[106th Congress Public Law 224]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ224.106]
[[Page 357]]
AGRICULTURE RISK PROTECTION
ACT OF 2000
[[Page 114 STAT. 358]]
Public Law 106-224
106th Congress
An Act
To amend the Federal Crop Insurance Act to strengthen the safety net for
agricultural producers by providing greater access to more affordable
risk management tools and improved protection from production and income
loss, to improve the efficiency and integrity of the Federal crop
insurance program. <<NOTE: June 20, 2000 - [H.R. 2559]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Agricultural Risk
Protection Act of 2000.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short <<NOTE: 7 USC 1501 note.>> Title.--This Act may be cited
as the ``Agricultural Risk Protection Act of 2000''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
TITLE I--CROP INSURANCE COVERAGE
Subtitle A--Crop Insurance Coverage
Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Catastrophic risk protection.
Sec. 104. Administrative fee for additional coverage.
Sec. 105. Assigned yields and actual production history adjustments.
Sec. 106. Review and adjustment in rating methodologies.
Sec. 107. Quality adjustment.
Sec. 108. Double insurance and prevented planting.
Sec. 109. Noninsured crop disaster assistance program.
Subtitle B--Improving Program Integrity
Sec. 121. Improving program compliance and integrity.
Sec. 122. Protection of confidential information.
Sec. 123. Good farming practices.
Sec. 124. Records and reporting.
Subtitle C--Research and Pilot Programs
Sec. 131. Research and development.
Sec. 132. Pilot programs.
Sec. 133. Education and risk management assistance.
Sec. 134. Options pilot program.
Subtitle D--Administration
Sec. 141. Relation to other laws.
Sec. 142. Management of Corporation.
Sec. 143. Contracting for rating of plans of insurance.
Sec. 144. Electronic availability of crop insurance information.
Sec. 145. Adequate coverage for States.
Sec. 146. Submission of policies and materials to Board.
Sec. 147. Funding.
Sec. 148. Standard Reinsurance Agreement.
Subtitle E--Miscellaneous
Sec. 161. Limitation on revenue coverage for potatoes.
Sec. 162. Crop insurance coverage for cotton and rice.
[[Page 114 STAT. 359]]
Sec. 163. Indemnity payments for certain producers.
Sec. 164. Sense of the Congress regarding the Federal crop insurance
program.
Sec. 165. Sense of the Congress on rural America, including minority and
limited-resource farmers.
Subtitle F--Effective Dates and Implementation
Sec. 171. Effective dates.
Sec. 172. Regulations.
Sec. 173. Savings clause.
TITLE II--AGRICULTURAL ASSISTANCE
Subtitle A--Market Loss Assistance
Sec. 201. Market loss assistance.
Sec. 202. Oilseeds.
Sec. 203. Specialty crops.
Sec. 204. Other commodities.
Sec. 205. Payments in lieu of loan deficiency payments.
Sec. 206. Expansion of producers eligible for loan deficiency payments.
Subtitle B--Conservation
Sec. 211. Conservation assistance.
Sec. 212. Condition on development of Little Darby National Wildlife
Refuge, Ohio.
Subtitle C--Research
Sec. 221. Carbon cycle research.
Sec. 222. Tobacco research for medicinal purposes.
Sec. 223. Research on soil science and forest health management.
Sec. 224. Research on waste streams from livestock production.
Sec. 225. Improved storage and management of livestock and poultry
waste.
Sec. 226. Ethanol research pilot plant.
Sec. 227. Bioinformatics Institute for Model Plant Species.
Subtitle D--Agricultural Marketing
Sec. 231. Value-added agricultural product market development grants.
Subtitle E--Nutrition Programs
Sec. 241. Calculation of minimum amount of commodities for school lunch
requirements.
Sec. 242. School lunch data.
Sec. 243. Child and adult care food program integrity.
Sec. 244. Adjustments to WIC program.
Subtitle F--Other Programs
Sec. 251. Authority to provide loan in connection with boll weevil
eradication.
Sec. 252. Animal disease control.
Sec. 253. Emergency loans for seed producers.
Sec. 254. Temporary suspension of authority to combine certain offices.
Sec. 255. Farm operating loan eligibility.
Sec. 256. Water systems for rural and Native villages in Alaska.
Sec. 257. Crop and pasture flood compensation program.
Sec. 258. Flood mitigation near Pierre, South Dakota.
Sec. 259. Restoration of eligibility for crop loss assistance.
Subtitle G--Administration
Sec. 261. Funding.
Sec. 262. Obligation period.
Sec. 263. Regulations.
Sec. 264. Paygo adjustment.
Sec. 265. Commodity Credit Corporation reimbursement.
TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000
Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Definitions.
Sec. 304. Cooperation and coordination in biomass research and
development.
Sec. 305. Biomass Research and Development Board.
Sec. 306. Biomass Research and Development Technical Advisory Committee.
Sec. 307. Biomass Research And Development Initiative.
Sec. 308. Administrative support and funds.
[[Page 114 STAT. 360]]
Sec. 309. Reports.
Sec. 310. Termination of authority.
TITLE IV--PLANT PROTECTION ACT
Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. Definitions.
Subtitle A--Plant Protection
Sec. 411. Regulation of movement of plant pests.
Sec. 412. Regulation of movement of plants, plant products, biological
control
organisms, noxious weeds, articles, and means of conveyance.
Sec. 413. Notification and holding requirements upon arrival.
Sec. 414. General remedial measures for new plant pests and noxious
weeds.
Sec. 415. Declaration of extraordinary emergency and resulting
authorities.
Sec. 416. Recovery of compensation for unauthorized activities.
Sec. 417. Control of grasshoppers and mormon crickets.
Sec. 418. Certification for exports.
Subtitle B--Inspection and Enforcement
Sec. 421. Inspections, seizures, and warrants.
Sec. 422. Collection of information.
Sec. 423. Subpoena authority.
Sec. 424. Penalties for violation.
Sec. 425. Enforcement actions of Attorney General.
Sec. 426. Court jurisdiction.
Subtitle C--Miscellaneous Provisions
Sec. 431. Cooperation.
Sec. 432. Buildings, land, people, claims, and agreements.
Sec. 433. Reimbursable agreements.
Sec. 434. Regulations and orders.
Sec. 435. Protection for mail handlers.
Sec. 436. Preemption.
Sec. 437. Severability.
Sec. 438. Repeal of superseded laws.
Subtitle D--Authorization of Appropriations
Sec. 441. Authorization of appropriations.
Sec. 442. Transfer authority.
TITLE V--INSPECTION ANIMALS
Sec. 501. Civil penalty.
Sec. 502. Subpoena authority.
TITLE I--CROP INSURANCE
Subtitle A--Crop Insurance Coverage
SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.
(a) Expected Market Price.--Section 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5)
and inserting the following:
``(5) Expected market price.--
``(A) Establishment or approval.--For the purposes
of this title, the Corporation shall establish or
approve the price level (referred to in this title as
the `expected market price') of each agricultural
commodity for which insurance is offered.
``(B) General rule.--Except as otherwise provided in
subparagraph (C), the expected market price of an
agricultural commodity shall be not less than the
projected market price of the agricultural commodity, as
determined by the Corporation.
[[Page 114 STAT. 361]]
``(C) Other authorized approaches.--The expected
market price of an agricultural commodity--
``(i) may be based on the actual market price
of the agricultural commodity at the time of
harvest, as determined by the Corporation;
``(ii) in the case of revenue and other
similar plans of insurance, may be the actual
market price of the agricultural commodity, as
determined by the Corporation;
``(iii) in the case of cost of production or
similar plans of insurance, shall be the projected
cost of producing the agricultural commodity, as
determined by the Corporation; or
``(iv) in the case of other plans of
insurance, may be an appropriate amount, as
determined by the Corporation.''.
(b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance
Act (7 U.S.C. 1508(d)) is amended--
(1) in paragraph (2), by striking subparagraphs (B) and (C)
and inserting the following:
``(B) In the case of additional coverage equal to or
greater than 50 percent of the recorded or appraised
average yield indemnified at not greater than 100
percent of the expected market price, or a comparable
coverage for a policy or plan of insurance that is not
based on individual yield, the amount of the premium
shall--
``(i) be sufficient to cover anticipated
losses and a reasonable reserve; and
``(ii) include an amount for operating and
administrative expenses, as determined by the
Corporation, on an industry-wide basis as a
percentage of the amount of the premium used to
define loss ratio.''; and
(2) by adding at the end the following:
``(3) Performance-based discount.--The Corporation may
provide a performance-based premium discount for a producer of
an agricultural commodity who has good insurance or production
experience relative to other producers of that agricultural
commodity in the same area, as determined by the Corporation.''.
(c) Payment Schedule.--Section 508(e)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
(1) in the matter preceding the subparagraphs, by striking
``The amount'' and inserting ``Subject to paragraph (4), the
amount''; and
(2) by striking subparagraphs (B) and (C) and inserting the
following:
``(B) In the case of additional coverage equal to or
greater than 50 percent, but less than 55 percent, of
the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market
price, or a comparable coverage for a policy or plan of
insurance that is not based on individual yield, the
amount shall be equal to the sum of--
``(i) 67 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
[[Page 114 STAT. 362]]
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(C) In the case of additional coverage equal to or
greater than 55 percent, but less than 65 percent, of
the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market
price, or a comparable coverage for a policy or plan of
insurance that is not based on individual yield, the
amount shall be equal to the sum of--
``(i) 64 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(D) In the case of additional coverage equal to or
greater than 65 percent, but less than 75 percent, of
the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market
price, or a comparable coverage for a policy or plan of
insurance that is not based on individual yield, the
amount shall be equal to the sum of--
``(i) 59 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(E) In the case of additional coverage equal to or
greater than 75 percent, but less than 80 percent, of
the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market
price, or a comparable coverage for a policy or plan of
insurance that is not based on individual yield, the
amount shall be equal to the sum of--
``(i) 55 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(F) In the case of additional coverage equal to or
greater than 80 percent, but less than 85 percent, of
the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market
price, or a comparable coverage for a policy or plan of
insurance that is not based on individual yield, the
amount shall be equal to the sum of--
``(i) 48 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(G) Subject to subsection (c)(4), in the case of
additional coverage equal to or greater than 85 percent
of
[[Page 114 STAT. 363]]
the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market
price, or a comparable coverage for a policy or plan of
insurance that is not based on individual yield, the
amount shall be equal to the sum of--
``(i) 38 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.''.
(d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of
the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking
paragraph (4) and inserting the following:
``(4) Temporary prohibition on continuous coverage.--
Notwithstanding paragraph (2), during each of the 2001 through
2005 reinsurance years, additional coverage under subsection (c)
shall be available only in 5 percent increments beginning at 50
percent of the recorded or appraised average yield.''.
(e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the
following:
``(5) Premium payment disclosure.--Each policy or plan of
insurance under this title shall prominently indicate the dollar
amount of the portion of the premium paid by the Corporation.''.
(f ) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop
Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as
provided in subsection (e)(4))''.
SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.
(a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance
Act (7 U.S.C. 1508(h)) is amended--
(1) in paragraph (2), by striking the second sentence; and
(2) by striking paragraph (5) and inserting the following:
``(5) Premium schedule.--
``(A) Payment by corporation.--In the case of a
policy or plan of insurance developed and approved under
this subsection or section 522, or conducted under
section 523 (other than a policy or plan of insurance
applicable to livestock), the Corporation shall pay a
portion of the premium of the policy or plan of
insurance that is equal to--
``(i) the percentage, specified in subsection
(e) for a similar level of coverage, of the total
amount of the premium used to define loss ratio;
and
``(ii) an amount for administrative and
operating expenses determined in accordance with
subsection (k)(4).
``(B) Transitional schedule.--Effective only during
the 2001 reinsurance year, in the case of a policy or
plan of insurance developed and approved under this
subsection or section 522, or conducted under section
523 (other than a policy or plan of insurance applicable
to livestock), and first approved by the Board after the
date of the enactment of this subparagraph, the payment
by the Corporation of
[[Page 114 STAT. 364]]
a portion of the premium of the policy may not exceed
the dollar amount that would otherwise be authorized
under subsection (e) (consistent with subsection (c)(5),
as in effect on the day before the date of the enactment
of this subparagraph).''.
(b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the
following:
``(C) Other reductions.--Beginning with the 2002
reinsurance year, in the case of a policy or plan of
insurance approved by the Board that was not reinsured
during the 1998 reinsurance year but, had it been
reinsured, would have received a reduced rate of
reimbursement during the 1998 reinsurance year, the rate
of reimbursement for administrative and operating costs
established for the policy or plan of insurance shall
take into account the factors used to determine the rate
of reimbursement for administrative and operating costs
during the 1998 reinsurance year, including the expected
difference in premium and actual administrative and
operating costs of the policy or plan of insurance
relative to an individual yield policy or plan of
insurance and other appropriate factors, as determined
by the Corporation.''.
SEC. 103. CATASTROPHIC RISK PROTECTION.
(a) Alternative Coverage.--Section 508(b) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3)
and inserting the following:
``(3) Alternative catastrophic coverage.--Beginning with the
2001 crop year, the Corporation shall offer producers of an
agricultural commodity the option of selecting either of the
following:
``(A) The catastrophic risk protection coverage
available under paragraph (2)(A).
``(B) An alternative catastrophic risk protection
coverage that--
``(i) indemnifies the producer on an area
yield and loss basis if such a policy or plan of
insurance is offered for the agricultural
commodity in the county in which the farm is
located;
``(ii) provides, on a uniform national basis,
a higher combination of yield and price protection
than the coverage available under paragraph
(2)(A); and
``(iii) the Corporation determines is
comparable to the coverage available under
paragraph (2)(A) for purposes of subsection
(e)(2)(A).''.
(b) Administrative Fee.--
(1) Revised fee.--Section 508(b)(5) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(5)) is amended--
(A) in subparagraph (A), by striking ``$50'' and
inserting ``$100'';
(B) by striking subparagraph (B); and
(C) in subparagraph (C), by striking ``amounts
required under subparagraphs (A) and (B)'' and inserting
``administrative fee required by this paragraph''.
(2) Conforming amendment.--Section 748 of the Agriculture,
Rural Development, Food and Drug Administration,
[[Page 114 STAT. 365]]
and Related Agencies Appropriations Act, 1999 (as contained in
section 101(a) of division A of Public Law 105-277; 7 U.S.C.
1508 note), is amended by striking ``$50'' and inserting
``$100''.
(c) Payment of Administrative Fee on Behalf of Producers.--Section
508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as
amended by subsection (b)(1)(B), is amended by inserting after
subparagraph (A) the following:
``(B) Payment on behalf of producers.--
``(i) Payment authorized.--If State law
permits a licensing fee or other payment to be
paid by an insurance provider to a cooperative
association or trade association and rebated to a
producer with catastrophic risk protection or
additional coverage, a cooperative association or
trade association located in that State may pay,
on behalf of a member of the association in that
State or a contiguous State who consents to be
insured under such an arrangement, all or a
portion of the administrative fee required by this
paragraph for catastrophic risk protection.
``(ii) Treatment of licensing fees.--A
licensing fee or other payment made by an
insurance provider to the cooperative association
or trade association in connection with the
issuance of catastrophic risk protection or
additional coverage to members of the cooperative
association or trade association shall be subject
to the laws regarding rebates of the State in
which the fee or other payment is made.
``(iii) Selection of provider.--Nothing in
this subparagraph limits the option of a producer
to select the licensed insurance agent or other
approved insurance provider from whom the producer
will purchase a policy or plan of insurance or to
refuse coverage for which a payment is offered to
be made under clause (i).
``(iv) Delivery of insurance.--A policy or
plan of insurance for which a payment is made
under clause (i) shall be delivered by a licensed
insurance agent or other approved insurance
provider.
``(v) Additional coverage encouraged.--A
cooperative association or trade association, and
any approved insurance provider with whom a
licensing fee or other arrangement under this
subparagraph is made, shall encourage producer
members to purchase appropriate levels of
additional coverage in order to meet the risk
management needs of the member producers.
``(vi) Report.--Not <<NOTE: Deadline.>> later
than April 1, 2002, the Secretary shall submit to
the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
that evaluates--
``(I) the operation of this
subparagraph; and
``(II) the impact of this
subparagraph on participation in the
Federal crop insurance program,
including the impact on levels of
coverage purchased.''.
[[Page 114 STAT. 366]]
(d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal
Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11
percent'' and inserting ``8 percent''.
SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.
Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c))
is amended by striking paragraph (10) and inserting the following:
``(10) Administrative fee.--
``(A) Fee required.--If a producer elects to
purchase coverage for a crop at a level in excess of
catastrophic risk protection, the producer shall pay an
administrative fee for the additional coverage of $30
per crop per county.
``(B) Use of fees; waiver.--Subparagraphs (D) and
(E) of subsection (b)(5) shall apply with respect to the
collection and use of administrative fees under this
paragraph.''.
SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS.
(a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended--
(1) by striking ``assigned a yield'' and inserting
``assigned--
``(i) a yield'';
(2) by striking the period at the end and inserting ``;
or''; and
(3) by adding at the end the following:
``(ii) a yield determined by the Corporation,
in the case of--
``(I) a producer that has not had a
share of the production of the insured
crop for more than two crop years, as
determined by the Secretary;
``(II) a producer that produces an
agricultural commodity on land that has
not been farmed by the producer; or
``(III) a producer that rotates a
crop produced on a farm to a crop that
has not been produced on the farm.''.
(b) Actual Production History Adjustments.--Section 508(g) of the
Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at
the end the following:
``(4) Adjustment in actual production history to establish
insurable yields.--
``(A) Application.--This paragraph shall apply
whenever the Corporation uses the actual production
records of the producer to establish the producer's
actual production history for an agricultural commodity
for any of the 2001 and subsequent crop years.
``(B) Election to use percentage of transitional
yield.--If, for one or more of the crop years used to
establish the producer's actual production history of an
agricultural commodity, the producer's recorded or
appraised yield of the commodity was less than 60
percent of the applicable transitional yield, as
determined by the Corporation, the Corporation shall, at
the election of the producer--
``(i) exclude any of such recorded or
appraised yield; and
[[Page 114 STAT. 367]]
``(ii) replace each excluded yield with a
yield equal to 60 percent of the applicable
transitional yield.
``(C) Premium adjustment.--In the case of a producer
that makes an election under subparagraph (B), the
Corporation shall adjust the premium to reflect the risk
associated with the adjustment made in the actual
production history of the producer.
``(5) Adjustment to reflect increased yields from successful
pest control efforts.--
``(A) Situations justifying adjustment.--The
Corporation shall develop a methodology for adjusting
the actual production history of a producer when each of
the following apply:
``(i) The producer's farm is located in an
area where systematic, area-wide efforts have been
undertaken using certain operations or measures,
or the producer's farm is a location at which
certain operations or measures have been
undertaken, to detect, eradicate, suppress, or
control, or at least to prevent or retard the
spread of, a plant disease or plant pest,
including a plant pest (as defined in section 102
of the Department of Agriculture Organic Act of
1944 (7 U.S.C. 147a)).
``(ii) The presence of the plant disease or
plant pest has been found to adversely affect the
yield of the agricultural commodity for which the
producer is applying for insurance.
``(iii) The efforts described in clause (i)
have been effective.
``(B) Adjustment amount.--The amount by which the
Corporation adjusts the actual production history of a
producer of an agricultural commodity shall reflect the
degree to which the success of the systematic, area-wide
efforts described in subparagraph (A), on average,
increases the yield of the commodity on the producer's
farm, as determined by the Corporation.''.
SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.
Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i))
is amended--
(1) by striking ``The Corporation'' and inserting the
following:
``(1) In general.--The Corporation''; and
(2) by adding at the end the following:
``(2) Review of rating methodologies.--To maximize
participation in the Federal crop insurance program and to
ensure equity for producers, the Corporation shall periodically
review the methodologies employed for rating plans of insurance
under this title consistent with section 507(c)(2).
``(3) Analysis of rating and loss history.--The Corporation
shall analyze the rating and loss history of approved policies
and plans of insurance for agricultural commodities by area.
``(4) Premium adjustment.--If the Corporation makes a
determination that premium rates are excessive for an
agricultural commodity in an area relative to the requirements
of subsection (d)(2) for that area, then, for the 2002 crop year
(and as necessary thereafter), the Corporation shall make
[[Page 114 STAT. 368]]
appropriate adjustments in the premium rates for that area for
that agricultural commodity.''.
SEC. 107. QUALITY ADJUSTMENT.
Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is
amended by striking subsection (m) and inserting the following:
``(m) Quality Loss Adjustment Coverage.--
``(1) Effect of coverage.--If a policy or plan of insurance
offered under this title includes quality loss adjustment
coverage, the coverage shall provide for a reduction in the
quantity of production of the agricultural commodity considered
produced during a crop year, or a similar adjustment, as a
result of the agricultural commodity not meeting the quality
standards established in the policy or plan of insurance.
``(2) Additional quality loss adjustment.--
``(A) Producer option.--Notwithstanding any other
provision of law, in addition to the quality loss
adjustment coverage available under paragraph (1), the
Corporation shall offer producers the option of
purchasing quality loss adjustment coverage on a basis
that is smaller than a unit with respect to an
agricultural commodity that satisfies each of the
following:
``(i) The agricultural commodity is sold on an
identity-preserved basis.
``(ii) All quality determinations are made
solely by the Federal agency designated to grade
or classify the agricultural commodity.
``(iii) All quality determinations are made in
accordance with standards published by the Federal
agency in the Federal Register.
``(iv) The discount schedules that reflect the
reduction in quality of the agricultural commodity
are established by the Secretary.
``(B) Basis for adjustment.--Under this paragraph,
the Corporation shall set the quality standards below
which quality losses will be paid based on the
variability of the grade of the agricultural commodity
from the base quality for the agricultural commodity.
``(3) Review of criteria and procedures.--The Corporation
shall contract with a qualified person to review the quality
loss adjustment procedures of the Corporation so that the
procedures more accurately reflect local quality discounts that
are applied to agricultural commodities insured under this
title. Based on the review, the Corporation shall make
adjustments in the procedures, taking into consideration the
actuarial soundness of the adjustment and the prevention of
fraud, waste, and abuse.''.
SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by
inserting after section 508 (7 U.S.C. 1508) the following:
``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.
``(a) Definitions.--In this section:
``(1) First crop.--The term `first crop' means the first
crop of the first agricultural commodity planted for harvest, or
prevented from being planted, on specific acreage during a crop
year and insured under this title.
[[Page 114 STAT. 369]]
``(2) Second crop.--The term `second crop' means a second
crop of the same agricultural commodity as the first crop, or a
crop of a different agricultural commodity following the first
crop, planted on the same acreage as the first crop for harvest
in the same crop year, except the term does not include a
replanted crop.
``(3) Replanted crop.--The term `replanted crop' means any
agricultural commodity replanted on the same acreage as the
first crop for harvest in the same crop year if the replanting
is required by the terms of the policy of insurance covering the
first crop.
``(b) Double Insurance.--
``(1) Options on loss to first crop.--Except as provided in
subsections (d) and (e), if a first crop insured under this
title in a crop year has a total or partial insurable loss, the
producer of the first crop may elect one of the following
options:
``(A) No second crop planted.--The producer may--
``(i) elect to not plant a second crop on the
same acreage for harvest in the same crop year;
and
``(ii) collect an indemnity payment that is
equal to 100 percent of the insurable loss for the
first crop.
``(B) Second crop planted.--The producer may--
``(i) plant a second crop on the same acreage
for harvest in the same crop year; and
``(ii) collect an indemnity payment
established by the Corporation for the first crop,
but not to exceed 35 percent of the insurable loss
for the first crop.
``(2) Effect of no loss to second crop.--If a producer makes
an election under paragraph (1)(B) and the producer does not
suffer an insurable loss to the second crop, the producer may
collect an indemnity payment for the first crop that is equal
to--
``(A) 100 percent of the insurable loss for the
first crop; less
``(B) the amount previously collected under
paragraph (1)(B)(ii).
``(3) Premium for first crop if second crop planted.--
``(A) Initial premium.--If a producer makes an
election under paragraph (1)(B), the producer shall be
responsible for a premium for the first crop that is
commensurate with the indemnity paid under paragraph
(1)(B)(ii). The Corporation shall adjust the total
premium for the first crop to reflect the reduced
indemnity.
``(B) Effect of no loss to second crop.--If the
producer makes an election under paragraph (1)(B) and
the producer does not suffer an insurable loss to the
second crop, the producer shall be responsible for a
premium for the first crop that is equal to--
``(i) the full premium owed by the producer
for the first crop; less
``(ii) the amount of premium previously paid
under subparagraph (A).
``(c) Prevented Planting Coverage.--
``(1) Options on loss to first crop.--Except as provided in
subsections (d) and (e), if a first crop insured under this
title in a crop year is prevented from being planted, the
producer of the first crop may elect one of the following
options:
[[Page 114 STAT. 370]]
``(A) No second crop planted.--The producer may--
``(i) elect to not plant a second crop on the
same acreage for harvest in the same crop year;
and
``(ii) subject to paragraph (4), collect an
indemnity payment that is equal to 100 percent of
the prevented planting guarantee for the acreage
for the first crop.
``(B) Second crop planted.--The producer may--
``(i) plant a second crop on the same acreage
for harvest in the same crop year; and
``(ii) subject to paragraphs (4) and (5),
collect an indemnity payment established by the
Corporation for the first crop, but not to exceed
35 percent of the prevented planting guarantee for
the acreage for the first crop.
``(2) Premium for first crop if second planted.--If the
producer makes an election under paragraph (1)(B), the producer
shall pay a premium for the first crop that is commensurate with
the indemnity paid under paragraph (1)(B)(ii). The Corporation
shall adjust the total premium for the first crop to reflect the
reduced indemnity.
``(3) Effect on actual production history.--Except in the
case of double cropping described in subsection (d), if a
producer make an election under paragraph (1)(B) for a crop
year, the Corporation shall assign the producer a recorded yield
for that crop year for the first crop equal to 60 percent of the
producer's actual production history for the agricultural
commodity involved, for purposes of determining the producer's
actual production history for subsequent crop years.
``(4) Area conditions required for payment.--The Corporation
shall limit prevented planting payments for producers to those
situations in which other producers, in the area where a first
crop is prevented from being planted is located, are also
generally affected by the conditions that prevented the first
crop from being planted.
``(5) Planting date.--If a producer plants the second crop
before the latest planting date established by the Corporation
for the first crop, the Corporation shall not make a prevented
planting payment with regard to the first crop.
``(d) Exception for Established Double Cropping Practices.--A
producer may receive full indemnity payments on two or more crops
planted for harvest in the same crop year and insured under this title
if each of the following conditions are met:
``(1) There is an established practice of planting two or
more crops for harvest in the same crop year in the area, as
determined by the Corporation.
``(2) An additional coverage policy or plan of insurance is
offered with respect to the agricultural commodities planted on
the same acreage for harvest in the same crop year in the area.
``(3) The producer has a history of planting two or more
crops for harvest in the same crop year or the applicable
acreage has historically had two or more crops planted for
harvest in the same crop year.
``(4) The second or more crops are customarily planted after
the first crop for harvest on the same acreage in the same year
in the area.
[[Page 114 STAT. 371]]
``(e) Subsequent Crops.--Except in the case of double cropping
described in subsection (d), if a producer elects to plant a crop (other
than a replanted crop) subsequent to a second crop on the same acreage
as the first crop and second crop for harvest in the same crop year, the
producer shall not be eligible for insurance under this title, or
noninsured crop assistance under section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333), for the subsequent crop.''.
SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
(a) Operation and Administration of Program.--Section 196(a)(2) of
the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended
by adding at the end the following:
``(C) Combination of similar types or varieties.--At
the option of the Secretary, all types or varieties of a
crop or commodity, described in subparagraphs (A) and
(B), may be considered to be a single eligible crop
under this section.''.
