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106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-639
======================================================================
AGRICULTURAL RISK PROTECTION ACT OF 2000
_______
May 24, 2000.--Ordered to be printed
_______
Mr. Combest, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 2559]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
2559), 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,
and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``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.
Sec. 163. Indemnity payments for certain producers.
Sec. 164. Sense of Congress regarding the Federal crop insurance
program.
Sec. 165. Sense of 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.
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.
``(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
``(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 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 enactment of this
subparagraph, the payment by the Corporation of
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 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, 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 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.''.
(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 thecollection 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 2 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 1 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
``(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 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 producedduring 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.
``(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 1 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 1 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) 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 makes 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 2
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
2 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 2 or
more crops for harvest in the same crop year or the
applicable acreage has historically had 2 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.
``(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:
``(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 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 5 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 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.
``(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 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 1 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 1 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 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.
``(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 bedisclosed 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.
``(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:
``(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 enactment of
this section.
``(3) Marketability.--The Corporation shall approve
a reimbursement under paragraph (1) or (2) only after
determiningthat 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 4 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--
``(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, 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 1 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 later than 1 year after
the date of 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 1 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 later than
15 months after the date of the enactment of this
section, the Corporation shall submit to the Committee
on Agriculture of theHouse 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
``(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.--
``(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. 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--
``(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 2 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.
``(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 locationfor 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
``(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 1 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''.
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. 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.--
``(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''.
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 acontract 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) 1 additional Under Secretary of
Agriculture (as designated by the Secretary).
``(D) The Chief Economist of the Department
of Agriculture.
``(E) 1 person experienced in the crop
insurance business.
``(F) 1 person experienced in reinsurance
or the regulation of insurance.
``(G) 4 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 1
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 2
consecutive terms.
``(4) Chairperson.--The Board shall select a member
of the Board to serve as Chairperson.''.
(2) Implementation.--The 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 existing board.--A member of the
Board of Directors of the Federal Crop Insurance
Corporation on the date of 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 5 persons to each conduct a
review of the policy or plan of insurance, of whom--
``(A) not more than 1 person may be
employed by the Federal Government; and
``(B) at least 1 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 5 persons to each conduct a review of the
policy or plan of insurance, of whom--
``(i) not more than 1 person may be
employed by the Federal Government; and
``(ii) none may be employed by an
approved insurance provider; and
``(B) 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 othercontracting 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.--
``(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 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 period.--The Board shall
provide an applicant with notification
of intent to disapprove a 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 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.''.
(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. 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.
Subtitle E--Miscellaneous
CHAPTER 1--OTHER PROVISIONS
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 CONGRESS REGARDING THE FEDERAL CROP INSURANCE
PROGRAM.
It is the sense of Congress that--
(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) not later than 180 days after the date of
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 CONGRESS ON RURAL AMERICA, INCLUDING MINORITY AND
LIMITED-RESOURCE FARMERS.
It is the sense of 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, 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. 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 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. REGULATIONS.
Not later than 120 days after the date of enactment of this
Act, the Secretary of Agriculture shall promulgate regulations
to carry out this Act and the amendments made by this Act.
SEC. 173. 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 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 Secretary shall make the payments required
by this section not earlier than September 1, 2000, and not
later than September 30, 2000.
SEC. 202. 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 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. 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
(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 later than July 19, 2000, the
Secretary, in coordination with the Inspector General
of the Department ofAgriculture, 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.--
(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. 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.
(2) Payments.--Effective 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 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:
``(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 1 farm in a State to any other farm in the State
if, in a statewide 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 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.--
``(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 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 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
TransitionAct (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--
(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 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 has a beneficial interest in the
commodity, as determined by the Secretary.''.
Subtitle B--Conservation
SEC. 211. CONSERVATION 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, 1 or more of the
conservation purposes specified in clause (i),
(ii), or (iii) of section 170(h)(4)(A) of the
Internal Revenue Code of 1986;
(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.
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.
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 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 #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
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 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-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).
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., 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 20 local agencies in 1 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
2 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 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 women,
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 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 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 1 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, 1 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 1 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
``(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
1 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--
``(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
1 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 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 1 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 1 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--
``(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 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 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 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 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 1 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 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) Statewide 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 ``statewide
demonstration projects in 3 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) 1 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 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 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 1
meal per child per day and 1 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 6 States, of
which 4 States shall be Pennsylvania, Missouri,
Delaware, and Michigan and 2 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))''.
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 ofremote 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 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 Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section take effect on
the date of 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 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.
(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), theseed 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.
SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CERTAIN OFFICES.
(a) Suspension.--During the period beginning on the date of
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 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 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 period beginning on the date of 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 of Covered Land.--In this section:
(1) In general.--The term ``covered land'' means
land that--
(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 1 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 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 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 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
PublicLaw (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 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
(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 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. 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).
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. REGULATIONS.
(a) Promulgation.--As soon as practicable after the date of
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
andreceipts 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 realized losses sustained, but not
previously reimbursed, under this title.
TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000
SEC. 301. SHORT TITLE.
This title may be cited as the ``Biomass Research and
Development Act of 2000''.
SEC. 302. 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 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. 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)).
(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. 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.--
(1) In general.--To 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. 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 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--
(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. 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 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) 2 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.
(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) \1/3\ of the members initially appointed shall
be appointed for a term of 1 year; and
(2) \1/3\ of the members initially appointed shall
be appointed for a term of 2 years.
SEC. 307. 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.--
(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 2 or more entities
described in subparagraphs (A) through (F).
(2) Administration.--After consultation with the
Board, the points of contact shall--
(A) publish annually 1 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;
(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
(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 than 5 years after the date
of 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. 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 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. REPORTS.
(a) Initial Report.--Not later than 180 days after the date
of 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 appropriatedfor 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. TERMINATION OF AUTHORITY.
The authority provided under this title shall terminate on
December 31, 2005.
TITLE IV--PLANT PROTECTION ACT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Plant Protection Act''.
SEC. 402. 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. 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.
(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.
(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 2 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. 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 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. 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.
(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 later than 1 year after the date of
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.
(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 later than 2 years after the date
of 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. 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--
(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. 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--
(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 thissubsection, 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. 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
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 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.
(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. 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. 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 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. 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. 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 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. 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. 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 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 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. 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 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. 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 Generalby 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. 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. 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 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. 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. 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 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. REGULATIONS AND ORDERS.
The Secretary may issue such regulations and orders as the
Secretary considers necessary to carry out this title.
SEC. 435. 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. 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.
(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. 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. 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., 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; 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.
Subtitle D--Authorization of Appropriations
SEC. 441. 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. 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. 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. 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.
(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 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.
And the Senate agree to the same.
Larry Combest,
Bill Barrett,
John Boehner,
Thomas W. Ewing,
Richard Pombo,
Charlie Stenholm,
Gary Condit,
Collin C. Peterson,
Cal Dooley,
Managers on the Part of the House.
Richard G. Lugar,
Jesse Helms,
Thad Cochran,
Paul Coverdell,
Pat Roberts,
Tom Harkin,
Patrick Leahy,
Kent Conrad,
Bob Kerrey,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The Managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 2559), 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, and for other
purposes, submit the following joint statement to the House and
the Senate in explanation of the effect of the action agreed
upon by the managers and recommended in the accompanying
conference report:
The Senate amendment struck out all of the House bill
after the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment which is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clarifying
changes.\1\ In the case where a provision of the House bill or
the Senate amendment is adopted under the Conference
substitute, report language appurtenant to such provision of
the House bill or Senate amendment, respectively, stands.
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\1\ In general, the Statement of Managers is arranged in order by
title of the conference substitute, and by the House bill within the
title.
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Short title
The House bill provides that this Act may be cited as the
``Agricultural Risk Protection Act of 1999.'' (Section 1)
The Senate amendment provides that this Act may be cited
as the ``Risk Management for the 21st Century Act.'' (Section
1)
The Conference substitute adopts the House provision
providing that the Act be cited as the ``Agricultural Risk
Protection Act of 2000.'' (Section 1)
TITLE I--CROP INSURANCE COVERAGE
Subtitle A--Crop Insurance Coverage
Premium schedule for additional coverage
The House bill amends section 508(d)(2) by striking
subparagraphs (B) and (C) and inserts a new subparagraph (B).
Paragraph (B) requires that the premium for insurance
coverage equal to or greater than 50/100 (or an equivalent
coverage) be sufficient to cover anticipated losses and a
reasonable reserve and include operating and administrative
expenses, as determined by FCIC based on an industry-wide
percentage of the amount of premium used to define loss ratio.
Amends section 508(e)(2) by striking paragraphs (B) and
(C) that provide the amount of premium to be paid by FCIC for
coverage of less than 65/100 but greater than 50/100, and for
coverage greater than 65/100, respectively.
Adds new paragraphs (B) through (G) that provide for the
new amount to be paid by FCIC for coverage levels ranging from
50 percent coverage to 85 percent coverage.
Provides that the amount to be paid by FCIC for each
coverage level (or equivalent coverage) is the sum of the
percent of premium provided below (plus an amount of
administrative and operating expenses determined under another
section).
50-54% coverage = 67%
55-59% coverage = 64%
60-64% coverage = 64%
65-69% coverage = 59%
70-74% coverage = 59%
75-79% coverage = 54%
80-84% coverage = 40.6%
85% coverage = 30.6%
(Producers may choose any price election up to 100 percent of
the price election, and coverage in 1 percent increments is
authorized as under current law.)
Provides that each policy or plan of insurance contain a
disclosure of the portion of premium paid by FCIC.
The House bill amends section 508(d) by adding a new
paragraph (3) to authorize FCIC to provide performance-based
discounts to producers with good production or insurance
experience.
Authorizes a 20 percent premium discount for the 2000
crop year for certain producers of specific crops that received
a discounted price due to Scab or Vomitoxin damage.
The House bill amends section 508(c)(5) to provide that
in the case of a cost of production or similar plan of
insurance, the expected market price (price election) is the
projected cost of producing the crop. (Section 101, 106 and
107)
The Senate amendment amends section 508(d)(2) by striking
subparagraph (C) and inserting a new (C) and (D) establishing
premium amounts.
Paragraph (C) requires that the premium for insurance
coverage equal to or greater than 65/100 but less than 75/100
(or a comparable coverage for a plan of insurance not based on
yield) be sufficient to cover anticipated losses and a
reasonable reserve and include operating and administrative
expenses, as determined by FCIC based on an industry-wide
percentage of the amount of premium used to define loss ratio.
Paragraph (D) requires that the premium for insurance
coverage equal to 75/100, 80/100, and 85/100 (or a comparable
coverage for a plan of insurance not based on yield) is
established at a level as indicated under paragraph (C).
Amends section 508(e) by striking paragraph (1) providing
that FCIC pay a portion of premium and inserts a new paragraph
relative to the same.
Provides under paragraph (1)(A) that FCIC pay a portion
of the premium as established in section 508(e)(2).
Amends section 508(e)(2) by striking paragraphs (B) and
(C) that provide for the amount of premium to be paid by FCIC
for coverage of less than 65/100 but greater than 50/100, and
for coverage greater than 65/100, respectively.
Adds new paragraphs (B) through (G) that provide for the
new amount to be paid by FCIC for coverage levels ranging from
50/100 to 85/100.
Provides that the amount to be paid by FCIC for each
coverage level (or comparable coverage for a plan of insurance
not based on yield) is the sum of the percent of premium
provided below (plus an amount of administrative and operating
expenses determined under another section).
50/100% coverage = 60%
55/100% coverage = 45%
60/100% coverage = 45%
65/100% coverage = 50%
70/100% coverage = 50%
75/100% coverage = 55%
80/100% coverage = 38%
85/100% coverage = 28%
(Producers must choose 100 percent price election to receive
correlating percentage of assistance, and availability of
coverage is limited to 5 percent increments).
Provides under new paragraph (H) that paragraphs (A)
through (G) are applicable for the 2001 through 2004 fiscal
years.
Amends section 508(a) by striking paragraph (3) relative
to exclusions for coverage and inserting a new paragraph (3)
relative to the same.
Provides conforming amendments amending section 508(e) by
striking paragraph (4) requiring individual and area crop
insurance coverage and by striking reference to such authority
under section 508(g)(2)(D).
The Senate amendment amends section 508(c) by striking
paragraph (5) relative to price levels and inserts a new
paragraph relative to price elections.
Requires FCIC to establish or approve a price level, or
expected market price, for each commodity insured.
Provides that the expected market price (1) not be less
than the projected market price of the crop; (2) may be based
on the actual market price of the crop at the time of harvest;
(3) in the case of revenue or similar policies be the actual
market price of the crop; or (4) in the case of cost of
production or similar policies be the cost of producing the
crop. (Section 103)
The Conference substitute adopts the Senate provision
relative to the expected market price with minor changes to
clarify intent. The Conference substitute adopts the House
provisions relative to premium amounts, performance-based
discounts, payment schedule, and premium payment disclosure
with certain changes. Language with respect to premium amounts
and payment schedule has been modified to clarify intent. The
provision providing discounts for producers of crops damaged by
scab is omitted. Premium assistance at the 75, 80, and 85
percent coverage levels are increased to 55 percent, 48
percent, and 38 percent, respectively, of the amount of premium
used to define loss ratio. Current statutory authority to offer
coverage in one percent increments is temporarily suspended.
(Section 101)
Premium schedule for other plans of insurance
The House bill amends section 508(h)(2) by striking the
second sentence limiting the portion of premium FCIC may pay
for innovative policies and by creating paragraphs (A) and (B).
Subparagraph (B) requires that in the case of a policy
submitted under section 508(h) (except paragraph (10) or
subsection (m)(4)), FCIC shall pay a portion of the premium
equal to the percentage, prescribed under section 508(e) for a
similar level of coverage, of the total amount of the premium
used to define loss ratio, and the dollar amount of the
administrative and operating expenses that would be paid by
FCIC under section 508(e) for a similar level of coverage.
(Section 102)
The Senate amendment amends section 508(e) by striking
paragraph (1) relative to requiring FCIC to pay a portion of
premiums and inserts a new paragraph (1) related to the same.
Provides under the new paragraph (1)(B) that FCIC may pay
a portion of the premium as established in 508(e)(2) for
innovative plans of insurance approved by FCIC under section
508(h). (Section 103)
The Conference substitute adopts the House provision
relative to premium assistance for all policies or plans of
insurance developed and approved under section 508(h) or 522 or
conducted under section 523 (except livestock pilot programs)
with certain changes. The administrative and operating costs
associated with all such policies or plans of insurance must
comply with section 508(k)(4), including any proportional
reductions that may apply. Section 508(k)(4), including any
proportional reductions, applies to all such policies or plans
of insurance whether developed and approved on, before, or
after the date of enactment of this Act. However, the effective
date of the amendments made by section 102 are delayed until
after the reinsurance year 2001 with respect to policies or
plans of insurance developed and approved subsequent to the
date of enactment. During the reinsurance year 2001, the
portion of the premium paid by the Corporation for such
policies or plans of insurance developed and approved
subsequent to the date of enactment may not exceed the dollar
amount authorized under the new payment schedule for multiple
peril crop insurance. Administrative and operating costs
associated with such policies during the reinsurance year 2001
are adjusted accordingly, subject to section 508(k)(4),
including any proportional reductions that may apply. (Section
102)
Catastrophic risk protection
The House bill amends section 508(b) by striking
paragraph (3) relative to yield and loss basis and inserts a
new paragraph (3) relative to the same.
Provides that, beginning with the 2000 crop year, FCIC
must offer producers a choice between the current CAT coverage
and an alternative CAT coverage that indemnifies the producer
on an area yield and loss basis, provides a higher combination
of yield and price election, and that FCIC determines is
comparable to ``CAT.''
The House bill amends section 508(b)(5) by adding a new
subparagraph (F) relative to payment of fees on behalf of
producers. Authorizes a cooperative association or nonprofit
trade association to pay ``CAT'' fees on behalf of consenting
producers.
Provides that licensing fees or other payments made by
approved insurance providers to a cooperative association or
nonprofit trade association in connection with the sale of
``CAT'' or ``buy-up'' insurance shall not be construed as a
rebate providing the producer receives prior notice of the fee.
Provides that nothing in the subparagraph limits the
ability of a producer to choose an agent or an insurance
provider or refuse ``CAT'' coverage purchased pursuant to this
subparagraph. Further requires that ``CAT'' policies sold under
such an arrangement must be through a licensed agent or
approved insurance provider.
Requires that participating cooperative associations,
nonprofit trade associations, and approved insurance providers
that operate under this subparagraph to encourage producer
members to purchase appropriate coverage.
