifts 
        of money and real and personal property for the benefit 
        of, or in connection with, the conservation and related 
        activities and services of the Department, particularly 
        the Natural Resources Conservation Service;
            (6) undertake, conduct, and encourage educational, 
        technical, and other assistance, and other activities, 
        that support the conservation and related programs 
        administered by the Department (other than activities 
        carried out on National Forest System lands), 
        particularly the Natural Resources Conservation 
        Service, except that the Foundation may not enforce or 
        administer a regulation of the Department; and
            (7) raise private funds to promote the purposes of 
        the Foundation.
    (c) Limitations and Conflicts of Interest.--
            (1) Political activities.--The Foundation shall not 
        participate or intervene in a political campaign on 
        behalf of any candidate for public office.
            (2) Conflicts of interest.--No director, officer, 
        or employee of the Foundation shall participate, 
        directly or indirectly, in the consideration or 
        determination of any question before the Foundation 
        affecting--
                    (A) the financial interests of the 
                director, officer, or employee; or
                    (B) the interests of any corporation, 
                partnership, entity, organization, or other 
                person in which the director, officer, or 
                employee--
                            (i) is an officer, director, or 
                        trustee; or
                            (ii) has any direct or indirect 
                        financial interest.
            (3) Legislation or government action or policy.--No 
        funds of the Foundation may be used in any manner for 
        the purpose of influencing legislation or government 
        action or policy.
            (4) Litigation.--No funds of the Foundation may be 
        used to bring or join an action against the United 
        States.

SEC. 354. COMPOSITION AND OPERATION.

    (a) Composition.--The Foundation shall be administered by a 
Board of Trustees that shall consist of 9 voting members, each 
of whom shall be a United States citizen and not a Federal 
officer. The Board shall be composed of--
            (1) individuals with expertise in agricultural 
        conservation policy matters;
            (2) a representative of private sector 
        organizations with a demonstrable interest in natural 
        resources conservation;
            (3) a representative of statewide conservation 
        organizations;
            (4) a representative of soil and water conservation 
        districts;
            (5) a representative of organizations outside the 
        Federal Government that are dedicated to natural 
        resources conservation education; and
            (6) a farmer or rancher.
    (b) Nongovernmental Employees.--Service as a member of the 
Board shall not constitute employment by, or the holding of, an 
office of the United States for the purposes of any Federal 
law.
    (c) Membership.--
            (1) Initial members.--The Secretary shall appoint 9 
        persons who meet the criteria established under 
        subsection (a) as the initial members of the Board and 
        designate 1 of the members as the initial chairperson 
        for a 2-year term.
            (2) Terms of office.--
                    (A) In general.--A member of the Board 
                shall serve for a term of 3 years, except that 
                the members appointed to the initial Board 
                shall serve, proportionately, for terms of 1, 
                2, and 3 years, as determined by the Secretary.
                    (B) Limitation on terms.--No individual may 
                serve more than 2 consecutive 3-year terms as a 
                member of the Board.
            (3) Subsequent members.--The initial members of the 
        Board shall adopt procedures in the constitution of the 
        Foundation for the nomination and selection of 
        subsequent members of the Board. The procedures shall 
        require that each member, at a minimum, meets the 
        criteria established under subsection (a) and shall 
        provide for the selection of an individual, who is not 
        a Federal officer or a member of the Board.
    (d) Chairperson.--After the appointment of an initial 
chairperson under subsection (c)(1), each succeeding 
chairperson of the Board shall be elected by the members of the 
Board for a 2-year term.
    (e) Vacancies.--A vacancy on the Board shall be filled by 
the Board not later than 60 days after the occurrence of the 
vacancy.
    (f) Compensation.--A member of the Board shall receive no 
compensation from the Foundation for the service of the member 
on the Board.
    (g) Travel Expenses.--While away from the home or regular 
place of business of a member of the Board in the performance 
of services for the Board, the member shall be allowed travel 
expenses paid by the Foundation, including per diem in lieu of 
subsistence, at the same rate as a person employed 
intermittently in the Government service is allowed under 
section 5703 of title 5, United States Code.

SEC. 355. OFFICERS AND EMPLOYEES.

    (a) In General.--The Board may--
            (1) appoint, hire, and discharge the officers and 
        employees of the Foundation, other than appoint the 
        initial Executive Director of the Foundation;
            (2) adopt a constitution and bylaws for the 
        Foundation that are consistent with the purposes of 
        this subtitle; and
            (3) undertake any other activities that may be 
        necessary to carry out this subtitle.
    (b) Officers and Employees.--
            (1) Appointment and hiring.--An officer or employee 
        of the Foundation--
                    (A) shall not, by virtue of the appointment 
                or employment of the officer or employee, be 
                considered a Federal employee for any purpose, 
                including the provisions of title 5, United 
                States Code, governing appointments in the 
                competitive service, except that such an 
                individual may participate in the Federal 
                employee retirement system as if the individual 
                were a Federal employee; and
                    (B) may not be paid by the Foundation a 
                salary in excess of $125,000 per year.
            (2) Executive director.--
                    (A) Initial director.--The Secretary shall 
                appoint an individual to serve as the initial 
                Executive Director of the Foundation who shall 
                serve, at the direction of the Board, as the 
                chief operating officer of the Foundation.
                    (B) Subsequent directors.--The Board shall 
                appoint each subsequent Executive Director of 
                the Foundation who shall serve, at the 
                direction of the Board, as the chief operating 
                officer of the Foundation.
                    (C) Qualifications.--The Executive Director 
                shall be knowledgeable and experienced in 
                matters relating to natural resources 
                conservation.

SEC. 356. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

    (a) In General.--The Foundation--
            (1) may conduct business throughout the United 
        States and the territories and possessions of the 
        United States; and
            (2) shall at all times maintain a designated agent 
        who is authorized to accept service of process for the 
        Foundation, so that the serving of notice to, or 
        service of process on, the agent, or mailed to the 
        business address of the agent, shall be considered as 
        service on or notice to the Foundation.
    (b) Seal.--The Foundation shall have an official seal 
selected by the Board that shall be judicially noticed.
    (c) Powers.--To carry out the purposes of the Foundation 
under section 353(b), the Foundation shall have, in addition to 
the powers otherwise provided under this subtitle, the usual 
powers of a corporation, including the power--
            (1) to accept, receive, solicit, hold, administer, 
        and use any gift, devise, or bequest, either absolutely 
        or in trust, of real or personal property or any income 
        from, or other interest in, the gift, devise, or 
        bequest;
            (2) to acquire by purchase or exchange any real or 
        personal property or interest in property, except that 
        funds provided under section 360 may not be used to 
        purchase an interest in real property;
            (3) unless otherwise required by instrument of 
        transfer, to sell, donate, lease, invest, reinvest, 
        retain, or otherwise dispose of any property or income 
        from property;
            (4) to borrow money from private sources and issue 
        bonds, debentures, or other debt instruments, subject 
        to section 359, except that the aggregate amount of the 
        borrowing and debt instruments outstanding at any time 
        may not exceed $1,000,000;
            (5) to sue and be sued, and complain and defend 
        itself, in any court of competent jurisdiction, except 
        that a member of the Board shall not be personally 
        liable for an action in the performance of services for 
        the Board, except for gross negligence;
            (6) to enter into a contract or other agreement 
        with an agency of State or local government, 
        educational institution, or other private organization 
        or person and to make such payments as may be necessary 
        to carry out the functions of the Foundation; and
            (7) to do any and all acts that are necessary to 
        carry out the purposes of the Foundation.
    (d) Interests in Property.--
            (1) Interests in real property.--The Foundation may 
        acquire, hold, and dispose of lands, waters, or other 
        interests in real property by donation, gift, devise, 
        purchase, or exchange. An interest in real property 
        shall be treated, among other things, as including an 
        easement or other right for the preservation, 
        conservation, protection, or enhancement of 
        agricultural, natural, scenic, historic, scientific, 
        educational, inspirational, or recreational resources.
            (2) Gifts.--A gift, devise, or bequest may be 
        accepted by the Foundation even though the gift, 
        devise, or bequest is encumbered, restricted, or 
        subject to a beneficial interest of a private person if 
        any current or future interest in the gift, devise, or 
        bequest is for the benefit of the Foundation.

SEC. 357. ADMINISTRATIVE SERVICES AND SUPPORT.

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

SEC. 358. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUITABLE RELIEF.

    (a) Audits.--
            (1) In general.--The accounts of the Foundation 
        shall be audited in accordance with Public Law 88-504 
        (36 U.S.C. 1101 et seq.), including an audit of 
        lobbying and litigation activities carried out by the 
        Foundation.
            (2) Conforming amendment.--The first section of 
        Public Law 88-504 (36 U.S.C. 1101) is amended by adding 
        at the end the following:
            ``(77) The National Natural Resources Conservation 
        Foundation.''.
    (b) Relief With Respect to Certain Foundation Acts or 
Failure To Act.--The Attorney General may petition in the 
United States District Court for the District of Columbia for 
such equitable relief as may be necessary or appropriate, if 
the Foundation--
            (1) engages in, or threatens to engage in, any act, 
        practice, or policy that is inconsistent with this 
        subtitle; or
            (2) refuses, fails, neglects, or threatens to 
        refuse, fail, or neglect, to discharge the obligations 
        of the Foundation under this subtitle.

SEC. 359. RELEASE FROM LIABILITY.

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

SEC. 360. AUTHORIZATION OF APPROPRIATIONS.

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

                          Subtitle G--Forestry

SEC. 371. OFFICE OF INTERNATIONAL FORESTRY.

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

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

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

SEC. 373. FORESTRY INCENTIVES PROGRAM.

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

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

    Section 7 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103c) is amended--
            (1) by redesignating subsection (l) as subsection 
        (m); and
            (2) by inserting after subsection (k) the 
        following:
    ``(l) Optional State Grants.--
            ``(1) In general.--The Secretary shall, at the 
        request of a participating State, provide a grant to 
        the State to carry out the Forest Legacy Program in the 
        State.
            ``(2) Administration.--If a State elects to receive 
        a grant under this subsection--
                    ``(A) the Secretary shall use a portion of 
                the funds made available under subsection (m), 
                as determined by the Secretary, to provide a 
                grant to the State; and
                    ``(B) the State shall use the grant to 
                carry out the Forest Legacy Program in the 
                State, including the acquisition by the State 
                of lands and interests in lands.''.

           Subtitle H--Miscellaneous Conservation Provisions

SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT CORPORATION.

    (a) In General.--Section 5 of the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714c) is amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the 
        following:
    ``(g) Carry out conservation or environmental programs 
authorized by law.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall become effective on January 1, 1997.

SEC. 382. FLOODPLAIN EASEMENTS.

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

SEC. 383. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

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

SEC. 384. REPEAL OF REPORT REQUIREMENT.

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

SEC. 385. FLOOD RISK REDUCTION.

    (a) In General.--During fiscal years 1996 through 2002, the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may enter into a contract with a producer on a 
farm who has contract acreage under the Agricultural Market 
Transition Act that is frequently flooded.
    (b) Duties of Producers.--Under the terms of the contract, 
with respect to acres that are subject to the contract, the 
producer must agree to--
            (1) the termination of any contract acreage and 
        production flexibility contract under the Agricultural 
        Market Transition Act;
            (2) forgo loans for contract commodities, oilseeds, 
        and extra long staple cotton;
            (3) not apply for crop insurance issued or 
        reinsured by the Secretary;
            (4) comply with applicable highly erodible land and 
        wetlands conservation compliance requirements 
        established under title XII of the Food Security Act of 
        1985 (16 U.S.C. 3801 et seq.);
            (5) not apply for any conservation program payments 
        from the Secretary;
            (6) not apply for disaster program benefits 
        provided by the Secretary; and
            (7) refund the payments, with interest, issued 
        under the flood risk reduction contract to the 
        Secretary, if the producer violates the terms of the 
        contract or if the producer transfers the property to 
        another person who violates the contract.
    (c) Duties of the Secretary.--In return for a contract 
entered into by a producer under this section, the Secretary 
shall pay the producer an amount that is not more than 95 
percent of projected contract payments under the Agricultural 
Market Transition Act that the Secretary estimates the producer 
would otherwise have received during the period beginning at 
the time the contract is entered into under this section and 
ending September 30, 2002.
    (d) Commodity Credit Corporation.--The Secretary shall 
carry out the program authorized by this section (other than 
subsection (e)) through the Commodity Credit Corporation.
    (e) Additional Payments.--
            (1) In general.--Subject to the availability of 
        advanced appropriations, the Secretary may make 
        payments to a producer described in subsection (a), in 
        addition to the payments provided under subsection (c), 
        to offset other estimated Federal Government outlays on 
        frequently flooded land.
            (2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out paragraph (1).
    (f) Limitation on Payments.--Amounts made available for 
production flexibility contracts under section 113 shall be 
reduced by an amount that is equal to the contract payments 
that producers forgo under subsection (b)(1) of this section.

SEC. 386. CONSERVATION OF PRIVATE GRAZING LAND.

    (a) Findings.--Congress finds that--
            (1) private grazing land constitutes nearly \1/2\ 
        of the non-Federal land of the United States and is 
        basic to the environmental, social, and economic 
        stability of rural communities;
            (2) private grazing land contains a complex set of 
        interactions among soil, water, air, plants, and 
        animals;
            (3) grazing land constitutes the single largest 
        watershed cover type in the United States and 
        contributes significantly to the quality and quantity 
        of water available for all of the many uses of the 
        land;
            (4) private grazing land constitutes the most 
        extensive wildlife habitat in the United States;
            (5) private grazing land can provide opportunities 
        for improved nutrient management from land application 
        of animal manures and other by-product nutrient 
        resources;
            (6) owners and managers of private grazing land 
        need to continue to recognize conservation problems 
        when the problems arise and receive sound technical 
        assistance to improve or conserve grazing land 
        resources to meet ecological and economic demands;
            (7) new science and technology must continually be 
        made available in a practical manner so owners and 
        managers of private grazing land may make informed 
        decisions concerning vital grazing land resources;
            (8) agencies of the Department with private grazing 
        land responsibilities are the agencies that have the 
        expertise and experience to provide technical 
        assistance, education, and research to owners and 
        managers of private grazing land for the long-term 
        productivity and ecological health of grazing land;
            (9) although competing demands on private grazing 
        land resources are greater than ever before, assistance 
        to private owners and managers of private grazing land 
        is currently limited and does not meet the demand and 
        basic need for adequately sustaining or enhancing the 
        private grazing land resources; and
            (10) private grazing land can be enhanced to 
        provide many benefits to all citizens of the United 
        States through voluntary cooperation among owners and 
        managers of the land, local conservation districts, and 
        the agencies of the Department responsible for 
        providing assistance to owners and managers of land and 
        to conservation districts.
    (b) Purpose.--It is the purpose of this section to 
authorize the Secretary to provide a coordinated technical, 
educational, and related assistance program to conserve and 
enhance private grazing land resources and provide related 
benefits to all citizens of the United States by--
            (1) establishing a coordinated and cooperative 
        Federal, State, and local grazing conservation program 
        for management of private grazing land;
            (2) strengthening technical, educational, and 
        related assistance programs that provide assistance to 
        owners and managers of private grazing land;
            (3) conserving and improving wildlife habitat on 
        private grazing land;
            (4) conserving and improving fish habitat and 
        aquatic systems through grazing land conservation 
        treatment;
            (5) protecting and improving water quality;
            (6) improving the dependability and consistency of 
        water supplies;
            (7) identifying and managing weed, noxious weed, 
        and brush encroachment problems on private grazing 
        land; and
            (8) integrating conservation planning and 
        management decisions by owners and managers of private 
        grazing land, on a voluntary basis.
    (c) Definitions.--In this section:
            (1) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (2) Private grazing land.--The term ``private 
        grazing land'' means private, State-owned, tribally-
        owned, and any other non-federally owned rangeland, 
        pastureland, grazed forest land, and hay land.
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
    (d) Private Grazing Land Conservation Assistance.--
            (1) Assistance to grazing landowners and others.--
        Subject to the availability of appropriations for this 
        section, the Secretary shall establish a voluntary 
        program to provide technical, educational, and related 
        assistance to owners and managers of private grazing 
        land and public agencies, through local conservation 
        districts, to enable the landowners, managers, and 
        public agencies to voluntarily carry out activities 
        that are consistent with this section, including--
                    (A) maintaining and improving private 
                grazing land and the multiple values and uses 
                that depend on private grazing land;
                    (B) implementing grazing land management 
                technologies;
                    (C) managing resources on private grazing 
                land, including--
                            (i) planning, managing, and 
                        treating private grazing land 
                        resources;
                            (ii) ensuring the long-term 
                        sustainability of private grazing land 
                        resources;
                            (iii) harvesting, processing, and 
                        marketing private grazing land 
                        resources; and
                            (iv) identifying and managing weed, 
                        noxious weed, and brush encroachment 
                        problems;
                    (D) protecting and improving the quality 
                and quantity of water yields from private 
                grazing land;
                    (E) maintaining and improving wildlife and 
                fish habitat on private grazing land;
                    (F) enhancing recreational opportunities on 
                private grazing land;
                    (G) maintaining and improving the aesthetic 
                character of private grazing lands; and
                    (H) identifying the opportunities and 
                encouraging the diversification of private 
                grazing land enterprises.
            (2) Program elements.--
                    (A) Funding.--If funding is provided to 
                carry out this section, it shall be provided 
                through a specific line-item in the annual 
                appropriations for the Natural Resources 
                Conservation Service.
                    (B) Technical assistance and education.--
                Personnel of the Department trained in pasture 
                and range management shall be made available 
                under the program to deliver and coordinate 
                technical assistance and education to owners 
                and managers of private grazing land, at the 
                request of the owners and managers.
    (e) Grazing Technical Assistance Self-Help.--
            (1) Findings.--Congress finds that--
                    (A) there is a severe lack of technical 
                assistance for farmers and ranchers who graze 
                livestock;
                    (B) Federal budgetary constraints preclude 
                any significant expansion, and may force a 
                reduction of, current levels of technical 
                support; and
                    (C) farmers and ranchers have a history of 
                cooperatively working together to address 
                common needs in the promotion of their products 
                and in the drainage of wet areas through 
                drainage districts.
            (2) Establishment of grazing demonstration.--In 
        accordance with paragraph (3), the Secretary may 
        establish 2 grazing management demonstration districts 
        at the recommendation of the grazing lands conservation 
        initiative steering committee.
            (3) Procedure.--
                    (A) Proposal.--Within a reasonable time 
                after the submission of a request of an 
                organization of farmers or ranchers engaged in 
                grazing, the Secretary shall propose that a 
                grazing management district be established.
                    (B) Funding.--The terms and conditions of 
                the funding and operation of the grazing 
                management district shall be proposed by the 
                producers.
                    (C) Approval.--The Secretary shall approve 
                the proposal if the Secretary determines that 
                the proposal--
                            (i) is reasonable;
                            (ii) will promote sound grazing 
                        practices; and
                            (iii) contains provisions similar 
                        to the provisions contained in the beef 
                        promotion and research order issued 
                        under section 4 of the Beef Research 
                        and Information Act (7 U.S.C. 2903) in 
                        effect on the date of enactment of this 
                        Act.
                    (D) Area included.--The area proposed to be 
                included in a grazing management district shall 
                be determined by the Secretary on the basis of 
                a petition by farmers or ranchers.
                    (E) Authorization.--The Secretary may use 
                authority under the Agricultural Adjustment Act 
                (7 U.S.C. 601 et seq.), reenacted with 
                amendments by the Agricultural Marketing 
                Agreement Act of 1937, to operate, on a 
                demonstration basis, a grazing management 
                district.
                    (F) Activities.--The activities of a 
                grazing management district shall be 
                scientifically sound activities, as determined 
                by the Secretary in consultation with a 
                technical advisory committee composed of 
                ranchers, farmers, and technical experts.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 1996;
            (2) $40,000,000 for fiscal year 1997; and
            (3) $60,000,000 for fiscal year 1998 and each 
        subsequent fiscal year.

SEC. 387. WILDLIFE HABITAT INCENTIVES PROGRAM.

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

SEC. 388. FARMLAND PROTECTION PROGRAM.

    (a) In General.--The Secretary of Agriculture shall 
establish and carry out a farmland protection program under 
which the Secretary shall purchase conservation easements or 
other interests in not less than 170,000, nor more than 
340,000, acres of land with prime, unique, or other productive 
soil that is subject to a pending offer from a State or local 
government for the purpose of protecting topsoil by limiting 
nonagricultural uses of the land.
    (b) Conservation Plan.--Any highly erodible cropland for 
which a conservation easement or other interest is purchased 
under this section shall be subject to the requirements of a 
conservation plan that requires, at the option of the 
Secretary, the conversion of the cropland to less intensive 
uses.
    (c) Funding.--The Secretary shall use not more than 
$35,000,000 of the funds of the Commodity Credit Corporation to 
carry out this section.

SEC. 389. INTERIM MORATORIUM ON BYPASS FLOWS.

    (a) Moratorium.--There shall be an 18-month moratorium on 
any Forest Service decision to require bypass flows or any 
other relinquishment of the unimpaired use of a decreed water 
right as a condition of renewal or reissuance of a land use 
authorization permit.
    (b) Limitations.--Subsection (a) shall not affect--
            (1) obligations or authority of the Secretary of 
        Agriculture to protect public health and safety; and
            (2) obligations or authority under the Endangered 
        Species Act of 1973 (16 U.S.C. 1531 et seq.), or 
        applicable State law.
    (c) Rules of Construction.--
            (1) Existing non-federal water rights.--Nothing in 
        this section prevents or inhibits the exercise of the 
        use and operation of existing non-Federal water rights 
        on or above the National Forest land that require land 
        use authorization permits from the Forest Service to 
        access water supply facilities.
            (2) Renewal or reissuance of expiring land use 
        authorization for decreed water rights.--Nothing in 
        this section prevents or inhibits the renewal or 
        reissuance of expiring land use authorizations for 
        decreed water rights. The Forest Service may extend, as 
        needed, any expiring land use authorization for such 
        time as is necessary to incorporate the results of the 
        study authorized by subsection (d).
    (d) Study of Water Rights Across Federal Lands.--
            (1) Establishment.--Not later than 60 days after 
        the date of enactment of this Act, there shall be 
        established a Water Rights Task Force to study the 
        subjects described in paragraph (3).
            (2) Membership.--The Task Force shall be composed 
        of 7 members appointed as follows:
                    (A) 1 member shall be appointed by the 
                Secretary of Agriculture.
                    (B) 2 members shall be appointed by the 
                Speaker of the House of Representatives and 1 
                member shall be appointed by the Minority 
                Leader of the House of Representatives.
                    (C) 2 members shall be appointed by the 
                Majority Leader of the Senate and 1 member 
                shall be appointed by the Minority Leader of 
                the Senate.
            (3) Subjects to be studied.--The Task Force shall 
        study and make recommendations on--
                    (A) whether Federal water rights should be 
                acquired for environmental protection on 
                National Forest land;
                    (B) measures necessary to protect the free 
                exercise of non-Federal water rights requiring 
                easements and permits from the Forest Service;
                    (C) the protection of minimum instream 
                flows for environmental and watershed 
                management purposes on National Forest land 
                through purchases or exchanges from willing 
                sellers in accordance with State law;
                    (D) the effects of any of the 
                recommendations made under this paragraph on 
                existing State laws, regulations, and customs 
                of water usage; and
                    (E) measures that would be useful in 
                avoiding or resolving conflicts between the 
                Forest Service's responsibilities for natural 
                resource and environmental protection, the 
                public interest, and the property rights and 
                interests of water holders with special use 
                permits for water facilities, including the 
                study of the Federal acquisition of water 
                rights, dispute resolution, mitigation, and 
                compensation.
            (4) Final report.--As soon as practicable, but not 
        later than 1 year, after the date of enactment of this 
        Act, the Task Force shall provide the final report of 
        the Task Force to--
                    (A) the Secretary of Agriculture;
                    (B) the Speaker of the House of 
                Representatives;
                    (C) the President pro tempore of the 
                Senate;
                    (D) the Chairman of the Committee on 
                Agriculture of the House of Representatives;
                    (E) the Chairman of the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate;
                    (F) the Chairman of the Committee on 
                Resources of the House of Representatives; and
                    (G) the Chairman of the Committee on Energy 
                and Natural Resources of the Senate.
            (5) Authorization of funds.--The Secretary of 
        Agriculture shall use funds made available for salaries 
        and administrative expenses of the Department of 
        Agriculture to carry out this subsection.

SEC. 390. EVERGLADES ECOSYSTEM RESTORATION.

    (a) In General.--On July 1, 1996, out of any funds in the 
Treasury not otherwise appropriated, the Secretary of the 
Treasury shall provide $200,000,000 to the Secretary of the 
Interior to carry out this section.
    (b) Entitlement.--The Secretary of the Interior (referred 
to in this section as the ``Secretary'')--
            (1) shall be entitled to receive the funds made 
        available under subsection (a);
            (2) shall accept the funds; and
            (3) shall use the funds to--
                    (A) conduct restoration activities in the 
                Everglades ecosystem in South Florida, which 
                shall include the acquisition of real property 
                and interests in real property located within 
                the Everglades ecosystem; and
                    (B) fund resource protection and resource 
                maintenance activities in the Everglades 
                ecosystem.
    (c) Savings Provision.--Nothing in this subsection 
precludes the Secretary from transferring funds to the Army 
Corps of Engineers, the State of Florida, or the South Florida 
Water Management District to carry out subsection (b)(3).
    (d) Deadline.--The Secretary shall use the funds made 
available under subsection (a) for restoration activities 
referred to in subsection (b)(3) not later than December 31, 
1999.
    (e) Report to Congress.--For each of calendar years 1996 
through 1999, the Secretary shall submit an annual report to 
Congress describing all activities carried out under subsection 
(b)(3).
    (f) Separate and Additional Everglades Restoration 
Account.--
            (1) Establishment.--There is established in the 
        Treasury a special account (to be known as the 
        ``Everglades Restoration Account''), which shall 
        consist of such funds as may be deposited in the 
        account under paragraph (2). The account shall be 
        separate, and in addition to, funds deposited in the 
        Treasury under subsection (a).
            (2) Source of funds for account.--
                    (A) Proceeds from surplus property.--
                            (i) In general.--Subject to 
                        subparagraph (B), the Administrator 
                        shall deposit in the special account 
                        all funds received by the 
                        Administrator, on or after the date of 
                        enactment of this Act, from the 
                        disposal pursuant to the Federal 
                        Property and Administrative Services 
                        Act of 1949 (40 U.S.C. 471 et seq.) of 
                        surplus real property located in the 
                        State of Florida.
                            (ii) Availability and disposition 
                        of federal land.--
                                    (I) Identification.--Any 
                                Federal real property located 
                                in the State of Florida 
                                (excluding lands under the 
                                administrative jurisdiction of 
                                the Secretary that are set 
                                aside for conservation 
                                purposes) shall be identified 
                                for disposal or exchange under 
                                this subsection and shall be 
                                presumed available for purposes 
                                of this subsection unless the 
                                head of the agency controlling 
                                the property determines that 
                                there is a compelling program 
                                need for any property 
                                identified by the Secretary.
                                    (II) Availability.--
                                Property identified by the 
                                Secretary for which there is no 
                                demonstrated compelling program 
                                need shall, not later than 90 
                                days after a request by the 
                                Secretary, be reported to the 
                                Administrator and shall be made 
                                available to the Administrator 
                                who shall consider the property 
                                to be surplus property for 
                                purposes of the Federal 
                                Property and Administrative 
                                Services Act of 1949 (40 U.S.C 
                                471 et. seq.).
                                    (III) Prioritization of 
                                disposition.--The Administrator 
                                may prioritize the disposition 
                                of property made available 
                                under this subparagraph to 
                                permit the property to be sold 
                                as quickly as practicable in a 
                                manner that is consistent with 
                                the best interests of the 
                                Federal Government.
                    (B) Limit on total amount of deposits.--The 
                total amount of funds deposited in the special 
                account under subparagraph (A) shall not exceed 
                $100,000,000.
                    (C) Effect on closure of military 
                installations.--Nothing in this section alters 
                the disposition of any proceeds arising from 
                the disposal of real property pursuant to a 
                base closure law.
            (3) Use of special account.--Funds in the special 
        account shall be available to the Secretary until 
        expended under this paragraph. The Secretary shall use 
        funds in the special account to assist in the 
        restoration of the Everglades ecosystem in South 
        Florida through--
                    (A) subject to paragraph (4), the 
                acquisition of real property and interests in 
                real property located within the Everglades 
                ecosystem; and
                    (B) the funding of resource protection and 
                resource maintenance activities in the 
                Everglades ecosystem.
            (4) State contribution.--The Secretary may not 
        expend any funds from the special account to acquire a 
        parcel of real property, or an interest in a parcel of 
        real property, under paragraph (3)(A) unless the 
        Secretary obtains, or has previously obtained, a 
        contribution from the State of Florida in an amount 
        equal to not less than 50 percent of the appraised 
        value of the parcel or interest to be acquired, as 
        determined by the Secretary.
            (5) Definitions.--In this subsection:
                    (A) Administrator.--The term 
                ``Administrator'' means the Administrator of 
                General Services.
                    (B) Base closure law.--The term ``base 
                closure law'' means each of the following:
                            (i) The Defense Base Closure and 
                        Realignment Act of 1990 (part A of 
                        title XXIX of Public Law 101-510; 10 
                        U.S.C. 2687 note).
                            (ii) Title II of the Defense 
                        Authorization Amendments and Base 
                        Closure and Realignment Act (Public Law 
                        100-526; 10 U.S.C. 2687 note).
                            (iii) Section 2687 of title 10, 
                        United States Code.
                            (iv) Any other similar law enacted 
                        after the date of enactment of this 
                        Act.
                    (C) Everglades ecosystem.--The term 
                ``Everglades ecosystem'' means the Florida 
                Everglades Restoration area that extends from 
                the Kissimmee River basin to Florida Bay.
                    (D) Excess property.--The term ``excess 
                property'' has the meaning provided in section 
                3 of the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 472).
                    (E) Executive agency.--The term ``executive 
                agency'' has the meaning provided in section 3 
                of the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 472).
                    (F) Special account.--The term ``special 
                account'' means the Everglades Restoration 
                Account established under paragraph (1).
                    (G) Surplus property.--The term ``surplus 
                property'' has the meaning provided in section 
                3 of the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 472).
    (g) Report To Determine the Feasibility of Additional Land 
Acquisition and Restoration Activities.--
            (1) In general.--The Secretary shall conduct an 
        investigation to determine what, if any, unreserved and 
        unappropriated Federal lands (or mineral interests in 
        any such lands) under the administrative jurisdiction 
        of the Secretary are suitable for disposal or exchange 
        for the purpose of conducting restoration activities in 
        the Everglades region.
            (2) Conservation lands.--No lands under the 
        administrative jurisdiction of the Secretary that are 
        set aside for conservation purposes shall be identified 
        for disposal or exchange under this subsection.
            (3) Florida.--In carrying out this subsection, the 
        Secretary shall, to the maximum extent practicable, 
        determine which lands and mineral interests located 
        within the State of Florida are suitable for disposal 
        or exchange before making the determination for 
        eligible lands or interests in other States.
            (4) Public access.--In carrying out this 
        subsection, the Secretary shall consider that in 
        disposing of lands, the Secretary shall retain such 
        interest in the lands as may be necessary to ensure 
        that the general public is not precluded from 
        reasonable access to the lands for purposes of fishing, 
        hunting, or other recreational uses.
            (5) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit a 
        report to the Committee on Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate describing the results of the 
        investigation conducted under this subsection. The 
        report shall describe the specific parcels identified 
        under this subsection, establish the priorities for 
        disposal or exchange among the parcels, and estimate 
        the values of the parcels.

SEC. 391. AGRICULTURAL AIR QUALITY RESEARCH OVERSIGHT.

    (a) Findings.--Congress finds that--
            (1) various studies have alleged that agriculture 
        is a source of PM-10 emissions;
            (2) many of these studies have often been based on 
        erroneous data;
            (3) Federal research activities are currently being 
        conducted by the Department of Agriculture to determine 
        the true extent to which agricultural activities 
        contribute to air pollution and to determine cost-
        effective ways in which the agricultural industry can 
        reduce any pollution that exists; and
            (4) any Federal policy recommendations that may be 
        issued by any Federal agency to address air pollution 
        problems related to agriculture or any other industrial 
        activity should be based on sound scientific findings 
        that are subject to adequate peer review and should 
        take into account economic feasibility.
    (b) Purpose.--The purpose of this section is to encourage 
the Secretary of Agriculture to continue to strengthen vital 
research efforts related to agricultural air quality.
    (c) Oversight Coordination.--
            (1) Intergovernmental cooperation.--The Secretary 
        shall, to the maximum extent practicable with respect 
        to the Department of Agriculture and other Federal 
        departments and agencies, ensure intergovernmental 
        cooperation in research activities related to 
        agricultural air quality and avoid duplication of the 
        activities.
            (2) Correct data.--The Secretary shall, to the 
        maximum extent practicable, ensure that the results of 
        any research related to agricultural air quality 
        conducted by Federal agencies not report erroneous data 
        with respect to agricultural air quality.
    (d) Task Force.--
            (1) Establishment.--The Chief of the National 
        Resources Conservation Service shall establish a task 
        force to address agricultural air quality issues.
            (2) Composition.--The task force shall be comprised 
        of employees of the Department of Agriculture, industry 
        representatives, and other experts in the fields of 
        agriculture and air quality.
            (3) Duties.--The task force shall advise the 
        Secretary with respect to the role of the Secretary for 
        providing oversight and coordination related to 
        agricultural air quality.

                     TITLE IV--NUTRITION ASSISTANCE

SEC. 401. FOOD STAMP PROGRAM.

    (a) Disqualification of a Store or Concern.--Section 
12(b)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2021(b)(3)(B)) is amended--
            (1) by striking the second parenthetical; and
            (2) by striking ``; or'' and inserting the 
        following: ``, including evidence that--
                            ``(i) the ownership of the store or 
                        food concern was not aware of, did not 
                        approve of, did not benefit from, and 
                        was not involved in the conduct of the 
                        violation; and
                            ``(ii)(I) the management of the 
                        store or food concern was not aware of, 
                        did not approve of, did not benefit 
                        from, and was not involved in the 
                        conduct of the violation; or
                            ``(II) the management was aware of, 
                        approved of, benefited from, or was 
                        involved in the conduct of no more than 
                        1 previous violation by the store or 
                        food concern; or''.
    (b) Employment and Training.--Section 16(h)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking 
``1995'' each place it appears and inserting ``2002''.
    (c) Authorization of Pilot Projects.--The last sentence of 
section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)(A)) is amended by striking ``1995'' and inserting 
``2002''.
    (d) Outreach Demonstration Projects.--The first sentence of 
section 17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(j)(1)(A)) is amended by striking ``1995'' and inserting 
``2002''.
    (e) Authorization for Appropriations.--The first sentence 
of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2027(a)(1)) is amended by striking ``1995'' and inserting 
``1997''.
    (f) Reauthorization of Puerto Rico Nutrition Assistance 
Program.--The first sentence of section 19(a)(1)(A) of the Food 
Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by 
striking ``$974,000,000'' and all that follows through ``fiscal 
year 1995'' and inserting ``$1,143,000,000 for fiscal year 
1996, $1,174,000,000 for fiscal year 1997, $1,204,000,000 for 
fiscal year 1998, $1,236,000,000 for fiscal year 1999, 
$1,268,000,000 for fiscal year 2000, $1,301,000,000 for fiscal 
year 2001, and $1,335,000,000 for fiscal year 2002''.
    (g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 
2011 et seq.) is amended by adding at the end the following:

``SEC. 24. TERRITORY OF AMERICAN SAMOA.