(b) Timely Application.--Section 196(b)(1) of the Agricultural
Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second
sentence by striking ``at such time as the Secretary may require'' and
inserting ``not later than 30 days before the beginning of the coverage
period, as determined by the Secretary''.
(c) Records and Reports.--Section 196(b) of the Agricultural Market
Transition Act (7 U.S.C. 7333(b)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Records.--To be eligible for assistance under this
section, a producer shall provide annually to the Secretary
records of crop acreage, acreage yields, and production for each
crop, as required by the Secretary.''; and
(2) in paragraph (3), by inserting ``annual'' after ``shall
provide''.
(d) Loss Requirements.--Section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and
inserting the following:
``(c) Loss Requirements.--
``(1) Cause.--To be eligible for assistance under this
section, a producer of an eligible crop shall have suffered a
loss of a noninsured commodity as the result of a cause
described in subsection (a)(3).
``(2) Assistance.--On making a determination described in
subsection (a)(3), the Secretary shall provide assistance under
this section to producers of an eligible crop that have suffered
a loss as a result of the cause described in subsection (a)(3).
``(3) 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.
``(4) Area trigger.--The Secretary shall provide assistance
to individual producers without any requirement of an area
loss.''.
(e) Service Fee.--Section 196 of the Agricultural Market Transition
Act (7 U.S.C. 7333) is amended by adding at the end the following:
[[Page 114 STAT. 372]]
``(k) Service Fee.--
``(1) In general.--To be eligible to receive assistance for
an eligible crop for a crop year under this section, a producer
shall pay to the Secretary (at the time at which the producer
submits the application under subsection (b)(1)) a service fee
for the eligible crop in an amount that is equal to the lesser
of--
``(A) $100 per crop per county; or
``(B) $300 per producer per county, but not to
exceed a total of $900 per producer.
``(2) Waiver.--The Secretary shall waive the service fee
required under paragraph (1) in the case of a limited resource
farmer, as defined by the Secretary.
``(3) Use.--The Secretary shall deposit service fees
collected under this subsection in the Commodity Credit
Corporation Fund.''.
Subtitle B--Improving Program Integrity
SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.
(a) Additional Methods of Ensuring Program Compliance and
Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C.
1514) is amended to read as follows:
``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.
``(a) Purpose.--
``(1) In general.--The purpose of this section is to improve
compliance with, and the integrity of, the Federal crop
insurance program.
``(2) Role of insurance providers.--The Corporation shall
work actively with approved insurance providers to address
program compliance and integrity issues as such issues develop.
``(b) Notification of Compliance Problems.--
``(1) Notification of errors, omissions, and failures.--The
Corporation shall notify in writing an approved insurance
provider of any error, omission, or failure to follow
Corporation regulations or procedures for which the approved
insurance provider may be responsible and which may result in a
debt owed the Corporation.
``(2) Time for notification.--Notice under paragraph (1)
shall be given within 3 years after the end of the insurance
period during which the error, omission, or failure is alleged
to have occurred, except that this time limitation shall not
apply with respect to an error, omission, or procedural
violation that is willful or intentional.
``(3) Effect of failure to timely notify.--Except as
provided in paragraph (2), the failure to timely provide the
notice required under this subsection shall relieve the approved
insurance provider from the debt owed the Corporation.
``(c) Reconciling Producer Information.--The Secretary shall develop
and implement a coordinated plan for the Corporation and the Farm
Service Agency to reconcile all relevant information received by the
Corporation or the Farm Service Agency from a producer who obtains crop
insurance coverage under this title. Beginning with the 2001 crop year,
the Secretary shall require that the Corporation and the Farm Service
Agency reconcile such
[[Page 114 STAT. 373]]
producer-derived information on at least an annual basis in order to
identify and address any discrepancies.
``(d) Identification and Elimination of Fraud, Waste, and Abuse.--
``(1) FSA monitoring program.--The Secretary shall develop
and implement a coordinated plan for the Farm Service Agency to
assist the Corporation in the ongoing monitoring of programs
carried out under this title, including--
``(A) at the request of the Corporation or, subject
to paragraph (2), on its own initiative if the Farm
Service Agency has reason to suspect the existence of
program fraud, waste, or abuse, conducting fact finding
relative to allegations of program fraud, waste, or
abuse;
``(B) reporting to the Corporation, in writing in a
timely manner, the results of any fact finding conducted
pursuant to subparagraph (A), any allegation of fraud,
waste, or abuse, and any identified program
vulnerabilities; and
``(C) assisting the Corporation and approved
insurance providers in auditing a statistically
appropriate number of claims made under any policy or
plan of insurance under this title.
``(2) FSA inquiry.--If, within five calendar days after
receiving a report submitted under paragraph (1)(B), the
Corporation does not provide a written response that describes
the intended actions of the Corporation, the Farm Service Agency
may conduct its own inquiry into the alleged program fraud,
waste, or abuse on approval from the State director of the Farm
Service Agency of the State in which the alleged fraud, waste,
or abuse occurred. If as a result of the inquiry, the Farm
Service Agency concludes further investigation is warranted, but
the Corporation declines to proceed with the investigation, the
Farm Service Agency may refer the matter to the Inspector
General of the Department of Agriculture.
``(3) Use of field infrastructure.--The plan required by
paragraph (1) shall provide for the use of the field
infrastructure of the Farm Service Agency. The Secretary shall
ensure that relevant Farm Service Agency personnel are
appropriately trained for any responsibilities assigned to the
personnel under the plan. At a minimum, the personnel shall
receive the same level of training and pass the same basic
competency tests as required of loss adjusters of approved
insurance providers.
``(4) Maintenance of provider effort.--
``(A) In general.--The activities of the Farm
Service Agency under this subsection do not affect the
responsibility of approved insurance providers to
conduct any audits of claims or other program reviews
required by the Corporation.
``(B) Notification of providers.--The Corporation
shall notify the appropriate approved insurance provider
of a report from the Farm Service Agency regarding
alleged program fraud, waste, or abuse, unless the
provider is suspected to be included in, or a party to,
the alleged fraud, waste, or abuse.
``(C) Response.--An approved insurance provider that
receives a notice under subparagraph (B) shall submit a
report to the Corporation, within an appropriate time
period determined by the Secretary, describing the
actions
[[Page 114 STAT. 374]]
taken by the provider to investigate the allegations of
program fraud, waste, or abuse contained in the notice.
``(5) Corporation response to provider reports.--
``(A) Prompt response.--If an approved insurance
provider reports to the Corporation that the approved
insurance provider suspects intentional
misrepresentation, fraud, waste, or abuse, the
Corporation shall make a determination and provide,
within 90 calendar days after receiving the report, a
written response that describes the intended actions of
the Corporation.
``(B) Cooperative effort.--The approved insurance
provider and the Corporation shall take coordinated
action in any case where misrepresentation, fraud,
waste, or abuse is alleged.
``(C) Failure to timely respond.--If the Corporation
fails to respond as required by subparagraph (A), an
approved insurance provider may request the Farm Service
Agency to assist the provider in an inquiry into the
alleged program fraud, waste, or abuse.
``(e) Consultation with State FSA Committees.--The Secretary shall
establish procedures under which the Corporation shall consult with the
State committee of the Farm Service Agency for a State with respect to
policies, plans of insurance, and material related to such policies or
plans of insurance (including applicable sales closing dates, assigned
yields, and transitional yields) offered in that State under this title.
``(f ) Detection of Disparate Performance.--
``(1) Covered activities.--The Secretary shall establish
procedures under which the Corporation will be able to identify
the following:
``(A) Any agent engaged in the sale of coverage
offered under this title where the loss claims
associated with such sales by the agent are equal to or
greater than 150 percent (or an appropriate percentage
specified by the Corporation) of the mean for all loss
claims associated with such sales by all other agents
operating in the same area, as determined by the
Corporation.
``(B) Any person performing loss adjustment services
relative to coverage offered under this title where such
loss adjustments performed by the person result in
accepted or denied claims equal to or greater than 150
percent (or an appropriate percentage specified by the
Corporation) of the mean for accepted or denied claims
(as applicable) for all other persons performing loss
adjustment services in the same area, as determined by
the Corporation.
``(2) Review.--
``(A) Review required.--The Corporation shall
conduct a review of any agent identified pursuant to
paragraph (1)(A), and any person identified pursuant to
paragraph (1)(B), to determine whether the higher loss
claims associated with the agent or the higher number of
accepted or denied claims (as applicable) associated
with the person are the result of fraud, waste, or
abuse.
``(B) Remedial action.--The Corporation shall take
appropriate remedial action with respect to any
occurrence of fraud, waste, or abuse identified in a
review conducted under this paragraph.
[[Page 114 STAT. 375]]
``(3) Oversight of agents and loss adjusters.--The
Corporation shall develop procedures to require an annual review
by an approved insurance provider of the performance of each
agent and loss adjuster used by the approved insurance provider.
The Corporation shall oversee the conduct of annual reviews and
may consult with an approved insurance provider regarding any
remedial action that is determined to be necessary as a result
of the annual review of an agent or loss adjuster.
``(g) Submission of Information to Corporation to Support Compliance
Efforts.--
``(1) Types of information required.--The Secretary shall
establish procedures under which approved insurance providers
shall submit to the Corporation the following information with
respect to each policy or plan of insurance offered under this
title:
``(A) The name and identification number of the
insured.
``(B) The agricultural commodity to be insured.
``(C) The elected coverage level, including the
price election, of the insured.
``(2) Time for <<NOTE: Deadline.>> submission.--The
information required by paragraph (1) with respect to a policy
or plan of insurance shall be submitted so as to ensure receipt
by the Corporation not later than the Saturday of the week
containing the calendar day that is 30 days after the applicable
sales closing date for the crop to be insured.
``(h) Sanctions for Program Noncompliance and Fraud.--
``(1) False information.--A producer, agent, loss adjuster,
approved insurance provider, or other person that willfully and
intentionally provides any false or inaccurate information to
the Corporation or to an approved insurance provider with
respect to a policy or plan of insurance under this title may,
after notice and an opportunity for a hearing on the record, be
subject to one or more of the sanctions described in paragraph
(3).
``(2) Compliance.--A person may, after notice and an
opportunity for a hearing on the record, be subject to one or
more of the sanctions described in paragraph (3) if the person
is a producer, agent, loss adjuster, approved insurance
provider, or other person that willfully and intentionally fails
to comply with a requirement of the Corporation.
``(3) Authorized sanctions.--If the Secretary determines
that a person covered by this subsection has committed a
material violation under paragraph (1) or (2), the following
sanctions may be imposed:
``(A) Civil fines.--A civil fine may be imposed for
each violation in an amount not to exceed the greater
of--
``(i) the amount of the pecuniary gain
obtained as a result of the false or inaccurate
information provided or the noncompliance with a
requirement of this title; or
``(ii) $10,000.
``(B) Producer disqualification.--In the case of a
violation committed by a producer, the producer may be
disqualified for a period of up to 5 years from
receiving
[[Page 114 STAT. 376]]
any monetary or nonmonetary benefit provided under each
of the following:
``(i) This title.
``(ii) The Agricultural Market Transition Act
(7 U.S.C. 7201 et seq.), including the noninsured
crop disaster assistance program under section 196
of that Act (7 U.S.C. 7333).
``(iii) The Agricultural Act of 1949 (7 U.S.C.
1421 et seq.).
``(iv) The Commodity Credit Corporation
Charter Act (15 U.S.C. 714 et seq.).
``(v) The Agricultural Adjustment Act of 1938
(7 U.S.C. 1281 et seq.).
``(vi) Title XII of the Food Security Act of
1985 (16 U.S.C. 3801 et seq.).
``(vii) The Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.).
``(viii) Any law that provides assistance to a
producer of an agricultural commodity affected by
a crop loss or a decline in the prices of
agricultural commodities.
``(C) Disqualification of other persons.--In the
case of a violation committed by an agent, loss
adjuster, approved insurance provider, or other person
(other than a producer), the violator may be
disqualified for a period of up to 5 years from
participating in any program, or receiving any benefit,
under this title.
``(4) Assessment of sanction.--The Secretary shall consider
the gravity of the violation of the person covered by this
subsection in determining--
``(A) whether to impose a sanction under this
subsection; and
``(B) the type and amount of the sanction to be
imposed.
``(5) Disclosure of sanctions.--Each policy or plan of
insurance under this title shall provide notice describing the
sanctions prescribed under paragraph (3) for willfully and
intentionally--
``(A) providing false or inaccurate information to
the Corporation or to an approved insurance provider; or
``(B) failing to comply with a requirement of the
Corporation.
``(6) Insurance fund.--Any funds collected under this
subsection shall be deposited into the insurance fund
established under section 516(c).
``(i) Annual Report on Program Compliance and Integrity Efforts.--
``(1) Report required.--The Secretary shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
an annual report describing the operation of this section during
the preceding year and efforts undertaken by the Secretary and
the Corporation to carry out this section.
``(2) Information regarding fraud, waste, and abuse.--The
report shall identify specific occurrences of waste, fraud, or
abuse and contain an outline of actions that have been or are
being taken to eliminate the identified waste, fraud, or abuse.
[[Page 114 STAT. 377]]
``( j) Information Management.--
``(1) Systems upgrades.--The Secretary shall upgrade the
information management systems of the Corporation used in the
administration and enforcement and this title. In upgrading the
systems, the Secretary shall ensure that new hardware and
software are compatible with the hardware and software used by
other agencies of the Department to maximize data sharing and
promote the purpose of this section.
``(2) Use of available information technologies.--The
Secretary shall use the information technologies known as data
mining and data warehousing and other available information
technologies to administer and enforce this title.
``(3) Use of private sector.--The Secretary may enter into
contracts to use private sector expertise and technological
resources in implementing this subsection.
``(k) Funding.--
``(1) Available funds.--To carry out this section and
sections 502(c), 506(h), 508(a)(3)(B), and 508(f )(3)(A), the
Corporation may use, from amounts made available from the
insurance fund established under section 516(c), not more than
$23,000,000 during the period of fiscal years 2001 through 2005,
of which not more than $9,000,000 shall be available for fiscal
year 2001.
``(2) Prohibition.--None of the funds made available under
paragraph (1) may be used to pay the salaries of employees of
the Corporation.''.
(b) Conforming Amendment.--Section 506 of the Federal Crop Insurance
Act (7 U.S.C. 1506) is amended--
(1) by striking subsection (q); and
(2) by redesignating subsections (r) and (s) as subsections
(q) and (r), respectively.
SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is
amended by adding at the end the following:
``(c) Protection of Confidential Information.--
``(1) General prohibition against disclosure.--Except as
provided in paragraph (2), the Secretary, any other officer or
employee of the Department or an agency thereof, an approved
insurance provider and its employees and contractors, and any
other person may not disclose to the public information
furnished by a producer under this title.
``(2) Authorized disclosure.--
``(A) Disclosure in statistical or aggregate form.--
Information described in paragraph (1) may be disclosed
to the public if the information has been transformed
into a statistical or aggregate form that does not allow
the identification of the person who supplied particular
information.
``(B) Consent of producer.--A producer may consent
to the disclosure of information described in paragraph
(1). The participation of the producer in, and the
receipt of any benefit by the producer under, this title
or any other program administered by the Secretary may
not be conditioned on the producer providing consent
under this paragraph.
[[Page 114 STAT. 378]]
``(3) Violations; penalties.--Section 1770(c) of the Food
Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect
to the release of information collected in any manner or for any
purpose prohibited by this subsection.''.
SEC. 123. GOOD FARMING PRACTICES.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))
is amended by striking paragraph (3) and inserting the following:
``(3) Exclusion of losses due to certain actions of
producer.--
``(A) Exclusions.--Insurance provided under this
subsection shall not cover losses due to--
``(i) the neglect or malfeasance of the
producer;
``(ii) the failure of the producer to reseed
to the same crop in such areas and under such
circumstances as it is customary to reseed; or
``(iii) the failure of the producer to follow
good farming practices, including scientifically
sound sustainable and organic farming practices.
``(B) Good farming practices.--
``(i) Informal administrative process.--A
producer shall have the right to a review of a
determination regarding good farming practices
made under subparagraph (A)(iii) in accordance
with an informal administrative process to be
established by the Corporation.
``(ii) Administrative review.--
``(I) No adverse decision.--The
determination shall not be considered an
adverse decision for purposes of
subtitle H of the Department of
Agriculture Reorganization Act of 1994
(7 U.S.C. 6991 et seq.).
``(II) Reversal or modification.--
Except as provided in clause (i), the
determination may not be reversed or
modified as the result of a subsequent
administrative review.
``(iii) Judicial review.--
``(I) Right to review.--A producer
shall have the right to judicial review
of the determination without exhausting
any right to a review under clause (i).
``(II) Reversal or modification.--
The determination may not be reversed or
modified as the result of judicial
review unless the determination is found
to be arbitrary or capricious.''.
SEC. 124. RECORDS AND REPORTING.
(a) Condition of Obtaining Coverage.--Section 508(f )(3) of the
Federal Crop Insurance Act (7 U.S.C. 1508(f )(3)) is amended by striking
subparagraph (A) and inserting the following:
``(A) provide annually records acceptable to the
Secretary regarding crop acreage, acreage yields, and
production for each agricultural commodity insured under
this title or accept a yield determined by the
Corporation; and''.
(b) Additional General Power.--Section 506 of the Federal Crop
Insurance Act (7 U.S.C. 1506) is amended by striking subsection (h) and
inserting the following:
[[Page 114 STAT. 379]]
``(h) Collection and Sharing of Information.--
``(1) Surveys and investigations.--The Corporation may
conduct surveys and investigations relating to crop insurance,
agriculture-related risks and losses, and other issues related
to carrying out this title.
``(2) Data collection.--The Corporation shall assemble data
for the purpose of establishing sound actuarial bases for
insurance on agricultural commodities.
``(3) Sharing of records.--Notwithstanding section 502(c),
records submitted in accordance with this title and section 196
of the Agricultural Market Transition Act (7 U.S.C. 7333) shall
be available to agencies and local offices of the Department,
appropriate State and Federal agencies and divisions, and
approved insurance providers for use in carrying out this title,
such section 196, and other agricultural programs.''.
Subtitle C--Research and Pilot Programs
SEC. 131. RESEARCH AND DEVELOPMENT.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by
adding at the end the following:
``SEC. 522. RESEARCH AND DEVELOPMENT.
``(a) Definition of Policy.--In this section, the term `policy'
means a policy, plan of insurance, provision of a policy or plan of
insurance, and related materials.
``(b) Reimbursement of Research, Development, and Maintenance
Costs.--
``(1) Research and development reimbursement.--The
Corporation shall provide a payment to reimburse an applicant
for research and development costs directly related to a policy
that is--
``(A) submitted to the Board and approved by the
Board under section 508(h) for reinsurance; and
``(B) if applicable, offered for sale to producers.
``(2) Existing plans.--The Corporation shall reimburse costs
associated with research and development costs directly related
to a policy that was approved by the Board prior to the date of
the enactment of this section.
``(3) Marketability.--The Corporation shall approve a
reimbursement under paragraph (1) or (2) only after determining
that the policy is marketable based on a reasonable marketing
plan, as determined by the Board.
``(4) Maintenance payments.--
``(A) Requirement.--The Corporation shall reimburse
maintenance costs associated with the annual cost of
underwriting for a policy described in paragraphs (1)
and (2).
``(B) Duration.--Payments with respect to
maintenance costs may be provided for a period of not
more than four reinsurance years subsequent to Board
approval for payment under this subsection.
``(C) Options for maintenance.--On the expiration of
the 4-year period described in subparagraph (B), the
approved insurance provider responsible for maintenance
of the policy may--
[[Page 114 STAT. 380]]
``(i) maintain the policy and charge a fee to
approved insurance providers that elect to sell
the policy under this subsection; or
``(ii) transfer responsibility for maintenance
of the policy to the Corporation.
``(D) Fee.--
``(i) Amount.--Subject to approval by the
Board, the amount of the fee that is payable by an
approved insurance provider that elects to sell
the policy shall be an amount that is determined
by the approved insurance provider maintaining the
policy.
``(ii) Approval.--The Board shall approve the
amount of a fee determined under clause (i) for
maintenance of the policy unless the Board
determines that the amount of the fee--
``(I) is unreasonable in relation to
the maintenance costs associated with
the policy; or
``(II) unnecessarily inhibits the
use of the policy.
``(5) Treatment of payment.--Payments made under this
subsection for a policy shall be considered as payment in full
by the Corporation for the research and development conducted
with regard to the policy and any property rights to the policy.
``(6) Reimbursement amount.--The Corporation shall determine
the amount of the payment under this subsection for an approved
policy based on the complexity of the policy and the size of the
area in which the policy or material is expected to be sold.
``(c) Research and Development Contracting Authority.--
``(1) Authority.--The Corporation may enter into contracts
to carry out research and development to--
``(A) increase participation in States in which the
Corporation determines that--
``(i) there is traditionally, and continues to
be, a low level of Federal crop insurance
participation and availability; and
``(ii) the State is underserved by the Federal
crop insurance program;
``(B) increase participation in areas that are
underserved by the Federal crop insurance program; and
``(C) increase participation by producers of
underserved agricultural commodities, including
specialty crops.
``(2) Underserved agricultural commodities and areas.--
``(A) Authority.--The Corporation may enter into
contracts under procedures prescribed by the Corporation
with qualified persons to carry out research and
development for policies that promote the purposes of
paragraph (1).
``(B) Consultation.--Before entering into a contract
under subparagraph (A), the Corporation shall consult
with groups representing producers of agricultural
commodities that would be served by the policies that
are the subject of the research and development.
``(3) Qualified persons.--A person with experience in crop
insurance or farm or ranch risk management (including a college
or university, an approved insurance provider, and a trade or
research organization), as determined by the Corporation,
[[Page 114 STAT. 381]]
shall be eligible to enter into a contract with the Corporation
under this subsection.
``(4) Types of contracts.--A contract under this subsection
may provide for research and development regarding new or
expanded policies, including policies based on adjusted gross
income, cost-of-production, quality losses, and an intermediate
base program with a higher coverage and cost than catastrophic
risk protection.
``(5) Use of resulting policies.--The Corporation may offer
any policy developed under this subsection that is approved by
the Board.
``(6) Research and development priorities.--The Corporation
shall establish as one of the highest research and development
priorities of the Corporation the development of a pasture,
range, and forage program.
``(7) Study of multiyear coverage.--
``(A) In general.--The Corporation shall contract
with a qualified person to conduct a study to determine
whether offering policies that provide coverage for
multiple years would reduce fraud, waste, and abuse by
persons that participate in the Federal crop insurance
program.
``(B) Report.--Not <<NOTE: Deadline.>> later than 1
year after the date of the enactment of this section,
the Corporation shall submit to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the results of the study
conducted under subparagraph (A).
``(8) Contract for revenue coverage plans.--The Corporation
shall enter into a contract for research and development
regarding one or more revenue coverage plans that are designed
to enable producers to take maximum advantage of fluctuations in
market prices and thereby maximize revenue realized from the
sale of an agricultural commodity. A revenue coverage plan may
include the use of existing market instruments or the
development of new market instruments.
Not <<NOTE: Deadline.>> later than 15 months after the date of
the enactment of this section, the Corporation shall submit to
the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the results of the contract
entered into under this paragraph.
``(9) Contract for cost of production policy.--
``(A) Authority.--The Corporation shall enter into a
contract for research and development regarding a cost
of production policy.
``(B) Research and development.--The research and
development shall--
``(i) take into consideration the differences
in the cost of production on a county-by-county
basis; and
``(ii) cover as many commodities as is
practicable.
``(10) Relation to limitations.--A policy developed under
this subsection may be prepared without regard to the
limitations of this title, including--
``(A) the requirement concerning the levels of
coverage and rates; and
[[Page 114 STAT. 382]]
``(B) the requirement that the price level for each
insured agricultural commodity must equal the expected
market price for the agricultural commodity, as
established by the Board.
``(d) Partnerships for Risk Management Development and
Implementation.--
``(1) Purpose.--The purpose of this subsection is to
authorize the Corporation to enter into partnerships with public
and private entities for the purpose of increasing the
availability of loss mitigation, financial, and other risk
management tools for producers, with a priority given to risk
management tools for producers of agricultural commodities
covered by section 196 of the Agricultural Market Transition Act
(7 U.S.C. 7333), specialty crops, and underserved agricultural
commodities.
``(2) Authority.--The Corporation may enter into
partnerships with the Cooperative State Research, Education, and
Extension Service, the Agricultural Research Service, the
National Oceanic Atmospheric Administration, and other
appropriate public and private entities with demonstrated
capabilities in developing and implementing risk management and
marketing options for producers of specialty crops and
underserved agricultural commodities.
``(3) Objectives.--The Corporation may enter into a
partnership under paragraph (2)--
``(A) to enhance the notice and timeliness of notice
of weather conditions that could negatively affect crop
yields, quality, and final product use in order to allow
producers to take preventive actions to increase end
product profitability and marketability and to reduce
the possibility of crop insurance claims;
``(B) to develop a multifaceted approach to pest
management and fertilization to decrease inputs,
decrease environmental exposure, and increase
application efficiency;
``(C) to develop or improve techniques for planning,
breeding, planting, growing, maintaining, harvesting,
storing, shipping, and marketing that will address
quality and quantity challenges associated with year-to-
year and regional variations;
``(D) to clarify labor requirements and assist
producers in complying with requirements to better meet
the physically intense and time-compressed planting,
tending, and harvesting requirements associated with the
production of specialty crops and underserved
agricultural commodities;
``(E) to provide assistance to State foresters or
equivalent officials for the prescribed use of burning
on private forest land for the prevention, control, and
suppression of fire;
``(F) to provide producers with training and
informational opportunities so that the producers will
be better able to use financial management, crop
insurance, marketing contracts, and other existing and
emerging risk management tools; and
``(G) to develop other risk management tools to
further increase economic and production stability.
``(e) Funding.--
[[Page 114 STAT. 383]]
``(1) Reimbursements.--Of the amounts made available from
the insurance fund established under section 516(c), the
Corporation may use to provide reimbursements under subsection
(b) not more than $10,000,000 for each of fiscal years 2001 and
2002 and not more than $15,000,000 for fiscal year 2003 and each
subsequent fiscal year.
``(2) Contracting.--
``(A) Authority.--Of the amounts made available from
the insurance fund established under section 516(c), the
Corporation may use to carry out contracting and
partnerships under subsections (c) and (d) not more than
$20,000,000 for each of fiscal years 2001 through 2003
and not more than $25,000,000 for fiscal year 2004 and
each subsequent fiscal year.
``(B) Underserved states.--Of the amount made
available under subparagraph (A) for a fiscal year, the
Corporation shall use not more than $5,000,000 for the
fiscal year to carry out contracting for research and
development to carry out the purpose described in
subsection (c)(1)(A).
``(3) Unused funding.--If the Corporation determines that
the amount available to provide either reimbursement payments or
contract payments under this section for a fiscal year is not
needed for such purposes, the Corporation may use the excess
amount to carry out another function authorized under this
section.
``(4) Prohibited research and development by corporation.--
``(A) New policies.--Notwithstanding subsection (d),
on and after October 1, 2000, the Corporation shall not
conduct research and development for any new policy for
an agricultural commodity offered under this title.
``(B) Existing policies.--Any policy developed by
the Corporation under this title before that date may
continue to be offered for sale to producers.''.
SEC. 132. PILOT PROGRAMS.
(a) Authority.--The Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.), as amended by section 131, is amended by adding at the end the
following:
``SEC. 523. <<NOTE: 7 USC 1523.>> PILOT PROGRAMS.
``(a) General Provisions.--
``(1) Authority.--Except as otherwise provided in this
section, the Corporation may conduct a pilot program submitted
to and approved by the Board under section 508(h), or that is
developed under subsection (b) or section 522, to evaluate
whether a proposal or new risk management tool tested by the
pilot program is suitable for the marketplace and addresses the
needs of producers of agricultural commodities.