The House bill amends section 508(b)(11) reducing loss
adjustment expense reimbursements relative to CAT policies to
approved insurance providers from 11 percent of imputed premium
to 8 percent of the same.
Amends section 508(k)(4)(A)(ii) by reducing
administrative and operating expense reimbursements to approved
insurance providers from 24.5 percent of premium used to define
loss ratio to 24 percent of the same.
Provides that amendments are applicable with respect to
the 2001 and subsequent reinsurance years. (Sections 108, 109
and 310(a)(1))
The Senate amendment requires any person that sells or
solicits the purchase of a policy or adjusts losses under the
FCIA in any state must be licensed and qualified to do business
in that state, and must comply with all state regulations
(including commission and anti-rebating regulations) as
required under state law. (Section 313)
The Conference substitute adopts the House provisions
relative to the provision of alternative catastrophic risk
protection and the reimbursement rate change for loss
adjustments associated with catastrophic risk protection. The
reduction in administration and operating cost reimbursement is
omitted. The Conference substitute further adopts the House
provision relative to the payment of catastrophic risk
protection fees by associations on behalf of member producers,
and the treatment of licensing fees received by associations in
connection with the issuance of insurance with changes.
Rebating in connection with the issuance of crop insurance
coverage is subject to the State laws in which the rebate is
made. If a cooperative association or trade association is
located in a State that permits rebating in connection with the
issuance of crop insurance coverage, the association may pay
catastrophic risk protection (CAT) fees on behalf of members in
that State or in a contiguous State. A report to Congress on
the operation and impact of this provision is required.
Finally, the Conference substitute increases the fees
associated with catastrophic risk protection from $60 to $100
per crop per county. (Section 103)
Administrative fee for additional coverage
The Conference substitute provides for an administrative
fee of $30 per crop per county to be paid by producers electing
coverage in excess of catastrophic risk protection. (Section
104)
Assigned yields and actual production history adjustments
The House bill amends section 508(g) by adding paragraph
(4) relative to adjustment in actual production history to
establish insurable yields.
Provides that this paragraph shall apply when FCIC uses
the APH of a producer to establish insurable yields for a crop
for the 2001 and subsequent crop years.
Provides that, if, for one or more of the crop years used
by a producer to establish APH, the producer's yield is less
than 60 percent of the applicable ``T'' yield, the producer may
exclude each of such crop years and replace the excluded yield
with a yield equal to 60 percent of ``T''. This section applies
retroactively to already recorded yields and prospectively to
future yields.
Amends section 508(g) by adding paragraph (5) relative to
APH adjustment to reflect participation in major pest control
efforts.
Requires FCIC to develop a methodology for adjusting the
APH of a producer's crop when the producer's farm is located in
an area where efforts have been undertaken to eradicate or
retard plant pests and disease, where the presence of the pest
or disease has been found to reduce applicable crop yields, and
where the efforts undertaken have been effective. Requires APH
adjustments to reflect the success of the effort undertaken.
(Section 103)
The Senate amendment amends section 508(g)(2)(B) by
requiring FCIC to assign a producer a yield for a crop where
the producer has not had a share of the production of the crop
for more than 2 years; has not before farmed the land; or
rotates to a crop that has not before been produced on the
farm.
The Senate amendment amends section 508(g) by adding
paragraph (4) relative to transitional adjustments for
disasters.
Defines ``a producer that has suffered a multiyear
disaster'' as a producer or successor entity that has suffered
a natural disaster during at least 3 of the immediately
preceding 5 crop years that resulted in a cumulative reduction
of at least 25 percent in APH of a crop.
Provides that, beginning with the 2001 crop year, a
producer of an insured crop that has suffered a multiyear
disaster may exclude 1 year of the crop's production history
for each 5 years included in the crop's APH.
Requires FCIC to pay for any increased premiums,
indemnities, and administrative and operating expenses that
result from the exercise of a producer to exclude 1 year of a
crop's production history.
Prohibits FCIC from limiting any increase in a producer's
APH due to the producer's actual production of the crop in
succeeding years until such time that the producer's APH has
recovered to the level obtained in the year before the first
year of multiyear disaster.
Rescinds FCIC authority allowing eligible producers to
exclude any 1 crop year in the first crop year where a policy
is available to adequately address natural disasters occurring
in multiple crop years.
Makes the paragraph applicable for the 2001 through 2004
reinsurance years. (Sections 104 and 105)
The Conference substitute adopts the Senate provision
relative to assigned yields and the House provision relative to
adjustments to actual production history with minor changes to
clarify intent. (Section 105)
Review and adjustment in rating methodologies
The House bill amends section 508(a) by adding a new
paragraph (7) relative to the review and adjustment in rating
methodologies.
Requires FCIC to periodically review the methodologies
employed for rating plans of insurance consistent with section
507(c)(2) relative to contracting for such services. Requires
FCIC to analyze the rating and loss history of policies and
plans of insurance for crops by area and make appropriate
adjustments for the 2000 crop year or as soon as possible where
premium rates are found to be excessive. (Section 104)
The Senate amendment requires FCIC to contract for the
study and development of alternative rating methodologies for
rating plans of insurance for ``CAT'' and ``buy-up'' coverage,
taking into account producers not electing to participate in
crop insurance and those electing only ``CAT'' coverage.
Requires that, with respect to such rating studies, a
priority be given to crops with the largest average acreage
nationwide but lowest percentage of producer participation at
buy-up coverage levels.
Requires FCIC to provide funding for rating studies from
the account established under section 516(b)(2)(A) of the FCIA,
and specifically authorizes $1 million for fiscal years 2001
and 2002 and $250,000 in fiscal years 2003 and 2004.
Provides that the paragraph relative to funding be
applicable for the fiscal years 2001 through 2004. (Section
202)
The Conference substitute adopts the House provision
relative to review and adjustment in rating methodologies with
a change to require such adjustments take place in the 2002
crop year and thereafter, rather than in the 2000 crop year and
thereafter. (Section 106)
The Managers urge the Corporation to complete the process
of developing alternative rating methodologies for all
insurable crops. The Managers also urge the Corporation to base
Multi-Peril Crop Insurance (MPCI) cotton rates in Texas on the
results of the analysis prepared on their behalf by researchers
at Montana State University and to adopt these rates beginning
with the 2001 crop year on the same basis as the Corporation
implemented revised MPCI Premium rates in the Mid-South and Far
West regions.
Quality adjustment
The House bill amends section 508(a) by adding a new
paragraph (9) relative to quality grade loss adjustment.
Requires that, consistent with subsection (m)(4) relative
to contracting for research requirements, FCIC enter into a
contract by the 2000 crop year to analyze quality loss
adjustment procedures and make adjustments necessary to more
accurately reflect local quality discounts, taking into account
actuarial soundness requirements and prevention of fraud,
waste, and abuse. (Section 112)
The Senate amendment strikes 508(a)(6) requiring
guidelines, reports, studies, and pilot programs relative to
the addition of new and specialty crops, and inserts a new
paragraph (6) relative to quality adjustment.
Requires FCIC to offer coverage that permits a reduction
in production for purposes of determining a loss to reflect any
production not meeting quality standards.
Allows producers to opt-out of quality adjustment
coverage and receive a reduction in premium equal to the cost
of the coverage.
Requires FCIC to contract for the study of quality loss
adjustment procedures and, based on the study, to adjust the
coverage to better reflect local quality discounts, taking into
consideration actuarial soundness and the prevention of fraud,
waste, and abuse. (Section 101)
The Conference substitute adopts the Senate provision
relative to quality adjustments with certain changes. Language
to permit producers to opt-out of such coverage and receive a
premium reduction is omitted. Language is included to permit
producers to elect such coverage, under limited circumstances,
on a basis smaller than a unit, and a provision relative to the
manner in which the Corporation sets quality standards is also
included. (Section 107)
Double insurance and prevented planting
The House bill amends section 508(a) by adding a new
paragraph (8) relative to prevented planting.
Allows producers to opt-out of prevented planting
coverage and receive a reduction in premium equal to the cost
of the prevented planting coverage.
Requires FCIC to provide an equal percentage level of
prevented planting coverage for each crop.
Limits prevented planting payments to producers prevented
from planting due to conditions generally affecting the area in
which the producer farms.
Authorizes a producer who received a prevented planting
payment to plant a second crop other than the crop prevented
from being planted on the same acreage, except that the second
crop is not eligible for NAP or crop insurance coverage.
Provides that a producer who elects to plant a second
crop which is not insurable or NAP eligible still qualifies for
AMTA loans and payments, CRP, and guaranteed and direct loans
and other benefits under the ConAct.
Requires FCIC to assign a producer who receives a
prevented planting payment and who elects to plant a second
crop a yield for the prevented crop for that year equal to 60
percent of the producer's actual production history for
purposes of future APH.
Denies a prevented planting payment to a producer who
plants a second crop before the latest planting date for the
crop prevented from being planted.
The House bill amends section 508(a) by adding a new
paragraph (10) relative to limitations on double insurance.
Prohibits a policy or plan of insurance for more than one
crop planted on the same acreage in the same crop year unless
the coverage for the additional crop is ``CAT'' coverage.
Provides an exception to the limitation on double
insurance where both crops are normally harvested within the
same crop year on the same acreage; there is an established
practice of double-cropping in the area and the additional crop
is customarily double-cropped in the area with the first crop;
a policy of insurance is offered for both crops; and the additional
crop is planted on or before the final or late planting date for that
crop. (Sections 110 and 201)
The Senate amendment is substantially the same as the
H.R. 2559 except the following additional provisions.
Makes the prevented planting paragraph applicable for the
2001 through 2004 crop years.
Requires that changes made to prevented planting coverage
be reflected in the rates for coverage not later than the 2001
reinsurance year. (Section 102)
The Senate amendment amends section 508(m) (subsection
(n) designated as (m) under section 207 of Senate amendments.
Requires that FCIC may only offer insurance or
reinsurance on 1 crop produced on specific acreage during a
crop year, unless there is an established practice of double-
cropping in an area, the additional insurance is offered to a
crop that is customarily double-cropped in the area, and the
producer has a history of double-cropping or the acreage has
historically been double-cropped. (Section 308)
The Conference substitute provides limitations with
respect to double insurance and prevented planting coverage.
The Conference substitute establishes a new Section 508A for
both double insurance and prevented planting and provides the
following definitions:
``First Crop'' means the first crop of the first
agricultural commodity insured and planted for harvest, or
prevented from being planted, on specific acreage during a crop
year.
``Second Crop'' means a second crop of the same or
different agricultural commodity following the first crop that
is planted for harvest on the same acreage as the first crop in
the same crop year. However, the term does not include a
replanted crop.
``Replanted Crop'' means the second planting of the first
crop on the same acreage in the same crop year, if the
replanting is required by the terms of the policy of insurance
on the first crop.
In the case of double insurance, the Conference
substitute provides a producer with two options if a first crop
has a total or partial insurable loss. If the producer chooses
not to plant a second crop, then the producer is entitled to
100 percent of the indemnity payment for the first crop.
If the producer plants a second crop, then the producer
will receive an initial indemnity payment up to 35 percent of
the total calculated indemnity payment for the first crop. The
Managers intend that the Secretary adjust the percentage paid
as necessary to prevent abuse of the program. If the producer
is not paid an indemnity on the second crop, then the producer
will receive an additional indemnity payment equal to the total
calculated indemnity on the first crop less the initial
indemnity payment. If an indemnity is paid with respect to the
second crop, then the producer is not entitled to receive the
additional indemnity payment with respect to the first crop.
In the case of a producer who chooses to plant a second
crop, the premium owed for insurance on the first crop will be
reduced commensurate with any reduction in indemnity payment
received on the first crop. If no indemnity is paid on the
second crop, then the producer owes the full premium for
insurance on the first crop.
With regard to prevented planting, the Conference
substitute provides a producer with two options if a first crop
is prevented from being planted. If the producer chooses not to
plant a second crop, then the producer may collect 100 percent
of the prevented planting guarantee for the first crop.
If the producer plants a second crop, then the producer
will receive up to 35 percent of the prevented planting
guarantee for the first crop. The Managers intend that the
Secretary adjust the percentage paid as necessary to prevent
abuse of the program. In addition, except for producers who
double crop in a double cropping area, a producer who plants a
second crop will be assigned a recorded yield of 60 percent of
the producer's actual production history for the crop on which
a prevented planting guarantee payment is received. This will
be used in determining a producer's actual production history
for subsequent crop years for the first crop. The Corporation
may only pay the prevented planting guarantee to a producer if
the conditions that prevented the first crop from being planted
have also generally affected other producers in the area. In
addition, the Corporation may not make a prevented planting
guarantee payment for the first crop in the case of any
producer who plants a second crop before the latest planting
date for the first crop.
In the case of a producer who chooses to plant a second
crop, the producer's premium for the first crop will be reduced
commensurate with any reduction in indemnity payment received
on the first crop.
The Conference substitute provides that, notwithstanding
the restrictions placed on double insurance and prevented
planting, a producer will receive full indemnity payments and
prevented planting guarantees on 2 or more crops in a double
cropping area. There must be an established practice of
planting 2 or more crops for harvest in the same crop year in
the area, as determined by the Corporation, and an additional
coverage policy or plan of insurance must be offered with
respect to the commodities planted on the same acreage in the
same crop year. In addition, the producer must have a history
of planting 2 or more crops in the same year; the applicable
acreage must have historically been planted to 2 or more crops
in the same year; and the second or subsequent crops must be
customarily planted after the first crop on the same acreage in
the same year. The Managers intend that in determining when an
agricultural commodity is customarily double cropped in a
double cropping area, that the Corporation consider the farming
and irrigation practices applicable to the crops in the area.
(Section 108)
Noninsured crop disaster assistance program
The House bill amends section 196(i) of the AMTA in
paragraph (1) by striking ``gross revenues'' wherever it
appears and inserting ``gross income'' and by striking
paragraph (4) and adding a new paragraph (4).
Paragraph (4) provides that a person with a qualifying
adjusted gross income of greater than $2 million during the
taxable year is ineligible to receive NAP assistance.
The House bill also amends section 196(b) of the FAIR Act
of 1996 to require that to be eligible for NAP, producers must
provide annually to the Secretary, acting through the agency,
records of crop acreage, acreage yields, and production for
each eligible crop. (Sections 111 and 205)
The Senate amendment amends section 196(a)(2) of AMTA by
adding a new subparagraph (C) allowing the Secretary to
consider all varieties of a crop eligible for NAP as a single
eligible crop for program purposes.
Amends section 196(b)(1) relative to when a producer must
apply for NAP assistance, striking discretionary authority for
the Secretary to determine the application deadline and
inserting the requirement that producers apply not later than
March 15.
Strikes paragraph 196(b)(2) providing the Secretary
discretionary authority pertaining to what production records a
producer must submit, and inserting a requirement that, to be
eligible for NAP, producers must annually submit crop acreage,
acreage yields, and production for each crop.
Amends paragraph 196(b)(3) to require annual reporting of
acreage planted or prevented from being planted.
Strikes section 196(c) relating to loss requirements and
inserts a new subsection (c) relative to the same.
Provides that a producer of an eligible crop must have
suffered a loss of a noninsured crop as a result of drought,
flood, or other natural disaster as determined by the
Secretary.
Authorizes the Secretary to make payments under NAP once
a drought, flood, or other natural disaster determination is
made.
Changes the prevented planting payment trigger for
eligible crops from a 35 percent acreage threshold to a 15
percent acreage threshold.
Authorizes the Secretary to make a NAP payment
irrespective of any area loss trigger.
Amends section 196 by inserting a new subsection (j) and
(k) relative to new eligible crops and service fees,
respectively, and designating the current subsection (j) as
subsection (l).
Provides under section 196(j)(1) that the NAP payment to
a producer of an eligible crop that is new to an area will be
equal to 35 percent of the established yield for the first year
the crop is produced.
Provides that the NAP payment to a producer of an
eligible crop that is new to an area will be equal to 45
percent of the established yield for the second through fourth
years the crop is produced, except where a NAP payment was made
in the first year in which case the payment is 35 percent.
Makes a producer of an eligible crop ineligible for a NAP
payment where the producer collects a NAP payment in the first
2 crop years, until such time that the crop is produced for 3
consecutive crop years with no reported losses.
Provides for a service fee for NAP eligibility under
section 196(k), requiring producers to pay the Secretary an
amount equal to the fee for a CAT policy ($60 per crop per
county) or $200 per producer per county, not to exceed $600 per
producer. Provides for the waiver of NAP fees for limited
resource producers.
