| S 1571 IS
107th CONGRESS
1st Session
S. 1571
To provide for the
continuation of agricultural programs through fiscal year 2006.
IN THE SENATE OF THE UNITED
STATES
October 18, 2001
Mr. LUGAR introduced the following
bill; which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
A BILL
To provide for the
continuation of agricultural programs through fiscal year 2006.
Be it enacted by the
Senate and House of Representatives of the United States of America in
Congress assembled,
SECTION 1. SHORT TITLE; TABLE
OF CONTENTS.
(a) SHORT TITLE- This Act
may be cited as the `Farm and Ranch Equity Act of 2001'.
(b) TABLE OF CONTENTS- The
table of contents of this Act is as follows:
Sec. 1. Short title; table
of contents.
TITLE I--COMMODITY PROGRAMS
Subtitle A--Farm Financial Protection
Sec. 112. Risk management
contract.
Sec. 113. Whole farm revenue
insurance.
Sec. 114. Risk management
stabilization accounts.
Sec. 115. Risk management
options available in marketplace.
Sec. 116. Conforming amendments.
Subtitle B--Phase Out of Commodity
Programs
Sec. 121. Prohibition on
agricultural price support and production adjustment.
Sec. 122. Agricultural Market
Transition Act.
Sec. 123. Agricultural Adjustment
Act of 1938.
Sec. 124. Commodity Credit
Corporation Charter Act.
Sec. 125. Agricultural Act
of 1949.
Sec. 126. Agricultural Adjustment
Act.
Sec. 127. Agricultural Act
of 1970.
Sec. 128. General commodity
provisions.
Sec. 129. Specific commodity
provisions.
Sec. 130. Effect of amendments.
TITLE II--CONSERVATION
Subtitle A--Working Land Conservation
Programs
Sec. 201. Environmental
quality incentives program.
Sec. 202. Conservation reserve
program.
Sec. 203. Wetlands reserve
program.
Sec. 204. Farmland and grassland
protection program.
Sec. 205. Wildlife Habitat
Incentive Program.
Subtitle B--Miscellaneous Reforms
and Extensions
Sec. 211. Privacy of personal
information relating to natural resources conservation programs.
Sec. 212. Reform and consolidation
of conservation programs.
Sec. 213. Certification
of private providers of technical assistance.
Sec. 214. National environmental
benefits index.
Sec. 215. Extension of conservation
authorities.
Sec. 216. Technical amendments.
Sec. 217. Effect of amendments.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
Sec. 301. Levels of assistance.
Sec. 302. Food Aid Consultative
Group.
Sec. 303. Assistance for
stockpiling and rapid transportation, delivery, and distribution of shelf-stable
prepackaged foods.
Sec. 304. Prepositioning.
Sec. 305. Expiration date.
Sec. 306. Micronutrient
fortification pilot program.
Sec. 307. Farmer-to-farmer
program.
Sec. 308. Bill Emerson Humanitarian
Trust.
Subtitle B--Agricultural Trade
Act of 1978
Sec. 321. Export credit
guarantee program.
Sec. 322. Market access
program.
Sec. 323. Export enhancement
program.
Sec. 324. Foreign market
development cooperator program.
Sec. 325. Food for progress.
Sec. 326. Exporter assistance
initiative.
Subtitle C--Miscellaneous Agricultural
Trade Provisions
Sec. 331. Emerging markets.
Sec. 332. Sense of the Senate
concerning unilateral sanctions.
Sec. 333. Biotechnology
and agricultural trade program.
Sec. 334. Dairy export incentive
program.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 411. Categorical eligibility
for recipients of cash assistance.
Sec. 412. Disregarding of
infrequent and unanticipated income.
Sec. 413. Simplified treatment
of individuals complying with child support orders.
Sec. 414. Coordinated and
simplified definition of income.
Sec. 415. Exclusion of interest
and dividend income.
Sec. 416. Alignment of standard
deduction with poverty line.
Sec. 417. Simplified dependent
care deduction.
Sec. 418. Alternative procedures
to assist elderly and disabled persons.
Sec. 419. Simplified determination
of housing costs.
Sec. 420. Simplified determination
of utility costs.
Sec. 421. Simplified determination
of earned income.
Sec. 422. Simplified determination
of deductions.
Sec. 423. Simplified resource
eligibility limit.
Sec. 424. Exclusion of licensed
vehicles from financial resources.
Sec. 425. Exclusion of retirement
accounts from financial resources.
Sec. 426. Coordinated and
simplified definition of resources.
Sec. 427. Alternative issuance
systems in disasters.
Sec. 428. Simplified reporting
systems.
Sec. 429. Simplified time
limit.
Sec. 430. Preservation of
access to electronic benefits.
Sec. 431. Cost-neutrality
for electronic benefit transfer systems.
Sec. 432. Simplified procedures
for residents of certain group facilities.
Sec. 433. Simplified determinations
of continuing eligibility.
Sec. 434. Simplified application
procedures for the elderly and disabled.
Sec. 435. Transitional food
stamps for families moving from welfare.
Sec. 436. Quality control.
Sec. 437. Improvement of
calculation of State performance measures.
Sec. 438. Bonuses for States
that demonstrate high performance.
Sec. 439. Simplified funding
rules for employment and training programs.
Sec. 440. Reauthorization
of food stamp program.
Sec. 441. Expanded grant
authority.
Sec. 442. Exemption of waivers
from cost-neutrality requirement.
Sec. 443. Program simplification
demonstration projects.
Sec. 444. Consolidated block
grants.
Sec. 445. Expanded availability
of commodities.
Subtitle B--Miscellaneous Provisions
Sec. 451. Reauthorization
of commodity programs.
Sec. 452. Work requirement
for legal immigrants.
Sec. 453. Qualified aliens.
Sec. 454. Congressional
Hunger Fellows Program.
Sec. 455. Effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 502. Financing of bridge
loans.
Sec. 503. Limitations on
amount of farm ownership loans.
Sec. 504. Joint financing
arrangements.
Sec. 505. Guarantee percentage
for beginning farmers and ranchers.
Sec. 506. Guarantee of loans
made under State beginning farmer or rancher programs.
Sec. 507. Down payment loan
program.
Sec. 508. Beginning farmer
and rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 512. Loans for tribal
farm operations.
Sec. 513. Refinancing of
other debt.
Subtitle C--Administrative Provisions
Sec. 521. Eligibility of
limited liability companies for farm ownership loans, farm operating loans,
and emergency loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority
to enter into contracts; private collection agencies.
Sec. 524. Interest rate
options for loans in servicing.
Sec. 525. Annual review
of borrowers.
Sec. 526. Simplified loan
applications.
Sec. 527. Inventory property.
Sec. 529. Loan authorization
levels.
Sec. 530. Interest rate
reduction program.
Sec. 531. Options for satisfaction
of obligation to pay recapture amount for shared appreciation agreements.
Sec. 532. Waiver of borrower
training certification requirement.
Sec. 533. Annual review
of borrowers.
Subtitle D--Farm Credit
Sec. 541. Board of Directors
of the Federal Agricultural Mortgage Corporation.
Subtitle E--General Provisions
Sec. 551. Inapplicability
of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effect of amendments.
Sec. 554. Effective date.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Rural America Empowerment
and Development
Sec. 601. Full funding of
pending rural development loan and grant applications.
Sec. 602. Broadband access
for rural America.
Sec. 603. Value-added agricultural
product market development grants.
Sec. 604. National Rural
Development Information Clearinghouse.
Sec. 605. White House Conference
on Rural America.
Sec. 606. Bioenergy and
biochemical projects.
Subtitle B--National Rural Development
Partnership
Sec. 612. National Rural
Development Partnership.
Subtitle C--Consolidated Farm
and Rural Development Act
Sec. 621. Water or waste
disposal grants.
Sec. 622. Rural business
opportunity grants.
Sec. 623. Rural water and
wastewater circuit rider program.
Sec. 624. Rural development
assistance organizations.
Sec. 625. Emergency community
water assistance grant program.
Sec. 626. Water and waste
facility grants for Native American tribes.
Sec. 627. Water systems
for rural and native villages in Alaska.
Sec. 628. Rural cooperative
development grants.
Sec. 629. Value-added intermediary
relending program.
Sec. 630. Use of rural development
loans and grants for other purposes.
Sec. 631. Simplified application
forms for loan guarantees.
Sec. 632. Grants for emergency
weather radio transmitters.
Sec. 633. Programs for rural
seniors.
Sec. 634. Rural community
advancement program.
Sec. 635. Delta Regional
Authority.
Sec. 636. SEARCH grants
for small communities.
Subtitle D--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 641. Alternative Agricultural
Research and Commercialization Corporation.
Sec. 642. Telemedicine and
distance learning services in rural areas.
Subtitle E--Miscellaneous Rural
Development Provisions
Sec. 651. Guarantees for
bonds and notes issued for electrification or telephone purposes.
Sec. 652. Expansion of 911
access.
Subtitle F--Miscellaneous
Sec. 661. Senate confirmation
requirement for Rural Utilities Service Administrator.
Subtitle G--Effective Date
Sec. 671. Effective date.
TITLE VII--AGRICULTURAL RESEARCH,
EDUCATION, AND EXTENSION AND RELATED MATTERS
Subtitle A--National Agricultural
Research, Extension, and Teaching Policy Act of 1977
Sec. 702. National Agricultural
Research, Extension, Education, and Economics Advisory Board.
Sec. 703. Grants and fellowships
for food and agricultural sciences education.
Sec. 704. Policy research
centers.
Sec. 705. Nutrition education
program.
Sec. 706. Animal health
and disease research programs.
Sec. 707. Education grants
programs for Hispanic-serving institutions.
Sec. 708. Competitive grants
for international agricultural science and education programs.
Sec. 709. Indirect costs.
Sec. 710. Research equipment
grants.
Sec. 711. Agricultural research
programs.
Sec. 712. Extension education.
Sec. 713. Special authorization
for biosecurity planning and response.
Sec. 714. Availability of
competitive grant funds.
Sec. 715. Joint requests
for proposals.
Sec. 716. Supplemental and
alternative crops.
Sec. 718. Rangeland research.
Subtitle B--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 731. National genetic
resources program.
Sec. 732. High-priority
research and extension initiatives.
Sec. 733. Nutrient management
research and extension initiative.
Sec. 734. Organic agriculture
research and extension initiative.
Sec. 735. Agricultural telecommunications
program.
Sec. 736. Assistive technology
program for farmers with disabilities.
Subtitle C--Agricultural Research,
Extension, and Education Reform Act of 1998
Sec. 741. Initiative for
Future Agriculture and Food Systems.
Sec. 742. Partnerships for
high-value agricultural product quality research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson
Initiative for Crop Diversification.
Sec. 746. Integrated research,
education, and extension competitive grants program.
Sec. 747. Support for research
regarding diseases of wheat and barley caused by fusarium graminearum.
Sec. 748. Office of Pest
Management Policy.
Subtitle D--Land-Grant Funding
Chapter 1--1862 Institutions
Sec. 752. Reporting of technology
transfer activities.
Sec. 753. Compliance with
multistate and integration requirements.
Chapter 2--1994 Institutions
Sec. 754. Extension at 1994
Institutions.
Sec. 755. Equity in Educational
Land-Grant Status Act of 1994.
Sec. 756. Eligibility for
integrated grants program.
Chapter 3--1890 Institutions
Sec. 757. Authorization
percentages for research and extension formula funds.
Sec. 759. Reporting of technology
transfer activities.
Sec. 760. Grants to upgrade
agricultural and food sciences facilities at 1890 land-grant colleges,
including Tuskegee University.