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

``SEC. 25. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    ``(a) Definition of Community Food Projects.--In this 
section, the term `community food project' means a community-
based project that requires a 1-time infusion of Federal 
assistance to become self-sustaining and that is designed to--
            ``(1) meet the food needs of low-income people;
            ``(2) increase the self-reliance of communities in 
        providing for their own food needs; and
            ``(3) promote comprehensive responses to local 
        food, farm, and nutrition issues.
    ``(b) Authority To Provide Assistance.--
            ``(1) In general.--From amounts made available to 
        carry out this Act, the Secretary may make grants to 
        assist eligible private nonprofit entities to establish 
        and carry out community food projects.
            ``(2) Limitation on grants.--The total amount of 
        funds provided as grants under this section may not 
        exceed--
                    ``(A) $1,000,000 for fiscal year 1996; and
                    ``(B) $2,500,000 for each of fiscal years 
                1997 through 2002.
    ``(c) Eligible Entities.--To be eligible for a grant under 
subsection (b), a private nonprofit entity must--
            ``(1) have experience in the area of--
                    ``(A) community food work, particularly 
                concerning small and medium-sized farms, 
                including the provision of food to people in 
                low-income communities and the development of 
                new markets in low-income communities for 
                agricultural producers; or
                    ``(B) job training and business development 
                activities for food-related activities in low-
                income communities;
            ``(2) demonstrate competency to implement a 
        project, provide fiscal accountability, collect data, 
        and prepare reports and other necessary documentation; 
        and
            ``(3) demonstrate a willingness to share 
        information with researchers, practitioners, and other 
        interested parties.
    ``(d) Preference for Certain Projects.--In selecting 
community food projects to receive assistance under subsection 
(b), the Secretary shall give a preference to projects designed 
to--
            ``(1) develop linkages between 2 or more sectors of 
        the food system;
            ``(2) support the development of entrepreneurial 
        projects;
            ``(3) develop innovative linkages between the for-
        profit and nonprofit food sectors; or
            ``(4) encourage long-term planning activities and 
        multi-system, interagency approaches.
    ``(e) Matching Funds Requirements.--
            ``(1) Requirements.--The Federal share of the cost 
        of establishing or carrying out a community food 
        project that receives assistance under subsection (b) 
        may not exceed 50 percent of the cost of the project 
        during the term of the grant.
            ``(2) Calculation.--In providing for the non-
        Federal share of the cost of carrying out a community 
        food project, the entity receiving the grant shall 
        provide for the share through a payment in cash or in 
        kind, fairly evaluated, including facilities, 
        equipment, or services.
            ``(3) Sources.--An entity may provide for the non-
        Federal share through State government, local 
        government, or private sources.
    ``(f) Term of Grant.--
            ``(1) Single grant.--A community food project may 
        be supported by only a single grant under subsection 
        (b).
            ``(2) Term.--The term of a grant under subsection 
        (b) may not exceed 3 years.
    ``(g) Technical Assistance and Related Information.--
            ``(1) Technical assistance.--In carrying out this 
        section, the Secretary may provide technical assistance 
        regarding community food projects, processes, and 
        development to an entity seeking the assistance.
            ``(2) Sharing Information.--
                    ``(A) In general.--The Secretary may 
                provide for the sharing of information 
                concerning community food projects and issues 
                among and between government, private for-
                profit and nonprofit groups, and the public 
                through publications, conferences, and other 
                appropriate forums.
                    ``(B) Other interested parties.--The 
                Secretary may share information concerning 
                community food projects with researchers, 
                practitioners, and other interested parties.
    ``(h) Evaluation.--
            ``(1) In general.--The Secretary shall provide for 
        the evaluation of the success of community food 
        projects supported using funds under this section.
            ``(2) Report.--Not later than January 30, 2002, the 
        Secretary shall submit a report to Congress regarding 
        the results of the evaluation.''.

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

    (a) Reauthorization.--The first sentence of section 4(a) of 
the Agriculture and Consumer Protection Act of 1973 (Public Law 
93-86; 7 U.S.C. 612c note) is amended by striking ``1995'' and 
inserting ``2002''.
    (b) Funding.--Section 5 of the Agriculture and Consumer 
Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) 
is amended--
            (1) in subsection (a)(2), by striking ``1995'' and 
        inserting ``2002'';
            (2) in subsection (d)(2), by striking ``1995'' and 
        inserting ``2002''; and
            (3) by adding at the end the following:
    ``(l) Carried-Over Funds.--Not more than 20 percent of any 
commodity supplemental food program food funds carried over 
under this section shall be available for administrative 
expenses of the program.''.

SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

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

SEC. 404. SOUP KITCHEN AND FOOD BANK PROGRAM.

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

SEC. 405. NATIONAL COMMODITY PROCESSING.

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

                    TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

SEC. 501. COMMODITY PROMOTION AND EVALUATION.

    (a) Commodity Promotion Law Defined.--In this section, the 
term ``commodity promotion law'' means a Federal law that 
provides for the establishment and operation of a promotion 
program regarding an agricultural commodity that includes a 
combination of promotion, research, industry information, or 
consumer information activities, is funded by mandatory 
assessments on producers or processors, and is designed to 
maintain or expand markets and uses for the commodity (as 
determined by the Secretary). The term includes--
            (1) the marketing promotion provisions under 
        section 8c(6)(I) of the Agricultural Adjustment Act (7 
        U.S.C. 608c(6)(I)), reenacted with amendments by the 
        Agricultural Marketing Agreement Act of 1937;
            (2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
            (3) title III of Public Law 91-670 (7 U.S.C. 2611 
        et seq.);
            (4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
            (5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
            (6) subtitle B of title I of Public Law 98-180 (7 
        U.S.C. 4501 et seq.);
            (7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
            (8) subtitle B of title XVI of Public Law 99-198 (7 
        U.S.C. 4801 et seq.);
            (9) subtitle C of title XVI of Public Law 99-198 (7 
        U.S.C. 4901 et seq.);
            (10) subtitle B of title XIX of Public Law 101-624 
        (7 U.S.C. 6101 et seq.);
            (11) subtitle E of title XIX of Public Law 101-624 
        (7 U.S.C. 6301 et seq.);
            (12) subtitle H of title XIX of Public Law 101-624 
        (7 U.S.C. 6401 et seq.);
            (13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
            (14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
            (15) subtitle B;
            (16) subtitle C;
            (17) subtitle D; or
            (18) subtitle E.
    (b) Findings.--Congress finds the following:
            (1) It is in the national public interest and vital 
        to the welfare of the agricultural economy of the 
        United States to maintain and expand existing markets 
        and develop new markets and uses for agricultural 
        commodities through industry-funded, Government-
        supervised, generic commodity promotion programs 
        established under commodity promotion laws.
            (2) These generic commodity promotion programs, 
        funded by the agricultural producers or processors who 
        most directly reap the benefits of the programs and 
        supervised by the Secretary of Agriculture, provide a 
        unique opportunity for producers and processors to 
        inform consumers about their products.
            (3) The central congressional purpose underlying 
        each commodity promotion law has always been to 
        maintain and expand markets for the agricultural 
        commodity covered by the law, rather than to maintain 
        or expand the share of those markets held by any 
        individual producer or processor.
            (4) The commodity promotion laws were neither 
        designed nor intended to prohibit or restrict, and the 
        promotion programs established and funded pursuant to 
        these laws do not prohibit or restrict, individual 
        advertising or promotion of the covered commodities by 
        any producer, processor, or group of producers or 
        processors.
            (5) It has never been the intent of Congress for 
        the generic commodity promotion programs established 
        and funded by the commodity promotion laws to replace 
        the individual advertising and promotion efforts of 
        producers or processors.
            (6) An individual producer's or processor's own 
        advertising initiatives are typically designed to 
        increase the share of the market held by that producer 
        or processor rather than to increase or expand the 
        overall size of the market.
            (7) In contrast, a generic commodity promotion 
        program is intended and designed to maintain or 
        increase the overall demand for the agricultural 
        commodity covered by the program and increase the size 
        of the market for that commodity, often by utilizing 
        promotion methods and techniques that individual 
        producers and processors typically are unable, or have 
        no incentive, to employ.
            (8) The commodity promotion laws establish 
        promotion programs that operate as ``self-help'' 
        mechanisms for producers and processors to fund generic 
        promotions for covered commodities which, under the 
        required supervision and oversight of the Secretary of 
        Agriculture--
                    (A) further specific national governmental 
                goals, as established by Congress; and
                    (B) produce nonideological and commercial 
                communication the purpose of which is to 
                further the governmental policy and objective 
                of maintaining and expanding the markets for 
                the covered commodities.
            (9) While some commodity promotion laws grant a 
        producer or processor the option of crediting 
        individual advertising conducted by the producer or 
        processor for all or a portion of the producer's or 
        processor's marketing promotion assessments, all 
        promotion programs established under the commodity 
        promotion laws, both those programs that permit credit 
        for individual advertising and those programs that do 
        not contain such provisions, are very narrowly tailored 
        to fulfill the congressional purposes of the commodity 
        promotion laws without impairing or infringing the 
        legal or constitutional rights of any individual 
        producer or processor.
            (10) These generic commodity promotion programs are 
        of particular benefit to small producers who often lack 
        the resources or market power to advertise on their own 
        and who are otherwise often unable to benefit from the 
        economies of scale available in promotion and 
        advertising.
            (11) Periodic independent evaluation of the 
        effectiveness of these generic commodity promotion 
        programs will assist Congress and the Secretary of 
        Agriculture in ensuring that the objectives of the 
        programs are met.
    (c) Independent Evaluation of Promotion Program 
Effectiveness.--Except as otherwise provided by law, each 
commodity board established under the supervision and oversight 
of the Secretary of Agriculture pursuant to a commodity 
promotion law shall, not less often than every 5 years, 
authorize and fund, from funds otherwise available to the 
board, an independent evaluation of the effectiveness of the 
generic commodity promotion programs and other programs 
conducted by the board pursuant to a commodity promotion law. 
The board shall submit to the Secretary, and make available to 
the public, the results of each periodic independent evaluation 
conducted under this subsection.
    (d) Administrative Costs.--The Secretary shall annually 
provide to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate information on administrative 
expenses on programs established under commodity promotion 
laws.

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

SEC. 511. SHORT TITLE.

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

SEC. 512. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The production of agricultural commodities 
        plays a significant role in the economy of the United 
        States. Thousands of producers in the United States are 
        involved in the production of agricultural commodities, 
        and such commodities are consumed by millions of people 
        throughout the United States and foreign countries.
            (2) Agricultural commodities must be of high 
        quality, readily available, handled properly, and 
        marketed efficiently to ensure that consumers have an 
        adequate supply.
            (3) The maintenance and expansion of existing 
        markets and the development of new markets for 
        agricultural commodities through generic commodity 
        promotion, research, and information programs are vital 
        to the welfare of persons engaged in the production, 
        marketing, and consumption of such commodities, as well 
        as to the general economy of the United States.
            (4) Generic promotion, research, and information 
        activities for agricultural commodities play a unique 
        role in advancing the demand for such commodities, 
        since such activities increase the total market for a 
        product to the benefit of consumers and all producers. 
        These generic activities complement branded advertising 
        initiatives, which are aimed at increasing the market 
        share of individual competitors, and are of particular 
        benefit to small producers who lack the resources or 
        market power to advertise on their own. These generic 
        activities do not impede the branded advertising 
        efforts of individual firms, but instead increase 
        general market demand for an agricultural commodity 
        using methods that individual companies do not have the 
        incentive to employ.
            (5) Generic promotion, research, and information 
        activities for agricultural commodities, paid by the 
        producers and others in the industry who reap the 
        benefits of such activities, provide a unique 
        opportunity for producers to inform consumers about a 
        particular agricultural commodity.
            (6) It is important to ensure that generic 
        promotion, research, and information activities for 
        agricultural commodities be carried out in an effective 
        and coordinated manner designed to strengthen the 
        position of the commodities in the marketplace and to 
        maintain and expand their markets and uses. Independent 
        evaluation of the effectiveness of the generic 
        promotion activities of these programs will assist the 
        Secretary of Agriculture and Congress in ensuring that 
        these objectives are met.
            (7) The cooperative development, financing, and 
        implementation of a coordinated national program of 
        research, promotion, and information regarding 
        agricultural commodities are necessary to maintain and 
        expand existing markets and to develop new markets for 
        these commodities.
            (8) Agricultural commodities move in interstate and 
        foreign commerce, and agricultural commodities and 
        their products that do not move in such channels of 
        commerce directly burden or affect interstate commerce 
        in agricultural commodities and their products.
            (9) Commodity promotion programs have the ability 
        to provide significant conservation benefits to 
        producers and the public.
    (b) Purpose.--The purpose of this subtitle is to authorize 
the establishment, through the exercise by the Secretary of 
Agriculture of the authority provided in this subtitle, of an 
orderly program for developing, financing, and carrying out an 
effective, continuous, and coordinated program of generic 
promotion, research, and information regarding agricultural 
commodities designed to--
            (1) strengthen the position of agricultural 
        commodity industries in the marketplace;
            (2) maintain and expand existing domestic and 
        foreign markets and uses for agricultural commodities;
            (3) develop new markets and uses for agricultural 
        commodities; or
            (4) assist producers in meeting their conservation 
        objectives.
    (c) Rule of Construction.--Nothing in this subtitle 
provides for the control of production or otherwise limits the 
right of any person to produce, handle, or import an 
agricultural commodity.

SEC. 513. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Agricultural commodity.--The term 
        ``agricultural commodity'' means--
                    (A) agricultural, horticultural, 
                viticultural, and dairy products;
                    (B) livestock and the products of 
                livestock;
                    (C) the products of poultry and bee 
                raising;
                    (D) the products of forestry;
                    (E) other commodities raised or produced on 
                farms, as determined appropriate by the 
                Secretary; and
                    (F) products processed or manufactured from 
                products specified in the preceding 
                subparagraphs, as determined appropriate by the 
                Secretary.
            (2) Board.--The term ``board'' means a board 
        established under an order issued under section 514.
            (3) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member or 
        employee of a board has a direct or indirect financial 
        interest in a person that performs a service for, or 
        enters into a contract with, a board for anything of 
        economic value.
            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) First handler.--The term ``first handler'' 
        means the first person who buys or takes possession of 
        an agricultural commodity from a producer for 
        marketing. If a producer markets the agricultural 
        commodity directly to consumers, the producer shall be 
        considered to be the first handler with respect to the 
        agricultural commodity produced by the producer.
            (6) Importer.--The term ``importer'' means any 
        person who imports an agricultural commodity from 
        outside the United States for sale in the United States 
        as a principal or as an agent, broker, or consignee of 
        any person.
            (7) Information.--The term ``information'' means 
        information and programs that are designed to 
        increase--
                    (A) efficiency in processing; and
                    (B) the development of new markets, 
                marketing strategies, increased marketing 
                efficiency, and activities to enhance the image 
                of agricultural commodities on a national or 
                international basis.
            (8) Market.--The term ``market'' means to sell or 
        to otherwise dispose of an agricultural commodity in 
        interstate, foreign, or intrastate commerce.
            (9) Order.--The term ``order'' means an order 
        issued by the Secretary under section 514 that provides 
        for a program of generic promotion, research, and 
        information regarding agricultural commodities designed 
        to--
                    (A) strengthen the position of agricultural 
                commodity industries in the marketplace;
                    (B) maintain and expand existing domestic 
                and foreign markets and uses for agricultural 
                commodities;
                    (C) develop new markets and uses for 
                agricultural commodities; or
                    (D) assist producers in meeting their 
                conservation objectives.
            (10) Person.--The term ``person'' means any 
        individual, group of individuals, partnership, 
        corporation, association, cooperative, or any other 
        legal entity.
            (11) Producer.--The term ``producer'' means any 
        person who is engaged in the production and sale of an 
        agricultural commodity in the United States and who 
        owns, or shares the ownership and risk of loss of, the 
        agricultural commodity.
            (12) Promotion.--The term ``promotion'' means any 
        action taken by a board under an order, including paid 
        advertising, to present a favorable image of an 
        agricultural commodity to the public to improve the 
        competitive position of the agricultural commodity in 
        the marketplace and to stimulate sales of the 
        agricultural commodity.
            (13) Research.--The term ``research'' means any 
        type of test, study, or analysis designed to advance 
        the image, desirability, use, marketability, 
        production, product development, or quality of an 
        agricultural commodity.
            (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (15) State.--The term ``State'' means any of the 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, or any territory or possession of the 
        United States.
            (16) Suspend.--The term ``suspend'' means to issue 
        a rule under section 553 of title 5, United States 
        Code, to temporarily prevent the operation of an order 
        during a particular period of time specified in the 
        rule.
            (17) Terminate.--The term ``terminate'' means to 
        issue a rule under section 553 of title 5, United 
        States Code, to cancel permanently the operation of an 
        order beginning on a date certain specified in the 
        rule.
            (18) United states.--The term ``United States'' 
        means collectively the 50 States, the District of 
        Columbia, the Commonwealth of Puerto Rico and the 
        territories and possessions of the United States.

SEC. 514. ISSUANCE OF ORDERS.

    (a) Issuance Authorized.--
            (1) In general.--To effectuate the purpose of this 
        subtitle, the Secretary may issue, and amend from time 
        to time, orders applicable to--
                    (A) the producers of an agricultural 
                commodity;
                    (B) the first handlers of the agricultural 
                commodity and other persons in the marketing 
                chain as appropriate; and
                    (C) the importers of the agricultural 
                commodity, if imports of the agricultural 
                commodity are subject to assessment under 
                section 516(f).
            (2) National scope.--Each order issued under this 
        section shall be national in scope.
    (b) Procedure for Issuance.--
            (1) Development or receipt of proposed order.--A 
        proposed order with respect to an agricultural 
        commodity may be--
                    (A) prepared by the Secretary at any time; 
                or
                    (B) submitted to the Secretary by--
                            (i) an association of producers of 
                        the agricultural commodity; or
                            (ii) any other person that may be 
                        affected by the issuance of an order 
                        with respect to the agricultural 
                        commodity.
            (2) Consideration of proposed order.--If the 
        Secretary determines that a proposed order is 
        consistent with and will effectuate the purpose of this 
        subtitle, the Secretary shall publish the proposed 
        order in the Federal Register and give due notice and 
        opportunity for public comment on the proposed order.
            (3) Existence of other orders.--In deciding whether 
        a proposal for an order is consistent with and will 
        effectuate the purpose of this subtitle, the Secretary 
        may consider the existence of other Federal promotion, 
        research, and information programs or orders issued or 
        developed pursuant to any other law.
            (4) Preparation of final order.--After notice and 
        opportunity for public comment under paragraph (2) 
        regarding a proposed order, the Secretary shall take 
        into consideration the comments received in preparing a 
        final order. The Secretary shall ensure that the final 
        order is in conformity with the terms, conditions, and 
        requirements of this subtitle.
    (c) Issuance and Effective Date.--If the Secretary 
determines that the final order developed with respect to an 
agricultural commodity is consistent with and will effectuate 
the purpose of this subtitle, the Secretary shall issue the 
final order. Except in the case of an order for which an 
initial referendum is conducted under section 518(a), the final 
order shall be issued and become effective not later than 270 
days after the date of publication of the proposed order that 
was the basis for the final order.
    (d) Amendments.--From time to time the Secretary may amend 
any order, consistent with the requirements of section 523.

SEC. 515. REQUIRED TERMS IN ORDERS.

    (a) In General.--Each order shall contain the terms and 
conditions specified in this section.
    (b) Board.--
            (1) Establishment.--Each order shall establish a 
        board to carry out a program of generic promotion, 
        research, and information regarding the agricultural 
        commodity covered by the order and intended to 
        effectuate the purpose of this subtitle.
            (2) Board membership.--
                    (A) Number of members.--Each board shall 
                consist of the number of members considered by 
                the Secretary, in consultation with the 
                agricultural commodity industry involved, to be 
                appropriate to administer the order. In 
                addition to members, the Secretary may also 
                provide for alternates on the board.
                    (B) Appointment.--The Secretary shall 
                appoint the members and any alternates of a 
                board from among producers of the agricultural 
                commodity and first handlers and others in the 
                marketing chain as appropriate. If imports of 
                the agricultural commodity covered by an order 
                are subject to assessment under section 516(f), 
                the Secretary shall also appoint importers as 
                members of the board and as alternates if 
                alternates are included on the board. The 
                Secretary may appoint 1 or more members of the 
                general public to each board.
                    (C) Nominations.--The Secretary may make 
                appointments from nominations made pursuant to 
                the method set forth in the order.
                    (D) Geographical representation.--To ensure 
                fair and equitable representation of the 
                agricultural commodity industry covered by an 
                order, the composition of each board shall 
                reflect the geographical distribution of the 
                production of the agricultural commodity 
                involved in the United States and the quantity 
                or value of the agricultural commodity imported 
                into the United States.
            (3) Reapportionment of board membership.--In 
        accordance with rules issued by the Secretary, at least 
        once in each 5-year period, but not more frequently 
        than once in each 3-year period, each board shall--
                    (A) review the geographical distribution in 
                the United States of the production of the 
                agricultural commodity covered by the order 
                involved and the quantity or value of the 
                agricultural commodity imported into the United 
                States; and
                    (B) if warranted, recommend to the 
                Secretary the reapportionment of the board 
                membership to reflect changes in the 
                geographical distribution of the production of 
                the agricultural commodity and the quantity or 
                value of the imported agricultural commodity.
            (4) Notice.--
                    (A) Vacancies.--Each order shall provide 
                for notice of board vacancies to the 
                agricultural commodity industry involved.
                    (B) Meetings.--Each board shall provide the 
                Secretary with prior notice of meetings of the 
                board to permit the Secretary, or a designated 
                representative of the Secretary, to attend the 
                meetings.
            (5) Term of office.--
                    (A) In general.--The members and any 
                alternates of a board shall each serve for a 
                term of 3 years, except that the members and 
                any alternates initially appointed to a board 
                shall serve for terms of not more than 2, 3, 
                and 4 years, as specified by the order.
                    (B) Limitation on consecutive terms.--A 
                member or alternate may serve not more than 2 
                consecutive terms.
                    (C) Continuation of term.--Notwithstanding 
                subparagraph (B), each member or alternate 
                shall continue to serve until a successor is 
                appointed by the Secretary.
                    (D) Vacancies.--A vacancy arising before 
                the expiration of a term of office of an 
                incumbent member or alternate of a board shall 
                be filled in a manner provided for in the 
                order.
            (6) Compensation.--
                    (A) In general.--Members and any alternates 
                of a board shall serve without compensation.
                    (B) Travel expenses.--If approved by a 
                board, members or alternates shall be 
                reimbursed for reasonable travel expenses, 
                which may include a per diem allowance or 
                actual subsistence incurred while away from 
                their homes or regular places of business in 
                the performance of services for the board.
    (c) Powers and Duties of a Board.--Each order shall specify 
the powers and duties of the board established under the order, 
which shall include the power and duty--
            (1) to administer the order in accordance with its 
        terms and conditions and to collect assessments;
            (2) to develop and recommend to the Secretary for 
        approval such bylaws as may be necessary for the 
        functioning of the board and such rules as may be 
        necessary to administer the order, including activities 
        authorized to be carried out under the order;
            (3) to meet, organize, and select from among the 
        members of the board a chairperson, other officers, and 
        committees and subcommittees, as the board determines 
        to be appropriate;
            (4) to employ persons, other than the members, as 
        the board considers necessary to assist the board in 
        carrying out its duties, and to determine the 
        compensation and specify the duties of the persons;
            (5) subject to subsection (e), to develop and carry 
        out generic promotion, research, and information 
        activities relating to the agricultural commodity 
        covered by the order;
            (6) to prepare and submit for the approval of the 
        Secretary, before the beginning of each fiscal year, 
        rates of assessment under section 517 and an annual 
        budget of the anticipated expenses to be incurred in 
        the administration of the order, including the probable 
        cost of each promotion, research, and information 
        activity proposed to be developed or carried out by the 
        board;
            (7) to borrow funds necessary for the startup 
        expenses of the order;
            (8) subject to subsection (f), to enter into 
        contracts or agreements to develop and carry out 
        generic promotion, research, and information activities 
        relating to the agricultural commodity covered by the 
        order;
            (9) to pay the cost of the activities with 
        assessments collected under section 517, earnings from 
        invested assessments, and other funds;
            (10) to keep records that accurately reflect the 
        actions and transactions of the board, to keep and 
        report minutes of each meeting of the board to the 
        Secretary, and to furnish the Secretary with any 
        information or records the Secretary requests;
            (11) to receive, investigate, and report to the 
        Secretary complaints of violations of the order; and
            (12) to recommend to the Secretary such amendments 
        to the order as the board considers appropriate.
    (d) Prohibited Activities.--A board may not engage in, and 
shall prohibit the employees and agents of the board from 
engaging in--
            (1) any action that would be a conflict of 
        interest;
            (2) using funds collected by the board under the 
        order, any action undertaken for the purpose of 
        influencing any legislation or governmental action or 
        policy other than recommending to the Secretary 
        amendments to the order; and
            (3) any advertising, including promotion, research, 
        and information activities authorized to be carried out 
        under the order, that may be false or misleading or 
        disparaging to another agricultural commodity.
    (e) Activities and Budgets.--
            (1) Activities.--Each order shall require the board 
        established under the order to submit to the Secretary 
        for approval plans and projects for promotion, 
        research, or information relating to the agricultural 
        commodity covered by the order.
            (2) Budgets.--
                    (A) Submission to secretary.--Each order 
                shall require the board established under the 
                order to submit to the Secretary for approval a 
                budget of its anticipated annual expenses and 
                disbursements to be paid to administer the 
                order. The budget shall be submitted before the 
                beginning of a fiscal year and as frequently as 
                may be necessary after the beginning of the 
                fiscal year.
                    (B) Reimbursement of secretary.--Each order 
                shall require that the Secretary be reimbursed 
                for all expenses incurred by the Secretary in 
                the implementation, administration, and 
                supervision of the order, including all 
                referenda costs incurred in connection with the 
                order.
            (3) Incurring expenses.--A board may incur the 
        expenses described in paragraph (2) and other expenses 
        for the administration, maintenance, and functioning of 
        the board as authorized by the Secretary.
            (4) Payment of expenses.--Expenses incurred under 
        paragraph (3) shall be paid by a board using 
        assessments collected under section 517, earnings 
        obtained from assessments, and other income of the 
        board. Any funds borrowed by the board shall be 
        expended only for startup costs and capital outlays.
            (5) Limitation on spending.--For fiscal years 
        beginning 3 or more years after the date of the 
        establishment of a board, the board may not expend for 
        administration (except for reimbursements to the 
        Secretary required under paragraph (2)(B)), 
        maintenance, and functioning of the board in a fiscal 
        year an amount that exceeds 15 percent of the 
        assessment and other income received by the board for 
        the fiscal year.
    (f) Contracts and Agreements.--
            (1) In general.--Each order shall provide that, 
        with the approval of the Secretary, the board 
        established under the order may--
                    (A) enter into contracts and agreements to 
                carry out generic promotion, research, and 
                information activities relating to the 
                agricultural commodity covered by the order, 
                including contracts and agreements with 
                producer associations or other entities as 
                considered appropriate by the Secretary; and
                    (B) pay the cost of approved generic 
                promotion, research, and information activities 
                using assessments collected under section 517, 
                earnings obtained from assessments, and other 
                income of the board.
            (2) Requirements.--Each contract or agreement shall 
        provide that any person who enters into the contract or 
        agreement with the board shall--
                    (A) develop and submit to the board a 
                proposed activity together with a budget that 
                specifies the cost to be incurred to carry out 
                the activity;
                    (B) keep accurate records of all of its 
                transactions relating to the contract or 
                agreement;
                    (C) account for funds received and expended 
                in connection with the contract or agreement;
                    (D) make periodic reports to the board of 
                activities conducted under the contract or 
                agreement; and
                    (E) make such other reports as the board or 
                the Secretary considers relevant.
    (g) Records of Board.--
            (1) In general.--Each order shall require the board 
        established under the order--
                    (A) to maintain such records as the 
                Secretary may require and to make the records 
                available to the Secretary for inspection and 
                audit;
                    (B) to collect and submit to the Secretary, 
                at any time the Secretary may specify, any 
                information the Secretary may request; and
                    (C) to account for the receipt and 
                disbursement of all funds in the possession, or 
                under the control, of the board.
            (2) Audits.--Each order shall require the board 
        established under the order to have--
                    (A) its records audited by an independent 
                auditor at the end of each fiscal year; and
                    (B) a report of the audit submitted 
                directly to the Secretary.
    (h) Periodic Evaluation.--In accordance with section 
501(c), each order shall require the board established under 
the order to provide for the independent evaluation of all 
generic promotion, research, and information activities 
undertaken under the order.
    (i) Books and Records of Persons Covered by Order.--
            (1) In general.--Each order shall require that 
        producers, first handlers and other persons in the 
        marketing chain as appropriate, and importers covered 
        by the order shall--
                    (A) maintain records sufficient to ensure 
                compliance with the order and regulations;
                    (B) submit to the board established under 
                the order any information required by the board 
                to carry out its responsibilities under the 
                order; and
                    (C) make the records described in 
                subparagraph (A) available, during normal 
                business hours, for inspection by employees or 
                agents of the board or the Department, 
                including any records necessary to verify 
                information required under subparagraph (B).
            (2) Time requirement.--Any record required to be 
        maintained under paragraph (1) shall be maintained for 
        such time period as the Secretary may prescribe.
            (3) Other information.--The Secretary may use, and 
        may authorize the board to use under this subtitle, 
        information regarding persons subject to an order that 
        is collected by the Department under any other law.
            (4) Confidentiality of information.--
                    (A) In general.--Except as otherwise 
                provided in this subtitle, all information 
                obtained under paragraph (1) or as part of a 
                referendum under section 518 shall be kept 
                confidential by all officers, employees, and 
                agents of the Department and of the board.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed only if--
                            (i) the Secretary considers the 
                        information relevant; and
                            (ii) the information is revealed in 
                        a judicial proceeding or administrative 
                        hearing brought at the direction or on 
                        the request of the Secretary or to 
                        which the Secretary or any officer of 
                        the Department is a party.
                    (C) Other exceptions.--This paragraph shall 
                not prohibit--
                            (i) the issuance of general 
                        statements based on reports or on 
                        information relating to a number of 
                        persons subject to an order if the 
                        statements do not identify the 
                        information furnished by any person; or
                            (ii) the publication, by direction 
                        of the Secretary, of the name of any 
                        person violating any order and a 
                        statement of the particular provisions 
                        of the order violated by the person.
                    (D) Penalty.--Any person who willfully 
                violates this subsection shall be subject, on 
                conviction, to a fine of not more than $1,000 
                or to imprisonment for not more than 1 year, or 
                both.
            (5) Withholding information.--This subsection shall 
        not authorize the withholding of information from 
        Congress.

SEC. 516. PERMISSIVE TERMS IN ORDERS.

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

SEC. 517. ASSESSMENTS.

    (a) Assessments Authorized.--While an order issued under 
this subtitle is in effect with respect to an agricultural 
commodity, assessments shall be--
            (1) paid by first handlers with respect to the 
        agricultural commodity produced and marketed in the 
        United States; and
            (2) paid by importers with respect to the 
        agricultural commodity imported into the United States, 
        if the imported agricultural commodity is covered by 
        the order pursuant to section 516(f).
    (b) Collection.--Assessments required under an order shall 
be remitted to the board established under the order at the 
time and in the manner prescribed by the order.
    (c) Limitation on Assessments.--Not more than 1 assessment 
may be levied on a first handler or importer under subsection 
(a) with respect to any agricultural commodity.
    (d) Assessment Rates.--The board shall recommend to the 
Secretary 1 or more rates of assessment to be levied under 
subsection (a). If approved by the Secretary, the rates shall 
take effect. An order may provide that an assessment rate may 
not be increased unless approved by a referendum conducted 
pursuant to section 518.
    (e) Late-Payment and Interest Charges.--
            (1) In general.--Late-payment and interest charges 
        may be levied on each person subject to an order who 
        fails to remit an assessment in accordance with 
        subsection (b).
            (2) Rate.--The rate for the charges shall be 
        specified by the Secretary.
    (f) Investment of Assessments.--Pending disbursement of 
assessments under a budget approved by the Secretary, a board 
may invest assessments collected under this section in--
            (1) obligations of the United States or any agency 
        of the United States;
            (2) general obligations of any State or any 
        political subdivision of a State;
            (3) interest-bearing accounts or certificates of 
        deposit of financial institutions that are members of 
        the Federal Reserve System; or
            (4) obligations fully guaranteed as to principal 
        and interest by the United States.
    (g) Refund of Assessments From Escrow Account.--
            (1) Escrow account.--During the period beginning on 
        the effective date of an order and ending on the date 
        the Secretary announces the results of a referendum 
        that is conducted under section 518(b)(1) with respect 
        to the order, the board established under the order 
        shall--
                    (A) establish and maintain an escrow 
                account of the kind described in subsection 
                (f)(3) to be used to refund assessments; and
                    (B) deposit funds in the account in 
                accordance with paragraph (2).
            (2) Amount to be deposited.--The board shall 
        deposit in the account an amount equal to 10 percent of 
        the assessments collected during the period referred to 
        in paragraph (1).
            (3) Right to receive refund.--Subject to paragraphs 
        (4), (5), and (6), persons subject to an order shall be 
        eligible to demand a refund of assessments collected 
        during the period referred to in paragraph (1) if--
                    (A) the assessments were remitted on behalf 
                of the person; and
                    (B) the order is not approved in the 
                referendum.
            (4) Form of demand.--The demand for a refund shall 
        be made at such time and in such form as specified by 
        the order.
            (5) Payment of refund.--A person entitled to a 
        refund shall be paid promptly after the board receives 
        satisfactory proof that the assessment for which the 
        refund is demanded was paid on behalf of the person who 
        makes the demand.
            (6) Proration.--If the funds in the escrow account 
        required by paragraph (1) are insufficient to pay the 
        amount of all refunds that persons subject to an order 
        otherwise would have a right to receive under this 
        subsection, the board shall prorate the amount of the 
        funds among all the persons.
            (7) Closing of escrow account.--If the order is 
        approved in a referendum conducted under section 
        518(b)(1)--
                    (A) the escrow account shall be closed; and
                    (B) the funds shall be available to the 
                board for disbursement as authorized in the 
                order.

SEC. 518. REFERENDA.

    (a) Initial Referendum.--
            (1) Optional referendum.--For the purpose of 
        ascertaining whether the persons to be covered by an 
        order favor the order going into effect, the order may 
        provide for the Secretary to conduct an initial 
        referendum among persons to be subject to an assessment 
        under section 517 who, during a representative period 
        determined by the Secretary, engaged in--
                    (A) the production or handling of the 
                agricultural commodity covered by the order; or
                    (B) the importation of the agricultural 
                commodity.
            (2) Procedure.--The results of the referendum shall 
        be determined in accordance with subsection (e). The 
        Secretary may require that the agricultural commodity 
        industry involved post a bond or other collateral to 
        cover the cost of the referendum.
    (b) Required Referenda.--
            (1) In general.--For the purpose of ascertaining 
        whether the persons covered by an order favor the 
        continuation, suspension, or termination of the order, 
        the Secretary shall conduct a referendum among persons 
        subject to assessments under section 517 who, during a 
        representative period determined by the Secretary, have 
        engaged in--
                    (A) the production or handling of the 
                agricultural commodity covered by the order; or
                    (B) the importation of the agricultural 
                commodity.
            (2) Time for referendum.--The referendum shall be 
        conducted not later than 3 years after assessments 
        first begin under the order.
            (3) Exception.--This subsection shall not apply if 
        an initial referendum was conducted under subsection 
        (a).
    (c) Subsequent Referenda.--The Secretary shall conduct a 
subsequent referendum--
            (1) not later than 7 years after assessments first 
        begin under the order;
            (2) at the request of the board established under 
        the order; or
            (3) at the request of 10 percent or more of the 
        number of persons eligible to vote under subsection 
        (b)(1);
to determine if the persons favor the continuation, suspension 
or termination of the order.
    (d) Other Referenda.--The Secretary may conduct a 
referendum at any time to determine whether the continuation, 
suspension, or termination of the order or a provision of the 
order is favored by persons eligible to vote under subsection 
(b)(1).
    (e) Approval of Order.--An order may provide for its 
approval in a referendum--
            (1) by a majority of those persons voting;
            (2) by persons voting for approval who represent a 
        majority of the volume of the agricultural commodity; 
        or
            (3) by a majority of those persons voting for 
        approval who also represent a majority of the volume of 
        the agricultural commodity.
    (f) Costs of Referenda.--The board established under an 
order with respect to which a referendum is conducted under 
this section shall reimburse the Secretary for any expenses 
incurred by the Secretary to conduct the referendum.
    (g) Manner of Conducting Referenda.--
            (1) In general.--A referendum conducted under this 
        section shall be conducted in the manner determined by 
        the Secretary to be appropriate.
            (2) Advance registration.--If the Secretary 
        determines that an advance registration of eligible 
        voters in a referendum is necessary before the voting 
        period in order to facilitate the conduct of the 
        referendum, the Secretary may institute the advance 
        registration procedures by mail, or in person through 
        the use of national and local offices of the 
        Department.
            (3) Voting.--Eligible voters may vote by mail 
        ballot in the referendum or in person if so prescribed 
        by the Secretary.
            (4) Notice.--Not later than 30 days before a 
        referendum is conducted under this section with respect 
        to an order, the Secretary shall notify the 
        agricultural commodity industry involved, in such 
        manner as determined by the Secretary, of the period 
        during which voting in the referendum will occur. The 
        notice shall explain any registration and voting 
        procedures established under this subsection.