Provides that NAP fees collected by the Secretary be
deposited in the CCC Fund. Makes amendments under this section
applicable for the 2001 through 2004 crop years. (Section 106)
The Conference substitute adopts the Senate provision
relative to the Noninsured Crop Disaster Assistance Program
with changes. Producers are required to make an application for
NAP eligibility not later than 30 days before the beginning of
the coverage period. Changes relative to prevented planting and
yields for new NAP eligible crops provided under the Senate
amendment are omitted. The NAP fee provided in the Senate
amendment is modified to require producers to pay the lesser of
$100 per crop per county or $300 per producer per county, but
not to exceed $900 per producer. (Section 109)
Subtitle B--Improving Program Integrity
Improving program compliance and integrity
The House bill amends section 506(q) by designating
paragraphs (1) and (2) as (2) and (3), creating paragraph (1)
relative to purposes, and creating new paragraphs (4) through
(7) relative to certain compliance requirements.
Paragraph (4) requires the Secretary to develop and
implement a coordinated plan for FCIC and FSA to reconcile
information received from producers and, beginning with the
2000 crop year, requires FCIC and FSA to annually conduct such
reconciliation to identify and address any discrepancies.
Paragraph (5) requires the Secretary to develop and
implement a coordinated plan for FSA to assist FCIC in ongoing
monitoring of FCIA programs, including conducting fact findings
relative to allegations of fraud, waste or abuse at the request
of FCIC or on its own initiative after consultation with FCIC;
reporting fraud, waste, abuse, and program vulnerabilities to
FCIC; assisting FCIC in auditing a statistically appropriate
number of claims. Also provides that the Secretary ensure that
FSA personnel are appropriately trained and, at minimum,
receive the same training and testing as loss adjusters.
Requires maintenance of effort on the part of approved
insurance providers in conducting audits of claims, requires
FCIC to respond within 90 days of receiving notice by approved
insurance providers of intentional violations, and requires a
coordinated response to violations by FCIC and approved
insurance providers.
Paragraph (6) requires the Secretary to establish a
mechanism under which state FSA committees are consulted
concerning policies and plans of insurance offered in the
state.
Paragraph (7) requires the Secretary to submit an annual
report to the House and Senate Agriculture Committees
containing findings relative to the efforts undertaken in
paragraphs (4) and (5), identifying specific incidences of
fraud, waste, and abuse along with actions taken to eliminate
the same.
The House bill amends section 506(n) by striking
``penalties'' where it occurs and inserting ``sanctions'' and
redesignating paragraph (2) as paragraph (3).
Strikes paragraph (1) relative to false information and
inserts new paragraph (1) relating to the same.
Provides that a producer, agent, loss, adjuster, approved
insurance provider, or other person that intentionally provides
false or inaccurate information to FCIC or to an approved
insurance provider with respect to a policy may, after notice
and opportunity for a hearing, be subject to sanctions.
Provides that sanctions include a civil fine not to
exceed the greater of the amount of the pecuniary gain obtained
by the violator or $10,000; debarment of a producer from
specified farm programs for up to 5 years; and debarment of other
persons from benefits under the FCIA for up to 5 years. Also provides
that FCIC may require the producer to forfeit any premium owed
notwithstanding denial of a claim or collection of overpayment if the
violation is material.
Requires sanctions be disclosed on each policy. (Sections
202 and 203)
The Senate amendment strikes section 506(n), relative to
penalties for false information, and provides a new subsection
(n) relative to sanctions for program noncompliance and fraud.
Provides that a producer, agent, loss, adjuster, approved
insurance provider, or other person that intentionally provides
false or inaccurate information to FCIC or to an approved
insurance provider with respect to a policy may, after notice
and opportunity for a hearing, be subject to a sanction under
this subsection.
Provides that a producer, agent, loss adjuster, approved
insurance provider, or other person that intentionally fails to
comply with an FCIC requirement is subject to sanctions, and
that any such person (other than a producer) intentionally
failing to comply with an SRA is also subject to sanctions.
Provides sanctions for material violations relative to
providing false information and compliance failure. Sanctions
include a civil fine not to exceed the greater of the amount of
the pecuniary gain obtained by the violator or $10,000;
debarment of a producer from all farm programs for up to 5
years; and debarment of other persons from benefits under the
FCIA for up to 5 years.
Requires the Secretary to consider the gravity of the
violation in determining whether to impose a sanction and the
amount or degree of any sanction imposed. Also requires
disclosure of sanctions on each policy of insurance.
Requires that funds collected under this subsection be
deposited into the insurance fund provided under section
516(c)(1) of the FCIA (general FCIA insurance fund). Amends
section 516(c)(1) of the FCIA by striking paragraph (1) and
inserting a new paragraph (1) providing that, along with
premium income and amounts under section 516(a)(2), sanctions
fees are to be deposited in this fund.
The Senate amendment amends section 506(q) of the FCIA,
relative to program compliance, by adding at the end paragraphs
(3) and (4).
Paragraph (3) requires FCIC to develop procedures for an
annual review of each agent and loss adjuster by approved
insurance providers, oversee such review, and consult with
approved insurance providers relative to any remedial action
required.
Requires FCIC to file a report with the House and Senate
Agriculture Committees by the end of each fiscal year relative
to compliance, along with recommendations for any necessary
legislative or administrative changes. (Sections 303 and 304)
The Conference substitute adopts the House provisions
relative to improving compliance and integrity with
modifications. Procedures with respect to FSA inquiries into
fraud, waste, and abuse as well as notice and response
requirements concerning allegations of fraud, waste, and abuse
are clarified. The Secretary is required to establish
procedures by which the Corporation will be able to identify
agents and loss adjusters with disparate performance records in
order to conduct a review and take remedial action where
appropriate. Certain information, including the name and
identification number of each insured and the crop to be
insured, the elected coverage level, and price election
selected must be received by the Corporation approximately 30
days subsequent to the sales closing date. The Conference
substitute also adopts the Senate provision relative to
sanctions for program noncompliance and fraud, with a minor
change to exclude the failure to comply with a Standard
Reinsurance Agreement from the class of activities that would
trigger the imposition of sanctions enumerated under this
section. The Conference substitute further adopts the Senate
provision to require the Corporation to develop procedures for
approved insurance providers to review the performance of
agents and loss adjusters. Finally, the Conference substitute
adopts provisions to require the Secretary to upgrade
information management systems and use data mining and data
warehousing technologies, including contracting with private
entities with expertise in this area, in implementing
compliance provisions. Limited funding is authorized for fiscal
years 2001 through 2005 to carry out these compliance
activities, excluding salaries. (Section 121)
In an effort to combat fraud and abuse in the crop
insurance program, the Managers direct the Secretary to develop
and implement a coordinated plan for the Farm Service Agency to
assist the Corporation in monitoring and reporting on crop
insurance program activity at the local field level. In
addition, the Corporation must establish a working relationship
with insurance providers in order that information regarding
fraud, waste, and abuse may be reported to the Corporation
without fear of legal reprisal to the insurance providers. The
Managers expect the Secretary to ensure that each of the agency
roles are clearly defined with the Corporation responsible for
implementing all rules and regulations relating to the
insurance program.
The Managers expect that the Corporation will make full
use of the capabilities of information management systems,
specifically data warehousing and data mining technologies,
both within or outside of the Federal government, to fulfill
the requirements of this section to improve the compliance and
integrity of the Federal crop insurance program. The Managers
expect the Corporation to use funds made available by this Act,
or otherwise available, to contract with the Center for
Agribusiness Excellence at Tarleton State University and the
Center for Agribusiness and Agrotechnologies at Bradley
University for management and development of a system to
implement the requirements of this section.
The Managers direct the Corporation to place the highest
financial priority and emphasis on the interactive computer
operations to ensure that participating insurance companies are
able to accurately transmit financial data back to the agency.
Protection of confidential information
The House bill amends section 502 by adding a new
subsection (c) relative to the protection of confidential
information.
Prohibits the Secretary, any other officer, employee, or
agency of USDA, an approved insurance provider and its
employees and contractors, and any other person from disclosing
producer-derived information to the public unless it is
transformed into a statistical or aggregate form that does not
reveal the producer's identity.
Provides for penalties consistent with section 1770(c) of
the Food Security Act of 1985, including fines up to $10,000
and or imprisonment for up to 1 year. (Section 204)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision
protecting producer confidentiality with a minor change to
allow producers to consent to the release of otherwise
protected information as long as program eligibility is not conditioned
upon the release. (Section 122)
Good farming practices
The House bill amends section 508(a)(3)(C) relative to
losses excluded from coverage by clarifying that scientifically
sound sustainable and organic farming practices are good
farming practices. (Section 309)
The Senate amendment is substantially the same as the
House bill.
The Conference substitute adopts the Senate provision
relative to the inclusion of scientifically sound sustainable
and organic farming practices as good farming practices for
purposes of what constitutes an insurable loss under the
Federal Crop Insurance Act. The Conference substitute further
requires that producers be provided with an informal
administrative review of a determination regarding good farming
practices but proscribes any such review pursuant to the
National Appeals Division. Producers have a right to judicial
review relative to a determination regarding good farming
practices without having to exhaust any informal administrative
review. However, any determination regarding good farming
practices may not be reversed under a judicial review unless it
is found to be arbitrary or capricious. (Section 123)
The Managers understand that producers of organic cotton
who destroy their crop when it has been exposed to chemicals
used in boll weevil eradication are currently being penalized
relative to their actual production history despite the fact
that they do not qualify for a crop insurance indemnity. The
Managers expect the Corporation to immediately rectify this
inequity with respect to any producer of an organic crop who
must destroy that crop in order to maintain organic
certification. To the extent that no indemnity is received for
a lost crop under these circumstances, no penalty relative to
actual production history should obtain.
Records and reporting
The House bill amends section 508(f)(3)(A) of the FCIA
relative to producer reporting requirements.
Requires producers participating in the crop insurance
program to annually report records acceptable to the Secretary
regarding crop acreage, acreage yields, and production for each
crop insured.
Amends section 506(h) of the FCIA by requiring the
coordination of records kept under the FCIA and under the NAP
program to avoid duplication, to streamline submission
procedures, and to enhance accuracy.
Provides that such records collected under NAP and the
FCIA be made available to appropriate state and federal
agencies to carry out these programs and other agricultural
programs and related responsibilities.
Amends section 196(b) of the FAIR Act of 1996 to require
that to be eligible for NAP, producers must provide annually to
the Secretary, acting through the agency, records of crop
acreage, acreage yields, and production for each eligible crop.
(Section 205)
The Senate amendment amends section 508(f)(3)(A) of the
FCIA relative to producer reporting requirements.
Requires producers participating in the crop insurance
program to annually report records acceptable to the Secretary
regarding crop acreage, acreage yields, and production for each
crop insured.
Amends section 506(h) of the FCIA by requiring the
coordination of records kept under the FCIA and under the NAP
program to avoid duplication, to streamline submission
procedures, and to enhance accuracy.
Provides that such records collected under NAP and the
FCIA be made available to appropriate state and federal
agencies to carry out these programs and other agricultural
programs and related responsibilities.
The Senate amendment also strikes paragraph 196(b)(2)
providing the Secretary discretionary authority pertaining to
what production records a producer must submit, and inserting a
requirement that, to be eligible for NAP, producers must
annually submit crop acreage, acreage yields, and production
for each crop. Amends paragraph 196(b)(3) to require annual
reporting of acreage planted or prevented from being planted.
(Sections 306 and 106)
The Conference substitute adopts the House provision with
changes to omit provisions dealt with elsewhere in the Act.
(Section 124)
Subtitle C--Research and Pilot Programs
Research and development
The House bill amends section 508(h) by adding a new
paragraph (6) relative to reimbursement of research,
development, and maintenance costs.
Requires FCIC to reimburse an applicant for research,
development, and maintenance costs directly related to a policy
submitted to and approved by the Board and, if applicable, sold
to producers.
Authorizes payments to applicants beginning with fiscal
year 2001 and limits reimbursement for maintenance to no more
than 4 reinsurance years from approval, after which FCIC
assumes maintenance of successful policies.
Provides that payments under this paragraph be considered
payment in full for research and development and any property
rights.
Requires FCIC to determine the amount of reimbursement
based upon the complexity of the policy or material and the
size of the area to be served. Requires FCIC to issue final
regulations not later than October 1, 2000.
The House bill also authorizes $55 million for each
fiscal year for reimbursement and direct contracting for
research and development of new policies.
The House bill amends section 508(m) by adding a new
paragraph (4).
Paragraph (4) requires FCIC to make full use of the
reimbursement provisions of section 508(h) to encourage and
promote private research and development of new policies and
plans of insurance.
Provides that where FCIC determines that a crop,
including a specialty crop, is not adequately served by crop
insurance, FCIC may enter into contracts directly with any
person or entity with experience in crop insurance or farm or
ranch risk management, including universities, approved
insurance providers, and trade and researchorganizations, to
conduct research and development, without regard to the limitations
contained in the FCIA.
Provides that the authority of FCIC to contract for the
research and development of policies, includes research and
development for policies based on adjusted gross income, cost
of production, quality losses, and an intermediate base program
with a higher coverage and cost than ``CAT''.
Delays effective date of contracting authority until
October 1, 2000.
Provides that FCIC may offer any policy developed under
this subparagraph that is approved by the Board.
Requires FCIC to contract for research and development
regarding one or more revenue coverage plans involving current
or new market instruments. Requires FCIC to report the results
of the contract within 15 months from enactment of this
paragraph.
Amends section 508(m)(2) relative to the prohibition of
FCIC research with respect to risk protection generally
available from the private sector, to prohibit FCIC from
conducting its own research and development of new policies on
or after October 1, 2000. Provides that FCIC may continue to
offer any policies developed by FCIC before that date.
Amends section 508(m) by adding a new paragraph (5),
relative to partnerships for risk management development and
implementation.
Authorizes FCIC to enter into partnerships with public
and private entities to increase the availability of loss
mitigation, financial, and risk management tools for producers
of crops covered under NAP and other under-served and specialty
crop producers.
Authorizes FCIC to enter into partnerships with CSREES,
ARS, NOAA, and other appropriate public and private entities
with demonstrated ability in developing and implementing risk
management and marketing options for specialty and under-served
crops.
Provides a list of objectives to be obtained as a result
of any partnerships.
Provides that funds not used for reimbursements or for
direct contracting for specialty and under-served crops may be
used by FCIC to enter into such partnerships.
Provides that funding for partnerships during fiscal
years 2001 through 2004 are available where amounts used for
reimbursements and direct contracting are less than $44
million, $47 million, $50 million, and $52 million for fiscal
years 2001 through 2004, respectively, and where the amount for
partnerships does not exceed the difference between the amounts
provided above and the amount actually spent thereon.
This paragraph is applicable beginning on October 1,
2000.
The House bill amends section 508(h)(6) by adding a new
subparagraph (E) relative to expenditures on reimbursements and
direct contracting for research and development.
Provides that of the amounts made available for
reimbursements and direct contracting for research and
development, $25 million shall be reserved for direct
contracting for specialty and under-served crops. Provides that
any unused portions of the reserved amount may be used for
reimbursements, with priority for under-served crops. Also
provides that of the amounts made available for reimbursements
and direct contracting for research and development, more than
$25 million may be used for contracting for specialty and
under-served crops where necessary.
Authorizes $55 million for each fiscal year for
reimbursement and direct contracting for research and
development of new policies.
Amends section 516(a)(2) by adding a new subparagraph (D)
authorizing appropriations for costs associated with research,
development, and maintenance costs.
Amends section 516(b)(1) by adding a new subparagraph (E)
authorizing reimbursements, research, and development costs to
be paid by the FCIA Fund. (Section 302, 303 and 304)
The Senate amendment provides that with respect to
research and analysis concerning any crop insurance issue,
including outreach, education, pilot programs, or the
development of new plans of insurance, FCIC is limited to the
authority provided under the newly created section 522 and the
funds made available under section 516(b)(2)(A) of the FCIA
when contracting or reimbursing research costs related to
policy development or modification. Newly created section 523
relative to specialty crops is exempted from this limitation.
Requires that FCIC establish the development of a
pasture, range, and forage program to promote land stewardship
as ``1 of the highest research and development priorities.''
Requires FCIC to contract for a study to determine
whether the development of a plan of insurance providing
coverage for multiple years would curb fraud and abuse, and
requires a report on findings to the House and Senate
Agriculture Committee within 1 year of enactment.
The Senate amendment also amends the FCIA by adding at
the end section 523, relative to specialty crops.