Sec. 761. National research
and training centennial centers.
Sec. 762. Matching funds
requirement for research and extension activities.
Chapter 4--Land-Grant Institutions
in Insular Areas
Sec. 771. Distance education
grants program for insular area land-grant institutions.
Sec. 772. Matching requirements
for research and extension formula funds for insular area land-grant institutions.
Sec. 773. Education grants
for Pacific Islander serving institutions.
Chapter 5--Land-grant Institutions
Sec. 776. Priority-setting
process.
Subtitle E--Other Laws
Sec. 781. Critical agricultural
materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural
research facilities.
Sec. 784. Competitive, special,
and facilities research grants.
Sec. 785. Risk management
education for beginning farmers and ranchers.
Sec. 787. Biomass research
and development.
Subtitle F--New Authorities
Sec. 792. Regulatory and
inspection research.
Sec. 793. Emergency research
transfer authority.
Sec. 794. Review of Agricultural
Research Service.
Sec. 795. Technology transfer
for rural development.
Sec. 796. Beginning farmer
and rancher development program.
Sec. 797. Sense of Congress
regarding doubling of funding for agricultural research and increasing
capacity for research on biosecurity and animal and plant health diseases.
Sec. 798. Rural policy research.
Sec. 798A. Priority for
farmers and ranchers participating in conservation programs.
Subtitle G--Administration
Sec. 799. Effect of amendments.
TITLE VIII--FORESTRY
Sec. 801. Office of International
Forestry.
Sec. 802. Renewable resources
extension activities.
Sec. 803. Forestry incentives
program.
Sec. 804. Sustainable forestry
assistance program.
TITLE IX--ENERGY
Sec. 901. Carbon sequestration
demonstration program.
TITLE X--MISCELLANEOUS
Subtitle A--Agriculture Infrastructure
Security
Sec. 1001. Agriculture Infrastructure
Security Fund.
Sec. 1002. Agriculture Infrastructure
Security Commission.
Subtitle B--Outreach and Assistance
for Socially Disadvantaged Farmers and Ranchers
Sec. 1011. Outreach and
assistance for socially disadvantaged farmers and ranchers.
TITLE I--COMMODITY PROGRAMS
SEC. 101. SHORT TITLE.
This title may be cited
as the `Farm Financial Protection Act'.
SEC. 102. PURPOSES.
The purposes of this title
are--
(1) to encourage producers
to select strategies for managing risk in the farming or ranching operation
of the producer by providing financial assistance that can be applied to
the risk management strategy that the producer believes best addresses
the unique financial, business, and agricultural conditions of the farm
or ranch of the producer; and
(2) to provide new programs
that--
(A) allow producers to address
the risk management strategies that best suit the farming or ranching operation
of the producer; and
(B) do not distort commercial
markets and are consistent with international obligations of the United
States.
Subtitle A--Farm Financial Protection
SEC. 111. DEFINITIONS.
(1) ADJUSTED GROSS REVENUE-
The term `adjusted gross revenue' means the adjusted gross income for all
agricultural enterprises of a producer in an applicable year, excluding
revenue earned from nonagricultural sources, as determined by the Secretary--
(A) by taking into account
gross receipts from the sale of crops and livestock on all agricultural
enterprises of the producer, including insurance indemnities resulting
from losses in the agricultural enterprises;
(B) by including all farm
payments paid by the Secretary for all agricultural enterprises of the
producer, including--
(i) a voucher received under
section 112; and
(ii) any marketing loan
gains described in section 1001(3)(A) of the Food Security Act of 1985
(7 U.S.C. 1308(3)(A));
(C) by deducting the cost
or basis of livestock or other items purchased for resale, such as feeder
livestock, on all agricultural enterprises of the producer; and
(i) a schedule F of the
Federal income tax returns of the producer; or
(ii) a comparable tax form
related to the agricultural enterprises of the producer, as approved by
the Secretary.
(2) AGRICULTURAL COMMODITY-
The term `agricultural commodity' means any agricultural commodity, food,
feed, fiber, or livestock.
(3) AGRICULTURAL ENTERPRISE-
The term `agricultural enterprise' means the production and marketing of
all agricultural commodities (including livestock but excluding tobacco)
on a farm or ranch.
(4) APPLICABLE YEAR- The
term `applicable year' means the year during which the producer elects
to receive a voucher under a risk management contract.
(5) AVERAGE ADJUSTED GROSS
REVENUE- The term `average adjusted gross revenue' means--
(A) the average of the adjusted
gross revenue of a producer for each of the preceding 5 taxable years;
or
(B) in the case of a beginning
farmer or rancher or other producer that does not have adjusted gross revenue
for each of the preceding 5 taxable years, the estimated income of the
producer that will be earned from all agricultural enterprises for the
applicable year, as determined by the Secretary.
(6) PRODUCER- The term `producer'
means an individual or entity, as determined by the Secretary for an applicable
year, that--
(A) shares in the risk of
producing, or provides a material contribution in producing, an agricultural
commodity for the applicable year;
(B) has a substantial beneficial
interest in the agricultural enterprise in which the agricultural commodity
is produced;
(C)(i) during each of the
preceding 5 taxable years, has filed--
(I) a schedule F of the
Federal income tax returns; or
(II) a comparable tax form
related to the agricultural enterprises of the individual or entity, as
approved by the Secretary; or
(ii) is a beginning farmer
or rancher or other producer that does not have adjusted gross revenue
for each of the preceding 5 taxable years, as determined by the Secretary;
and
(D)(i) has earned at least
$20,000 in average adjusted gross revenue for each of the preceding 5 taxable
years;
(ii) is a limited resource
farmer or rancher, as determined by the Secretary; or
(iii) in the case of a beginning
farmer or rancher or other producer that does not have adjusted gross revenue
for each of the preceding 5 taxable years, has at least $20,000 in estimated
income from all agricultural enterprises for the applicable year, as determined
by the Secretary.
(7) RISK MANAGEMENT CONTRACT-
The term `risk management contract' means a contract entered into under
section 112 annually for each applicable year.
(8) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
SEC. 112. RISK MANAGEMENT CONTRACT.
(a) OFFER- The Secretary
shall offer to enter into a risk management contract annually for each
of the 2003 through 2006 crops with each producer that is engaged in the
production of an agricultural commodity for an applicable year.
(1) IN GENERAL- Under a
risk management contract, the Secretary shall pay to a producer a voucher
that is equivalent in value to the average adjusted gross revenue of the
producer.
(2) PAYMENT RATE- The payment
rate for a voucher each year shall be equal to the total of--
(A) 6 percent for the amount
of the average adjusted gross revenue of a producer that is less than $250,000;
(B) 4 percent for the amount
of the average adjusted gross revenue of a producer that is $250,000 or
more but less than $500,000;
(C) 1 percent for the amount
of the average adjusted gross revenue of a producer that is $500,000 or
more but less than $1,000,000; and
(D) 0 percent for the amount
of the average adjusted gross revenue of a producer that is $1,000,000
or more.
(1) IN GENERAL- An individual
or entity may not receive directly or indirectly a voucher that is equal
in value to more than $30,000 in a year.
(2) INELIGIBLE ENTITIES-
An entity shall be ineligible to receive a voucher under this section if
the entity is--
(A) an agency of the Federal
Government, a State, or a political subdivision of a State;
(B) an entity that has shares
traded on a public stock exchange; or
(C) another entity, as determined
by the Secretary.
(3) VERIFICATION- The Secretary
shall determine which individuals or entities are eligible for a voucher
under this section by using social security numbers or taxpayer identification
numbers, respectively.
(1) IN GENERAL- In exchange
for a voucher under a risk management contract, a producer shall--
(A) purchase whole farm
revenue insurance coverage under section 525 of the Federal Crop Insurance
Act (as added by section 113(a)) that provides a revenue guarantee of at
least 80 percent of the average adjusted gross revenue of the producer
at a payment rate of 100 percent;
(B) contribute an amount
that is at least equal to the amount of the voucher to an Account established
under section 114; or
(C) redeem the voucher for
a cash payment and use the payment to carry out 1 or more risk management
strategies for the farm under section 115 that are sufficient to guarantee
a net income from all agricultural enterprises of the producer for the
applicable year that is at least 80 percent of the average adjusted gross
revenue of the producer.
(2) CONSERVATION COMPLIANCE-
In addition to implementing 1 of the risk management strategies under paragraph
(1), a producer shall agree, in exchange for a voucher, to--
(A) comply with applicable
highly erodible land conservation requirements under subtitle B of title
XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); and
(B) comply with applicable
wetland conservation requirements under subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.).
(3) EXCESS VOUCHER AMOUNTS-
(A) WHOLE FARM REVENUE INSURANCE
COVERAGE- If a producer elects to use a voucher to purchase whole farm
revenue insurance coverage under section 525 of the Federal Crop Insurance
Act (as added by section 113(a)) and the amount of the voucher exceeds
the premium for the coverage, the producer may only deposit the amount
of the voucher that exceeds the premium into an Account in accordance with
section 114.
(B) RISK MANAGEMENT OPTIONS-
If a producer elects to use a voucher to carry out 1 or more risk management
strategies under section 115 and the amount of the voucher exceeds the
amount necessary to carry out the strategies, the producer may only deposit
the amount of the voucher that exceeds the amount necessary
to carry out the strategies
into an Account in accordance with section 114.
(4) TENANTS AND SHARECROPPERS-
In carrying out this subtitle, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
(1) APPLICATION- A producer
that elects to enter into a risk management contract for an applicable
year shall submit an application to the Secretary prior to the beginning
of the calendar year in which the voucher would be paid.
(2) PAYMENT OF VOUCHER-
The Secretary shall make available to the producer the full amount of the
voucher required to be paid for the applicable year not earlier than October
1 of the applicable year.
(3) INTERNET- The Secretary
shall facilitate the contract process required under this section, to the
maximum extent practicable, by using the Internet.
(4) COMPLIANCE- The Secretary
shall perform random audits of producers that enter into risk management
contracts to ensure that the producers comply with the risk management
contracts.
(5) VIOLATIONS- If a producer
has accepted a risk management payment for an applicable year and the producer
fails to comply with subsection (d) with respect to the applicable year,
the producer--
(A) shall refund to the
Secretary an amount equal to the amount of the voucher; and
(B) may be determined to
be ineligible to receive a voucher under this subtitle for a period of
not to exceed 5 years, as determined by the Secretary.
(f) SHARING OF BENEFITS-
The Secretary shall provide for the sharing of benefits under this subtitle
among all producers on a farm on a fair and equitable basis.
(g) COMMODITY CREDIT CORPORATION-
The Secretary shall use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
SEC. 113. WHOLE FARM REVENUE
INSURANCE.
(a) IN GENERAL- The Federal
Crop Insurance Act (7 U.S.C. 1501 et. seq.) is amended by adding at the
end the following:
`SEC. 525. WHOLE FARM REVENUE
INSURANCE.
`(a) DEFINITIONS- In this
section:
`(1) ADJUSTED GROSS REVENUE-
The term `adjusted gross revenue' means the adjusted gross income for all
agricultural enterprises of a producer, excluding revenue earned from nonagricultural
sources, as determined by the Secretary--
`(A) by taking into account
gross receipts from the sale of all crops and livestock on all agricultural
enterprises of the producer, including insurance indemnities resulting
from losses in the agricultural enterprises;
`(B) by deducting the cost
or basis of livestock or other items purchased for resale, such as feeder
livestock, on all agricultural enterprises of the producer; and
`(i) a schedule F of the
Federal income tax returns; or
`(ii) a comparable tax form
related to the agricultural enterprises of the producer, as approved by
the Secretary.