SEC. 519. PETITION AND REVIEW OF ORDERS.

    (a) Petition.--
            (1) In general.--A person subject to an order 
        issued under this subtitle may file with the Secretary 
        a petition--
                    (A) stating that the order, any provision 
                of the order, or any obligation imposed in 
                connection with the order, is not established 
                in accordance with law; and
                    (B) requesting a modification of the order 
                or an exemption from the order.
            (2) Hearing.--The Secretary shall give the 
        petitioner an opportunity for a hearing on the 
        petition, in accordance with regulations issued by the 
        Secretary.
            (3) Ruling.--After the hearing, the Secretary shall 
        make a ruling on the petition. The ruling shall be 
        final, subject to review as set forth in subsection 
        (b).
            (4) Limitation on petition.--Any petition filed 
        under this subsection challenging an order, any 
        provision of the order, or any obligation imposed in 
        connection with the order, shall be filed within 2 
        years after the effective date of the order, provision, 
        or obligation subject to challenge in the petition.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which a person 
        who is a petitioner under subsection (a) resides or 
        carries on business shall have jurisdiction to review 
        the final ruling on the petition of the person, if a 
        complaint for that purpose is filed not later than 20 
        days after the date of the entry of the final ruling by 
        the Secretary under subsection (a)(3).
            (2) Process.--Service of process in a proceeding 
        may be made on the Secretary by delivering a copy of 
        the complaint to the Secretary.
            (3) Remands.--If the court determines that the 
        ruling is not in accordance with law, the court shall 
        remand the matter to the Secretary with directions--
                    (A) to make such ruling as the court 
                determines to be in accordance with law; or
                    (B) to take such further action as, in the 
                opinion of the court, the law requires.
    (c) Effect on Enforcement Proceedings.--The pendency of a 
petition filed under subsection (a) or an action commenced 
under subsection (b) shall not operate as a stay of any action 
authorized by section 520 to be taken to enforce this subtitle, 
including any rule, order, or penalty in effect under this 
subtitle.

SEC. 520. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States 
shall have jurisdiction specifically to enforce, and to prevent 
and restrain a person from violating, an order or regulation 
issued under this subtitle.
    (b) Referral to Attorney General.--A civil action 
authorized to be brought under this section shall be referred 
to the Attorney General for appropriate action, except that the 
Secretary shall not be required to refer to the Attorney 
General a violation of this subtitle if the Secretary believes 
that the administration and enforcement of this subtitle would 
be adequately served by providing a suitable written notice or 
warning to the person who committed the violation or by an 
administrative action under this section.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--A person who willfully 
        violates an order or regulation issued by the Secretary 
        under this Act may be assessed by the Secretary a civil 
        penalty of not less than $1,000 and not more than 
        $10,000 for each violation.
            (2) Separate offense.--Each violation and each day 
        during which there is a failure to comply with an order 
        or regulation issued by the Secretary shall be 
        considered to be a separate offense.
            (3) Cease-and-desist orders.--In addition to, or in 
        lieu of, a civil penalty, the Secretary may issue an 
        order requiring a person to cease and desist from 
        violating the order or regulation.
            (4) Notice and hearing.--No order assessing a 
        penalty or cease-and-desist order may be issued by the 
        Secretary under this subsection unless the Secretary 
        provides notice and an opportunity for a hearing on the 
        record with respect to the violation.
            (5) Finality.--An order assessing a penalty or a 
        cease-and-desist order issued under this subsection by 
        the Secretary shall be final and conclusive unless the 
        person against whom the order is issued files an appeal 
        from the order with the United States court of appeals, 
        as provided in subsection (d).
    (d) Review by Court of Appeals.--
            (1) In general.--A person against whom an order is 
        issued under subsection (c) may obtain review of the 
        order by--
                    (A) filing, not later than 30 days after 
                the person receives notice of the order, a 
                notice of appeal in--
                            (i) the United States court of 
                        appeals for the circuit in which the 
                        person resides or carries on business; 
                        or
                            (ii) the United States Court of 
                        Appeals for the District of Columbia 
                        Circuit; and
                    (B) simultaneously sending a copy of the 
                notice of appeal by certified mail to the 
                Secretary.
            (2) Record.--The Secretary shall file with the 
        court a certified copy of the record on which the 
        Secretary has determined that the person has committed 
        a violation.
            (3) Standard of review.--A finding of the Secretary 
        under this section shall be set aside only if the 
        finding is found to be unsupported by substantial 
        evidence on the record.
    (e) Failure To Obey Cease-and-Desist Orders.--A person who 
fails to obey a valid cease-and-desist order issued by the 
Secretary under this section, after an opportunity for a 
hearing, shall be subject to a civil penalty assessed by the 
Secretary of not less than $1,000 and not more than $10,000 for 
each offense. Each day during which the failure continues shall 
be considered to be a separate violation of the cease-and-
desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay a 
civil penalty imposed under this section by the Secretary, the 
Secretary shall refer the matter to the Attorney General for 
recovery of the amount assessed in the district court of the 
United States for any district in which the person resides or 
carries on business. In the action, the validity and 
appropriateness of the order imposing the civil penalty shall 
not be subject to review.
    (g) Additional Remedies.--The remedies provided in this 
section shall be in addition to, and not exclusive of, other 
remedies that may be available.

SEC. 521. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such 
investigations as the Secretary considers necessary--
            (1) for the effective administration of this 
        subtitle; or
            (2) to determine whether any person subject to this 
        subtitle has engaged, or is about engage, in any action 
        that constitutes or will constitute a violation of this 
        subtitle or any order or regulation issued under this 
        subtitle.
    (b) Subpoenas, Oaths, and Affirmations.--For the purpose of 
any investigation under subsection (a), the Secretary may 
administer oaths and affirmations, subpoena witnesses, compel 
the attendance of witnesses, take evidence, and require the 
production of any records or documents that are relevant to the 
inquiry. The attendance of witnesses and the production of 
records or documents may be required from any place in the 
United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal 
to obey a subpoena issued to, any person, the Secretary may 
invoke the aid of any court of the United States within the 
jurisdiction of which the investigation or proceeding is 
carried on, or where the person resides or carries on business, 
in order to require the attendance and testimony of the person 
or the production of records or documents. The court may issue 
an order requiring the person to appear before the Secretary to 
produce records or documents or to give testimony regarding the 
matter under investigation.
    (d) Contempt.--Any failure to obey the order of the court 
may be punished by the court as a contempt of the court.
    (e) Process.--Process in any case under this section may be 
served in the judicial district in which the person resides or 
carries on business or wherever the person may be found.

SEC. 522. SUSPENSION OR TERMINATION.

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

SEC. 523. AMENDMENTS TO ORDERS.

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

SEC. 524. EFFECT ON OTHER LAWS.

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

SEC. 525. REGULATIONS.

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

SEC. 526. AUTHORIZATION OF APPROPRIATIONS.

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

                    Subtitle C--Canola and Rapeseed

SEC. 531. SHORT TITLE.

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

SEC. 532. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) canola and rapeseed products are an important 
        and nutritious part of the human diet;
            (2) the production of canola and rapeseed products 
        plays a significant role in the economy of the United 
        States in that--
                    (A) canola and rapeseed products are 
                produced by thousands of canola and rapeseed 
                producers and processed by numerous processing 
                entities; and
                    (B) canola and rapeseed products produced 
                in the United States are consumed by people 
                throughout the United States and foreign 
                countries;
            (3) canola, rapeseed, and canola and rapeseed 
        products should be readily available and marketed 
        efficiently to ensure that consumers have an adequate 
        supply of canola and rapeseed products at a reasonable 
        price;
            (4) the maintenance and expansion of existing 
        markets and development of new markets for canola, 
        rapeseed, and canola and rapeseed products are vital to 
        the welfare of canola and rapeseed producers and 
        processors and those persons concerned with marketing 
        canola, rapeseed, and canola and rapeseed products, as 
        well as to the general economy of the United States, 
        and are necessary to ensure the ready availability and 
        efficient marketing of canola, rapeseed, and canola and 
        rapeseed products;
            (5) there exist established State and national 
        organizations conducting canola and rapeseed research, 
        promotion, and consumer education programs that are 
        valuable to the efforts of promoting the consumption of 
        canola, rapeseed, and canola and rapeseed products;
            (6) the cooperative development, financing, and 
        implementation of a coordinated national program of 
        canola and rapeseed research, promotion, consumer 
        information, and industry information is necessary to 
        maintain and expand existing markets and develop new 
        markets for canola, rapeseed, and canola and rapeseed 
        products; and
            (7) canola, rapeseed, and canola and rapeseed 
        products move in interstate and foreign commerce, and 
        canola, rapeseed, and canola and rapeseed products that 
        do not move in interstate or foreign commerce directly 
        burden or affect interstate commerce in canola, 
        rapeseed, and canola and rapeseed products.
    (b) Policy.--It is the policy of this subtitle to establish 
an orderly procedure for developing, financing through 
assessments on domestically produced canola and rapeseed, and 
implementing a program of research, promotion, consumer 
information, and industry information designed to strengthen 
the position in the marketplace of the canola and rapeseed 
industry, to maintain and expand existing domestic and foreign 
markets and uses for canola, rapeseed, and canola and rapeseed 
products, and to develop new markets and uses for canola, 
rapeseed, and canola and rapeseed products.
    (c) Construction.--Nothing in this subtitle provides for 
the control of production or otherwise limits the right of 
individual producers to produce canola, rapeseed, or canola or 
rapeseed products.

SEC. 533. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National 
        Canola and Rapeseed Board established under section 
        535(b).
            (2) Canola; rapeseed.--The terms ``canola'' and 
        ``rapeseed'' mean any brassica plant grown in the 
        United States for the production of an oilseed, the oil 
        of which is used for a food or nonfood use.
            (3) Canola or rapeseed product.--The term ``canola 
        or rapeseed product'' means a product produced, in 
        whole or in part, from canola or rapeseed.
            (4) Commerce.--The term ``commerce'' includes 
        interstate, foreign, and intrastate commerce.
            (5) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member of the 
        Board has a direct or indirect financial interest in a 
        corporation, partnership, sole proprietorship, joint 
        venture, or other business entity dealing directly or 
        indirectly with the Board.
            (6) Consumer information.--The term ``consumer 
        information'' means information that will assist 
        consumers and other persons in making evaluations and 
        decisions regarding the purchase, preparation, and use 
        of canola, rapeseed, or canola or rapeseed products.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) First purchaser.--The term ``first purchaser'' 
        means--
                    (A) except as provided in subparagraph (B), 
                a person who buys or otherwise acquires canola, 
                rapeseed, or canola or rapeseed products 
                produced by a producer; or
                    (B) the Commodity Credit Corporation, in a 
                case in which canola or rapeseed is forfeited 
                to the Commodity Credit Corporation as 
                collateral for a loan issued under a price 
                support loan program administered by the 
                Commodity Credit Corporation.
            (9) Industry information.--The term ``industry 
        information'' means information or a program that will 
        lead to the development of new markets, new marketing 
        strategies, or increased efficiency for the canola and 
        rapeseed industry, or an activity to enhance the image 
        of the canola or rapeseed industry.
            (10) Industry member.--The term ``industry member'' 
        means a member of the canola and rapeseed industry who 
        represents--
                    (A) manufacturers of canola or rapeseed 
                products; or
                    (B) persons who commercially buy or sell 
                canola or rapeseed.
            (11) Marketing.--The term ``marketing'' means the 
        sale or other disposition of canola, rapeseed, or 
        canola or rapeseed products in a channel of commerce.
            (12) Order.--The term ``order'' means an order 
        issued under section 534.
            (13) Person.--The term ``person'' means an 
        individual, partnership, corporation, association, 
        cooperative, or any other legal entity.
            (14) Producer.--The term ``producer'' means a 
        person engaged in the growing of canola or rapeseed in 
        the United States who owns, or who shares the ownership 
        and risk of loss of, the canola or rapeseed.
            (15) Promotion.--The term ``promotion'' means an 
        action, including paid advertising, technical 
        assistance, or a trade servicing activity, to enhance 
        the image or desirability of canola, rapeseed, or 
        canola or rapeseed products in domestic and foreign 
        markets, or an activity designed to communicate to 
        consumers, processors, wholesalers, retailers, 
        government officials, or other persons information 
        relating to the positive attributes of canola, 
        rapeseed, or canola or rapeseed products or the 
        benefits of use or distribution of canola, rapeseed, or 
        canola or rapeseed products.
            (16) Research.--The term ``research'' means any 
        type of test, study, or analysis to advance the image, 
        desirability, marketability, production, product 
        development, quality, or functional or nutritional 
        value of canola, rapeseed, or canola or rapeseed 
        products, including research activity designed to 
        identify and analyze barriers to export sales of canola 
        or rapeseed produced in the United States.
            (17) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (18)  State.--The term ``State'' means any of the 
        50 States, the District of Columbia and the 
        Commonwealth of Puerto Rico.
            (19)  United states.--The term ``United States'' 
        means collectively the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.

SEC. 534. ISSUANCE AND AMENDMENT OF ORDERS.

    (a) In General.--Subject to subsection (b), the Secretary 
shall issue 1 or more orders under this subtitle applicable to 
producers and first purchasers of canola, rapeseed, or canola 
or rapeseed products. The order shall be national in scope. Not 
more than 1 order shall be in effect under this subtitle at any 
1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The 
        Secretary may propose the issuance of an order under 
        this subtitle, or an association of canola and rapeseed 
        producers or any other person that would be affected by 
        an order issued pursuant to this subtitle may request 
        the issuance of, and submit a proposal for, an order.
            (2) Notice and comment concerning proposed order.--
        Not later than 60 days after the receipt of a request 
        and proposal for an order pursuant to paragraph (1), or 
        whenever the Secretary determines to propose an order, 
        the Secretary shall publish a proposed order and give 
        due notice and opportunity for public comment on the 
        proposed order.
            (3) Issuance of order.--After notice and 
        opportunity for public comment are given as provided in 
        paragraph (2), the Secretary shall issue an order, 
        taking into consideration the comments received and 
        including in the order provisions necessary to ensure 
        that the order is in conformity with the requirements 
        of this subtitle. The order shall be issued and become 
        effective not later than 180 days following publication 
        of the proposed order.
    (c) Amendments.--The Secretary may amend an order issued 
under this section.

SEC. 535. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order issued under this subtitle shall 
contain the terms and conditions specified in this section.
    (b) Establishment and Membership of the National Canola and 
Rapeseed Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a 
        National Canola and Rapeseed Board to administer the 
        order.
            (2) Service to entire industry.--The Board shall 
        carry out programs and projects that will provide 
        maximum benefit to the canola and rapeseed industry in 
        all parts of the United States and only promote canola, 
        rapeseed, or canola or rapeseed products.
            (3) Board membership.--The Board shall consist of 
        15 members, including--
                    (A) 11 members who are producers, 
                including--
                            (i) 1 member from each of the 6 
                        geographic regions comprised of States 
                        where canola or rapeseed is produced, 
                        as determined by the Secretary; and
                            (ii) 5 members from the geographic 
                        regions referred to in clause (i), 
                        allocated according to the production 
                        in each region; and
                    (B) 4 members who are industry members, 
                including at least--
                            (i) 1 member who represents 
                        manufacturers of canola or rapeseed end 
                        products; and
                            (ii) 1 member who represents 
                        persons who commercially buy or sell 
                        canola or rapeseed.
            (4) Limitation on state residence.--There shall be 
        no more than 4 producer members of the Board from any 1 
        State.
            (5) Modifying board membership.--In accordance with 
        regulations approved by the Secretary, at least once 
        each 3 years and not more than once each 2 years, the 
        Board shall review the geographic distribution of 
        canola and rapeseed production throughout the United 
        States and, if warranted, recommend to the Secretary 
        that the Secretary--
                    (A) reapportion regions in order to reflect 
                the geographic distribution of canola and 
                rapeseed production; and
                    (B) reapportion the seats on the Board to 
                reflect the production in each region.
            (6) Certification of organizations.--
                    (A) In general.--For the purposes of 
                section 536, the eligibility of any State 
                organization to represent producers shall be 
                certified by the Secretary.
                    (B) Criteria.--The Secretary shall certify 
                any State organization that the Secretary 
                determines has a history of stability and 
                permanency and meets at least 1 of the 
                following criteria:
                            (i) Majority representation.--The 
                        total paid membership of the 
                        organization--
                                    (I) is comprised of at 
                                least a majority of canola or 
                                rapeseed producers; or
                                    (II) represents at least a 
                                majority of the canola or 
                                rapeseed producers in the 
                                State.
                            (ii) Substantial number of 
                        producers represented.--The 
                        organization represents a substantial 
                        number of producers that produce a 
                        substantial quantity of canola or 
                        rapeseed in the State.
                            (iii) Purpose.--The organization is 
                        a general farm or agricultural 
                        organization that has as a stated 
                        objective the promotion and development 
                        of the United States canola or rapeseed 
                        industry and the economic welfare of 
                        United States canola or rapeseed 
                        producers.
                    (C) Report.--The Secretary shall make a 
                certification under this paragraph on the basis 
                of a factual report submitted by the State 
                organization.
            (7) Terms of office.--
                    (A) In general.--A member of the Board 
                shall serve for a term of 3 years, except that 
                the members appointed to the initial Board 
                shall serve, proportionately, for terms of 1, 
                2, and 3 years, as determined by the Secretary.
                    (B) Limitation on terms.--No individual may 
                serve more than 2 consecutive 3-year terms as a 
                member.
                    (C) Termination of terms.--Notwithstanding 
                subparagraph (B), each member shall continue to 
                serve until a successor is appointed by the 
                Secretary.
            (8) Compensation.--A member of the Board shall 
        serve without compensation, but shall be reimbursed for 
        necessary and reasonable expenses incurred in the 
        performance of duties for and approved by the Board.
    (c) Powers and Duties of the Board.--The order shall define 
the powers and duties of the Board, which shall include the 
power and duty--
            (1) to administer the order in accordance with the 
        terms and conditions of the order;
            (2) to issue regulations to effectuate the terms 
        and conditions of the order;
            (3) to meet, organize, and select from among 
        members of the Board a chairperson, other officers, and 
        committees and subcommittees, as the Board determines 
        appropriate;
            (4) to establish working committees of persons 
        other than Board members;
            (5) to employ such persons, other than Board 
        members, as the Board considers necessary, and to 
        determine the compensation and define the duties of the 
        persons;
            (6) to prepare and submit for the approval of the 
        Secretary, when appropriate or necessary, a recommended 
        rate of assessment under section 536, and a fiscal 
        period budget of the anticipated expenses in the 
        administration of the order, including the probable 
        costs of all programs and projects;
            (7) to develop programs and projects, subject to 
        subsection (d);
            (8) to enter into contracts or agreements, subject 
        to subsection (e), to develop and carry out programs or 
        projects of research, promotion, industry information, 
        and consumer information;
            (9) to carry out research, promotion, industry 
        information, and consumer information projects, and to 
        pay the costs of the projects with assessments 
        collected under section 536;
            (10) to keep minutes, books, and records that 
        reflect the actions and transactions of the Board, and 
        promptly report minutes of each Board meeting to the 
        Secretary;
            (11) to appoint and convene, from time to time, 
        working committees comprised of producers, industry 
        members, and the public to assist in the development of 
        research, promotion, industry information, and consumer 
        information programs for canola, rapeseed, and canola 
        and rapeseed products;
            (12) to invest, pending disbursement under a 
        program or project, funds collected through assessments 
        authorized under section 536, or funds earned from 
        investments, only in--
                    (A) obligations of the United States or an 
                agency of the United States;
                    (B) general obligations of a State or a 
                political subdivision of a State;
                    (C) an interest-bearing account or 
                certificate of deposit of a bank that is a 
                member of the Federal Reserve System; or
                    (D) obligations fully guaranteed as to 
                principal and interest by the United States;
            (13) to receive, investigate, and report to the 
        Secretary complaints of violations of the order;
            (14) to furnish the Secretary with such information 
        as the Secretary may request;
            (15) to recommend to the Secretary amendments to 
        the order;
            (16) to develop and recommend to the Secretary for 
        approval such regulations as may be necessary for the 
        development and execution of programs or projects, or 
        as may otherwise be necessary, to carry out the order; 
        and
            (17) to provide the Secretary with advance notice 
        of meetings.
    (d) Programs and Budgets.--
            (1) Submission to secretary.--The order shall 
        provide that the Board shall submit to the Secretary 
        for approval any program or project of research, 
        promotion, consumer information, or industry 
        information. No program or project shall be implemented 
        prior to approval by the Secretary.
            (2) Budgets.--The order shall require the Board, 
        prior to the beginning of each fiscal year, or as may 
        be necessary after the beginning of a fiscal year, to 
        submit to the Secretary for approval budgets of 
        anticipated expenses and disbursements in the 
        implementation of the order, including projected costs 
        of research, promotion, consumer information, and 
        industry information programs and projects.
            (3) Incurring expenses.--The Board may incur such 
        expenses for programs or projects of research, 
        promotion, consumer information, or industry 
        information, and other expenses for the administration, 
        maintenance, and functioning of the Board as may be 
        authorized by the Secretary, including any 
        implementation, administrative, and referendum costs 
        incurred by the Department.
            (4) Paying expenses.--The funds to cover the 
        expenses referred to in paragraph (3) shall be paid by 
        the Board from assessments collected under section 536 
        or funds borrowed pursuant to paragraph (5).
            (5) Authority to borrow.--To meet the expenses 
        referred to in paragraph (3), the Board shall have the 
        authority to borrow funds, as approved by the 
        Secretary, for capital outlays and startup costs.
    (e) Contracts and Agreements.--
            (1) In general.--To ensure efficient use of funds, 
        the order shall provide that the Board may enter into a 
        contract or agreement for the implementation and 
        carrying out of a program or project of canola, 
        rapeseed, or canola or rapeseed products research, 
        promotion, consumer information, or industry 
        information, including a contract with a producer 
        organization, and for the payment of the costs with 
        funds received by the Board under the order.
            (2) Requirements.--A contract or agreement under 
        paragraph (1) shall provide that--
                    (A) the contracting party shall develop and 
                submit to the Board a program or project 
                together with a budget that shall show the 
                estimated costs to be incurred for the program 
                or project;
                    (B) the program or project shall become 
                effective on the approval of the Secretary; and
                    (C) the contracting party shall keep 
                accurate records of all transactions, account 
                for funds received and expended, make periodic 
                reports to the Board of activities conducted, 
                and make such other reports as the Board or the 
                Secretary may require.
            (3) Producer organizations.--The order shall 
        provide that the Board may contract with a producer 
        organization for any services required in addition to 
        the services described in paragraph (1). The contract 
        shall include provisions comparable to the provisions 
        required by paragraph (2).
    (f) Books and Records of the Board.--
            (1) In general.--The order shall require the Board 
        to--
                    (A) maintain such books and records (which 
                shall be available to the Secretary for 
                inspection and audit) as the Secretary may 
                prescribe;
                    (B) prepare and submit to the Secretary, 
                from time to time, such reports as the 
                Secretary may prescribe; and
                    (C) account for the receipt and 
                disbursement of all funds entrusted to the 
                Board.
            (2) Audits.--The Board shall cause the books and 
        records of the Board to be audited by an independent 
        auditor at the end of each fiscal year, and a report of 
        the audit to be submitted to the Secretary.
    (g) Prohibition.--
            (1) In general.--Subject to paragraph (2), the 
        Board shall not engage in any action to, nor shall any 
        funds received by the Board under this subtitle be used 
        to--
                    (A) influence legislation or governmental 
                action;
                    (B) engage in an action that would be a 
                conflict of interest;
                    (C) engage in advertising that is false or 
                misleading; or
                    (D) engage in promotion that would 
                disparage other commodities.
            (2) Action permitted.--Paragraph (1) does not 
        preclude--
                    (A) the development and recommendation of 
                amendments to the order;
                    (B) the communication to appropriate 
                government officials of information relating to 
                the conduct, implementation, or results of 
                promotion, research, consumer information, or 
                industry information activities under the 
                order; or
                    (C) any action designed to market canola or 
                rapeseed products directly to a foreign 
                government or political subdivision of a 
                foreign government.
    (h) Books and Records.--
            (1) In general.--The order shall require that each 
        producer, first purchaser, or industry member shall--
                    (A) maintain and submit to the Board any 
                reports considered necessary by the Secretary 
                to ensure compliance with this subtitle; and
                    (B) make available during normal business 
                hours, for inspection by employees of the Board 
                or Secretary, such books and records as are 
                necessary to carry out this subtitle, including 
                such records as are necessary to verify any 
                required reports.
            (2) Confidentiality.--
                    (A) In general.--Except as otherwise 
                provided in this subtitle, all information 
                obtained from books, records, or reports 
                required to be maintained under paragraph (1) 
                shall be kept confidential, and shall not be 
                disclosed to the public by any person.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed to the public 
                if--
                            (i) the Secretary considers the 
                        information relevant;
                            (ii) the information is revealed in 
                        a suit or administrative hearing 
                        brought at the direction or on the 
                        request of the Secretary or to which 
                        the Secretary or any officer of the 
                        Department is a party; and
                            (iii) the information relates to 
                        this subtitle.
                    (C) Misconduct.--A knowing disclosure of 
                confidential information in violation of 
                subparagraph (A) by an officer or employee of 
                the Board or Department, except as required by 
                other law or allowed under subparagraph (B) or 
                (D), shall be considered a violation of this 
                subtitle.
                    (D) General statements.--Nothing in this 
                paragraph prohibits--
                            (i) the issuance of general 
                        statements based on the reports of a 
                        number of persons subject to an order 
                        or statistical data collected from the 
                        reports, if the statements do not 
                        identify the information furnished by 
                        any person; or
                            (ii) the publication, by direction 
                        of the Secretary, of the name of a 
                        person violating the order, together 
                        with a statement of the particular 
                        provisions of the order violated by the 
                        person.
            (3) Availability of information for law 
        enforcement.--Information obtained under this subtitle 
        may be made available to another agency of the Federal 
        Government for a civil or criminal law enforcement 
        activity if the activity is authorized by law and if 
        the head of the agency has made a written request to 
        the Secretary specifying the particular information 
        desired and the law enforcement activity for which the 
        information is sought.
            (4) Penalty.--Any person knowingly violating this 
        subsection, on conviction, shall be subject to a fine 
        of not more than $1,000 or to imprisonment for not more 
        than 1 year, or both, and if an officer or employee of 
        the Board or the Department, shall be removed from 
        office or terminated from employment, as applicable.
            (5) Withholding of information.--Nothing in this 
        subtitle authorizes the withholding of information from 
        Congress.
    (i) Use of Assessments.--The order shall provide that the 
assessments collected under section 536 shall be used for 
payment of the expenses in implementing and administering this 
subtitle, with provision for a reasonable reserve, and to cover 
administrative costs incurred by the Secretary in implementing 
and administering this subtitle.
    (j) Other Terms and Conditions.--The order shall contain 
such other terms and conditions, not inconsistent with this 
subtitle, as are determined necessary by the Secretary to 
effectuate this subtitle.

SEC. 536. ASSESSMENTS.

    (a) In General.--
            (1) First purchasers.--During the effective period 
        of an order issued pursuant to this subtitle, 
        assessments shall be--
                    (A) levied on all canola or rapeseed 
                produced in the United States and marketed; and
                    (B) deducted from the payment made to a 
                producer for all canola or rapeseed sold to a 
                first purchaser.
            (2) Direct processing.--The order shall provide 
        that any person processing canola or rapeseed of that 
        person's own production and marketing the canola or 
        rapeseed, or canola or rapeseed products, shall remit 
        to the Board or a State organization certified to 
        represent producers under section 535(b)(6), in the 
        manner prescribed by the order, an assessment 
        established at a rate equivalent to the rate provided 
        for under subsection (d).
    (b) Limitation on Assessments.--No more than 1 assessment 
may be assessed under subsection (a) on any canola or rapeseed 
produced (as remitted by a first purchaser).
    (c) Remitting of Assessments.--
            (1) In general.--Assessments required under 
        subsection (a) shall be remitted to the Board by a 
        first purchaser. The Board shall use State 
        organizations certified to represent producers under 
        section 535(b)(6) to collect the assessments. If an 
        appropriate certified State organization does not exist 
        to collect an assessment, the assessment shall be 
        collected by the Board. There shall be only 1 certified 
        State organization in each State.
            (2) Times to remit assessment.--Each first 
        purchaser shall remit the assessment to the Board as 
        provided for in the order.
    (d) Assessment Rate.--
            (1) Initial rate.--The initial assessment rate 
        shall be 4 cents per hundredweight of canola or 
        rapeseed produced and marketed.
            (2) Increase.--The assessment rate may be increased 
        on recommendation by the Board to a rate not exceeding 
        10 cents per hundredweight of canola or rapeseed 
        produced and marketed in a State, unless--
                    (A) after the initial referendum is held 
                under section 537(a), the Board recommends an 
                increase above 10 cents per hundredweight; and
                    (B) the increase is approved in a 
                referendum under section 537(b).
            (3) Credit.--A producer who demonstrates to the 
        Board that the producer is participating in a program 
        of a State organization certified to represent 
        producers under section 535(b)(6) shall receive credit, 
        in determining the assessment due from the producer, 
        for contributions to the program of up to 2 cents per 
        hundredweight of canola or rapeseed marketed.
    (e) Late Payment Charge.--
            (1) In general.--There shall be a late payment 
        charge imposed on any person who fails to remit, on or 
        before the date provided for in the order, to the Board 
        the total amount for which the person is liable.
            (2) Amount of charge.--The amount of the late 
        payment charge imposed under paragraph (1) shall be 
        prescribed by the Board with the approval of the 
        Secretary.
    (f) Refund of Assessments From Escrow Account.--
            (1) Establishment of escrow account.--During the 
        period beginning on the date on which an order is first 
        issued under section 534(b)(3) and ending on the date 
        on which a referendum is conducted under section 
        537(a), the Board shall--
                    (A) establish and maintain an escrow 
                account to be used for assessment refunds; and
                    (B) place funds in the account in 
                accordance with paragraph (2).
            (2) Placement of funds in account.--The Board shall 
        place in the account, from assessments collected during 
        the period referred to in paragraph (1), an amount 
        equal to the product obtained by multiplying the total 
        amount of assessments collected during the period by 10 
        percent.
            (3) Right to receive refund.--The Board shall 
        refund to a producer the assessments paid by or on 
        behalf of the producer if--
                    (A) the producer is required to pay the 
                assessment;
                    (B) the producer does not support the 
                program established under this subtitle; and
                    (C) the producer demands the refund prior 
                to the conduct of the referendum under section 
                537(a).
            (4) Form of demand.--The demand shall be made in 
        accordance with such regulations, in such form, and 
        within such time period as prescribed by the Board.
            (5) Making of refund.--The refund shall be made on 
        submission of proof satisfactory to the Board that the 
        producer paid the assessment for which the refund is 
        demanded.
            (6) Proration.--If--
                    (A) the amount in the escrow account 
                required by paragraph (1) is not sufficient to 
                refund the total amount of assessments demanded 
                by eligible producers; and
                    (B) the order is not approved pursuant to 
                the referendum conducted under section 537(a);
        the Board shall prorate the amount of the refunds among 
        all eligible producers who demand a refund.
            (7) Program approved.--If the plan is approved 
        pursuant to the referendum conducted under section 
        537(a), all funds in the escrow account shall be 
        returned to the Board for use by the Board in 
        accordance with this subtitle.

SEC. 537. REFERENDA.

    (a) Initial Referendum.--
            (1) Requirement.--During the period ending 30 
        months after the date on which an order is first issued 
        under section 534(b)(3), the Secretary shall conduct a 
        referendum among producers who, during a representative 
        period as determined by the Secretary, have been 
        engaged in the production of canola or rapeseed for the 
        purpose of ascertaining whether the order then in 
        effect shall be continued.
            (2) Advance notice.--The Secretary shall, to the 
        extent practicable, provide broad public notice in 
        advance of any referendum. The notice shall be 
        provided, without advertising expenses, by means of 
        newspapers, county newsletters, the electronic media, 
        and press releases, through the use of notices posted 
        in State and county Cooperative State Research, 
        Education, and Extension Service offices and county 
        Consolidated Farm Service Agency offices, and by other 
        appropriate means specified in the order. The notice 
        shall contain information on when the referendum will 
        be held, registration and voting requirements, rules 
        regarding absentee voting, and other pertinent 
        information.
            (3) Approval of order.--The order shall be 
        continued only if the Secretary determines that the 
        order has been approved by not less than a majority of 
        the producers voting in the referendum.
            (4) Disapproval of order.--If continuation of the 
        order is not approved by a majority of the producers 
        voting in the referendum, the Secretary shall terminate 
        collection of assessments under the order within 180 
        days after the referendum and shall terminate the order 
        in an orderly manner as soon as practicable.
    (b) Additional Referenda.--
            (1) In general.--
                    (A) Requirement.--After the initial 
                referendum on an order, the Secretary shall 
                conduct additional referenda, as described in 
                subparagraph (C), if requested by a 
                representative group of producers, as described 
                in subparagraph (B).
                    (B) Representative group of producers.--An 
                additional referendum on an order shall be 
                conducted if requested by 10 percent or more of 
                the producers who, during a representative 
                period as determined by the Secretary, have 
                been engaged in the production of canola or 
                rapeseed.
                    (C) Eligible producers.--Each additional 
                referendum shall be conducted among all 
                producers who, during a representative period 
                as determined by the Secretary, have been 
                engaged in the production of canola or rapeseed 
                to determine whether the producers favor the 
                termination or suspension of the order.
            (2) Disapproval of order.--If the Secretary 
        determines, in a referendum conducted under paragraph 
        (1), that suspension or termination of the order is 
        favored by a majority of the producers voting in the 
        referendum, the Secretary shall suspend or terminate, 
        as appropriate, collection of assessments under the 
        order within 180 days after the determination, and 
        shall suspend or terminate the order, as appropriate, 
        in an orderly manner as soon as practicable after the 
        determination.
            (3) Opportunity to request additional referenda.--
                    (A) In general.--Beginning on the date that 
                is 5 years after the conduct of a referendum 
                under this subtitle, and every 5 years 
                thereafter, the Secretary shall provide canola 
                and rapeseed producers an opportunity to 
                request an additional referendum.
                    (B) Method of making request.--
                            (i) In-person requests.--To carry 
                        out subparagraph (A), the Secretary 
                        shall establish a procedure under which 
                        a producer may make a request for a 
                        reconfirmation referendum in person at 
                        a county Cooperative State Research, 
                        Education, and Extension Service office 
                        or a county Consolidated Farm Service 
                        Agency office during a period 
                        established by the Secretary, or as 
                        provided in clause (ii).
                            (ii) Mail-in requests.--In lieu of 
                        making a request in person, a producer 
                        may make a request by mail. To 
                        facilitate the submission of requests 
                        by mail, the Secretary may make mail-in 
                        request forms available to producers.
                    (C) Notifications.--The Secretary shall 
                publish a notice in the Federal Register, and 
                the Board shall provide written notification to 
                producers, not later than 60 days prior to the 
                end of the period established under 
                subparagraph (B)(i) for an in-person request, 
                of the opportunity of producers to request an 
                additional referendum. The notification shall 
                explain the right of producers to an additional 
                referendum, the procedure for a referendum, the 
                purpose of a referendum, and the date and 
                method by which producers may act to request an 
                additional referendum under this paragraph. The 
                Secretary shall take such other action as the 
                Secretary determines is necessary to ensure 
                that producers are made aware of the 
                opportunity to request an additional 
                referendum.
                    (D) Action by secretary.--As soon as 
                practicable following the submission of a 
                request for an additional referendum, the 
                Secretary shall determine whether a sufficient 
                number of producers have requested the 
                referendum, and take such steps as are 
                necessary to conduct the referendum, as 
                required under paragraph (1).
                    (E) Time limit.--An additional referendum 
                requested under the procedures provided in this 
                paragraph shall be conducted not later than 1 
                year after the Secretary determines that a 
                representative group of producers, as described 
                in paragraph (1)(B), have requested the conduct 
                of the referendum.
    (c) Procedures.--
            (1) Reimbursement of secretary.--The Secretary 
        shall be reimbursed from assessments collected by the 
        Board for any expenses incurred by the Secretary in 
        connection with the conduct of an activity required 
        under this section.
            (2) Date.--Each referendum shall be conducted for a 
        reasonable period of time not to exceed 3 days, 
        established by the Secretary, under a procedure under 
        which producers intending to vote in the referendum 
        shall certify that the producers were engaged in the 
        production of canola, rapeseed, or canola or rapeseed 
        products during the representative period and, at the 
        same time, shall be provided an opportunity to vote in 
        the referendum.
            (3) Place.--Referenda under this section shall be 
        conducted at locations determined by the Secretary. On 
        request, absentee mail ballots shall be furnished by 
        the Secretary in a manner prescribed by the Secretary.