Authorizes the Specialty Crops Coordinator to make grants
or enter into contract for research and development of policies
to serve under-served specialty crops and reimburse costs
associated with such research and development.
Authorizes the Specialty Crops Coordinator to enter into
partnerships with public and private entities to increase the
availability of risk management tools for specialty crop
producers.
Authorizes $20 million in funding from section 516(c)(1)
(FCIA Fund) for each of fiscal years 2001 through 2004 to enter
into cooperative agreements with public and private entities to
develop and implement risk management tools for specialty crop
producers. Provides that such amounts may not come from section
516(b)(2)(A).
Provides a list of objectives to be obtained as a result
of any partnerships.
Prohibits FCIC from establishing a sales closing date for
specialty crops that is before the end of the 120-day period
beginning on the date of the final release of materials for
policies from RMA and the Specialty Crops Coordinator.
Allows producers of specialty crops to purchase new
coverage or increase coverage levels at any time during the
insurance period, subject to a 30-day waiting period and an
inspection by FCIC to verify acceptability of the approved
insurance provider, provided FCIC is able to adequately rate
the risk.
Requires FCIC and the Specialty Crop Coordinator to
jointly conduct feasibility studies for developing new policies
for specialty crops, and requires a progress report to Congress
not later than 1 year from the date of enactment.
The authority for the Specialty Crops Coordinator to
enter into partnerships and the extension of the sales closing
date and time for purchase of coverage is applicable for the
2001 through 2004 fiscal years.
Requires that not later than 180 days after enactment,
the Secretary must submit a report to the President and the
House and Senate Agriculture Committees assessing USDA's
progress in expanding coverage to specialty crops and USDA's
plans to continue that progress.
Also requires that the report include an assessment of
whether ``CAT'' has resulted in uniform quality of protection
for all regions of the country and fulfilled the goal of
increased participation, especially in states with
traditionally low participation rates and high proportion of
specialty crops. The report should also address the question of
whether USDA should resume offering CAT and performing loss
adjustments.
The Senate amendment strikes subsection (m) providing
FCIC its current authority to conduct research, surveys, pilot
programs, and investigations relating to crop insurance and
agriculture-related risks and losses. Subsection (n) is
designated as subsection (m).
Amends section 516(b)(2)(A) to increase mandatory funding
for research and development expenses from not to exceed $3.5
million for each fiscal year to $4.5 million in fiscal years
2001 and 2002, $3.75 million in fiscal years 2003 and 2004, and
returning to $3.5 million for each subsequent fiscal year.
Provides a conforming amendment relative to section
references in section 518, defining agricultural commodity.
(Section 202, 207 and 309)
The Conference substitute adopts the House provisions
relative to reimbursements, contracting, and partnership for
policy research and development with certain changes. The
provision includes authority to reimburse research and
development costs associated with policies developed before
enactment. Reimbursement for research and development costs is
limited to policies that are determined to be marketable.
Reimbursement for maintenance is limited to 4 reinsurance years
from the date of Board approval after which the provider
responsible for maintenance has three options. The provider may
transfer maintenance responsibility to the Corporation, charge
a Board-approved fee to be paid by other providers electing to
offer the policy, or continue to maintain the policy and absorb
the appurtenant costs. The provision authorizes the Corporation
to enter into contracts for research and development on
policies in order to (1) increase participation in States where
the Corporation determines there is low crop insurance
participation or availability, and the State is under-served by
the program; (2) increase participation in areas that are
under-served by the program; and (3) increase participation by
producers of under-served agricultural commodities, including
specialty crops. The provision requires the Corporation to
consult with groups representing producers that would be served
by a policy that is the subject of the research and development
before entering into a contract. The Conference substitute
adopts the Senate provisions to require the Corporation to
establish the development of a pasture, range, and forage
program as one of the highest priorities and to require the
Corporation to contract for a study relative to offering
coverage for multiple years to reduce fraud, waste, and abuse.
Provisions are included to make partnership authority under
this section eligible for funding for contracting, and to
reserve $5 million of such funding for contracting for policy
development to increase participation in States where the
Corporation determines there is low crop insurance
participation or availability and the State is under-served by
the program. The Managers consider it a high priority to
develop policies that work for producers and products in these
low participation states. The provision also requires the
Corporation to contract for research and development relative
to a cost of production policy. Finally, funding for
reimbursements and contracting are limited to new levels.
(Section 131)
The Managers recognize that it is difficult to predict
the range of new and innovative approaches to the private
development of insurance products under the new environment
created under this bill. There is no reason to believe all
policies will necessarily fit under the current structure of
yield-based or revenue-based products; some may focus on a
narrower array of perils than are now included in available
coverage. These could include plans to protect against the
uncontrollable risks associated with the use of certain
conservation techniques such as integrated pest management,
best management practices, or conservation tillage systems. The
Corporation should take such factors into account when
considering approval of such proposals.
The Managers expect the Corporation to study the
feasibility of offering a vine and tree replacement program as
an option for growers of grapes, citrus, tree fruit, nut, kiwi,
blueberries, and other high-value, permanent crops.
Pilot program
The House bill amends section 508(h) by repealing
obsolete pilot programs contained in paragraphs (6) and (8)
relative to cost of production and assigned yields,
respectively.
Authorizes FCIC to offer pilot programs on a regional,
state, or national basis after considering the interests of
producers and the interests and risks of FCIC, and to operate
the pilot program, including any modifications, for up to 3
years with authority to extend for additional periods.
Amends section 508(h)(4) to require FCIC to promulgate
regulations within 180 days of enactment to establish
guidelines for the submission and Board review of policies
submitted under section 508(h), including streamlined
guidelines governing the submission and Board review of pilot
programs that the Board determines are limited in scope and
duration and involve a reduced level of liability to the
government and an increased level of liability to the approved
insurance provider.
Provides that FCIC must notify the applicant of its
intent to disapprove a low risk pilot program within 60 days of
the submission.
Requires FCIC to approve or not approve a low risk pilot
program within 90 days of submission, and requires a detailed
explanation for any disapproval.
Provides that where FCIC fails to make a timely
determination with respect to a low risk pilot program, the
pilot is approved for the initial reinsurance year unless an
extension is agreed to.
Amends section 508(h) by striking paragraph (10) relative
to time limits for submission of new policies and inserts a new
paragraph (10) relative to livestock pilot programs.
Requires FCIC to conduct 1 or more livestock pilot
programs to evaluate risk management tools, including futures
and options contracts and policies and plans ofinsurance,
including protection for environmental liability, and requires that the
greatest number and variety of programs be evaluated.
Requires FCIC to begin the conduct of livestock pilot
programs during the 2001 fiscal year and without regard to the
limitations in the FCIA, except that no coverage may be offered
where that coverage is generally available from private
insurance.
Requires FCIC to conduct the livestock pilot programs in
a number of counties that will facilitate comprehensive
evaluation, and provides that any producer of eligible
livestock owning a farm or ranch in a selected county is
eligible to participate.
Defines livestock as cattle, sheep, swine, goats, and
poultry.
Requires FCIC to operate all livestock pilot programs so
that, to the maximum extent practicable, associated costs
(other than for research and development) are not expected to
exceed $20 million for fiscal year 2001, $30 million for fiscal
year 2002, $40 million for fiscal year 2003, and $55 million
for fiscal year 2004 and each subsequent fiscal year.
Amends section 518 of the FCIA by striking the livestock
exclusion from insurance. (Section 105)
The Senate amendment authorizes FCIC to conduct research,
surveys, pilot programs, and investigations relating to crop
insurance and agriculture-related risks and losses based on
proposals developed by FCIC and others to determine their
suitability to meet producer needs.
Provides an exception that FCIC may not conduct such
research activity to provide risk protection where such
protection is generally available from the private sector.
Provides under newly created section 522(a)(3) a list of
eligible activities for research activity, including after
October 1, 2000, livestock and livestock products, wild salmon,
and loss or damage to trees or fruit due to ``sharka.''
Clarifies the scope of pilot programs under newly created
section 522(a)(4). Authorizes FCIC to offer pilot programs on a
regional, state, or national basis after considering the
interests of producers and the interests and risks of FCIC, and
to operate the pilot program, including any modifications, for
up to 4 years with authority to extend for additional periods.
Also authorizes FCIC to provide premium discounts to producers
using whole farm or single crop units of insurance and to cross
state and county boundaries to form units.
Requires under newly created section 522(a)(5) that FCIC
evaluate each pilot program and submit a report to the Senate
and House Agriculture Committees with a recommendation on
whether to offer the pilot on a national basis.
Authorizes under newly created section 522(a)(6) funds to
carry out research and pilot programs (except for research
related to alternative rating methodologies authorized under
section 202 of the Senate amendment). Authorized amounts may
not exceed $10 million in FY2001, $30 million in FY2002, $50
million in FY2003, and $60 million in FY2004.
Provides that provisions under section 201 of the Senate
amendment that require funding are applicable for fiscal years
2001 through 2004, including authority for timber, wild salmon,
and livestock coverage, general pilot authority, and general
research funding.
The Senate amendment provides that the purpose of the
pilot program is to determine what incentives are necessary for
approved insurance providers to develop and offer risk
management products, rate premiums, and competitively market
such products.
Requires FCIC to establish a pilot program under which
approved insurance providers may propose to the FCIC Board loss
of yield or revenue insurance coverage for 1 or more
commodities, including commodities not insurable (but excluding
livestock), rates of premium, and underwriting systems.
Requires FCIC to approve the risk management product
before it can be marketed.
Provides that the FCIC Board may approve a risk
management product submitted if the Board determines that the
interests of producers are protected; premium rates are
actuarially appropriate and underwriting systems are
actuarially appropriate and adequate; the product is reinsured
under the FCIA, through private reinsurance, or self-insured;
the size of the pilot is adequate; the product is not generally
available through private insurance plans; and any other
requirements imposed by FCIC.
Requires that all information concerning a risk
management product be considered confidential commercial or
financial information, and provides the standard that if the
Secretary could withhold such information, the information may
not be released.
Defines original provider as an approved insurance
provider that submits a product for approval under this
section. Provides that risk management products approved under
this section may only be sold by the original provider, unless
another approved insurance provider desiring to offer the
product pays a fee established by the original provider.
(Sections 201 and 205)
The Conference substitute adopts the Senate provisions
relative to the scope of pilot programs and to a pilot program
for insurance coverage on wild salmon. Pilot authority for
insurance coverage for timber due to drought, flood, fire or
other natural disaster and for trees or fruit affected by plum
pox (including quarantined trees or fruit) are omitted because
statutory authority currently exists to insure the crops
against these perils. The House bill language relative to
expedited consideration of low risk pilot programs is omitted.
The Conference substitute adopts the House bill's provision
relative to livestock pilot programs, except that pilot
authority to offer insurance coverage for environmental
liability is omitted and the definition of livestock is
modified to include but not be limited to the livestock
referenced in the House bill. Funding for all livestock
programs is also limited to new levels. The provision
authorizes a premium-rate reduction pilot program. Finally,
House bill language clarifying regulatory jurisdiction over
policies or plans of insurance is included but in a separate
section of the Act. (Section 132)
The Managers intend for the Corporation to proceed with
crop insurance coverage for sorghum silage beginning with the
2001 crop year by implementing the pilot program that was
drafted and presented to grain sorghum producers in October of
1999. The Corporation shall develop the program in a way that
provides sorghum silage the same coverage as corn silage with
the program to be fully developed by September 30, 2000.
The Managers are aware of proposals to implement a pilot
insurance policy to provide coverage on timber losses resulting
from drought, flood, fire, or other naturaldisaster. The
Managers expect the Corporation to implement this pilot under current
authority, with special consideration given to Florida.
The Managers are aware of the serious concerns the plum
pox virus is causing in several states, including Pennsylvania.
The Managers believe the Corporation has the same authority to
develop a policy to provide coverage for plum pox as has been
developed for citrus canker. The Managers expect the
Corporation to develop an insurance policy that provides
coverage for trees against losses associated with plum pox
virus.
The Managers intend that the premium rate reduction pilot
program authorized by this provision explore whether premium
rate competition can benefit producers without harming program
integrity or the crop insurance delivery system. The Managers
hope and expect that the Corporation will approve proposed
premium reductions, as long as such proposed reductions meet
the standards of approval contained in Section 132(d) of the
Conference substitute.
The Managers are aware that Section 508(e)(3) of the
Federal Crop Insurance Act already authorizes premium
reductions if an approved insurance provider can demonstrate to
the Corporation that it can provide crop insurance more
efficiently than the expense reimbursement provided by the
Corporation. The 508(e)(3) standard, however, is too limiting
because an approved insurance provider's gross income includes
underwriting gain as well as the expense reimbursement. As a
result, the Managers intend that the limitations on premium
reductions contained in Section 508(e)(3) of the Federal Crop
Insurance Act not apply to the premium rate reduction pilot
program authorized by this provision.
Education and risk management assistance
The Senate amendment requires FCIC to establish two
programs for the fiscal years 2001 through 2004, not to exceed
the available funding limitations.
Requires FCIC to establish a program of education and
information for states in which there is traditionally and
continues to be a low level of program participation and
coverage availability, and which the Secretary determines is
under-served.
Requires FCIC to establish a program of research and
development to develop new approaches to increasing
participation in states in which there is traditionally and
continues to be a low level of program participation and
coverage availability, and which the Secretary determines is
under-served. Requires that $10 million in each of fiscal years
2001 through 2004 be made available for the Education,
Information, and Insurance Provider Recruitment program from
the account provided under section 516(a)(2)(C) (mandatory
funding account for risk management payments).
Requires that $5 million in each of fiscal years 2001
through 2004 be made available for the Research and Development
program from the account provided under section 516(a)(2)(C)
(mandatory funding account for risk management payments).
(Section 206)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to education and research with certain changes. The
provision authorizing the Corporation to establish a program of
research and development for new approaches to increase program
participation in specified states is omitted and partnerships
for risk management education is authorized. The Secretary,
acting through the CSREES, is required to establish a program
under which competitive grants are made to qualified persons
for the purpose of educating producers about risk management
activities. Funding for the education and information program
provided under the Senate amendment and the partnerships for
risk management education program are each limited to $5
million for each fiscal year beginning with 2001. The provision
also provides for an agricultural management assistance program
under which the Secretary is to offer cost share assistance to
producers located in states with historically low crop
insurance participation for the uses as specified in the Act.
Funding for this program is limited to $10 million for each
fiscal year beginning with 2001. (Section 133)
Farmers have voiced support for marketing clubs,
supported through small grants from USDA. The clubs provide an
opportunity for farmers to improve their understanding of
marketing and managing price risk by sharing their marketing
experiences with their peers. The Managers encourage the
Secretary to continue to support development of marketing clubs
for farmers.
Options pilot program
The Senate amendment amends section 191 of the AMTA
relative to options pilot program authority by extending such
authority until December 31, 2004.
Expands authority to operate options pilot programs from
not more than 100 counties with a limit of 6 counties per
state, to not more than 300 counties with a limit of 25
counties per state.
Authorizes the Secretary to enter into a contract with
any producer who volunteers to participate in the pilot program
during any calendar year in which a county in which the farm of
the producer is located is authorized to operate the pilot
program.
Requires FCIC transfer $27 million for each of fiscal
years 2002 through 2004 from section 516(a)(2)(C) (mandatory
funds for risk management payments) to the Secretary to fund
the operation of the expanded options pilot program. (Section
204)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to the options pilot program with certain changes.
Authority to conduct the options pilot program is expanded to
include an increased number of counties with such authority
continuing until the expiration of the 1996 Farm Bill. Finally,
funding is limited under this section. (Section 134)
Subtitle D--Administration
Relation to other laws
The House bill provides that any policy or plan of
insurance offered under the FCIA is not subject to the
jurisdiction of the CFTC or SEC. Provides a savings clause that
states that the provision does not affect the jurisdiction of
the CFTC with respect to transactions conducted on a contract
market.
The Senate amendment provides that any policy or plan of
insurance offered under the FCIA is not subject to the
jurisdiction of the CFTC, but does not affect the jurisdiction
of the CFTC with respect to transactions conducted on a
contract market.
The Conference substitute adopts the provision included
in section 105 of the House Bill relative to jurisdiction over
policies or plans of insurance and over any underlying
instrument utilized in such a policy or plan of insurance.
(Section 141)
Management of corporation
The House bill strikes section 505(a) relative to the
Board of Directors of FCIC and inserts a new section 505(a) and
(b), relative to the same.
Provides that the management of FCIC is to be vested in
the Board of Directors, subject to the supervision of the
Secretary.