`(2) AGRICULTURAL COMMODITY-
The term `agricultural commodity' means any agricultural commodity, livestock
(as defined in section 523(b)(1)), food, feed, or fiber.
`(3) AGRICULTURAL ENTERPRISE-
The term `agricultural enterprise' means the production and marketing of
all agricultural commodities (including livestock) on a farm or ranch.
`(4) AVERAGE ADJUSTED GROSS
REVENUE- The term `average adjusted gross revenue' means--
`(A) the average adjusted
gross revenue of a producer for the preceding 5 taxable years; or
`(B) in the case of a beginning
farmer or rancher or other producer that does not have adjusted gross revenue
for each of the preceding 5 taxable years, the estimated income of the
producer that will be earned from all agricultural enterprises for the
applicable year, as determined by the Secretary.
`(b) REVENUE INSURANCE-
If a producer elects to use a voucher in accordance with section 112(d)(1)(A)
of the Farm and Ranch Equity Act of 2001, the producer may use the voucher
to obtain insurance that provides a revenue guarantee for all agricultural
enterprises of the producer.
`(c) REVENUE GUARANTEE-
The amount of the revenue guarantee for a policy of revenue insurance under
this section for the agricultural enterprises of a producer shall be equal
to the product obtained by multiplying--
`(1) the coverage level;
by
`(2) the average adjusted
gross revenue of the producer.
`(d) COVERAGE LEVEL- The
coverage level for whole farm revenue insurance under this section shall
be 80 percent of the average adjusted gross revenue of a producer.
`(e) PURCHASE OF MULTIPERIL
OR REVENUE COVERAGES- A producer that purchases coverage under this section
shall not be required to purchase other policies of multiperil or revenue
coverage under this title.
`(f) ADMINISTRATION- In
providing a policy of whole farm revenue insurance to a producer under
this section, the Secretary shall--
`(1) offer the policy through
a reinsurance agreement with a private insurance company;
`(2) ensure that the policy
is actuarially sound;
`(3) require the producer
to pay administrative fees and premiums for the policy in accordance with
subsections (c)(10) and (d), respectively, of section 508; and
`(4) pay a portion of the
premium for the policy in an amount that does not exceed the amount authorized
under section 508(e)(2)(F).
`(g) DELIVERY REQUIRED-
Notwithstanding any other provision of law, each insurance company that
is reinsured under the Standard Reinsurance Agreement shall offer a whole
farm revenue insurance policy described in this section.
`(h) REINSURANCE YEARS-
This section shall apply to each of the 2003 through 2006 reinsurance years.'.
(b) CONFORMING AMENDMENT-
Section 508(e)(2)(F) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(F))
is amended by inserting `(including whole farm revenue insurance)' after
`not based on individual yield'.
SEC. 114. RISK MANAGEMENT STABILIZATION
ACCOUNTS.
(a) DEFINITION OF ACCOUNT-
In this section, the term `Account' means a Risk Management Stabilization
Account that is established in the name of a participating producer in
a bank or financial institution that is selected by the producer and approved
by the Secretary, consisting of--
(1) contributions of the
producer; and
(2) matching contributions
of the Secretary.
(b) ESTABLISHMENT- If a
producer elects to use a voucher in accordance with section 112(d)(1)(B),
the producer shall establish an Account under which--
(1) the producer shall provide
monetary contributions to the Account;
(2) the Secretary shall
provide matching contributions to the Account; and
(3) the producer may withdraw
accumulated funds from the Account.
(1) PRODUCER CONTRIBUTION-
A producer shall deposit an amount that is at least equal to the amount
of the voucher determined under section 112(b).
(2) MATCHING CONTRIBUTION-
(A) IN GENERAL- Subject
to subparagraph (C), the Secretary shall provide a matching contribution
that is equal to the amount deposited by the producer into the Account.
(B) VALUE- Before a voucher
is deposited into an Account under subparagraph (A), the voucher shall
have no value during the applicable year.
(C) CONTRIBUTIONS EXCEEDING
VOUCHER- The amount of any producer contributions into the Account that
exceed the amount of the voucher shall not be eligible for matching contributions.
(3) INTEREST- Funds deposited
into the Account may earn interest at the commercial rates provided by
the bank or financial institution in which the Account is established.
(d) MAXIMUM ACCOUNT BALANCE-
The balance of an Account of a producer may not exceed 150 percent of the
average adjusted gross revenue of the producer.
(e) USE- Funds credited
to the Account--
(1) shall be available for
withdrawal by a producer, in accordance with subsection (f); and
(2) may be used for purposes
determined by the producer.
(1) IN GENERAL- Subject
to paragraphs (2) and (3), a producer may withdraw funds from the Account
if the estimated net income for an applicable year from the agricultural
enterprises of the producer is less than the average adjusted gross revenue
of the producer.
(2) AMOUNT- The amount of
a withdrawal by a producer from an Account may not exceed the difference
between (as determined by the Secretary)--
(A) the average adjusted
gross revenue of the producer; and
(B) the estimated net income
for the agricultural enterprises of the producer for the year for which
a withdrawal occurs.
(3) RETIREMENT- A producer
that ceases to be actively engaged in farming, as determined by the Secretary--
(A) may withdraw the full
balance from, and close, the Account; and
(B) may not establish another
Account.
(g) ADMINISTRATION- The
Secretary shall administer this section through the Farm Service Agency
and local and county offices of the Department of Agriculture.
(h) COMMODITY CREDIT CORPORATION-
The Secretary shall use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
SEC. 115. RISK MANAGEMENT OPTIONS
AVAILABLE IN MARKETPLACE.
(a) DEFINITION OF REGULATED
EXCHANGE- The term `regulated exchange' means a board of trade (as defined
in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)) that is designated
as a contract market under section 2(a)(1)(C) of that Act (7 U.S.C. 2a(a)(1)(C)).
(b) FARM PRICE PROTECTION-
If a producer elects to use a voucher in accordance with section 112(d)(1)(C),
the producer shall redeem the voucher for a cash payment and use the payment
to carry out 1 or more risk management strategies for the farm described
in subsection (c) during the applicable year that are sufficient to guarantee
a net income from all agricultural enterprises of the producer for the
applicable year that is at least 80 percent of the average adjusted gross
revenue of the producer.
(c) RISK MANAGEMENT STRATEGIES-
A producer may use a cash payment obtained under subsection (b) to purchase--
(1) crop or revenue insurance
available under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
(other than whole farm revenue insurance under section 525 of that Act)
or private insurance (such as hail coverage);
(2) a future or option on
a regulated exchange, as determined by the Secretary;
(3) an agricultural trade
option, purchased other than on a regulated exchange, for an agricultural
commodity produced by the producer that is--
(A) an equity option (as
defined in section 1256(g) of the Internal Revenue Code of 1986); or
(B) a hedging transaction
(as defined in section 1256(e)(2) of that Code);
(4) a cash forward or other
marketing contract;
(5) a trust that is authorized
by Federal law for eligible farming businesses that may be established
to accept tax deductible contributions; or
(6) other type of farm price
protection that is available in the private sector and approved by the
Secretary.
SEC. 116. CONFORMING AMENDMENTS.
Section 506(m) of the Federal
Crop Insurance Act (7 U.S.C. 1506(m)) is amended--
(1) in paragraph (1), by
striking `participation in the multiple peril crop insurance program' and
inserting `a covered person to participate in the multiple peril crop insurance
program (including whole farm revenue insurance under section 525) or entering
into a risk management contract under section 112 of the Farm Financial
Protection Act';
(2) by striking `policyholder'
each place it appears and inserting `covered person'; and
(3) in paragraph (2), by
striking `POLICYHOLDERS' and inserting `COVERED PERSONS'.
Subtitle B--Phase Out of Commodity
Programs
SEC. 121. PROHIBITION ON AGRICULTURAL
PRICE SUPPORT AND PRODUCTION ADJUSTMENT.
(a) IN GENERAL- Notwithstanding
any other provision of law, except as otherwise provided in this subtitle
and effective beginning with the 2003 crop or the 2003 marketing, reinsurance,
fiscal, or calendar year (as applicable) for each agricultural commodity,
the Secretary of Agriculture and the Commodity Credit Corporation may not
provide loans, purchases, payments, or other operations or take any other
action to support the price, or adjust or control the production, of an
agricultural commodity by using the funds, facilities, and authorities
of the Commodity Credit Corporation or under the authority of any law.
(b) EXCEPTIONS- Subsection
(a) shall not apply to--
(1) any activities under
the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Act of 1937;
(2) section 32 of the Act
of August 24, 1935 (7 U.S.C. 612c; 49 Stat. 774, chapter 641);
(3) part I of subtitle B
of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311
et seq.); and
(4) sections 106, 106A,
and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445, 1445-1, 1445-2).
SEC. 122. AGRICULTURAL MARKET
TRANSITION ACT.
(1) 2003 and subsequent
crops- Effective beginning with the 2003 crop, the Agricultural Market
Transition Act (7 U.S.C. 7201 et seq.) is repealed, other than the following:
(A) Subtitle A (7 U.S.C.
7201 et seq.).
(B) Sections 131, 132, and
133 (7 U.S.C. 7231, 7232, 7233).
(C) Subsections (a) through
(d) of section 134 (7 U.S.C. 7234).
(D) Section 135 (7 U.S.C.
7235).
(E) Sections 141 and 142
(7 U.S.C. 7251, 7252).
(F) Chapter 2 of subtitle
D (7 U.S.C. 7271 et seq.).
(G) Sections 161 through
165 (7 U.S.C. 7281 et seq.).
(H) Subtitle H (7 U.S.C.
7331 et seq.).
(2) 2003 and subsequent
calendar years- Effective January 1, 2003, sections 141 and 142 of the
Agricultural Market Transition Act (7 U.S.C. 7251, 7252) are repealed.
(3) 2006 and subsequent
crops- Effective beginning with the 2006 crop, the following provisions
of the Agricultural Market Transition Act (7 U.S.C. 7231 et seq.) are repealed:
(A) Subtitle C (7 U.S.C.
7231 et seq.).
(B) Chapter 2 of subtitle
D (7 U.S.C. 7271 et seq.), other than section 156(f) (7 U.S.C. 7272(f)).
(b) AVAILABILITY OF NONRECOURSE
MARKETING ASSISTANCE LOANS- Section 131 of the Agricultural Market Transition
Act (7 U.S.C. 7231) is amended --
(1) in subsection (a) by
striking `2002' and inserting `2005'; and
(2) by striking subsection
(b) and inserting the following:
`(b) ELIGIBLE PRODUCTION-
The producers on a farm shall be eligible for a marketing assistance loan
under subsection (a) for any quantity of a loan commodity produced on the
farm.'.
(c) LOAN RATES FOR MARKETING
ASSISTANCE LOANS- Section 132 of the Agricultural Market Transition Act
(7 U.S.C. 7232) is amended to read as follows:
`SEC. 132. LOAN RATES FOR MARKETING
ASSISTANCE LOANS.
`(a) WHEAT- The loan rate
for a marketing assistance loan under section 131 for wheat shall be 90
percent for the 2003 crop, 85 percent for the 2004 crop, and 80 percent
for the 2005 crop, of the simple average price received by producers of
wheat, as determined by the Secretary, during the marketing years for the
immediately preceding 5 crops of wheat, excluding the year in which the
average price was the highest and the year in which the average price was
the lowest in the period.
`(1) CORN- The loan rate
for a marketing assistance loan under section 131 for corn shall be 90
percent for the 2003 crop, 85 percent for the 2004 crop, and 80 percent
for the 2005 crop, of the simple average price received by producers of
corn, as determined by the Secretary, during the marketing years for the
immediately preceding 5 crops of corn, excluding the year in which the
average price was the highest and the year in which the average price was
the lowest in the period.
