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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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
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.