Provides that the Board consist of the manager of FCIC
(serving as a non voting ex officio member), 1 member active in
the crop insurance business, 1 member active in the regulation
of insurance, the Under Secretary for Farm and Foreign
Agricultural Services, 1 additional Under Secretary for
Agriculture, USDA's Chief Economist, and 4 active producers who
are policy holders, are from different geographic regions,
represent a cross-section of commodities grown, with 1 producer
being a specialty crop producer.
Provides that the private sector members of the Board be
appointed and serve at the pleasure of the Secretary, and not
otherwise be employed by the government.
Requires that a private-sector member of the Board serve
as its Chairman and be elected by the Board.
Provides that the amendment made by section 301 takes
effect 30 days from enactment, allowing current Board members
to continue to serve until the earlier of their replacement
date or 180 days after enactment. (Section 301)
The Senate amendment strikes section 505(a) relative to
the Board of Directors of FCIC and inserts a new section
505(a).
Provides that the management of FCIC is to be vested in
the Board of Directors, subject to the supervision of the
Secretary.
Provides that the Board consist of 4 producers from each
region of the country, 1 member active in the crop insurance
business, 1 member active in the reinsurance business, the
Under Secretary for Farm and Foreign Agricultural Services, the
Under Secretary for Rural Development, and USDA's Chief
Economist.
Provides that the private sector members of the Board be
appointed and serve at the pleasure of the Secretary, not be
employed by the government, be appointed to staggered 4 year
terms, and serve no more than 2 consecutive terms.
Requires that a private sector member of the Board serve
as its Chairman and be elected by the Board.
Requires RMA to assist the Board in developing,
reviewing, and recommending new plans of insurance and pilot
projects, terms of the SRA, and with other issues involved in
the administration of the program.
Provides for the appointment of an Executive Director by
the Secretary to assist the Board and report to the Secretary.
Provides for a staff of 4 to report to the Executive
Director, all 4 having knowledge and experience in quantitative
mathematics and actuarial rating.
Requires the Executive Director and staff to assist the
Board in reviewing and approving policies and plans of
insurance submitted under sections 508, 522, or 523, and report
at least monthly to the Board on crop insurance issues.
Requires the Executive Director and staff to review
subsidized and unsubsidized insurance, make recommendations for
approval or disapproval, make recommendations to encourage
cooperation between the U.S. attorneys, FCIC, and approved
insurance providers to minimize fraud, and make recommendations
with respect to rating methodologies.
Provides $500,000 for fiscal year 2001 from the FCIA Fund
to pay the salaries and expenses of the Executive Director and
staff.
Requires that RMA transfer $500,000 for fiscal year 2001,
and $1 million for each subsequent fiscal year to the Executive
Director for salaries and expenses, subject to the availability
of appropriations. (Section 301)
The Conference substitute adopts the House provision
relative to the composition of the Corporation Board of
Directors with changes to permit the Secretary the option of
appointing 1 person experienced in reinsurance or 1 person
experienced in the regulation of insurance, requiring that
Board members be limited to two consecutive terms and be
appointed for staggered 4-year terms. The new Board is to be
appointed during the period beginning February 1, 2001 and
ending April 1, 2001. Finally, the Board of Directors is
required to contract with persons experienced as actuaries and
in underwriting for expert reviews of policies and plans of
insurance offered under the Federal Crop Insurance Act. Funding
for such reviews is authorized from mandatory funds formerly
dedicated to research and development. The authority provided
under this section, including funding dedicated to carry out
this section, is in addition to the general management
authority over the Corporation, including any other contracting
authority under the title, that is vested in the Board of
Directors. (Section 142)
Contracting for rating of plans of insurance
The House bill amends section 507(c)(2) relative to
requiring FCIC to contract for certain services by including
the contracting for actuarial services, services relating to
loss adjustment, and rating plans of insurance. Underscores
that FCIC should concentrate on the regulation of insurance and
on the evaluation process for newly developed policies under
section 508(h). (Section 306)
Section 202 of the Senate amendment corresponds with
sections 306 and 104 of House bill
The Conference substitute adopts the House provision
relative to contracting for rating plans of insurance. (Section
143)
Electronic availability of crop insurance information
The House bill amends section 508(a)(5) by making
technical amendments and adding a new subparagraph (B) relative
to electronic availability of crop insurance information.
Requires FCIC to make general insurance information
electronically available to producers and insurance providers,
and also requires, where practicable, that FCIC allow producers
and providers to provide insurance information electronically.
(Section 307)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision
relative to the electronic availability of crop insurance
information. (Section 144)
Adequate coverage for states
The Senate amendment amends section 508(a) adding
paragraph (9) relative to adequate coverage for states.
Defines adequately served as having a participation rate
that is at least 50 percent of the national average.
Requires FCIC to review policies offered by approved
insurance providers to determine if each state is adequately
served.
Requires that not later than 30 days after completion of
the review, FCIC must submit to Congress a report of the
results along with recommendations to increase participation in
states not adequately served. (Section 305)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to adequate coverage for states. (Section 145)
Submission of policies and materials to Board
The House bill amends section 508(h)(1) to clarify that a
``person'' that may propose a policy to the Board for approval
includes an approved insurance provider, a college or
university, a cooperative or trade association, or other
persons. Clarifies that policies are to be sold to producers by
approved insurance providers.
Requires FCIC to consider any modified policy proposal
within 30 days from the submission of the modifications, and
requires that any decision to disapprove a policy must be
accompanied by a complete explanation.
Requires that FCIC make a determination to approve or
disapprove a policy proposal within 120 days from submission,
and any decision to disapprove a policy must be accompanied by
a complete explanation. Provides that the proposed policy is
approved for the initial reinsurance year where FCIC fails to
provide a timely determination unless the parties agree to an
extension.
Amends section 516(b)(2) to authorize the current $3.5
million in mandatory funds for research and development to be
used for costs associated with considering and contracting for
assistance in considering policies submitted for approval and
carrying out policies resulting from direct contracting,
The House bill also requires FCIC to issue regulations
establishing guidelines within 180 days of enactment to govern
the submission of policies. (Sections 305 and 105)
The Senate amendment amends section 508(h) by striking
paragraphs (1) through (4) relative to the submission, review
and approval, and guidelines for the same of new policies,
plans of insurance, or related materials, and inserts new
paragraphs (1) through (4) related to the same.
Permits persons to propose to the Board loss of yield or
revenue insurance coverage on an individual, area, or a
combination of individual and area basis for 1 or more crops
and rates of premium and underwriting systems for proposed or
existing policies.
Provides that a proposal submitted under this subsection
may be prepared without regard to FCIA limitations, including
actuarial soundness, levels of coverage, rates of premium, that
the price level equal the expected market price and that an
approved insurance provider must provide coverage for all crops
throughout the state where the provider elects to provide any
coverage in the state.
Provides, however, that FCIC may not pay a portion of the
premium for a policy submitted under this subsection that
exceeds the amount otherwise authorized under subsection (e).
Requires the Board to approve a proposal submitted under
this subsection for subsidy and reinsurance where the Board
determines the proposal adequately ensures the interests of
producers are protected, premiums are actuarially appropriate,
underwriting systems are actuarially appropriate and adequate,
and is reinsured under this title, privately reinsured, or
self-insured.
Provides that rates of premium are actuarially
appropriate where the rate is sufficient to cover projected
losses and expenses, a reasonable reserve, and an amount of
operating and administrative expenses of the approved insurance
provider under subsection (d)(2).
Provides that proposed underwriting plans may be on an
area or individual farm basis and must, at a minimum, specify
factors such as yield history for the farm or region, soils and
resource quality for the farm, and farm production practices.
Requires FCIC to provide reinsurance to approved
insurance providers to the maximum extent practicable, and
allows such providers to obtain private reinsurance,
reinsurance under the FCIA, or to self-insure.
Requires FCIC to prescribe standards for determining
whether premium rates are actuarially appropriate.
Establishes guidelines with respect to any policy or
other material submitted to the Board after October 1, 2000.
Allows FCIC to enter into more than 1 reinsurance
agreement simultaneously with an approved insurance provider to
facilitate the offering of the new policy.
Requires FCIC to promulgate regulations establishing the
procedure for the submission of policies under this subsection,
including the standards applicable to a proposal, procedures
concerning the time limits and for opportunity to present the
proposal to the Board in person.
Provides that a proposal submitted to the Board is
considered approved unless the Board disapproves the proposal
by the date 60 business days after the later of submission of
the proposal or the date on which the applicant provides the
Board notice of intent to modify.
Requires FCIC to provide notice by registered mail of
intent to disapprove a proposal not later than 15 days before
the date the Board intends to disapprove such proposal.
Provides an applicant with the right to modify a proposal
and provides that any modified proposal be considered the
original. Requires an applicant to provide notice to the Board
of intent to modify a proposal within 5 days of notice by the
Board to disapprove such proposal.
Requires FCIC to prescribe a reasonable deadline for
submission of proposals that approved insurance providers
expect to market during the reinsurance year.
Requires that proposals submitted to the Board be
considered confidential commercial information, and further
requires that if information concerning a proposal could be
considered confidential, the information may not be released.
Provides an exception to the standard of confidentiality
where an approved insurance provider agrees to pay a fee
(prescribed under section 307 of the Senate amendment) to offer
a policy developed by another provider.
Provides that in lieu of publication in the Federal
Register, a general summary of a proposal must be made
available to other providers upon approval of the proposal by
the Board, including the identity of the provider, the coverage
provided, and the area to be served.
Strikes paragraphs (6), (8), and (10) of section 508(h),
related to a pilot cost of production plan, a pilot program of
assigned yields for new producers, and time limits for
submission of proposals, and designates paragraphs (7) and (9)
as (6) and (7), respectively.
Amends section 516(b)(1) by adding a paragraph (D)
authorizing FCIC to pay salaries and expenses of the Executive
Director and staff for fiscal year 2001 from the FCIA fund, but
not to exceed $500,000. (Section 301)
The Conference substitute adopts the House provision
relative to the submission of policies and materials to the
Board with changes regarding confidentiality requirements
governing policies. The requirement that policies be printed in
the Federal Register is also stricken from the Federal Crop
Insurance Act. Funding provided under the House provision is
incorporated into the Act but under another section of the
Title. (Section 146)
Funding
The House bill amends section 516(a)(2) authorizing
mandatory funds to be used for costs associated with the
conduct of livestock pilot programs subject to the limitations
above.
Amends section 516(b)(1) authorizing FCIC to fund
livestock pilot programs from the FCIA Fund.
Amends section 516(a)(2) authorizing mandatory funds to
be used for cost associated with reimbursement and contracting
for research and development.
Amends section 516(b)(1) authorizing FCIC to fund
reimbursement and contracting from the FCIA fund.
Amends section 516(b)(2) authorizing mandatory funds for
costs associated with considering policies and other materials
and implementing such policies. (Section 105, 304 and 305)
The Senate amendment amends section 516(c)(1) of the FCIA
by striking paragraph (1) and inserting a new paragraph (1)
providing that, along with premium income and amounts under
section 516(a)(2), sanctions fees are to be deposited in this
fund.
Amends 516(b)(2)(a) increasing the authorization of
mandatory funds to be used for research and development.
(Sections 207 and 303)
The Conference substitute adopts a funding section that
incorporates funding authorized under various sections of the
House bill and the Senate amendment, including funding to cover
costs associated with the consideration and implementation of
policies. (Section 147)
Standard Reinsurance Agreement
The House bill authorizes FCIC to renegotiate the SRA
effective for the 2002 reinsurance year. (Section 310(b))
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision
relative to the Standard Reinsurance Agreement with changes to
allow 1 re-negotiation during the 2001 through 2005 reinsurance
years. (Section 148)
Subtitle E--Miscellaneous
Limitation on Revenue Coverage for Potatoes
The Senate amendment restates the exclusions in current
law in subparagraph (A) and adds another exclusion for coverage
under new subparagraph (B) prohibiting the coverage of losses
due to a decline in revenue from potato production, except as
provided under a whole farm plan of insurance.
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to limitations on revenue coverage for potatoes.
(Section 161)
Crop Insurance Coverage for Cotton and Rice
The Senate amendment requires that, beginning with the
2001 rice crop, FCIC offer plans of insurance, including
prevented planting and replanting coverage, to cover the loss
of rice due to the failure of irrigation water supplies from
drought and saltwater intrusion. (Section 107)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to crop insurance coverage for rice with a change to
include extra long staple cotton and upland cotton. (Section
162)
Indemnity Payments for Certain Producers
The Senate amendment requires that notwithstanding
section 508(c)(5) relative to price elections, a producer of
durum wheat that purchased a 1999 CRC wheat policy by the sales
closing date shall receive an indemnity payment in accordance
with the policy. Requires that the base and harvest price under
the policy be in accord with the Commodity Exchange Endorsement
for wheat published by FCIC on July 14, 1998, andthat FCIC
provide reinsurance under the SRA for the policy. Voids the Bulletin
MGR-99-004 issued by the Administrator. This provision is effective on
October 1, 2000. (Section 501)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to providing indemnity payments to certain producers
with technical changes. (Section 163)
Sense of Congress on regarding the Federal Crop Insurance Program
The Senate amendment expresses the sense of the Senate
regarding the federal crop insurance program and the role of
farmer-owned cooperatives. Expresses the sense of the Senate
that, not later than 180 days after the date of enactment, 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.''
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to the Sense of Congress regarding the Federal Crop
Insurance Program. (Section 164)
Sense of Congress on rural America, including minority and limited-
resources farmers
The Senate amendment provides findings relative to a
rally for rural America held in Washington on March 20-21,
2000, the purpose of the rally, and a sense of Congress with
respect to the rally, its participants, and its purpose.
(Section 403)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
relative to the Sense of Congress on Rally for Rural America
and Rural Crisis with changes. The Conference substitute also
adopts the House provision relative to minority and limited
resource farmers and ranchers with changes. (Section 165)
Subtitle F--Effective Dates and Implementation
Effective dates
The House bill provides that with the exception of
sections 301(b) and 305(d), the amendments made by House bill
take effect upon enactment.
Provides that the implementation depends on the terms of
the particular amendment or, in the absence of an express
implementation date, in accordance with section 402. (Section
401)
The Senate amendment provides that with the exception of
certain provisions, the Senate amendment is effective upon
enactment. (Section 501)
The House bill requires implementation of sections 104,
106, 107, 202, 203, 204, 205, 206, and 309 for the 2000 crop
year.
Requires implementation of sections 105(a); 305(a), (b),
and (c); 306; and 307 for the 2000 fiscal year.
Requires implementation of sections 101, 102, 103(b),
109, 110, 111, and 201 for the 2001 crop year. Requires
implementation of sections 105(b) and 304 for the fiscal year
2001. (Section 402)
The Senate amendment prohibits FCIC from obligating funds
to carry out sections 102, 103, 105, 106, 201 through 207, 309,
and 310 until October 1, 2000.
The Conference substitute provides that this Act take
effect on the date of enactment with certain exceptions.
Subtitle C, section 146 and 163 take effect on October 1, 2000.
Subsections (a), (b), and (c) of section 101, section 102(a),
subsections (a), (b), and (c) of section 103, section 104,
section 105(b), section 108, section 109, and section 162 take
effect beginning with the 2001 crop year. Section 101(d),
section 102(b), and section 103(d) take effect beginning with
the 2001 reinsurance year. (Section 171)
Regulations
The Senate amendment requires FCIC to promulgate
regulations not later than 60 days after the date of enactment.
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
requiring the Corporation to promulgate regulations to carry
out this Act with a change from requiring regulations within 60
days after enactment to 120 days after enactment. (Section 172)
Savings clause
The House bill provides a savings clause with respect to
current law, to the extent that application of an amendment is
delayed. (Section 403)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision
relative to the savings clause. (Section 173)
Compliance with state licensing requirements
The House bill amends section 508 by adding a new
subsection (o) relative to compliance with state licensing
requirements.
Requires that any person who sells or solicits the
purchase of a policy in a state must be licensed and qualified
to do business in that state. (Section 206)
The Senate amendment amends section 508 of the FCIA
adding at the end a new paragraph (n), relative to compliance
with state licensing requirements.
Requires any person that sells or solicits the purchase
of a policy or adjusts losses under the FCIA in any state must
be licensed and qualified to do business in that state, and
must comply with all state regulations (including commission
and anti-rebating regulations) as required under state law.
(Section 313)
The Conference substitute deletes both the House and
Senate provisions because such licensing requirements are dealt
with under a separate section.