`(2) OTHER FEED GRAINS-
The loan rate for a marketing assistance loan under section 131 for grain
sorghum, barley, and oats, respectively, shall be established at such level
as the Secretary determines is fair and reasonable in relation to the rate
that loans are made available for corn, taking into consideration the feeding
value of the commodity in relation to corn.
`(c) UPLAND COTTON- The
loan rate for a marketing assistance loan under section 131 for upland
cotton shall be 90 percent for the 2003 crop, 85 percent for the 2004 crop,
and 80 percent for the 2005 crop, of the simple average price received
by producers of upland cotton, as determined by the Secretary, during the
marketing years for the immediately preceding 5 crops of upland cotton,
excluding the year in which the average price was the highest and the year
in which the average price was the lowest in the period.
`(d) EXTRA LONG STAPLE COTTON-
The loan rate for a marketing assistance loan under section 131 for extra
long staple cotton shall be 90 percent for the 2003 crop, 85 percent for
the 2004 crop, and 80 percent for the 2005 crop, of the simple average
price received by producers of extra long staple cotton, as determined
by the Secretary, during the marketing years for the immediately preceding
5 crops of extra long staple cotton, excluding the year in which the average
price was the highest and the year in which the average price was the lowest
in the period.
`(e) RICE- The loan rate
for a marketing assistance loan under section 131 for rice shall be 90
percent for the 2003 crop, 85 percent for the 2004 crop, and 80 percent
for the 2005 crop, of the simple average price received by producers of
rice, as determined by the Secretary, during the marketing years for the
immediately preceding 5 crops of rice, excluding the year in which the
average price was the highest and the year in which the average price was
the lowest in the period.
`(1) SOYBEANS- The loan
rate for a marketing assistance loan under section 131 for soybeans shall
be 90 percent for the 2003 crop, 85 percent for the 2004 crop, and 80 percent
for the 2005 crop, of the simple average price received by producers of
soybeans, as determined by the Secretary, during the marketing years for
the immediately preceding 5 crops of soybeans, excluding the year in which
the average price was the highest and the year in which the average price
was the lowest in the period.
`(2) SUNFLOWER SEED, CANOLA,
RAPESEED, SAFFLOWER, MUSTARD SEED, AND FLAXSEED- The loan rate for a marketing
assistance loan under section 131 for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be 90 percent
for the 2003 crop, 85 percent for the 2004 crop, and 80 percent for the
2005 crop, of the simple average price received by producers of sunflower
seed, individually, as determined by the Secretary, during the marketing
years for the immediately preceding 5 crops of sunflower seed, individually,
excluding the year in which the average price was the highest and the year
in which the average price was the lowest in the period.
`(3) OTHER OILSEEDS- The
loan rates for a marketing assistance loan under section 131 for other
oilseeds shall be established at such level as the Secretary determines
is fair and reasonable in relation to the loan rate available for soybeans,
except in no event shall the rate for the oilseeds (other than cottonseed)
be less than the rate established for soybeans on a per-pound basis for
the same crop.'.
(d) PEANUT PROGRAM- Section
155 of the Agricultural Market Transition Act (7 U.S.C. 7271) is amended
by striking subsections (h) and (i) and inserting the following:
`(h) PHASED REDUCTION OF
LOAN RATE- For each of the 2003, 2004, and 2005 crops of quota and additional
peanuts, the Secretary shall lower the loan rate for each succeeding crop
in a manner that progressively and uniformly lowers the loan rate for quota
and additional peanuts to $0 for the 2006 crop.
`(i) CROPS- This section
shall be effective only for the 1996 through 2005 crops.'.
(e) SUGAR PROGRAM- Section
156 of the Agricultural Market Transition Act (7 U.S.C. 7272) is amended--
(1) in subsection (e), by
striking paragraph (1) and inserting the following:
`(1) LOANS- The Secretary
shall carry out this section through the use of recourse loans.';
(2) in subsection (f), by
striking `2003' each place it appears and inserting `2006';
(3) by redesignating subsection
(i) as subsection (j);
(4) by inserting after subsection
(h) the following:
`(i) PHASED REDUCTION OF
LOAN RATE- For each of the 2003, 2004, and 2005 crops of sugar beets and
sugarcane, the Secretary shall
lower the loan rate for each succeeding crop in a manner that progressively
and uniformly lowers the loan rate for sugar beets and sugarcane to $0
for the 2006 crop.'; and
(5) in subsection (j) (as
redesignated), by striking `2002' and inserting `2005'.
(f) CONFORMING AMENDMENTS-
(1) FLOOD RISK REDUCTION-
Section 385 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7334) is repealed.
(2) CONSERVATION FARM OPTION-
Section 1240M of the Food Security Act of 1985 (16 U.S.C. 3839bb) is repealed.
SEC. 123. AGRICULTURAL ADJUSTMENT
ACT OF 1938.
(1) 2003 and subsequent
marketing years and crops- Effective beginning with the 2003 marketing
or crop year (as applicable), the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.) is repealed, other than the following:
(A) The first section (7
U.S.C. 1281).
(B) Section 301 (7 U.S.C.
1301).
(C) Part I of subtitle B
of title III (7 U.S.C. 1311 et seq.).
(D) Part VI of subtitle
B of title III (7 U.S.C. 1357 et seq.).
(E) Subtitle C of title
III (7 U.S.C. 1361 et seq.).
(F) Subtitle F of title
III (7 U.S.C. 1381 et seq.).
(G) Title V (7 U.S.C. 1501
et seq.).
(2) 2006 and subsequent
marketing years and crops- Effective beginning with the 2006 marketing
year or crop year (as applicable), part VI of subtitle B of title III (7
U.S.C. 1357 et seq.) is repealed.
(1) EXTENSION- Sections
358-1, 358b(c), 358c(d), and 358e(i) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1358-1, 1358b(c), 1358c(d), 1359a(i)) are amended by
striking `2002' each place it appears and inserting `2005'.
(2) PEANUT QUOTA- Part VI
of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1357 et seq.) is amended by adding at the end the following:
`SEC. 358f. PHASED INCREASE
IN QUOTA.
`For each of the 2003, 2004,
and 2005 crops of quota peanuts, the Secretary shall increase the marketing
quota and allotment for each succeeding marketing year in a manner that
progressively and uniformly increases the marketing quota to anticipate
the elimination of the marketing quota for the 2006 crop.'.
(c) CONFORMING AMENDMENTS-
(1) REFERENCES TO PARITY
PRICES- Section 302 of the Agricultural Act of 1948 (7 U.S.C. 1301a) is
amended by striking subsection (f).
(2) TRANSFER OF ACREAGE
ALLOTMENTS- Section 706 of the Food and Agriculture Act of 1965 (7 U.S.C.
1305) is repealed.
(3) PROJECTED YIELDS- Section
708 of the Food and Agriculture Act of 1965 (7 U.S.C. 1306) is repealed.
(4) WHEAT DIVERSION PROGRAMS-
Section 327 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339b) is
repealed.
(5) FARM MARKETING QUOTAS-
The Joint Resolution entitled `Joint Resolution relating to corn and wheat
marketing quotas under the Agricultural Adjustment Act of 1938, as amended',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), is repealed.
(6) COTTON ACREAGE ALLOTMENTS-
The Act of March 29, 1949 (63 Stat. 17, chapter 38; 7 U.S.C. 1344a), is
repealed.
(7) RECONCENTRATION OF COTTON-
The Act of June 16, 1938 (52 Stat. 762, chapter 480; 7 U.S.C. 1383a), is
repealed.
(8) REQUIREMENTS FOR CORN-
Section 308 of the Agricultural Act of 1956 (7 U.S.C. 1442) is repealed.
(9) FIELD MEASUREMENT- Section
1112 of the Omnibus Budget Reconciliation Act of 1987 (101 Stat. 1330-8)
is amended by striking subsection (c).
SEC. 124. COMMODITY CREDIT CORPORATION
CHARTER ACT.
(a) IN GENERAL- Section
5 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c) is amended--
(1) by striking subsection
(a); and
(2) by redesignating subsections
(b) through (g) as subsections (a) through (f), respectively.
(b) CONFORMING AMENDMENT-
Section 619 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1738r) is amended by striking `section 5(f) of the Commodity
Credit Corporation Charter Act' and inserting `section 5(e) of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714c(e))'.
(c) CROPS- The amendments
made by this section apply beginning with the 2006 crop.
SEC. 125. AGRICULTURAL ACT OF
1949.
(a) IN GENERAL- The Agricultural
Act of 1949 (7 U.S.C. 1421 et seq.) is repealed, other than the following:
(1) The first section (7
U.S.C. 1421 note).
(2) Sections 106, 106A,
and 106B (7 U.S.C. 1445, 1445-1, 1445-2).
(3) Section 416 (7 U.S.C.
1431)
(b) CONFORMING AMENDMENTS-
(1) AMOUNT OF ASSESSMENTS-
Section 4609 of the Omnibus Trade and Competitiveness Act of 1988 (7 U.S.C.
624 note; Public Law 100-418) is repealed.
(2) AMERICAN AGRICULTURE
PROTECTION PROGRAM- Section 1002 of the Food and Agriculture Act of 1977
(7 U.S.C. 1310) is repealed.
(3) ADVANCE RECOURSE LOANS-
Section 13 of the Food Security Improvements Act of 1986 (7 U.S.C. 1433c-1)
is repealed.
(4) CONVERSION INTO FUELS-
Section 2001 of the Food and Agriculture Act of 1977 (7 U.S.C. 1435) is
amended--
(A) by striking subsection
(a); and
(i) by striking the subsection
designation;
(ii) by redesignating paragraphs
(1) through (4) as subsections (a) through (d), respectively;
(iii) in subsection (a)
(as so redesignated), by striking `During' and all that follows through
`1949, the' and inserting `The'; and
(iv) by striking `subsection'
each place it appears and inserting `section'.
(5) REIMBURSEMENT OF CCC-
Section 412 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1736f) is amended by striking subsection (d).
(A) Section 9 of the Honey
Research, Promotion, and Consumer Information Act (7 U.S.C. 4608) is amended--
(i) by striking subsection
(d);
(ii) by redesignating subsections
(e) through (i) as subsections (d) through (h), respectively;
(iii) in subsection (a),
by striking `(d), (e), and (i)' and inserting `(d) and (h)';
(iv) in subsection (f) (as
so redesignated), by striking `(f)' and inserting `(e)'; and
(v) in subsection (g)(1)
(as so redesignated)--
(I) in subparagraph (A),
by striking `(A)'; and
(II) by striking subparagraph
(B).
(B) Section 13(b)(2) of
the Honey Research, Promotion, and Consumer Information Act (7 U.S.C. 4612(b)(2))
is amended--
(i) in subparagraph (A)(ii),
by striking `4608(h)(1)' and inserting `4608(g)(1)'; and
(ii) in subparagraph (B)(ii),
by striking `4608(h)(1)' and inserting `4608(g)(1)'.
(7) ESSENTIAL AGRICULTURAL
USE- Section 273 of the Biomass Energy and Alcohol Fuels Act of 1980 (15
U.S.C. 3391a) is amended--
(A) by adding `and' at the
end of paragraph (1);
(B) by striking paragraph
(2); and
(C) by redesignating paragraph
(3) as paragraph (2).
(8) CONSERVATION RESERVE-
(A) RENTAL PAYMENTS- Section
1234(f)(3) of the Food Security Act of 1985 (16 U.S.C. 3834(f)(3)) is amended--
(i) by striking `this Act,'
and inserting `this Act or'; and
(ii) by striking `, or the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)'.