``(2) Private coverage.--Under this section, the Corporation
shall not conduct any pilot program that provides insurance
protection against a risk if insurance protection against the
risk is generally available from private companies.
``(3) Covered activities.--The pilot programs described in
paragraph (1) may include pilot programs providing insurance
protection against losses involving--
[[Page 114 STAT. 384]]
``(A) reduced forage on rangeland caused by drought
or insect infestation;
``(B) livestock poisoning and disease;
``(C) destruction of bees due to the use of
pesticides;
``(D) unique special risks related to fruits, nuts,
vegetables, and specialty crops in general, aquacultural
species, and forest industry needs (including
appreciation);
``(E) after October 1, 2001, wild salmon, except
that--
``(i) any pilot program with regard to wild
salmon may be carried out without regard to the
limitations of this title; and
``(ii) the Corporation shall conduct all wild
salmon programs under this title so that, to the
maximum extent practicable, all costs associated
with conducting the programs are not expected to
exceed $1,000,000 for fiscal year 2002 and each
subsequent fiscal year.
``(4) Scope of pilot programs.--The Corporation may--
``(A) approve a pilot program under this section to
be conducted on a regional, State, or national basis
after considering the interests of affected producers
and the interests of, and risks to, the Corporation;
``(B) operate the pilot program, including any
modifications of the pilot program, for a period of up
to 4 years;
``(C) extend the time period for the pilot program
for additional periods, as determined appropriate by the
Corporation; and
``(D) provide pilot programs that would allow
producers--
``(i) to receive a reduced premium for using
whole farm units or single crop units of
insurance; and
``(ii) to cross State and county boundaries to
form insurable units.
``(5) Evaluation.--
``(A) Requirement.--After the completion of any
pilot program under this section, the Corporation shall
evaluate the pilot program and submit to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the operations of the pilot program.
``(B) Evaluation and recommendations.--The report
shall include an evaluation by the Corporation of the
pilot program and the recommendations of the Corporation
with respect to implementing the program on a national
basis.
``(b) Livestock Pilot Programs.--
``(1) Definition of livestock.--In this subsection, the term
`livestock' includes, but is not limited to, cattle, sheep,
swine, goats, and poultry.
``(2) Programs required.--Subject to paragraph (7), the
Corporation shall conduct two or more pilot programs to evaluate
the effectiveness of risk management tools for livestock
producers, including the use of futures and options contracts
and policies and plans of insurance that protect the interests
of livestock producers and that provide--
``(A) livestock producers with reasonable protection
from the financial risks of price or income fluctuations
inherent in the production and marketing of livestock;
or
``(B) protection for production losses.
[[Page 114 STAT. 385]]
``(3) Purpose of programs.--To the maximum extent
practicable, the Corporation shall evaluate the greatest number
and variety of pilot programs described in paragraph (2) to
determine which of the offered risk management tools are best
suited to protect livestock producers from the financial risks
associated with the production and marketing of livestock.
``(4) Timing.--The Corporation shall begin conducting
livestock pilot programs under this subsection during fiscal
year 2001.
``(5) Relation to other limitations.--Any policy or plan of
insurance offered under this subsection may be prepared without
regard to the limitations of this title.
``(6) Assistance.--As part of a pilot program under this
subsection, the Corporation may provide reinsurance for policies
or plans of insurance and subsidize the purchase of futures and
options contracts or policies and plans of insurance offered
under the pilot program.
``(7) Private insurance.--No action may be undertaken with
respect to a risk under this subsection if the Corporation
determines that insurance protection for livestock producers
against the risk is generally available from private companies.
``(8) Location.--The Corporation shall conduct the livestock
pilot programs under this subsection in a number of counties
that is determined by the Corporation to be adequate to provide
a comprehensive evaluation of the feasibility, effectiveness,
and demand among producers for the risk management tools
evaluated in the pilot programs.
``(9) Eligible producers.--Any producer of a type of
livestock covered by a pilot program under this subsection that
owns or operates a farm or ranch in a county selected as a
location for that pilot program shall be eligible to participate
in that pilot program.
``(10) Limitation on expenditures.--The Corporation shall
conduct all livestock programs under this title so that, to the
maximum extent practicable, all costs associated with conducting
the livestock programs (other than research and development
costs covered by section 522) are not expected to exceed the
following:
``(A) $10,000,000 for each of fiscal years 2001 and
2002.
``(B) $15,000,000 for fiscal year 2003.
``(C) $20,000,000 for fiscal year 2004 and each
subsequent fiscal year.
``(c) Revenue Insurance Pilot Program.--
``(1) In general.--Subject to section 522(e)(4), the
Secretary shall carry out a pilot program in a limited number of
counties, as determined by the Secretary, for crop years 1997
through 2001, 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.
``(2) Administration.--Revenue insurance under this
subsection shall--
``(A) be offered through reinsurance arrangements
with private insurance companies;
``(B) offer at least a minimum level of coverage
that is an alternative to catastrophic crop insurance;
``(C) be actuarially sound; and
[[Page 114 STAT. 386]]
``(D) require the payment of premiums and
administrative fees by an insured producer.
``(d) Premium Rate Reduction Pilot Program.--
``(1) Purpose.--The purpose of the pilot program established
under this subsection is to determine whether approved insurance
providers will compete to market policies or plans of insurance
with reduced rates of premium, in a manner that maintains the
financial soundness of approved insurance providers and is
consistent with the integrity of the Federal crop insurance
program.
``(2) Establishment.--
``(A) In general.--Beginning with the 2002 crop
year, the Corporation shall establish a pilot program
under which approved insurance providers may propose for
approval by the Board policies or plans of insurance
with reduced rates of premium--
``(i) for one or more agricultural
commodities; and
``(ii) within a limited geographic area, as
proposed by the approved insurance provider and
approved by the Board.
``(B) Determination by board.--The Board shall
approve a policy or plan of insurance proposed under
this subsection that involves a premium reduction if the
Board determines that--
``(i) the interests of producers are
adequately protected within the pilot area;
``(ii) rates of premium are actuarially
appropriate, as determined by the Board;
``(iii) the size of the proposed pilot area is
adequate;
``(iv) the proposed policy or plan of
insurance would not unfairly discriminate among
producers within the proposed pilot area;
``(v) if the proposed policy or plan of
insurance were available in a geographic area
larger than the proposed pilot area, the proposed
policy or plan of insurance would--
``(I) not have a significant adverse
impact on the crop insurance delivery
system;
``(II) not result in a reduction of
program
integrity;
``(III) be actuarially appropriate;
and
``(IV) not place an additional
financial burden on the Federal
Government; and
``(vi) the proposed policy or plan of
insurance meets other requirements of this title
determined appropriate by the Board.
``(C) Time limitations and procedures.--The time
limitations and procedures of the Board established
under section 508(h) shall apply to a proposal submitted
under this subsection.''.
(b) Conforming Amendments.--Section 518 of the Federal Crop
Insurance Act (7 U.S.C. 1518) is amended--
(1) by striking ``livestock and'' after ``commodity,
excluding''; and
(2) by striking ``under subsection (a) or (m) of section 508
of this title''.
[[Page 114 STAT. 387]]
SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as amended
by section 132(a), is amended by adding at the end the following:
``SEC. 524. <<NOTE: 7 USC 1524.>> EDUCATION AND RISK MANAGEMENT
ASSISTANCE.
``(a) Education Assistance.--
``(1) In general.--Subject to the amounts made available
under paragraph (4)--
``(A) the Corporation shall carry out the program
established under paragraph (2); and
``(B) the Secretary, acting through the Cooperative
State Research, Education, and Extension Service, shall
carry out the program established under paragraph (3).
``(2) Education and information.--The Corporation shall
establish a program under which crop insurance education and
information is provided to producers in States in which (as
determined by the Secretary)--
``(A) there is traditionally, and continues to be, a
low level of Federal crop insurance participation and
availability; and
``(B) producers are underserved by the Federal crop
insurance program.
``(3) Partnerships for risk management education.--
``(A) Authority.--The Secretary, acting through the
Cooperative State Research, Education, and Extension
Service, shall establish a program under which
competitive grants are made to qualified public and
private entities (including land grant colleges,
cooperative extension services, and colleges or
universities), as determined by the Secretary, for the
purpose of educating agricultural producers about the
full range of risk management activities, including
futures, options, agricultural trade options, crop
insurance, cash forward contracting, debt reduction,
production diversification, farm resources risk
reduction, and other risk management strategies.
``(B) Basis for grants.--A grant under this
paragraph shall be awarded on the basis of merit and
shall be subject to peer or merit review.
``(C) Obligation period.--Funds for a grant under
this paragraph shall be available to the Secretary for
obligation for a 2-year period.
``(D) Administrative costs.--The Secretary may use
not more than 4 percent of the funds made available for
grants under this paragraph for administrative costs
incurred by the Secretary in carrying out this
paragraph.
``(4) Funding.--From the insurance fund established under
section 516(c), there is transferred--
``(A) for the education and information program
established under paragraph (2), $5,000,000 for fiscal
year 2001 and each subsequent fiscal year; and
``(B) for the partnerships for risk management
education program established under paragraph (3),
$5,000,000 for fiscal year 2001 and each subsequent
fiscal year.
``(b) Agricultural Management Assistance.--
[[Page 114 STAT. 388]]
``(1) Authority.--The Secretary shall provide cost share
assistance to producers, in a manner determined by the
Secretary, in not less than 10, nor more than 15, States in
which participation in the Federal crop insurance program is
historically low, as determined by the Secretary.
``(2) Uses.--A producer may use cost share assistance
provided under this subsection to--
``(A) construct or improve--
``(i) watershed management structures; or
``(ii) irrigation structures;
``(B) plant trees to form windbreaks or to improve
water quality;
``(C) mitigate financial risk through production
diversification or resource conservation practices,
including--
``(i) soil erosion control;
``(ii) integrated pest management; or
``(iii) transition to organic farming;
``(D) enter into futures, hedging, or options
contracts in a manner designed to help reduce
production, price, or revenue risk;
``(E) enter into agricultural trade options as a
hedging transaction to reduce production, price, or
revenue risk; or
``(F) conduct any other activity related to the
activities described in subparagraphs (A) through (E),
as determined by the Secretary.
``(2) Payment limitation.--The total amount of payments made
to a person (as defined in section 1001(5) of the Food Security
Act (7 U.S.C. 1308(5))) under this subsection for any year may
not exceed $50,000.
``(3) Commodity credit corporation.--
``(A) In general.--The Secretary shall carry out
this subsection through the Commodity Credit
Corporation.
``(B) Funding.--The Commodity Credit Corporation
shall make available to carry out this subsection
$10,000,000 for fiscal year 2001 and each subsequent
fiscal year.''.
SEC. 134. OPTIONS PILOT PROGRAM.
Section 191 of the Agricultural Market Transition Act (7 U.S.C.
7331) is amended--
(1) in the first sentence of subsection (b), by striking
``100 counties, except that not more than 6'' and inserting
``300 counties, except that not more than 25'';
(2) in subsection (c)(2), by inserting before the semicolon
the following: ``during any calendar year in which a county in
which the farm of the producer is located is included in the
pilot program''; and
(3) in the first sentence of subsection (h), by inserting
before the period at the end the following: ``, except that the
amount of Commodity Credit Corporation funds used to carry out
this section shall not exceed, to the maximum extent
practicable, $9,000,000 for fiscal year 2001, $15,000,000 for
fiscal year 2002, and $2,000,000 for fiscal year 2003''.
[[Page 114 STAT. 389]]
Subtitle D--Administration
SEC. 141. RELATION TO OTHER LAWS.
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502), as
amended by section 122, is amended by adding at the end the following:
``(d) Relation to Other Laws.--
``(1) Terms and conditions of policies and plans.--The terms
and conditions of any policy or plan of insurance offered under
this title that is reinsured by the Corporation shall not--
``(A) be subject to the jurisdiction of the
Commodity Futures Trading Commission or the Securities
and Exchange Commission; or
``(B) be considered to be accounts, agreements
(including any transaction that is of the character of,
or is commonly known to the trade as, an `option',
`privilege', `indemnity', `bid', `offer', `put', `call',
`advance guaranty', or `decline guaranty'), or
transactions involving contracts of sale of a commodity
for future delivery, traded or executed on a contract
market for the purposes of the Commodity Exchange Act (7
U.S.C. 1 et seq.).
``(2) Effect on cftc and commodity exchange act.--Nothing in
this title affects the jurisdiction of the Commodity Futures
Trading Commission or the applicability of the Commodity
Exchange Act (7 U.S.C. 1 et seq.) to any transaction conducted
on a contract market under that Act by an approved insurance
provider to offset the approved insurance provider's risk under
a plan or policy of insurance under this title.''.
SEC. 142. MANAGEMENT OF CORPORATION.
(a) Board of Directors of Corporation.--
(1) Change in composition.--Section 505 of the Federal Crop
Insurance Act (7 U.S.C. 1505) is amended by striking the section
heading, ``Sec. 505.'', and subsection (a) and inserting the
following:
``SEC. 505. MANAGEMENT OF CORPORATION.
``(a) Board of Directors.--
``(1) Establishment.--The management of the Corporation
shall be vested in a Board of Directors subject to the general
supervision of the Secretary.
``(2) Composition.--The Board shall consist of only the
following members:
``(A) The manager of the Corporation, who shall
serve as a nonvoting ex officio member.
``(B) The Under Secretary of Agriculture responsible
for the Federal crop insurance program.
``(C) One additional Under Secretary of Agriculture
(as designated by the Secretary).
``(D) The Chief Economist of the Department of
Agriculture.
``(E) One person experienced in the crop insurance
business.
``(F) One person experienced in reinsurance or the
regulation of insurance.
[[Page 114 STAT. 390]]
``(G) Four active producers who are policy holders,
are from different geographic areas of the United
States, and represent a cross-section of agricultural
commodities grown in the United States, including at
least one specialty crop producer.
``(3) Appointment of private sector members.--The members of
the Board described in subparagraphs (E), (F), and (G) of
paragraph (2)--
``(A) shall be appointed by, and hold office at the
pleasure of, the Secretary;
``(B) shall not be otherwise employed by the Federal
Government;
``(C) shall be appointed to staggered 4-year terms,
as determined by the Secretary; and
``(D) shall serve not more than two consecutive
terms.
``(4) Chairperson.--The Board shall select a member of the
Board to serve as Chairperson.''.
(2) Implementation.--The <<NOTE: 7 USC 1505 note.>> initial
members of the Board of Directors of the Federal Crop Insurance
Corporation required to be appointed under section 505(a)(3) of
the Federal Crop Insurance Act (as amended by paragraph (1))
shall be appointed during the period beginning February 1, 2001,
and ending April 1, 2001.
(3) Effect on <<NOTE: 7 USC 1505 note.>> existing board.--A
member of the Board of Directors of the Federal Crop Insurance
Corporation on the date of the enactment of this Act may
continue to serve as a member of the Board until the members
referred to in paragraph (2) are first appointed.
(b) Expert Review of Policies, Plans of Insurance, and Related
Material.--Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505)
is amended by adding at the end the following:
``(e) Expert Review of Policies, Plans of Insurance, and Related
Material.--
``(1) Review by experts.--The Board shall establish
procedures under which any policy or plan of insurance, as well
as any related material or modification of such a policy or plan
of insurance, to be offered under this title shall be subject to
independent reviews by persons experienced as actuaries and in
underwriting, as determined by the Board.
``(2) Review of corporation policies and plans.--Except as
provided in paragraph (3), the Board shall contract with at
least five persons to each conduct a review of the policy or
plan of insurance, of whom--
``(A) not more than one person may be employed by
the Federal Government; and
``(B) at least one person must be designated by
approved insurance providers pursuant to procedures
determined by the Board.
``(3) Review of private submissions.--If the reviews under
paragraph (1) cover a policy or plan of insurance, or any
related material or modification of a policy or plan of
insurance, submitted under section 508(h)--
``(A) the Board shall contract with at least five
persons to each conduct a review of the policy or plan
of insurance, of whom--
``(i) not more than one person may be employed
by the Federal Government; and
[[Page 114 STAT. 391]]
``(ii) none may be employed by an approved
insurance provider; and
``(B) <<NOTE: Deadline.>> each review must be
completed and submitted to the Board not later than 30
days prior to the end of the 120-day period described in
section 508(h)(4)(D).
``(4) Consideration of reviews.--The Board shall include
reviews conducted under this subsection as part of the
consideration of any policy or plan or insurance, or any related
material or modification of a policy or plan of insurance,
proposed to be offered under this title.
``(5) Funding of reviews.--Each contract to conduct a review
under this subsection shall be funded from amounts made
available under section 516(b)(2)(A)(ii).
``(6) Relation to other authority.--The contract authority
provided in this subsection is in addition to any other
contracting authority that may be exercised by the Board under
section 506(l).''.
SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE.
Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C.
1507(c)(2)) is amended--
(1) by striking ``actuarial, loss adjustment,'' and
inserting ``actuarial services, services relating to loss
adjustment and rating plans of insurance,''; and
(2) by inserting after ``private sector'' the following:
``and to enable the Corporation to concentrate on regulating the
provision of insurance under this title and evaluating new
products and materials submitted under section 508(h) or 523''.
SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMATION.
Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)(5)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and moving such clauses 2 ems to the
right;
(2) by striking ``The Corporation'' and inserting the
following:
``(A) Available information.--The Corporation''; and
(3) by adding at the end the following:
``(B) Use of electronic methods.--
``(i) Dissemination by corporation.--The
Corporation shall make the information described
in subparagraph (A) available electronically to
producers and approved insurance providers.
``(ii) Submission to corporation.--To the
maximum extent practicable, the Corporation shall
allow producers and approved insurance providers
to use electronic methods to submit information
required by the Corporation.''.
SEC. 145. ADEQUATE COVERAGE FOR STATES.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))
is amended by adding at the end the following:
``(7) Adequate coverage for states.--
[[Page 114 STAT. 392]]
``(A) Definition of adequately served.--In this
paragraph, the term `adequately served' means having a
participation rate that is at least 50 percent of the
national average participation rate.
``(B) Review.--The Board shall review the policies
and plans of insurance that are offered by approved
insurance providers under this title to determine if
each State is adequately served by the policies and
plans of insurance.
``(C) Report.--
``(i) In <<NOTE: Deadline.>> general.--Not
later than 30 days after completion of the review
under subparagraph (B), the Board shall submit to
Congress a report on the results of the review.
``(ii) Recommendations.--The report shall
include recommendations to increase participation
in States that are not adequately served by the
policies and plans of insurance.''.
SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD.
(a) Persons Authorized To Submit.--Section 508(h)(1) of the Federal
Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by inserting after
``a person'' the following: ``(including an approved insurance provider,
a college or university, a cooperative or trade association, or any
other person)''.
(b) Sale by Approved Insurance Providers.--Section 508(h)(3) of the
Federal Crop Insurance Act (7 U.S.C. 1508(h)(3)) is amended in the first
sentence by inserting after ``for sale'' the following: ``by approved
insurance providers''.
(c) Guidelines for Submission and Review.--Section 508(h)(4) of the
Federal Crop Insurance Act (7 U.S.C. 1508(h)(4)) is amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) Confidentiality.--
``(i) In general.--A proposal submitted to the
Board under this subsection (including any
information generated from the proposal) shall be
considered to be confidential commercial or
financial information for the purposes of section
552(b)(4) of title 5, United States Code.
``(ii) Standard of confidentiality.--If
information concerning a proposal could be
withheld by the Secretary under the standard for
privileged or confidential information pertaining
to trade secrets and commercial or financial
information under section 552(b)(4) of title 5,
United States Code, the information shall not be
released to the public.
``(iii) Application.--This subparagraph shall
apply with respect to a proposal only during the
period preceding any approval of the proposal by
the Board.'';
(2) in subparagraph (B), by inserting ``Personal
presentation.--'' before ``The''; and
(3) by striking subparagraphs (C) and (D) and inserting the
following:
``(C) Notification of intent to disapprove.--
``(i) Time <<NOTE: Deadline.>> period.--The
Board shall provide an applicant with notification
of intent to disapprove a
[[Page 114 STAT. 393]]
proposal not later than 30 days prior to making
the disapproval.
``(ii) Modification of application.--
``(I) Authority.--An applicant that
receives the notification may modify the
application, and such application, as
modified, shall be considered by the
Board in the manner provided in
subparagraph (D) within the 30-day
period beginning on the date the
modified application is submitted.
``(II) Time period.--Clause (i)
shall not apply to the Board's
consideration of the modified
application.
``(iii) Explanation.--Any notification of
intent to disapprove a policy or other material
submitted under this subsection shall be
accompanied by a complete explanation as to the
reasons for the Board's intention to deny
approval.
``(D) Determination to approve or disapprove
policies or materials.--
``(i) Time <<NOTE: Deadline.>> period.--Not
later than 120 days after a policy or other
material is submitted under this subsection, the
Board shall make a determination to approve or
disapprove the policy or material.
``(ii) Explanation.--Any determination by the
Board to disapprove any policy or other material
shall be accompanied by a complete explanation of
the reasons for the Board's decision to deny
approval.
``(iii) Failure to meet deadline.--
Notwithstanding any other provision of this title,
if the Board fails to make a determination within
the prescribed time period, the submitted policy
or other material shall be deemed approved by the
Board for the initial reinsurance year designated
for the policy or material, unless the Board and
the applicant agree to an extension.''.
(d) Technical Amendments.--Section 508(h) of the Federal Crop
Insurance Act (7 U.S.C. 1508(h)) is amended--
(1) by striking paragraphs (6), (8), (9), and (10); and
(2) by redesignating paragraph (7) as paragraph (6).
SEC. 147. FUNDING.
(a) Authorization of Appropriations.--Section 516(a)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
(1) by striking ``years--'' and inserting ``years the
following:'';
(2) by capitalizing the first letter of the first word of
each subparagraph;
(3) by striking ``; and'' at the end of subparagraph (A) and
inserting a period; and
(4) by adding at the end the following:
``(C) Costs associated with the conduct of livestock
and wild salmon pilot programs carried out under section
523, subject to the limitations in subsections
(a)(3)(E)(ii) and (b)(10) of section 523.
``(D) Costs associated with the reimbursement,
contracting, and partnerships for research and
development under section 522.''.
[[Page 114 STAT. 394]]
(b) Payment of General Corporation Expenses From Insurance Fund.--
Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C.
1516(b)(1)) is amended--
(1) by striking ``including--'' and inserting ``including
the following:'';
(2) by capitalizing the first letter of the first word of
each subparagraph;
(3) by striking the semicolon at the end of subparagraph (A)
and inserting a period;
(4) by striking ``; and'' at the end of subparagraph (B) and
inserting a period; and
(5) by adding at the end the following:
``(D) Costs associated with the conduct of livestock
and wild salmon pilot programs carried out under section
523, subject to the limitations in subsections
(a)(3)(E)(ii) and (b)(10) of section 523.
``(E) Costs associated with the reimbursement,
contracting, and partnerships for research and
development under section 522.''.
(c) Expedited Consideration and Implementation of Policies, Plans of
Insurance, and Related Materials.--Section 516(b)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1516(b)(2)) is amended--
(1) by striking ``Research and development ex-
penses.--'' and inserting ``Policy consideration and
implementation.--'';
(2) in subparagraph (A)--
(A) by striking ``may pay from'' and inserting ``may
use'';
(B) by striking ``research and development expenses
of the Corporation''; and
(C) by striking the period at the end and inserting
the following: ``, to pay the following:
``(i) Costs associated with the consideration
and implementation of policies, plans of
insurance, and related materials submitted under
section 508(h) or developed under section 522 or
523.
``(ii) Costs to contract for the review of
policies, plans of insurance, and related
materials under section 505(e) and to contract for
other assistance in considering policies, plans of
insurance, and related materials.''; and
(3) in subparagraph (B), by striking ``research and
development''.
(d) Deposits to Insurance Fund.--Section 516(c)(1) of the Federal
Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended--
(1) by striking ``income and'' and inserting ``income,'';
and
(2) by inserting ``, and civil fines collected under section
515(h)'' after ``(a)(2)''.
SEC. 148. <<NOTE: 7 USC 1506 note.>> STANDARD REINSURANCE AGREEMENT.
Notwithstanding section 536 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105-
185), the Federal Crop Insurance Corporation may renegotiate the
Standard Reinsurance Agreement once during the 2001 through 2005
reinsurance years.
[[Page 114 STAT. 395]]
Subtitle E--Miscellaneous
SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES.
Section 508(a)(3) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)(3)), as amended by section 123, is amended by adding at the end
the following:
``(C) Limitation on revenue coverage for potatoes.--
No policy or plan of insurance provided under this title
(including a policy or plan of insurance approved by the
Board under subsection (h)) shall cover losses due to a
reduction in revenue for potatoes except as covered
under a whole farm policy or plan of insurance, as
determined by the Corporation.''.
SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)),
as amended by 145, is amended by adding at the end the following:
``(8) Special provisions for cotton and rice.--
Notwithstanding any other provision of this title, beginning
with the 2001 crops of upland cotton, extra long staple cotton,
and rice, the Corporation shall offer plans of insurance,
including prevented planting coverage and replanting coverage,
under this title that cover losses of upland cotton, extra long
staple cotton, and rice resulting from failure of irrigation
water supplies due to drought and saltwater intrusion.''.
SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS.
(a) In General.--Except as otherwise provided in this section,
notwithstanding section 508(c)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(c)(5)), a producer that purchased a 1999 Crop Revenue
Coverage policy for a commodity covered by Bulletin MGR-99-004 (as in
effect before being voided by subsection (d)) by the sales closing date
prescribed in the actuarial documents in the county where the policy was
sold shall receive an indemnity payment in accordance with the policy.
(b) Base and Harvest Prices.--The base price and harvest price under
the policy for a commodity described in subsection (a) shall be
determined in accordance with the Commodity Exchange Endorsement
published by the Federal Crop Insurance Corporation on July 14, 1998 (63
Fed. Reg. 37829).
(c) Reinsurance.--Subject to subsection (b), notwithstanding section
508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(5)), the
Corporation shall provide reinsurance with respect to the policy in
accordance with the Standard Reinsurance Agreement.
(d) Voiding of Bulletin.--Bulletin MGR-99-004, issued by the
Administrator of the Risk Management Agency of the Department of
Agriculture, is void.
(e) Effective Date.--This section takes effect on October 1, 2000.
SEC. 164. SENSE OF THE CONGRESS REGARDING THE FEDERAL CROP INSURANCE
PROGRAM.
It is the sense of the Congress that--
[[Page 114 STAT. 396]]
(1) farmer-owned cooperatives play a valuable role in
achieving the purposes of the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) by--
(A) encouraging producer participation in the
Federal crop insurance program;
(B) improving the delivery system for crop
insurance; and
(C) helping to develop new and improved insurance
products;
(2) the Risk Management Agency, through its regulatory
activities, should encourage efforts by farmer-owned
cooperatives to promote appropriate risk management strategies
among their membership;
(3) partnerships between approved insurance providers and
farmer-owned cooperatives provide opportunity for agricultural
producers to obtain needed insurance coverage on a more
competitive basis and at a lower cost;
(4) the Risk Management Agency is following an appropriate
regulatory process to ensure the continued participation by
farmer-owned cooperatives in the delivery of crop insurance;
(5) efforts by the Risk Management Agency to finalize
regulations that would incorporate the currently approved
business practices of cooperatives participating in the Federal
crop insurance program should be commended; and
(6) <<NOTE: Deadline.>> not later than 180 days after the
date of the enactment of this Act, the Federal Crop Insurance
Corporation should complete promulgation of the proposed rule
entitled ``General Administrative Regulations; Premium
Reductions; Payment of Rebates, Dividends, and Patronage
Refunds; and Payments to Insured-Owned and Record-Controlling
Entities'', published by the Federal Crop Insurance Corporation
on May 12, 1999 (64 Fed. Reg. 25464), in a manner that--
(A) effectively responds to comments received from
the public during the rulemaking process;
(B) provides an effective opportunity for farmer-
owned cooperatives to assist the members of the
cooperatives to obtain crop insurance and participate
most effectively in the Federal crop insurance program;
(C) incorporates the currently approved business
practices of farmer-owned cooperatives participating in
the Federal crop insurance program; and
(D) protects the interests of agricultural
producers.