SEC. 538. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order 
        issued under this subtitle may file with the Secretary 
        a petition--
                    (A) stating that the order, a provision of 
                the order, or an obligation imposed in 
                connection with the order is not established in 
                accordance with law; and
                    (B) requesting a modification of the order 
                or an exemption from the order.
            (2) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under 
        paragraph (1), in accordance with regulations issued by 
        the Secretary.
            (3) Ruling.--After a hearing under paragraph (2), 
        the Secretary shall issue a ruling on the petition that 
        is the subject of the hearing, which shall be final if 
        the ruling is in accordance with applicable law.
            (4) Limitation on petition.--Any petition filed 
        under this subtitle challenging an order, or any 
        obligation imposed in connection with an order, shall 
        be filed not later than 2 years after the effective 
        date of the order or imposition of the obligation.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which the person 
        who is a petitioner under subsection (a) resides or 
        carries on business shall have jurisdiction to review a 
        ruling on the petition, if a complaint is filed by the 
        person not later than 20 days after the date of the 
        entry of a ruling by the Secretary under subsection 
        (a)(3).
            (2) Process.--Service of process in a proceeding 
        under paragraph (1) shall be conducted in accordance 
        with the Federal Rules of Civil Procedure.
            (3) Remands.--If the court determines, under 
        paragraph (1), that a ruling issued under subsection 
        (a)(3) is not in accordance with applicable law, the 
        court shall remand the matter to the Secretary with 
        directions either--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in 
                the opinion of the court, the law requires.
            (4) Enforcement.--The pendency of proceedings 
        instituted under subsection (a) shall not impede, 
        hinder, or delay the Attorney General or the Secretary 
        from taking any action under section 539.

SEC. 539. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States 
are vested with jurisdiction specifically to enforce, and to 
prevent and restrain any person from violating, an order or 
regulation made or issued under this subtitle.
    (b) Referral to Attorney General.--A civil action 
authorized to be commenced under this section shall be referred 
to the Attorney General for appropriate action, except that the 
Secretary shall not be required to refer to the Attorney 
General a violation of this subtitle if the Secretary believes 
that the administration and enforcement of this subtitle would 
be adequately served by providing a suitable written notice or 
warning to the person committing the violation or by 
administrative action under subsection (c).
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--
                    (A) In general.--Any person who willfully 
                violates any provision of an order or 
                regulation issued by the Secretary under this 
                subtitle, or who fails or refuses to pay, 
                collect, or remit an assessment or fee required 
                of the person under an order or regulation, may 
                be assessed--
                            (i) a civil penalty by the 
                        Secretary of not more than $1,000 for 
                        each violation; and
                            (ii) in the case of a willful 
                        failure to pay, collect, or remit an 
                        assessment as required by an order or 
                        regulation, an additional penalty equal 
                        to the amount of the assessment.
                    (B) Separate offense.--Each violation under 
                subparagraph (A) shall be a separate offense.
            (2) Cease-and-desist orders.--In addition to, or in 
        lieu of, a civil penalty under paragraph (1), the 
        Secretary may issue an order requiring a person to 
        cease and desist from continuing a violation.
            (3) Notice and hearing.--No penalty shall be 
        assessed, or cease-and-desist order issued, by the 
        Secretary under this subsection unless the person 
        against whom the penalty is assessed or the cease-and-
        desist order is issued is given notice and opportunity 
        for a hearing before the Secretary with respect to the 
        violation.
            (4) Finality.--The order of the Secretary assessing 
        a penalty or imposing a cease-and-desist order under 
        this subsection shall be final and conclusive unless 
        the affected person files an appeal of the order in the 
        appropriate district court of the United States in 
        accordance with subsection (d).
    (d) Review by District Court.--
            (1) Commencement of action.--Any person who has 
        been determined to be in violation of this subtitle, or 
        against whom a civil penalty has been assessed or a 
        cease-and-desist order issued under subsection (c), may 
        obtain review of the penalty or cease-and-desist order 
        by--
                    (A) filing, within the 30-day period 
                beginning on the date the penalty is assessed 
                or cease-and-desist order issued, a notice of 
                appeal in--
                            (i) the district court of the 
                        United States for the district in which 
                        the person resides or carries on 
                        business; or
                            (ii) the United States District 
                        Court for the District of Columbia; and
                    (B) simultaneously sending a copy of the 
                notice by certified mail to the Secretary.
            (2) Record.--The Secretary shall file promptly, in 
        the appropriate court referred to in paragraph (1), a 
        certified copy of the record on which the Secretary 
        determined that the person committed the violation.
            (3) Standard of review.--A finding of the Secretary 
        under this section shall be set aside only if the 
        finding is found to be unsupported by substantial 
        evidence.
    (e) Failure To Obey Cease-and-Desist Orders.--Any person 
who fails to obey a cease-and-desist order issued under this 
section after the cease-and-desist order has become final and 
unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, 
shall be subject to a civil penalty assessed by the Secretary, 
after opportunity for a hearing and for judicial review under 
the procedures specified in subsections (c) and (d), of not 
more than $5,000 for each offense. Each day during which the 
failure continues shall be considered as a separate violation 
of the cease-and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty under this section after the 
assessment has become a final and unappealable order, or after 
the appropriate United States district court has entered final 
judgment in favor of the Secretary, the Secretary shall refer 
the matter to the Attorney General for recovery of the amount 
assessed in the district court of the United States for any 
district in which the person resides or carries on business. In 
an action for recovery, the validity and appropriateness of the 
final order imposing the civil penalty shall not be subject to 
review.
    (g) Additional Remedies.--The remedies provided in this 
subtitle shall be in addition to, and not exclusive of, other 
remedies that may be available.

SEC. 540. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such 
investigations as the Secretary considers necessary--
            (1) for the effective administration of this 
        subtitle; and
            (2) to determine whether any person has engaged or 
        is engaging in an act that constitutes a violation of 
        this subtitle, or an order, rule, or regulation issued 
        under this subtitle.
    (b) Subpoenas, Oaths, and Affirmations.--
            (1) In general.--For the purpose of an 
        investigation under subsection (a), the Secretary may 
        administer oaths and affirmations, subpoena witnesses, 
        take evidence, and issue subpoenas to require the 
        production of any records that are relevant to the 
        inquiry. The attendance of witnesses and the production 
        of records may be required from any place in the United 
        States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 538 or 539, 
        the presiding officer is authorized to administer oaths 
        and affirmations, subpoena and compel the attendance of 
        witnesses, take evidence, and require the production of 
        any records that are relevant to the inquiry. The 
        attendance of witnesses and the production of records 
        may be required from any place in the United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal 
to obey a subpoena issued to, any person, the Secretary may 
invoke the aid of any court of the United States within the 
jurisdiction of which the investigation or proceeding is 
carried on, or where the person resides or carries on business, 
in order to enforce a subpoena issued by the Secretary under 
subsection (b). The court may issue an order requiring the 
person to comply with the subpoena.
    (d) Contempt.--A failure to obey an order of the court 
under this section may be punished by the court as contempt of 
the court.
    (e) Process.--Process may be served on a person in the 
judicial district in which the person resides or carries on 
business or wherever the person may be found.
    (f) Hearing Site.--The site of a hearing held under section 
538 or 539 shall be in the judicial district where the person 
affected by the hearing resides or has a principal place of 
business.

SEC. 541. SUSPENSION OR TERMINATION.

    The Secretary shall, whenever the Secretary finds that an 
order or a provision of an order obstructs or does not tend to 
effectuate the declared policy of this subtitle, suspend or 
terminate the operation of the order or provision. The 
suspension or termination of an order shall not be considered 
an order within the meaning of this subtitle.

SEC. 542. REGULATIONS.

    The Secretary may issue such regulations as are necessary 
to carry out this subtitle.

SEC. 543. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
for each fiscal year such sums as are necessary to carry out 
this subtitle.
    (b) Administrative Expenses.--Funds appropriated under 
subsection (a) shall not be available for payment of the 
expenses or expenditures of the Board in administering a 
provision of an order issued under this subtitle.

                         Subtitle D--Kiwifruit

SEC. 551. SHORT TITLE.

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

SEC. 552. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) domestically produced kiwifruit are grown by 
        many individual producers;
            (2) virtually all domestically produced kiwifruit 
        are grown in the State of California, although there is 
        potential for production in many other areas of the 
        United States;
            (3) kiwifruit move in interstate and foreign 
        commerce, and kiwifruit that do not move in channels of 
        commerce directly burden or affect interstate commerce;
            (4) in recent years, large quantities of kiwifruit 
        have been imported into the United States;
            (5) the maintenance and expansion of existing 
        domestic and foreign markets for kiwifruit, and the 
        development of additional and improved markets for 
        kiwifruit, are vital to the welfare of kiwifruit 
        producers and other persons concerned with producing, 
        marketing, and processing kiwifruit;
            (6) a coordinated program of research, promotion, 
        and consumer information regarding kiwifruit is 
        necessary for the maintenance and development of the 
        markets; and
            (7) kiwifruit producers, handlers, and importers 
        are unable to implement and finance such a program 
        without cooperative action.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to authorize the establishment of an orderly 
        procedure for the development and financing (through an 
        assessment) of an effective and coordinated program of 
        research, promotion, and consumer information regarding 
        kiwifruit;
            (2) to use the program to strengthen the position 
        of the kiwifruit industry in domestic and foreign 
        markets and maintain, develop, and expand markets for 
        kiwifruit; and
            (3) to treat domestically produced kiwifruit and 
        imported kiwifruit equitably.

SEC. 553. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National 
        Kiwifruit Board established under section 555.
            (2) Consumer information.--The term ``consumer 
        information'' means any action taken to provide 
        information to, and broaden the understanding of, the 
        general public regarding the consumption, use, 
        nutritional attributes, and care of kiwifruit.
            (3) Exporter.--The term ``exporter'' means any 
        person from outside the United States who exports 
        kiwifruit into the United States.
            (4) Handler.--The term ``handler'' means any 
        person, excluding a common carrier, engaged in the 
        business of buying and selling, packing, marketing, or 
        distributing kiwifruit as specified in the order.
            (5) Importer.--The term ``importer'' means any 
        person who imports kiwifruit into the United States.
            (6) Kiwifruit.--The term ``kiwifruit'' means all 
        varieties of fresh kiwifruit grown in or imported into 
        the United States.
            (7) Marketing.--The term ``marketing'' means the 
        sale or other disposition of kiwifruit into interstate, 
        foreign, or intrastate commerce by buying, marketing, 
        distribution, or otherwise placing kiwifruit into 
        commerce.
            (8) Order.--The term ``order'' means a kiwifruit 
        research, promotion, and consumer information order 
        issued by the Secretary under section 554.
            (9) Person.--The term ``person'' means any 
        individual, group of individuals, partnership, 
        corporation, association, cooperative, or other legal 
        entity.
            (10) Processing.--The term ``processing'' means 
        canning, fermenting, distilling, extracting, 
        preserving, grinding, crushing, or in any manner 
        changing the form of kiwifruit for the purpose of 
        preparing the kiwifruit for market or marketing the 
        kiwifruit.
            (11) Producer.--The term ``producer'' means any 
        person who grows kiwifruit in the United States for 
        sale in commerce.
            (12) Promotion.--The term ``promotion'' means any 
        action taken under this subtitle (including paid 
        advertising) to present a favorable image of kiwifruit 
        to the general public for the purpose of improving the 
        competitive position of kiwifruit and stimulating the 
        sale of kiwifruit.
            (13) Research.--The term ``research'' means any 
        type of research relating to the use, nutritional 
        value, and marketing of kiwifruit conducted for the 
        purpose of advancing the image, desirability, 
        marketability, or quality of kiwifruit.
            (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (15) United states.--The term ``United States'' 
        means the 50 States of the United States, the District 
        of Columbia, and the Commonwealth of Puerto Rico.

SEC. 554. ISSUANCE OF ORDERS.

    (a) Issuance.--To effectuate the purposes of this subtitle 
specified in section 552(b), the Secretary shall issue an order 
applicable to producers, handlers, and importers of kiwifruit. 
Any such order shall be national in scope. Not more than 1 
order shall be in effect under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal for issuance of order.--Any person 
        that will be affected by this subtitle may request the 
        issuance of, and submit a proposal for, an order under 
        this subtitle.
            (2) Proposed order.--Not later than 90 days after 
        the receipt of a request and proposal for an order, the 
        Secretary shall publish a proposed order and give due 
        notice and opportunity for public comment on the 
        proposed order.
            (3) Issuance of order.--After notice and 
        opportunity for public comment are provided under 
        paragraph (2), the Secretary shall issue an order, 
        taking into consideration the comments received and 
        including in the order provisions necessary to ensure 
        that the order is in conformity with this subtitle.
    (c) Amendments.--The Secretary may amend any order issued 
under this section. The provisions of this subtitle applicable 
to an order shall be applicable to an amendment to an order.

SEC. 555. NATIONAL KIWIFRUIT BOARD.

    (a) Membership.--An order issued by the Secretary under 
section 554 shall provide for the establishment of a National 
Kiwifruit Board that consists of the following 11 members:
            (1) 6 members who are producers (or representatives 
        of producers) and who are not exempt from an assessment 
        under section 556(b).
            (2) 4 members who are importers (or representatives 
        of importers) and who are not exempt from an assessment 
        under section 556(b) or are exporters (or 
        representatives of exporters).
            (3) 1 member appointed from the general public.
    (b) Adjustment of Membership.--
            (1) In general.--Subject to the 11-member limit and 
        to paragraph (2), the Secretary may adjust membership 
        on the Board to accommodate changes in production and 
        import levels of kiwifruit.
            (2) Number of producer members.--Producers shall 
        comprise not less than 51 percent of the membership of 
        the Board.
    (c) Appointment and Nomination.--
            (1) Appointment.--The Secretary shall appoint the 
        members of the Board from nominations submitted in 
        accordance with this subsection.
            (2) Producers.--The members referred to in 
        subsection (a)(1) shall be appointed from individuals 
        nominated by producers.
            (3) Importers and exporters.--The members referred 
        to in subsection (a)(2) shall be appointed from 
        individuals nominated by importers or exporters.
            (4) Public representative.--The public 
        representative shall be appointed from nominations 
        submitted by other members of the Board.
            (5) Failure to nominate.--If producers, importers, 
        and exporters fail to nominate individuals for 
        appointment, the Secretary may appoint members and 
        alternates on a basis provided for in the order. If the 
        Board fails to nominate a public representative, the 
        member may be appointed by the Secretary without a 
        nomination.
    (d) Alternates.--The Secretary shall appoint an alternate 
for each member of the Board. An alternate shall--
            (1) be appointed in the same manner as the member 
        for whom the individual is an alternate; and
            (2) serve on the Board if the member is absent from 
        a meeting or is disqualified under subsection (f).
    (e) Terms.--A member of the Board shall be appointed for a 
term of 3 years. No member may serve more than 2 consecutive 3-
year terms, except that of the members first appointed--
            (1) 5 members shall be appointed for a term of 2 
        years; and
            (2) 6 members shall be appointed for a term of 3 
        years.
    (f) Disqualification.--If a member or alternate of the 
Board who was appointed as a producer, importer, exporter, or 
public representative member ceases to belong to the group for 
which the member was appointed, the member or alternate shall 
be disqualified from serving on the Board.
    (g) Compensation.--A member or alternate of the Board shall 
serve without pay.
    (h) General Powers and Duties.--The Board shall--
            (1) administer an order issued by the Secretary 
        under section 554, and an amendment to the order, in 
        accordance with the order and amendment and this 
        subtitle;
            (2) prescribe rules and regulations to carry out 
        the order;
            (3) meet, organize, and select from among members 
        of the Board a chairperson, other officers, and 
        committees and subcommittees, as the Board determines 
        appropriate;
            (4) receive, investigate, and report to the 
        Secretary accounts of violations of the order;
            (5) make recommendations to the Secretary with 
        respect to an amendment that should be made to the 
        order; and
            (6) employ or contract with a manager and staff to 
        assist in administering the order, except that, to 
        reduce administrative costs and increase efficiency, 
        the Board shall seek, to the extent practicable, to 
        employ or contract with personnel who are already 
        associated with organizations involved in promoting 
        kiwifruit that are chartered by a State, the District 
        of Columbia, or the Commonwealth of Puerto Rico.

SEC. 556. REQUIRED TERMS IN ORDER.

    (a) Budgets and Plans.--
            (1) In general.--An order issued under section 554 
        shall provide for periodic budgets and plans in 
        accordance with this subsection.
            (2) Budgets.--The Board shall prepare and submit to 
        the Secretary a budget prior to the beginning of the 
        fiscal year of the anticipated expenses and 
        disbursements of the Board in the administration of the 
        order, including probable costs of research, promotion, 
        and consumer information. A budget shall become 
        effective on a \2/3\-vote of a quorum of the Board and 
        approval by the Secretary.
            (3) Plans.--Each budget shall include a plan for 
        research, promotion, and consumer information regarding 
        kiwifruit. A plan under this paragraph shall become 
        effective on approval by the Secretary. The Board may 
        enter into contracts and agreements, on approval by the 
        Secretary, for--
                    (A) the development and carrying out of the 
                plan; and
                    (B) the payment of the cost of the plan, 
                with funds collected pursuant to this subtitle.
    (b) Assessments.--
            (1) In general.--The order shall provide for the 
        imposition and collection of assessments with regard to 
        the production and importation of kiwifruit in 
        accordance with this subsection.
            (2) Rate.--The assessment rate shall be the rate 
        that is recommended by a \2/3\-vote of a quorum of the 
        Board and approved by the Secretary, except that the 
        rate shall not exceed $0.10 per 7-pound tray of 
        kiwifruit or an equivalent rate.
            (3) Collection by first handlers.--Except as 
        provided in paragraph (5), the first handler of 
        kiwifruit shall--
                    (A) be responsible for the collection from 
                the producer, and payment to the Board, of 
                assessments required under this subsection; and
                    (B) maintain a separate record of the 
                kiwifruit of each producer whose kiwifruit are 
                so handled, including the kiwifruit owned by 
                the handler.
            (4) Importers.--The assessment on imported 
        kiwifruit shall be paid by the importer to the United 
        States Customs Service at the time of entry into the 
        United States and shall be remitted to the Board.
            (5) Exemption from assessment.--The following 
        persons or activities are exempt from an assessment 
        under this subsection:
                    (A) A producer who produces less than 500 
                pounds of kiwifruit per year.
                    (B) An importer who imports less than 
                10,000 pounds of kiwifruit per year.
                    (C) A sale of kiwifruit made directly from 
                the producer to a consumer for a purpose other 
                than resale.
                    (D) The production or importation of 
                kiwifruit for processing.
            (6) Claim of exemption.--To claim an exemption 
        under paragraph (5) for a particular year, a person 
        shall--
                    (A) submit an application to the Board 
                stating the basis for the exemption and 
                certifying that the quantity of kiwifruit 
                produced, imported, or sold by the person will 
                not exceed any poundage limitation required for 
                the exemption in the year; or
                    (B) be on a list of approved processors 
                developed by the Board.
    (c) Use of Assessments.--
            (1) Authorized uses.--The order shall provide that 
        funds paid to the Board as assessments under subsection 
        (b) may be used by the Board--
                    (A) to pay for research, promotion, and 
                consumer information described in the budget of 
                the Board under subsection (a) and for other 
                expenses incurred by the Board in the 
                administration of an order;
                    (B) to pay such other expenses for the 
                administration, maintenance, and functioning of 
                the Board (including any enforcement efforts 
                for the collection of assessments) as may be 
                authorized by the Secretary, including interest 
                and penalties for late payments; and
                    (C) to fund a reserve established under 
                section 557(d).
            (2) Required uses.--The order shall provide that 
        funds paid to the Board as assessments under subsection 
        (b) shall be used by the Board--
                    (A) to pay the expenses incurred by the 
                Secretary, including salaries and expenses of 
                Federal Government employees, in implementing 
                and administering the order; and
                    (B) to reimburse the Secretary for any 
                expenses incurred by the Secretary in 
                conducting referenda under this subtitle.
            (3) Limitation on use of assessments.--Except for 
        the first year of operation of the Board, expenses for 
        the administration, maintenance, and functioning of the 
        Board may not exceed 30 percent of the budget for a 
        year.
    (d) False Claims.--The order shall provide that any 
promotion funded with assessments collected under subsection 
(b) may not make--
            (1) any false claims on behalf of kiwifruit; and
            (2) any false statements with respect to the 
        attributes or use of any product that competes with 
        kiwifruit for sale in commerce.
    (e) Prohibition on Use of Funds.--The order shall provide 
that funds collected by the Board under this subtitle through 
assessments may not, in any manner, be used for the purpose of 
influencing legislation or governmental policy or action, 
except for making recommendations to the Secretary as provided 
for under this subtitle.
    (f) Books, Records, and Reports.--
            (1) Board.--The order shall require the Board--
                    (A) to maintain books and records with 
                respect to the receipt and disbursement of 
                funds received by the Board;
                    (B) to submit to the Secretary from time to 
                time such reports as the Secretary may require 
                for appropriate accounting; and
                    (C) to submit to the Secretary at the end 
                of each fiscal year a complete audit report by 
                an independent auditor regarding the activities 
                of the Board during the fiscal year.
            (2) Others.--To make information and data available 
        to the Board and the Secretary that is appropriate or 
        necessary for the effectuation, administration, or 
        enforcement of this subtitle (or any order or 
        regulation issued under this subtitle), the order shall 
        require handlers and importers who are responsible for 
        the collection, payment, or remittance of assessments 
        under subsection (b)--
                    (A) to maintain and make available for 
                inspection by the employees and agents of the 
                Board and the Secretary such books and records 
                as may be required by the order; and
                    (B) to file, at the times and in the manner 
                and content prescribed by the order, reports 
                regarding the collection, payment, or 
                remittance of the assessments.
    (g) Confidentiality.--
            (1) In general.--The order shall require that all 
        information obtained pursuant to subsection (f)(2) be 
        kept confidential by all officers, employees, and 
        agents of the Department of Agriculture and of the 
        Board. Only such information as the Secretary considers 
        relevant shall be disclosed to the public and only in a 
        suit or administrative hearing, brought at the request 
        of the Secretary or to which the Secretary or any 
        officer of the United States is a party, involving the 
        order with respect to which the information was 
        furnished or acquired.
            (2) Limitations.--Nothing in this subsection 
        prohibits--
                    (A) the issuance of general statements 
                based on the reports of a number of handlers 
                and importers subject to an order, if the 
                statements do not identify the information 
                furnished by any person; or
                    (B) the publication, by direction of the 
                Secretary, of the name of any person violating 
                an order issued under section 554(a), together 
                with a statement of the particular provisions 
                of the order violated by the person.
            (3) Penalty.--Any person who willfully violates 
        this subsection, on conviction, shall be subject to a 
        fine of not more than $1,000 or to imprisonment for not 
        more than 1 year, or both, and, if the person is a 
        member, officer, or agent of the board or an employee 
        of the Department of Agriculture, shall be removed from 
        office.
    (h) Withholding of Information.--Nothing in this subtitle 
authorizes the withholding of information from Congress.

SEC. 557. PERMISSIVE TERMS IN ORDER.

    (a) Permissive Terms.--On the recommendation of the Board 
and with the approval of the Secretary, an order issued under 
section 554 may include the terms and conditions specified in 
this section and such additional terms and conditions as the 
Secretary considers necessary to effectuate the other 
provisions of the order and are incidental to, and not 
inconsistent with, this subtitle.
    (b) Alternative Payment and Reporting Schedules.--The order 
may authorize the Board to designate different handler payment 
and reporting schedules to recognize differences in marketing 
practices and procedures.
    (c) Working Groups.--The order may authorize the Board to 
convene working groups drawn from producers, handlers, 
importers, exporters, or the general public and utilize the 
expertise of the groups to assist in the development of 
research and marketing programs for kiwifruit.
    (d) Reserve Funds.--The order may authorize the Board to 
accumulate reserve funds from assessments collected pursuant to 
section 556(b) to permit an effective and continuous 
coordinated program of research, promotion, and consumer 
information in years in which production and assessment income 
may be reduced, except that any reserve fund may not exceed the 
amount budgeted for operation of this subtitle for 1 year.
    (e) Promotion Activities Outside United States.--The order 
may authorize the Board to use, with the approval of the 
Secretary, funds collected under section 556(b) and funds from 
other sources for the development and expansion of sales in 
foreign markets of kiwifruit produced in the United States.

SEC. 558. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may 
        file with the Secretary a petition--
                    (A) stating that the order, a provision of 
                the order, or an obligation imposed in 
                connection with the order is not in accordance 
                with law; and
                    (B) requesting a modification of the order 
                or an exemption from the order.
            (2) Hearings.--A person submitting a petition under 
        paragraph (1) shall be given an opportunity for a 
        hearing on the petition, in accordance with regulations 
        issued by the Secretary.
            (3) Ruling.--After the hearing, the Secretary shall 
        issue a ruling on the petition which shall be final if 
        the petition is in accordance with law.
            (4) Limitation on petition.--Any petition filed 
        under this subtitle challenging an order, or any 
        obligation imposed in connection with an order, shall 
        be filed not later than 2 years after the effective 
        date of the order or imposition of the obligation.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which the person 
        who is a petitioner under subsection (a) resides or 
        carries on business is vested with jurisdiction to 
        review the ruling on the petition of the person, if a 
        complaint for that purpose is filed not later than 20 
        days after the date of the entry of a ruling by the 
        Secretary under subsection (a).
            (2) Process.--Service of process in the proceedings 
        shall be conducted in accordance with the Federal Rules 
        of Civil Procedure.
            (3) Remands.--If the court determines that the 
        ruling is not in accordance with law, the court shall 
        remand the matter to the Secretary with directions--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further action as, in the 
                opinion of the court, the law requires.
            (4) Enforcement.--The pendency of a proceeding 
        instituted pursuant to subsection (a) shall not impede, 
        hinder, or delay the Attorney General or the Secretary 
        from obtaining relief pursuant to section 559.

SEC. 559. ENFORCEMENT.

    (a) Jurisdiction.--A district court of the United States 
shall have jurisdiction specifically to enforce, and to prevent 
and restrain any person from violating, any order or regulation 
made or issued by the Secretary under this subtitle.
    (b) Referral to Attorney General.--A civil action 
authorized to be brought under this section shall be referred 
to the Attorney General for appropriate action, except that the 
Secretary is not required to refer to the Attorney General a 
violation of this subtitle, or any order or regulation issued 
under this subtitle, if the Secretary believes that the 
administration and enforcement of this subtitle would be 
adequately served by administrative action under subsection (c) 
or suitable written notice or warning to the person committing 
the violation.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--Any person who willfully 
        violates any provision of any order or regulation 
        issued by the Secretary under this subtitle, or who 
        fails or refuses to pay, collect, or remit any 
        assessment or fee duly required of the person under the 
        order or regulation, may be assessed a civil penalty by 
        the Secretary of not less than $500 nor more than 
        $5,000 for each such violation. Each violation shall be 
        a separate offense.
            (2) Cease-and-desist orders.--In addition to or in 
        lieu of the civil penalty, the Secretary may issue an 
        order requiring the person to cease and desist from 
        continuing the violation.
            (3) Notice and hearing.--No order assessing a civil 
        penalty or cease-and-desist order may be issued by the 
        Secretary under this subsection unless the Secretary 
        gives the person against whom the order is issued 
        notice and opportunity for a hearing on the record 
        before the Secretary with respect to the violation.
            (4) Finality.--The order of the Secretary assessing 
        a penalty or imposing a cease-and-desist order shall be 
        final and conclusive unless the person against whom the 
        order is issued files an appeal of the order in the 
        appropriate district court of the United States, in 
        accordance with subsection (d).
    (d) Review by United States District Court.--
            (1) Commencement of action.--Any person against 
        whom a violation is found and a civil penalty assessed 
        or cease-and-desist order issued under subsection (c) 
        may obtain review of the penalty or cease-and-desist 
        order in the district court of the United States for 
        the district in which the person resides or carries on 
        business, or the United States District Court for the 
        District of Columbia, by--
                    (A) filing a notice of appeal in the court 
                not later than 30 days after the date on which 
                the penalty is assessed or cease-and-desist 
                order issued; and
                    (B) simultaneously sending a copy of the 
                notice by certified mail to the Secretary.
            (2) Record.--The Secretary shall promptly file in 
        the court a certified copy of the record on which the 
        Secretary found that the person committed the 
        violation.
            (3) Standard of review.--A finding of the Secretary 
        shall be set aside only if the finding is found to be 
        unsupported by substantial evidence.
    (e) Failure To Obey Cease-and-Desist Orders.--Any person 
who fails to obey a cease-and-desist order issued by the 
Secretary after the cease-and-desist order has become final and 
unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, 
shall be subject to a civil penalty assessed by the Secretary, 
after opportunity for a hearing and for judicial review under 
the procedures specified in subsections(c) and (d), of not more 
than $500 for each offense. Each day during which the failure continues 
shall be considered a separate violation of the cease-and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty after the assessment has become a 
final and unappealable order issued by the Secretary, or after 
the appropriate United States district court has entered final 
judgment in favor of the Secretary, the Secretary shall refer 
the matter to the Attorney General for recovery of the amount 
assessed in the district court of the United States for any 
district in which the person resides or carries on business. In 
an action for recovery, the validity and appropriateness of the 
final order imposing the civil penalty shall not be subject to 
review.

SEC. 560. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) In General.--The Secretary may make such investigations 
as the Secretary considers necessary--
            (1) for the effective carrying out of the 
        responsibilities of the Secretary under this subtitle; 
        or
            (2) to determine whether a person subject to this 
        subtitle has engaged or is engaging in any act that 
        constitutes a violation of this subtitle, or any order, 
        rule, or regulation issued under this subtitle.
    (b) Power to Subpoena.--
            (1) Investigations.--For the purpose of an 
        investigation made under subsection (a), the Secretary 
        may administer oaths and affirmations and may issue 
        subpoenas to require the production of any records that 
        are relevant to the inquiry. The production of any such 
        records may be required from any place in the United 
        States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 558 or 559, 
        the presiding officer is authorized to administer oaths 
        and affirmations, subpoena witnesses, compel the 
        attendance of witnesses, take evidence, and require the 
        production of any records that are relevant to the 
        inquiry. The attendance of witnesses and the production 
        of any such records may be required from any place in 
        the United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal 
to obey a subpoena to, any person, the Secretary may invoke the 
aid of any court of the United States within the jurisdiction 
of which the investigation or proceeding is carried on, or 
where the person resides or carries on business, to enforce a 
subpoena issued by the Secretary under subsection (b). The 
court may issue an order requiring the person to comply with 
the subpoena.
    (d) Contempt.--Any failure to obey the order of the court 
may be punished by the court as a contempt of the court.
    (e) Process.--Process in any such case may be served in the 
judicial district in which the person resides or carries on 
business or wherever the person may be found.
    (f) Hearing Site.--The site of any hearing held under 
section 558 or 559 shall be in the judicial district where the 
person affected by the hearing resides or has a principal place 
of business.

SEC. 561. REFERENDA.

    (a) Initial Referendum.--
            (1) Referendum required.--During the 60-day period 
        immediately preceding the proposed effective date of an 
        order issued under section 554, the Secretary shall 
        conduct a referendum among kiwifruit producers and 
        importers who will be subject to assessments under the 
        order, to ascertain whether producers and importers 
        approve the implementation of the order.
            (2) Approval of order.--The order shall become 
        effective, as provided in section 554, if the Secretary 
        determines that--
                    (A) the order has been approved by a 
                majority of the producers and importers voting 
                in the referendum; and
                    (B) the producers and importers favoring 
                approval produce and import more than 50 
                percent of the total volume of kiwifruit 
                produced and imported by persons voting in the 
                referendum.
    (b) Subsequent Referenda.--The Secretary may periodically 
conduct a referendum to determine if kiwifruit producers and 
importers favor the continuation, termination, or suspension of 
any order issued under section 554 that is in effect at the 
time of the referendum.
    (c) Required Referenda.--The Secretary shall hold a 
referendum under subsection (b)--
            (1) at the end of the 6-year period beginning on 
        the effective date of the order and at the end of each 
        subsequent 6-year period;
            (2) at the request of the Board; or
            (3) if not less than 30 percent of the kiwifruit 
        producers and importers subject to assessments under 
        the order submit a petition requesting the referendum.
    (d) Vote.--On completion of a referendum under subsection 
(b), the Secretary shall suspend or terminate the order that 
was subject to the referendum at the end of the marketing year 
if--
            (1) the suspension or termination of the order is 
        favored by not less than a majority of the producers 
        and importers voting in the referendum; and
            (2) the producers and importers produce and import 
        more than 50 percent of the total volume of kiwifruit 
        produced and imported by persons voting in the 
        referendum.
    (e) Confidentiality.--The ballots and other information or 
reports that reveal, or tend to reveal, the vote of any person 
under this subtitle and the voting list shall be held strictly 
confidential and shall not be disclosed.

SEC. 562. SUSPENSION OR TERMINATION.

    (a) In General.--If the Secretary finds that an order 
issued under section 554, or a provision of the order, 
obstructs or does not tend to effectuate the purposes of this 
subtitle, the Secretary shall suspend or terminate the 
operation of the order or provision.
    (b) Limitation.--The suspension or termination of any 
order, or any provision of an order, shall not be considered an 
order under this subtitle.

SEC. 563. REGULATIONS.

    The Secretary may issue such regulations as are necessary 
to carry out this subtitle.

SEC. 564. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for each fiscal 
year such sums as are necessary to carry out this subtitle.