(B) ENVIRONMENTAL EASEMENT
PAYMENTS- Section 1239C(f)(3) of the Food Security Act of 1985 (16 U.S.C.
3839c(f)(3)) is amended--
(i) by striking `this Act,'
and inserting `this Act or'; and
(ii) by striking `, or the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)'.
(9) TAXABLE YEAR FOR DISASTER
PAYMENTS- The second sentence of section 451(d) of the Internal Revenue
Code of 1986 is amended by striking `the Agricultural Act of 1949, as amended,
or'.
(10) INTEREST PENALTIES-
Section 3902(h) of title 31, United States Code, is amended--
(A) by striking paragraph
(2); and
(B) by redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively.
(11) COLORADO RIVER STORAGE
PROJECT- Section 4 of the Act of April 11, 1956 (70 Stat. 107, chapter
203; 43 U.S.C. 620c), is amended by striking `, as defined in the Agricultural
Act of 1949, or any amendment thereof,'.
(12) SURPLUS CROPS- Section
212 of the Reclamation Projects Authorization and Adjustment Act of 1992
(Public Law 102-575; 106 Stat. 4625) is repealed.
SEC. 126. AGRICULTURAL ADJUSTMENT
ACT.
Effective January 1, 2003,
section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted
with amendments by the Agricultural Marketing Agreement Act of 1937, is
amended by adding at the end the following:
`(i) IN GENERAL- Notwithstanding
any other provision of this subsection, the Secretary shall establish--
`(I) 1 class of milk for
fluid milk; and
`(II) 1 class of milk for
other uses of milk.
`(ii) COMPONENT PRICES-
The classes of milk established under clause (i) shall be used to determine
the prices of milk components.'.
SEC. 127. AGRICULTURAL ACT OF
1970.
Section 813 of the Agricultural
Act of 1970 (7 U.S.C. 1427a) is repealed.
SEC. 128. GENERAL COMMODITY
PROVISIONS.
(a) PAYMENT LIMITATIONS-
Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended
by striking paragraph (1) and inserting the following:
`(1) LIMITATION ON VOUCHERS
AND PAYMENTS-
`(A) VOUCHERS- The total
amount of vouchers made under section 112 of the Farm Financial Protection
Act made directly or indirectly to an individual or entity during any applicable
year may not exceed $30,000.
`(B) ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM- The total amount of payments made under chapter 4 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa
et seq.) made directly or indirectly to an individual or entity during
any applicable year may not exceed $50,000.
`(C) ADMINISTRATION- Notwithstanding
any other paragraph of this section, sections 1001A(b), 1001B, and 1001C
shall apply to an individual or entity that receives a voucher or payment
described in this paragraph.'.
(b) NORMALLY PLANTED ACREAGE-
Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 1309) is
repealed.
(c) NORMAL SUPPLY- Section
1019 of the Food Security Act of 1985 (7 U.S.C. 1310a) is repealed.
(d) DETERMINATIONS OF THE
SECRETARY- Section 1017 of the Food Security Act of 1985 (7 U.S.C. 1385
note; Public Law 99-198) is repealed.
(e) FINANCIAL IMPACT STUDY-
Section 1147 of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 1421a) is repealed.
(f) PLANTING ON SET-ASIDE
ACREAGE- Section 814 of the Agricultural Act of 1970 (7 U.S.C. 1434) is
repealed.
(g) COST OF PRODUCTION STUDY-
Section 808 of the Agricultural Act of 1970 (7 U.S.C. 1441a) is repealed.
(h) STORAGE PAYMENTS- Section
1124 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
1445e note; Public Law 101-624) is repealed.
(i) COMPUTATION OF CARRYOVER-
Section 105 of the Agricultural Act of 1954 (7 U.S.C. 1745) is repealed.
(j) ADJUSTMENT OF LOANS-
Section 2(b) of the Act of December 20, 1944 (12 U.S.C. 1150a(b)), is amended--
(1) by striking `Agricultural
Adjustment Act (of 1933);'; and
(2) by striking `sections
303' and all that follows through `adjustment payments;'.
(k) TARGETED OPTION PAYMENTS-
Section 121 of the Food, Agriculture, Conservation, and Trade Act Amendments
of 1991 (105 Stat. 1843) is repealed.
SEC. 129. SPECIFIC COMMODITY
PROVISIONS.
(a) MILK- Section 101 of
the Agriculture and Food Act of 1981 (7 U.S.C. 608c note; Public Law 97-98)
is amended by striking subsection (b).
(1) RECOURSE LOAN PROGRAM
FOR SILAGE- Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-1)
is repealed.
(2) CALCULATION OF REFUNDS-
Section 405 of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 1445j note; Public Law 101-624) is repealed.
(3) ACREAGE DIVERSION PROGRAMS-
Section 328 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339c) is
repealed.
SEC. 130. EFFECT OF AMENDMENTS.
(a) IN GENERAL- Except as
otherwise specifically provided in this title and notwithstanding any other
provision of law, this subtitle and the amendments made by this subtitle
shall not affect the authority of the Secretary of Agriculture to carry
out an agricultural market transition, price support, or production adjustment
program for any of the 1996 through 2002 crops, or for any of the 1996
through 2002 marketing, reinsurance, fiscal, or calendar years, as applicable,
under a provision of law in effect immediately before the enactment of
this subtitle.
(b) LIABILITY- A provision
of this title or an amendment made by this subtitle shall not affect the
liability of any person under any provision of law as in effect immediately
before of enactment of this subtitle.
SEC. 131. CROP.
This subtitle and the amendments
made by this subtitle apply beginning with the 2003 crop of each agricultural
commodity or the 2003 marketing, reinsurance, fiscal, or calendar year,
as applicable.
TITLE II--CONSERVATION
Subtitle A--Working Land Conservation
Programs
SEC. 201. ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
Chapter 4 of subtitle D
of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.)
is amended to read as follows:
`CHAPTER 4--ENVIRONMENTAL
QUALITY INCENTIVES PROGRAM
`SEC. 1240. PURPOSES.
`The purposes of the environmental
quality incentives program established by this chapter are to promote agricultural
production and environmental quality as compatible national goals, and
to maximize environmental benefits per dollar expended, by--
`(1) assisting producers
in complying with this title, the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.), the Safe Drinking Water Act (42 U.S.C. 300f et seq.),
the Clean Air Act (42 U.S.C. 7401 et seq.), and other Federal, State, and
local environmental laws (including regulations);
`(2) avoiding, to the maximum
extent practicable, the need for resource and regulatory programs by assisting
producers in protecting soil, water, air, and related natural resources
and meeting environmental quality criteria established by Federal, State,
and local agencies;
`(3) providing flexible
technical and financial assistance to producers to install and maintain
conservation systems that enhance soil, water, related natural resources
(including grazing land and wetland), and wildlife while sustaining production
of food and fiber;
`(4) assisting producers
to make beneficial, cost effective changes to cropping systems, grazing
management, nutrient management associated with livestock, pest or irrigation
management, or other practices on agricultural land;
`(5) facilitating partnerships
and joint efforts among producers and governmental and nongovernmental
organizations; and
`(6) consolidating and streamlining
conservation planning and regulatory compliance processes to
reduce administrative burdens
on producers and the cost of achieving environmental goals.
`SEC. 1240A. DEFINITIONS.
`(1) COMPREHENSIVE NUTRIENT
MANAGEMENT-
`(A) IN GENERAL- The term
`comprehensive nutrient management' means any combination of structural
practices, land management practices, and management activities associated
with crop or livestock production described in subparagraph (B) that collectively
ensure that the goals of crop or livestock production and preservation
of natural resources, especially the preservation and enhancement of water
quality, are compatible.
`(B) ELEMENTS- For the purpose
of subparagraph (A), structural practices, land management practices, and
management activities associated with livestock production are--
`(i) manure and wastewater
handling and storage;
`(ii) land treatment practices;
`(iii) nutrient management;
`(v) feed management; and
`(vi) other waste utilization
options.
`(i) PLANNING- The development
of a comprehensive nutrient management plan shall be a practice that is
eligible for incentive payments and technical assistance under this chapter.
`(ii) IMPLEMENTATION- The
implementation of a comprehensive nutrient plan shall be accomplished through
structural and land management practices identified in the plan.
`(2) ELIGIBLE LAND- The
term `eligible land' means agricultural land (including cropland, rangeland,
pasture, private nonindustrial forest land, and other land on which crops
or livestock are produced), including agricultural land that the Secretary
determines poses a serious threat to soil, water, or related resources
by reason of the soil types, terrain, climatic, soil, topographic, flood,
or saline characteristics, or other factors or natural hazards.
`(3) LAND MANAGEMENT PRACTICE-
The term `land management practice' means a site-specific nutrient or manure
management, integrated pest management, irrigation management, tillage
or residue management, grazing management, air quality management, or other
land management practice carried out on eligible land that the Secretary
determines is needed to protect, in the most cost-effective manner, water,
soil, or related resources from degradation.
`(5) LIVESTOCK- The term
`livestock' means dairy cattle, beef cattle, laying hens, broilers, turkeys,
swine, sheep, and such other animals as determined by the Secretary.
`(6) MAXIMIZE ENVIRONMENTAL
BENEFITS PER DOLLAR EXPENDED-
`(A) IN GENERAL- The term
`maximize environmental benefits per dollar expended' means to maximize
environmental benefits to the extent the Secretary determines is practicable
and appropriate, taking into account the amount of funding made available
to carry out this chapter.
`(B) LIMITATION- The term
`maximize environmental benefits per dollar expended' does not require
the Secretary--
`(i) to provide the least
cost practice or technical assistance; or
`(ii) to require the development
of a plan under section 1240E as part of an application for payments or
technical assistance.
`(7) PRACTICE- The term
`practice' means 1 or more structural practices, land management practices,
and comprehensive nutrient management planning practices.
`(8) PRODUCER- The term
`producer' means a person that is engaged in livestock or agricultural
production, as determined by the Secretary.
`(9) STRUCTURAL PRACTICE-
The term `structural practice' means--
`(A) the establishment on
eligible land of a site-specific animal waste management facility, terrace,
grassed waterway, contour grass strip, filterstrip, tailwater pit, permanent
wildlife habitat, constructed wetland, or other structural practice that
the Secretary determines is needed to protect, in the most cost-effective
manner, water, soil, or related resources from degradation; and
`(B) the capping of abandoned
wells on eligible land.
`SEC. 1240B. ESTABLISHMENT AND
ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
`(1) IN GENERAL- During
each of the 2003 through 2006 fiscal years, the Secretary shall provide
technical assistance, cost-share payments, and incentive payments to producers,
that enter into contracts with the Secretary, through an environmental
quality incentives program in accordance with this chapter.
`(A) STRUCTURAL PRACTICES-
A producer that implements a structural practice shall be eligible for
any combination of technical assistance, cost-share payments, and education.
`(B) LAND MANAGEMENT PRACTICES-
A producer that performs a land management practice shall be eligible for
any combination of technical assistance, incentive payments, and education.
`(C) COMPREHENSIVE NUTRIENT
MANAGEMENT PLANNING- A producer that develops a comprehensive nutrient
management plan shall be eligible for any combination of technical assistance,
incentive payments, and education.
`(3) EDUCATION- The Secretary
may provide conservation education at national, State, and local levels
consistent with the purposes of the environmental quality incentives program
to--
`(A) any producer that is
eligible for assistance under this chapter; or
`(B) any producer that is
engaged in the production of an agricultural commodity.