SEC. 165. SENSE OF THE CONGRESS ON RURAL AMERICA, INCLUDING MINORITY AND
LIMITED-RESOURCE FARMERS.
It is the sense of the Congress that--
(1) rural America, including minority and limited resource
farmers, has not experienced this recent period of economic
prosperity;
(2) as a result of sustained low commodity prices, they face
significant challenges, including--
(A) a depressed farm economy;
(B) a loss of business and jobs on rural main
streets;
(C) a reduction of capital investment; and
(D) a loss of independent farmers;
(3) Congress applauds American farmers and rural advocates,
including the organizers of the Rally for Rural America,
[[Page 114 STAT. 397]]
for their efforts in calling this situation to the public's
attention; and
(4) Congress is committed to responding to the concerns of
rural America and pledges to devote full attention to making
necessary changes to Federal agricultural programs in a manner
that will--
(A) alleviate the agricultural price crisis;
(B) ensure competitive markets by empowering farm
families;
(C) ensure that all farmers, including minority and
limited-resource farmers, participate fully in the
benefits of those programs;
(D) invest in rural education and health;
(E) increase resources for outreach and technical
farming assistance;
(F) conserve our natural resources for future
generations; and
(G) ensure a safe and secure food supply for all.
Subtitle F--Effective Dates and Implementation
SEC. 171. <<NOTE: 7 USC 1501 note.>> EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), this Act and
the amendments made by this Act take effect on the date of the enactment
of this Act.
(b) Exceptions.--
(1) 2001 fiscal year.--The following provisions and the
amendments made by the provisions take effect on October 1,
2000:
(A) Subtitle C.
(B) Section 146.
(C) Section 163.
(2) 2001 crop year.--The amendments made by the following
provisions apply beginning with the 2001 crop of an agricultural
commodity:
(A) Subsections (a), (b), and (c) of section 101.
(B) Section 102(a).
(C) Subsections (a), (b), and (c) of section 103.
(D) Section 104.
(E) Section 105(b).
(F) Section 108.
(G) Section 109.
(H) Section 162.
(3) 2001 reinsurance year.--The amendments made by the
following provisions apply beginning with the 2001 reinsurance
year:
(A) Section 101(d).
(B) Section 102(b).
(C) Section 103(d).
SEC. 172. <<NOTE: 7 USC 1501 note.>> REGULATIONS.
Not later than <<NOTE: Deadline.>> 120 days after the date of the
enactment of this Act, the Secretary of Agriculture shall promulgate
regulations to carry out this Act and the amendments made by this Act.
[[Page 114 STAT. 398]]
SEC. 173. <<NOTE: 7 USC 1501 note.>> SAVINGS CLAUSE.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and section
196 of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333), as in effect on day before the date of the enactment of
this Act, shall--
(1) continue to apply with respect to the 1999 crop year;
and
(2) apply with respect to the 2000 crop year, to the extent
the application of an amendment made by this Act is delayed
under section 171(b) or by the terms of the amendment.
TITLE II--AGRICULTURAL ASSISTANCE
Subtitle A--Market Loss Assistance
SEC. 201. MARKET <<NOTE: 7 USC 1421 note.>> LOSS ASSISTANCE.
(a) In General.--The Secretary of Agriculture (referred to in this
title as the ``Secretary'') shall use funds of the Commodity Credit
Corporation to provide assistance in the form of a market loss
assistance payment to owners and producers on a farm that are eligible
for a final payment for fiscal year 2000 under a production flexibility
contract for the farm under the Agricultural Market Transition Act (7
U.S.C. 7201 et seq.).
(b) Amount and Manner.--In providing payments under this section,
the Secretary shall--
(1) use the same contract payment rates as are used under
section 802(b) of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act,
2000 (7 U.S.C. 1421 note; Public Law 106-78); and
(2) provide the payments in a manner that is consistent with
section 802(c) of that Act.
(c) Timing.--The <<NOTE: Deadline.>> Secretary shall make the
payments required by this section not earlier than September 1, 2000,
and not later than September 30, 2000.
SEC. 202. <<NOTE: 7 USC 1421 note.>> OILSEEDS.
(a) In General.--The Secretary shall use $500,000,000 of funds of
the Commodity Credit Corporation to make payments to producers of the
2000 crop of oilseeds that are eligible to obtain a marketing assistance
loan under section 131 of the Agricultural Market Transition Act (7
U.S.C. 7231).
(b) Computation.--A payment to producers on a farm under this
section for an oilseed shall be equal to the product obtained by
multiplying--
(1) a payment rate determined by the Secretary;
(2) the acreage of the producers on the farm for the
oilseed, as determined under subsection (c); and
(3) the yield of the producers on the farm for the oilseed,
as determined under subsection (d).
(c) Acreage.--
(1) In general.--Except as provided in paragraph (2), the
acreage of the producers on the farm for an oilseed under
subsection (b)(2) shall be equal to the number of acres planted
to the oilseed by the producers on the farm during the 1997,
1998, or 1999 crop year, whichever is greatest, as reported
[[Page 114 STAT. 399]]
by the producers on the farm to the Secretary (including any
acreage reports that are filed late).
(2) New producers.--In the case of producers on a farm that
planted acreage to an oilseed during the 2000 crop year but not
the 1997, 1998, or 1999 crop year, the acreage of the producers
for the oilseed under subsection (b)(2) shall be equal to the
number of acres planted to the oilseed by the producers on the
farm during the 2000 crop year, as reported by the producers on
the farm to the Secretary (including any acreage reports that
are filed late).
(d) Yield.--
(1) Soybeans.--Except as provided in paragraph (3), in the
case of soybeans, the yield of the producers on a farm under
subsection (b)(3) shall be equal to the greatest of--
(A) the average county yield per harvested acre for
each of the 1995 through 1999 crop years, excluding the
crop year with the highest yield per harvested acre and
the crop year with the lowest yield per harvested acre;
or
(B) the actual yield of the producers on the farm
for the 1997, 1998, or 1999 crop year.
(2) Other oilseeds.--Except as provided in paragraph (3), in
the case of oilseeds other than soybeans, the yield of the
producers on a farm under subsection (b)(3) shall be equal to
the greatest of--
(A) the average national yield per harvested acre
for each of the 1995 through 1999 crop years, excluding
the crop year with the highest yield per harvested acre
and the crop year with the lowest yield per harvested
acre; or
(B) the actual yield of the producers on the farm
for the 1997, 1998, or 1999 crop year.
(3) New producers.--In the case of producers on a farm that
planted acreage to an oilseed during the 2000 crop year but not
the 1997, 1998, or 1999 crop year, the yield of the producers on
a farm under subsection (b)(3) shall be equal to the greater
of--
(A) the average county yield per harvested acre for
each of the 1995 through 1999 crop years, excluding the
crop year with the highest yield per harvested acre and
the crop year with the lowest yield per harvested acre;
or
(B) the actual yield of the producers on the farm
for the 2000 crop.
(4) Data source.--To the maximum extent available, the
Secretary shall use data provided by the National Agricultural
Statistics Service to carry out this subsection.
SEC. 203. <<NOTE: 7 USC 1421 note.>> SPECIALTY CROPS.
(a) Replenishment of Perishable Agricultural Commodities Act Fund.--
Of the amount made available under section 261(a)(2), $30,450,000
shall--
(1) be deposited in the Perishable Agricultural Commodities
Act Fund established by section 3(b)(5) of the Perishable
Agricultural Commodities Act, 1930 (7 U.S.C. 499c(b)(5));
(2) be merged with other amounts in the Perishable
Agricultural Commodities Act Fund; and
[[Page 114 STAT. 400]]
(3) be available for the same purposes and for the same time
period as other amounts in the Perishable Agricultural
Commodities Act Fund.
(b) Replenishment of Trust Funds for Services under Agricultural
Marketing Act of 1946.--Of the amount made available under section
261(a)(2), $29,000,000 shall--
(1) be deposited in the trust fund account established to
cover the cost of inspection, certification, and identification
services provided under section 203(h) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1622(h));
(2) be merged with other amounts in the trust fund account;
and
(3) be available for the same purposes and for the same time
period as other amounts in the trust fund account.
(c) Inspection Services Improvements.--Of the amount made available
under section 261(a)(2), $11,550,000 shall be used by the Secretary to
improve the infrastructure and system used for inspecting fruits and
vegetables, including improving--
(1) the program used to train inspectors, including the
establishment of an inspector training center;
(2) the technological resources used by inspectors;
(3) the use of digital imaging by inspectors; and
(4) the office space and grading tables used by inspectors.
(d) Surplus Crop Purchases.--
(1) Purchases.--Of the amount made available under section
261(a)(2), $200,000,000 shall be used by the Secretary to
purchase specialty crops that have experienced low prices during
the 1998 or 1999 crop years, including apples, black-eyed peas,
cherries, citrus, cranberries, onions, melons, peaches, and
potatoes.
(2) Displacement.--The Secretary shall ensure that purchases
of specialty crops under this subsection will not displace
purchases by the Secretary under any other law.
(e) Grower Compensation.--
(1) Compensation.--Of the amount made available under
section 261(a)(2), $25,000,000 shall be used by the Secretary to
compensate--
(A) growers covered by the Secretary's Declaration
of Extraordinary Emergency published on March 2, 2000
(65 Fed. Reg. 11280), regarding the plum pox virus;
(B) growers for losses due to Pierce's disease; and
(C) commercial producers for losses due to citrus
canker.
(2) Report.--Not <<NOTE: Deadline.>> later than July 19,
2000, the Secretary, in coordination with the Inspector General
of the Department of Agriculture, shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that analyzes--
(A) the economic losses to the produce industry as a
result of allegations of false inspection certificates
prepared by graders of the Department of Agriculture at
Hunts Point Terminal Market, Bronx, New York; and
(B) the restitution by the Secretary for persons
damaged as a result of losses described in subparagraph
(A).
(f ) Apple Loans.--
[[Page 114 STAT. 401]]
(1) Requirement.--The Secretary, acting through the Farm
Service Agency, shall use funds of the Commodity Credit
Corporation to make loans to producers of apples that are
suffering economic loss as the result of low prices for apples.
(2) Term.--The term of a loan made under this subsection
shall be not more than 3 years.
(3) Interest rate.--The interest rate for a loan made under
this subsection shall be at a rate equal to the then current
cost of money to the Government of the United States for loans
of similar maturity.
(4) Security.--The Secretary may require a loan made under
this subsection to be secured by real property or such other
collateral as the Secretary considers appropriate and protects
the interests of the Federal Government.
(5) Limitation.--The cost of all loans made under this
subsection shall not exceed $5,000,000.
SEC. 204. <<NOTE: 7 USC 1421 note.>> OTHER COMMODITIES.
(a) Peanuts.--
(1) In general.--The Secretary shall use funds of the
Commodity Credit Corporation to provide payments to producers of
quota peanuts or additional peanuts to partially compensate the
producers for continuing low commodity prices, and increasing
costs of production, for the 2000 crop year.
(2) Amount.--The amount of a payment made to producers on a
farm of quota peanuts or additional peanuts under paragraph (1)
shall be equal to the product obtained by multiplying--
(A) the quantity of quota peanuts or additional
peanuts produced or considered produced by the
producers; and
(B) a payment rate equal to--
(i) in the case of quota peanuts, $30.50 per
ton; and
(ii) in the case of additional peanuts, $16.00
per ton.
(b) Tobacco.--
(1) Definitions.--In this subsection:
(A) Eligible person.--The term ``eligible person''
means a person that owns or operates, or produces
eligible tobacco on, a farm--
(i) for which the quantity of quota of
eligible tobacco allotted to the farm under part I
of subtitle B of title III of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) was
reduced from the 1999 crop year to the 2000 crop
year; and
(ii) that is used for the production of
eligible tobacco during the 2000 crop year.
(B) Eligible tobacco.--The term ``eligible tobacco''
means each of the following kinds of tobacco:
(i) Flue-cured tobacco, comprising types 11,
12, 13, and 14.
(ii) Fire-cured tobacco, comprising type 21.
(iii) Burley tobacco, comprising type 31.
(iv) Cigar-filler and cigar-binder tobacco,
comprising types 42, 43, 44, 54, and 55.
[[Page 114 STAT. 402]]
(2) Payments.--Effective <<NOTE: Effective date.>> beginning
October 1, 2000, the Secretary shall use $340,000,000 of funds
of the Commodity Credit Corporation to make payments to eligible
persons.
(3) Allocation of funds among states.--The funds made
available for eligible persons under paragraph (2) shall be
allocated among States in the following dollar amounts:
Alabama $100,000
Arkansas $1,000
Florida $2,500,000
Georgia $13,000,000
Indiana $5,400,000
Kansas $23,000
Kentucky $140,000,000
Missouri $2,000,000
North Carolina $100,000,000
Ohio $6,000,000
Oklahoma $1,000
South Carolina $15,000,000
Tennessee $35,000,000
Virginia $19,000,000
Wisconsin $675,000
West Virginia $1,300,000.
(4) Allocation of funds among farms in a state.--The
Secretary shall divide the amount allocated to a State under
paragraph (3) among farms in the State based on the quota of
eligible tobacco available to each farm of an eligible person
for the 2000 crop year.
(5) Division of farm payments among eligible persons in a
state.--Not <<NOTE: Deadline.>> later than October 20, 2000, the
Secretary shall divide amounts made available to farms in a
State under paragraph (4) among eligible persons who are quota
owners, quota lessees, and tobacco producers on farms in the
State, and make payments to the eligible persons, on the basis
of--
(A) in the case of a State that is a party to the
National Tobacco Grower Settlement Trust, the formula in
the Trust used to allocate funds among quota owners,
quota lessees, and tobacco producers on farms in the
State, with such adjustments as the Secretary determines
are necessary to enable the payments to be made by
October 20, 2000; or
(B) in the case of a State that is not a party to
the National Tobacco Grower Settlement Trust, a formula
established by the Secretary.
(6) Payments to eligible persons in georgia.--The Secretary
shall use the amount allocated to the State of Georgia under
paragraph (3) to make payments to eligible persons in Georgia
only if the State of Georgia agrees to use an equal amount (not
to exceed $13,000,000) to make payments at the same time, or
subsequently, to the same eligible persons in the same manner as
provided for the Federal payment under paragraphs (4) and (5).
(7) Use for administrative costs.--None of the funds made
available under paragraphs (1) through (7) may be used to pay
administrative costs incurred in carrying out those paragraphs.
(8) Transfer of allotments.--Section 318 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1314d) is amended by striking
subsection (g) and inserting the following:
[[Page 114 STAT. 403]]
``(g) Transfer of Allotments.--Under this section, the total acreage
allotted to any farm after any transfer shall not exceed 50 percent of
the acreage of cropland on the farm.''.
(9) Burley tobacco inventories of producer associations.--
Section 319(c)(3) of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1314e(c)(3)) is amended--
(A) in subparagraph (B), by striking ``In'' and
inserting ``Except as provided in subparagraph (D),
in''; and
(B) by adding at the end the following:
``(D) Nonapplicability of downward adjustment.--If
the Secretary determines for any of the 2001 or
subsequent crop years that noncommitted pool stocks of
Burley tobacco are equal to or less than the reserve
stock level established under this paragraph,
subparagraph (B) shall not apply to the crop year for
which the determination is made and all subsequent crop
years.''.
(10) Limitations on burley tobacco quota adjustments.--
(A) Carry forward adjustment.--Section 319(e) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(e))
is amended in the fifth sentence--
(i) by striking ``: Provided, That'' and
inserting ``, except that (1)''; and
(ii) by inserting before the period at the end
the following: ``, and (2) the aggregate of such
increases for all farms for any crop year may not
exceed 10 percent of the national basic quota for
the preceding crop year''.
(B) Lease and transfer of quota due to natural
disasters.--Section 319(k) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1314e(k)) is amended by
adding at the end the following:
``(3) Limitation.--The total quantity of quota leased or
transferred to a farm during a crop year under this subsection
may not exceed 15 percent of the quota on the farm that existed
prior to any such lease or transfer for the crop year.''.
(11) Lease and transfer of burley tobacco quota.--Section
319 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e)
is amended by striking subsection (l) and inserting the
following:
``(l) Lease and Transfer of Burley Tobacco Quota.--
``(1) Approval by producers.--Notwithstanding any other
provision of this section, the Secretary may permit the lease
and transfer of a Burley tobacco quota from one farm in a State
to any other farm in the State if, in a State-wide referendum
conducted by the Secretary, a majority of the active Burley
tobacco producers voting in the referendum approve the use of
that type of lease and transfer.
``(2) Application.--This <<NOTE: State listing.>> subsection
shall apply only to the States of Tennessee, Ohio, Indiana,
Kentucky, and Virginia.''.
(12) Recordkeeping and sale of burley tobacco quota and
acreage.--Section 319 of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1314e) is amended by adding at the end the following:
``(m) Computerized Recordkeeping System for Burley Tobacco Quota and
Acreage.--
[[Page 114 STAT. 404]]
``(1) Producer reports.--Each person that owns a farm for
which a Burley tobacco marketing quota is established under this
Act shall annually file with the Secretary a report describing
the acreage planted to Burley tobacco on the farm.
``(2) Computerized recordkeeping system.--Not later than 180
days after the date of the enactment of this subsection, the
Secretary shall establish a computerized recordkeeping system
that contains all information reported under paragraph (1) and
related records, as determined by the Secretary.
``(n) Sale of Burley Tobacco Quota.--Notwithstanding any other
provision of this section, if a person that owns a farm for which a
Burley tobacco marketing quota is established under this Act sells all
or part of the acreage on the farm to a buyer, the Secretary shall
permit the seller and buyer of the acreage to determine the percentage
of the quota that is transferred with the acreage sold.''.
(c) Honey.--
(1) In general.--The Secretary shall use funds of the
Commodity Credit Corporation to make available recourse loans to
producers of the 2000 crop of honey on fair and reasonable terms
and conditions, as determined by the Secretary.
(2) Loan rate.--The loan rate for a loan under paragraph (1)
shall be equal to 85 percent of the average price of honey
during the 5-crop year period preceding the 2000 crop year,
excluding the crop year in which the average price of honey was
the highest and the crop year in which the average price of
honey was the lowest in the period.
(d) Wool and Mohair.--
(1) In general.--The Secretary shall use funds of the
Commodity Credit Corporation to make payments to producers of
wool, and producers of mohair, for the 1999 marketing year.
(2) Payment rate.--The payment rate for payments made to
producers under paragraph (1) shall be equal to--
(A) in the case of wool, 20 cents per pound; and
(B) in the case of mohair, 40 cents per pound.
(e) Cottonseed.--The Secretary shall use $100,000,000 of funds of
the Commodity Credit Corporation to provide assistance to producers and
first-handlers of the 2000 crop of cottonseed.
SEC. 205. PAYMENTS <<NOTE: 7 USC 1421 note.>> IN LIEU OF LOAN DEFICIENCY
PAYMENTS.
(a) Eligible Producers.--Effective for the 2001 crop year, in the
case of a producer that would be eligible for a loan deficiency payment
under section 135 of the Agricultural Market Transition Act (7 U.S.C.
7235) for wheat, barley, or oats, but that elects to use acreage planted
to the wheat, barley, or oats for the grazing of livestock, the
Secretary shall make a payment to the producer under this section if the
producer enters into an agreement with the Secretary to forgo any other
harvesting of the wheat, barley, or oats on that acreage.
(b) Payment Amount.--The amount of a payment made to a producer on a
farm under this section shall be equal to the amount determined by
multiplying--
(1) the loan deficiency payment rate determined under
section 135(c) of the Agricultural Market Transition Act (7
U.S.C. 7235(c)) in effect, as of the date of the agreement, for
the county in which the farm is located; by
(2) the payment quantity determined by multiplying--
[[Page 114 STAT. 405]]
(A) the quantity of the grazed acreage on the farm
with respect to which the producer elects to forgo
harvesting of wheat, barley, or oats; and
(B) the greater of--
(i) the established yield for the crop on the
farm; or
(ii) the average county yield per harvested
acre of the crop, as determined by the Secretary.
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 135 of the Agricultural Market
Transition Act (7 U.S.C. 7235), except that the payment shall be
made not later than September 30, 2001.
(2) Availability.--The Secretary shall establish an
availability period for the payment authorized by this section
that is consistent with the availability period for wheat,
barley, and oats established by the Secretary for marketing
assistance loans authorized by subtitle C of the Agricultural
Market Transition Act (7 U.S.C. 7231 et seq.).
(d) Regulations.--The Secretary shall promulgate under section 263
such regulations as are necessary to administer the payments authorized
by this section in a fair and equitable manner with respect to producers
of wheat and feed grains that do not receive a payment under this
section.
(e) Funding.--The Secretary shall use funds of the Commodity Credit
Corporation to carry out this section.
SEC. 206. EXPANSION <<NOTE: 7 USC 1421 note.>> OF PRODUCERS ELIGIBLE FOR
LOAN DEFICIENCY PAYMENTS.
(a) Eligible Producers.--Section 135(a) of the Agricultural Market
Transition Act (7 U.S.C. 7235(a)) is amended--
(1) by striking ``to producers'' and inserting ``to--
``(1) producers'';
(2) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following:
``(2) effective only for the 2000 crop year, producers that,
although not eligible to obtain such a marketing assistance loan
under section 131, produce a contract commodity.''.
(b) Calculation.--Section 135(b)(2) of the Agricultural Market
Transition Act (7 U.S.C. 7235(b)(2)) is amended by striking ``that the
producers'' and all that follows through the period at the end and
inserting the following: ``produced by the eligible producers, excluding
any quantity for which the producers obtain a loan under section 131.''.
(c) Transition; Beneficial Interest.--Section 135 of the
Agricultural Market Transition Act (7 U.S.C. 7235) is amended by adding
at the end the following:
``(e) Transition.--A payment to a producer eligible for a payment
under subsection (a)(2) that harvested a commodity on or before the date
that is 30 days after the promulgation of the regulations implementing
subsection (a)(2) shall be determined as the date the producer lost
beneficial interest in the commodity, as determined by the Secretary.
``(f ) Beneficial Interest.--Subject to subsection (e), a producer
shall be eligible for a payment under this section only if the producer
[[Page 114 STAT. 406]]
has a beneficial interest in the commodity, as determined by the
Secretary.''.
Subtitle B--Conservation
SEC. 211. CONSERVATION <<NOTE: 16 USC 3830 note.>> ASSISTANCE.
(a) Farmland Protection.--For the purposes described in section 388
of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
3830 note; Public Law 104-127), the Secretary shall use $10,000,000 of
funds of the Commodity Credit Corporation to make payments to--
(1) any agency of any State or local government, or
federally recognized Indian tribe, including farmland protection
boards and land resource councils established under State law;
and
(2) any organization that--
(A) is organized for, and at all times since the
formation of the organization has been operated
principally for, one or more of the conservation
purposes specified in clause (i), (ii), or (iii) of
section 170(h)(4)(A) of the Internal Revenue Code of
1986;
(B) is an organization described in section
501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code;
(C) is described in section 509(a)(2) of that Code;
or
(D) is described in section 509(a)(3) of that Code
and is controlled by an organization described in
section 509(a)(2) of that Code.
(b) Soil and Water Conservation Assistance.--
(1) Establishment.--The Secretary shall use $40,000,000 of
funds of the Commodity Credit Corporation to provide financial
assistance to farmers and ranchers to--
(A) address threats to soil, water, and related
natural resources, including grazing land, wetland, and
wildlife habitat;
(B) comply with Federal and State environmental
laws; and
(C) make 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.
(2) Type of assistance.--Assistance under this subsection
may be made in the form of cost share payments or incentive
payments, as determined by the Secretary.
(3) Areas.--The Secretary shall provide assistance under
this subsection to areas that are not designated under section
1230(c) of the Food Security Act of 1985 (16 U.S.C. 3830(c)).
SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL WILDLIFE
REFUGE, OHIO.
The Secretary of the Interior, acting through the Director of the
United States Fish and Wildlife Service, shall prepare an environmental
impact statement pursuant to the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) before proceeding with any further
development of the Little Darby National Wildlife Refuge in Madison and
Union Counties, Ohio.
[[Page 114 STAT. 407]]
Subtitle C--Research
SEC. 221. CARBON CYCLE RESEARCH.
(a) In General.--Of the amount made available under section
261(a)(2), the Secretary shall use $15,000,000 to provide a grant to the
Consortium for Agricultural Soils Mitigation of Greenhouse Gases, acting
through Kansas State University, to develop, analyze, and implement,
through the land grant universities described in subsection (b), carbon
cycle research at the national, regional, and local levels.
(b) Land Grant Universities.--The land grant universities referred
to in subsection (a) are the following:
(1) Colorado State University.
(2) Iowa State University.
(3) Kansas State University.
(4) Michigan State University.
(5) Montana State University.
(6) Purdue University.
(7) Ohio State University.
(8) Texas A&M University.
(9) University of Nebraska.
(c) Use.--Land grant universities described in subsection (b) shall
use funds made available under this section--
(1) to conduct research to improve the scientific basis of
using land management practices to increase soil carbon
sequestration, including research on the use of new technologies
to increase carbon cycle effectiveness, such as biotechnology
and nanotechnology;
(2) to enter into partnerships to identify, develop, and
evaluate agricultural best practices, including partnerships
between--
(A) Federal, State, or private entities; and
(B) the Department of Agriculture;
(3) to develop necessary computer models to predict and
assess the carbon cycle;
(4) to estimate and develop mechanisms to measure carbon
levels made available as a result of--
(A) voluntary Federal conservation programs;
(B) private and Federal forests; and
(C) other land uses;
(5) to develop outreach programs, in coordination with
Extension Services, to share information on carbon cycle and
agricultural best practices that is useful to agricultural
producers; and
(6) to collaborate with the Great Plains Regional Earth
Science Application Center to develop a space-based carbon cycle
remote sensing technology program to--
(A) provide, on a near-continual basis, a real-time
and comprehensive view of vegetation conditions;
(B) assess and model agricultural carbon
sequestration; and
(C) develop commercial products.
(d) Administrative Costs.--Not more than 3 percent of the funds made
available under subsection (a) may be used by the Secretary to pay
administrative costs incurred in carrying out this section.
[[Page 114 STAT. 408]]
SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES.
(a) Assistance.--Of the amount made available under section
261(a)(2), the Secretary, acting through the Cooperative State Research,
Education, and Extension Service, shall use $3,000,000 to provide a
grant jointly to Georgetown University and North Carolina State
University to conduct research regarding the extraction and purification
of proteins from genetically altered tobacco that may be used as a
vaccine for cervical cancer.
(b) Relation to Other Law.--The Secretary may make the grant
described in subsection (a) notwithstanding any general prohibition on
the use of appropriated funds to carry out research related to the
production, processing, or marketing of tobacco or tobacco products.
SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH MANAGEMENT.
Of the amount made available under section 261(a)(2), the Secretary
shall use $10,000,000 to provide a grant to the University of Nebraska
in Lincoln, Nebraska, for laboratories and equipment for research on
soil science and forest health and management.
SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK PRODUCTION.
Of the amount made available under section 261(a)(2), the Secretary
shall use $3,500,000 to expand current research related to technologies
for--
(1) reducing, modifying, recycling, and using waste streams
from livestock production; and
(2) eliminating associated air, water, and soil quality
problems.
SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND POULTRY
WASTE.
(a) Assistance.--Of the amount made available under section
261(a)(2), the Secretary shall use $5,000,000--
(1) to review and assess the actual or potential failure of
waste storage and handling systems used in livestock or poultry
production and the environmental damages associated with the
failure of the systems; and
(2) to study and demonstrate appropriate market-oriented
mechanisms to assist livestock producers and poultry producers
to prevent the failure of the systems and rectify environmental
damages associated with the failure of the systems.
(b) Implementation.--The <<NOTE: Grants. Contracts.>> Secretary
shall carry out this section through grants, contracts, and cooperative
agreements with livestock producers, poultry producers, associations of
such producers, and foundations supported by such producers.
SEC. 226. ETHANOL RESEARCH PILOT PLANT.
Of the amount made available under section 261(a)(2), the Secretary
shall use $14,000,000 to provide a grant to the State of Illinois to
complete the construction of a corn-based ethanol research pilot plant
(Agreement No. 59-3601-7-078) at Southern Illinois University,
Edwardsville, Illinois.
SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES.
(a) Establishment and Purpose.--The Secretary, acting through the
Agricultural Research Service, may enter into a
[[Page 114 STAT. 409]]
cooperative agreement with the National Center for Genome Resources in
Santa Fe, New Mexico, New Mexico State University, and Iowa State
University, for the establishment and operation of an institute (to be
known as the ``Bioinformatics Institute for Model Plant Species'') in
Santa Fe, New Mexico, for the purpose of enhancing the accessibility and
utility of genomic information for plant genetic research.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $3,000,000 for the purpose of establishing the Institute
under subsection (a); and
(2) such sums as may be necessary for each fiscal year to
carry out the cooperative agreement authorized by subsection
(a).
Subtitle D--Agricultural Marketing
SEC. 231. VALUE-ADDED <<NOTE: 7 USC 1621 note.>> AGRICULTURAL PRODUCT
MARKET DEVELOPMENT GRANTS.
(a) Grant Program.--
(1) Establishment and purposes.--Of the amount made
available under section 261(a)(2), $15,000,000 shall be used by
the Secretary to award competitive grants to eligible
independent producers (as determined by the Secretary) of value-
added agricultural commodities and products of agricultural
commodities to assist an eligible producer--
(A) to develop a business plan for viable marketing
opportunities for a value-added agricultural commodity
or product of an agricultural commodity; or
(B) to develop strategies for the ventures that are
intended to create marketing opportunities for the
producers.
(2) Amount of grant.--The total amount provided under this
subsection to a grant recipient may not exceed $500,000.
(3) Producer strategies.--A producer that receives a grant
under paragraph (1) shall use the grant--
(A) to develop a business plan or perform a
feasibility study to establish a viable marketing
opportunity for a value-added agricultural commodity or
product of an agricultural commodity; or
(B) to provide capital to establish alliances or
business ventures that allow the producer to better
compete in domestic or international markets.
(b) Agricultural Marketing Resource Center Pilot Project.--
(1) Establishment.--Notwithstanding the limitation on grants
in subsection (a)(2), the Secretary shall not use more than
$5,000,000 of the funds made available under subsection (a) to
establish a pilot project (to be known as the ``Agricultural
Marketing Resource Center'') at an eligible institution
described in paragraph (2) that will--
(A) develop a resource center with electronic
capabilities to coordinate and provide to independent
producers and processors (as determined by the
Secretary) of value-
[[Page 114 STAT. 410]]
added agricultural commodities and products of
agricultural commodities information regarding research,
business, legal, financial, or logistical assistance;
and
(B) develop a strategy to establish a nationwide
market information and coordination system.
(2) Eligible institution.--To be eligible to receive funding
to establish the Agricultural Marketing Resource Center, an
applicant shall demonstrate to the Secretary--
(A) the capacity and technical expertise to provide
the services described in paragraph (1)(A);
(B) an established plan outlining support of the
applicant in the agricultural community; and
(C) the availability of resources (in cash or in
kind) of definite value to sustain the Center following
establishment.
(c) Matching Funds.--A recipient of funds under subsection (a) or
(b) shall contribute an amount of non-Federal funds that is at least
equal to the amount of Federal funds received.
(d) Limitation.--Funds provided under this section may not be used
for--
(1) planning, repair, rehabilitation, acquisition, or
construction of a building or facility (including a processing
facility); or
(2) the purchase, rental, or installation of fixed
equipment.
Subtitle E--Nutrition Programs
SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR SCHOOL LUNCH
REQUIREMENTS.
(a) Fiscal Year 2000.--Notwithstanding any other provision of law,
in addition to any assistance provided under any other provision of law,
of the amount made available under section 261(a)(1), the Secretary
shall use $34,000,000 in fiscal year 2000 to purchase commodities of the
type provided under section 6 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1755) for distribution to schools participating in
the school lunch program established under that Act (42 U.S.C. 1751 et
seq.).
(b) Fiscal Year 2001.--Section 6(e)(1)(B) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by
striking ``2000'' and inserting ``2001''.
(c) Additional Commodities in Fiscal Year 2001.--Notwithstanding any
other provision of law, in addition to any assistance provided under any
other provision of law (including the amendment made by subsection (b)),
of the amount made available under section 261(a)(2), the Secretary
shall use $21,000,000 in fiscal year 2001 to purchase commodities of the
type provided under section 6 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1755) for distribution to schools participating in
the school lunch program established under that Act (42 U.S.C. 1751 et
seq.).
(d) Distribution to Schools.--The commodities purchased under
subsections (a) and (c) shall, to the maximum extent practicable, be
distributed in the same manner as commodities are distributed under
section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C.
1755).
[[Page 114 STAT. 411]]
SEC. 242. SCHOOL LUNCH DATA.
(a) Limited Waiver of Confidentiality Requirement.--
(1) In general.--Section 9(b)(2)(C)(iii) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii))
is amended--
(A) in subclause (II), by striking ``and'' at the
end;
(B) in subclause (III), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(IV) a person directly connected
with the administration of the State
medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et
seq.) or the State children's health
insurance program under title XXI of
that Act (42 U.S.C. 1397aa et seq.)
solely for the purpose of identifying
children eligible for benefits under,
and enrolling children in, such
programs, except that this subclause
shall apply only to the extent that the
State and the school food authority so
elect.''.
(2) Certification and notification.--Section 9(b)(2)(C) of
the Richard B. Russell National School Lunch Act (42 U.S.C.
1758(b)(2)(C)) is amended by adding at the end the following:
``(vi) Requirements for waiver of
confidentiality.--A State that elects to exercise
the option described in clause (iii)(IV) shall
ensure that any school food authority acting in
accordance with that option--
``(I) has a written agreement with
the State or local agency or agencies
administering health insurance programs
for children under titles XIX and XXI of
the Social Security Act (42 U.S.C. 1396
et seq. and 1397aa et seq.) that
requires the health agencies to use the
information obtained under clause (iii)
to seek to enroll children in those
health insurance programs; and
``(II)(aa) notifies each household,
the information of which shall be
disclosed under clause (iii), that the
information disclosed will be used only
to enroll children in health programs
referred to in clause (iii)(IV); and
``(bb) provides each parent or
guardian of a child in the household
with an opportunity to elect not to have
the information disclosed.
``(vii) Use of disclosed information.--A
person to which information is disclosed under
clause (iii)(IV) shall use or disclose the
information only as necessary for the purpose of
enrolling children in health programs referred to
in clause (iii)(IV).''.
(b) Demonstration Project.--
(1) In general.--Section 17 of the Child Nutrition Act of
1966 (42 U.S.C. 1786) is amended by adding at the end the
following:
``(r) Demonstration Project Relating to Use of the WIC Program for
Identification and Enrollment of Children in Certain Health Programs.--
``(1) In general.--In accordance with paragraph (2), the
Secretary shall establish a demonstration project in at least
[[Page 114 STAT. 412]]
20 local agencies in one State under which costs of nutrition
services and administration (as defined in subsection (b)(4))
shall include the costs of identification of children eligible
for benefits under, and the provision of enrollment assistance
for children in--
``(A) the State medicaid program under title XIX of
the Social Security Act (42 U.S.C. 1396 et seq.); and
``(B) the State children's health insurance program
under title XXI of that Act (42 U.S.C. 1397aa et seq.).
``(2) State-related requirements.--The State in which a
demonstration project is established under paragraph (1)--
``(A) shall operate not fewer than 20 pilot site
locations;
``(B) as of the date of establishment of the
demonstration project--
``(i) with respect to the programs referred to
in subparagraphs (A) and (B) of paragraph (1)--
``(I) shall have in use a simplified
application form with a length of not
more than two pages;
``(II) shall accept mail-in
applications; and
``(III) shall permit enrollment in
the program in a variety of locations;
and
``(ii) shall have served as an original pilot
site for the program under this section; and
``(C) as of December 31, 1998, shall have had--
``(i) an infant mortality rate that is above
the national average; and
``(ii) an overall rate of age-appropriate
immunizations against vaccine-preventable diseases
that is below 80 percent.
``(3) Termination of authority.--The authority provided by
this subsection terminates September 30, 2003.''.
(2) Technical amendments.--Section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786) is amended--
(A) in subsection (b)(4), by striking ``(4)'' and
all that follows through ``means'' and inserting ``(4)
`Costs of nutrition services and administration' or
`nutrition services and administration' means''; and
(B) in subsection (h)(1)(A), by striking ``costs
incurred by State and local agencies for nutrition
services and administration'' and inserting ``costs of
nutrition services and administration incurred by State
and local agencies''.
(3) Grant for demonstration project.--Section 12 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1760) is
amended by adding at the end the following:
``(p) Grant for Demonstration Project.--
``(1) Use of funds for wic demonstration project.--
``(A) In general.--The Secretary shall make grants
of funds under this subsection to a State--
``(i) for purposes that include carrying out
the demonstration project under section 17(r) of
the Child Nutrition Act of 1966 (42 U.S.C.
1786(r)); and
``(ii) for the purpose described in clause
(i), in amounts not to exceed $10,000 for each
fiscal year for each site in the State.
``(B) Apportionment.--A State that receives a grant
under subparagraph (A) shall apportion the funds
received
[[Page 114 STAT. 413]]
to ensure that each site in the State receives not more
than $10,000 for any fiscal year.
``(2) Evaluations of demonstration project.--The Secretary
shall conduct an evaluation of the demonstration project and
grant program for identification and enrollment efforts funded
under this subsection that include a determination of--
``(A) the number of children enrolled as a result of
the enactment of this subsection;
``(B) the income levels of the families of enrolled
children;
``(C) the cost of identification and enrollment
assistance services provided under the project or grant
program;
``(D) the effect on the caseloads of local agencies
that carry out the special supplemental nutrition
program for woman, infants, and children established
under section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786); and
``(E) such other factors as the Secretary determines
to be appropriate.
``(3) Funding.--
``(A) In general.--Out of any moneys in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall provide to the Secretary to carry out
this subsection $1,000,000 for the period of fiscal
years 2001 through 2004, to remain available until
expended but not later than September 30, 2004.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive the funds and shall accept the
funds provided under subparagraph (A), without further
appropriation.''.
(c) Effective Date.--The <<NOTE: 42 USC 1758 note.>> amendments made
by this section take effect on October 1, 2000.
SEC. 243. CHILD AND ADULT CARE FOOD PROGRAM INTEGRITY.
(a) Definition of Institution; Exclusion of Seriously Deficient
Institutions.--Section 17(a) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766(a)) is amended--
(1) by striking ``(a) The Secretary'' and inserting the
following:
``(a) Grant Authority and Institution Eligibility.--
``(1) Grant authority.--The Secretary'';
(2) by striking the second and third sentences and inserting
the following:
``(2) Definition of institution.--In this section, the term
`institution' means--
``(A) any public or private nonprofit organization
providing nonresidential child care or day care outside
school hours for school children, including any child
care center, settlement house, recreational center, Head
Start center, and institution providing child care
facilities for children with disabilities;
``(B) any other private organization providing
nonresidential child care or day care outside school
hours for school children for which the organization
receives compensation from amounts granted to the States
under title XX of the Social Security Act (42 U.S.C.
1397 et seq.) (but only if the organization receives
compensation under
[[Page 114 STAT. 414]]
that title for at least 25 percent of its enrolled
children or 25 percent of its licensed capacity,
whichever is less);
``(C) any public or private nonprofit organization
acting as a sponsoring organization for one or more of
the organizations described in subparagraph (A) or (B)
or for an adult day care center (as defined in
subsection (o)(2));
``(D) any other private organization acting as a
sponsoring organization for, and that is part of the
same legal entity as, one or more organizations that
are--
``(i) described in subparagraph (B); or
``(ii) proprietary title XIX or title XX
centers (as defined in subsection (o)(2));
``(E) any public or private nonprofit organization
acting as a sponsoring organization for one or more
family or group day care homes; and
``(F) any emergency shelter (as defined in
subsection (t)).'';
(3) by striking ``Except as provided in subsection (r),''
and inserting the following:
``(3) Age limit.--Except as provided in subsection (r),'';
(4) by striking ``The Secretary may establish separate
guidelines'' and inserting the following:
``(4) Additional guidelines.--The Secretary may establish
separate guidelines'';
(5) by striking ``For purposes of determining'' and all that
follows through ``an institution'' and inserting the following:
``(5) Licensing.--In order to be eligible, an institution'';
and
(6) by striking ``standards; and'' and inserting
``standards.'';
(7) by striking ``(2) no institution'' and inserting the
following:
``(6) Eligibility criteria.--No institution''; and
(8) in paragraph (6) (as so designated)--
(A) in subparagraph (B), by inserting ``, or has not
been determined to be ineligible to participate in any
other publicly funded program by reason of violation of
the requirements of the program'' before ``, for a
period'';
(B) in subparagraph (C)--
(i) by inserting ``(i)'' after ``(C)''; and
(ii) by adding at the end the following:
``(ii) in the case of a sponsoring organization, the
organization shall employ an appropriate number of
monitoring personnel based on the number and
characteristics of child care centers and family or
group day care homes sponsored by the organization, as
approved by the State (in accordance with regulations
promulgated by the Secretary), to ensure effective
oversight of the operations of the child care centers
and family or group day care homes; and'';
(C) in subparagraph (D), by striking the period and
inserting a semicolon; and
(D) by adding at the end the following:
``(E) in the case of a sponsoring organization, the
organization has in effect a policy that restricts other
employment by employees that interferes with the
responsibilities and duties of the employees of the
organization with respect to the program; and
[[Page 114 STAT. 415]]
``(F) in the case of a sponsoring organization that
applies for initial participation in the program on or
after the date of the enactment of this subparagraph and
that operates in a State that requires such institutions
to be bonded under State law, regulation, or policy, the
institution is bonded in accordance with such law,
regulation, or policy.''.
(b) Institution Approval and Applications.--
(1) In general.--Section 17(d) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766(d)) is amended by
striking the subsection designation and all that follows through
the end of paragraph (1) and inserting the following:
``(d) Institution Approval and Applications.--
``(1) Institution approval.--
``(A) Administrative capability.--Subject to
subparagraph (B) and except as provided in subparagraph
(C), the State agency shall approve an institution that
meets the requirements of this section for participation
in the child and adult care food program if the State
agency determines that the institution--
``(i) is financially viable;
``(ii) is administratively capable of
operating the program (including whether the
sponsoring organization has business experience
and management plans appropriate to operate the
program) described in the application of the
institution; and
``(iii) has internal controls in effect to
ensure program accountability.
``(B) Approval of private institutions.--
``(i) In general.--In addition to the
requirements established by subparagraph (A) and
subject to clause (ii), the State agency shall
approve a private institution that meets the
requirements of this section for participation in
the child and adult care food program only if--
``(I) the State agency conducts a
satisfactory visit to the institution
before approving the participation of
the institution in the program; and
``(II) the institution--
``(aa) has tax exempt status
under the Internal Revenue Code
of 1986;
``(bb) is operating a
Federal program requiring
nonprofit status to participate
in the program; or
``(cc) is described in
subsection (a)(2)(B).
``(ii) Exception for family or group day care
homes.--Clause (i) shall not apply to a family or
group day care home.
``(C) Exception for certain sponsoring
organizations.--
``(i) In general.--The State agency may
approve an eligible institution acting as a
sponsoring organization for one or more family or
group day care homes or centers that, at the time
of application, is not participating in the child
and adult care food program only if the State
agency determines that--
[[Page 114 STAT. 416]]
``(I) the institution meets the
requirements established by
subparagraphs (A) and (B); and
``(II) the participation of the
institution will help to ensure the
delivery of benefits to otherwise
unserved family or group day care homes
or centers or to unserved children in an
area.
``(ii) Criteria for selection.--The State
agency shall establish criteria for approving an
eligible institution acting as a sponsoring
organization for one or more family or group day
care homes or centers that, at the time of
application, is not participating in the child and
adult care food program for the purpose of
determining if the participation of the
institution will help ensure the delivery of
benefits to otherwise unserved family or group day
care homes or centers or to unserved children in
an area.
``(D) Notification <<NOTE: Deadline.>> to
applicants.--Not later than 30 days after the date on
which an applicant institution files a completed
application with the State agency, the State agency
shall notify the applicant institution whether the
institution has been approved or disapproved to
participate in the child and adult care food program.''.
(2) Site visits.--Section 17(d)(2)(A) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(A)) is
amended--
(A) in clause (i), by striking ``; and'' and
inserting a semicolon;
(B) by redesignating clause (ii) as clause (iii);
and
(C) by inserting after clause (i) the following:
``(ii)(I) requires periodic unannounced site visits at not
less than 3-year intervals to sponsored child care centers and
family or group day care homes to identify and prevent
management deficiencies and fraud and abuse under the program;
``(II) requires at least one scheduled site visit each year
to sponsored child care centers and family or group day care
homes to identify and prevent management deficiencies and fraud
and abuse under the program and to improve program operations;
and
``(III) requires at least one scheduled site visit at not
less than 3-year intervals to sponsoring organizations and
nonsponsored child care centers to identify and prevent
management deficiencies and fraud and abuse under the program
and to improve program operations; and''.
(3) Conforming amendment.--Section 17(d)(2)(B) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1766(d)(2)(B)) is amended by striking ``subsection (a)(1)'' and
inserting ``subsection (a)(5)''.
(4) Program information.--
(A) In general.--Section 17(d) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(d)) is
amended by adding at the end the following:
``(3) Program information.--
``(A) In general.--On enrollment of a child in a
sponsored child care center or family or group day care
home participating in the program, the center or home
(or its sponsoring organization) shall provide to the
child's parents or guardians--
[[Page 114 STAT. 417]]
``(i) information that describes the program
and its benefits; and
``(ii) the name and telephone number of the
sponsoring organization of the center or home and
the State agency involved in the operation of the
program.
``(B) Form.--The information described in
subparagraph (A) shall be in a form and, to the maximum
extent practicable, language easily understandable by
the child's parents or guardians.''.
(B) Effective date.--In <<NOTE: Deadline. 42 USC
1766 note.>> the case of a child that is enrolled in a
sponsored child care center or family or group day care
home participating in the child and adult care food
program under section 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766) before the
date of the enactment of this Act, the center or home
shall provide information to the child's parents or
guardians pursuant to section 17(d)(3) of that Act, as
added by subparagraph (A), not later than 90 days after
the date of the enactment of this Act.
(5) Allowable administrative expenses for sponsoring
organizations.--Section 17(d) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(d)), as amended by paragraph
(4)(A), is amended by adding at the end the following:
``(4) Allowable administrative expenses for sponsoring
organizations.--In consultation with State agencies and
sponsoring organizations, the Secretary shall develop, and
provide for the dissemination to State agencies and sponsoring
organizations of, a list of allowable reimbursable
administrative expenses for sponsoring organizations under the
program.''.
(c) Termination or Suspension of Participating Organizations.--
Section 17(d) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766(d)), as amended by subsection (b)(5), is amended by adding
at the end the following:
``(5) Termination or suspension of participating
organizations.--
``(A) In <<NOTE: Procedures.>> general.--The
Secretary shall establish procedures for the termination
of participation by institutions and family or group day
care homes under the program.
``(B) Standards.--Procedures established pursuant to
subparagraph (A) shall include standards for terminating
the participation of an institution or family or group
day care home that--
``(i) engages in unlawful practices, falsifies
information provided to the State agency, or
conceals a criminal background; or
``(ii) substantially fails to fulfill the
terms of its agreement with the State agency.
``(C) Corrective action.--Procedures established
pursuant to subparagraph (A)--
``(i) shall require an entity described in
subparagraph (B) to undertake corrective action;
and
``(ii) may require the immediate suspension of
operation of the program by an entity described in
subparagraph (B), without the opportunity for
corrective action, if the State agency determines
that there is imminent threat to the health or
safety of a participant at the
[[Page 114 STAT. 418]]
entity or the entity engages in any activity that
poses a threat to public health or safety.
``(D) Hearing.--An institution or family or group
day care home shall be provided a fair hearing in
accordance with subsection (e)(1) prior to any
determination to terminate participation by the
institution or family or group day care home under the
program.
``(E) List <<NOTE: Records.>> of disqualified
institutions and individuals.--
``(i) In general.--The Secretary shall
maintain a list of institutions, sponsored family
or group day care homes, and individuals that have
been terminated or otherwise disqualified from
participation in the program.
``(ii) Availability.--The Secretary shall make
the list available to State agencies for use in
approving or renewing applications by
institutions, sponsored family or group day care
homes, and individuals for participation in the
program.''.
(d) Recovery of Amounts From Institutions.--Section 17(f )(1) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(f )(1)) is
amended--
(1) by striking ``(f )(1) Funds paid'' and inserting the
following:
``(f ) State Disbursements to Institutions.--
``(1) In general.--
``(A) Requirement.--Funds paid''; and
(2) by adding at the end the following:
``(B) Fraud or abuse.--
``(i) In general.--The State may recover funds
disbursed under subparagraph (A) to an institution
if the State determines that the institution has
engaged in fraud or abuse with respect to the
program or has submitted an invalid claim for
reimbursement.
``(ii) Payment.--Amounts recovered under
clause (i)--
``(I) may be paid by the institution
to the State over a period of one or
more years; and
``(II) shall not be paid from funds
used to provide meals and supplements.
``(iii) Hearing.--An institution shall be
provided a fair hearing in accordance with
subsection (e)(1) prior to any determination to
recover funds under this subparagraph.''.
(e) Limitation on Administrative Expenses for Certain Sponsoring
Organizations.--Section 17(f )(2) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(f )(2)) is amended by adding at the end
the following:
``(C) Limitation on administrative expenses for
certain sponsoring organizations.--
``(i) In general.--Except as provided in
clause (ii), a sponsoring organization of a day
care center may reserve not more than 15 percent
of the funds provided under paragraph (1) for the
administrative expenses of the organization.
``(ii) Waiver.--A State may waive the
requirement in clause (i) with respect to a
sponsoring organization
[[Page 114 STAT. 419]]
if the organization provides justification to the
State that the organization requires funds in
excess of 15 percent of the funds provided under
paragraph (1) to pay the administrative expenses
of the organization.''.
(f ) Limitations on Ability of Family or Group Day Care Homes to
Transfer Sponsoring Organizations.--Section 17(f )(3) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(f )(3)) is amended by
striking subparagraph (D) and inserting the following:
``(D) Limitations on ability of family or group day
care homes to transfer sponsoring organizations.--
``(i) In general.--Subject to clause (ii), a
State agency shall limit the ability of a family
or group day care home to transfer from a
sponsoring organization to another sponsoring
organization more frequently than once a year.
``(ii) Good cause.--The State agency may
permit or require a family or group day care home
to transfer from a sponsoring organization to
another sponsoring organization more frequently
than once a year for good cause (as determined by
the State agency), including circumstances in
which the sponsoring organization of the family or
group day care home ceases to participate in the
child and adult care food program.''.
(g) State-wide Demonstration Projects Involving Private For-Profit
Organizations That Provide Nonresidential Day Care Services.--
(1) In general.--Section 17(p) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766(p)) is amended--
(A) in the first sentence of paragraph (1), by
striking ``2 statewide demonstration projects'' and
inserting ``State-wide demonstration projects in three
States''; and
(B) in paragraph (3)--
(i) by inserting ``in'' after ``subsection'';
(ii) in subparagraph (A), by striking ``and''
at the end;
(iii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) one other State--
``(i) with fewer than 60,000 children below 5 years
of age;
``(ii) that serves more than the national average
proportion of children potentially eligible for
assistance provided under the Child Care and Development
Fund (as indicated in data published by the Department
of Health and Human Services in October 1999);
``(iii) that exempts all families from cost sharing
requirements under programs funded by the Child Care and
Development Fund; and
``(iv) in which State spending represents more than
50 percent of total expenditures made under the Child
Care and Development Fund.''.
(2) Effective date.--The <<NOTE: 42 USC 1766
note.>> Secretary may carry out demonstration projects in the
State described in section 17(p)(3)(C) of the Richard B. Russell
National School Lunch Act, as added
[[Page 114 STAT. 420]]
by paragraph (1)(B)(iv), beginning not earlier than October 1,
2001.
(h) Technical and Training Assistance for Identification and
Prevention of Fraud and Abuse.--Section 17(q) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766(q)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) Technical and training assistance for identification
and prevention of fraud and abuse.--As part of training and
technical assistance provided under paragraph (1), the Secretary
shall provide training on a continuous basis to State agencies,
and shall ensure that such training is provided to sponsoring
organizations, for the identification and prevention of fraud
and abuse under the program and to improve management of the
program.''.
(i) Program for At-Risk School Children.--Section 17(r) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)) is
amended--
(1) in paragraph (2), by inserting ``meals or'' before
``supplements'';
(2) in paragraph (4)--
(A) in the heading, by striking ``Supplement'' and
inserting ``Meal and supplement'';
(B) in subparagraph (A)--
(i) by striking ``only for'' and all that
follows through ``(i) a supplement'' and inserting
``only for one meal per child per day and one
supplement per child per day'';
(ii) by striking ``; and'' and inserting a
period; and
(iii) by striking clause (ii);
(C) in subparagraph (B), by striking ``Rate.--A
supplement'' and inserting the following: ``Rates.--
``(i) Meals.--A meal shall be reimbursed under
this subsection at the rate established for free
meals under subsection (c).
``(ii) Supplements.--A supplement''; and
(D) in subparagraph (C), by inserting ``meal or''
before ``supplement''; and
(3) by adding at the end the following:
``(5) Limitation.--The Secretary shall limit reimbursement
under this subsection for meals served under a program to
institutions located in six States, of which four States shall
be Pennsylvania, Missouri, Delaware, and Michigan and two States
shall be approved by the Secretary through a competitive
application process.''.
( j) Withholding of Funds for Failure to Provide Sufficient
Training, Technical Assistance, and Monitoring.--Section 7(a)(9)(A) of
the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(9)(A)) is amended by
inserting after ``the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.)'' the following: ``(including any requirement to
provide sufficient training, technical assistance, and monitoring of the
child and adult care food program under section 17 of that Act (42
U.S.C. 1766))''.
[[Page 114 STAT. 421]]
SEC. 244. ADJUSTMENTS TO WIC PROGRAM.
(a) Definition.--Section 17(b) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(b)) is amended by adding at the end the following:
``(21) Remote indian or native village.--The term `remote
Indian or Native village' means an Indian or Native village
that--
``(A) is located in a rural area;
``(B) has a population of less than 5,000
inhabitants; and
``(C) is not accessible year-around by means of a
public road (as defined in section 101 of title 23,
United States Code).''.
(b) Cost-of-Living Allowances for Members of Uniformed Services.--
Section 17(d)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(2)(B)) is amended--
(1) by striking ``income any'' and inserting ``income--
``(i) any'';
(2) by striking ``quarters'' and inserting ``housing'';
(3) by striking the period at the end and inserting ``;
and''; and
(4) by adding at the end the following:
``(ii) any cost-of-living allowance provided under section
405 of title 37, United States Code, to a member of a uniformed
service who is on duty outside the continental United States.''.