                          Subtitle E--Popcorn

SEC. 571. SHORT TITLE.

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

SEC. 572. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) popcorn is an important food that is a valuable 
        part of the human diet;
            (2) the production and processing of popcorn plays 
        a significant role in the economy of the United States 
        in that popcorn is processed by several popcorn 
        processors, distributed through wholesale and retail 
        outlets, and consumed by millions of people throughout 
        the United States and foreign countries;
            (3) popcorn must be of high quality, readily 
        available, handled properly, and marketed efficiently 
        to ensure that the benefits of popcorn are available to 
        the people of the United States;
            (4) the maintenance and expansion of existing 
        markets and uses and the development of new markets and 
        uses for popcorn are vital to the welfare of processors 
        and persons concerned with marketing, using, and 
        producing popcorn for the market, as well as to the 
        agricultural economy of the United States;
            (5) the cooperative development, financing, and 
        implementation of a coordinated program of popcorn 
        promotion, research, consumer information, and industry 
        information is necessary to maintain and expand markets 
        for popcorn; and
            (6) popcorn moves in interstate and foreign 
        commerce, and popcorn that does not move in those 
        channels of commerce directly burdens or affects 
        interstate commerce in popcorn.
    (b) Policy.--It is the policy of Congress that it is in the 
public interest to authorize the establishment, through the 
exercise of the powers provided in this subtitle, of an orderly 
procedure for developing, financing (through adequate 
assessments on unpopped popcorn processed domestically), and 
carrying out an effective, continuous, and coordinated program 
of promotion, research, consumer information, and industry 
information designed to--
            (1) strengthen the position of the popcorn industry 
        in the marketplace; and
            (2) maintain and expand domestic and foreign 
        markets and uses for popcorn.
    (c) Purposes.--The purposes of this subtitle are to--
            (1) maintain and expand the markets for all popcorn 
        products in a manner that--
                    (A) is not designed to maintain or expand 
                any individual share of a producer or processor 
                of the market;
                    (B) does not compete with or replace 
                individual advertising or promotion efforts 
                designed to promote individual brand name or 
                trade name popcorn products; and
                    (C) authorizes and funds programs that 
                result in government speech promoting 
                government objectives; and
            (2) establish a nationally coordinated program for 
        popcorn promotion, research, consumer information, and 
        industry information.
    (d) Statutory Construction.--This subtitle treats 
processors equitably. Nothing in this subtitle--
            (1) provides for the imposition of a trade barrier 
        to the entry into the United States of imported popcorn 
        for the domestic market; or
            (2) provides for the control of production or 
        otherwise limits the right of any individual processor 
        to produce popcorn.

SEC. 573. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the Popcorn 
        Board established under section 575(b).
            (2) Commerce.--The term ``commerce'' means 
        interstate, foreign, or intrastate commerce.
            (3) Consumer information.--The term ``consumer 
        information'' means information and programs that will 
        assist consumers and other persons in making 
        evaluations and decisions regarding the purchase, 
        preparation, and use of popcorn.
            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) Industry information.--The term ``industry 
        information'' means information or a program that will 
        lead to the development of--
                    (A) new markets, new marketing strategies, 
                or increased efficiency for the popcorn 
                industry; or
                    (B) activities to enhance the image of the 
                popcorn industry.
            (6) Marketing.--The term ``marketing'' means the 
        sale or other disposition of unpopped popcorn for human 
        consumption in a channel of commerce, but does not 
        include a sale or disposition to or between processors.
            (7) Order.--The term ``order'' means an order 
        issued under section 574.
            (8) Person.--The term ``person'' means an 
        individual, group of individuals, partnership, 
        corporation, association, or cooperative, or any other 
        legal entity.
            (9) Popcorn.--The term ``popcorn'' means unpopped 
        popcorn (Zea Mays L) that is--
                    (A) commercially grown;
                    (B) processed in the United States by 
                shelling, cleaning, or drying; and
                    (C) introduced into a channel of commerce.
            (10) Process.--The term ``process'' means to shell, 
        clean, dry, and prepare popcorn for the market, but 
        does not include packaging popcorn for the market 
        without also engaging in another activity described in 
        this paragraph.
            (11) Processor.--The term ``processor'' means a 
        person engaged in the preparation of unpopped popcorn 
        for the market who owns or shares the ownership and 
        risk of loss of the popcorn and who processes and 
        distributes over 4,000,000 pounds of popcorn in the 
        market per year.
            (12) Promotion.--The term ``promotion'' means an 
        action, including paid advertising, to enhance the 
        image or desirability of popcorn.
            (13) Research.--The term ``research'' means any 
        type of study to advance the image, desirability, 
        marketability, production, product development, 
        quality, or nutritional value of popcorn.
            (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (15) State.--The term ``State'' means each of the 
        50 States and the District of Columbia.
            (16) United states.--The term ``United States'' 
        means all of the States.

SEC. 574. ISSUANCE OF ORDERS.

    (a) In General.--To effectuate the policy described in 
section 572(b), the Secretary, subject to subsection (b), shall 
issue 1 or more orders applicable to processors. An order shall 
be applicable to all popcorn production and marketing areas in 
the United States. Not more than 1 order shall be in effect 
under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The 
        Secretary may propose the issuance of an order, or an 
        association of processors or any other person that 
        would be affected by an order may request the issuance 
        of, and submit a proposal for, an order.
            (2) Notice and comment concerning proposed order.--
        Not later than 60 days after the receipt of a request 
        and proposal for an order under paragraph (1), or at 
        such time as the Secretary determines to propose an 
        order, the Secretary shall publish a proposed order and 
        give due notice and opportunity for public comment on 
        the proposed order.
            (3) Issuance of order.--After notice and 
        opportunity for public comment under paragraph (2), the 
        Secretary shall issue an order, taking into 
        consideration the comments received and including in 
        the order such provisions as are necessary to ensure 
        that the order conforms to this subtitle. The order 
        shall be issued and become effective not later than 150 
        days after the date of publication of the proposed 
        order.
    (c) Amendments.--The Secretary, as appropriate, may amend 
an order. The provisions of this subtitle applicable to an 
order shall be applicable to any amendment to an order, except 
that an amendment to an order may not require a referendum to 
become effective.

SEC. 575. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order shall contain the terms and 
conditions specified in this section.
    (b) Establishment and Membership of Popcorn Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a 
        Popcorn Board that shall consist of not fewer than 4 
        members and not more than 9 members.
            (2) Nominations.--The members of the Board shall be 
        processors appointed by the Secretary from nominations 
        submitted by processors in a manner authorized by the 
        Secretary, subject to paragraph (3). Not more than 1 
        member may be appointed to the Board from nominations 
        submitted by any 1 processor.
            (3) Geographical diversity.--In making 
        appointments, the Secretary shall take into account, to 
        the extent practicable, the geographical distribution 
        of popcorn production throughout the United States.
            (4) Terms.--The term of appointment of each member 
        of the Board shall be 3 years, except that the members 
        appointed to the initial Board shall serve, 
        proportionately, for terms of 2, 3, and 4 years, as 
        determined by the Secretary.
            (5) Compensation and expenses.--A member of the 
        Board shall serve without compensation, but shall be 
        reimbursed for the expenses of the member incurred in 
        the performance of duties for the Board.
    (c) Powers and Duties of Board.--The order shall define the 
powers and duties of the Board, which shall include the power 
and duty--
            (1) to administer the order in accordance with the 
        terms and provisions of the order;
            (2) to issue regulations to effectuate the terms 
        and provisions of the order;
            (3) to appoint members of the Board to serve on an 
        executive committee;
            (4) to propose, receive, evaluate, and approve 
        budgets, plans, and projects of promotion, research, 
        consumer information, and industry information, and to 
        contract with appropriate persons to implement the 
        plans or projects;
            (5) to accept and receive voluntary contributions, 
        gifts, and market promotion or similar funds;
            (6) to invest, pending disbursement under a plan or 
        project, funds collected through assessments authorized 
        under subsection (f), only in--
                    (A) obligations of the United States or an 
                agency of the United States;
                    (B) general obligations of a State or a 
                political subdivision of a State;
                    (C) an interest-bearing account or 
                certificate of deposit of a bank that is a 
                member of the Federal Reserve System; or
                    (D) obligations fully guaranteed as to 
                principal and interest by the United States;
            (7) to receive, investigate, and report to the 
        Secretary complaints of violations of the order; and
            (8) to recommend to the Secretary amendments to the 
        order.
    (d) Plans and Budgets.--
            (1) In general.--The order shall provide that the 
        Board shall submit to the Secretary for approval any 
        plan or project of promotion, research, consumer 
        information, or industry information.
            (2) Budgets.--The order shall require the Board to 
        submit to the Secretary for approval budgets on a 
        fiscal year basis of the anticipated expenses and 
        disbursements of the Board in the implementation of the 
        order, including projected costs of plans and projects 
        of promotion, research, consumer information, and 
        industry information.
    (e) Contracts and Agreements.--
            (1) In general.--The order shall provide that the 
        Board may enter into contracts or agreements for the 
        implementation and carrying out of plans or projects of 
        promotion, research, consumer information, or industry 
        information, including contracts with a processor 
        organization, and for the payment of the cost of the 
        plans or projects with funds collected by the Board 
        under the order.
            (2) Requirements.--A contract or agreement under 
        paragraph (1) shall provide that--
                    (A) the contracting party shall develop and 
                submit to the Board a plan or project, together 
                with a budget that shows the estimated costs to 
                be incurred for the plan or project;
                    (B) the plan or project shall become 
                effective on the approval of the Secretary; and
                    (C) the contracting party shall keep 
                accurate records of each transaction of the 
                party, account for funds received and expended, 
                make periodic reports to the Board of 
                activities conducted, and make such other 
                reports as the Board or the Secretary may 
                require.
            (3) Processor organizations.--The order shall 
        provide that the Board may contract with processor 
        organizations for any services required in addition to 
        the services described in paragraph (1). The contract 
        shall include provisions comparable to the provisions 
        required by paragraph (2).
    (f) Assessments.--
            (1) Processors.--The order shall provide that each 
        processor marketing popcorn in the United States or for 
        export shall, in the manner prescribed in the order, 
        pay assessments and remit the assessments to the Board.
            (2) Direct marketers.--A processor that markets 
        popcorn produced by the processor directly to consumers 
        shall pay and remit the assessments on the popcorn 
        directly to the Board in the manner prescribed in the 
        order.
            (3) Rate.--
                    (A) In general.--The rate of assessment 
                prescribed in the order shall be a rate 
                established by the Board but not more than $.08 
                per hundredweight of popcorn.
                    (B) Adjustment of rate.--The order shall 
                provide that the Board, with the approval of 
                the Secretary, may raise or lower the rate of 
                assessment annually up to a maximum of $.08 per 
                hundredweight of popcorn.
            (4) Use of assessments.--
                    (A) In general.--Subject to subparagraphs 
                (B) and (C) and subsection (c)(5), the order 
                shall provide that the assessments collected 
                shall be used by the Board--
                            (i) to pay expenses incurred in 
                        implementing and administering the 
                        order, with provision for a reasonable 
                        reserve; and
                            (ii) to cover such administrative 
                        costs as are incurred by the Secretary, 
                        except that the administrative costs 
                        incurred by the Secretary (other than 
                        any legal expenses incurred to defend 
                        and enforce the order) that may be 
                        reimbursed by the Board may not exceed 
                        15 percent of the projected annual 
                        revenues of the Board.
                    (B) Expenditures based on source of 
                assessments.--In implementing plans and 
                projects of promotion, research, consumer 
                information, and industry information, the 
                Board shall expend funds on--
                            (i) plans and projects for popcorn 
                        marketed in the United States or Canada 
                        in proportion to the amount of 
                        assessments collected on domestically 
                        marketed popcorn; and
                            (ii) plans and projects for 
                        exported popcorn in proportion to the 
                        amount of assessments collected on 
                        exported popcorn.
                    (C) Notification.--If the administrative 
                costs incurred by the Secretary that are 
                reimbursed by the Board exceed 10 percent of 
                the projected annual revenues of the Board, the 
                Secretary shall notify as soon as practicable 
                the Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate.
    (g) Prohibition on Use of Funds.--The order shall prohibit 
any funds collected by the Board under the order from being 
used to influence government action or policy, other than the 
use of funds by the Board for the development and 
recommendation to the Secretary of amendments to the order.
    (h) Books and Records of the Board.--The order shall 
require the Board to--
            (1) maintain such books and records (which shall be 
        available to the Secretary for inspection and audit) as 
        the Secretary may prescribe;
            (2) prepare and submit to the Secretary, from time 
        to time, such reports as the Secretary may prescribe; 
        and
            (3) account for the receipt and disbursement of all 
        funds entrusted to the Board.
    (i) Books and Records of Processors.--
            (1) Maintenance and reporting of information.--The 
        order shall require that each processor of popcorn for 
        the market shall--
                    (A) maintain, and make available for 
                inspection, such books and records as are 
                required by the order; and
                    (B) file reports at such time, in such 
                manner, and having such content as is 
                prescribed in the order.
            (2) Use of information.--The Secretary shall 
        authorize the use of information regarding processors 
        that may be accumulated under a law or regulation other 
        than this subtitle or a regulation issued under this 
        subtitle. The information shall be made available to 
        the Secretary as appropriate for the administration or 
        enforcement of this subtitle, the order, or any 
        regulation issued under this subtitle.
            (3) Confidentiality.--
                    (A) In general.--Subject to subparagraphs 
                (B), (C), and (D), all information obtained by 
                the Secretary under paragraphs (1) and (2) 
                shall be kept confidential by all officers, 
                employees, and agents of the Board and the 
                Department.
                    (B) Disclosure by secretary.--Information 
                referred to in subparagraph (A) may be 
                disclosed if--
                            (i) the Secretary considers the 
                        information relevant;
                            (ii) the information is revealed in 
                        a suit or administrative hearing 
                        brought at the request of the 
                        Secretary, or to which the Secretary or 
                        any officer of the United States is a 
                        party; and
                            (iii) the information relates to 
                        the order.
                    (C) Disclosure to other agency of federal 
                government.--
                            (i) In general.--No information 
                        obtained under the authority of this 
                        subtitle may be made available to 
                        another agency or officer of the 
                        Federal Government for any purpose 
                        other than the implementation of this 
                        subtitle and any investigatory or 
                        enforcement activity necessary for the 
                        implementation of this subtitle.
                            (ii) Penalty.--A person who 
                        knowingly violates this subparagraph 
                        shall, on conviction, be subject to a 
                        fine of not more than $1,000 or to 
                        imprisonment for not more than 1 year, 
                        or both, and if an officer, employee, 
                        or agent of the Board or the 
                        Department, shall be removed from 
                        office or terminated from employment, 
                        as applicable.
                    (D) General statements.--Nothing in this 
                paragraph prohibits--
                            (i) the issuance of general 
                        statements based on the reports of a 
                        number of persons subject to an order 
                        or statistical data collected from the 
                        reports, if the statements do not 
                        identify the information provided by 
                        any person; or
                            (ii) the publication, by direction 
                        of the Secretary, of the name of a 
                        person violating the order, together 
                        with a statement of the particular 
                        provisions of the order violated by the 
                        person.
    (j) Other Terms and Conditions.--The order shall contain 
such other terms and conditions, consistent with this subtitle, 
as are necessary to effectuate this subtitle, including 
regulations relating to the assessment of late payment charges.

SEC. 576. REFERENDA.

    (a) Initial Referendum.--
            (1) In general.--Within the 60-day period 
        immediately preceding the effective date of an order, 
        as provided in section 574(b)(3), the Secretary shall 
        conduct a referendum among processors who, during a 
        representative period as determined by the Secretary, 
        have been engaged in processing, for the purpose of 
        ascertaining whether the order shall go into effect.
            (2) Approval of order.--The order shall become 
        effective, as provided in section 574(b), only if the 
        Secretary determines that the order has been approved 
        by not less than a majority of the processors voting in 
        the referendum and if the majority processed more than 
        50 percent of the popcorn certified as having been 
        processed, during the representative period, by the 
        processors voting.
    (b) Additional Referenda.--
            (1) In general.--Not earlier than 3 years after the 
        effective date of an order approved under subsection 
        (a), on the request of the Board or a representative 
        group of processors, as described in paragraph (2), the 
        Secretary may conduct additional referenda to determine 
        whether processors favor the suspension or termination 
        of the order.
            (2) Representative group of processors.--An 
        additional referendum on an order shall be conducted if 
        the referendum is requested by 30 percent or more of 
        the number of processors who, during a representative 
        period as determined by the Secretary, have been 
        engaged in processing.
            (3) Disapproval of order.--If the Secretary 
        determines, in a referendum conducted under paragraph 
        (1), that suspension or termination of the order is 
        favored by at least \2/3\ of the processors voting in 
        the referendum, the Secretary shall--
                    (A) suspend or terminate, as appropriate, 
                collection of assessments under the order not 
                later than 180 days after the date of 
                determination; and
                    (B) suspend or terminate the order, as 
                appropriate, in an orderly manner as soon as 
                practicable after the date of determination.
    (c) Costs of Referendum.--The Secretary shall be reimbursed 
from assessments collected by the Board for any expenses 
incurred by the Secretary in connection with the conduct of any 
referendum under this section.
    (d) Method of Conducting Referendum.--Subject to this 
section, a referendum conducted under this section shall be 
conducted in such manner as is determined by the Secretary.
    (e) Confidentiality of Ballots and Other Information.--
            (1) In general.--The ballots and other information 
        or reports that reveal or tend to reveal the vote of 
        any processor, or any business operation of a 
        processor, shall be considered to be strictly 
        confidential and shall not be disclosed.
            (2) Penalty for violations.--An officer or employee 
        of the Department who knowingly violates paragraph (1) 
        shall be subject to the penalties described in section 
        575(i)(3)(C)(ii).

SEC. 577. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may 
        file with the Secretary a petition--
                    (A) stating that the order, a provision of 
                the order, or an obligation imposed in 
                connection with the order is not established in 
                accordance with law; and
                    (B) requesting a modification of the order 
                or obligation or an exemption from the order or 
                obligation.
            (2) Statute of limitations.--A petition under 
        paragraph (1) concerning an obligation may be filed not 
        later than 2 years after the date of imposition of the 
        obligation.
            (3) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under 
        paragraph (1), in accordance with regulations issued by 
        the Secretary.
            (4) Ruling.--After a hearing under paragraph (3), 
        the Secretary shall issue a ruling on the petition that 
        is the subject of the hearing, which shall be final if 
        the ruling is in accordance with applicable law.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which a person 
        who is a petitioner under subsection (a) resides or 
        carries on business shall have jurisdiction to review a 
        ruling on the petition, if the person files a complaint 
        not later than 20 days after the date of issuance of 
        the ruling under subsection (a)(4).
            (2) Process.--Service of process in a proceeding 
        under paragraph (1) may be made on the Secretary by 
        delivering a copy of the complaint to the Secretary.
            (3) Remands.--If the court determines, under 
        paragraph (1), that a ruling issued under subsection 
        (a)(4) is not in accordance with applicable law, the 
        court shall remand the matter to the Secretary with 
        directions--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in 
                the opinion of the court, the law requires.
    (c) Enforcement.--The pendency of proceedings instituted 
under subsection (a) may not impede, hinder, or delay the 
Secretary or the Attorney General from taking action under 
section 578.

SEC. 578. ENFORCEMENT.

    (a) In General.--The Secretary may issue an enforcement 
order to restrain or prevent any person from violating an order 
or regulation issued under this subtitle and may assess a civil 
penalty of not more than $1,000 for each violation of the 
enforcement order, after an opportunity for an administrative 
hearing, if the Secretary determines that the administration 
and enforcement of the order and this subtitle would be 
adequately served by such a procedure.
    (b) Jurisdiction.--The district courts of the United States 
are vested with jurisdiction specifically to enforce, and to 
prevent and restrain any person from violating, an order or 
regulation issued under this subtitle.
    (c) Referral to Attorney General.--A civil action 
authorized to be brought under this section shall be referred 
to the Attorney General for appropriate action.

SEC. 579. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such 
investigations as the Secretary considers necessary--
            (1) for the effective administration of this 
        subtitle; and
            (2) to determine whether any person subject to this 
        subtitle has engaged, or is about to engage, in an act 
        that constitutes or will constitute a violation of this 
        subtitle or of an order or regulation issued under this 
        subtitle.
    (b) Oaths, Affirmations, and Subpoenas.--For the purpose of 
an investigation under subsection (a), the Secretary may 
administer oaths and affirmations, subpoena witnesses, compel 
the attendance of witnesses, take evidence, and require the 
production of any records that are relevant to the inquiry. The 
attendance of witnesses and the production of records may be 
required from any place in the United States.
    (c) Aid of Courts.--
            (1) Request.--In the case of contumacy by, or 
        refusal to obey a subpoena issued to, any person, the 
        Secretary may request the aid of any court of the 
        United States within the jurisdiction of which the 
        investigation or proceeding is carried on, or where the 
        person resides or carries on business, in requiring the 
        attendance and testimony of the person and the 
        production of records.
            (2) Enforcement order of the court.--The court may 
        issue an enforcement order requiring the person to 
        appear before the Secretary to produce records or to 
        give testimony concerning the matter under 
        investigation.
            (3) Contempt.--A failure to obey an enforcement 
        order of the court under paragraph (2) may be punished 
        by the court as a contempt of the court.
            (4) Process.--Process in a case under this 
        subsection may be served in the judicial district in 
        which the person resides or carries on business or 
        wherever the person may be found.

SEC. 580. RELATION TO OTHER PROGRAMS.

    Nothing in this subtitle preempts or supersedes any other 
program relating to popcorn promotion organized and operated 
under the laws of the United States or any State.

SEC. 581. REGULATIONS.

    The Secretary may issue such regulations as are necessary 
to carry out this subtitle.

SEC. 582. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are 
necessary to carry out this subtitle. Amounts made available 
under this section or otherwise made available to the 
Department, and amounts made available under any other 
marketing or promotion order, may not be used to pay any 
administrative expense of the Board.

                       Subtitle F--Miscellaneous

SEC. 591. MAINTENANCE OF RECORDS FOR HONEY PROMOTION PROGRAM.

    Section 9(f) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4608(f)) is amended by inserting 
``producers,'' after ``importers,''.

                            TITLE VI--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.

    Section 302 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the 
        Secretary may make a direct loan under this subtitle 
        only to a farmer or rancher who has operated a farm or 
        ranch for not less than 3 years and--
                    ``(A) is a qualified beginning farmer or 
                rancher;
                    ``(B) has not received a previous direct 
                farm ownership loan made under this subtitle; 
                or
                    ``(C) has not received a direct farm 
                ownership loan under this subtitle more than 10 
                years before the date the new loan would be 
                made.
            ``(2) Youth loans.--The operation of an enterprise 
        by a youth under section 311(b) shall not be considered 
        the operation of a farm or ranch for purposes of 
        paragraph (1).
            ``(3) Transition rule.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), the Secretary may make a direct 
                loan under this subtitle to a farmer or rancher 
                who has a direct loan outstanding under this 
                subtitle on the date of enactment of this 
                paragraph.
                    ``(B) Less than 5 years.--If, as of the 
                date of enactment of this paragraph, a farmer 
                or rancher has had a direct loan outstanding 
                under this subtitle for less than 5 years, the 
                Secretary shall not make a loan to the farmer 
                or rancher under subparagraph (A) after the 
                date that is 10 years after the date of 
                enactment of this paragraph.
                    ``(C) 5 years or more.--If, as of the date 
                of enactment of this paragraph, a farmer or 
                rancher has had a direct loan outstanding under 
                this subtitle for 5 years or more, the 
                Secretary shall not make a loan to the farmer 
                or rancher under subparagraph (A) after the 
                date that is 5 years after the date of 
                enactment of this paragraph.''.

SEC. 602. PURPOSES OF LOANS.

    (a) In General.--Section 303 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1923) is amended to read as 
follows:

``SEC. 303. PURPOSES OF LOANS.

    ``(a) Allowed Purposes.--
            ``(1) Direct loans.--A farmer or rancher may use a 
        direct loan made under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or 
                ranch;
                    ``(B) making capital improvements to a farm 
                or ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or 
                ranch; or
                    ``(D) paying for activities to promote soil 
                and water conservation and protection described 
                in section 304 on a farm or ranch.
            ``(2) Guaranteed loans.--A farmer or rancher may 
        use a loan guaranteed under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or 
                ranch;
                    ``(B) making capital improvements to a farm 
                or ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or 
                ranch;
                    ``(D) paying for activities to promote soil 
                and water conservation and protection described 
                in section 304 on a farm or ranch; or
                    ``(E) refinancing indebtedness.
    ``(b) Preferences.--In making or guaranteeing a loan under 
this subtitle for purchase of a farm or ranch, the Secretary 
shall give preference to a person who--
            ``(1) has a dependent family;
            ``(2) to the extent practicable, is able to make an 
        initial down payment on the farm or ranch; or
            ``(3) is an owner of livestock or farm or ranch 
        equipment that is necessary to successfully carry out 
        farming or ranching operations.
    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary 
        may not make a loan to a farmer or rancher under this 
        subtitle unless the farmer or rancher has, or agrees to 
        obtain, hazard insurance on any real property to be 
        acquired or improved with the loan.
            ``(2) Determination.--Not later than 180 days after 
        the date of enactment of this subsection, the Secretary 
        shall determine the appropriate level of insurance to 
        be required under paragraph (1).''.
    (b) Transitional Provision.--Section 303(c)(1) of the 
Consolidated Farm and Rural Development Act shall not apply 
until the Secretary of Agriculture makes the determination 
required by section 303(c)(2) of the Act.

SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1924) is amended--
            (1) by striking subsections (b) and (c);
            (2) by striking ``Sec. 304. (a)(1) Loans'' and 
        inserting the following:

``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.

    ``(a) In General.--Loans'';
            (3) by striking ``(2) In making or insuring'' and 
        inserting the following:
    ``(b) Priority.--In making or guaranteeing'';
            (4) by striking ``(3) The Secretary'' and inserting 
        the following:
    ``(c) Loan Maximum.--The Secretary'';
            (5) by redesignating subparagraphs (A) through (F) 
        of subsection (a) (as amended by paragraph (2)) as 
        paragraphs (1) through (6), respectively; and
            (6) by redesignating subparagraphs (A) and (B) of 
        subsection (c) (as amended by paragraph (4)) as 
        paragraphs (1) and (2), respectively.

SEC. 604. INTEREST RATE REQUIREMENTS.

    Section 307(a)(3) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927(a)(3)) is amended--
            (1) in subparagraph (B), by inserting 
        ``subparagraph (D) and in'' after ``Except as provided 
        in''; and
            (2) by adding at the end the following:
                    ``(D) Joint financing arrangement.--If a 
                direct farm ownership loan is made under this 
                subtitle as part of a joint financing 
                arrangement and the amount of the direct farm 
                ownership loan does not exceed 50 percent of 
                the total principal amount financed under the 
                arrangement, the interest rate on the direct 
                farm ownership loan shall be at least 4 percent 
                annually.''.

SEC. 605. INSURANCE OF LOANS.

    Section 308 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1928) is amended to read as follows:

``SEC. 308. FULL FAITH AND CREDIT.

    ``(a) In General.--A contract of insurance or guarantee 
executed by the Secretary under this title shall be an 
obligation supported by the full faith and credit of the United 
States.
    ``(b) Contestability.--A contract of insurance or guarantee 
executed by the Secretary under this title shall be 
incontestable except for fraud or misrepresentation that the 
lender or any holder--
            ``(1) has actual knowledge of at the time the 
        contract or guarantee is executed; or
            ``(2) participates in or condones.''.

SEC. 606. LOANS GUARANTEED.

    Section 309(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929(h)) is amended by adding at the 
end the following:
            ``(4) Maximum guarantee of 90 percent.--Except as 
        provided in paragraphs (5) and (6), a loan guarantee 
        under this title shall be for not more than 90 percent 
        of the principal and interest due on the loan.
            ``(5) Refinanced loans guaranteed at 95 percent.--
        The Secretary shall guarantee 95 percent of--
                    ``(A) in the case of a loan that solely 
                refinances a direct loan made under this title, 
                the principal and interest due on the loan on 
                the date of the refinancing; or
                    ``(B) in the case of a loan that is used 
                for multiple purposes, the portion of the loan 
                that refinances the principal and interest due 
                on a direct loan made under this title that is 
                outstanding on the date the loan is guaranteed.
            ``(6) Beginning farmer loans guaranteed up to 95 
        percent.--The Secretary may guarantee not more than 95 
        percent of--
                    ``(A) a farm ownership loan for acquiring a 
                farm or ranch to a borrower who is 
                participating in the down payment loan program 
                under section 310E; or
                    ``(B) an operating loan to a borrower who 
                is participating in the down payment loan 
                program under section 310E that is made during 
                the period that the borrower has a direct loan 
                outstanding under this subtitle for acquiring a 
                farm or ranch.''.

                      Subtitle B--Operating Loans

SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

    (a) In General.--Section 311 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1941) is amended by striking 
subsection (c) and inserting the following:
    ``(c) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the 
        Secretary may make a direct loan under this subtitle 
        only to a farmer or rancher who--
                    ``(A) is a qualified beginning farmer or 
                rancher who has not operated a farm or ranch, 
                or who has operated a farm or ranch for not 
                more than 5 years;
                    ``(B) has not received a previous direct 
                operating loan made under this subtitle; or
                    ``(C) has received a previous direct 
                operating loan made under this subtitle during 
                6 or fewer years.
            ``(2) Youth loans.--In this subsection, the term 
        `direct operating loan' shall not include a loan made 
        to a youth under subsection (b).
            ``(3) Transition rule.--If, as of the date of 
        enactment of this paragraph, a farmer or rancher has 
        received a direct operating loan under this subtitle 
        during each of 4 or more previous years, the borrower 
        shall be eligible to receive a direct operating loan 
        under this subtitle during 3 additional years after the 
        date of enactment of this paragraph.''.
    (b) Youth Enterprises Not Farming or Ranching.--Section 
311(b) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941(b)) is amended by adding at the end the following:
            ``(4) Youth enterprises not farming or ranching.--
        The operation of an enterprise by a youth under this 
        subsection shall not be considered the operation of a 
        farm or ranch under this title.''.

SEC. 612. PURPOSES OF OPERATING LOANS.

    (a) In General.--Section 312 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1942) is amended to read as 
follows:

``SEC. 312. PURPOSES OF LOANS.

    ``(a) In General.--A direct loan may be made under this 
subtitle only for--
            ``(1) paying the costs incident to reorganizing a 
        farm or ranch for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or 
        ranch equipment;
            ``(3) purchasing feed, seed, fertilizer, 
        insecticide, or farm or ranch supplies, or to meet 
        other essential farm or ranch operating expenses, 
        including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) paying loan closing costs;
            ``(6) assisting a farmer or rancher in changing the 
        equipment, facilities, or methods of operation of a 
        farm or ranch to comply with a standard promulgated 
        under section 6 of the Occupational Safety and Health 
        Act of 1970 (29 U.S.C. 655) or a standard adopted by a 
        State under a plan approved under section 18 of the Act 
        (29 U.S.C. 667), if the Secretary determines that 
        without assistance under this paragraph the farmer or 
        rancher is likely to suffer substantial economic injury 
        in complying with the standard;
            ``(7) training a limited-resource borrower 
        receiving a loan under section 310D in maintaining 
        records of farming and ranching operations;
            ``(8) training a borrower under section 359;
            ``(9) refinancing the indebtedness of a borrower, 
        if the borrower--
                    ``(A) has refinanced a loan under this 
                subtitle not more than 4 times previously; and
                    ``(B)(i) is a direct loan borrower under 
                this title at the time of the refinancing and 
                has suffered a qualifying loss because of a 
                natural disaster declared by the Secretary 
                under this title or a major disaster or 
                emergency designated by the President under the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.); or
                    ``(ii) is refinancing a debt obtained from 
                a creditor other than the Secretary; or
            ``(10) providing other farm, ranch, or home needs, 
        including family subsistence.
    ``(b) Guaranteed Loans.--A loan may be guaranteed under 
this subtitle only for--
            ``(1) paying the costs incident to reorganizing a 
        farm or ranch for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or 
        ranch equipment;
            ``(3) purchasing feed, seed, fertilizer, 
        insecticide, or farm or ranch supplies, or to meet 
        other essential farm or ranch operating expenses, 
        including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) refinancing indebtedness;
            ``(6) paying loan closing costs;
            ``(7) assisting a farmer or rancher in changing the 
        equipment, facilities, or methods of operation of a 
        farm or ranch to comply with a standard promulgated 
        under section 6 of the Occupational Safety and Health 
        Act of 1970 (29 U.S.C. 655) or a standard adopted by a 
        State under a plan approved under section 18 of the Act 
        (29 U.S.C. 667), if the Secretary determines that 
        without assistance under this paragraph the farmer or 
        rancher is likely to suffer substantial economic injury 
        due to compliance with the standard;
            ``(8) training a borrower under section 359; or
            ``(9) providing other farm, ranch, or home needs, 
        including family subsistence.
    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary 
        may not make a loan to a farmer or rancher under this 
        subtitle unless the farmer or rancher has, or agrees to 
        obtain, hazard insurance on the property to be acquired 
        with the loan.
            ``(2) Determination.--Not later than 180 days after 
        the date of enactment of this paragraph, the Secretary 
        shall determine the appropriate level of insurance to 
        be required by paragraph (1).
    ``(d) Private Reserve.--
            ``(1) In general.--Notwithstanding any other 
        provision of this title, the Secretary may reserve a 
        portion of any loan made under this subtitle to be 
        placed in an unsupervised bank account that may be used 
        at the discretion of the borrower for the basic family 
        needs of the borrower and the immediate family of the 
        borrower.
            ``(2) Limit on size of the reserve.--The size of 
        the reserve shall not exceed the least of--
                    ``(A) 10 percent of the loan;
                    ``(B) $5,000; or
                    ``(C) the amount needed to provide for the 
                basic family needs of the borrower and the 
                borrower's immediate family for 3 calendar 
                months.''.
    (b) Transitional Provision.--Section 312(c)(1) of the 
Consolidated Farm and Rural Development Act shall not apply 
until the Secretary of Agriculture makes the determination 
required by section 312(c)(2) of the Act.

SEC. 613. PARTICIPATION IN LOANS.

    Section 315 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1945) is repealed.

SEC. 614. LINE-OF-CREDIT LOANS.

    Section 316 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1946) is amended by adding at the end the 
following:
    ``(c) Line-of-Credit Loans.--
            ``(1) In general.--A loan made or guaranteed by the 
        Secretary under this subtitle may be in the form of a 
        line-of-credit loan.
            ``(2) Term.--A line-of-credit loan under paragraph 
        (1) shall terminate not later than 5 years after the 
        date that the loan is made or guaranteed.
            ``(3) Eligibility.--For purposes of determining 
        eligibility for a farm operating loan under this 
        subtitle, each year during which a farmer or rancher 
        takes an advance or draws on a line-of-credit loan the 
        farmer or rancher shall be considered to have received 
        an operating loan for 1 year.
            ``(4) Termination of delinquent loans.--If a 
        borrower does not pay an installment on a line-of-
        credit loan on schedule, the borrower may not take an 
        advance or draw on the line-of-credit, unless the 
        Secretary determines that--
                    ``(A) the borrower's failure to pay on 
                schedule was due to unusual conditions that the 
                borrower could not control; and
                    ``(B) the borrower will reduce the line-of-
                credit balance to the scheduled level at the 
                end of--
                            ``(i) the production cycle; or
                            ``(ii) the marketing of the 
                        borrower's agricultural products.
            ``(5) Agricultural commodities.--A line-of-credit 
        loan may be used to finance the production or marketing 
        of an agricultural commodity that--
                    ``(A) is eligible for a price support 
                program of the Department of Agriculture; or
                    ``(B) was eligible for a price support 
                program of the Department of Agriculture on the 
                day before the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 
                1996.''.

SEC. 615. INSURANCE OF OPERATING LOANS.