Choice of risk management options
The Senate amendment defines an agricultural commodity as
a crop specified in section 518 of the FCIA for which ``CAT''
or ``buy-up'' coverage is available.
The section further defines an agricultural commodity as
a crop that is selected by the Secretary to maximize the number
of participating producers, provides for a mixture of program,
specialty, and regional crops, gives consideration to crops
with low crop insurance participation, and results in not less
than 15 percent of payments going to states with traditionally
low program participation that the Secretary determines are
underserved.
Defines applicable crop to mean the 2002 through 2004
crops, and applicable year to mean the year in which the crop
is produced on the farm and the producer elects to receive a
risk management payment or crop insurance premium subsidy. Also
defines a regulated exchange as a board of trade designated as
a contract market.
Requires FCIC to offer either to make risk management
payments or to provide crop insurance premium subsidies for
each of the 2002 through 2004 crops.
Requires each producer to make an election between the
two options before the sales closing date for the applicable
crop.
Requires FCIC to make a risk management payment for an
applicable crop to a producer electing to receive such a
payment providing the producer engages in at least 1 prescribed
risk management practice from at least 2 of 5 categories. The
categories include, (1) the Crop Insurance Category (buying
unsubsidized or private coverage), (2) the Marketing Risk
Category, (3) the Financial Risk Category, (4) the Farm
Resources Risk Category, or (5) the Other Category (as
prescribed by the Secretary).
Requires the Secretary to determine the amount of any
risk management payment taking into consideration the
expenditure by the producer on the risk management activities
in which the producer engaged.
Provides that no risk management payment may be made in
an amount greater than equal to the national average of the
previous year's liability for all ``CAT'' policies.
Authorizes $500 million for fiscal years 2002 through
2004 from the account established in section 516(a)(2)(C) of
the FCIA, except that payments in any one fiscal year may not
exceed $200 million. (Sections 204 and 206 of the Senate
amendment reduce this amount to fund options pilot programs and
education and research.)
Requires producers receiving a risk management payment to
certify compliance with qualifying risk management practices
and associated costs for the applicable year.
Authorizes FCIC to conduct random compliance audits.
Requires the producer to refund a risk management payment
where the producer fails to certify compliance or fails to
comply with qualifying risk management practices and subjects
the producer to possible debarment for up to 5 years from farm
programs cited in section 506(n)(3)(B) of the FCIA.
Provides that any assignment of benefits be carried out
consistent with section 8(g) of the Soil Conservation and
Domestic Allotment Act, and requires the producer give notice
of such assignment where FCIC requires.
Requires FCIC to provide for the fair and equitable
sharing of benefits among all producers at risk in the
production of a crop.
Amends section 516(a) by striking paragraph (1) relative
to discretionary expenses and inserts a new paragraph (1)
relating to the same, providing that there are authorized to be
appropriated for fiscal year 1999 and each subsequent fiscal
year such sums as are necessary to cover the salaries and
expenses of the FCIC, and the expenses of approved insurance
providers in carrying out section 522(c).
Amends section 516(a) relative to mandatory expenses by
adding at the end authorization for risk management payments in
an amount not to exceed $500 million for fiscal years 2001
through 2004, with not more than $200 million for any 1 fiscal
year. (Section 203)
The House bill has no comparable provision.
The Conference substitute deletes the Senate provision.
Fees for use of new policies and plans of insurance
The House bill amends section 508(h) by adding a new
paragraph (11) relative to fees for new policies and plans of
insurance.
Provides that beginning with fiscal year 2001, a person
that develops a policy that does not apply for reimbursement
has the right to receive a fee from another approved insurance
provider electing to sell that policy.
Provides that the second provider may not sell such
policy without first reaching a fee agreement with the
developer.
Provides that ``new policy'' under the paragraph means a
policy that was approved by the Board on or after October 1,
2000 and was not available at the time of approval. Provides
that the fee be determined by the developer subject to the
approval of the Board, except the Board shall approve the fee
unless it is unreasonable in relation to research and
development costs or it unnecessarily inhibits the use of the
policy. (Section 308)
The Senate amendment amends section 508(h) of the FCIA by
striking paragraph (5) relative to required publication of
submissions in the Federal Register and inserts a new paragraph
(5) relative to fees for plans of insurance.
Provides that, beginning with the 2001 reinsurance year,
an approved insurance provider electing to offer a policy that
was developed by another provider and was approved before
January 1, 2000 must pay the developer $2 per policy for each
of the first 5 crop years, $1 per policy for each of the next 3
crop years, and 50 cents for each policy in each succeeding
crop year.
Provides that, beginning with the 2001 reinsurance year,
an approved insurance provider electing to offer a policy that
was developed by another provider and was approved by the Board
on or after January 1, 2000 must pay the developer an amount
determined by the developer, such fee subject to the approval
of the Board. FCIC may not approve fees that would
unnecessarily inhibit the use of a policy.
Requires FCIC to collect and credit fees to approved
insurance providers.
Provides an exception to the general rule relative to
fees where an approved insurance provider electing to offer a
policy in a state where the developer of the policy does not do
business may pay a fee to offer the policy and that fee may not
be refused.
Amends section 516(b)(1) by adding a new paragraph
allowing FCIC to pay fees collected from the insurance fund,
and amends section 516(c)(1)(A) to provide for the deposit of
such fees collected into the fund. (Section 307)
The Conference substitute deletes both the House and
Senate provisions.
Federal Crop Insurance Improvement Commission
The Senate amendment provides in lieu of the current
section 515 of the FCIA a new section 515 relative to the
establishment of a Federal Crop Insurance Improvement
Commission.
Defines commission as the Federal Crop Insurance
Improvement Commission and establishes the same.
Provides that the commission have 15 members, including
the Under Secretary for Farm and Foreign Agricultural Services,
the FCIC manager, the USDA Chief Economist, an employee of OMB
appointed by the OMB Director, a representative of the National
Association of Insurance Commissioners, 4 approved insurance
providers appointed by the Secretary, 2 agricultural economists
from academia appointed by the Secretary, and 4 representatives
of major farm organizations or farmer-owned cooperatives.
Provides that members be appointed not later than 60 days
from enactment and serve for the life of the commission.
Provides that the commission review and make
recommendations relative to the amount of risk approved
insurance providers should bear, whether current reinsurance
practices should be continued, the extent to which development
of new policies should be undertaken by private entities, how
to focus research and development to include new types of
products and products for specialty crops, the progress in
reducing administrative and operating expenses, etc.
Requires the Under Secretary serving on the commission to
serve as chairman and vote in the event of a tie.
Requires the commission to meet at least 6 times per year
and make public records of the commission available at the
Office of the RMA. Requires that not later than 2 years after
enactment the commission submit a report to the House and
Senate Agriculture Committees, with copies to the Secretary and
the FCIC Board. Also, authorizes the commission to make 1 or
more interim reports.
Provides that authority for the commission terminates at
the earlier of 60 days after the final report is issued or on
September 30, 2004.
Authorizes to be appropriated such sums as may be
necessary. (Section 310)
The House bill has no comparable provision.
The Conference substitute deletes the Senate provision.
Highly erodible land and wetland conservation
The Senate amendment amends sections 1211(3) and
1221(b)(3) of the Food Security Act of 1985 to make producers
who fail to comply with highly erodible land and wetland
conservation requirements, respectively, ineligible for crop
insurance benefits. (Section 311)
The House bill has no comparable provision.
The Conference substitute deletes the Senate provision.
Projected loss ratio
The Senate amendment strikes paragraph (2) of section
506(o) of the FCIA relative to loss ratio requirements and
inserts a new paragraph related to the same.
Requires FCIC to take such actions as are necessary,
including the establishment of adequate premiums, to improve
the actuarial soundness of the crop insurance program to
achieve a 1.075 loss ratio from October 1, 1998 through the
2001 crop year, and a 1.00 loss ratio beginning with the 2002
crop year. (Section 312)
The House bill has no comparable provision.
The Conference substitute deletes the Senate provision.
Improved risk management education
The Senate amendment amends Title IV of the Agricultural
Research, Extension, and Education Reform Act of 1998 by adding
at the end section 409 relative to improved risk management
education for agricultural producers and provides definitions.
Requires the Secretary to carry out a program to improve
the risk management skills of agricultural producers, to help
producers understand the financial health of their operations,
marketing alternatives available, and relevant legal,
governmental, environmental, and human resource issue.
Requires the Secretary to establish Risk Management
Education Coordinating Centers in each of the 5 regions in the
country.
Requires the Secretary to locate a region's center at
risk management coordinating office of the Cooperatve State
Research, Education, and Extension Service in existence at a
land grant college or an appropriate alternative land grant
college in the region. Requires the land grant college to
demonstrate the capacity to carry out program priorities,
funding distribution, and reporting requirements.
Requires each center to establish a coordinating council
consisting of 5 members, including public and private
organizations, producers, and a representative of the regional
RMA office.
Requires centers to coordinate the offering of intensive
risk management instructional activities for professionals who
work with producers, the provision of educational programs for
producers, and the dissemination of risk management education
materials.
Requires centers to make use of emerging risk management
information and materials, after an evaluation of suitability
is conducted with the assistance of land grant college
personnel and others.
Requires each center to reserve a portion of funds
provided under the section to make special grants to land grant
colleges and private entities in the region to conduct such
activities, and requires the reservation of funds to award
competitive grants to public and private entities for such
purposes.
Requires that the National Agriculture Risk Education
Library serve as the central agency for coordination and
distribution of education material and provide for the
electronic delivery of the same.
Authorizes to be appropriated $30 million for fiscal year
2001 and each subsequent fiscal year, requiring 2.5 percent of
funds available be distributed to the Library with the residual
funding reserved for the centers.
Requires the land grant colleges hosting a regional
center to administer the funds for the region. Requires that
each center be located in an existing facility and prohibits
the use of funds for new construction.
Requires the Secretary, acting through the CSREES, to
evaluate each center. (Section 401)
The House bill has no comparable provision.
The Conference substitute deletes the Senate provision.
Termination of authority
The Senate amendment provides that the termination of
certain authority is effective on September 30, 2004.
Repeals Senate amendment provided in sections 102, 103,
105, 106, 203(b), and 310 on September 30, 2004, and provides
that the FCIA and NAP shall after this date be administered as
if these provisions had not been enacted.
Provides further conforming amendments to repeal any
funding authority provided under the Senate Amendments and
prohibits the Secretary or FCIC from carrying out the
provisions after September 30, 2004.
The House bill has no comparable provision.
The Conference substitute deletes the Senate provision.
TITLE II--AGRICULTURAL ASSISTANCE
The Conference substitute includes a new title (Title II)
providing agricultural assistance to producers of the 2000
crops and other assistance:
Subtitle A--Market Loss Assistance
Sec. 201. Market loss assistance
To ensure timely delivery of market loss payments to
eligible producers and owners, the Managers expect the
Secretary to make the payments available under the same terms
and conditions as the 2000 AMTA contract payments. Market loss
payments made under authority of this legislation shall not be
treated as a contract (AMTA) payment for purposes of section
115 of Title I of the Federal Agriculture Improvement and
Reform Act of 1996, or section 1001, paragraphs (1) through (4)
of the Food Security Act of 1985. Further, it should not be
necessary to require eligible owners and operators to file new
contracts or redesignate shares in order to receive market loss
payments.
Sec. 202. Oilseeds
The Managers expect the Secretary to deliver oilseed
economic assistance payments to producers in the same manner
used to deliver the 1999 oilseed payments authorized under
Title VIII, section 803 of P.L. 106-354. The Managers note that
the Department has taken over seven months to make payments to
eligible producers. Such delays in delivering crop year 2000
payments are unacceptable.
The Managers expect that sesame seed will be eligible for
assistance under this section. The Managers note that the
Federal Agricultural Improvement Act of 1996 makes other
oilseeds eligible for assistance under section 131 of the FAIR
Act. The Managers direct the Secretary, using his authority
under section 102 of the FAIR Act and any other applicable
authorities, to ensure that sesame seed producers may
participate in this program under section 202.
Sec. 203. Specialty crops
This section provides for infrastructure improvements for
growers of specialty crops. Specifically, the section provides
$59.45 million for the PACA reserve fund and the inspection
service reserve fund to maintain the cost of licensing and
inspection fees at the current level. The section also provides
$11.55 million to make improvements to the system used for
inspecting fruits and vegetables, including the program and
facilities used to train inspectors; the technological tools
used by inspectors; expanding digital imaging technology
capabilities; and improving office space and grading tables.
This section also provides $200 million to be used by the
Secretary to purchase specialty crops that experienced low
prices in the 1998 and 1999 crop years, including apples,
black-eyed peas, cherries, citrus, cranberries, onions, melons,
peaches, potatoes and others. The Managers expect the Secretary
to ensure that, as provided in subsection (d) of this section,
purchases with this funding are in addition to other purchases
made by the Secretary under other authorities. To the extent
practicable, the Managers expect theSecretary to purchase a
significant portion of the commodities purchased under this section
directly from farmers or agricultural cooperatives rather than
processors.
This section also provides $25 million to compensate
growers for losses resulting from plum pox virus, Pierce's
disease and citrus canker.
With respect to the plum pox virus, the Managers expect
the Secretary to use at least $5.1 million to compensate
growers whose trees were destroyed as part of the Secretary's
``Declaration of Extraordinary Emergency'' dated March 2, 2000,
in a manner that covers: net returns that would have been
earned over the remaining life of all the destroyed trees;
producers being prevented from replanting for three years; and
lost value of nursery stock.
With respect to Pierce's disease, the Managers expect the
Secretary to utilize at least $7,140,000 in a manner that
enables the California Department of Food and Agriculture to
utilize such funding for state and local efforts to contain and
control Pierce's disease which is devastating agricultural
areas in Southern California, and is moving northward into
other regions. Funds are needed immediately to monitor for the
earliest signs of the disease and to inspect nursery stock
prior to shipment. The disease is spread by a vigorous and
difficult to control insect called the glassy-winged
sharpshooter. This insect is a major problem, but the
elimination of the insect would not eliminate the disease.
The Managers are disappointed by the federal response to
this outbreak. It is clear that efforts to control the spread
of the disease must be increased. It is also clear that there
is an immediate need for additional research efforts to study
near and long term alternatives for controlling the bacterium
common to Pierce's disease. The Managers expect the Secretary
to initiate such efforts immediately, within existing
resources.
With respect to citrus canker, the Managers expect the
Secretary to utilize remaining funding to compensate citrus
growers who have suffered economic losses due to the disease.
This section also requires the Secretary, in conjunction
with USDA's Inspector General, to submit a report to Congress
that analyzes the economic losses associated with falsified
inspection certificates issued at the Hunts Point Terminal
Market, including an analysis of how the Secretary intends to
provide restitution.
This section also provides loans, up to three years in
term, for apple producers that are suffering economic losses
resulting from low prices for apples.
Sec. 204. Other commodities
Subsec. (a) Peanuts
This subsection provides economic assistance to peanut
producers. The Managers expect the Secretary to deliver the
peanut economic assistance payments to producers in the same
manner used to deliver the 1999 peanut assistance authorized
under Title VIII, section 803 of P.L. 106-354. The Managers
also expect that the same rules that were used and applied to a
peanut quota lessor and lessee with respect to 1999 assistance
will be used with respect to the delivery of the monies made
available under this Act.
Subsec. (b) Tobacco
This subsection--
Provides $340 million to the Secretary to make
payments to States from October 1, 2000, to October 20,
2000. The States shall divide the funds between quota
owners, quota lessees, and tobacco producers;
Includes language requested from the State of
Georgia requiring the State to match the portion of
funds provided from this title by the Federal
Government;
Allows an increase for acreage transfers for dark-
fire cured tobacco;
Allows for an adjustment in the burley noncommitted
pool stocks;
Places limitations on burley carry forward pounds
and lease and transfer due to natural disasters;
Makes a technical correction in the cross county
leasing definition of the 1938 Agricultural Adjustment
Act; and
Requires that the Secretary establish a
computerized recordkeeping system for burley tobacco
quota and acreage.
Subsec. (c) Honey
This subsection provides recourse loans for honey
producers on the 2000 crop of honey. The loan rate would equal
85 percent of the average price of honey during the 5-crop year
period preceding the 2000 crop, dropping the year with the
highest price and the year with the lowest price in calculating
the average.
Subsec. (d) Wool and mohair
This subsection provides direct payments to producers of
wool and mohair for the 1999 marketing year. The payment rates
would be 20 cents per pound for wool and 40 cents per pound for
mohair. The Managers expect the Secretary to make payments
under this section in an equitable manner without regard to
size of operation.