(c) Proof of Residency.--Section 17(d)(3) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the end the
following:
``(F) Proof of residency.--An individual residing in
a remote Indian or Native village or an individual
served by an Indian tribal organization and residing on
a reservation or pueblo may, under standards established
by the Secretary, establish proof of residency under
this section by providing to the State agency the
mailing address of the individual and the name of the
remote Indian or Native village.''.
(d) Adjustment of Grant.--Section 17(h)(1)(B) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(h)(1)(B)) is amended--
(1) in clause (i), by striking ``the fiscal year 1987'' and
inserting ``the preceding fiscal year''; and
(2) in clause (ii)--
(A) by striking ``the fiscal year 1987'' and
inserting ``the preceding fiscal year''; and
(B) by striking subclause (I) and inserting the
following:
``(I) the value of the index for State and local government
purchases, as published by the Bureau of Economic Analysis of
the Department of Commerce, for the 12-month period ending June
30 of the second preceding fiscal year; and''.
(e) Allocation of Funds.--Section 17(h)(5) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(h)(5)) is amended by adding at the end the
following:
``(D) Remote indian or native villages.--For
noncontiguous States containing a significant number of
remote Indian or Native villages, a State agency may
convert amounts allocated for food benefits for a fiscal
year to the costs of nutrition services and
administration to
[[Page 114 STAT. 422]]
the extent that the conversion is necessary to cover
expenditures incurred in providing services (including
the full cost of air transportation and other
transportation) to remote Indian or Native villages and
to provide breastfeeding support in remote Indian or
Native villages.''.
(f ) Effective <<NOTE: 42 USC 1786 note.>> Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section take effect on the date of the
enactment of this Act.
(2) Allocation of funds.--The amendments made by subsections
(d) and (e) take effect on October 1, 2000.
Subtitle F--Other Programs
SEC. 251. AUTHORITY <<NOTE: Texas.>> TO PROVIDE LOAN IN CONNECTION WITH
BOLL WEEVIL ERADICATION.
(a) Loan Authority.--Notwithstanding any other provision of law, the
Secretary, acting through the Farm Service Agency, shall use $10,000,000
of funds of the Commodity Credit Corporation to make a loan to the Texas
Boll Weevil Eradication Foundation, Inc., to enable the Foundation to
retire certain debt associated with boll weevil eradication zones which
have ended their participation, in whole or in part, in the federally
funded boll weevil eradication program.
(b) Repayment Terms and Conditions.--The loan provided under
subsection (a) shall be subject to the following terms and conditions:
(1) Repayment shall be scheduled to begin on January 1 of
the year following the first year during which the boll weevil
eradication zone, or any part thereof, responsible for the debt
retired using the loan resumes participation in any federally
funded boll weevil eradication program.
(2) No interest shall be charged.
(c) Limitation.--The cost of the loan made under this section shall
not exceed the loan subsidy sufficient to make the loan.
SEC. 252. ANIMAL DISEASE CONTROL.
(a) Pseudorabies.--Of the amount made available under section
261(a)(2), the Secretary shall use $7,000,000 to cover pseudorabies
vaccination costs incurred by pork producers.
(b) Bovine Tuberculosis.--Of the amount made available under section
261(a)(2), the Secretary shall use $6,000,000 to respond to bovine
tuberculosis in the State of Michigan. The funds shall be available for
the following purposes:
(1) The surveillance and testing of cattle and wildlife.
(2) Research regarding bovine tuberculosis, to be conducted
by the Agricultural Research Service and Michigan State
University.
(3) The provision of increased indemnity payments to
encourage the depopulation of infected herds.
(4) The performance of diagnostic testing and treatment of
humans affected by bovine tuberculosis.
(5) Slaughter surveillance.
(6) The control and prevention of the exposure of livestock
to infected wildlife, including the installation of fencing to
minimize contact between livestock and wildlife.
[[Page 114 STAT. 423]]
(7) The distribution of information regarding the risk and
control of bovine tuberculosis, including technological
improvements to enhance communication.
SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS.
(a) In General.--Of the amount made available under section
261(a)(2), the Secretary shall use $35,000,000, plus $200,000 for
payment of administrative costs, to make no-interest loans to producers
of the 1999 crop of grass, forage, vegetable, and sorghum seed that have
not received payments from AgriBiotech for the seed as a result of
bankruptcy proceedings involving AgriBiotech (referred to in this
section as the ``bankruptcy proceedings'').
(b) Loans.--
(1) In general.--The amount of the loan made to a seed
producer under this section shall be not more than 65 percent of
the amount owed by AgriBiotech to the seed producer for the 1999
seed crop, as determined by the Secretary.
(2) Eligibility.--To be eligible for a loan under this
section, the claim of a seed producer in the bankruptcy
proceedings must have arisen from a contract to grow seeds in
the United States.
(3) Control.--In determining the amount owed by AgriBiotech
to a seed producer under paragraph (1), the Secretary shall
consider whether the seed producer has relinquished control of
the seed to AgriBiotech or has the seed in inventory waiting to
be sold.
(4) Security.--A loan to a seed producer under this section
shall be secured in part by the claim of the seed producer in
the bankruptcy proceedings.
(5) Repayment.--Each seed producer shall repay to the
Secretary, for deposit in the Treasury, the amount of the loan
made to the seed producer on the earlier of--
(A) the date of settlement of, completion of, or
final distribution of assets in the bankruptcy
proceedings involving AgriBiotech; or
(B) the date that is 18 months after the date on
which the loan was made to the seed producer.
(c) Additional Terms.--
(1) Shortfall in amount received from bankruptcy
proceedings.--If the amount that the seed producer receives as a
result of the proceedings described in subsection (b)(5)(A) is
less than the amount of the loan made to the seed producer under
subsection (b)(1), the seed producer shall be eligible to have
the balance of the loan converted, but not refinanced, to a loan
that has the same terms and conditions as an operating loan
under subtitle B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1941 et seq.).
(2) Lengthy bankruptcy proceedings.--If a seed producer is
required to repay a loan under subsection (b)(5)(B), the seed
producer shall be eligible to have the balance of the loan
converted, but not refinanced, to a loan that has the same terms
and conditions as an operating loan under subtitle B of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et
seq.).
(d) Limitation.--The cost of all loans made under this section shall
not exceed $15,000,000.
[[Page 114 STAT. 424]]
SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CERTAIN OFFICES.
(a) Suspension.--During the period beginning on the date of the
enactment of this Act and ending on June 1, 2001, the Secretary may not
combine or take any action to combine, at the State level, offices of
the agencies specified in subsection (b) unless the offices are located
in the same county as of the date of the enactment of this Act.
(b) Covered Offices.--Subsection (a) applies to an office of any of
the following agencies:
(1) The Farm Service Agency.
(2) The Natural Resources Conservation Service.
(3) The Rural Utilities Service.
(4) The Rural Housing Service.
(5) The Rural Business-Cooperative Service.
(c) Report.--Not later <<NOTE: Deadline. 7 USC 1941 note.>> than
April 1, 2001, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report describing
any proposed combination of offices specified in subsection (b) that
includes a certification that the proposed combination would result in
the lowest cost to the Federal Government over the long term.
SEC. 255. FARM OPERATING LOAN ELIGIBILITY.
During the <<NOTE: Effective date. Termination date.>> period
beginning on the date of the enactment of this Act and ending on
December 31, 2002--
(1) sections 311(c) and 319 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941(c), 1949) shall have no
force or effect; and
(2) in making direct loans under subtitle B of that Act (7
U.S.C. 1941 et seq.), the Secretary shall give priority to 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.
SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
Section 306D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926d) is amended by striking subsection (d) and inserting the
following:
``(d) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section $30,000,000 for each of fiscal years
2001 and 2002.
``(2) Training and technical assistance.--Not more than 2
percent of the amount made available under paragraph (1) for a
fiscal year may be used by the State of Alaska for training and
technical assistance programs relating to the operation and
management of water and waste disposal services in rural and
Native villages.
``(3) Availability.--Funds appropriated pursuant to the
authorization of appropriations in paragraph (1) shall be
available until expended.''.
SEC. 257. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.
(a) Definition <<NOTE: 7 USC 1421 note.>> of Covered Land.--In this
section:
(1) In general.--The term ``covered land'' means land that--
[[Page 114 STAT. 425]]
(A) was unusable for agricultural production during
the 2000 crop year as the result of flooding;
(B) was used for agricultural production during at
least one of the 1992 through 1999 crop years;
(C) is a contiguous parcel of land of at least 1
acre; and
(D) is located in a county in which producers were
eligible for assistance under the 1998 Flood
Compensation Program established under part 1439 of
title 7, Code of Federal Regulations.
(2) Exclusions.--The term ``covered land'' excludes any land
for which a producer is insured, enrolled, or assisted during
the 2000 crop year under--
(A) a policy or plan of insurance authorized under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
(B) the noninsured crop assistance program operated
under section 196 of the Agricultural Market Transition
Act (7 U.S.C. 7333);
(C) any crop disaster program established for the
2000 crop year;
(D) the conservation reserve program established
under subchapter B of chapter 1 of subtitle D of the
Food Security Act of 1985 (16 U.S.C. 3831 et seq.);
(E) the wetlands reserve program established under
subchapter C of chapter 1 of subtitle D of the Food
Security Act of 1985 (16 U.S.C. 3837 et seq.);
(F) any emergency watershed protection program or
Federal easement program that prohibits crop production
or grazing; or
(G) any other Federal or State water storage
program, as determined by the Secretary.
(b) Compensation.--The <<NOTE: 7 USC 1421 note.>> Secretary shall
use not more than $24,000,000 of funds of the Commodity Credit
Corporation to compensate producers with covered land described with
respect to losses from long-term flooding.
(c) Payment Rate.--The <<NOTE: 7 USC 1421 note.>> payment rate for
compensation provided to a producer under this section shall equal the
average county cash rental rate per acre established by the National
Agricultural Statistics Service for the 2000 crop year.
(d) Payment <<NOTE: 7 USC 1421 note.>> Limitation.--The total amount
of payments made to a person (as defined in section 1001(5) of the Food
Security Act (7 U.S.C. 1308(5))) under this section may not exceed
$40,000.
(e) Conforming Amendment.--H.R. 3425 of the 106th Congress (as
enacted into law by section 1000(a)(5) of Public Law 106-113 (113 Stat.
1535) and included as Appendix E of that Public Law (113 Stat. 1501A-
289)) is amended in section 207 (113 Stat. 1501A-294) by inserting ``or
Lake'' after ``Harney''.
SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA.
(a) Requirement.--Subject to subsection (b), as soon as practicable
after the date of the enactment of this Act, with respect to land and
property described in the Flood Mitigation Study and Project
Implementation Plan for the Missouri River near Pierre, South Dakota,
prepared by the Omaha District Corps of Engineers, dated August 12,
1999, the Secretary of the Army shall--
(1) acquire the land and property from willing sellers; and
[[Page 114 STAT. 426]]
(2)(A) floodproof the land;
(B) relocate individuals located on the land;
(C) improve infrastructure on the land; or
(D) take other measures determined by the Secretary.
(b) Releases.--
(1) In general.--The Secretary shall not proceed with full
wintertime Oahe Powerplant releases until the Secretary amends
the economic analysis in effect on the date of the enactment of
this Act to include an assumption that the Federal Government is
responsible for mitigating any existing ground water flooding to
the land and property described in subsection (a).
(2) Reduction.--To the extent the Secretary identifies
benefits of mitigating any existing ground water flooding, full
wintertime Oahe Powerplant releases shall be reduced consistent
with the economic analysis described in paragraph (1).
(3) Minimum level.--This subsection shall not permit Oahe
Powerplant releases to be reduced below existing operational
levels.
SEC. 259. <<NOTE: 7 USC 1421 note.>> RESTORATION OF ELIGIBILITY FOR CROP
LOSS ASSISTANCE.
(a) Effect of Change in Legal Structure.--In the case of an
individual or entity that was not eligible for a payment pursuant to
subsection (c) of section 1102 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
1999 (as contained in section 101(a) of division A of Public Law 105-
277; 7 U.S.C. 1421 note), solely because the individual or entity
changed the legal structure of the individual's or entity's farming
operation, the individual or entity shall be eligible for the payment
the individual or entity would have received pursuant to that subsection
had the individual or entity not changed the legal structure, less the
amount of any payment received by the individual or entity pursuant to
subsection (b) of that section.
(b) Multiple Farming Operations.--
(1) Eligible individuals.--In the case of an individual not
described in subsection (a) that farmed acreage as a producer as
a part of more than one farming operation, none of which
received a payment pursuant to subsection (c) of section 1102 of
the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999,
the individual shall be eligible for a payment pursuant to that
subsection for losses that the Secretary determines would have
been eligible for compensation with respect to that acreage
based on the individual's interest in the production from that
acreage.
(2) Reduction.--A payment made pursuant to paragraph (1) to
an individual shall be reduced by the amount of a payment made
pursuant to subsection (b) of that section 1102 attributed
directly or indirectly to the individual with respect to the
acreage described in paragraph (1).
[[Page 114 STAT. 427]]
Subtitle G--Administration
SEC. 261. FUNDING.
(a) Payment.--Out of any moneys in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall provide to the
Secretary the following:
(1) $34,000,000 for fiscal year 2000 to carry out section
241(a).
(2) $465,500,000 for fiscal year 2001 to carry out the
following:
(A) Section 203 (other than subsection (f )).
(B) Subtitle C.
(C) Section 231.
(D) Section 241 (other than subsection (a)).
(E) Sections 252 and 253.
(b) Acceptance.--The Secretary shall be entitled to receive the
funds and shall accept the funds, without further appropriation.
SEC. 262. OBLIGATION PERIOD.
Except as otherwise provided in this title, the Secretary and the
Commodity Credit Corporation shall obligate and expend--
(1) funds made available under section 261(a)(1) only during
fiscal year 2000; and
(2) funds made available under section 261(a)(2), and funds
of the Commodity Credit Corporation made available under this
title, only during fiscal year 2001.
SEC. 263. <<NOTE: 7 USC 1421 note.>> REGULATIONS.
(a) Promulgation.--As soon as practicable after the date of the
enactment of this Act, the Secretary and the Commodity Credit
Corporation, as appropriate, shall promulgate such regulations as are
necessary to implement this title and the amendments made by this title.
The promulgation of the regulations and administration of this title
shall be made without regard to--
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(b) Congressional Review of Agency Rulemaking.--In carrying out this
section, the Secretary shall use the authority provided under section
808 of title 5, United States Code.
SEC. 264. PAYGO ADJUSTMENT.
The Director of the Office of Management and Budget shall not make
any estimates of changes in direct spending outlays and receipts under
section 252(d) of the Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 902(d)) resulting from enactment of this title.
SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT.
Out of any moneys in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall use such sums as may be necessary to
reimburse the Commodity Credit Corporation for net
[[Page 114 STAT. 428]]
realized losses sustained, but not previously reimbursed, under this
title.
TITLE III--BIOMASS <<NOTE: Biomass Research and Development Act of
2000.>> RESEARCH AND DEVELOPMENT ACT OF 2000
SEC. 301. <<NOTE: 7 USC 7624 note.>> SHORT TITLE.
This title may be cited as the ``Biomass Research and Development
Act of 2000''.
SEC. 302. <<NOTE: 7 USC 7624 note.>> FINDINGS.
Congress finds that--
(1) conversion of biomass into biobased industrial products
offers outstanding potential for benefit to the national
interest through--
(A) improved strategic security and balance of
payments;
(B) healthier rural economies;
(C) improved environmental quality;
(D) near-zero net greenhouse gas emissions;
(E) technology export; and
(F) sustainable resource supply;
(2) the key technical challenges to be overcome in order for
biobased industrial products to be cost-competitive are finding
new technology and reducing the cost of technology for
converting biomass into desired biobased industrial products;
(3) biobased fuels, such as ethanol, have the clear
potential to be sustainable, low cost, and high performance
fuels that are compatible with both current and future
transportation systems and provide near-zero net greenhouse gas
emissions;
(4) biobased chemicals have the clear potential for
environmentally benign product life cycles;
(5) biobased power can--
(A) provide environmental benefits;
(B) promote rural economic development; and
(C) diversify energy resource options;
(6) many biomass feedstocks suitable for industrial
processing show the clear potential for sustainable production,
in some cases resulting in improved soil fertility and carbon
sequestration;
(7)(A) grain processing mills are biorefineries that produce
a diversity of useful food, chemical, feed, and fuel products;
and
(B) technologies that result in further diversification of
the range of value-added biobased industrial products can meet a
key need for the grain processing industry;
(8)(A) cellulosic feedstocks are attractive because of their
low cost and widespread availability; and
(B) research resulting in cost-effective technology to
overcome the recalcitrance of cellulosic biomass would allow
biorefineries to produce fuels and bulk chemicals on a very
large scale, with a commensurately large realization of the
benefit described in paragraph (1);
(9) research into the fundamentals to understand important
mechanisms of biomass conversion can be expected to accelerate
[[Page 114 STAT. 429]]
the application and advancement of biomass processing technology
by--
(A) increasing the confidence and speed with which
new technologies can be scaled up; and
(B) giving rise to processing innovations based on
new knowledge;
(10) the added utility of biobased industrial products
developed through improvements in processing technology would
encourage the design of feedstocks that would meet future needs
more effectively;
(11) the creation of value-added biobased industrial
products would create new jobs in construction, manufacturing,
and distribution, as well as new higher-valued exports of
products and technology;
(12)(A) because of the relatively short-term time horizon
characteristic of private sector investments, and because many
benefits of biomass processing are in the national interest, it
is appropriate for the Federal Government to provide
precommercial investment in fundamental research and research-
driven innovation in the biomass processing area; and
(B) such an investment would provide a valuable complement
to ongoing and past governmental support in the biomass
processing area; and
(13) several prominent studies, including studies by the
President's Committee of Advisors on Science and Technology and
the National Research Council--
(A) support the potential for large research-driven
advances in technologies for production of biobased
industrial products as well as associated benefits; and
(B) document the need for a focused, integrated, and
innovation-driven research effort to provide the
appropriate progress in a timely manner.
SEC. 303. <<NOTE: 7 USC 7624 note.>> DEFINITIONS.
In this title:
(1) Advisory committee.--The term ``Advisory Committee''
means the Biomass Research and Development Technical Advisory
Committee established by section 306.
(2) Biobased industrial product.--The term ``biobased
industrial product'' means fuels, chemicals, building materials,
or electric power or heat produced from biomass.
(3) Biomass.--The term ``biomass'' means any organic matter
that is available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and residues,
plants (including aquatic plants), grasses, residues, fibers,
and animal wastes, municipal wastes, and other waste materials.
(4) Board.--The term ``Board'' means the Biomass Research
and Development Board established by section 305.
(5) Initiative.--The term ``Initiative'' means the Biomass
Research and Development Initiative established under section
307.
(6) Institution of higher education.--The term ``institution
of higher education'' has the meaning given the term in section
102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).
[[Page 114 STAT. 430]]
(7) National laboratory.--The term ``national laboratory''
has the meaning given the term ``laboratory'' in section 12(d)
of the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3710a(d)).
(8) Point of contact.--The term ``point of contact'' means a
point of contact designated under section 304(d).
(9) Processing.--The term ``processing'' means the
derivation of biobased industrial products from biomass,
including--
(A) feedstock production;
(B) harvest and handling;
(C) pretreatment or thermochemical processing;
(D) fermentation;
(E) catalytic processing;
(F) product recovery; and
(G) coproduct production.
(10) Research and development.--The term ``research and
development'' means research, development, and demonstration.
SEC. 304. <<NOTE: 7 USC 7624 note.>> COOPERATION AND COORDINATION IN
BIOMASS RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary of Agriculture and the Secretary of
Energy shall cooperate with respect to, and coordinate, policies and
procedures that promote research and development leading to the
production of biobased industrial products.
(b) Purposes.--The purposes of the cooperation and coordination
shall be--
(1) to understand the key mechanisms underlying the
recalcitrance of biomass for conversion into biobased industrial
products;
(2) to develop new and cost-effective technologies that
would result in large-scale commercial production of low cost
and sustainable biobased industrial products;
(3) to ensure that biobased industrial products are
developed in a manner that enhances their economic, energy
security, and environmental benefits; and
(4) to promote the development and use of agricultural and
energy crops for conversion into biobased industrial products.
(c) Areas.--In carrying out this title, the Secretary of Agriculture
and the Secretary of Energy, in consultation with heads of appropriate
departments and agencies, shall promote research and development--
(1) to advance the availability and widespread use of energy
efficient, economically competitive, and environmentally sound
biobased industrial products in a manner that is consistent with
the goals of the United States relating to sustainable and
secure supplies of food, chemicals, and fuel;
(2) to ensure full consideration of Federal land and land
management programs as potential feedstock resources for
biobased industrial products; and
(3) to assess the environmental, economic, and social impact
of production of biobased industrial products from biomass on a
large scale.
(d) Points of Contact.--
[[Page 114 STAT. 431]]
(1) In general.--To <<NOTE: Government
organization. President.>> coordinate research and development
programs and activities relating to biobased industrial products
that are carried out by their respective Departments--
(A) the Secretary of Agriculture shall designate, as
the point of contact for the Department of Agriculture,
an officer of the Department of Agriculture appointed by
the President to a position in the Department before the
date of the designation, by and with the advice and
consent of the Senate; and
(B) the Secretary of Energy shall designate, as the
point of contact for the Department of Energy, an
officer of the Department of Energy appointed by the
President to a position in the Department before the
date of the designation, by and with the advice and
consent of the Senate.
(2) Duties.--The points of contact shall jointly--
(A) assist in arranging interlaboratory and site-
specific supplemental agreements for research and
development projects relating to biobased industrial
products;
(B) serve as cochairpersons of the Board;
(C) administer the Initiative; and
(D) respond in writing to each recommendation of the
Advisory Committee made under section 306(c).
SEC. 305. <<NOTE: 7 USC 7624 note.>> BIOMASS RESEARCH AND DEVELOPMENT
BOARD.
(a) Establishment.--There is established the Biomass Research and
Development Board, which shall supersede the Interagency Council on
Biobased Products and Bioenergy established by Executive Order No.
13134, to coordinate programs within and among departments and agencies
of the Federal Government for the purpose of promoting the use of
biobased industrial products by--
(1) maximizing the benefits deriving from Federal grants and
assistance; and
(2) bringing coherence to Federal strategic planning.
(b) Membership.--The Board shall consist of--
(1) the point of contact of the Department of Energy
designated under section 304(d)(1)(B), who shall serve as
cochairperson of the Board;
(2) the point of contact of the Department of Agriculture
designated under section 304(d)(1)(A), who shall serve as
cochairperson of the Board;
(3) a senior officer of each of the Department of the
Interior, the Environmental Protection Agency, the National
Science Foundation, and the Office of Science and Technology
Policy, each of whom shall--
(A) be appointed by the head of the respective
agency; and
(B) have a rank that is equivalent to the rank of
the points of contact; and
(4) at the option of the Secretary of Agriculture and the
Secretary of Energy, other members appointed by the Secretaries
(after consultation with the members described in paragraphs (1)
through (3)).
(c) Duties.--The Board shall--
(1) coordinate research and development activities relating
to biobased industrial products--
[[Page 114 STAT. 432]]
(A) between the Department of Agriculture and the
Department of Energy; and
(B) with other departments and agencies of the
Federal Government; and
(2) provide recommendations to the points of contact
concerning administration of this title.
(d) Funding.--Each agency represented on the Board is encouraged to
provide funds for any purpose under this title.
(e) Meetings.--The Board shall meet at least quarterly to enable the
Board to carry out the duties of the Board under subsection (c).
SEC. 306. <<NOTE: 7 USC 7624 note.>> BIOMASS RESEARCH AND DEVELOPMENT
TECHNICAL ADVISORY COMMITTEE.
(a) Establishment.--There is established the Biomass Research and
Development Technical Advisory Committee, which shall supersede the
Advisory Committee on Biobased Products and Bioenergy established by
Executive Order No. 13134--
(1) to advise the Secretary of Energy, the Secretary of
Agriculture, and the points of contact concerning--
(A) the technical focus and direction of requests
for proposals issued under the Initiative; and
(B) procedures for reviewing and evaluating the
proposals;
(2) to facilitate consultations and partnerships among
Federal and State agencies, agricultural producers, industry,
consumers, the research community, and other interested groups
to carry out program activities relating to the Initiative; and
(3) to evaluate and perform strategic planning on program
activities relating to the Initiative.
(b) Membership.--
(1) In general.--The Advisory Committee shall consist of--
(A) an individual affiliated with the biobased
industrial products industry;
(B) an individual affiliated with an institution of
higher education who has expertise in biobased
industrial products;
(C) two prominent engineers or scientists from
government or academia who have expertise in biobased
industrial products;
(D) an individual affiliated with a commodity trade
association;
(E) an individual affiliated with an environmental
or conservation organization;
(F) an individual associated with State government
who has expertise in biobased industrial products;
(G) an individual with expertise in energy analysis;
(H) an individual with expertise in the economics of
biobased industrial products;
(I) an individual with expertise in agricultural
economics; and
(J) at the option of the points of contact, other
members.
(2) Appointment.--The members of the Advisory Committee
shall be appointed by the points of contact.
[[Page 114 STAT. 433]]
(c) Duties.--The Advisory Committee shall--
(1) advise the points of contact with respect to the
Initiative; and
(2) evaluate whether, and make recommendations in writing to
the Board to ensure that--
(A) funds authorized for the Initiative are
distributed and used in a manner that is consistent with
the goals of the Initiative;
(B) the points of contact are funding proposals
under this title that are selected on the basis of
merit, as determined by an independent panel of
scientific and technical peers; and
(C) activities under this title are carried out in
accordance with this title.
(d) Coordination.--To avoid duplication of effort, the Advisory
Committee shall coordinate its activities with those of other Federal
advisory committees working in related areas.
(e) Meetings.--The Advisory Committee shall meet at least quarterly
to enable the Advisory Committee to carry out the duties of the Advisory
Committee under subsection (c).
(f ) Terms.--Members of the Advisory Committee shall be appointed
for a term of 3 years, except that--
(1) one-third of the members initially appointed shall be
appointed for a term of 1 year; and
(2) one-third of the members initially appointed shall be
appointed for a term of 2 years.
SEC. 307. <<NOTE: Grants. Contracts. 7 USC 7624 note.>> BIOMASS RESEARCH
AND DEVELOPMENT INITIATIVE.
(a) In General.--The Secretary of Agriculture and the Secretary of
Energy, acting through their respective points of contact and in
consultation with the Board, shall establish and carry out a Biomass
Research and Development Initiative under which competitively awarded
grants, contracts, and financial assistance are provided to, or entered
into with, eligible entities to carry out research on biobased
industrial products.
(b) Purposes.--The purposes of grants, contracts, and assistance
under this section shall be--
(1) to stimulate collaborative activities by a diverse range
of experts in all aspects of biomass processing for the purpose
of conducting fundamental and innovation-targeted research and
technology development;
(2) to enhance creative and imaginative approaches toward
biomass processing that will serve to develop the next
generation of advanced technologies making possible low cost and
sustainable biobased industrial products;
(3) to strengthen the intellectual resources of the United
States through the training and education of future scientists,
engineers, managers, and business leaders in the field of
biomass processing; and
(4) to promote integrated research partnerships among
colleges, universities, national laboratories, Federal and State
research agencies, and the private sector as the best means of
overcoming technical challenges that span multiple research and
engineering disciplines and of gaining better leverage from
limited Federal research funds.