    Section 317 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1947) is repealed.

SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.

    (a) In General.--Section 318 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1948) is repealed.
    (b) Conforming Amendment.--Section 310F of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1936) is repealed.

SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR 
                    GUARANTEED ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1949) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Limitation on Period Borrowers Are Eligible for 
Guaranteed Assistance.--
            ``(1) General rule.--Subject to paragraph (2), the 
        Secretary shall not guarantee a loan under this 
        subtitle for a borrower for any year after the 15th 
        year that a loan is made to, or a guarantee is provided 
        with respect to, the borrower under this subtitle.
            ``(2) Transition rule.--If, as of October 28, 1992, 
        a farmer or rancher has received a direct or guaranteed 
        operating loan under this subtitle during each of 10 or 
        more previous years, the borrower shall be eligible to 
        receive a guaranteed operating loan under this subtitle 
        during 5 additional years after October 28, 1992.''.

                      Subtitle C--Emergency Loans

SEC. 621. HAZARD INSURANCE REQUIREMENT.

    (a) In General.--Section 321 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1961) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary 
        may not make a loan to a farmer or rancher under this 
        subtitle to cover a property loss unless the farmer or 
        rancher had hazard insurance that insured the property 
        at the time of the loss.
            ``(2) Determination.--Not later than 180 days after 
        the date of enactment of this paragraph, the Secretary 
        shall determine the appropriate level of insurance to 
        be required under paragraph (1).''.
    (b) Transitional Provision.--Section 321(b)(1) of the 
Consolidated Farm and Rural Development Act shall not apply 
until the Secretary of Agriculture makes the determination 
required by section 321(b)(2) of the Act.

SEC. 622. NARROWING OF AUTHORITY TO WAIVE APPLICATION OF THE CREDIT 
                    ELSEWHERE TEST.

    The second proviso of section 322(b) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1962(b)) is amended by 
striking ``$300,000 or less'' and inserting ``$100,000 or 
less''.

SEC. 623. LINKING OF EMERGENCY LOANS FOR CROP OR LIVESTOCK CHANGES TO 
                    NATURAL DISASTERS.

    Section 323 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1963) is amended by inserting ``that are 
necessitated by a natural disaster, major disaster, or 
emergency and that are'' after ``livestock changes''.

SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

    Section 324 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1964) is amended by striking ``Sec. 324. (a) No 
loan'' and all that follows through the end of subsection (a) 
and inserting the following:

``SEC. 324. TERMS OF LOANS.

    ``(a) Maximum Amount of Loan.--The Secretary may not make a 
loan under this subtitle to a borrower who has suffered a loss 
in an amount that--
            ``(1) exceeds the actual loss caused by a disaster; 
        or
            ``(2) would cause the total indebtedness of the 
        borrower under this subtitle to exceed $500,000.''.

SEC. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION.

    The last sentence of section 324(d) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1964(d)) is amended by 
striking ``value the assets'' and all that follows through the 
period and inserting ``establish the value of the assets as of 
the day before the occurrence of the natural disaster, major 
disaster, or emergency that is the basis for a request for 
assistance under this subtitle or the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.).''.

SEC. 626. INSURANCE OF EMERGENCY LOANS.

    Section 328 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1968) is repealed.

                 Subtitle D--Administrative Provisions

SEC. 631. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS.

    Section 331 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981) is amended by adding at the end the 
following:
    ``(d) Temporary Authority To Enter Into Contracts.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible financial institution.--The 
                term `eligible financial institution' means a 
                financial institution with substantial 
                experience in farm, ranch, or aquaculture 
                lending that is regulated by the Comptroller of 
                the Currency, the Farm Credit Administration, 
                or a similar regulatory body.
                    ``(B) Pilot project.--The term `pilot 
                project' includes services related to borrower 
                loan documentation, financial information, 
                credit history, and appraisals of real estate 
                and chattel.
            ``(2) Authority.--The Secretary may enter into a 
        contract with an eligible financial institution for 
        servicing a farmer program loan under this title, 
        including 1 or more pilot projects.
            ``(3) Report.--Not later than September 30, 1997, 
        and September 30 of each year thereafter, the Secretary 
        shall report to Congress on--
                    ``(A) the Secretary's experience in using 
                contracts under paragraph (2); and
                    ``(B) recommendations for legislation 
                related to this subsection, if any.
            ``(4) Savings clause.--Nothing in this subsection 
        shall limit the authority of the Secretary or an 
        eligible financial institution to contract for any 
        services under this Act or any other law.
            ``(5) Sunset provision.--This subsection shall be 
        effective until September 30, 2002.''.

SEC. 632. USE OF COLLECTION AGENCIES.

    Section 331 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981) (as amended by section 631) is amended by 
adding at the end the following:
    ``(e) Private Collection Agency.--The Secretary may use a 
private collection agency to collect a claim or obligation 
described in subsection (b)(5).''.

SEC. 633. NOTICE OF LOAN SERVICE PROGRAMS.

    Section 331D(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981d(a)) is amended by striking 
``180 days delinquent in'' and inserting ``90 days past due 
on''.

SEC. 634. CLARIFICATION OF WRITTEN STATEMENT REQUIRED OF BORROWERS.

    Section 333(1)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983(1)(B)) is amended by striking 
``a written statement showing the applicant's net worth'' and 
inserting ``an appropriate written financial statement''.

SEC. 635. ANNUAL REVIEW OF THE CREDIT HISTORY, BUSINESS OPERATION, AND 
                    CONTINUED ELIGIBILITY OF A BORROWER.

    (a) In General.--Section 333 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1983) is amended--
            (1) by redesignating paragraphs (2), (3), and (4) 
        as paragraphs (3), (4), and (5), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) except with respect to a loan under section 
        306, 310B, or 314, the county or area committee 
        established under section 8(b)(5)(B) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)(5)(B)) to certify in writing--
                    ``(A) that an annual review of the credit 
                history and business operation of the borrower 
                has been conducted; and
                    ``(B) that a review of the continued 
                eligibility of the borrower for the loan has 
                been conducted;''.
    (b) Conforming Amendment.--The third sentence of section 
310B(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932(a)) is amended by striking ``(3) of'' and inserting 
``(4) of''.

SEC. 636. EXTENSION OF VETERANS PREFERENCE.

    Section 333 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983) (as amended by section 635(a)) is amended 
by striking paragraph (5) and inserting the following:
            ``(5) the application of a person who is a veteran 
        of any war, as defined in section 101(12) of title 38, 
        United States Code, for a loan under subtitle A or B to 
        be given preference over a similar application from a 
        person who is not a veteran of any war, if the 
        applications are on file in a county or area office at 
        the same time.''.

SEC. 637. VERIFICATION OF THE CREDIT ELSEWHERE TEST.

    Section 333A(f)(4) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983a(f)(4)) is amended--
            (1) by striking ``(4) With'' and all that follows 
        through ``seasoned'' and inserting the following:
            ``(4) Verification.--
                    ``(A) In general.--The Secretary shall 
                provide a prospectus of a seasoned''; and
            (2) by striking ``If the Secretary'' and inserting 
        the following:
                    ``(B) Notification.--The Secretary shall 
                notify each borrower of a loan that a 
                prospectus has been provided to a lender under 
                subparagraph (A).
                    ``(C) Credit extended.--If the Secretary''.

SEC. 638. SALE OF PROPERTY.

    Section 335 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1985) is amended--
            (1) in subsection (b), by striking ``subsection 
        (e)'' and inserting ``subsections (c) and (e)'';
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Sale of Property.--
            ``(1) In general.--Subject to this subsection and 
        subsection (e)(1)(A), the Secretary shall offer to sell 
        real property that is acquired by the Secretary under 
        this title using the following order and method of 
        sale:
                    ``(A) Advertisement.--Not later than 15 
                days after acquiring real property, the 
                Secretary shall publicly advertise the property 
                for sale.
                    ``(B) Beginning farmer or rancher.--
                            ``(i) In general.--Not later than 
                        75 days after acquiring real property, 
                        the Secretary shall offer to sell the 
                        property to a qualified beginning 
                        farmer or rancher at current market 
                        value based on a current appraisal.
                            ``(ii) Random selection.--If more 
                        than 1 qualified beginning farmer or 
                        rancher offers to purchase the 
                        property, the Secretary shall select 
                        between the qualified applicants on a 
                        random basis.
                            ``(iii) Appeal of random 
                        selection.--A random selection or 
                        denial by the Secretary of a beginning 
                        farmer or rancher for farm inventory 
                        property under this subparagraph shall 
                        be final and not administratively 
                        appealable.
                    ``(C) Public sale.--If no acceptable offer 
                is received from a qualified beginning farmer 
                or rancher under subparagraph (B) not later 
                than 75 days after acquiring the real property, 
                the Secretary shall, not later than 30 days 
                after the 75-day period, sell the property 
                after public notice at a public sale, and, if 
                no acceptable bid is received, by negotiated 
                sale, at the best price obtainable.
            ``(2) Transitional rules.--
                    ``(A) Previous lease.--In the case of real 
                property acquired prior to the date of 
                enactment of this subparagraph that the 
                Secretary leased prior to the date of enactment 
                of this subparagraph, not later than 60 days 
                after the lease expires, the Secretary shall 
                offer to sell the property in accordance with 
                paragraph (1).
                    ``(B) Previously in inventory.--In the case 
                of real property acquired prior to the date of 
                enactment of this subparagraph that the 
                Secretary has not leased, not later than 60 
                days after the date of enactment of this 
                subparagraph, the Secretary shall offer to sell 
                the property in accordance with paragraph (1).
            ``(3) Interest.--
                    ``(A) In general.--Subject to subparagraph 
                (B), any conveyance of real property under this 
                subsection shall include all of the interest of 
                the United States in the property, including 
                mineral rights.
                    ``(B) Conservation.--The Secretary may for 
                conservation purposes grant or sell an 
                easement, restriction, development right, or 
                similar legal right to real property to a 
                State, a political subdivision of a State, or a 
                private nonprofit organization separately from 
                the underlying fee or other rights to the 
                property owned by the United States.
            ``(4) Other law.--The Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et 
        seq.) shall not apply to any exercise of authority 
        under this title.
            ``(5) Lease of property.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary may not lease any real 
                property acquired under this title.
                    ``(B) Exception.--
                            ``(i) Beginning farmer or 
                        rancher.--The Secretary may lease or 
                        contract to sell to a beginning farmer 
                        or rancher a farm or ranch acquired by 
                        the Secretary under this title if the 
                        beginning farmer or rancher qualifies 
                        for a credit sale or direct farm 
                        ownership loan under subtitle A but 
                        credit sale authority for loans or 
                        direct farm ownership loan funds, 
                        respectively, are not available.
                            ``(ii) Term.--The term of a lease 
                        or contract to sell to a beginning 
                        farmer or rancher under clause (i) 
                        shall be until the earlier of--
                                    ``(I) the date that is 18 
                                months after the date of the 
                                lease or sale; or
                                    ``(II) the date that direct 
                                farm ownership loan funds or 
                                credit sale authority for loans 
                                becomes available to the 
                                beginning farmer or rancher.
                            ``(iii) Income-producing 
                        capability.--In determining the rental 
                        rate on real property leased under this 
                        subparagraph, the Secretary shall 
                        consider the income-producing 
                        capability of the property during the 
                        term that the property is leased.
            ``(6) Expedited determination.--
                    ``(A) In general.--On the request of an 
                applicant, not later than 30 days after denial 
                of the applicant's application, the appropriate 
                State director shall provide an expedited 
                review and determination of whether the 
                applicant is a beginning farmer or rancher for 
                the purpose of acquiring farm inventory 
                property.
                    ``(B) Appeal.--The determination of a State 
                Director under subparagraph (A) shall be final 
                and not administratively appealable.
                    ``(C) Effects of determinations.--
                            ``(i) In general.--The Secretary 
                        shall maintain statistical data on the 
                        number and results of determinations 
                        made under subparagraph (A) and the 
                        effect of the determinations on--
                                    ``(I) selling farm 
                                inventory property to beginning 
                                farmers and ranchers; and
                                    ``(II) disposing of real 
                                property in inventory.
                            ``(ii) Notification.--The Secretary 
                        shall notify the Committee on 
                        Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate if the Secretary determines 
                        that the review process under 
                        subparagraph (A) is adversely affecting 
                        the selling of farm inventory property 
                        to beginning farmers or ranchers or the 
                        disposing of real property in 
                        inventory.''; and
            (3) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraphs (A) 
                        through (C);
                            (ii) by redesignating subparagraphs 
                        (D) through (G) as subparagraphs (A) 
                        through (D), respectively;
                            (iii) in subparagraph (A) (as 
                        redesignated by clause (ii))--
                                    (I) in clause (i)--
                                            (aa) in the matter 
                                        preceding subclause 
                                        (I), by striking 
                                        ``(G)'' and inserting 
                                        ``(D)'';
                                            (bb) by striking 
                                        subclause (I) and 
                                        inserting the 
                                        following:
            ``(I) the Secretary acquires property under this 
        title that is located within an Indian reservation; 
        and'';
                                            (cc) in subclause 
                                        (II), by striking ``, 
                                        and'' at the end and 
                                        inserting a semicolon; 
                                        and
                                            (dd) by striking 
                                        subclause (III); and
                                    (II) in clause (iii), by 
                                striking ``The Secretary 
                                shall'' and all that follows 
                                through ``of subparagraph 
                                (A),'' and inserting ``Not 
                                later than 90 days after 
                                acquiring the property, the 
                                Secretary shall''; and
                            (iv) in subparagraph (D) (as 
                        redesignated by clause (ii))--
                                    (I) in clause (i), by 
                                striking ``(D)'' in the matter 
                                following subclause (IV) and 
                                inserting ``(A)'';
                                    (II) in clause (iii)(I), by 
                                striking ``subparagraphs 
                                (C)(i), (C)(ii), and (D)'' and 
                                inserting ``subparagraph (A)''; 
                                and
                                    (III) by striking clause 
                                (v) and inserting the 
                                following:
                            ``(v) Foreclosure procedures.--
                                    ``(I) Notice to borrower.--
                                If an Indian borrower-owner 
                                does not voluntarily convey to 
                                the Secretary real property 
                                described in clause (i), not 
                                less than 30 days before a 
                                foreclosure sale of the 
                                property, the Secretary shall 
                                provide the Indian borrower-
                                owner with the option of--
                                            ``(aa) requiring 
                                        the Secretary to assign 
                                        the loan and security 
                                        instruments to the 
                                        Secretary of the 
                                        Interior, if the 
                                        Secretary of the 
                                        Interior agrees to an 
                                        assignment releasing 
                                        the Secretary of 
                                        Agriculture from all 
                                        further responsibility 
                                        for collection of any 
                                        amounts with regard to 
                                        the loan secured by the 
                                        real property; or
                                            ``(bb) requiring 
                                        the Secretary to assign 
                                        the loan and security 
                                        instruments to the 
                                        tribe having 
                                        jurisdiction over the 
                                        reservation in which 
                                        the real property is 
                                        located, if the tribe 
                                        agrees to the 
                                        assignment.
                                    ``(II) Notice to tribe.--If 
                                an Indian borrower-owner does 
                                not voluntarily convey to the 
                                Secretary real property 
                                described in clause (i), not 
                                less than 30 days before a 
                                foreclosure sale of the 
                                property, the Secretary shall 
                                provide written notice to the 
                                Indian tribe that has 
                                jurisdiction over the 
                                reservation in which the real 
                                property is located of--
                                            ``(aa) the sale;
                                            ``(bb) the fair 
                                        market value of the 
                                        property; and
                                            ``(cc) the 
                                        requirements of this 
                                        subparagraph.
                                    ``(III) Assumed loans.--If 
                                an Indian tribe assumes a loan 
                                under subclause (I)--
                                            ``(aa) the 
                                        Secretary shall not 
                                        foreclose the loan 
                                        because of any default 
                                        that occurred prior to 
                                        the date of the 
                                        assumption;
                                            ``(bb) the loan 
                                        shall be for the lesser 
                                        of the outstanding 
                                        principal and interest 
                                        of the loan or the fair 
                                        market value of the 
                                        property; and
                                            ``(cc) the loan 
                                        shall be treated as 
                                        though the loan was 
                                        made under Public Law 
                                        91-229 (25 U.S.C. 488 
                                        et seq.).'';
                    (B) by striking paragraph (3);
                    (C) in paragraph (4)--
                            (i) by striking subparagraph (B);
                            (ii) in subparagraph (A)--
                                    (I) in clause (i), by 
                                striking ``(i)''; and
                                    (II) by redesignating 
                                clause (ii) as subparagraph 
                                (B); and
                            (iii) in subparagraph (B) (as 
                        redesignated by clause (ii)(II)), by 
                        striking ``clause (i)'' and inserting 
                        ``subparagraph (A)'';
                    (D) by striking paragraphs (5), (6), and 
                (9); and
                    (E) by redesignating paragraphs (4), (7), 
                (8), and (10) as paragraphs (3), (4), (5), and 
                (6), respectively.

SEC. 639. EASEMENTS ON INVENTORIED PROPERTY.

    Section 335(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1985(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(g)(1) Subject to 
                paragraphs (2) through (5)'' and inserting the 
                following:
    ``(g) Easements on Inventoried Property.--
            ``(1) In general.--Subject to paragraph (2)''; and
                    (B) by striking ``, as determined'' and all 
                that follows through ``3801 et seq.)'';
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Limitation.--The Secretary shall not 
        establish a wetland conservation easement on an 
        inventoried property that--
                    ``(A) was cropland on the date the property 
                entered the inventory of the Secretary; or
                    ``(B) was used for farming at any time 
                during the period beginning on the date 5 years 
                before the property entered the inventory of 
                the Secretary and ending on the date the 
                property entered the inventory of the 
                Secretary.'';
            (3) by striking paragraphs (3), (4), (5), and (8);
            (4) by striking ``(6) The Secretary'' and inserting 
        the following:
            ``(3) Notification.--The Secretary''; and
            (5) by striking ``(7) The appraised'' and inserting 
        the following:
            ``(4) Appraised value.--The appraised''.

SEC. 640. DEFINITIONS.

    Section 343(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)) is amended--
            (1) in paragraph (11)--
                    (A) in the text preceding subparagraph (A), 
                by striking ``applicant--'' and inserting 
                ``applicant, regardless of whether the 
                applicant is participating in a program under 
                section 310E--''; and
                    (B) in subparagraph (F)--
                            (i) by striking ``15 percent'' and 
                        inserting ``25 percent''; and
                            (ii) by inserting before the 
                        semicolon at the end the following: ``, 
                        except that this subparagraph shall not 
                        apply to a loan made or guaranteed 
                        under subtitle B''; and
            (2) by adding at the end the following:
            ``(12) Debt forgiveness.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `debt forgiveness' 
                means reducing or terminating a farmer program 
                loan made or guaranteed under this title, in a 
                manner that results in a loss to the Secretary, 
                through--
                            ``(i) writing down or writing off a 
                        loan under section 353;
                            ``(ii) compromising, adjusting, 
                        reducing, or charging-off a debt or 
                        claim under section 331;
                            ``(iii) paying a loss on a 
                        guaranteed loan under section 357; or
                            ``(iv) discharging a debt as a 
                        result of bankruptcy.
                    ``(B) Loan restructuring.--The term `debt 
                forgiveness' does not include consolidation, 
                rescheduling, reamortization, or deferral.''.

SEC. 641. AUTHORIZATION FOR LOANS.

    Section 346 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994) is amended--
            (1) in the second sentence of subsection (a), by 
        striking ``with or without'' and all that follows 
        through ``administration''; and
            (2) by striking subsection (b) and inserting the 
        following:
    ``(b) Authorization for Loans.--
            ``(1) In general.--The Secretary may make or 
        guarantee loans under subtitles A and B from the 
        Agricultural Credit Insurance Fund provided for in 
        section 309 in not more than the following amounts:
                    ``(A) Fiscal year 1996.--For fiscal year 
                1996, $3,085,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,500,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $600,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $1,900,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(B) Fiscal year 1997.--For fiscal year 
                1997, $3,165,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,580,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $630,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $1,950,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(C) Fiscal year 1998.--For fiscal year 
                1998, $3,245,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,660,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $660,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,000,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(D) Fiscal year 1999.--For fiscal year 
                1999, $3,325,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,740,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $690,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,050,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(E) Fiscal year 2000.--For fiscal year 
                2000, $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,100,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(F) Fiscal year 2001.--For fiscal year 
                2001, $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,100,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(G) Fiscal year 2002.--For fiscal year 
                2002, $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,100,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
            ``(2) Beginning farmers and ranchers.--
                    ``(A) Direct loans.--
                            ``(i) Farm ownership loans.--
                                    ``(I) In general.--Of the 
                                amounts made available under 
                                paragraph (1) for direct farm 
                                ownership loans, the Secretary 
                                shall reserve 70 percent for 
                                qualified beginning farmers and 
                                ranchers.
                                    ``(II) Down payment 
                                loans.--Of the amounts reserved 
                                for a fiscal year under 
                                subclause (I), the Secretary 
                                shall reserve 60 percent for 
                                the down payment loan program 
                                under section 310E until April 
                                1 of the fiscal year.
                            ``(ii) Operating loans.--Of the 
                        amounts made available under paragraph 
                        (1) for direct operating loans, the 
                        Secretary shall reserve for qualified 
                        beginning farmers and ranchers--
                                    ``(I) for each of fiscal 
                                years 1996 through 1998, 25 
                                percent;
                                    ``(II) for fiscal year 
                                1999, 30 percent; and
                                    ``(III) for each of fiscal 
                                years 2000 through 2002, 35 
                                percent.
                            ``(iii) Funds reserved until 
                        september 1.--Except as provided in 
                        clause (i)(II), funds reserved for 
                        qualified beginning farmers or ranchers 
                        under this subparagraph for a fiscal 
                        year shall be reserved only until 
                        September 1 of the fiscal year.
                    ``(B) Guaranteed loans.--
                            ``(i) Farm ownership loans.--Of the 
                        amounts made available under paragraph 
                        (1) for guarantees of farm ownership 
                        loans, the Secretary shall reserve 25 
                        percent for qualified beginning farmers 
                        and ranchers.
                            ``(ii) Operating loans.--Of the 
                        amounts made available under paragraph 
                        (1) for guarantees of operating loans, 
                        the Secretary shall reserve 40 percent 
                        for qualified beginning farmers and 
                        ranchers.
                            ``(iii) Funds reserved until april 
                        1.--Funds reserved for qualified 
                        beginning farmers or ranchers under 
                        this subparagraph for a fiscal year 
                        shall be reserved only until April 1 of 
                        the fiscal year.
                    ``(C) Reserved funds for all qualified 
                beginning farmers and ranchers.--If a qualified 
                beginning farmer or rancher meets the 
                eligibility criteria for receiving a direct or 
                guaranteed loan under section 302, 310E, or 
                311, the Secretary shall make or guarantee the 
                loan if sufficient funds reserved under this 
                paragraph are available to make or guarantee 
                the loan.
            ``(3) Transfer for down payment loans.--
                    ``(A) In general.--Notwithstanding 
                subsection (a), subject to subparagraph (B)--
                            ``(i) beginning on August 1 of each 
                        fiscal year, the Secretary shall use 
                        available unsubsidized guaranteed farm 
                        operating loan funds to provide direct 
                        farm ownership loans approved by the 
                        Secretary to qualified beginning 
                        farmers and ranchers under the down 
                        payment loan program established under 
                        section 310E, if sufficient direct farm 
                        ownership loan funds are not otherwise 
                        available; and
                            ``(ii) beginning on September 1 of 
                        each fiscal year, the Secretary shall 
                        use available unsubsidized guaranteed 
                        farm operating loan funds to provide 
                        direct farm ownership loans approved by 
                        the Secretary to qualified beginning 
                        farmers and ranchers, if sufficient 
                        direct farm ownership loan funds are 
                        not otherwise available.
                    ``(B) Limitation.--The Secretary shall 
                limit the transfer of funds under subparagraph 
                (A) so that all guaranteed farm operating loans 
                that have been approved, or will be approved, 
                by the Secretary during the fiscal year will be 
                made to the extent of available amounts.
            ``(4) Transfer for credit sales of farm inventory 
        property.--
                    ``(A) In general.--Notwithstanding 
                subsection (a), subject to subparagraphs (B) 
                and (C), beginning on September 1 of each 
                fiscal year, the Secretary may use available 
                funds made available under subtitle C for the 
                fiscal year to fund the credit sale of farm 
                real estate in the inventory of the Secretary.
                    ``(B) Supplemental appropriations.--The 
                transfer authority provided under subparagraph 
                (A) shall not apply to any funds made available 
                to the Secretary for any fiscal year under an 
                Act making supplemental appropriations.
                    ``(C) Limitation.--The Secretary shall 
                limit the transfer of funds under subparagraph 
                (A) so that all emergency disaster loans that 
                have been approved, or will be approved, by the 
                Secretary during the fiscal year will be made 
                to the extent of available amounts.''.

SEC. 642. CONTRACTS ON LOAN SECURITY PROPERTIES.

    Section 349 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1997) is amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Contracts on Loan Security Properties.--Subject to 
subsection (c), the Secretary may enter into a contract related 
to real property for conservation, recreation, or wildlife 
purposes.'';
            (2) in subsection (c)--
                    (A) by striking ``(c) Such easement'' and 
                all that follows through ``if--'' and inserting 
                the following:
    ``(c) Limitations.--The Secretary may enter into a contract 
under subsection (b) if--'';
                    (B) in paragraph (2), by adding ``and'' at 
                the end;
                    (C) in paragraph (3)--
                            (i) by striking subparagraph (B);
                            (ii) by striking ``(3)(A)(i)'' and 
                        inserting ``(3)(A)'';
                            (iii) by striking ``Farmers Home 
                        Administration'' and inserting 
                        ``Secretary'';
                            (iv) by striking ``(ii) such 
                        easement'' and inserting ``(B) such 
                        contract''; and
                            (v) by striking ``; or'' and 
                        inserting a period; and
                    (D) by striking paragraph (4);
            (3) in subsection (d), by striking ``easement'' 
        each place it appears and inserting ``contract'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding 
                        subparagraph (A), by striking 
                        ``purchase any such easement from the 
                        borrower--'' and inserting ``reduce or 
                        forgive the outstanding debt of a 
                        borrower--'';
                            (ii) by striking ``easement'' each 
                        place it appears and inserting 
                        ``contract''; and
                            (iii) by striking ``Farmers Home 
                        Administration'' each place it appears 
                        and inserting ``Secretary''; and
                    (B) in paragraph (2)(A), by striking 
                ``easement is acquired'' and inserting 
                ``contract is entered into'';
            (5) in subsection (f)--
                    (A) in paragraph (1), by striking ``acquire 
                easements'' and inserting ``enter into 
                contracts''; and
                    (B) in paragraphs (2) and (3), by striking 
                ``easements'' each place it appears and 
                inserting ``contracts''; and
            (6) in subsection (g), by striking ``an easement 
        acquired'' and inserting ``a contract entered into''.

SEC. 643. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY 
                    DEMONSTRATION PROJECT.

    (a) In General.--Section 351 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1999) is amended--
            (1) in subsection (f)--
                    (A) by striking ``Each Farmers Home 
                Administration county supervisor'' and 
                inserting ``The Secretary'';
                    (B) by striking ``approved lenders'' and 
                inserting ``lenders''; and
                    (C) by striking ``the Farmers Home 
                Administration''; and
            (2) by striking subsection (h).
    (b) Technical Amendment.--Section 1320 of the Food Security 
Act of 1985 (Public Law 99-198; 7 U.S.C. 1999 note) is amended 
by striking ``Effective only'' and all that follows through 
``1995, the'' and inserting ``The''.

SEC. 644. HOMESTEAD PROPERTY.

    Section 352(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2000(c)) is amended--
            (1) in paragraph (1)(A), by striking ``90'' each 
        place it appears and inserting ``30''; and
            (2) in paragraph (6)--
                    (A) in the first sentence, by striking 
                ``Within 30'' and all that follows through 
                ``title,'' and insert ``Not later than the date 
                of acquisition of the property securing a loan 
                made under this title (or, in the case of real 
                property in inventory on the date of enactment 
                of the Federal Agriculture Improvement and 
                Reform Act of 1996, not later than 5 days after 
                the date of enactment of the Act),''; and
                    (B) by striking the second sentence.

SEC. 645. RESTRUCTURING.

    Section 353 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2001) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (3), by striking 
                subparagraph (C) and inserting the following:
                    ``(C) Cash flow margin.--For the purpose of 
                assessing under subparagraph (A) the ability of 
                a borrower to meet debt obligations and 
                continue farming operations, the Secretary 
                shall assume that the borrower needs up to 110 
                percent of the amount indicated for payment of 
                farm operating expenses, debt service 
                obligations, and family living expenses.''; and
                    (B) by striking paragraph (6) and inserting 
                the following:
            ``(6) Termination of loan obligations.--The 
        obligations of a borrower to the Secretary under a loan 
        shall terminate if--
                    ``(A) the borrower satisfies the 
                requirements of paragraphs (1) and (2) of 
                subsection (b);
                    ``(B) the value of the restructured loan is 
                less than the recovery value; and
                    ``(C) not later than 90 days after receipt 
                of the notification described in paragraph 
                (4)(B), the borrower pays (or obtains third-
                party financing to pay) the Secretary an amount 
                equal to the current market value.'';
            (2) by striking subsection (k); and
            (3) by redesignating subsections (l) through (p) as 
        subsections (k) through (o), respectively.

SEC. 646. TRANSFER OF INVENTORY LAND FOR CONSERVATION PURPOSES.

    Section 354 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2002) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``The Secretary, without reimbursement,'' and 
        inserting the following:
    ``(a) In General.--Subject to subsection (b), the 
Secretary'';
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) that is eligible to be disposed of in 
        accordance with section 335; and''; and
            (3) by adding at the end the following:
    ``(b) Conditions.--The Secretary may not transfer any 
property or interest in property under subsection (a) unless--
            ``(1) at least 2 public notices are given of the 
        transfer;
            ``(2) if requested, at least 1 public meeting is 
        held prior to the transfer; and
            ``(3) the Governor and at least 1 elected county 
        official of the State and county where the property is 
        located are consulted prior to the transfer.''.

SEC. 647. IMPLEMENTATION OF TARGET PARTICIPATION RATES.

    Section 355 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2003) is amended by adding at the end the 
following:
    ``(f) Implementation Consistent With Supreme Court 
Holding.--Not later than 180 days after the date of enactment 
of this subsection, the Secretary shall ensure that the 
implementation of this section is consistent with the holding 
of the Supreme Court in Adarand Constructors, Inc. v. Federico 
Pena, Secretary of Transportation, 115 S. Ct. 2097 (1995).''.

SEC. 648. DELINQUENT BORROWERS.

    (a) Payment of Interest as a Condition of Loan Servicing 
for Borrowers.--The Consolidated Farm and Rural Development Act 
(7 U.S.C. 1921 et seq.) is amended by adding at the end the 
following:

``SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVICING FOR 
                    BORROWERS.

    ``The Secretary may not reschedule or reamortize a loan for 
a borrower under this title who has not requested consideration 
under section 331D(e) unless the borrower pays a portion, as 
determined by the Secretary, of the interest due on the 
loan.''.
    (b) Loan and Loan Servicing Limitations.--The Consolidated 
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) (as 
amended by subsection (a)) is amended by adding at the end the 
following:

``SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS.

    ``(a) Delinquent Borrowers Prohibited From Obtaining Direct 
Operating Loans.--The Secretary may not make a direct operating 
loan under subtitle B to a borrower who is delinquent on any 
loan made or guaranteed under this title.
    ``(b) Loans Prohibited for Borrowers That Have Received 
Debt Forgiveness.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Secretary may not make or guarantee a loan 
        under this title to a borrower who received debt 
        forgiveness on a loan made or guaranteed under this 
        title.
            ``(2) Exception.--The Secretary may make a direct 
        or guaranteed farm operating loan for paying annual 
        farm or ranch operating expenses of a borrower who was 
        restructured with a write-down under section 353.
    ``(c) No More Than 1 Debt Forgiveness For A Borrower On A 
Direct Loan.--The Secretary may not provide to a borrower debt 
forgiveness on a direct loan made under this title if the 
borrower has received debt forgiveness on another direct loan 
made under this title.''.

SEC. 649. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER COMPLIANCE.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) (as amended by section 648) is amended by adding 
at the end the following:

``SEC. 374. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER 
                    COMPLIANCE.

    ``The Secretary shall develop and utilize a consolidated 
short form for farm program borrowers to use in certifying 
compliance with any applicable provision of law (including a 
regulation) that serves as an eligibility prerequisite for a 
loan made under this title.''.

SEC. 650. CREDIT STUDY.

    (a) In General.--The Secretary of Agriculture shall conduct 
a study and report to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate on the demand for and availability 
of credit in rural areas for agriculture, housing, and rural 
development.
    (b) Purpose.--The purpose of the study shall be to ensure 
that Congress has current and comprehensive information to 
consider as Congress deliberates on rural credit needs and the 
availability of credit to satisfy the needs of rural areas of 
the United States.
    (c) Items in Study.--In conducting the study, the Secretary 
shall base the study on the most current available data and 
analyze--
            (1) rural demand for credit from the Farm Credit 
        System, the ability of the Farm Credit System to meet 
        the demand, and the extent to which the Farm Credit 
        System provides loans to satisfy the demand;
            (2) rural demand for credit from the United States 
        banking system, the ability of banks to meet the 
        demand, and the extent to which banks provide loans to 
        satisfy the demand;
            (3) rural demand for credit from the Secretary, the 
        ability of the Secretary to meet the demand, and the 
        extent to which the Secretary provides loans to satisfy 
        the demand;
            (4) rural demand for credit from other Federal 
        agencies, the ability of the agencies to meet the 
        demand, and the extent to which the agencies provide 
        loans to satisfy the demand;
            (5) what measure or measures exist to gauge the 
        overall demand for rural credit, the extent to which 
        rural demand for credit is satisfied, and what the 
        measures have demonstrated;
            (6) a comparison of the interest rates and terms 
        charged by the Farm Credit System Farm Credit Banks, 
        production credit associations, and banks for 
        cooperatives with the rates and terms charged by the 
        banks of the United States for credit of comparable 
        risk and maturity;
            (7) the advantages and disadvantages of the 
        modernization and expansion proposals of the Farm 
        Credit System on the Farm Credit System, the United 
        States banking system, rural users of credit, local 
        rural communities, and the Federal Government, 
        including--
                    (A) any added risk to the safety and 
                soundness of the Farm Credit System that may 
                result from approval of a proposal; and
                    (B) any positive or adverse impacts on 
                competition between the Farm Credit System and 
                the banks of the United States in providing 
                credit to rural users;
            (8) the nature and extent of the unsatisfied rural 
        credit need that the Farm Credit System proposals are 
        supposed to address and what aspects of the present 
        Farm Credit System prevent the Farm Credit System from 
        meeting the need;
            (9) the advantages and disadvantages of the 
        proposal by commercial bankers to allow banks access to 
        the Farm Credit System as a funding source on the Farm 
        Credit System, the United States banking system, rural 
        users of credit, local rural communities, and the 
        Federal Government, including--
                    (A) any added risk to the safety and 
                soundness of the Farm Credit System that may 
                result from approval of the proposal; and
                    (B) any positive or adverse impacts on 
                competition between the Farm Credit System and 
                the banks of the United States in providing 
                credit to rural users; and
            (10) problems that commercial banks have in 
        obtaining capital for lending in rural areas, how 
        access to Farm Credit System funds would improve the 
        availability of capital in rural areas in ways that 
        cannot be achieved in the system in existence on the 
        date of enactment of this Act, and the possible effects 
        on the viability of the Farm Credit System of granting 
        banks access to Farm Credit System funds.
    (d) Interagency Task Force.--In completing the study, the 
Secretary shall use, among other things, data and information 
obtained by the interagency task force on rural credit.

                     Subtitle E--General Provisions

SEC. 661. CONFORMING AMENDMENTS.