Subsec. (e) Cottonseed
This subsection provides cottonseed assistance to
producers and first handlers. The Managers expect the Secretary
to provide additional assistance to cotton producers and first
handlers through direct payments or other means to help
alleviate the problems caused by the unusually low prices.
Sec. 205. Payments in lieu of loan deficiency payments
The Managers intend for crop year 2001 producers of
wheat, oats and barley on a farm with an AMTA contract who
graze the acreage and forego mechanical harvesting to be
eligible for a payment under the same terms and conditions as a
producer who harvests a crop and applies for a loan deficiency
payment. The Managers intend for the producer to enter into a
payment agreement with CCC at the loan deficiency payment rate
for the applicable crop in effect on the date of such
agreement, at such time as the producer chooses, but not
earlier than the date a producer who normally harvests a crop
would make application for a loan deficiency payment and no
later than September 30, 2001. The Managers expect the
Secretary to require adequate producer certifications to
protect the program from fraud and abuse. Producers that
certify wheat, oats or barley for grain with either the Farm
Service Agency (FSA) or the Risk Management Agency (RMA)
andfail to harvest the crop because of weather conditions and
subsequently graze the acreage are not intended to be covered by this
provision. The Managers expect the Department to immediately publicize
this provision in FSA county newsletters.
Sec. 206. Expansion of producers eligible for loan deficiency payments
The Managers intend for producers growing an AMTA
contract commodity on a farm with no AMTA contract to be
eligible for loan deficiency payments on 2000 crop production
subject to the same terms and conditions as applicable to
producers on a farm with an AMTA contract. Producers eligible
for payment under this section are afforded an exception to the
beneficial interest provisions for a period of time that
extends for 30 days after the promulgation of regulations. The
Managers expect the Department to immediately publicize this
provision in FSA county newsletters.
Subtitle B--Conservation
Sec. 211. Conservation assistance
Subsection (a) directs USDA to use $10 million for the
Farmland Protection Program and allows nonprofit conservation
organizations to hold easements in those states that do not
have a state defined farmland protection program. Subsection
(b) directs USDA to use $40 million to provide soil, water and
natural resource conservation assistance for farmers in the
form of cost share or incentive payments. The Managers believe
that farmers and ranchers need additional assistance to address
these natural resource problems.
The Managers agree there is a great demand among the
states to keep prime and unique farmland in agricultural
production. The farmland protection authorization in the 1996
farm bill was immediately over-subscribed, and the $35 million
in funds were exhausted in two years. Thus, the Managers have
provided a $10-million infusion of funds to the farmland
protection program. In addition, new program participants, such
as nonprofit land resource conservation councils, are now able
to take part in this initiative.
This section also provides $40 million to assist farmers
and ranchers through cost-share or incentive payments to get
proven soil and water conservation practices on their farms and
ranches. In making these funds available, the Managers
recognize that the Environmental Quality Incentives Program
(EQIP) has left certain producers in areas of states and
regions of the country with little or no federal help. Although
the funds made available in the conference report are limited,
they will be directed at areas that are outside conservation
priority areas, where most of the EQIP funds have been used.
The Managers expect for these funds to be focused on practices
that conserve water or improve water quality. The Managers
believe many water quality concerns can be handled without the
time-consuming and expensive development and writing of whole
farm plans. One or two practices properly completed are the
best conservation, which can be applied to the land for water
quality or water conservation. In that regard, the Managers
emphasize that the funds included in this program are only for
financial assistance through cost-share and incentive payments
to farmers and ranchers. It is the intent of the Managers that
this program will be carried out using the conservation
operations account funded in annual agriculture appropriations
acts.
Sec. 212. Inclusion of farmland in conservation-related areas
This section requires the Secretary of the Interior,
acting through the Director of the U.S. Fish and Wildlife
Service, to prepare an Environmental Impact Statement (EIS)
under the National Environmental Policy Act of 1969 on the
proposed National Wildlife Refuge (NWR) on the Little Darby
Creek in Madison and Union Counties, Ohio. This EIS must be
completed before any further development may proceed on the
Little Darby Creek NWR.
Subtitle C--Research
Sec. 221. Carbon cycle research
This section directs USDA to provide $15 million in
Fiscal Year 2001 to the Consortium for Agricultural Soils
Mitigation of Greenhouse Gases for carbon cycle research at the
national, regional and local levels. Additional research is
needed in the sequestration of carbon as it relates to
agricultural best management practices and how these practices
convert carbon dioxide into soil organic carbon that in turn
reduces soil erosion, improves water quality and increases
yields. Producers and policymakers need a better understanding
of the link between the carbon cycle and agricultural best
management practices. The Managers believe that the storage of
carbon may provide additional income to farmers and ranchers
and provide ancillary environmental benefits.
Sec. 222. Tobacco research for medicinal purposes
This section directs USDA to provide $3 million in Fiscal
Year 2001 to Georgetown University and North Carolina State
University for research regarding the extraction and
purification of proteins from genetically altered tobacco that
can be used as a vaccine for cervical cancer.
Sec. 223. Research on soil science and forest health management
This section directs USDA to provide a grant to the
University of Nebraska-Lincoln for laboratories and equipment
for research on soil science and forest health and management.
Sec. 224. Research on waste streams from livestock production
This section provides $3.5 million to expand research
related to livestock production waste streams. The Managers
expect the Secretary to utilize this funding to focus on
technology for reducing, modifying, recycling, and utilizing
livestock waste streams in a manner that will allow scientists
to develop and utilize integrated components required for a
systems approach to livestock waste and odor research and
development. This is required to deal with the complex
interactions among variables influencing nutrient/contaminant
production and flow-through livestock production systems. The
Managers expect the research goals to include: reducing waste
and odor production and emission; reducing health hazards and
improving working conditions in production facilities;
improving efficiency of manure handling and utilization;
increasing recycling of nutrients and water; and making
livestock production compatible with neighboring individuals
and communities.
Sec. 225. Improved storage and management of livestock and poultry
waste
This section provides $5,000,000 in fiscal year 2001 for
the Secretary to review and assess potential problems
associated with livestock and poultry waste management systems
and to study and demonstrate appropriate market-oriented
solutions to these potential problems. As provided in this
section, the Managers expect the Secretary to carry out this
review and assessments through grants, contracts, and
cooperative agreements with producers, associations of
producers, and foundations supported by producers.
Sec. 226. Ethanol research pilot plant
Authorizes and appropriates $14 million to the Secretary
for the construction of a corn-based ethanol research pilot
plant.
Sec. 227. Bioinformatics Institute for Model Plant Species
Authorizes the Secretary to enter into a 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 for the purpose of enhancing the accessibility
and utility of genomic information for plant genetic research.
Subtitle D--Agricultural Marketing
Sec. 231. Value-added agricultural product market development grants
This section directs the Secretary to use $15 million to
award competitive grants to eligible producers for the purpose
of facilitating greater participation in markets for value-
added agricultural commodities. The Managers expect these
grants to fund ventures for a variety of agricultural
commodities. It is the intent of the Managers that the grants
would be made for the purpose of developing business plans for
viable marketing opportunities and the creation of a pilot
project resource center to coordinate assistance including
research, data, business, legal, financial and logistical
operations. The Managers expect that the grants would only be
awarded if the projects, business ventures, and other
authorized activities are determined to be economically viable
and sustainable. Further, the Managers expect that grants
awarded under this section will facilitate the opening of new
markets for value-added products. It is not the intention of
the Managers that grants made under this section will interfere
with existing markets or be used to fund construction,
acquisition, rental, leasing, or any other means of obtaining
physical capacity to produce or process agricultural
commodities.
Subtitle E--Nutrition Programs
Sec. 241. Calculation of minimum amount of commodities for School Lunch
requirements
Section 241 directs the Secretary to purchase additional
food commodities in fiscal years 2000 and 2001 for distribution
to schools participating in the School Lunch program.
Sec. 242. School Lunch data
Section 242 provides that information obtained for
determining eligibility for free and reduced-price school meals
in the School Lunch program may be shared to aid in the
enrollment of lower-income children in the State Children's
Health Insurance Program (SCHIP). This section also authorizes
a pilot project using local agencies operating the Special
Supplemental Nutrition Program for Women, Infants, and Children
(the WIC program) to help enroll children in the SCHIP.
Sec. 243. Child and Adult Care Food Program integrity
Section 243 reforms the Child and Adult Care Food Program
(CACFP) to address problems of fraud, abuse, and deficient
management identified in investigations by the General
Accounting Office and the Agriculture Department's Office of
Inspector General. This section also expands the availability
of Federal nutrition assistance for after-school programs and
authorizes an additional State to increase participation in the
CACFP by for-profit child care organizations serving lower-
income children.
Sec. 244. Adjustments to WIC Program
Section 244 provides adjustments to the WIC program to
increase participation by residents of remote Indian or Native
villages and provide a program structure that better serves
these communities.
Subtitle F--Other Programs
Sec. 251. Authority to provide loan in connection with boll weevil
eradication
Section 251 requires the Secretary using the Commodity
Credit Corporation to make a loan to the Texas Boll Weevil
Eradication Foundation, Inc., in the amount of $10,000,000.
This loan is to enable the Foundation to retire debt associated
with boll weevil eradication zones that have ended their
participation, in whole or in part, in the boll weevil
eradication program.
Repayment for the loan will begin on January 1 of the
year following the first year that a boll weevil eradication
zone, or any part of the zone, responsible for the debt retired
using the loan resumes participation in the boll weevil
eradication program.
The cost of the credit subsidy of this loan will be the
amount necessary to provide the full $10,000,000 loan to the
Foundation. The Managers expect that the credit subsidy
necessary to implement the total $10,000,000 loan will be
approximately 51%. However, the Managers expect USDA to use
whatever amount of subsidy is necessary to make the $10,000,000
loan.
The Managers expect that this loan to the Texas Boll
Weevil Eradication Foundation, Inc., will retire its debt to
Farm Credit System institutions associated withthe Lower Rio
Grande Valley Boll Weevil Eradication Zone and that portion of the debt
associated with the South Texas Winter Garden Zone apportioned to
Austin, Brazoria, Colorado, Fort Bend, Jackson, Matagorda, and Wharton
Counties by the Texas Commissioner of Agriculture. This loan will
provide funds to be used by the Foundation for full and final
satisfaction, on a pro-rata basis, of the notes relating to the debt
held by those Production Credit Associations and the Farm Credit Bank
of Texas. The Managers expect that upon payment of the notes from the
funds provided by this loan, that the Texas Boll Weevil Eradication
Foundation, Inc., will be released from any and all claims,
liabilities, or obligations associated with or evidenced by the notes.
Sec. 252. Animal disease control
Subsection (a) directs USDA to spend $7 million in Fiscal
Year 2001 for psuedorabies vaccination costs incurred by pork
producers. Subsection (b) directs USDA to spend $6 million in
Fiscal Year 2001 on bovine tuberculosis in Michigan. Funding
shall be used for surveillance and testing of cattle;
surveillance and testing of wildlife; research at ARS and
Michigan State University; increases in indemnity payments to
encourage depopulation of infected herds; diagnostic testing
and treatment of humans; slaughter surveillance; controlling
and preventing exposure of livestock to wildlife; fencing to
minimize contact between wildlife and domestic livestock; and
risk communications and improvements in technology for
communications. Current laws stipulate that funding for Animal
and Plant Health Inspection Service of the U.S. Department of
Agriculture eradication programs is to be withdrawn from
existing Commodity Credit Corporation funds. The Managers
intend for eradication program funding to continue to be
extracted from Commodity Credit Corporation funds.
Sec. 253. Emergency loans for seed producers
This section directs USDA to provide non-interest loans
to producers of 1999 crop grass, forage, vegetable and sorghum
seed that have not received payments from AgriBiotech (ABT) as
a result of bankruptcy proceedings involving ABT. ABT, one of
the largest single turf, forage, and alfalfa seed companies in
the country, filed Chapter 11 bankruptcy affecting over 1200
farmer growers in 39 states. ABT cannot pay growers for their
1999 produced crop and the growers are the largest segment of
creditors in the bankruptcy. This section directs the Secretary
to create an emergency no-interest loan program for those
producers involved in the bankruptcy proceedings. For the
producer to be eligible, the seed producer must have a claim in
the bankruptcy proceeding. The Managers believe that this
situation is unique as ABT is an organization of numerous small
family producers who will be adversely impacted financially by
this bankruptcy proceedings.
Sec. 254. Temporary suspension of authority to combine certain offices
The Managers expect the Secretary to submit a detailed
report regarding the justification used to select a state
office collocation site in each of the applicable states. The
manager expects the Secretary to notify all applicable Agencies
that no agency or agency employee shall take any action to
solicit office space or renovate current leased space for the
purpose of accommodating collocated agencies or take any other
action to collocate state offices from the date of enactment of
this Act through June 1, 2001. The Managers expect those state
agencies that are scheduled for collocation and located in the
same county on the date of enactment to continue to pursue
efforts to collocate. The Managers expect the report to be
inclusive of all factors used in the selection of the site,
including the methodology used in the site selection.
Sec. 255. Farm operating loan eligibility
This section affects the Secretary of Agriculture's
administration of the loan eligibility limitations of sections
311 and 319 of the Consolidated Farm and Rural Development Act.
Current law makes borrowers who have had a number of direct or
guaranteed operating loans from the Farm Service Agency (FSA)
ineligible for additional seasonal operating loans.
The Managers understand that previous policy was intent
on limiting loans to long-time borrowers in an effort to
graduate them to other sources of credit. The intent was to
free up credit resources for beginning, socially-disadvantaged
and minority farmers and ranchers during a period when fewer
appropriations were being made for federal farm loan programs.
However, because of the recent downturn in the farm economy
caused by low prices, the Managers are concerned that some
farmers may be turned away from the FSA. The only reason that
otherwise efficient farmers cannot get credit from FSA is
because of an arbitrary term limit in the law. While the
Managers believe this change is needed at this time, the
amendment extends only through December 31, 2002, which should
provide ample time for the Congress to fully reexamine this
matter in the context of the next farm bill.
Sec. 256. Water systems for rural and Native villages in Alaska
This section amends section 306D of the Consolidated Farm
and Rural Development Act by increasing the authorization of
appropriations from $20,000,000 to $30,000,000 for water and
wastewater systems for rural and native villages in Alaska.
Also authorizes a transfer of up to two percent of the funds
for training and technical assistance programs that are related
to the operation and management of the systems.
Sec. 257. Crop and pasture flood compensation program
Directs the Secretary to compensate producers for the
loss of cropland or pastureland due to unusual flooding. This
assistance is targeted to producers who are still experiencing
flooding, but have not been compensated for loses between time
of enactment and the Flood Compensation Program authorized by
the 1998 omnibus appropriations bill, using that program's
framework and base year. The section sets a specific framework
on the compensation. Acres on which crops were planted but
failed are not eligible. A payment limitation of $40,000 is
included.
The Managers encourage the Department to take all
necessary administrative actions to ensure the availability of
no less than 4 million acres for partial field conservation
buffer enrollments within the existing Conservation Reserve
Program. Also, the Committee encourages the Department to
extend stewardship incentive payments to contour grass strips
and cross wind trap strips, as well as any additional
conservation practices that may be made eligible for the
continuous sign-up or conservation reserve enhancement
programs.
This section also includes a technical correction to the
fiscal year 2000 agricultural appropriations act to
specifically include Lake County, Oregon as being eligible for
assistance that was made available under that act. The Managers
are aware that producers in Lake County have faced a similar
disastrous situation, but were inadvertently left out of the
fiscal year 2000 agriculture appropriations section. The
Managers are also aware that, under the fiscal year 2000
agricultural appropriations act, there are still funds
available in this fiscal year to assist ranchers in Lake
County, and this section provides the necessary authority for
the Secretary of Agriculture to move forward with that
assistance. The Managers expect the Secretary to provide that
assistance as soon as possible.
Sec. 258. Flood mitigation near Pierre, South Dakota
This section requires the Army Corps of Engineers to, as
soon as practicable after enactment, begin acquiring land and
property from willing sellers; relocate individuals located on
the land, improve infrastructure, and take other necessary
actions with respect to such property.
This section also conditions winter releases of the Oahe
Powerplant on the Secretary of the Army completing an amendment
to his economic analysis and identifying mitigation benefits
with respect to existing ground water flooding.
Sec. 259. Restoration of eligibility for crop loss assistance
This section restores the eligibility for individuals
otherwise eligible for disaster assistance under 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, solely because the individual or entity
changed the legal structure of the individual's or entity's
farming operation.
Subtitle G--Administration
Sec. 261. Funding
Includes the funding amount for various sections in the
bill.