`(b) APPLICATION AND TERM-
With respect to practices implemented under this chapter--
`(1) a contract between
a producer and the Secretary may--
`(A) apply to 1 or more
structural practices, land management practices, and comprehensive nutrient
management planning practices; and
`(B) have a term of not
less than 3, nor more than 10, years, as determined appropriate by the
Secretary, depending on the practice or practices that are the basis of
the contract; and
`(2) each farm may not adopt
more than 1 structural practice involving nutrient management during the
period of fiscal years 2003 through 2006.
`(c) APPLICATION AND EVALUATION-
`(1) IN GENERAL- The Secretary
shall establish an application and evaluation process for awarding technical
assistance, cost-share payments, and incentive payments to a producer in
exchange for the performance of 1 or more practices that maximizes environmental
benefits per dollar expended.
`(2) COMPARABLE ENVIRONMENTAL
VALUE-
`(A) IN GENERAL- The Secretary
shall establish a process for selecting applications for technical assistance,
cost-share payments, and incentive payments when there are numerous applications
for assistance for practices that would provide substantially the same
level of environmental benefits.
`(B) CRITERIA- The process
under subparagraph (A) shall be based on--
`(i) a reasonable estimate
of the projected cost of the proposals described in the applications; and
`(ii) the priorities established
under this subtitle and other factors that maximize environmental benefits
per dollar expended.
`(3) CONSENT OF OWNER- If
the producer making an offer to implement a structural practice is a tenant
of the land involved in agricultural production, for the offer to be acceptable,
the producer shall obtain the consent of the owner of the land with respect
to the offer.
`(4) BIDDING DOWN- If the
Secretary determines that the environmental values of 2 or more applications
for technical assistance, cost-share payments, or incentive payments are
comparable, the Secretary shall not assign a higher priority to the application
only because it would present the least cost to the program established
under this chapter.
`(d) COST-SHARE PAYMENTS-
`(1) IN GENERAL- Except
as provided in paragraph (2), the Federal share of cost-share payments
to a producer proposing to implement 1 or more practices shall be not more
than 75 percent of the projected cost of the practice, as determined by
the Secretary.
`(A) LIMITED RESOURCE AND
BEGINNING FARMERS; NATURAL DISASTERS- The Secretary may increase the maximum
Federal share under paragraph (1) to not more than 90 percent if the producer
is a limited resource farmer or a beginning farmer or to address a natural
disaster, as determined by the Secretary.
`(B) COST-SHARE ASSISTANCE
FROM OTHER SOURCES- Any cost-share payments received by a producer from
a State or private organization or person for the implementation of 1 or
more practices shall be in addition to the Federal share of cost-share
payments provided to the producer under paragraph (1).
`(3) OTHER PAYMENTS- A producer
shall not be eligible for cost-share payments for practices on eligible
land under this chapter if the producer receives cost-share payments or
other benefits for the same practice on the same land under chapter 1 and
this chapter.
`(e) INCENTIVE PAYMENTS-
The Secretary shall make incentive payments in an amount and at a rate
determined by the Secretary to be necessary to encourage a producer to
perform 1 or more practices.
`(f) Technical Assistance-
`(1) IN GENERAL- The Secretary
shall allocate funding under this chapter for the provision of technical
assistance according to the purpose and projected cost for which the technical
assistance is provided for a fiscal year.
`(2) AMOUNT- The allocated
amount may vary according to--
`(A) the type of expertise
required;
`(B) the quantity of time
involved; and
`(C) other factors as determined
appropriate by the Secretary.
`(3) LIMITATION- Funding
for technical assistance under this chapter shall not exceed the projected
cost to the Secretary of the technical assistance provided for a fiscal
year.
`(4) OTHER AUTHORITIES-
The receipt of technical assistance under this chapter shall not affect
the eligibility of the producer to receive technical assistance under other
authorities of law available to the Secretary.
`(5) NON-FEDERAL ASSISTANCE-
`(A) IN GENERAL- The Secretary
may request the services of, and enter into a cooperative agreement with,
a State water quality agency, State fish and wildlife agency, State forestry
agency, or any other governmental or nongovernmental organization or person
considered appropriate to assist in providing the technical assistance
necessary to develop and implement conservation plans under the program.
`(i) IN GENERAL- The Secretary
shall ensure that the processes of writing and developing proposals and
plans for contracts under this chapter, and of assisting in the implementation
of practices covered by the contracts, are open to qualified private persons,
including--
`(I) agricultural producers;
`(II) representatives from
agricultural cooperatives;
`(III) agricultural input
retail dealers;
`(IV) certified crop advisers;
`(V) persons providing technical
consulting services; and
`(VI) other persons, as
determined appropriate by the Secretary.
`(ii) OTHER CONSERVATION
PROGRAMS- The requirements of this subparagraph shall also apply to each
other conservation program of the Department of Agriculture.
`(6) INCENTIVE PAYMENTS
FOR TECHNICAL ASSISTANCE-
`(A) IN GENERAL- A producer
that is eligible to receive technical assistance for a practice involving
the development of a comprehensive nutrient management plan may obtain
an incentive payment that can be used to obtain technical assistance associated
with the development of any component of the comprehensive nutrient management
plan.
`(B) PURPOSE- The purpose
of the payment shall be to provide a producer the option of obtaining technical
assistance for developing any component of a comprehensive nutrient management
plan from a private person earlier than the producer would otherwise receive
the technical assistance from the Secretary.
`(C) PAYMENT- The incentive
payment shall be--
`(i) in addition to cost-share
or incentive payments that a producer would otherwise receive for structural
practices and land management practices;
`(ii) used only to procure
technical assistance from a private person that is necessary to develop
any component of a comprehensive nutrient management plan; and
`(iii) in an amount determined
appropriate by the Secretary, taking into account--
`(I) the extent and complexity
of the technical assistance provided;
`(II) the costs that the
Secretary would have incurred in providing the technical assistance; and
`(III) the costs incurred
by the private provider in providing the technical assistance.
`(D) ELIGIBLE PRACTICES-
The Secretary may determine, on a case by case basis, whether the development
of a comprehensive nutrient management plan is eligible for an incentive
payment under this paragraph.
`(E) CERTIFICATION BY SECRETARY-
`(i) IN GENERAL- Only private
persons that have been certified by the Secretary under section 16 of the
Soil Conservation and Domestic Allotment Act shall be eligible to provide
technical assistance under this subsection.
`(ii) QUALITY ASSURANCE-
The Secretary shall ensure that certified private providers are capable
of providing technical assistance regarding comprehensive nutrient management
in a manner that meets the specifications and guidelines of the Secretary
and that meets the needs of producers under the environmental quality incentives
program.
`(F) ADVANCE PAYMENT- On
the determination of the Secretary that the proposed comprehensive nutrient
management of a producer is eligible for an incentive payment, the producer
may receive a partial advance of the incentive payment in order to procure
the services of a certified private provider.
`(G) FINAL PAYMENT- The
final installment of the incentive payment shall be payable to a producer
on presentation to the Secretary of documentation that is satisfactory
to the Secretary and that demonstrates--
`(i) completion of the technical
assistance; and
`(ii) the actual cost of
the technical assistance.
`(g) PARTNERSHIPS AND COOPERATION-
`(1) PURPOSES- The Secretary
may designate special projects, as recommended by the State Conservationist,
with advice from the State technical committee, to enhance technical and
financial assistance provided to several producers within a specific area
to address environmental issues affected by agricultural production with
respect to--
`(A) meeting the purposes
and requirements of--
`(i) the Federal Water Pollution
Control Act (33 U.S.C. 1251 et seq.) or comparable State laws in impaired
or threatened watersheds;
`(ii) the Safe Drinking
Water Act (42 U.S.C. 300f et seq.) or comparable State laws in watersheds
providing water for drinking water supplies; or
`(iii) the Clean Air Act
(42 U.S.C. 7401 et seq.) or comparable State laws; or
`(B) watersheds of special
significance or other geographic areas of environmental sensitivity; or
`(C) enhancing the technical
capacity of producers to facilitate community-based planning, implementation
of special projects, and
conservation education involving
multiple producers within an area.
`(2) INCENTIVES- To realize
the objectives of the special projects under paragraph (1), the Secretary
shall provide incentives to producers participating in the special projects
to encourage partnerships and sharing of technical and financial resources
among producers and among producers and governmental and nongovernmental
organizations.
`(A) IN GENERAL- The Secretary
shall make available 5 percent of funds provided for each fiscal year under
this chapter to carry out this subsection.
`(B) SPECIAL PROJECTS- The
purposes of the special projects under this subsection shall be to encourage--
`(i) producers to cooperate
in the installation and maintenance of conservation systems that affect
multiple agricultural operations;
`(ii) sharing of information
and technical and financial resources; and
`(iii) cumulative environmental
benefits across operations of producers.
`(A) IN GENERAL- The Secretary
may enter into agreements with States, local governmental and nongovernmental
organizations, and persons to allow greater flexibility to adjust the application
of eligibility criteria, approved practices, innovative conservation practices,
and other elements of the programs described in subparagraph (B) to better
reflect unique local circumstances and goals in a manner that is consistent
with the purposes of this chapter.
`(B) APPLICABLE PROGRAMS-
Subparagraph (A) shall apply to--
`(i) the environmental quality
incentives program established by this chapter;
`(ii) the program to establish
conservation buffers announced on March 24, 1998 (63 Fed. Reg. 14109) or
a successor program;
`(iii) the conservation
reserve enhancement program announced on May 27, 1998 (63 Fed. Reg. 28965)
or a successor program; and
`(iv) the wetlands reserve
program established under subchapter C of chapter 1.
`(5) UNUSED FUNDING- Any
funds made available for a fiscal year under this subsection that are not
obligated by June 1 of the fiscal year may be used to carry out other activities
under this chapter during the fiscal year in which the funding becomes
available.
`(h) MODIFICATION OR TERMINATION
OF CONTRACTS-
`(1) VOLUNTARY MODIFICATION
OR TERMINATION- The Secretary may modify or terminate a contract entered
into with a producer under this chapter if--
`(A) the producer agrees
to the modification or termination; and
`(B) the Secretary determines
that the modification or termination is in the public interest.
`(2) INVOLUNTARY TERMINATION-
The Secretary may terminate a contract under this chapter if the Secretary
determines that the producer violated the contract.
`SEC. 1240C. EVALUATION OF OFFERS
AND PAYMENTS.
`In evaluating applications
for technical assistance, cost-share payments, and incentive payments,
the Secretary shall accord a higher priority to assistance and payments
that--
`(1) maximize environmental
benefits per dollar expended; and
`(2)(A) address national
conservation priorities involving--
`(i) comprehensive nutrient
management;
`(ii) water quality, particularly
in impaired watersheds;
`(B) are provided in conservation
priority areas established under section 1230(c); or
`(C) are provided in special
projects under section 1240B(g) with respect to which State or local governments
have provided, or will provide, financial or technical assistance to producers
for the same conservation or environmental purposes.
`SEC. 1240D. DUTIES OF PRODUCERS.
`To receive technical assistance,
cost-share payments, or incentive payments under this chapter, a producer
shall agree--
`(1) to implement an environmental
quality incentives program plan that describes conservation and environmental
goals to be achieved through 1 or more practices that are approved by the
Secretary;
`(2) not to conduct any
practices on the farm or ranch that would tend to defeat the purposes of
this chapter;
`(3) on the violation of
a term or condition of the contract at any time the producer has control
of the land, to refund any cost-share or incentive payment received with
interest, and forfeit any future payments under this chapter, as determined
by the Secretary;
`(4) on the transfer of
the right and interest of the producer in land subject to the contract,
unless the transferee of the right and interest agrees with the Secretary
to assume all obligations of the contract, to refund all cost-share payments
and incentive payments received under this chapter, as determined by the
Secretary;
`(5) to supply information
as required by the Secretary to determine compliance with the environmental
quality incentives program plan and requirements of the program; and
`(6) to comply with such
additional provisions as the Secretary determines are necessary to carry
out the environmental quality
incentives program plan.