(c) Eligible Entities.--
[[Page 114 STAT. 434]]
(1) In general.--To be eligible for a grant, contract, or
assistance under this section, an applicant shall be--
(A) an institution of higher education;
(B) a national laboratory;
(C) a Federal research agency;
(D) a State research agency;
(E) a private sector entity;
(F) a nonprofit organization; or
(G) a consortium of two or more entities described
in subparagraphs (A) through (F).
(2) Administration.--After consultation with the Board, the
points of contact shall--
(A) publish <<NOTE: Publication.>> annually one or
more joint requests for proposals for grants, contracts,
and assistance under this section;
(B) establish a priority in grants, contracts, and
assistance under this section for research that--
(i) demonstrates potential for significant
advances in biomass processing;
(ii) demonstrates potential to substantially
further scale-sensitive national objectives such
as--
(I) sustainable resource supply;
(II) reduced greenhouse gas
emissions;
(III) healthier rural economies; and
(IV) improved strategic security and
trade balances; and
(iii) would improve knowledge of important
biomass processing systems that demonstrate
potential for commercial applications;
(C) require that grants, contracts, and assistance
under this section be awarded competitively, on the
basis of merit, after the establishment of procedures
that provide for scientific peer review by an
independent panel of scientific and technical peers; and
(D) give preference to applications that--
(i) involve a consortia of experts from
multiple institutions; and
(ii) encourage the integration of disciplines
and application of the best technical resources.
(d) Uses of Grants, Contracts, and Assistance.--A grant, contract,
or assistance under this section may be used to conduct--
(1) research on process technology for overcoming the
recalcitrance of biomass, including research on key mechanisms,
advanced technologies, and demonstration test beds for--
(A) feedstock pretreatment and hydrolysis of
cellulose and hemicellulose, including new technologies
for--
(i) enhanced sugar yields;
(ii) lower overall chemical use;
(iii) less costly materials; and
(iv) cost reduction;
(B) development of novel organisms and other
approaches to substantially lower the cost of cellulase
enzymes and enzymatic hydrolysis, including dedicated
cellulase production and consolidated bioprocessing
strategies; and
(C) approaches other than enzymatic hydrolysis for
overcoming the recalcitrance of cellulosic biomass;
[[Page 114 STAT. 435]]
(2) research on technologies for diversifying the range of
products that can be efficiently and cost-competitively produced
from biomass, including research on--
(A) metabolic engineering of biological systems
(including the safe use of genetically modified crops)
to produce novel products, especially commodity
products, or to increase product selectivity and
tolerance, with a research priority for the development
of biobased industrial products that can compete in
performance and cost with fossil-based products;
(B) catalytic processing to convert intermediates of
biomass processing into products of interest;
(C) separation technologies for cost-effective
product recovery and purification;
(D) approaches other than metabolic engineering and
catalytic conversion of intermediates of biomass
processing;
(E) advanced biomass gasification technologies,
including coproduction of power and heat as an
integrated component of biomass processing, with the
possibility of generating excess electricity for sale;
and
(F) related research in advanced turbine and
stationary fuel cell technology for production of
electricity from biomass; and
(3) research aimed at ensuring the environmental performance
and economic viability of biobased industrial products and their
raw material input of biomass when considered as an integrated
system, including research on--
(A) the analysis of, and strategies to enhance, the
environmental performance and sustainability of biobased
industrial products, including research on--
(i) accurate measurement and analysis of
greenhouse gas emissions, carbon sequestration,
and carbon cycling in relation to the life cycle
of biobased industrial products and feedstocks
with respect to other alternatives;
(ii) evaluation of current and future biomass
resource availability;
(iii) development and analysis of land
management practices and alternative biomass
cropping systems that ensure the environmental
performance and sustainability of biomass
production and harvesting;
(iv) the land, air, water, and biodiversity
impacts of large-scale biomass production,
processing, and use of biobased industrial
products relative to other alternatives; and
(v) biomass gasification and combustion to
produce electricity;
(B) the analysis of, and strategies to enhance, the
economic viability of biobased industrial products,
including research on--
(i) the cost of the required process
technology;
(ii) the impact of coproducts, including food,
animal feed, and fiber, on biobased industrial
product price and large-scale economic viability;
and
(iii) interactions between an emergent biomass
refining industry and the petrochemical refining
infrastructure; and
[[Page 114 STAT. 436]]
(C) the field and laboratory research related to
feedstock production with the interrelated goals of
enhancing the sustainability, increasing productivity,
and decreasing the cost of biomass processing, including
research on--
(i) altering biomass to make biomass easier
and less expensive to process;
(ii) existing and new agricultural and energy
crops that provide a sustainable resource for
conversion to biobased industrial products while
simultaneously serving as a source for coproducts
such as food, animal feed, and fiber;
(iii) improved technologies for harvest,
collection, transport, storage, and handling of
crop and residue feedstocks; and
(iv) development of economically viable
cropping systems that improve the conservation and
restoration of marginal land; or
(4) any research and development in technologies or
processes determined by the Secretary of Agriculture and the
Secretary of Energy, acting through their respective points of
contact and in consultation with the Board, to be consistent
with the purposes described in subsection (b) and the priority
described in subsection (c)(2)(B).
(e) Technology and Information Transfer to Agricultural Users.--
(1) In general.--The Administrator of the Cooperative State
Research, Education, and Extension Service and the Chief of the
Natural Resources Conservation Service shall ensure that
applicable research results and technologies from the Initiative
are adapted, made available, and disseminated through their
respective services, as appropriate.
(2) Report.--Not later <<NOTE: Deadline.>> than 5 years
after the date of the enactment of this Act, the Administrator
of the Cooperative State Research, Education, and Extension
Service and the Chief of the Natural Resources Conservation
Service shall submit to the committees of Congress with
jurisdiction over the Initiative a report on the activities
conducted by the services under this subsection.
(f ) Authorization of Appropriations.--In addition to funds
appropriated for biomass research and development under the general
authority of the Secretary of Energy to conduct research and development
programs (which may also be used to carry out this title), there are
authorized to be appropriated to the Department of Agriculture to carry
out this title $49,000,000 for each of fiscal years 2000 through 2005.
SEC. 308. <<NOTE: 7 USC 7624 note.>> ADMINISTRATIVE SUPPORT AND FUNDS.
(a) In General.--To the extent administrative support and funds are
not provided by other agencies under subsection (b), the Secretary of
Energy and the Secretary of Agriculture may provide such administrative
support and funds of the Department of Energy and the Department of
Agriculture to the Board and the Advisory Committee as are necessary to
enable the Board and the Advisory Committee to carry out their duties
under this title.
(b) Other Agencies.--The heads of the agencies referred to in
section 305(b)(3), and the other members appointed under section
[[Page 114 STAT. 437]]
305(b)(4), may, and are encouraged to, provide administrative support
and funds of their respective agencies to the Board and the Advisory
Committee.
(c) Limitation.--Not more than 4 percent of the amount appropriated
for each fiscal year under section 307(f ) may be used to pay the
administrative costs of carrying out this title.
SEC. 309. <<NOTE: 7 USC 7624 note.>> REPORTS.
(a) Initial <<NOTE: Deadline.>> Report.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of Energy and
the Secretary of Agriculture shall jointly submit to Congress a report
that--
(1) identifies the points of contact, the members of the
Board, and the members of the Advisory Committee;
(2) describes the status of current biobased industrial
product research and development efforts in both the Federal
Government and private sector;
(3) includes a section prepared by the Board that
establishes a set of criteria to assess the potential of
biobased industrial products, which shall include for both
biomass production and transformation into biobased industrial
products--
(A) an energy accounting;
(B) an environmental impact assessment; and
(C) an economic assessment; and
(4) describes the research and development goals of the
Initiative, including how funds will be allocated in order to
accomplish those goals.
(b) Annual Reports.--For each fiscal year for which funds are made
available to carry out this title, the Secretary of Energy and the
Secretary of Agriculture shall jointly submit to Congress a detailed
report on--
(1) the status and progress of the Initiative, including a
report from the Advisory Committee on whether funds appropriated
for the Initiative have been distributed and used in a manner
that--
(A) is consistent with the purposes described in
section 307(b);
(B) uses the set of criteria established under
subsection (a)(3); and
(C) takes into account any recommendations that have
been made by the Advisory Committee;
(2) the general status of cooperation and research and
development efforts carried out at each agency with respect to
biobased industrial products, including a report from the
Advisory Committee on whether the points of contact are funding
proposals that are selected under section 307(c)(2)(C); and
(3) the plans of the Secretary of Energy and the Secretary
of Agriculture for addressing concerns raised in the report,
including concerns raised by the Advisory Committee.
SEC. 310. <<NOTE: 7 USC 7624 note.>> TERMINATION OF AUTHORITY.
The authority provided under this title shall terminate on December
31, 2005.
[[Page 114 STAT. 438]]
TITLE IV--PLANT <<NOTE: Plant Protection Act. Commerce and
trade. Exports and imports.>> PROTECTION ACT
SEC. 401. <<NOTE: 7 USC 7701 note.>> SHORT TITLE.
This title may be cited as the ``Plant Protection Act''.
SEC. 402. <<NOTE: 7 USC 7701.>> FINDINGS.
Congress finds that--
(1) the detection, control, eradication, suppression,
prevention, or retardation of the spread of plant pests or
noxious weeds is necessary for the protection of the
agriculture, environment, and economy of the United States;
(2) biological control is often a desirable, low-risk means
of ridding crops and other plants of plant pests and noxious
weeds, and its use should be facilitated by the Department of
Agriculture, other Federal agencies, and States whenever
feasible;
(3) it is the responsibility of the Secretary to facilitate
exports, imports, and interstate commerce in agricultural
products and other commodities that pose a risk of harboring
plant pests or noxious weeds in ways that will reduce, to the
extent practicable, as determined by the Secretary, the risk of
dissemination of plant pests or noxious weeds;
(4) decisions affecting imports, exports, and interstate
movement of products regulated under this title shall be based
on sound science;
(5) the smooth movement of enterable plants, plant products,
biological control organisms, or other articles into, out of, or
within the United States is vital to the United State's economy
and should be facilitated to the extent possible;
(6) export markets could be severely impacted by the
introduction or spread of plant pests or noxious weeds into or
within the United States;
(7) the unregulated movement of plant pests, noxious weeds,
plants, certain biological control organisms, plant products,
and articles capable of harboring plant pests or noxious weeds
could present an unacceptable risk of introducing or spreading
plant pests or noxious weeds;
(8) the existence on any premises in the United States of a
plant pest or noxious weed new to or not known to be widely
prevalent in or distributed within and throughout the United
States could constitute a threat to crops and other plants or
plant products of the United States and burden interstate
commerce or foreign commerce; and
(9) all plant pests, noxious weeds, plants, plant products,
articles capable of harboring plant pests or noxious weeds
regulated under this title are in or affect interstate commerce
or foreign commerce.
SEC. 403. <<NOTE: 7 USC 7702.>> DEFINITIONS.
In this title:
(1) Article.--The term ``article'' means any material or
tangible object that could harbor plant pests or noxious weeds.
(2) Biological control organism.--The term ``biological
control organism'' means any enemy, antagonist, or competitor
used to control a plant pest or noxious weed.
[[Page 114 STAT. 439]]
(3) Enter and entry.--The terms ``enter'' and ``entry'' mean
to move into, or the act of movement into, the commerce of the
United States.
(4) Export and exportation.--The terms ``export'' and
``exportation'' mean to move from, or the act of movement from,
the United States to any place outside the United States.
(5) Import and importation.--The terms ``import'' and
``importation'' mean to move into, or the act of movement into,
the territorial limits of the United States.
(6) Interstate.--The term ``interstate'' means--
(A) from one State into or through any other State;
or
(B) within the District of Columbia, Guam, the
Virgin Islands of the United States, or any other
territory or possession of the United States.
(7) Interstate commerce.--The term ``interstate commerce''
means trade, traffic, or other commerce--
(A) between a place in a State and a point in
another State, or between points within the same State
but through any place outside that State; or
(B) within the District of Columbia, Guam, the
Virgin Islands of the United States, or any other
territory or possession of the United States.
(8) Means of conveyance.--The term ``means of conveyance''
means any personal property used for or intended for use for the
movement of any other personal property.
(9) Move and related terms.--The terms ``move'', ``moving'',
and ``movement'' mean--
(A) to carry, enter, import, mail, ship, or
transport;
(B) to aid, abet, cause, or induce the carrying,
entering, importing, mailing, shipping, or transporting;
(C) to offer to carry, enter, import, mail, ship, or
transport;
(D) to receive to carry, enter, import, mail, ship,
or transport;
(E) to release into the environment; or
(F) to allow any of the activities described in a
preceding subparagraph.
(10) Noxious weed.--The term ``noxious weed'' means any
plant or plant product that can directly or indirectly injure or
cause damage to crops (including nursery stock or plant
products), livestock, poultry, or other interests of
agriculture, irrigation, navigation, the natural resources of
the United States, the public health, or the environment.
(11) Permit.--The term ``permit'' means a written or oral
authorization, including by electronic methods, by the Secretary
to move plants, plant products, biological control organisms,
plant pests, noxious weeds, or articles under conditions
prescribed by the Secretary.
(12) Person.--The term ``person'' means any individual,
partnership, corporation, association, joint venture, or other
legal entity.
(13) Plant.--The term ``plant'' means any plant (including
any plant part) for or capable of propagation, including a tree,
a tissue culture, a plantlet culture, pollen, a shrub, a vine, a
cutting, a graft, a scion, a bud, a bulb, a root, and a seed.
[[Page 114 STAT. 440]]
(14) Plant pest.--The term ``plant pest'' means any living
stage of any of the following that can directly or indirectly
injure, cause damage to, or cause disease in any plant or plant
product:
(A) A protozoan.
(B) A nonhuman animal.
(C) A parasitic plant.
(D) A bacterium.
(E) A fungus.
(F) A virus or viroid.
(G) An infectious agent or other pathogen.
(H) Any article similar to or allied with any of the
articles specified in the preceding subparagraphs.
(15) Plant product.--The term ``plant product'' means--
(A) any flower, fruit, vegetable, root, bulb, seed,
or other plant part that is not included in the
definition of plant; or
(B) any manufactured or processed plant or plant
part.
(16) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(17) State.--The term ``State'' means any of the several
States of the United States, the Commonwealth of the Northern
Mariana Islands, the Commonwealth of Puerto Rico, the District
of Columbia, Guam, the Virgin Islands of the United States, or
any other territory or possession of the United States.
(18) Systems approach.--For the purposes of section 412(e),
the term ``systems approach'' means a defined set of
phytosanitary procedures, at least two of which have an
independent effect in mitigating pest risk associated with the
movement of commodities.
(19) This title.--Except when used in this section, the term
``this title'' includes any regulation or order issued by the
Secretary under the authority of this title.
(20) United states.--The term ``United States'' means all of
the States.
Subtitle A--Plant Protection
SEC. 411. <<NOTE: 7 USC 7711.>> REGULATION OF MOVEMENT OF PLANT PESTS.
(a) Prohibition of Unauthorized Movement of Plant Pests.--Except as
provided in subsection (c), no person shall import, enter, export, or
move in interstate commerce any plant pest, unless the importation,
entry, exportation, or movement is authorized under general or specific
permit and is in accordance with such regulations as the Secretary may
issue to prevent the introduction of plant pests into the United States
or the dissemination of plant pests within the United States.
(b) Requirements for Processes.--The Secretary shall ensure that the
processes used in developing regulations under subsection (a) governing
consideration of import requests are based on sound science and are
transparent and accessible.
(c) Authorization of Movement of Plant Pests by Regulation.--
(1) Exception to permit requirement.--The Secretary may
issue regulations to allow the importation, entry, exportation,
or movement in interstate commerce of specified plant
[[Page 114 STAT. 441]]
pests without further restriction if the Secretary finds that a
permit under subsection (a) is not necessary.
(2) Petition to add or remove plant pests from regulation.--
Any person may petition the Secretary to add a plant pest to, or
remove a plant pest from, the regulations issued by the
Secretary under paragraph (1).
(3) Response to petition by the secretary.--In the case of a
petition submitted under paragraph (2), the Secretary shall act
on the petition within a reasonable time and notify the
petitioner of the final action the Secretary takes on the
petition. The Secretary's determination on the petition shall be
based on sound science.
(d) Prohibition of Unauthorized Mailing of Plant Pests.--
(1) In general.--Any letter, parcel, box, or other package
containing any plant pest, whether sealed as letter-rate postal
matter or not, is nonmailable and shall not knowingly be
conveyed in the mail or delivered from any post office or by any
mail carrier, unless the letter, parcel, box, or other package
is mailed in compliance with such regulations as the Secretary
may issue to prevent the dissemination of plant pests into the
United States or interstate.
(2) Application of postal laws and regulations.--Nothing in
this subsection authorizes any person to open any mailed letter
or other mailed sealed matter except in accordance with the
postal laws and regulations.
(e) Regulations.--Regulations issued by the Secretary to implement
subsections (a), (c), and (d) may include provisions requiring that any
plant pest imported, entered, to be exported, moved in interstate
commerce, mailed, or delivered from any post office--
(1) be accompanied by a permit issued by the Secretary prior
to the importation, entry, exportation, movement in interstate
commerce, mailing, or delivery of the plant pest;
(2) be accompanied by a certificate of inspection issued (in
a manner and form required by the Secretary) by appropriate
officials of the country or State from which the plant pest is
to be moved;
(3) be raised under post-entry quarantine conditions by or
under the supervision of the Secretary for the purposes of
determining whether the plant pest--
(A) may be infested with other plant pests;
(B) may pose a significant risk of causing injury
to, damage to, or disease in any plant or plant product;
or
(C) may be a noxious weed; and
(4) be subject to remedial measures the Secretary determines
to be necessary to prevent the spread of plant pests.
SEC. 412. <<NOTE: 7 USC 7712.>> REGULATION OF MOVEMENT OF PLANTS, PLANT
PRODUCTS, BIOLOGICAL CONTROL ORGANISMS, NOXIOUS WEEDS,
ARTICLES, AND MEANS OF CONVEYANCE.
(a) In General.--The Secretary may prohibit or restrict the
importation, entry, exportation, or movement in interstate commerce of
any plant, plant product, biological control organism, noxious weed,
article, or means of conveyance, if the Secretary determines that the
prohibition or restriction is necessary to prevent the introduction into
the United States or the dissemination of a plant pest or noxious weed
within the United States.
[[Page 114 STAT. 442]]
(b) Policy.--The Secretary shall ensure that processes used in
developing regulations under this section governing consideration of
import requests are based on sound science and are transparent and
accessible.
(c) Regulations.--The Secretary may issue regulations to implement
subsection (a), including regulations requiring that any plant, plant
product, biological control organism, noxious weed, article, or means of
conveyance imported, entered, to be exported, or moved in interstate
commerce--
(1) be accompanied by a permit issued by the Secretary prior
to the importation, entry, exportation, or movement in
interstate commerce;
(2) be accompanied by a certificate of inspection issued (in
a manner and form required by the Secretary) by appropriate
officials of the country or State from which the plant, plant
product, biological control organism, noxious weed, article, or
means of conveyance is to be moved;
(3) be subject to remedial measures the Secretary determines
to be necessary to prevent the spread of plant pests or noxious
weeds; and
(4) with respect to plants or biological control organisms,
be grown or handled under post-entry quarantine conditions by or
under the supervision of the Secretary for the purposes of
determining whether the plant or biological control organism may
be infested with plant pests or may be a plant pest or noxious
weed.
(d) Notice.--Not <<NOTE: Deadline. Publication. Public
information.>> later than 1 year after the date of the enactment of this
Act, the Secretary shall publish for public comment a notice describing
the procedures and standards that govern the consideration of import
requests. The notice shall--
(1) specify how public input will be sought in advance of
and during the process of promulgating regulations necessitating
a risk assessment in order to ensure a fully transparent and
publicly accessible process; and
(2) include consideration of the following:
(A) Public announcement of import requests that will
necessitate a risk assessment.
(B) A process for assigning major/nonroutine or
minor/routine status to such requests based on current
state of supporting scientific information.
(C) A process for assigning priority to requests.
(D) Guidelines for seeking relevant scientific and
economic information in advance of initiating informal
rulemaking.
(E) Guidelines for ensuring availability and
transparency of assumptions and uncertainties in the
risk assessment process including applicable risk
mitigation measures relied upon individually or as
components of a system of mitigative measures proposed
consistent with the purposes of this title.
(e) Study and Report on Systems Approach.--
(1) Study.--The Secretary shall conduct a study of the role
for and application of systems approaches designed to guard
against the introduction of plant pathogens into the United
States associated with proposals to import plants or plant
products into the United States.
[[Page 114 STAT. 443]]
(2) Participation by scientists.--In conducting the study
the Secretary shall ensure participation by scientists from
State departments of agriculture, colleges and universities, the
private sector, and the Agricultural Research Service.
(3) Report.--Not <<NOTE: Deadline.>> later than 2 years
after the date of the enactment of this Act, the Secretary shall
submit a report on the results of the study conducted under this
section to the Committee on Agriculture, Nutrition, and Forestry
of the Senate and the Committee on Agriculture of the House of
Representatives.
(f ) Noxious Weeds.--
(1) Regulations.--In the case of noxious weeds, the
Secretary may publish, by regulation, a list of noxious weeds
that are prohibited or restricted from entering the United
States or that are subject to restrictions on interstate
movement within the United States.
(2) Petition to add or remove plants from regulation.--Any
person may petition the Secretary to add a plant species to, or
remove a plant species from, the regulations issued by the
Secretary under this subsection.
(3) Duties of the secretary.--In the case of a petition
submitted under paragraph (2), the Secretary shall act on the
petition within a reasonable time and notify the petitioner of
the final action the Secretary takes on the petition. The
Secretary's determination on the petition shall be based on
sound science.
(g) Biological Control Organisms.--
(1) Regulations.--In the case of biological control
organisms, the Secretary may publish, by regulation, a list of
organisms whose movement in interstate commerce is not
prohibited or restricted. Any listing may take into account
distinctions between organisms such as indigenous,
nonindigenous, newly introduced, or commercially raised.
(2) Petition to add or remove biological control organisms
from the regulations.--Any person may petition the Secretary to
add a biological control organism to, or remove a biological
control organism from, the regulations issued by the Secretary
under this subsection.
(3) Duties of the secretary.--In the case of a petition
submitted under paragraph (2), the Secretary shall act on the
petition within a reasonable time and notify the petitioner of
the final action the Secretary takes on the petition. The
Secretary's determination on the petition shall be based on
sound science.
SEC. 413. <<NOTE: 7 USC 7713.>> NOTIFICATION AND HOLDING REQUIREMENTS
UPON ARRIVAL.
(a) Duty of Secretary of the Treasury.--
(1) Notification.--The Secretary of the Treasury shall
promptly notify the Secretary of Agriculture of the arrival of
any plant, plant product, biological control organism, plant
pest, or noxious weed at a port of entry.
(2) Holding.--The Secretary of the Treasury shall hold a
plant, plant product, biological control organism, plant pest,
or noxious weed for which notification is made under paragraph
(1) at the port of entry until the plant, plant product,
biological control organism, plant pest, or noxious weed--
[[Page 114 STAT. 444]]
(A) is inspected and authorized for entry into or
transit movement through the United States; or
(B) is otherwise released by the Secretary of
Agriculture.
(3) Exceptions.--Paragraphs (1) and (2) shall not apply to
any plant, plant product, biological control organism, plant
pest, or noxious weed that is imported from a country or region
of a country designated by the Secretary of Agriculture,
pursuant to regulations, as exempt from the requirements of such
paragraphs.
(b) Duty of Responsible Parties.--
(1) Notification.--The person responsible for any plant,
plant product, biological control organism, plant pest, noxious
weed, article, or means of conveyance required to have a permit
under section 411 or 412 shall provide the notification
described in paragraph (3) as soon as possible after the arrival
of the plant, plant product, biological control organism, plant
pest, noxious weed, article, or means of conveyance at a port of
entry and before the plant, plant product, biological control
organism, plant pest, noxious weed, article, or means of
conveyance is moved from the port of entry.
(2) Submission.--The notification shall be provided to the
Secretary, or, at the Secretary's direction, to the proper
official of the State to which the plant, plant product,
biological control organism, plant pest, noxious weed, article,
or means of conveyance is destined, or both, as the Secretary
may prescribe.
(3) Elements of notification.--The notification shall
consist of the following:
(A) The name and address of the consignee.
(B) The nature and quantity of the plant, plant
product, biological control organism, plant pest,
noxious weed, article, or means of conveyance proposed
to be moved.
(C) The country and locality where the plant, plant
product, biological control organism, plant pest,
noxious weed, article, or means of conveyance was grown,
produced, or located.
(c) Prohibition on Movement of Items Without Authorization.--No
person shall move from a port of entry or interstate any imported plant,
plant product, biological control organism, plant pest, noxious weed,
article, or means of conveyance unless the imported plant, plant
product, biological control organism, plant pest, noxious weed, article,
or means of conveyance--
(1) is inspected and authorized for entry into or transit
movement through the United States; or
(2) is otherwise released by the Secretary.
SEC. 414. <<NOTE: 7 USC 7714.>> GENERAL REMEDIAL MEASURES FOR NEW PLANT
PESTS AND NOXIOUS WEEDS.
(a) Authority To Hold, Treat, or Destroy Items.--If the Secretary
considers it necessary in order to prevent the dissemination of a plant
pest or noxious weed that is new to or not known to be widely prevalent
or distributed within and throughout the United States, the Secretary
may hold, seize, quarantine, treat, apply other remedial measures to,
destroy, or otherwise dispose of any plant, plant pest, noxious weed,
biological control organism, plant product, article, or means of
conveyance that--
[[Page 114 STAT. 445]]
(1) is moving into or through the United States or
interstate, or has moved into or through the United States or
interstate, and--
(A) the Secretary has reason to believe is a plant
pest or noxious weed or is infested with a plant pest or
noxious weed at the time of the movement; or
(B) is or has been otherwise in violation of this
title;
(2) has not been maintained in compliance with a post-entry
quarantine requirement; or
(3) is the progeny of any plant, biological control
organism, plant product, plant pest, or noxious weed that is
moving into or through the United States or interstate, or has
moved into the United States or interstate, in violation of this
title.
(b) Authority To Order an Owner To Treat or Destroy.--
(1) In general.--The Secretary may order the owner of any
plant, biological control organism, plant product, plant pest,
noxious weed, article, or means of conveyance subject to action
under subsection (a), or the owner's agent, to treat, apply
other remedial measures to, destroy, or otherwise dispose of the
plant, biological control organism, plant product, plant pest,
noxious weed, article, or means of conveyance, without cost to
the Federal Government and in the manner the Secretary considers
appropriate.
(2) Failure to comply.--If the owner or agent of the owner
fails to comply with the Secretary's order under this
subsection, the Secretary may take an action authorized by
subsection (a) and recover from the owner or agent of the owner
the costs of any care, handling, application of remedial
measures, or disposal incurred by the Secretary in connection
with actions taken under subsection (a).
(c) Classification System.--
(1) Development required.--To facilitate control of noxious
weeds, the Secretary may develop a classification system to
describe the status and action levels for noxious weeds. The
classification system may include the current geographic
distribution, relative threat, and actions initiated to prevent
introduction or distribution.
(2) Management plans.--In conjunction with the
classification system, the Secretary may develop integrated
management plans for noxious weeds for the geographic region or
ecological range where the noxious weed is found in the United
States.
(d) Application of Least Drastic Action.--No plant, biological
control organism, plant product, plant pest, noxious weed, article, or
means of conveyance shall be destroyed, exported, or returned to the
shipping point of origin, or ordered to be destroyed, exported, or
returned to the shipping point of origin under this section unless, in
the opinion of the Secretary, there is no less drastic action that is
feasible and that would be adequate to prevent the dissemination of any
plant pest or noxious weed new to or not known to be widely prevalent or
distributed within and throughout the United States.