Sec. 262. Obligation period
Provides that the Commodity Credit Corporation shall
obligate and spend the funds made available under section
261(a)(1) (funding for school lunch commodities) only during
fiscal year 2000 and funds made available to fund other
provisions of the bill shall be obligated and spent only during
fiscal year 2001.
Sec. 263. Regulations
Directs the Secretary and the Commodity Credit
Corporation, whichever is appropriate, to promulgate
regulations to implement Title II of the legislation without
regard to notice and comment rulemaking.
The Managers have provided the Secretary relief from
several statutory provisions relating to the promulgation of
regulations needed to carry out title II. This language is the
same as provisions passed by Congress in prior legislation for
farmers. The Managers are particularly troubled by the fact
that, even with these waivers, the Department has been unable
to implement programs in a timely manner in prior years, most
notably the oilseed assistance that was provided by Congress in
October of 1999 but has yet to be distributed. In order to
assist Congress in future deliberations the Managers expect the
Inspector General to complete a report for submission to both
Agriculture Committees with 60 days of enactment of this Act
addressing the reasons for the inability of the Department to
implement programs in a timely manner.
Sec. 264. Paygo adjustment
Prohibits the Director of the Office of Management and
Budget from making any estimates of changes in direct spending
outlays and receipts in fiscal year 2000 resulting from
enactment of Title II of the legislation.
Sec. 265. Commodity Credit Corporation reimbursement
This section specifically directs the Secretary of the
Treasury to reimburse the Commodity Credit Corporation for net
realized losses sustained, but not previously reimbursed, under
this title.
TITLE III--THE BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000
The Conference substitute adopts a new title which
authorizes research to promote the conversion of biomass into
biobased industrial products:
Section 301. Short title
The Biomass Research and Development Act.
Section 302. Findings
States the need for a focused, integrated and innovation-
driven research effort to develop technologies for the
production of biobased industrial products.
Section 303. Definitions
Defines the terms Advisory Committee, Biobased Industrial
Product, Biomass, Board, Initiative, Institution of Higher
Education, National Laboratory, Point of Contact, Processing,
and Research and Development.
Section 304. Cooperation and coordination in biomass research and
development
Requires that the Secretaries of Agriculture and Energy
shall cooperate and coordinate policies and procedures that
promote biomass research and development leading to the
production of biobased industrial products. Specifies the
purpose and areas for coordination.
Section 305. Biomass Research and Development Board
Establishes a board to coordinate programs, to maximize
benefits and to bring coherence to strategic planning within
and among departments and agencies of the Federal Government to
promote the use of biobased industrial products. The Board
shall be comprised of a minimum of six members. The Board shall
be cochaired by the points of contact appointed by the
Secretaries of Agriculture and Energy by and with the advice
and consent of the Senate.
Section 306. Biomass Research and Development Technical Advisory
Committee
Establishes an advisory committee to advise the
Secretaries of Agriculture USDA and the Department of Energy
DOE and the Biomass Research and Development Board, to
facilitate consultations and partnerships, and to evaluate and
perform strategic planning for the Biomass Research and
Development Initiative. The Committee shall be comprised of a
minimum of ten members, all appointed by the points of contact.
The Committee will meet at least quarterly. Lengths of terms
are specified.
Section 307. Biomass Research and Development Initiative
Provides that the Secretaries of Agriculture and Energy,
in consultation with the Board, shall establish 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 and development of low cost and sustainable biobased
industrial products. Provides that funds appropriated for
biomass research and development under the general authority of
the Secretary of Energy to conduct research and development
programs may be used to carry out this title. Also authorizes $
49,000,000 within USDA for each of fiscal years 2000 through
2005 to carry out this title.
Section 308. Administrative support and funds
Provides the Secretaries of Agriculture and Energy, and
other agencies, the authority to give administrative support
and funds to the Board and Advisory Committee if needed.
Section 309. Reports
Requires that an initial report be jointly submitted by
the Secretaries of Agriculture and Energy within 180 days of
enactment of the Act and that an annual report be submitted to
Congress for each fiscal year for which funds are made
available.
Section 310. Termination of authority
Authority granted by this title shall terminate on
December 31, 2005.
TITLE IV--PLANT PROTECTION
The Conference substitute adopts a new provision which
consolidates and enhances the authority of the Secretary to
regulate in interstate and foreign commerce, the movement of
any plant, plant product, biological control organism, or
noxious weed if the Secretary determines the action is
necessary to prevent the introduction or dissemination of a
plant pest or noxious weed:
Sec. 401. Short title and table of contents
The short title of this Act is the ``Plant Protection
Act.'' This section also contains the table of contents for the
Act.
Sec. 402. Findings
Sec. 403. Definitions
Sections 3(1), (3)-(8), (11), (17), and (19) are all new
definitions, but are commonly accepted definitions for the
words, ``article,'' ``enter and entry,'' ``export and
exportation,'' ``import and importation,'' ``interstate,''
``interstate commerce,'' ``means of conveyance,'' ``permit,''
``State,'' and ``this Act.''
Sec. 403(2) is new. Defining biological control organisms
separately makes our authority over these organisms explicit
when they present a potential plant pest risk.
Sec. 403(9), (12), (13), (15), (16), and (20), ``move and
related terms,'' ``person,'' ``plant,'' ``plant product,''
``Secretary,'' and ``United States'' have all been derived from
existing law with little or no modification.
Sec. 403(10), ``noxious weed,'' has been expanded from
existing law.
Sec. 403(14), ``plant pest,'' has been expanded to
include all vertebrate and invertebrate animals, except humans.
Sec. 403(18), ``systems approach,'' is new.
Subtitle A--Plant Protection
Sec. 411. Regulation of movement of plant pests
Prohibits the importation, entry, exportation, or
movement in interstate commerce, mailing, or delivery (from any
post office or by any mail carrier) of any plant pest unless
the movement is in accordance with regulations issued by the
Secretary. All processes used to develop such regulations will
be transparent and accessible and the regulations will be based
on sound science. This provision does not authorize the opening
of any mail unless such action is authorized under postal laws.
This section would authorize the Secretary to issue regulations
that allow the movement of a plant pest in interstate commerce
without restriction. Also provides for a petition process to
add or remove plant pests from regulation.
Sec. 412. Restrictions on movement
Authorizes the Secretary to prohibit or restrict the
importation, entry, exportation, or movement in interstate
commerce of any plant, plant product, biological control
organism, noxious weed, article, or mean of conveyance if the
Secretary determines the action is necessary to prevent the
introduction or dissemination of a plant pest or noxious weed.
Within 1 year after the Act is enacted, the Secretary shall
publish for public comment a notice describing the processes
governing such import requests. Requires the Secretary to
conduct a study of the effectiveness of using systems
approaches to guard against the introduction into the United
States of plant pathogens associated with proposals for
imported plants or plant products. Not later than 2 years after
the Act is enacted, the Secretary shall report to Congress on
the results of this study. Authorizes theSecretary to determine
by regulation those noxious weeds and biological control organisms that
may or may not freely move within interstate commerce. A person may
petition the Secretary to add or remove individual plant species or
biological control organisms from such regulations.
Sec. 413. Notification and holding requirements upon arrival
Requires the Secretary of Treasury to notify promptly the
Secretary of Agriculture of the arrival of plants, plant
products, biological control organisms, plant pests, or noxious
weeds at the port of entry. It also requires the Secretary of
Treasury to hold the articles until the Secretary of
Agriculture has inspected or otherwise released them.
Further, section 413 requires persons responsible for
articles for which a permit under sections 411 or 412 to notify
the Secretary of Agriculture or appropriate official in the
State of destination of relevant information concerning the
shipment before moving it from the port of entry. Finally,
section 413 prohibits the movement of any imported plant, plant
product, biological control organism, plant pest, noxious weed,
article, or means of conveyance from the port of entry or
interstate unless it has been inspected or otherwise released
by the Secretary of Agriculture.
Sec. 414. Remedial measures
Section 414 authorizes the Secretary to hold, seize,
quarantine, treat, apply other remedial measures to, destroy,
or dispose of any plant; plant pest; noxious weed; biological
control organism; plant product; article; or means of
conveyance; and progeny of any plant product, plant pest,
biological control organisms, or noxious weed in interstate or
foreign commerce under various circumstances in order to
prevent the dissemination of any plant pest or noxious weed new
to or not known to be widely prevalent or distributed in the
United States. Authorizes the Secretary to order an owner
(including the owner's agent) of any item subject to action
under subsection (a) to treat, apply other remedial measures,
to destroy, or otherwise dispose of such item without cost to
the Federal Government in a manner the Secretary deems
appropriate. If the owner fails to take action as ordered, the
Secretary may take the action and recover the costs of the
actions from the owner or his agent. The Secretary is
authorized to develop a classification system and integrated
management plan regarding noxious weeds. Requires the Secretary
to take the least drastic action to prevent the dissemination
of a plant pest or noxious weed.
Sec. 415. Declaration of extraordinary emergency
Authorizes the Secretary to declare an extraordinary
emergency in certain situations. Once an extraordinary
emergency is declared, the Secretary can take actions to
prohibit or restrict movement or require that other actions be
taken concerning regulated items regardless of whether the
items are moving in interstate commerce. Action can be taken
only if the Secretary finds that the actions taken by the State
are not adequate and the Secretary publishes those findings in
the Federal Register. Actions the Secretary takes must also be
the least drastic actions that are feasible to deal with the
plant pest or noxious weed problem. Finally, the Secretary is
authorized to pay compensation for economic losses.
Sec. 416. Recovery of compensation for unauthorized activities
Authorizes the owners of plants, biological control
organisms, plant products, plant pests, noxious weeds,
articles, or means of conveyance destroyed or disposed of under
section 414 or 415 to bring an action not later than 1 year
after the destruction or disposal in U.S. district court and
for the owner to recover just compensation for an unauthorized
destruction or disposal of such property.
Sec. 417. Control of grasshoppers and mormon crickets
Subject to the availability of funding, the Secretary
shall carry out control programs for grasshoppers and Mormon
crickets on Federal, State, and private lands to protect
rangeland. Authorizes the pooling of funds between the
Department of Agriculture and the Department of the Interior to
conduct such programs on Federal lands controlled by the
Department of the Interior. This section also provides the
formula for the Federal cost share for treatment programs.
Sec. 418. Certification for exports
Authorizes the Secretary to certify for export plants,
plant products, and biological control organisms as to freedom
from plant pests or noxious weeds or exposure to plant pests or
noxious weeds according to phytosanitary or other requirements
of the exporting country.
Subtitle B--Inspection and Enforcement
Sec. 421. Inspections, seizures, warrants
Authorizes warrantless inspections based on guidelines
approved by the Attorney General: (1) of persons or means of
conveyance moving into the United States to determine whether
they are carrying any regulated material; (2) of persons or
means of conveyance moving interstate upon probable cause to
believe that they are carrying regulated material; and (3) of
any person or means of conveyance moving intrastate under
extraordinary emergency conditions (see section 415) upon
probable cause to believe that they are carrying regulated
material. The Secretary is also authorized to enter premises
with a warrant issued by a Federal judge to make inspections
and seizures necessary under the Act.
Sec. 422. Collection of information
Authorizes the Secretary to gather and compile
information and to conduct investigations necessary for the
administration and enforcement of the Act.
Sec. 423. Subpoena authority
Authorizes the Secretary to require the attendance of
witnesses and production of documentary evidence through the
use of subpoenas to aid in investigations and proceedings. This
provision also authorizes the Secretary to request the Attorney
General to take actions to enforce such subpoenas.
Sec. 424. Penalties for violation
Allows for criminal penalties as provided under Title 18
of the U.S. Code for knowing violations of the Act or any
misuse of a permit, certificate, or other document. It also
provides for civil penalties for violations of the Act,
including forging, counterfeiting, using in an unauthorized
manner, altering, defacing, or destroying any certificate,
permit, or document provided for under the Act not to exceed
the greater of: (1) $50,000 for an individual, $250,000 for any
other violation by a person, and $500,000 for all violations
adjudicated in the same proceeding, or (2) twice the gross gain
or gross loss associated with the violation. The penalty has
been increased from $1,000 per violation. Finally, section 204
authorizes the issuance of a notice of warning in lieu of
criminal prosecution.
Sec. 425. Attorney General enforcement actions
Authorizes the Attorney General to prosecute criminal
violations of the Act; bring an action to enjoin violation of
or compel compliance with the Act; or bring an action for
recovery of reimbursable funds, civil penalties, late payment
penalties, or interest that has not been paid.
Sec. 426. Court jurisdiction
Delineates the jurisdiction of courts in most cases
arising under the Act.
Subtitle C--Miscellaneous Provisions
Sec. 431. Cooperation
Authorizes the Secretary to cooperate with other Federal
agencies, States or their political subdivisions, foreign
governments or their political subdivisions, domestic or
international organizations or associations, or other persons
to carry out the Act. Section 301 authorizes the Secretary to
transfer biological control technology to States, Federal
agencies, or other persons for use in control of plant pests or
noxious weeds. Section 301 also authorizes cooperation with
States and other persons in the administration of programs for
the improvement of plants, plant products, and biological
control organisms. Finally, Section 431 authorizes the
Secretary to ensure that all phytosanitary import/export issues
are addressed based on sound science and consistent with
applicable international agreements.
Sec. 432. Buildings, land, people, claims, and agreements
Authorizes the Secretary to acquire and maintain real or
personal property for special purposes; to enter into
contracts, cooperative agreements, memoranda of understanding,
and other agreements; to employ any person; or to make grants
necessary for carrying out this Act. Section 432 also
authorizes the payment of tort claims when the claims arise
outside the United States in connection with activities
authorized by this Act. Claims must be presented in writing
within 2 years after the claim accrues.
Sec. 433. Reimbursable agreements
Authorizes the Secretary to enter into reimbursable fee
agreements for preclearance at locations outside the United
States for plants, plant products, biological control
organisms, and articles. Funds collected are credited to
accounts established by the Secretary and remain available
until expended. Section 433 also authorizes the Secretary to
pay employees performing inspection, quarantine, or other
services relating to imports and exports for all overtime,
night, or holiday work and to require the person for whom the
service is performed to reimburse the Secretary for the
services.
Sec. 434. Regulations and orders
Authorizes the Secretary to issue orders and regulations
necessary to carry out this Act.
Sec. 435. Protection for mail handlers
This Act 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. Preemption
Provides that no State or political subdivision may take
an action to regulate in foreign commerce any article or means
of conveyance, plant, biological control organism, plant pest,
noxious weed, or plant product in order to control or eradicate
a plant pest or noxious weed, or prevent the introduction or
dissemination of a biological control organism, plant pest, or
noxious weed.
Similarly, no State or political subdivision may take an
action to regulate interstate commerce different from Federal
regulations in any of the delineated items; 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. However, if State or local officials can demonstrate a
special local circumstance, they can petition the Secretary to
allow for the imposition of additional prohibitions or
restrictions by the State or local government.
Sec. 437. Severability
Contains standard severability language.
Sec. 438. Repeals
Enumerates the list of laws being repealed and replaced
by this Act.
Subtitle D--Authorizations of Appropriations
Sec. 441. Authorization of appropriations
Authorizes the appropriation of such amounts necessary to
carry out this Act. Unless specifically authorized, no part of
appropriated funds shall be used for indemnification purposes.
Sec. 442. Transfer authority
Authorizes the Secretary to transfer funds without fiscal
year limitation from any agency or corporation of the
Department to arrest, control, eradicate, and/or prevent the
spread of a plant pest or noxious weed in connection with a
threatening agricultural emergency.
Title V--INSPECTION ANIMALS
Sec. 501. Inspection animal civil penalties
Provides for civil penalties of up to $10,000 for causing
harm to or interfering with a Department of Agriculture
inspection animal.
Sec. 502. Inspection animal subpoena authority
Authorizes the Secretary to require the attendance of
witnesses and production of documentary evidence through the
use of subpoenas to aid in investigations and proceedings. This
provision also authorizes the Secretary to request the Attorney
General to take actions to enforce such subpoenas.
Larry Combest,
Bill Barrett,
John Boehner,
Thomas W. Ewing,
Richard Pombo,
Charlie Stenholm,
Gary Condit,
Collin C. Peterson,
Cal Dooley,
Managers on the Part of the House.
Richard G. Lugar,
Jesse Helms,
Thad Cochran,
Paul Coverdell,
Pat Roberts,
Tom Harkin,
Patrick Leahy,
Kent Conrad,
Bob Kerrey,
Managers on the Part of the Senate.