`SEC. 1240E. ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM PLAN.
`(a) IN GENERAL- To be eligible
to receive technical assistance, cost-share payments, or incentive payments
under the environmental quality incentives program, an owner or producer
of a livestock or agricultural operation must submit to the Secretary for
approval a plan of operations that incorporates practices covered under
this chapter, and is based on such principles, as the Secretary considers
necessary to carry out the program, including a description of the practices
to be implemented and the objectives to be met by the implementation of
the plan.
`(b) AVOIDANCE OF DUPLICATION-
The Secretary shall, to the maximum extent practicable, eliminate duplication
of planning activities under the environmental quality incentives program
and comparable conservation programs.
`SEC. 1240F. DUTIES OF THE SECRETARY.
`To the extent appropriate,
the Secretary shall assist a producer in achieving the conservation and
environmental goals of an environmental quality incentives program plan
by--
`(1) providing technical
assistance in developing and implementing the plan;
`(2) providing technical
assistance, cost-share payments, or incentive payments for developing and
implementing 1 or more practices, as appropriate;
`(3) providing the producer
with information, education, and training to aid in implementation of the
plan; and
`(4) encouraging the producer
to obtain technical assistance, cost-share payments, or grants from other
Federal, State, local, or private sources.
`SEC. 1240G. LIMITATION ON PAYMENTS.
`(a) IN GENERAL- Subject
to subsection (b), the total amount of cost-share and incentive payments
paid to a producer under this chapter may not exceed--
`(1) $50,000 for any fiscal
year; or
`(2) $150,000 for any multiyear
contract.
`(b) ATTRIBUTION- An individual
or entity may not receive, directly or indirectly, payments under this
chapter that exceed $50,000 for any fiscal year.
`(c) VERIFICATION- The Secretary
shall identify individuals and entities that are eligible for a payment
under this chapter using social security numbers and taxpayer identification
numbers, respectively.
`SEC. 1240H. CONSERVATION INNOVATION
GRANTS.
`(a) IN GENERAL- From funds
made available to carry out this chapter, the Secretary shall use $100,000,000
for each fiscal year to pay the Federal share of competitive grants that
are intended to stimulate innovative approaches to leveraging Federal investment
in environmental enhancement and protection, in conjunction with agricultural
production, through the environmental quality incentives program.
`(b) USE- The Secretary
shall award grants under this section to governmental and nongovernmental
organizations and persons, on a competitive basis, to carry out projects
that--
`(1) involve producers that
are eligible for payments or technical assistance under this chapter;
`(2) implement innovative
projects, such as--
`(A) market-based pollution
credit trading; and
`(B) provision of funds
to promote adoption of best management practices and the storing of carbon
in the soil; and
`(3) leverage funds made
available to carry out this chapter with matching funds provided by State
and local governments and private organizations to promote environmental
enhancement and protection in conjunction with agricultural production.
`(c) FEDERAL SHARE- The
Federal share of a grant made to carry out a project under this section
shall not exceed 50 percent of the cost of the project.
`(d) UNUSED FUNDING- Any
funds made available for a fiscal year under this section that are not
obligated by June 1 of the fiscal year may be used to carry out other activities
under this chapter during the fiscal year in which the funding becomes
available.
`SEC. 1240I. WORKING LAND ENVIRONMENTAL
IMPROVEMENT OPTION.
`(a) PURPOSES- The purposes
of this section are--
`(1) to provide incentives
to producers on agricultural working land to attain increased environmental
benefits by implementing a systems approach to the conservation needs on
the farm or ranch of the producer;
`(2) to target conservation
systems instead of individual conservation practices;
`(3) to emphasize more comprehensive,
multiyear agreements that enable a more integrated natural resource plan
for the farm or ranch of the producer; and
`(4) to emphasize conservation
systems that are based on land management instead of structural practices
or land retirement.
`(b) DEFINITION OF CONSERVATION
SYSTEM- In this section, the term `conservation system' means a set of
multiple conservation practices that--
`(1) address 1 or more natural
resources on a farm or ranch of a producer;
`(2) requires planning,
implementation, management, and maintenance;
`(3) promotes 1 or more
conservation purposes identified in the plan developed and approved by
the Secretary under section 1240D;
`(4) has not been implemented
on the applicable agricultural land of the producer before receipt of a
payment under this section; and
`(A) a basic conservation
activity, such as pest management, contour farming, residue management,
nutrient management, or similar activities, as determined by the Secretary;
`(B) a land use adjustment
or protection activity, such as resource-conserving crop rotation, controlled,
rotational grazing, or similar activities, as determined by the Secretary;
or
`(C) an activity that fosters
the long-term sustainability of all natural resources on the agricultural
operation, as determined by the Secretary.
`(1) IN GENERAL- The Secretary
shall establish a program that is designed to--
`(A) function as part of
the environmental quality incentives program under this chapter; and
`(B) provide an option for
producers to receive a bonus payment for engaging in new and more environmentally
beneficial conservation practices on agricultural working land.
`(A) IN GENERAL- In exchange
for a producer entering into a working land environmental improvement option
contract, the Secretary shall provide an annual bonus payment, in an amount
determined by the Secretary, to the producer in accordance with the contract.
`(B) RELATION TO EQUIP-
A contract under this section may be a component of, or separate from,
a contract under section 1240B.
`(C) TERM- A contract entered
into under this section shall have a term of not less than 5, nor more
than 10, years.
`(D) LINKAGE- The Secretary
shall not require that any producer enter into a contract under any other
program under this chapter to be eligible to receive a bonus payment under
a contract entered into under this section.
`(3) CONSERVATION SYSTEM
PLAN-
`(A) IN GENERAL- A conservation
system plan developed under this section that incorporates an integrated
approach to conservation of natural resources on the farm or ranch of a
producer may be included in a plan developed under section 1240D, under
which conservation goals are achieved through individual practices.
`(B) ELIGIBLE SYSTEMS- A
conservation system that is eligible for a bonus payment under this section
may be associated with a land management practice, structural practice,
or comprehensive nutrient management practice that has been otherwise approved
by the Secretary under this chapter.
`(4) IDENTIFICATION OF CONSERVATION
SYSTEMS- The State Conservationist and State Technical Committee for each
State shall identify conservation activities that, in combination--
`(A) address the geographical,
agronomic, and environmental conditions that are unique to the State or
area; and
`(B) qualify as conservation
systems under this section.
`(5) BONUS PAYMENTS- A producer
that implements a conservation system shall be eligible to receive an annual
bonus payment that is in addition to any incentive payment, cost share
payment, or technical assistance available to the producer under this chapter.
`(d) EVALUATION OF CONTRACT
OFFERS-
`(1) EVALUATION FACTORS-
In order to maximize environmental benefits per dollar expended under this
section, the Secretary shall establish a list of multiple evaluation factors
that are to be used to evaluate and rank the conservation systems proposed
by producers.
`(2) REQUIRED PRIORITY FACTORS-
The Secretary shall give priority to offers that--
`(A) demonstrate the prior
use of a conservation activity, such as conservation tillage;
`(B) address multiple natural
resource conservation goals;
`(C) implement more comprehensive
conservation systems; or
`(D) are submitted by a
limited resource farmer, beginning farmer, or Indian tribe (as defined
in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b)), as determined by the Secretary.
`(3) DISCRETIONARY FACTORS-
Additional evaluation factors may include--
`(A) the number of farms
and ranches within the soil and water conservation district in which the
agricultural operation of the producer is located;
`(B) with respect to the
agricultural operation of the producer--
`(ii) the potential for
pesticide and nutrient leaching;
`(iii) animal waste generation;
and
`(C) other factors, as determined
by the Secretary.
`(4) POINTS- Each evaluation
factor shall be accorded a point value as determined by the Secretary.
`(5) OFFERS- Each offer
of a producer to enter into a contract under this section shall be ranked
by the Secretary according to the number of points assigned the conservation
system proposed in the offer.
`(e) PROCEDURE FOR RANKING
AND SELECTING OFFERS-
`(1) LOCAL ENVIRONMENTAL
PROBLEMS AND PRIORITIES- Each soil and water conservation district, or
local working group, as designated by the Secretary, shall--
`(A) identify the environmental
problems that exist within the district; and
`(B) determine which conservation
systems and practices would best ameliorate the environmental problems
of the district; and
`(C) make recommendations
to the State conservationist and State technical committee of the respective
State concerning the issues described in subparagraphs (A) and (B).
`(2) STATE CONSERVATIONIST-
The State conservationist for each State, in consultation with the State
technical committee, shall--
`(A) summarize the information
and recommendations provided by each soil and water conservation district
of the State; and
`(B) transmit the information
and recommendations to the Secretary (including a detailed description
of intended priorities for funding within the State).
`(3) STATE FUNDING ALLOCATIONS-
`(A) IN GENERAL- The Secretary
may use the information and recommendations supplied by each State Conservationist,
including natural resource inventories, statistical studies, and reports,
to determine funding allocations under this section for each State.
`(B) ELEMENTS OF ALLOCATION
DETERMINATIONS- A funding allocation shall be determined on the basis of--
`(i) the evaluation factors
described in subsection (d); and
`(ii) the information and
recommendations summarized by State conservationists under paragraph (2)(A).
`(C) NOTIFICATION- The State
conservationist for each State shall be notified of the funding allocation
for the State.
`(4) RANKING, SELECTION
OF OFFERS, AND AWARD OF BONUS PAYMENTS-
`(A) RANKING OFFERS- The
State conservationist of the appropriate State, in consultation with the
State technical committee and the soil and water conservation district
in which the agricultural operation of a producer is located, shall rank
each offer according to--
`(i) the criteria established
by the Secretary; and
`(ii) the number of points
awarded to the offer.
`(B) ACCEPTANCE OF OFFERS-
Based on the ranking of each offer of a producer by the State and the availability
of funds for the State, the State conservationist may accept offers of
producers that will receive bonus payments.
`(C) DETERMINATION OF BONUS
PAYMENTS- The State conservationist, in consultation with the State technical
committee, and in consultation with the soil and water conservation district
in which the agricultural operation of a producer is located, shall determine
the amount of the bonus payment applicable to the conservation system that
the producer offers to implement.
`(D) DETERMINATION OF AMOUNT
OF BONUS PAYMENTS- The amount of an annual bonus payment, to the extent
practicable, shall be determined by the State conservationist, in consultation
with the State technical committee and the soil and water conservation
district in which the agricultural operation of the producer is located,
using criteria established under the guidelines described in subparagraph
(E).
`(E) GUIDELINES- The criteria
used to determine the amount of a bonus payment may be--
`(i) as objective and transparent
as practicable; and
`(I) to the maximum extent
practicable, outcome-based factors relating to the natural resource and
environmental benefits that result from the adoption, maintenance, and
improvement in implementation of the conservation practice carried out
by the producer;
`(II) system-based factors,
including--
`(aa) the level and
extent of conservation systems to be established or maintained;
`(bb) the cost of
the adoption, maintenance, and improvement in implementation of the conservation
system;
`(cc) the income
loss that would be experienced, or economic value that would be forgone,
by the producer because of land use adjustments resulting from the adoption,
maintenance, and improvement of the conservation system; and
`(dd) the extent
to which compensation would ensure maintenance and improvement of the conservation
system; and
`(III) such other factors
as the Secretary determines to be appropriate to encourage participation
under this section.