SEC. 415. <<NOTE: 7 USC 7715.>> DECLARATION OF EXTRAORDINARY EMERGENCY
AND RESULTING AUTHORITIES.
(a) Authority To Declare.--If the Secretary determines that an
extraordinary emergency exists because of the presence of a
[[Page 114 STAT. 446]]
plant pest or noxious weed that is new to or not known to be widely
prevalent in or distributed within and throughout the United States and
that the presence of the plant pest or noxious weed threatens plants or
plant products of the United States, the Secretary may--
(1) hold, seize, quarantine, treat, apply other remedial
measures to, destroy, or otherwise dispose of, any plant,
biological control organism, plant product, article, or means of
conveyance that the Secretary has reason to believe is infested
with the plant pest or noxious weed;
(2) quarantine, treat, or apply other remedial measures to
any premises, including any plants, biological control
organisms, plant products, articles, or means of conveyance on
the premises, that the Secretary has reason to believe is
infested with the plant pest or noxious weed;
(3) quarantine any State or portion of a State in which the
Secretary finds the plant pest or noxious weed or any plant,
biological control organism, plant product, article, or means of
conveyance that the Secretary has reason to believe is infested
with the plant pest or noxious weed; and
(4) prohibit or restrict the movement within a State of any
plant, biological control organism, plant product, article, or
means of conveyance when the Secretary determines that the
prohibition or restriction is necessary to prevent the
dissemination of the plant pest or noxious weed or to eradicate
the plant pest or noxious weed.
(b) Required Finding of Emergency.--The Secretary may take action
under this section only upon finding, after review and consultation with
the Governor or other appropriate official of the State affected, that
the measures being taken by the State are inadequate to eradicate the
plant pest or noxious weed.
(c) Notification Procedures.--
(1) In <<NOTE: Federal Register, publication.>> general.--
Except as provided in paragraph (2), before any action is taken
in any State under this section, the Secretary shall notify the
Governor or other appropriate official of the State affected,
issue a public announcement, and file for publication in the
Federal Register a statement of--
(A) the Secretary's findings;
(B) the action the Secretary intends to take;
(C) the reasons for the intended action; and
(D) where practicable, an estimate of the
anticipated duration of the extraordinary emergency.
(2) Time sensitive actions.--If it is not possible to file
for publication in the Federal Register prior to taking action,
the filing shall be made within a reasonable time, not to exceed
10 business days, after commencement of the action.
(d) Application of Least Drastic Action.--No plant, biological
control organism, plant product, plant pest, noxious weed, article, or
means of conveyance shall be destroyed, exported, or returned to the
shipping point of origin, or ordered to be destroyed, exported, or
returned to the shipping point of origin under this section unless, in
the opinion of the Secretary, there is no less drastic action that is
feasible and that would be adequate to prevent the dissemination of any
plant pest or noxious weed new to or not known to be widely prevalent or
distributed within and throughout the United States.
[[Page 114 STAT. 447]]
(e) Payment of Compensation.--The Secretary may pay compensation to
any person for economic losses incurred by the person as a result of
action taken by the Secretary under this section. The determination by
the Secretary of the amount of any compensation to be paid under this
subsection shall be final and shall not be subject to judicial review.
SEC. 416. <<NOTE: 7 USC 7716.>> RECOVERY OF COMPENSATION FOR
UNAUTHORIZED ACTIVITIES.
(a) Recovery Action.--The owner of any plant, plant biological
control organism, plant product, plant pest, noxious weed, article, or
means of conveyance destroyed or otherwise disposed of by the Secretary
under section 414 or 415 may bring an action against the United States
to recover just compensation for the destruction or disposal of the
plant, plant biological control organism, plant product, plant pest,
noxious weed, article, or means of conveyance (not including
compensation for loss due to delays incident to determining eligibility
for importation, entry, exportation, movement in interstate commerce, or
release into the environment), but only if the owner establishes that
the destruction or disposal was not authorized under this title.
(b) Time for Action; Location.--An action under this section shall
be brought not later than 1 year after the destruction or disposal of
the plant, plant biological control organism, plant product, plant pest,
noxious weed, article, or means of conveyance involved. The action may
be brought in any United States district court where the owner is found,
resides, transacts business, is licensed to do business, or is
incorporated.
SEC. 417. <<NOTE: 7 USC 7717.>> CONTROL OF GRASSHOPPERS AND MORMON
CRICKETS.
(a) In General.--Subject to the availability of funds pursuant to
this section, the Secretary shall carry out a program to control
grasshoppers and Mormon crickets on all Federal lands to protect
rangeland.
(b) Transfer Authority.--
(1) In general.--Subject to paragraph (3), upon the request
of the Secretary of Agriculture, the Secretary of the Interior
shall transfer to the Secretary of Agriculture, from any no-year
appropriations, funds for the prevention, suppression, and
control of actual or potential grasshopper and Mormon cricket
outbreaks on Federal lands under the jurisdiction of the
Secretary of the Interior. The transferred funds shall be
available only for the payment of obligations incurred on such
Federal lands.
(2) Transfer requests.--Requests for the transfer of funds
pursuant to this subsection shall be made as promptly as
possible by the Secretary.
(3) Limitation.--Funds transferred pursuant to this
subsection may not be used by the Secretary until funds
specifically appropriated to the Secretary for grasshopper
control have been exhausted.
(4) Replenishment of transferred funds.--Funds transferred
pursuant to this subsection shall be replenished by supplemental
or regular appropriations, which shall be requested as promptly
as possible.
(c) Treatment for Grasshoppers and Mormon Crickets.--
(1) In general.--Subject to the availability of funds
pursuant to this section, on request of the administering agency
[[Page 114 STAT. 448]]
or the agriculture department of an affected State, the
Secretary, to protect rangeland, shall immediately treat
Federal, State, or private lands that are infested with
grasshoppers or Mormon crickets at levels of economic
infestation, unless the Secretary determines that delaying
treatment will not cause greater economic damage to adjacent
owners of rangeland.
(2) Other programs.--In carrying out this section, the
Secretary shall work in conjunction with other Federal, State,
and private prevention, control, or suppression efforts to
protect rangeland.
(d) Federal Cost Share of Treatment.--
(1) Control on federal lands.--Out of funds made available
or transferred under this section, the Secretary shall pay 100
percent of the cost of grasshopper or Mormon cricket control on
Federal lands to protect rangeland.
(2) Control on state lands.--Out of funds made available
under this section, the Secretary shall pay 50 percent of the
cost of grasshopper or Mormon cricket control on State lands.
(3) Control on private lands.--Out of funds made available
under this section, the Secretary shall pay 33.3 percent of the
cost of grasshopper or Mormon cricket control on private lands.
(e) Training.--From appropriated funds made available or transferred
by the Secretary of the Interior to the Secretary of Agriculture for
such purposes, the Secretary of Agriculture shall provide adequate
funding for a program to train personnel to accomplish effectively the
objective of this section.
SEC. 418. <<NOTE: 7 USC 7718.>> CERTIFICATION FOR EXPORTS.
The Secretary may certify as to the freedom of plants, plant
products, or biological control organisms from plant pests or noxious
weeds, or the exposure of plants, plant products, or biological control
organisms to plant pests or noxious weeds, according to the
phytosanitary or other requirements of the countries to which the
plants, plant products, or biological control organisms may be exported.
Subtitle B--Inspection and Enforcement
SEC. 421. <<NOTE: 7 USC 7731.>> INSPECTIONS, SEIZURES, AND WARRANTS.
(a) Role of Attorney General.--The activities authorized by this
section shall be carried out consistent with guidelines approved by the
Attorney General.
(b) Warrantless Inspections.--The Secretary may stop and inspect,
without a warrant, any person or means of conveyance moving--
(1) into the United States to determine whether the person
or means of conveyance is carrying any plant, plant product,
biological control organism, plant pest, noxious weed, or
article subject to this title;
(2) in interstate commerce, upon probable cause to believe
that the person or means of conveyance is carrying any plant,
plant product, biological control organism, plant pest, noxious
weed, or article subject to this title; and
(3) in intrastate commerce from or within any State, portion
of a State, or premises quarantined as part of a extraordinary
[[Page 114 STAT. 449]]
emergency declared under section 415 upon probable cause to
believe that the person or means of conveyance is carrying any
plant, plant product, biological control organism, plant pest,
noxious weed, or article regulated under that section or is
moving subject to that section.
(c) Inspections With a Warrant.--
(1) General authority.--The Secretary may enter, with a
warrant, any premises in the United States for the purpose of
conducting investigations or making inspections and seizures
under this title.
(2) Application and issuance of a warrant.--Upon proper oath
or affirmation showing probable cause to believe that there is
on certain premises any plant, plant product, biological control
organism, plant pest, noxious weed, article, facility, or means
of conveyance regulated under this title, a United States judge,
a judge of a court of record in the United States, or a United
States magistrate judge may, within the judge's or magistrate's
jurisdiction, issue a warrant for the entry upon the premises to
conduct any investigation or make any inspection or seizure
under this title. The warrant may be applied for and executed by
the Secretary or any United States Marshal.
SEC. 422. <<NOTE: 7 USC 7732.>> COLLECTION OF INFORMATION.
The Secretary may gather and compile information and conduct any
investigations the Secretary considers necessary for the administration
and enforcement of this title.
SEC. 423. <<NOTE: 7 USC 7733.>> SUBPOENA AUTHORITY.
(a) Authority To Issue.--The Secretary shall have power to subpoena
the attendance and testimony of any witness, and the production of all
documentary evidence relating to the administration or enforcement of
this title or any matter under investigation in connection with this
title.
(b) Location of Production.--The attendance of any witness and
production of documentary evidence may be required from any place in the
United States at any designated place of hearing.
(c) Enforcement of Subpoena.--In the case of disobedience to a
subpoena by any person, the Secretary may request the Attorney General
to invoke the aid of any court of the United States within the
jurisdiction in which the investigation is conducted, or where the
person resides, is found, transacts business, is licensed to do
business, or is incorporated, in requiring the attendance and testimony
of any witness and the production of documentary evidence. In case of a
refusal to obey a subpoena issued to any person, a court may order the
person to appear before the Secretary and give evidence concerning the
matter in question or to produce documentary evidence. Any failure to
obey the court's order may be punished by the court as a contempt of the
court.
(d) Compensation.--Witnesses summoned by the Secretary shall be paid
the same fees and mileage that are paid to witnesses in courts of the
United States, and witnesses whose depositions are taken and the persons
taking the depositions shall be entitled to the same fees that are paid
for similar services in the courts of the United States.
(e) Procedures.--The <<NOTE: Publication.>> Secretary shall publish
procedures for the issuance of subpoenas under this section. Such
procedures shall
[[Page 114 STAT. 450]]
include a requirement that subpoenas be reviewed for legal sufficiency
and signed by the Secretary. If the authority to sign a subpoena is
delegated, the agency receiving the delegation shall seek review for
legal sufficiency outside that agency.
(f ) Scope of Subpoena.--Subpoenas for witnesses to attend court in
any judicial district or to testify or produce evidence at an
administrative hearing in any judicial district in any action or
proceeding arising under this title may run to any other judicial
district.
SEC. 424. <<NOTE: 7 USC 7734.>> PENALTIES FOR VIOLATION.
(a) Criminal Penalties.--Any person that knowingly violates this
title, or that knowingly forges, counterfeits, or, without authority
from the Secretary, uses, alters, defaces, or destroys any certificate,
permit, or other document provided for in this title shall be guilty of
a misdemeanor, and, upon conviction, shall be fined in accordance with
title 18, United States Code, imprisoned for a period not exceeding 1
year, or both.
(b) Civil Penalties.--
(1) In general.--Any person that violates this title, or
that forges, counterfeits, or, without authority from the
Secretary, uses, alters, defaces, or destroys any certificate,
permit, or other document provided for in this title may, after
notice and opportunity for a hearing on the record, be assessed
a civil penalty by the Secretary that does not exceed the
greater of--
(A) $50,000 in the case of any individual (except
that the civil penalty may not exceed $1,000 in the case
of an initial violation of this title by an individual
moving regulated articles not for monetary gain),
$250,000 in the case of any other person for each
violation, and $500,000 for all violations adjudicated
in a single proceeding; or
(B) twice the gross gain or gross loss for any
violation, forgery, counterfeiting, unauthorized use,
defacing, or destruction of a certificate, permit, or
other document provided for in this title that results
in the person deriving pecuniary gain or causing
pecuniary loss to another.
(2) Factors in determining civil penalty.--In determining
the amount of a civil penalty, the Secretary shall take into
account the nature, circumstance, extent, and gravity of the
violation or violations and the Secretary may consider, with
respect to the violator--
(A) ability to pay;
(B) effect on ability to continue to do business;
(C) any history of prior violations;
(D) the degree of culpability; and
(E) any other factors the Secretary considers
appropriate.
(3) Settlement of civil penalties.--The Secretary may
compromise, modify, or remit, with or without conditions, any
civil penalty that may be assessed under this subsection.
(4) Finality of orders.--The order of the Secretary
assessing a civil penalty shall be treated as a final order
reviewable under chapter 158 of title 28, United States Code.
The validity of the Secretary's order may not be reviewed in an
action to collect the civil penalty. Any civil penalty not paid
in full when due under an order assessing the civil penalty
[[Page 114 STAT. 451]]
shall thereafter accrue interest until paid at the rate of
interest applicable to civil judgments of the courts of the
United States.
(c) Liability for Acts of an Agent.--When construing and enforcing
this title, the act, omission, or failure of any officer, agent, or
person acting for or employed by any other person within the scope of
his or her employment or office, shall be deemed also to be the act,
omission, or failure of the other person.
(d) Guidelines for Civil Penalties.--The Secretary shall coordinate
with the Attorney General to establish guidelines to determine under
what circumstances the Secretary may issue a civil penalty or suitable
notice of warning in lieu of prosecution by the Attorney General of a
violation of this title.
SEC. 425. <<NOTE: 7 USC 7735.>> ENFORCEMENT ACTIONS OF ATTORNEY GENERAL.
The Attorney General may--
(1) prosecute, in the name of the United States, all
criminal violations of this title that are referred to the
Attorney General by the Secretary or are brought to the notice
of the Attorney General by any person;
(2) bring an action to enjoin the violation of or to compel
compliance with this title, or to enjoin any interference by any
person with the Secretary in carrying out this title, whenever
the Secretary has reason to believe that the person has
violated, or is about to violate this title, or has interfered,
or is about to interfere, with the Secretary; and
(3) bring an action for the recovery of any unpaid civil
penalty, funds under reimbursable agreements, late payment
penalty, or interest assessed under this title.
SEC. 426. <<NOTE: 7 USC 7736.>> COURT JURISDICTION.
(a) In General.--The United States district courts, the District
Court of Guam, the District Court of the Virgin Islands, the highest
court of American Samoa, and the United States courts of other
territories and possessions are vested with jurisdiction in all cases
arising under this title. Any action arising under this title may be
brought, and process may be served, in the judicial district where a
violation or interference occurred or is about to occur, or where the
person charged with the violation, interference, impending violation,
impending interference, or failure to pay resides, is found, transacts
business, is licensed to do business, or is incorporated.
(b) Exception.--This section does not apply to the imposition of
civil penalties under section 424(b).
Subtitle C--Miscellaneous Provisions
SEC. 431. <<NOTE: 7 USC 7751.>> COOPERATION.
(a) In General.--The Secretary may cooperate with other Federal
agencies or entities, States or political subdivisions of States,
national governments, local governments of other nations, domestic or
international organizations, domestic or international associations, and
other persons to carry out this title.
(b) Responsibility.--The individual or entity cooperating with the
Secretary under subsection (a) shall be responsible for--
(1) the authority necessary to conduct the operations or
take measures on all land and properties within the foreign
[[Page 114 STAT. 452]]
country or State, other than those owned or controlled by the
United States; and
(2) other facilities and means as the Secretary determines
necessary.
(c) Transfer of Biological Control Methods.--The Secretary may
transfer to a State, Federal agency, or other person biological control
methods using biological control organisms against plant pests or
noxious weeds.
(d) Cooperation in Program Administration.--The Secretary may
cooperate with State authorities or other persons in the administration
of programs for the improvement of plants, plant products, and
biological control organisms.
(e) Phytosanitary Issues.--The Secretary shall ensure that
phytosanitary issues involving imports and exports are addressed based
on sound science and consistent with applicable international
agreements. To accomplish these goals, the Secretary may--
(1) conduct direct negotiations with plant health officials
or other appropriate officials of other countries;
(2) provide technical assistance, training, and guidance to
any country requesting such assistance in the development of
agricultural health protection systems and import/export
systems; and
(3) maintain plant health and quarantine expertise in other
countries--
(A) to facilitate the establishment of phytosanitary
systems and the resolution of phytosanitary issues;
(B) to assist those countries with agricultural
health protection activities; and
(C) to provide general liaison on agricultural
health issues with the plant health or other appropriate
officials of the country.
SEC. 432. <<NOTE: 7 USC 7752.>> BUILDINGS, LAND, PEOPLE, CLAIMS, AND
AGREEMENTS.
(a) In General.--To the extent necessary to carry out this title,
the Secretary may acquire and maintain all real or personal property for
special purposes and employ any persons, make grants, and enter into any
contracts, cooperative agreements, memoranda of understanding, or other
agreements.
(b) Tort Claims.--
(1) In general.--Except as provided in paragraph (2), the
Secretary may pay tort claims in the manner authorized in the
first paragraph of section 2672 of title 28, United States Code,
when the claims arise outside the United States in connection
with activities that are authorized under this title.
(2) Requirements of claim.--A claim may not be allowed under
this subsection unless the claim is presented in writing to the
Secretary within 2 years after the date on which the claim
accrues.
SEC. 433. <<NOTE: 7 USC 7753.>> REIMBURSABLE AGREEMENTS.
(a) Authority To Enter Into Agreements.--The Secretary may enter
into reimbursable fee agreements with persons for preclearance of
plants, plant products, biological control organisms, and articles at
locations outside the United States for movement into the United States.
(b) Funds Collected for Preclearance.--Funds collected for
preclearance shall be credited to accounts which may be established by
the Secretary for this purpose and shall remain available
[[Page 114 STAT. 453]]
until expended for the preclearance activities without fiscal year
limitation.
(c) Payment of Employees.--
(1) In general.--Notwithstanding any other law, the
Secretary may pay employees of the Department of Agriculture
performing services relating to imports into and exports from
the United States, for all overtime, night, or holiday work
performed by them, at rates of pay established by the Secretary.
(2) Reimbursement of the secretary.--
(A) In general.--The Secretary may require persons
for whom the services are performed to reimburse the
Secretary for any sums of money paid by the Secretary
for the services.
(B) Use of funds.--All funds collected under this
paragraph shall be credited to the account that incurs
the costs and shall remain available until expended
without fiscal year limitation.
(d) Late Payment Penalties.--
(1) Collection.--Upon failure to reimburse the Secretary in
accordance with this section, the Secretary may assess a late
payment penalty, and the overdue funds shall accrue interest, as
required by section 3717 of title 31, United States Code.
(2) Use of funds.--Any late payment penalty and any accrued
interest shall be credited to the account that incurs the costs
and shall remain available until expended without fiscal year
limitation.
SEC. 434. <<NOTE: 7 USC 7754.>> REGULATIONS AND ORDERS.
The Secretary may issue such regulations and orders as the Secretary
considers necessary to carry out this title.
SEC. 435. <<NOTE: 7 USC 7755.>> PROTECTION FOR MAIL HANDLERS.
This title shall not apply to any employee of the United States in
the performance of the duties of the employee in handling the mail.
SEC. 436. <<NOTE: 7 USC 7756.>> PREEMPTION.
(a) Regulation of Foreign Commerce.--No State or political
subdivision of a State may regulate in foreign commerce any article,
means of conveyance, plant, biological control organism, plant pest,
noxious weed, or plant product in order--
(1) to control a plant pest or noxious weed;
(2) to eradicate a plant pest or noxious weed; or
(3) prevent the introduction or dissemination of a
biological control organism, plant pest, or noxious weed.
(b) Regulation of Interstate Commerce.--
(1) In general.--Except as provided in paragraph (2), no
State or political subdivision of a State may regulate the
movement in interstate commerce of any article, means of
conveyance, plant, biological control organism, plant pest,
noxious weed, or plant product in order to control a plant pest
or noxious weed, eradicate a plant pest or noxious weed, or
prevent the introduction or dissemination of a biological
control organism, plant pest, or noxious weed, if the Secretary
has issued a regulation or order to prevent the dissemination of
the biological control organism, plant pest, or noxious weed
within the United States.
[[Page 114 STAT. 454]]
(2) Exceptions.--
(A) Regulations consistent with federal
regulations.--A State or a political subdivision of a
State may impose prohibitions or restrictions upon the
movement in interstate commerce of articles, means of
conveyance, plants, biological control organisms, plant
pests, noxious weeds, or plant products that are
consistent with and do not exceed the regulations or
orders issued by the Secretary.
(B) Special need.--A State or political subdivision
of a State may impose prohibitions or restrictions upon
the movement in interstate commerce of articles, means
of conveyance, plants, plant products, biological
control organisms, plant pests, or noxious weeds that
are in addition to the prohibitions or restrictions
imposed by the Secretary, if the State or political
subdivision of a State demonstrates to the Secretary and
the Secretary finds that there is a special need for
additional prohibitions or restrictions based on sound
scientific data or a thorough risk assessment.
SEC. 437. <<NOTE: 7 USC 7757.>> SEVERABILITY.
If any provision of this title or application of any provision of
this title to any person or circumstances is held invalid, the remainder
of this title and the application of the provision to other persons and
circumstances shall not be affected by the invalidity.
SEC. 438. <<NOTE: 7 USC 7758.>> REPEAL OF SUPERSEDED LAWS.
(a) Repeal.--The following provisions of law are repealed:
(1) The Act of August 20, 1912 (commonly known as the
``Plant Quarantine Act'') (7 U.S.C. 151-164a, 167).
(2) The Federal Plant Pest Act (7 U.S.C. 150aa et seq. and 7
U.S.C. 147a note).
(3) Subsections (a) through (e) of section 102 of the
Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a).
(4) The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 et
seq.), except the first section and section 15 of that Act (7
U.S.C. 2801 note and 7 U.S.C. 2814).
(5) The Act of January 31, 1942 (commonly known as the
``Mexican Border Act'') (7 U.S.C. 149).
(6) The Joint Resolution of April 6, 1937 (commonly known as
the ``Insect Control Act'') (7 U.S.C. 148 et seq.).
(7) The Halogeton Glomeratus Act (7 U.S.C. 1651 et seq.).
(8) The Golden Nematode Act (7 U.S.C. 150 et seq.).
(9) Section 1773 of the Food Security Act of 1985 (Public
Law 99-198; 7 U.S.C. 148f ).
(b) Emergency Transfer Authority Regarding Plant Pests.--The first
section of Public Law 97-46 (7 U.S.C. 147b) is amended--
(1) by striking ``plant pests or''; and
(2) by striking ``section 102 of the Act of September 21,
1944, as amended (7 U.S.C. 147a), and''.
(c) Effect on Regulations.--Regulations issued under the authority
of a provision of law repealed by subsection (a) shall remain in effect
until such time as the Secretary issues a regulation under section 434
that supersedes the earlier regulation.
[[Page 114 STAT. 455]]
Subtitle D--Authorization of Appropriations
SEC. 441. <<NOTE: 7 USC 7771.>> AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such amounts as may be
necessary to carry out this title. Except as specifically authorized by
law, no part of the money appropriated under this section shall be used
to pay indemnities for property injured or destroyed by or at the
direction of the Secretary.
SEC. 442. <<NOTE: 7 USC 7772.>> TRANSFER AUTHORITY.
(a) Authority To Transfer Certain Funds.--In connection with an
emergency in which a plant pest or noxious weed threatens any segment of
the agricultural production of the United States, the Secretary may
transfer from other appropriations or funds available to the agencies or
corporations of the Department of Agriculture such amounts as the
Secretary considers necessary to be available in the emergency for the
arrest, control, eradication, and prevention of the spread of the plant
pest or noxious weed and for related expenses.
(b) Availability.--Any funds transferred under this section shall
remain available for such purposes without fiscal year limitation.
TITLE V--INSPECTION ANIMALS
SEC. 501. <<NOTE: 7 USC 2279e.>> CIVIL PENALTY.
(a) In General.--Any person that causes harm to, or interferes with,
an animal used for the purposes of official inspections by the
Department of Agriculture, may, after notice and opportunity for a
hearing on the record, be assessed a civil penalty by the Secretary of
Agriculture not to exceed $10,000.
(b) Factors in Determining Civil Penalty.--In determining the amount
of a civil penalty, the Secretary shall take into account the nature,
circumstance, extent, and gravity of the offense.
(c) Settlement of Civil Penalties.--The Secretary may compromise,
modify, or remit, with or without conditions, any civil penalty that may
be assessed under this section.
(d) Finality of Orders.--
(1) In general.--The order of the Secretary assessing a
civil penalty shall be treated as a final order reviewable under
chapter 158 of title 28, United States Code. The validity of the
order of the Secretary may not be reviewed in an action to
collect the civil penalty.
(2) Interest.--Any civil penalty not paid in full when due
under an order assessing the civil penalty shall thereafter
accrue interest until paid at the rate of interest applicable to
civil judgments of the courts of the United States.
SEC. 502. <<NOTE: 7 USC 2279f.>> SUBPOENA AUTHORITY.
(a) In General.--The Secretary shall have power to subpoena the
attendance and testimony of any witness, and the production of all
documentary evidence relating to the enforcement of section 501 or any
matter under investigation in connection with this title.
[[Page 114 STAT. 456]]
(b) Location of Production.--The attendance of any witness and the
production of documentary evidence may be required from any place in the
United States at any designated place of hearing.
(c) Enforcement of Subpoena.--In the case of disobedience to a
subpoena by any person, the Secretary may request the Attorney General
to invoke the aid of any court of the United States within the
jurisdiction in which the investigation is conducted, or where the
person resides, is found, transacts business, is licensed to do
business, or is incorporated, in requiring the attendance and testimony
of any witness and the production of documentary evidence. In case of a
refusal to obey a subpoena issued to any person, a court may order the
person to appear before the Secretary and give evidence concerning the
matter in question or to produce documentary evidence. Any failure to
obey the court's order may be punished by the court as a contempt of the
court.
(d) Compensation.--Witnesses summoned by the Secretary shall be paid
the same fees and mileage that are paid to witnesses in courts of the
United States, and witnesses whose depositions are taken, and the
persons taking the depositions shall be entitled to the same fees that
are paid for similar services in the courts of the United States.
(e) Procedures.--The <<NOTE: Publication.>> Secretary shall publish
procedures for the issuance of subpoenas under this section. Such
procedures shall include a requirement that subpoenas be reviewed for
legal sufficiency and signed by the Secretary. If the authority to sign
a subpoena is delegated, the agency receiving the delegation shall seek
review for legal sufficiency outside that agency.
(f ) Scope of Subpoena.--Subpoenas for witnesses to attend court in
any judicial district or testify or produce evidence at an
administrative hearing in any judicial district in any action or
proceeding arising under section 501 may run to any other judicial
district.
Approved June 20, 2000.
LEGISLATIVE HISTORY--H.R. 2559 (S. 2251):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 106-300 and Pt. 2 (Comm. on Agriculture).
SENATE REPORTS: No. 106-247 accompanying S. 2251 (Comm. on Agriculture,
Nutrition, and Forestry).
CONGRESSIONAL RECORD:
Vol. 145 (1999):
Sept. 29, considered and passed
House.
Vol. 146 (2000):
Mar. 22, 23, considered and passed
Senate, amended, in lieu of S.
2251.
May 25, Senate and House agreed to
conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
June 20, Presidential statement.
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