    (a) Section 307(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927(a)) is amended--
            (1) in paragraph (4), by striking ``304(b), 
        306(a)(1), and 310B'' and inserting ``306(a)(1) and 
        310B''; and
            (2) in paragraph (6)(B)--
                    (A) by striking clauses (i), (ii), (iv), 
                and (vii);
                    (B) in clause (v), by adding ``and'' at the 
                end;
                    (C) in clause (vi), by striking ``, and'' 
                at the end and inserting a period; and
                    (D) by redesignating clauses (iii), (v), 
                and (vi) as clauses (i), (ii), and (iii), 
                respectively.
    (b) The second sentence of section 309(g)(1) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1929(g)(1)) is amended by striking ``section 308,''.
    (c) Section 309A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929a) is amended--
            (1) in the second sentence of subsection (a), by 
        striking ``304(b), 306(a)(1), 306(a)(14), 310B, and 
        312(b)'' and inserting ``306(a)(1), 306(a)(14), and 
        310B''; and
            (2) in the first sentence of subsection (b), by 
        striking ``and section 308''.
    (d) Section 310B(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(d)) is amended--
            (1) by striking ``sections 304(b), 310B, and 
        312(b)'' each place it appears in paragraphs (2), (3), 
        and (4) and inserting ``this section''; and
            (2) in paragraph (6), by striking ``this section, 
        section 304, or section 312'' and inserting ``this 
        section''.
    (e) The first sentence of section 310D(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1934(a)) 
is amended by striking ``paragraphs (1) through (5) of section 
303(a), or subparagraphs (A) through (E) of section 304(a)(1)'' 
and inserting ``section 303(a), or paragraphs (1) through (5) 
of section 304(a)''.
    (f) Section 311(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(b)(1)) is amended by striking 
``and for the purposes specified in section 312''.
    (g) Section 316(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1946(a)) is amended by striking 
paragraph (3).
    (h) Section 343 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991) is amended--
            (1) in subsection (a)(10), by striking ``recreation 
        loan (RL) under section 304,''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), 
                by striking ``351(h),''; and
                    (B) by striking paragraph (4) and inserting 
                the following:
            ``(4) Preservation loan service program.--The term 
        ``preservation loan service program'' means homestead 
        retention as authorized under section 352.''.
    (i) The first sentence of section 344 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1992) is amended by 
striking ``304(b), 306(a)(1), 310B, 312(b), or 312(c)'' and 
inserting ``306(a)(1), 310B, or 312(c)''.
    (j) Section 353(l) of the Consolidated Farm and Rural 
Development Act (as redesignated by section 645(3)) is amended 
by striking ``and subparagraphs (A)(i) and (C)(i) of section 
335(e)(1),''.

SEC. 662. ELECTRONIC FILING OF EFFECTIVE FINANCING STATEMENTS UNDER THE 
                    CLEAR TITLE PROVISIONS OF THE FOOD SECURITY ACT OF 
                    1985.

    Section 1324(c)(4) of the Food Security Act of 1985 (7 
U.S.C. 1631(c)(4)) is amended--
            (1) in subparagraph (A), by striking ``thereof'' 
        and inserting ``of the statement, or, in the case of a 
        State which (under the applicable State law provisions 
        of the Uniform Commercial Code) allows the electronic 
        filing of financing statements without the signature of 
        the debtor, is an electronically reproduced copy of the 
        statement''; and
            (2) in each of subparagraphs (B) and (C), by 
        inserting ``other than in the case of an electronically 
        reproduced copy of the statement,'' before ``is''.

SEC. 663. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall become effective on the 
date of enactment of this Act.
    (b) Delayed Effective Dates.--The amendments made by 
sections 601, 606, 611, 612, 622, 623, 625, 633, 640(1), 642, 
645(1), 648(a), and 649 shall become effective 90 days after 
the date of enactment of this Act.
    (c) Transition Provision.--The amendments made by sections 
638 and 644 shall not apply with respect to a complete 
application to acquire inventory property submitted prior to 
the date of enactment of this Act.
    (d) Regulations.--Notwithstanding any other provision of 
law, regulations to implement the amendments made by this title 
shall be published as interim final rules with request for 
comments and may be made effective immediately on publication.

                      TITLE VII--RURAL DEVELOPMENT

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

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

    Subtitle B of title XXIII of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is 
repealed.

SEC. 702. WATER AND WASTE FACILITY FINANCING.

    Section 2322 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1926-1) is repealed.

SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 2324 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is 
repealed.

SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    Chapter 1 of subtitle D of title XXIII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
950aaa et seq.) is amended to read as follows:

``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS

``SEC. 2331. PURPOSE.

    ``The purpose of this chapter is to encourage and improve 
telemedicine services and distance learning services in rural 
areas through the use of telecommunications, computer networks, 
and related advanced technologies by students, teachers, 
medical professionals, and rural residents.

``SEC. 2332. DEFINITIONS.

    ``In this chapter:
            ``(1) Construct.--The term `construct' means to 
        construct, acquire, install, improve, or extend a 
        facility or system.
            ``(2) Cost of money loan.--The term `cost of money 
        loan' means a loan made under this chapter bearing 
        interest at a rate equal to the then current cost to 
        the Federal Government of loans of similar maturity.
            ``(3) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.

``SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL 
                    AREAS.

    ``(a) Services to Rural Areas.--The Secretary may provide 
financial assistance for the purpose of financing the 
construction of facilities and systems to provide telemedicine 
services and distance learning services in rural areas.
    ``(b) Financial Assistance.--
            ``(1) In general.--Financial assistance shall 
        consist of grants or cost of money loans, or both.
            ``(2) Form.--The Secretary shall determine the 
        portion of the financial assistance provided to a 
        recipient that consists of grants and the portion that 
        consists of cost of money loans so as to result in the 
        maximum feasible repayment to the Federal Government of 
        the financial assistance, based on the ability to repay 
        of the recipient and full utilization of funds made 
        available to carry out this chapter.
    ``(c) Recipients.--
            ``(1) In general.--The Secretary may provide 
        financial assistance under this chapter to--
                    ``(A) entities using telemedicine services 
                or distance learning services; and
                    ``(B) entities providing or proposing to 
                provide telemedicine service or distance 
                learning service to other persons at rates 
                calculated to ensure that the benefit of the 
                financial assistance is passed through to the 
                other persons.
            ``(2) Electric or telecommunications borrowers.--
                    ``(A) Loans to borrowers.--Subject to 
                subparagraph (B), the Secretary may provide a 
                cost of money loan under this chapter to a 
                borrower of an electric or telecommunications 
                loan under the Rural Electrification Act of 
                1936 (7 U.S.C. 901 et seq.). A borrower 
                receiving a cost of money loan under this 
                paragraph shall--
                            ``(i) make the funds provided 
                        available to entities that qualify 
                        under paragraph (1) for projects 
                        satisfying the requirements of this 
                        chapter;
                            ``(ii) use the funds provided to 
                        acquire, install, improve, or extend a 
                        system referred to in subsection (a); 
                        or
                            ``(iii) use the funds provided to 
                        install, improve, or extend a facility 
                        referred to in subsection (a).
                    ``(B) Limitations.--A borrower of an 
                electric or telecommunications loan under the 
                Rural Electrification Act of 1936 shall--
                            ``(i) make a system or facility 
                        funded under subparagraph (A) available 
                        to entities that qualify under 
                        paragraph (1); and
                            ``(ii) neither retain from the 
                        proceeds of a loan provided under 
                        subparagraph (A), nor assess a 
                        qualifying entity under paragraph (1), 
                        any amount except as may be required to 
                        pay the actual costs incurred in 
                        administering the loan or making the 
                        system or facility available.
            ``(3) Appeal.--If the Secretary rejects the 
        application of a borrower who applies for a cost of 
        money loan or grant under this section, the borrower 
        may appeal the decision to the Secretary not later than 
        10 days after the borrower is notified of the 
        rejection.
            ``(4) Assistance to provide or improve services.--
        Financial assistance may be provided under this chapter 
        for a facility regardless of the location of the 
        facility if the Secretary determines that the 
        assistance is necessary to provide or improve 
        telemedicine services or distance learning services in 
        a rural area.
    ``(d) Priority.--The Secretary shall establish procedures 
to prioritize financial assistance under this chapter 
considering--
            ``(1) the need for the assistance in the affected 
        rural area;
            ``(2) the financial need of the applicant;
            ``(3) the population sparsity of the affected rural 
        area;
            ``(4) the local involvement in the project serving 
        the affected rural area;
            ``(5) geographic diversity among the recipients of 
        financial assistance;
            ``(6) the utilization of the telecommunications 
        facilities of any telecommunications provider serving 
        the affected rural area;
            ``(7) the portion of total project financing 
        provided by the applicant from the funds of the 
        applicant;
            ``(8) the portion of project financing provided by 
        the applicant with funds obtained from non-Federal 
        sources;
            ``(9) the joint utilization of facilities financed 
        by other financial assistance;
            ``(10) the coordination of the proposed project 
        with regional projects or networks;
            ``(11) service to the greatest practical number of 
        persons within the general geographic area covered by 
        the financial assistance;
            ``(12) conformity with the State strategic plan as 
        prepared under section 381D of the Consolidated Farm 
        and Rural Development Act; and
            ``(13) other factors determined appropriate by the 
        Secretary.
    ``(e) Maximum Amount of Assistance to Individual 
Recipients.--The Secretary may establish the maximum amount of 
financial assistance to be made available to an individual 
recipient for each fiscal year under this chapter, by 
publishing notice of the maximum amount in the Federal Register 
not more than 45 days after funds are made available for the 
fiscal year to carry out this chapter.
    ``(f) Use of Funds.--Financial assistance provided under 
this chapter shall be used for--
            ``(1) the development and acquisition of 
        instructional programming;
            ``(2) the development and acquisition, through 
        lease or purchase, of computer hardware and software, 
        audio and visual equipment, computer network 
        components, telecommunications terminal equipment, 
        telecommunications transmission facilities, data 
        terminal equipment, or interactive video equipment, or 
        other facilities that would further telemedicine 
        services or distance learning services;
            ``(3) providing technical assistance and 
        instruction for the development or use of the 
        programming, equipment, or facilities referred to in 
        paragraphs (1) and (2); or
            ``(4) other uses that are consistent with this 
        chapter, as determined by the Secretary.
    ``(g) Salaries and Expenses.--Notwithstanding subsection 
(f), financial assistance provided under this chapter shall not 
be used for paying salaries or administrative expenses.
    ``(h) Expediting Coordinated Telephone Loans.--
            ``(1) In general.--The Secretary may establish and 
        carry out procedures to ensure that expedited 
        consideration and determination is given to 
        applications for loans and advances of funds submitted 
        by local exchange carriers under this chapter and the 
        Rural Electrification Act of 1936 (7 U.S.C. 901 et 
        seq.) to enable the exchange carriers to provide 
        advanced telecommunications services in rural areas in 
        conjunction with any other projects carried out under 
        this chapter.
            ``(2) Deadline imposed on secretary.--Not later 
        than 45 days after the receipt of a completed 
        application for an expedited telephone loan under 
        paragraph (1), the Secretary shall notify the applicant 
        in writing of the decision of the Secretary regarding 
        the application.
    ``(i) Notification of Local Exchange Carrier.--
            ``(1) Applicants.--Each applicant for a grant for a 
        telemedicine or distance learning project established 
        under this chapter shall notify the appropriate local 
        telephone exchange carrier regarding the application 
        filed with the Secretary for the grant.
            ``(2) Secretary.--The Secretary shall--
                    ``(A) publish notice of applications 
                received for grants under this chapter for 
                telemedicine or distance learning projects; and
                    ``(B) make the applications available for 
                inspection.

``SEC. 2334. ADMINISTRATION.

    ``(a) Nonduplication.--The Secretary shall ensure that 
facilities constructed using financial assistance provided 
under this chapter do not duplicate adequate established 
telemedicine services or distance learning services.
    ``(b) Loan Maturity.--The maturities of cost of money loans 
shall be determined by the Secretary, based on the useful life 
of the facility being financed, except that the loan shall not 
be for a period of more than 10 years.
    ``(c) Loan Security and Feasibility.--The Secretary shall 
make a cost of money loan only if the Secretary determines that 
the security for the loan is reasonably adequate and that the 
loan will be repaid within the period of the loan.
    ``(d) Encouraging Consortia.--The Secretary shall encourage 
the development of consortia to provide telemedicine services 
or distance learning services through telecommunications in 
rural areas served by a telecommunications provider.
    ``(e) Coordination With Other Agencies.--The Secretary 
shall coordinate, to the extent practicable, with other Federal 
and State agencies with similar grant or loan programs to pool 
resources for funding meritorious proposals in rural areas.
    ``(f) Informational Efforts.--The Secretary shall establish 
and implement procedures to carry out informational efforts to 
advise potential end users located in rural areas of each State 
about the program authorized by this chapter.

``SEC. 2335. REGULATIONS.

    ``Not later than 180 days after the date of enactment of 
the Federal Agriculture Improvement and Reform Act of 1996, the 
Secretary shall issue regulations to carry out this chapter.

``SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
chapter $100,000,000 for each of fiscal years 1996 through 
2002.''.

SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL 
                    TECHNOLOGY GRANTS.

    Section 2347 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 4034) is 
amended--
            (1) by striking ``(a) In General.--''; and
            (2) by striking subsection (b).

SEC. 706. DEMONSTRATION PROJECTS.

    Section 2348 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 707. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.

    Section 2382 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is 
repealed.

SEC. 708. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.

    Section 2385 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) 
is repealed.

SEC. 709. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.

    Section 2391 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is 
repealed.

SEC. 710. CENSUS OF AGRICULTURE.

    Section 2392 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 4057) is 
repealed.

SEC. 711. STUDY OF THE TRANSPORTATION OF FERTILIZER AND AGRICULTURAL 
                    CHEMICALS TO FARMERS.

    Section 2517 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 4077) is 
repealed.

   CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

SEC. 721. DEFINITIONS.

    Section 1657(c) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5901(c)) is amended--
            (1) by striking paragraphs (3) and (4);
            (2) by redesignating paragraph (5) as paragraph 
        (3);
            (3) by redesignating paragraphs (6) through (12) as 
        paragraphs (7) through (13), respectively; and
            (4) by inserting after paragraph (3) (as 
        redesignated by paragraph (2)) the following:
            ``(4) Corporate board.--The term `Corporate Board' 
        means the Board of Directors of the Corporation 
        described in section 1659.
            ``(5) Corporation.--The term `Corporation' means 
        the Alternative Agricultural Research and 
        Commercialization Corporation established under section 
        1658.
            ``(6) Executive director.--The term `Executive 
        Director' means the Executive Director of the 
        Corporation appointed under section 1659(e).''.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    CORPORATION.

    (a) In General.--Section 1658 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended 
to read as follows:

``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    CORPORATION.

    ``(a) Establishment.--To carry out this subtitle, there is 
created a body corporate to be known as the Alternative 
Agricultural Research and Commercialization Corporation, which 
shall be an agency of the United States, within the Department 
of Agriculture, subject to the general supervision and 
direction of the Secretary, except as specifically provided for 
in this subtitle.
    ``(b) Purpose.--The purpose of the Corporation is to--
            ``(1) expedite the development and market 
        penetration of industrial, nonfood, nonfeed products 
        from agricultural and forestry materials; and
            ``(2) assist the private sector in bridging the gap 
        between the results of research into nonfood, nonfeed 
        products and the commercialization of the research.
    ``(c) Place of Incorporation.--The Corporation shall be 
incorporated in the District of Columbia.
    ``(d) Central Office.--The Secretary shall provide 
facilities for the principal office of the Corporation within 
the Washington, D.C., metropolitan area.
    ``(e) Wholly-Owned Government Corporation.--The Corporation 
shall be considered a wholly-owned government corporation in 
accordance with chapter 91 of title 31, United States Code.
    ``(f) General Powers.--In addition to any other powers 
granted to the Corporation under this subtitle, the 
Corporation--
            ``(1) shall have succession in its corporate name;
            ``(2) may adopt, alter, and rescind any bylaw and 
        adopt and alter a corporate seal, which shall be 
        judicially noticed;
            ``(3) may enter into any agreement or contract with 
        a person or private or governmental agency, except that 
        the Corporation shall not provide any financial 
        assistance unless specifically authorized by this 
        subtitle;
            ``(4) may lease, purchase, accept a gift or 
        donation of, or otherwise acquire, use, own, hold, 
        improve, or otherwise deal in or with, and sell, 
        convey, mortgage, pledge, lease, exchange, or otherwise 
        dispose of, any property or interest in property, as 
        the Corporation considers necessary in the transaction 
        of the business of the Corporation, except that this 
        paragraph shall not provide authority for carrying out 
        a program of real estate investment;
            ``(5) may sue and be sued in the corporate name of 
        the Corporation, except that--
                    ``(A) no attachment, injunction, 
                garnishment, or similar process shall be issued 
                against the Corporation or property of the 
                Corporation; and
                    ``(B) exclusive original jurisdiction shall 
                reside in the district courts of the United 
                States, but the Corporation may intervene in 
                any court in any suit, action, or proceeding in 
                which the Corporation has an interest;
            ``(6) may independently retain legal 
        representation;
            ``(7) may provide for and designate such 
        committees, and the functions of the committees, as the 
        Corporate Board considers necessary or desirable,
            ``(8) may indemnify the Executive Director and 
        other officers of the Corporation, as the Corporate 
        Board considers necessary and desirable, except that 
        the Executive Director and officers shall not be 
        indemnified for an act outside the scope of employment;
            ``(9) may, with the consent of any board, 
        commission, independent establishment, or executive 
        department of the Federal Government, including any 
        field service, use information, services, facilities, 
        officials, and employees in carrying out this subtitle, 
        and pay for the use, which payments shall be 
        transferred to the applicable appropriation account 
        that incurred the expense;
            ``(10) may obtain the services and fix the 
        compensation of any consultant and otherwise procure 
        temporary and intermittent services under section 
        3109(b) of title 5, United States Code;
            ``(11) may use the United States mails on the same 
        terms and conditions as the Executive agencies of the 
        Federal Government;
            ``(12) shall have the rights, privileges, and 
        immunities of the United States with respect to the 
        right to priority of payment with respect to debts due 
        from bankrupt, insolvent, or deceased creditors;
            ``(13) may collect or compromise any obligations 
        assigned to or held by the Corporation, including any 
        legal or equitable rights accruing to the Corporation;
            ``(14) shall determine the character of, and 
        necessity for, obligations and expenditures of the 
        Corporation and the manner in which the obligations and 
        expenditures shall be incurred, allowed, and paid, 
        subject to provisions of law specifically applicable to 
        Government corporations;
            ``(15) may make final and conclusive settlement and 
        adjustment of any claim by or against the Corporation 
        or a fiscal officer of the Corporation;
            ``(16) may sell assets, loans, and equity interests 
        acquired in connection with the financing of projects 
        funded by the Corporation; and
            ``(17) may exercise all other lawful powers 
        necessarily or reasonably related to the establishment 
        of the Corporation to carry out this subtitle and the 
        powers, purposes, functions, duties, and authorized 
        activities of the Corporation.
    ``(g) Specific Powers.--To carry out this subtitle, the 
Corporation may--
            ``(1) make grants to, and enter into cooperative 
        agreements and contracts with, eligible applicants for 
        research, development, and demonstration projects in 
        accordance with section 1660;
            ``(2) make loans and interest subsidy payments and 
        invest venture capital in accordance with section 1661;
            ``(3) collect and disseminate information 
        concerning State, regional, and local commercialization 
        projects;
            ``(4) search for new nonfood, nonfeed products that 
        may be produced from agricultural commodities and for 
        processes to produce the products;
            ``(5) administer, maintain, and dispense funds from 
        the Fund to facilitate the conduct of activities under 
        this subtitle; and
            ``(6) engage in other activities incident to 
        carrying out the functions of the Corporation.''.
    (b) Wholly-Owned Government Corporation.--Section 9101(3) 
of title 31, United States Code, is amended--
            (1) by redesignating subparagraph (N) (relating to 
        the Uranium Enrichment Corporation) as subparagraph 
        (O); and
            (2) by adding at the end the following:
                    ``(Q) the Alternative Agricultural Research 
                and Commercialization Corporation.''.
    (c) Conforming Amendment.--Section 211(b)(5) of the 
Department of Agriculture Reorganization Act of 1994 (7 
U.S.C.6911(b)(5)) is amended by striking ``Alternative Agricultural 
Research and Commercialization Board'' and inserting ``Corporate Board 
of the Alternative Agricultural Research and Commercialization 
Corporation''.

SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    (a) In General.--Section 1659 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended 
to read as follows:

``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    ``(a) In General.--The powers of the Corporation shall be 
vested in a Corporate Board.
    ``(b) Members of the Corporate Board.--The Corporate Board 
shall consist of 11 members as follows:
            ``(1) The Under Secretary of Agriculture for Rural 
        Development.
            ``(2) The Under Secretary of Agriculture for 
        Research, Education, and Economics.
            ``(3) 5 members appointed by the Secretary, of 
        whom--
                    ``(A) at least 1 member shall be a 
                representative of the leading scientific 
                disciplines relevant to the activities of the 
                Corporation;
                    ``(B) at least 1 member shall be a producer 
                or processor of agricultural commodities;
                    ``(C) at least 1 member shall be a person 
                who is privately engaged in the 
                commercialization of new nonfood, nonfeed 
                products from agricultural commodities; and
                    ``(D) at least 1 member shall have 
                expertise in financial management.

        A different member shall be appointed pursuant to each 
        subparagraph of this paragraph.
            ``(4) 2 members appointed by the Secretary who--
                    ``(A) have expertise in areas of applied 
                research relating to the development or 
                commercialization of new nonfood, nonfeed 
                products; and
                    ``(B) shall be appointed from a group of at 
                least 4 individuals nominated by the Director 
                of the National Science Foundation if the 
                nominations are made not later than 60 days 
                after the date a vacancy occurs.
            ``(5) 2 members appointed by the Secretary who--
                    ``(A) have expertise in financial and 
                managerial matters; and
                    ``(B) shall be appointed from a group of at 
                least 4 individuals nominated by the Secretary 
                of Commerce if the nominations are made not 
                later than 60 days after the date a vacancy 
                occurs.
    ``(c) Responsibilities of the Corporate Board.--
            ``(1) In general.--The Corporate Board shall--
                    ``(A) be responsible for the general 
                supervision of the Corporation and Regional 
                Centers established under section 1663;
                    ``(B) determine (in consultation with 
                Regional Centers) high priority 
                commercialization areas to receive assistance 
                under section 1663;
                    ``(C) review any grant, contract, or 
                cooperative agreement to be made or entered 
                into by the Corporation under section 1660 and 
                any financial assistance to be provided under 
                section 1661;
                    ``(D) make the final decision, by majority 
                vote, on whether and how to provide assistance 
                to an applicant; and
                    ``(E) develop and establish a budget plan 
                and a long-term operating plan to carry out 
                this subtitle.
            ``(2) Authority of the secretary.--
                    ``(A) In general.--The Secretary shall 
                vacate and remand to the Corporate Board for 
                reconsideration any decision made pursuant to 
                paragraph (1)(D) if the Secretary determines 
                that there has been a violation of subsection 
                (j), or any conflict of interest provisions of 
                the bylaws of the Corporate Board, with respect 
                to the decision.
                    ``(B) Reasons.--In the case of any 
                violation and referral of a funding decision to 
                the Corporate Board, the Secretary shall inform 
                the Corporate Board of the reasons for any 
                remand pursuant to subparagraph (A).
    ``(d) Chairperson.--The members of the Corporate Board 
shall select a Chairperson from among the members of the 
Corporate Board. The term of office of the Chairperson shall be 
2 years. The members referred to in paragraphs (1) and (2) of 
subsection (b) may not serve as Chairperson.
    ``(e) Executive Director.--
            ``(1) Appointment.--The Corporate Board shall 
        appoint an Executive Director, subject to the approval 
        of the Secretary.
            ``(2) Duties.--The Executive Director shall be the 
        chief executive officer of the Corporation, with such 
        power and authority as may be conferred by the 
        Corporate Board.
            ``(3) Compensation.--The Executive Director shall 
        receive basic pay at the rate provided for level IV of 
        the Executive Schedule under section 5315 of title 5, 
        United States Code.
    ``(f) Officers.--The Corporate Board shall establish the 
offices and appoint the officers of the Corporation, including 
a Secretary, and define the duties of the officers in a manner 
consistent with this subtitle.
    ``(g) Meetings.--The Corporate Board shall meet at least 3 
times each fiscal year at the call of the Chairperson or at the 
request of the Executive Director. The location of the meetings 
shall be subject to approval of the Executive Director. A 
quorum of the Corporate Board shall consist of a majority of 
the members. The decisions of the Corporate Board shall be made 
by majority vote.
    ``(h) Term; Vacancies.--
            ``(1) In general.--The term of office of a member 
        of the Corporate Board shall be 4 years, except that 
        the members initially appointed shall be appointed to 
        serve staggered terms. A member appointed to fill a 
        vacancy for an unexpired term may be appointed only for 
        the remainder of the term. A vacancy on the Corporate 
        Board shall be filled in the same manner as the 
        original appointment. The Secretary may remove a member 
        of the Corporate Board only for cause.
            ``(2) Transition measure.--The Secretary may 
        appoint to the Corporate Board an individual who, on 
        the day before the date of enactment of the Federal 
        Agriculture Improvement and Reform Act of 1996, was 
        serving on the former Alternative Agricultural Research 
        and Commercialization Board, for a term that does not 
        exceed the term for which the individual was appointed 
        to the former Board.
    ``(i) Compensation.--A member of the Corporate Board who is 
an officer or employee of the United States shall not receive 
any additional compensation by reason of service on the 
Corporate Board. Any other member shall receive, for each day 
(including travel time) the member is engaged in the 
performance of the functions of the Corporate Board, 
compensation at a rate not to exceed the daily equivalent of 
the annual rate in effect for Level IV of the Executive 
Schedule. A member of the Corporate Board shall be reimbursed 
for travel, subsistence, and other necessary expenses incurred 
by the member in the performance of the duties of the member.
    ``(j) Conflict of Interest; Financial Disclosure.--
            ``(1) Conflict of interest.--Except as provided in 
        paragraph (3), no member of the Corporate Board shall 
        vote on any matter respecting any application, 
        contract, claim, or other particular matter pending 
        before the Corporation, in which, to the knowledge of 
        the member, the member, spouse, or child of the member, 
        partner, or organization in which the member is serving 
        as officer, director, trustee, partner, or employee, or 
        any person or organization with whom the member is 
        negotiating or has any arrangement concerning 
        prospective employment, has a financial interest.
            ``(2) Violations.--Violation of paragraph (1) by a 
        member of the Corporate Board shall be cause for 
        removal of the member, but shall not impair or 
        otherwise affect the validity of any otherwise lawful 
        action by the Corporation in which the member 
        participated.
            ``(3) Exceptions.--The prohibitions contained in 
        paragraph (1) shall not apply if a member of the 
        Corporate Board advises the Corporate Board of the 
        nature of the particular matter in which the member 
        proposes to participate, and if the member makes a full 
        disclosure of the financial interest, prior to any 
        participation, and the Corporate Board determines, by 
        majority vote, that the financial interest is too 
        remote or too inconsequential to affect the integrity 
        of the member's services to the Corporation in that 
        matter. The member involved shall not vote on the 
        determination.
            ``(4) Financial disclosure.--A Board member shall 
        be subject to the financial disclosure requirements set 
        forth in subchapter B of chapter XVI of title 5, Code 
        of Federal Regulations (or any corresponding or similar 
        regulation or ruling), applicable to a special 
        Government employee (as defined in section 202(a) of 
        title 18, United States Code).
    ``(k) Delegation of Authority.--
            ``(1) In general.--The Corporate Board may, by 
        resolution, delegate to the Chairperson, the Executive 
        Director, or any other officer or employee any 
        function, power, or duty assigned to the Corporation 
        under this subtitle, other than a function, power, or 
        duty expressly vested in the Corporate Board by 
        subsections (c) through (n).
            ``(2) Prohibition on delegation.--Notwithstanding 
        any other law, the Secretary and any other officer or 
        employee of the United States shall not make any 
        delegation to the Corporate Board, the Chairperson, the 
        Executive Director, or the Corporation of any power, 
        function, or authority not expressly authorized by this 
        subtitle, unless the delegation is made pursuant to an 
        authority in law that expressly makes reference to this 
        section.
            ``(3) Reorganization act.--Notwithstanding any 
        other law, the President (through authorities provided 
        under chapter 9 of title 5, United States Code) may not 
        authorize the transfer to the Corporation of any power, 
        function, or authority in addition to powers, 
        functions, and authorities provided by law.
    ``(l) Bylaws.--Notwithstanding section 1658(f)(2), the 
Corporate Board shall adopt, and may from time to time amend, 
any bylaw that is necessary for the proper management and 
functioning of the Corporation. The Corporate Board shall not 
adopt any bylaw that has not been reviewed and approved by the 
Secretary.
    ``(m) Organization.--The Corporate Board shall provide a 
system of organization to fix responsibility and promote 
efficiency.
    ``(n) Personnel and Facilities of Corporation.--
            ``(1) Appointment and compensation of personnel.--
        The Corporation may select and appoint officers, 
        attorneys, employees, and agents, who shall be vested 
        with such powers and duties as the Corporation may 
        determine.
            ``(2) Use of facilities and services of the 
        department of agriculture.--Notwithstanding any other 
        provision of law, to perform the responsibilities of 
        the Corporation under this subtitle, the Corporation 
        may partially or jointly utilize the facilities of and 
        the services of employees of the Department of 
        Agriculture, without cost to the Corporation.
            ``(3) Government employment laws.--An officer or 
        employee of the Corporation shall be subject to all 
        laws of the United States relating to governmental 
        employment.''.
    (b) Conforming Amendment.--Section 5315 of title 5, United 
States Code, is amended by adding at the end the following:
            ``Executive Director of the Alternative 
        Agricultural Research and Commercialization 
        Corporation.''.

SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.

    Section 1660 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5904) is amended--
            (1) by striking ``Center'' each place it appears 
        and inserting ``Corporation'';
            (2) in subsection (c), by striking ``Board'' and 
        inserting ``Corporate Board''; and
            (3) in subsection (f), by striking ``non-Center'' 
        and inserting ``non-Corporation''.

SEC. 725. COMMERCIALIZATION ASSISTANCE.

    Section 1661 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5905) is amended--
            (1) by striking ``Center'' each place it appears 
        and inserting ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (3) by striking subsection (c);
            (4) by redesignating subsections (d), (e), and (f) 
        as subsections (c), (d), and (e), respectively; and
            (5) in subsection (c) (as so redesignated)--
                    (A) in the subsection heading of paragraph 
                (1), by striking ``director'' and inserting 
                ``executive director''; and
                    (B) by striking ``Director'' each place it 
                appears and inserting ``Executive Director''.

SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.

    Section 1662 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5906) is amended--
            (1) by striking ``Center'' each place it appears 
        (except in subsection (b)) and inserting 
        ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board''; and
            (3) in subsection (b)--
                    (A) in the second sentence, by striking 
                ``Board, a Regional Center, or the Advisory 
                Council'' and inserting ``Board or a Regional 
                Center''; and
                    (B) by striking the third sentence.

SEC. 727. REGIONAL CENTERS.

    Section 1663 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5907) is amended--
            (1) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (2) in subsection (e)(8), by striking ``Center'' 
        and inserting ``Corporation''; and
            (3) in subsection (f)--
                    (A) in paragraph (2), by striking ``in 
                consultation with the Advisory Council 
                appointed under section 1661(c)''; and
                    (B) by striking paragraphs (3) and (4) and 
                inserting the following:
            ``(3) Recommendation.--The Regional Director, based 
        on the comments of the reviewers, shall make and submit 
        a recommendation to the Board, which shall not be 
        binding on the Board.''.

SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    REVOLVING FUND.

    Section 1664 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5908) is amended to read as 
follows:

``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    REVOLVING FUND.

    ``(a) Establishment.--There is established in the Treasury 
of the United States a revolving fund to be known as the 
Alternative Agricultural Research and Commercialization 
Revolving Fund. The Fund shall be available to the Corporation, 
without fiscal year limitation, to carry out this subtitle.
    ``(b) Contents of Fund.--There shall be deposited in the 
Fund--
            ``(1) such amounts as may be appropriated or 
        transferred to support programs and activities of the 
        Corporation;
            ``(2) payments received from any source for 
        products, services, or property furnished in connection 
        with the activities of the Corporation;
            ``(3) fees and royalties collected by the 
        Corporation from licensing or other arrangements 
        relating to commercialization of products developed 
        through projects funded in whole or part by grants, 
        contracts, or cooperative agreements executed by the 
        Corporation;
            ``(4) proceeds from the sale of assets, loans, and 
        equity interests made in furtherance of the purposes of 
        the Corporation;
            ``(5) donations or contributions accepted by the 
        Corporation to support authorized programs and 
        activities; and
            ``(6) any other funds acquired by the Corporation.
    ``(c) Funding Allocations.--Funding of projects and 
activities under this subtitle shall be subject to the 
following restrictions:
            ``(1) Of the total amount of funds made available 
        for a fiscal year under this subtitle--
                    ``(A) not more than the lesser of 15 
                percent or $3,000,000 may be set aside to be 
                used for authorized administrative expenses of 
                the Corporation;
                    ``(B) not more than 1 percent may be set 
                aside to be used for generic studies and 
                specific reviews of individual proposals for 
                financial assistance; and
                    ``(C) except as provided in subsection (e), 
                not less than 84 percent shall be set aside to 
                be awarded to qualified applicants who file 
                project applications with, or respond to 
                requests for proposals from, the Corporation 
                under sections 1660 and 1661.
            ``(2) Any funds remaining uncommitted at the end of 
        a fiscal year shall be credited to the Fund and added 
        to the total program funds available to the Corporation 
        for the next fiscal year.
    ``(d) Authorized Administrative Expenses.--For the purposes 
of this section, authorized administrative expenses shall 
include all ordinary and necessary expenses, including all 
compensation for personnel and consultants, expenses for 
computer usage, or space needs of the Corporation and similar 
expenses. Funds authorized for administrative expenses shall 
not be available for the acquisition of real property.
    ``(e) Project Monitoring.--The Corporate Board may 
establish, in the bylaws of the Corporate Board, that a 
percentage (which shall not exceed 1 percent) of the funds 
provided under subsection (c) for any commercialization project 
shall be expended to ensure that project funds are being 
utilized in accordance with the project agreement.
    ``(f) Termination of the Fund.--On expiration of the 
authority provided by this subtitle, all assets (after payment 
of all outstanding obligations) of the Fund shall revert to the 
general fund of the Treasury.
    ``(g) Authorization of Appropriations; Capitalization.--
            ``(1) Authorization of appropriation.--There are 
        authorized to be appropriated to the Fund $75,000,000 
        for each of fiscal years 1996 through 2002.
            ``(2) Capitalization.--The Executive Director may 
        pay in as capital of the Corporation, out of dollar 
        receipts made available through annual appropriations, 
        $75,000,000 for each of fiscal years 1996 through 2002. 
        On the payment of an amount of capital by the Executive 
        Director, the Corporation shall issuean equivalent 
amount of capital stock to the Secretary of the Treasury.
            ``(3) Transfer.--All obligations, assets, and 
        related rights and responsibilities of the former 
        Alternative Agricultural Research and Commercialization 
        Center established under former section 1658 of this 
        Act (as in effect on the day before the date of 
        enactment of the Federal Agriculture Improvement and 
        Reform Act of 1996) are transferred to the 
        Corporation.''.

SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION 
                    ASSISTANCE.

    Subtitle G of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.) is 
amended by adding at the end the following:

``SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICULTURAL RESEARCH AND 
                    COMMERCIALIZATION PRODUCTS.

    ``(a) Definition of Executive Agency.--In this section, the 
term `executive agency' has the meaning provided the term in 
section 4(1) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(1)).
    ``(b) Procurement.--To further the achievement of the 
purposes specified in section 1657(b), an executive agency may, 
for any procurement involving the acquisition of property, 
establish set-asides and preferences for property that has been 
commercialized with assistance provided under this subtitle.
    ``(c) Set-Asides.--Procurements solely for property may be 
set-aside exclusively for products developed with 
commercialization assistance provided under section 1661.
    ``(d) Preferences.--Preferences for property developed with 
assistance provided under this subtitle in procurements 
involving the acquisition of property may be--
            ``(1) a price preference, if the procurement is 
        solely for property, of not greater than a percentage 
        to be determined within the sole discretion of the head 
        of the procuring agency; or
            ``(2) a technical evaluation preference included as 
        an award factor or subfactor as determined within the 
        sole discretion of the head of the procuring agency.
    ``(e) Notice.--Each competitive solicitation or invitation 
for bids selected by an executive agency for a set-aside or 
preference under this section shall contain a provision 
notifying offerors where a list of products eligible for the 
set aside or preference may be obtained.
    ``(f) Eligibility.--Offerors shall receive the set aside or 
preference required under this section if, in the case of 
products developed with financial assistance under--
            ``(1) section 1660, less than 10 years have elapsed 
        since the expiration of the grant, cooperative 
        agreement, or contract;
            ``(2) paragraph (1) or (2) of section 1661(a), less 
        than 5 years have elapsed since the date the loan was 
        made or insured;
            ``(3) section 1661(a)(3), less than 5 years have 
        elapsed since the date of sale of any remaining 
        government equity interest in the company; or
            ``(4) section 1661(a)(4), less than 5 years have 
        elapsed since the date of the final payment on the 
        repayable grant.''.

SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND REPORT.

    (a) Business Plan.--Not later than 180 days after the date 
of enactment of this Act, the Alternative Agricultural Research 
and Commercialization Corporation established by section 1658 
of the Food, Agriculture, Conservation, and Trade Act of 1990 
shall--
            (1) develop a 5-year business plan pursuant to 
        section 1659(c)(1)(E) of the Act; and
            (2) submit the plan to the Secretary of 
        Agriculture, the Committee on Agriculture of the House 
        of Representatives, and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate.
    (b) Feasibility Study and Report.--
            (1) Study.--The Secretary of Agriculture shall 
        conduct a study of, and prepare a report on, the 
        continued feasibility of the Alternative Agricultural 
        Research and Commercialization Corporation. In 
        conducting the study, the Secretary shall examine 
        options for privatizing the Corporation and converting 
        the Corporation to a Government-sponsored enterprise.
            (2) Report.--Not later than December 31, 2001, the 
        Secretary shall transmit the report required by 
        paragraph (1) to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate.

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

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.

    (a) In General.--Section 306(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)) is amended--
            (1) in the first sentence of paragraph (2), by 
        striking ``$500,000,000'' and inserting 
        ``$590,000,000'';
            (2) by striking paragraph (7) and inserting the 
        following:
            ``(7) Definition of rural and rural areas.--For the 
        purpose of water and waste disposal grants and direct 
        and guaranteed loans provided under paragraphs (1) and 
        (2), the terms `rural' and `rural area' mean a city, 
        town, or unincorporated area that has a population of 
        no more than 10,000 inhabitants.'';
            (3) by striking paragraphs (9), (10), and (11) and 
        inserting the following:
            ``(9) Conformity with state drinking water 
        standards.--No Federal funds shall be made available 
        under this section for a water system unless the 
        Secretary determines that the water system will make 
        significant progress toward meeting the standards 
        established under title XIV of the Public Health 
        Service Act (commonly known as the `Safe Drinking Water 
        Act') (42 U.S.C. 300f et seq.).
            ``(10) Conformity with federal and state water 
        pollution control standards.--No Federal funds shall be 
        made available under this section for a water treatment 
        discharge or waste disposal system unless the Secretary 
        determines that the effluent from the system conforms 
        with applicable Federal and State water pollution 
        control standards.
            ``(11) Rural business opportunity grants.--
                    ``(A) In general.--The Secretary may make 
                grants, not to exceed $1,500,000 annually, to 
                public bodies, private nonprofit community 
                development corporations or entities, or such 
                other agencies as the Secretary may select to 
                enable the recipients--
                            ``(i) to identify and analyze 
                        business opportunities, including 
                        opportunities in export markets, that 
                        will use local rural economic and human 
                        resources;
                            ``(ii) to identify, train, and 
                        provide technical assistance to 
                        existing or prospective rural 
                        entrepreneurs and managers;
                            ``(iii) to establish business 
                        support centers and otherwise assist in 
                        the creation of new rural businesses, 
                        the development of methods of financing 
                        local businesses, and the enhancement 
                        of the capacity of local individuals 
                        and entities to engage in sound 
                        economic activities;
                            ``(iv) to conduct regional, 
                        community, and local economic 
                        development planning and coordination, 
                        and leadership development; and
                            ``(v) to establish centers for 
                        training, technology, and trade that 
                        will provide training to rural 
                        businesses in the utilization of 
                        interactive communications technologies 
                        to develop international trade 
                        opportunities and markets.
                    ``(B) Criteria.--In awarding the grants, 
                the Secretary shall consider, among other 
                criteria to be established by the Secretary--
                            ``(i) the extent to which the 
                        applicant provides development services 
                        in the rural service area of the 
                        applicant; and
                            ``(ii) the capability of the 
                        applicant to accomplish the activities 
                        described in the relevant clauses of 
                        subparagraph (A).
                    ``(C) Coordination.--The Secretary shall 
                ensure, to the maximum extent practicable, that 
                assistance provided under this paragraph is 
                coordinated with and delivered in cooperation 
                with similar services or assistance provided to 
                rural residents by the Cooperative State 
                Research, Education, and Extension Service or 
                other Federal agencies.
                    ``(D) Authorization of appropriations.--
                There are authorized to be appropriated to 
                carry out this paragraph $7,500,000 for each of 
                fiscal years 1996 through 2002.'';
            (4) by striking paragraphs (14) and (15);
            (5) by redesignating paragraphs (16) through (20) 
        as paragraphs (14) through (18), respectively; and
            (6) in paragraph (14) (as so redesignated)--
                    (A) by striking ``(14)(A) The'' and 
                inserting the following:
            ``(14) Rural water and wastewater technical 
        assistance and training programs.--
                    ``(A) In general.--The'';
                    (B) in subparagraph (A)--
                            (i) by striking ``(i) identify'' 
                        and inserting the following:
                            ``(i) identify'';
                            (ii) by striking ``(ii) prepare'' 
                        and inserting the following:
                            ``(ii) prepare''; and
                            (iii) by striking ``(iii) improve'' 
                        and inserting the following:
                            ``(iii) improve'';
                    (C) in subparagraph (B), by striking ``(B) 
                In'' and inserting the following:
                    ``(B) Selection priority.--In''; and
                    (D) in subparagraph (C)--
                            (i) by striking ``(C) Not'' and 
                        inserting the following:
                    ``(C) Funding.--Not''; and
                            (ii) by striking ``2 per centum of 
                        any funds provided in Appropriations 
                        Acts'' and inserting ``3 percent of any 
                        funds appropriated''.
    (b) Conforming Amendment.--The second sentence of section 
309A(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1929a(a)) (as amended by section 661(c)(1)) is amended 
by striking ``, 306(a)(14),''.

SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL 
                    COMMUNITIES.

    Section 306A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926a) is amended--
            (1) in subsection (e)--
                    (A) in paragraph (1)(A), by striking 
                ``15,000'' and inserting ``10,000''; and
                    (B) in paragraph (2), by striking ``5,000'' 
                and inserting ``3,000''; and
            (2) by striking subsection (i) and inserting the 
        following:
    ``(i) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$35,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR 
                    SMALLEST COMMUNITIES.

    Section 306B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926b) is repealed.

SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

    Section 309(f) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929(f)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (6) as 
        paragraphs (1) through (5), respectively.

SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

    Section 309A(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929a(g)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (8) as 
        paragraphs (1) through (7), respectively.

SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT 
                    LOANS.

    Section 310A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1931) is repealed.

SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

    (a) In General.--Section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by striking ``and'' at the end of 
                clause (2); and
                    (B) by inserting before the period the 
                following: ``, and (4) to facilitate economic 
                opportunity for industries undergoing 
                adjustment from terminated Federal agricultural 
                price and income support programs or increased 
                competition from foreign trade'';
            (2) in subsection (b), by striking ``(b)(1)'' and 
        all that follows through ``(2) The'' and inserting the 
        following:
    ``(b) Solid Waste Management Grants.--The'';
            (3) in subsection (c)--
                    (A) by striking ``(c)(1) The'' and 
                inserting the following:
    ``(c) Rural Business Enterprise Grants.--
            ``(1) In general.--The'';
                    (B) in paragraph (1), by inserting 
                ``(including nonprofit entities)'' after 
                ``private business enterprises'';
                    (C) in paragraph (2)--
                            (i) by striking ``(2) The'' and 
                        inserting the following:
            ``(2) Passenger transportation services or 
        facilities.--The''; and
                            (ii) by striking ``make grants'' 
                        and inserting ``award grants on a 
                        competitive basis''; and
                    (D) by adding at the end the following:
            ``(3) Grants to aid industries in adjusting to 
        terminated federal agricultural programs or increased 
        foreign competition.--The Secretary may make grants 
        under this section to facilitate economic opportunity 
        for industries undergoing adjustment from terminated 
        Federal agricultural price and income support programs 
        or increased competition from foreign trade.'';
            (4) by striking subsection (e) and inserting the 
        following:
    ``(e) Rural Cooperative Development Grants.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Nonprofit institution.--The term 
                `nonprofit institution' means any organization 
                or institution, including an accredited 
                institution of higher education, no part of the 
                net earnings of which inures, or may lawfully 
                inure, to the benefit of any private 
                shareholder or individual.
                    ``(B) United states.--The term `United 
                States' means the several States, the District 
                of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, American Samoa, and 
                the other territories and possessions of the 
                United States.
            ``(2) Grants.--The Secretary shall make grants 
        under this subsection to nonprofit institutions for the 
        purpose of enabling the institutions to establish and 
        operate centers for rural cooperative development.
            ``(3) Goals.--The goals of a center funded under 
        this subsection shall be to facilitate the creation of 
        jobs in rural areas through the development of new 
        rural cooperatives, value added processing, and rural 
        businesses.
            ``(4) Application.--Any nonprofit institution 
        seeking a grant under paragraph (2) shall submit to the 
        Secretary an application containing a plan for the 
        establishment and operation by the institution of a 
        center or centers for cooperative development. The 
        Secretary may approve the application if the plan 
        contains the following:
                    ``(A) A provision that substantiates that 
                the center will effectively serve rural areas 
                in the United States.
                    ``(B) A provision that the primary 
                objective of the center will be to improve the 
                economic condition of rural areas through 
                cooperative development.
                    ``(C) A description of the activities that 
                the center will carry out to accomplish the 
                objective. The activities may include the 
                following:
                            ``(i) Programs for applied research 
                        and feasibility studies that may be 
                        useful to individuals, cooperatives, 
                        small businesses, and other similar 
                        entities in rural areas served by the 
                        center.
                            ``(ii) Programs for the collection, 
                        interpretation, and dissemination of 
                        information that may be useful to 
                        individuals, cooperatives, small 
                        businesses, and other similar entities 
                        in rural areas served by the center.
                            ``(iii) Programs providing training 
                        and instruction for individuals, 
                        cooperatives, small businesses, and 
                        other similar entities in rural areas 
                        served by the center.
                            ``(iv) Programs providing loans and 
                        grants to individuals, cooperatives, 
                        small businesses, and other similar 
                        entities in rural areas served by the 
                        center.
                            ``(v) Programs providing technical 
                        assistance, research services, and 
                        advisory services to individuals, 
                        cooperatives, small businesses, and 
                        other similar entities in rural areas 
                        served by the center.
                            ``(vi) Programs providing for the 
                        coordination of services and sharing of 
                        information among the center.
                    ``(D) A description of the contributions 
                that the activities are likely to make to the 
                improvement of the economic conditions of the 
                rural areas for which the center will provide 
                services.
                    ``(E) Provisions that the center, in 
                carrying out the activities, will seek, where 
                appropriate, the advice, participation, 
                expertise, and assistance of representatives of 
                business, industry, educational institutions, 
                the Federal Government, and State and local 
                governments.
                    ``(F) Provisions that the center will take 
                all practicable steps to develop continuing 
                sources of financial support for the center, 
                particularly from sources in the private 
                sector.
                    ``(G) Provisions for--
                            ``(i) monitoring and evaluating the 
                        activities by the nonprofit institution 
                        operating the center; and
                            ``(ii) accounting for money 
                        received by the institution under this 
                        section.
            ``(5) Awarding grants.--Grants made under paragraph 
        (2) shall be made on a competitive basis. In making 
        grants under paragraph (2), the Secretary shall give 
        preference to grant applications providing for the 
        establishment of centers for rural cooperative 
        development that--
                    ``(A) demonstrate a proven track record in 
                administering a nationally coordinated, 
                regionally or State-wide operated project;
                    ``(B) demonstrate previous expertise in 
                providing technical assistance in rural areas;
                    ``(C) demonstrate the ability to assist in 
                the retention of businesses, facilitate the 
                establishment of cooperatives and new 
                cooperative approaches, and generate employment 
                opportunities that will improve the economic 
                conditions of rural areas;
                    ``(D) demonstrate the ability to create 
                horizontal linkages among businesses within and 
                among various sectors in rural areas of the 
                United States and vertical linkages to domestic 
                and international markets;
                    ``(E) commit to providing technical 
                assistance and other services to underserved 
                and economically distressed areas in rural 
                areas of the United States; and
                    ``(F) commit to providing greater than a 25 
                percent matching contribution with private 
                funds and in-kind contributions.
            ``(6) 1-year grants; authority to approve grant for 
        1 additional year without application.--The Secretary 
        shall make grants under this subsection for a period of 
        1 year. The Secretary shall evaluate programs receiving 
        assistance under this subsection. If the Secretary 
        determines it to be in the best interest of the 
        program, the Secretary may award an additional grant to 
        the program for the immediately succeeding year without 
        application for the grant.
            ``(7) Technical assistance to prevent excessive 
        unemployment or underemployment.--In carrying out this 
        subsection, the Secretary may provide technical 
        assistance to alleviate or prevent conditions of 
        excessive unemployment, underemployment, outmigration, 
        or low employment growth in economically distressed 
        rural areas that the Secretary determines have a 
        substantial need for the assistance. The assistance may 
        include planning and feasibility studies, management 
        and operational assistance, and studies evaluating the 
        need for development potential of projects that 
        increase employment and improve economic growth in the 
        areas.
            ``(8) Grants to defray administrative costs.--The 
        Secretary may make grants to defray not to exceed 75 
        percent of the costs incurred by organizations and 
        public bodies to carry out projects for which grants or 
        loans are made under this subsection. For purposes of 
        determining the non-Federal share of the costs, the 
        Secretary shall consider contributions in cash and in 
        kind, fairly evaluated, including premises, equipment, 
        and services.
            ``(9) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $50,000,000 for each of fiscal years 1996 
        through 2002.'';
            (5) by striking subsections (f), (g), (h), and (i);
            (6) by redesignating subsection (j) as subsection 
        (f); and
            (7) by adding at the end the following:
    ``(g) Loan Guarantees for the Purchase of Cooperative 
Stock.--
            ``(1) Definition of farmer.--In this subsection, 
        the term `farmer' means any farmer that the Secretary 
        determines is a family farmer.
            ``(2) Loan guarantees.--The Secretary may guarantee 
        loans under this section to individual farmers for the 
        purpose of purchasing start-up capital stock of a 
        farmer cooperative established for the purpose of 
        processing an agricultural commodity.
            ``(3) Eligibility.--To be eligible for a loan 
        guarantee under this subsection, a farmer must produce 
        the agricultural commodity that will be processed by 
        the cooperative.''.
    (b) Conforming Amendments.--
            (1) Clause (iii) of section 307(a)(6)(B) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1927(a)(6)(B)) (as redesignated by section 661(a)(2)) 
        is amended by striking ``subsections (d) and (e) of 
        section 310B'' and inserting ``section 310B(d)''.
            (2) Section 232(c)(2) of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6942(c)(2)) is amended--
                    (A) by striking ``310B(b)(2)'' and 
                inserting ``310B(b)''; and
                    (B) by striking ``1932(b)(2)'' and 
                inserting ``1932(b)''.
            (3) Section 233(b) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6943(b)) is 
        amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraph (3) as 
                paragraph (2).

SEC. 748. ADMINISTRATION.

    Section 331(b)(4) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981(b)(4)) is amended--
            (1) by inserting after ``claims'' the following: 
        ``(including debts and claims arising from loan 
        guarantees)'';
            (2) by striking ``Farmers Home Administration or'' 
        and inserting ``Consolidated Farm Service Agency, Rural 
        Utilities Service, Rural Housing Service, Rural 
        Business-Cooperative Service, or a successor agency, 
        or''; and
            (3) by inserting after ``activities under the 
        Housing Act of 1949.'' the following: ``In the case of 
        a security instrument entered into under the Rural 
        Electrification Act of 1936 (7 U.S.C. 901 et seq.), the 
        Secretary shall notify the Attorney General of the 
        intent of the Secretary to exercise the authority of 
        the Secretary under this paragraph.''.

SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 338 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1988) is amended--
            (1) by striking subsections (b), (c), (d), and (e); 
        and
            (2) by redesignating subsection (f) as subsection 
        (b).
    (b) Conforming Amendments.--
            (1) The first sentence of section 309(g)(1) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1929(g)(1)) is amended by inserting after ``section 
        338(c)'' the following: ``(before the amendment made by 
        section 749(a)(1) of the Federal Agriculture 
        Improvement and Reform Act of 1996)''.
            (2) Section 343(b) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(b)) is amended by 
        striking ``338(f),'' and inserting ``338(b),''.

SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.

    Section 345 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1993) is repealed.

SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

    Section 363 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006e) is amended by adding at the end the 
following: ``This section shall not apply to a loan made or 
guaranteed under this title for a utility line.''.

SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    The Consolidated Farm and Rural Development Act is amended 
by inserting after section 363 (7 U.S.C. 2006e) the following:

``SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    ``(a) Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a 
        program under which the Secretary may guarantee a loan 
        for any rural development program that is made by a 
        lender certified by the Secretary.
            ``(2) Certification requirements.--The Secretary 
        may certify a lender if the lender meets such criteria 
        as the Secretary may prescribe in regulations, 
        including the ability of the lender to properly make, 
        service, and liquidate the guaranteed loans of the 
        lender.
            ``(3) Condition of certification.--As a condition 
        of certification, the Secretary may require the lender 
        to undertake to service the guaranteed loan using 
        standards that are not less stringent than generally 
        accepted banking standards concerning loan servicing 
        that are used by prudent commercial or cooperative 
        lenders.
            ``(4) Guarantee.--Notwithstanding any other 
        provision of law, the Secretary may guarantee not more 
        than 80 percent of a loan made by a certified lender 
        described in paragraph (1), if the borrower of the loan 
        meets the eligibility requirements and such other 
        criteria for the loan guarantee that are established by 
        the Secretary.
            ``(5) Certifications.--With respect to loans to be 
        guaranteed, the Secretary may permit a certified lender 
        to make appropriate certifications (as provided in 
        regulations issued by the Secretary)--
                    ``(A) relating to issues such as 
                creditworthiness, repayment ability, adequacy 
                of collateral, and feasibility of the 
                operation; and
                    ``(B) that the borrower is in compliance 
                with all requirements of law, including 
                regulations issued by the Secretary.
            ``(6) Relationship to other requirements.--This 
        subsection shall not affect the responsibility of the 
        Secretary to determine eligibility, review financial 
        information, and otherwise assess an application.
    ``(b) Preferred Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a 
        preferred certified lenders program for lenders who 
        establish their--
                    ``(A) knowledge of, and experience under, 
                the program established under subsection (a);
                    ``(B) knowledge of the regulations 
                concerning the particular guaranteed loan 
                program; and
                    ``(C) proficiency related to the certified 
                lender program requirements.
            ``(2) Additional lending institutions.--The 
        Secretary may certify any lending institution as a 
        preferred certified lender if the institution meets 
        such additional criteria as the Secretary may prescribe 
        by regulation.
            ``(3) Revocation of designation.--The designation 
        of a lender as a preferred certified lender shall be 
        revoked if the Secretary determines that the lender is 
        not adhering to the rules and regulations applicable to 
        the program or if the loss experiences of the preferred 
        certified lender are greater than other preferred 
        certified lenders, except that the suspension or 
        revocation shall not affect any outstanding guarantee.
            ``(4) Condition of certification.--As a condition 
        of the preferred certification, the Secretary shall 
        require the lender to undertake to service the loan 
        guaranteed by the Secretary under this subsection using 
        generally accepted banking standards concerning loan 
        servicing employed by prudent commercial or cooperative 
        lenders. The Secretary shall, at least annually, 
        monitor the performance of each preferred certified 
        lender to ensure that the conditions of the 
        certification are being met.
            ``(5) Effect of preferred lender certification.--
        Notwithstanding any other provision of law, the 
        Secretary may--
                    ``(A) guarantee not more than 80 percent of 
                any approved loan made by a preferred certified 
                lender as described in this subsection, if the 
                borrower meets the eligibility requirements and 
                such other criteria as may be applicable to 
                loans guaranteed by the Secretary; and
                    ``(B) permit preferred certified lenders to 
                make all decisions, with respect to loans to be 
                guaranteed by the Secretary under this 
                subsection relating to creditworthiness, the 
                closing, monitoring, collection, and 
                liquidation of loans, and to accept appropriate 
                certifications, as provided in regulations 
                issued by the Secretary, that the borrower is 
                in compliance with all requirements of law and 
                regulations issued by the Secretary.''.

SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.

    (a) In General.--Section 365 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008) is repealed.
    (b) Conforming Amendments.--
            (1) Section 2375 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 6613) is 
        amended--
                    (A) in subsection (e), by striking ``, as 
                defined in section 365(b)(2) of the 
                Consolidated Farm and Rural Development Act,''; 
                and
                    (B) by adding at the end the following:
    ``(g) Definition of Designated Rural Development Program.--
In this section, the term `designated rural development 
program' means a program carried out under section 304(b), 
306(a), or 310B(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)) for 
which funds are available at any time during the fiscal 
year.''.
            (2) Paragraph (2) of section 233(b) of the 
        Department of Agriculture Reorganization Act of 1994 (7 
        U.S.C. 6943(b)) (as redesignated by section 
        747(b)(3)(B)) is amended by striking ``sections 365 
        through 369 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2008-2008d)'' and inserting 
        ``section 369 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2008d)''.

SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.

    Section 366 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008a) is repealed.

SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.

    Section 367 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008b) is repealed.

SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.

    Section 368 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008c) is repealed.

SEC. 757. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    The Consolidated Farm and Rural Development Act is amended 
by inserting after section 306C (7 U.S.C. 1926c) the following:

``SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    ``(a) In General.--The Secretary may make grants to the 
State of Alaska for the benefit of rural or Native villages in 
Alaska to provide for the development and construction of water 
and wastewater systems to improve the health and sanitation 
conditions in those villages.
    ``(b) Matching Funds.--To be eligible to receive a grant 
under subsection (a), the State of Alaska shall provide equal 
matching funds from non-Federal sources.
    ``(c) Consultation With the State of Alaska.--The Secretary 
shall consult with the State of Alaska on a method of 
prioritizing the allocation of grants under subsection (a) 
according to the needs of, and relative health and sanitation 
conditions in, each village.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$15,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 758. APPLICATION REQUIREMENTS RELATING TO WATER AND WASTE DISPOSAL 
                    LOAN AND GRANT PROGRAMS.

    Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 926(a)) is amended by inserting after 
paragraph (4) the following:
            ``(5) Application requirements.--Not earlier than 
        60 days before a preliminary application is filed for a 
        loan under paragraph (1) or a grant under paragraph (2) 
        for a water or waste disposal purpose, a notice of the 
        intent of the applicant to apply for the loan or grant 
        shall be published in a general circulation newspaper. 
        The selection of engineers for a project design shall 
        be done by a request for proposals by the applicant.''.

SEC. 759. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    The Consolidated Farm and Rural Development Act (as amended 
by section 649) is amended by adding at the end the following:

``SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    ``(a) Definitions.--In this section:
            ``(1) Board.--The term `Board' means the Board of 
        Directors established under subsection (f).
            ``(2) Center.--The term `Center' means the National 
        Sheep Industry Improvement Center established under 
        subsection (b).
            ``(3) Eligible entity.--The term `eligible entity' 
        means an entity that promotes the betterment of the 
        United States sheep or goat industries and that is--
                    ``(A) a public, private, or cooperative 
                organization;
                    ``(B) an association, including a 
                corporation not operated for profit;
                    ``(C) a federally recognized Indian Tribe; 
                or
                    ``(D) a public or quasi-public agency.
            ``(4) Fund.--The term `Fund' means the National 
        Sheep Industry Improvement Center Revolving Fund 
        established under subsection (e).
    ``(b) Establishment of Center.--The Secretary shall 
establish a National Sheep Industry Improvement Center.
    ``(c) Purposes.--The purposes of the Center shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by private and State entities to 
        maximize the impact of Federal assistance to strengthen 
        and enhance production and marketing of sheep or goat 
        products in the United States;
            ``(2) optimize the use of available human capital 
        and resources within the sheep or goat industries;
            ``(3) provide assistance to meet the needs of the 
        sheep or goat industry for infrastructure development, 
        business development, production, resource development, 
        and market and environmental research;
            ``(4) advance activities that empower and build the 
        capacity of the United States sheep or goat industry to 
        design unique responses to the special needs of the 
        sheep or goat industries on both a regional and 
        national basis; and
            ``(5) adopt flexible and innovative approaches to 
        solving the long-term needs of the United States sheep 
        or goat industry.
    ``(d) Strategic Plan.--
            ``(1) In general.--The Center shall submit to the 
        Secretary an annual strategic plan for the delivery of 
        financial assistance provided by the Center.
            ``(2) Requirements.--A strategic plan shall 
        identify--
                    ``(A) goals, methods, and a benchmark for 
                measuring the success of carrying out the plan 
                and how the plan relates to the national and 
                regional goals of the Center;
                    ``(B) the amount and sources of Federal and 
                non-Federal funds that are available for 
                carrying out the plan;
                    ``(C) funding priorities;
                    ``(D) selection criteria for funding; and
                    ``(E) a method of distributing funding.
    ``(e) Revolving Fund.--
            ``(1) Establishment.--There is established in the 
        Treasury the National Sheep Industry Improvement Center 
        Revolving Fund. The Fund shall be available to the 
        Center, without fiscal year limitation, to carry out 
        the authorized programs and activities of the Center 
        under this section.
            ``(2) Contents of fund.--There shall be deposited 
        in the Fund--
                    ``(A) such amounts as may be appropriated, 
                transferred, or otherwise made available to 
                support programs and activities of the Center;
                    ``(B) payments received from any source for 
                products, services, or property furnished in 
                connection with the activities of the Center;
                    ``(C) fees and royalties collected by the 
                Center from licensing or other arrangements 
                relating to commercialization of products 
                developed through projects funded, in whole or 
                part, by grants, contracts, or cooperative 
                agreements executed by the Center;
                    ``(D) proceeds from the sale of assets, 
                loans, and equity interests made in furtherance 
                of the purposes of the Center;
                    ``(E) donations or contributions accepted 
                by the Center to support authorized programs 
                and activities; and
                    ``(F) any other funds acquired by the 
                Center.
            ``(3) Use of fund.--
                    ``(A) In general.--The Center may use 
                amounts in the Fund to make grants and loans to 
                eligible entities in accordance with a 
                strategic plan submitted under subsection (d).
                    ``(B) Continued existence.--The Center 
                shall manage the Fund in a manner that ensures 
                that sufficient amounts are available in the 
                Fund to carry out subsection (c).
                    ``(C) Diverse area.--The Center shall, to 
                the maximum extent practicable, use the Fund to 
                serve broad geographic areas and regions of 
                diverse production.
                    ``(D) Variety of loans and grants.--The 
                Center shall, to the maximum extent 
                practicable, use the Fund to provide a variety 
                of grants and intermediate- and long-term 
                loans.
                    ``(E) Administration.--The Center may not 
                use more than 3 percent of the amounts in the 
                Fund for a fiscal year for the administration 
                of the Center.
                    ``(F) Influencing legislation.--None of the 
                amounts in the Fund may be used to influence 
                legislation.
                    ``(G) Accounting.--To be eligible to 
                receive amounts from the Fund, an entity must 
                agree to account for the amounts using 
                generally accepted accounting principles.
                    ``(H) Uses of fund.--The Center may use 
                amounts in the Fund to--
                            ``(i) participate with Federal and 
                        State agencies in financing activities 
                        that are in accordance with a strategic 
                        plan submitted under subsection (d), 
                        including participation with several 
                        States in a regional effort;
                            ``(ii) participate with other 
                        public and private funding sources in 
                        financing activities that are in 
                        accordance with the strategic plan, 
                        including participation in a regional 
                        effort;
                            ``(iii) provide security for, or 
                        make principal or interest payments on, 
                        revenue or general obligation bonds 
                        issued by a State, if the proceeds from 
                        the sale of the bonds are deposited in 
                        the Fund;
                            ``(iv) accrue interest;
                            ``(v) guarantee or purchase 
                        insurance for local obligations to 
                        improve credit market access or reduce 
                        interest rates for a project that is in 
                        accordance with the strategic plan; or
                            ``(vi) sell assets, loans, and 
                        equity interests acquired in connection 
                        with the financing of projects funded 
                        by the Center.
            ``(4) Loans.--
                    ``(A) Rate.--A loan from the Fund may be 
                made at an interest rate that is below the 
                market rate or may be interest free.
                    ``(B) Term.--The term of a loan may not 
                exceed the shorter of--
                            ``(i) the useful life of the 
                        activity financed; or
                            ``(ii) 40 years.
                    ``(C) Source of repayment.--The Center may 
                not make a loan from the Fund unless the 
                recipient establishes an assured source of 
                repayment.
                    ``(D) Proceeds.--All payments of principal 
                and interest on a loan made from the Fund shall 
                be deposited into the Fund.
            ``(5) Maintenance of effort.--The Center shall use 
        the Fund only to supplement and not to supplant 
        Federal, State, and private funds expended for rural 
        development.
            ``(6) Funding.--
                    ``(A) Deposit of funds.--All Federal and 
                non-Federal amounts received by the Center to 
                carry out this section shall be deposited in 
                the Fund.
                    ``(B) Mandatory funds.--Out of any moneys 
                in the Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall provide to the 
                Center not to exceed $20,000,000 to carry out 
                this section.
                    ``(C) Additional funds.--In addition to any 
                funds provided under subparagraph (B), there is 
                authorized to be appropriated $30,000,000 to 
                carry out this section.
                    ``(D) Privatization.--No additional Federal 
                funds shall be used to carry out this section 
                beginning on the earlier of--
                            ``(i) the date that is 10 years 
                        after the date of enactment of this 
                        section; or
                            ``(ii) the day after a total of 
                        $50,000,000 has been made available 
                        under subparagraphs (B) and (C) to 
                        carry out this section.
    ``(f) Board of Directors.--
            ``(1) In general.--The management of the Center 
        shall be vested in a Board of Directors.
            ``(2) Powers.--The Board shall--
                    ``(A) be responsible for the general 
                supervision of the Center;
                    ``(B) review any grant, loan, contract, or 
                cooperative agreement to be made or entered 
                into by the Center and any financial assistance 
                provided to the Center;
                    ``(C) make the final decision, by majority 
                vote, on whether and how to provide assistance 
                to an applicant; and
                    ``(D) develop and establish a budget plan 
                and a long-term operating plan to carry out the 
                goals of the Center.
            ``(3) Composition.--The Board shall be composed 
        of--
                    ``(A) 7 voting members, of whom--
                            ``(i) 4 members shall be active 
                        producers of sheep or goats in the 
                        United States;
                            ``(ii) 2 members shall have 
                        expertise in finance and management; 
                        and
                            ``(iii) 1 member shall have 
                        expertise in lamb, wool, goat, or goat 
                        product marketing; and
                    ``(B) 2 nonvoting members, of whom--
                            ``(i) 1 member shall be the Under 
                        Secretary of Agriculture for Rural 
                        Development; and
                            ``(ii) 1 member shall be the Under 
                        Secretary of Agriculture for Research, 
                        Education, and Economics.
            ``(4) Nomination.--
                    ``(A) Nominating body.--The Secretary shall 
                appoint the voting members of the Board from 
                nominations submitted by organizations 
                described in subparagraph (B).
                    ``(B) National organizations.--A national 
                organization is described in this subparagraph 
                if the organization--
                            ``(i) consists primarily of active 
                        sheep or goat producers in the United 
                        States; and
                            ``(ii) has as the primary interest 
                        of the organization the production of 
                        sheep or goats in the United States.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the term of office of a voting member of 
                the Board shall be 3 years.
                    ``(B) Staggered initial terms.--The initial 
                voting members of the Board (other than the 
                chairperson of the initially established Board) 
                shall serve for staggered terms of 1, 2, and 3 
                years, as determined by the Secretary.
                    ``(C) Reelection.--A voting member may be 
                reelected for not more than 1 additional term.
            ``(6) Vacancy.--
                    ``(A) In general.--A vacancy on the Board 
                shall be filled in the same manner as the 
                original Board.
                    ``(B) Reelection.--A member elected to fill 
                a vacancy for an unexpired term may be 
                reelected for 1 full term.
            ``(7) Chairperson.--
                    ``(A) In general.--The Board shall select a 
                chairperson from among the voting members of 
                the Board.
                    ``(B) Term.--The term of office of the 
                chairperson shall be 2 years.
            ``(8) Annual meeting.--
                    ``(A) In general.--The Board shall meet not 
                less than once each fiscal year at the call of 
                the chairperson or at the request of the 
                executive director appointed under subsection 
                (g)(1).
                    ``(B) Location.--The location of a meeting 
                of the Board shall be established by the Board.
            ``(9) Voting.--
                    ``(A) Quorum.--A quorum of the Board shall 
                consist of a majority of the voting members.
                    ``(B) Majority vote.--A decision of the 
                Board shall be made by a majority of the voting 
                members of the Board.
            ``(10) Conflicts of interest.--
                    ``(A) In general.--Except as provided in 
                subparagraph (D), a member of the Board shall 
                not vote on any matter respecting any 
                application, contract, claim, or other 
                particular matter pending before the Board in 
                which, to the knowledge of the member, an 
                interest is held by--
                            ``(i) the member;
                            ``(ii) any spouse of the member;
                            ``(iii) any child of the member;
                            ``(iv) any partner of the member;
                            ``(v) any organization in which the 
                        member is serving as an officer, 
                        director, trustee, partner, or 
                        employee; or
                            ``(vi) any person with whom the 
                        member is negotiating or has any 
                        arrangement concerning prospective 
                        employment or with whom the member has 
                        a financial interest.
                    ``(B) Removal.--Any action by a member of 
                the Board that violates subparagraph (A) shall 
                be cause for removal from the Board.
                    ``(C) Validity of action.--An action by a 
                member of the Board that violates subparagraph 
                (A) shall not impair or otherwise affect the 
                validity of any otherwise lawful action by the 
                Board.
                    ``(D) Disclosure.--
                            ``(i) In general.--If a member of 
                        the Board makes a full disclosure of an 
                        interest and, prior to any 
                        participation by the member, the Board 
                        determines, by majority vote, that the 
                        interest is too remote or too 
                        inconsequential to affect the integrity 
                        of any participation by the member, the 
                        member may participate in the matter 
                        relating to the interest, except as 
                        provided in subparagraph (E)(iii).
                            ``(ii) Vote.--A member that 
                        discloses an interest under clause (i) 
                        shall not vote on a determination of 
                        whether the member