`(f) LIMITATION ON ASSISTANCE-
The total amount of bonus payments a producer may receive under this section
shall not exceed $25,000 for any fiscal year.
`(g) FUNDING- Of the funds
made available to carry out this chapter, the Secretary shall use to carry
out this section--
`(1) $100,000,000 for fiscal
year 2003;
`(2) $150,000,000 for fiscal
year 2004; and
`(3) $400,000,000 for each
of fiscal years 2005 and 2006.'.
(b) FUNDING- Section 1241(b)
of the Food Security Act of 1985 (16 U.S.C. 3841(b)) is amended--
(1) in paragraph (1), by
striking `$130,000,000' and all that follows through `2002,' and inserting
`$750,000,000 for fiscal year 2003, $1,250,000,000 for fiscal year 2004,
and $2,150,000,000 for each of fiscal years 2005 through 2006,'; and
(2) by striking paragraph
(2) and inserting the following:
`(2) OBLIGATION OF FUNDS-
`(A) IN GENERAL- If a contract
under the environmental quality incentives program under chapter 4 of subtitle
D is terminated prior to the end of the term of the contract and funds
obligated for the contract are remaining, the remaining funds may be used
to carry out any other contract under the program during the same fiscal
year in which the original contract was terminated.
`(B) ADDITIONAL USES OF
FUNDS- Funding for contracts that terminate under the program administered
under subchapter B of chapter 1 may be transferred to, and used to carry
out, the program under chapter 4 of subtitle D.'.
(c) COOPERATION WITH OTHER
GOVERNMENT AGENCIES- Section 11 of the Commodity Credit Corporation Charter
Act (15 U.S.C. 714i) is amended in the last sentence by inserting `but
excluding transfers and allotments for conservation technical assistance'
after `activities'.
SEC. 202. CONSERVATION RESERVE
PROGRAM.
(a) EXTENSION OF PROGRAM-
(1) IN GENERAL- Section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended--
(A) in subsections (a) and
(b)(3), by striking `2002' each place it appears and inserting `2006';
(i) by striking `2002' and
inserting `2006'; and
(ii) by striking `36,400,000'
and inserting `40,000,000'; and
(C) in subsection (h)(1),
by striking `the 2001 and 2002' and inserting `each of the 2001 through
2006'.
(2) DUTIES OF OWNERS AND
OPERATORS- Section 1232(c) of the Food Security Act of 1985 (16 U.S.C.
3832(c)) is amended by striking `2002' and inserting `2006'.
(b) CONSERVATION BUFFERS
AND CONSERVATION RESERVE ENHANCEMENT PROGRAM- Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended--
(1) in subsection (b)(4)--
(A) in subparagraph (C),
by striking `or' at the end;
(B) in subparagraph (D),
by striking the period at the end and inserting `; or'; and
(C) by adding at the end
the following:
`(E) if the Secretary determines
that the cropland is a part of a field and is no longer feasible to farm
as a result of the remainder of the field having been enrolled--
`(i) to establish conservation
buffers as part of the program announced on March 24, 1998 (63 Fed. Reg.
14109) or a successor program; or
`(ii) into the conservation
reserve enhancement program announced on May 27, 1998 (63 Fed. Reg. 28965)
or a successor program.'; and
(A) by striking `2002' and
inserting `2006'; and
(B) by inserting before
the period at the end the following: `, of which not less than 4,000,000
acres shall be enrolled--
`(1) to establish conservation
buffers as part of the program announced on March 24, 1998 (63 Fed. Reg.
14109) or a successor program; and
`(2) through the conservation
reserve enhancement program announced on May 27, 1998 (63 Fed. Reg. 28965)
or a successor program.'.
(c) HARDWOOD TREES- Section
1231(e)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(e)(2)) is amended--
(1) by striking `In the'
and inserting the following:
`(A) IN GENERAL- In the';
(2) by striking `The Secretary'
and inserting the following:
`(B) EXISTING HARDWOOD TREE
CONTRACTS- The Secretary'; and
(3) by adding at the end
the following:
`(C) EXTENSION OF HARDWOOD
TREE CONTRACTS-
`(i) IN GENERAL- In the
case of land devoted to hardwood trees under a contract entered into under
this subchapter before the date of enactment of this subparagraph, on the
request of the owner or operator of the land, the Secretary shall extend
the contract for a term of 15 years.
`(ii) RENTAL PAYMENTS- The
amount of a rental payment for a contract extended under clause (i) shall
be 50 percent of the rental payment that was applicable to the contract
before the contract was extended.'.
(d) HAYING AND GRAZING ON
BUFFER STRIPS- Section 1232(a)(7) of the Food Security Act of 1985 (16
U.S.C. 3832(a)(7)) is amended--
(1) by striking `except
that the Secretary--' and inserting `except that--';
(2) in subparagraph (A)--
(A) by striking `(A) may'
and inserting `(A) the Secretary may'; and
(B) by striking `and' at
the end;
(3) in subparagraph (B)--
(A) by striking `(B) shall'
and inserting `(B) the Secretary shall'; and
(B) by striking the period
at the end and inserting a semicolon;
(4) in subparagraph (C),
by striking the period at the end and inserting `; and'; and
(5) by adding at the end
the following:
`(D) for maintenance purposes,
the Secretary shall permit harvesting or grazing or other commercial uses
of forage, in a manner that is consistent with the purposes of this subchapter
and a conservation plan approved by the Secretary, on acres enrolled--
`(i) to establish conservation
buffers as part of the program announced on March 24, 1998 (63 Fed. Reg.
14109) or a successor program; and
`(ii) into the conservation
reserve enhancement program announced on May 27, 1998 (63 Fed. Reg. 28965)
or a successor program.'.
(e) COST SHARE FOR HARDWOOD
TREES- Section 1234(b)(3) of the Food Security Act of 1985 (16 U.S.C. 3834(b)(3))
is amended by striking `4-year' and inserting `5-year'.
(f) BASE HISTORY- Section
1236 of the Food Security Act of 1985 (16 U.S.C. 3836) is amended by striking
subsection (d) and inserting the following:
`(d) REDUCTION OR TERMINATION
OF CROPLAND-
`(1) IN GENERAL- In addition
to any other remedy available under any other law, the Secretary may reduce
or terminate the quantity of cropland base and allotment history preserved
under subsection (c) for acreage with respect to which a violation of a
term or condition of a contract covering that acreage occurs.
`(2) REQUIRED TERMINATION-
The Secretary shall terminate the cropland base and allotment history for
all cropland--
`(A) enrolled under this
subchapter; and
`(i) the planting of hardwood
trees under section 1231(e)(2);
`(ii) the pilot program
under section 1231(h); or
`(I) to establish conservation
buffers as part of the program announced on March 24, 1998 (63 Fed. Reg.
14109) or a successor program; or
`(II) in the program announced
on May 27, 1998 (63 Fed. Reg. 28965) or a successor program.'.
(g) FUNDING- Section 1241(a)
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended--
(1) by striking `1996 through
2002' and inserting `2003 through 2006'; and
(2) in paragraph (1), by
inserting `, including technical assistance' before the semicolon at the
end.
SEC. 203. WETLANDS RESERVE PROGRAM.
(a) MAXIMUM ENROLLMENT-
Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1))
is amended by striking `975,000 acres' and inserting `1,975,000 acres'.
(b) EXTENSION OF PROGRAM-
Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is
amended by striking `2002' and inserting `2006'.
(c) WETLANDS RESERVE ENHANCEMENT
PROGRAM- Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837)
is amended by adding at the end the following:
`(h) WETLANDS RESERVE ENHANCEMENT
PROGRAM-
`(1) IN GENERAL- The Secretary
may enter into cooperative agreements with State or local governments,
and with private organizations, to develop, on land that is enrolled, or
is eligible to be enrolled, in the wetland reserve established under this
subchapter, wetland restoration activities in watershed areas.
`(2) PURPOSE- The purpose
of the agreements shall be to address critical environmental issues, including
hypoxia, eutrophication, wildlife habitat, flooding, and groundwater recharge.
`(3) LIMITATION- The total
number of acres that may be covered by agreements entered into under this
subsection shall not exceed 50,000 acres for each calendar year.'.
(d) MONITORING AND MAINTENANCE-
Section 1237C(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3837c(a)(2))
is amended by striking `assistance' and inserting `assistance (including
monitoring and maintenance)'.
(e) TECHNICAL ASSISTANCE-
Section 1241(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(2))
is amended by inserting `, including technical assistance' before the semicolon
at the end.
SEC. 204. FARMLAND AND GRASSLAND
PROTECTION PROGRAM.
Section 388 of the Federal
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3830 note; Public
Law 104-127) is amended to read as follows:
`SEC. 388. FARMLAND AND GRASSLAND
PROTECTION PROGRAM.
`(a) DEFINITION OF AGRICULTURAL
LAND- In this section, the term `agricultural land' means land on a farm
or ranch that is--
`(2) rangeland or grassland;
`(4) private forest land.
`(b) ESTABLISHMENT- The
Secretary of Agriculture shall establish and carry out a farmland protection
program under which the Secretary shall purchase conservation easements
or other interests in agricultural land with prime, unique, or other productive
soil that is subject to a pending offer for the purpose of protecting topsoil
by limiting nonagricultural uses of the land from--
`(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 clauses
(i), (ii), and (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.
`(c) CONSERVATION PLAN-
Any agricultural land for which a conservation easement or other interest
is purchased under this section shall be subject to the requirements of
a conservation plan that ensures that continued agricultural use of the
agricultural land--
`(1) will not degrade the
environment; and
`(2) in the case of cropland,
will require the conversion of the agricultural land to less intensive
uses, at the option of the Secretary.
`(1) IN GENERAL- Of the
funds of the Commodity Credit Corporation, the Secretary shall make available
$65,000,000 for each of fiscal years 2003 through 2006 for providing technical
assistance and purchasing conservation easements under this section.
`(A) FEDERAL SHARE- The
Federal share of the cost of purchasing a conservation easement or other
interest described in subsection (b) shall not exceed 50 percent.
`(B) NON-FEDERAL SHARE-
The non-Federal share of the cost of any project relating to the purchase
of a conservation easement under this section may be made in the form of
donations from any non-Federal source (including donations of conservation
easements in a project area) that materially advance the goals of the project,
as determined by the Secretary.'.
SEC. 205. WILDLIFE HABITAT INCENTIVE
PROGRAM.
Section 387(c) of the Federal
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a(c)) is
amended by striking `a total of $50,000,000 shall be made available for
fiscal years 1996 through 2002' and inserting `the Secretary shall make
available $50,000,000 for each of fiscal years 2003 through 2006'.
Subtitle B--Miscellaneous Reforms
and Extensions
SEC. 211. PRIVACY OF PERSONAL
INFORMATION RELATING TO NATURAL RESOURCES CONSERVATION PROGRAMS.
Subtitle E of title XII
of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended--
(1) by redesignating sections
1244 and 1245 (16 U.S.C. 3844, 3845) as sections 1245 and 1246, respectively;
and
(2) by inserting after section
1243 (16 U.S.C. 3843) the following:
`SEC. 1244. PRIVACY OF PERSONAL
INFORMATION RELATING TO NATURAL RESOURCES CONSERVATION PROGRAMS.
`(a) INFORMATION RECEIVED
FOR TECHNICAL AND FINANCIAL ASSISTANCE-
`(1) IN GENERAL- In accordance
with section 552(b)(3) of title 5, United States Code, except as provided
in paragraph (3) and subsection (c), information described in paragraph
(2) --
`(A) shall not be considered
to be public information; and
`(B) shall not be released
to any person or Federal, State, local, or tribal agency outside the Department
of Agriculture.
`(2) INFORMATION- The information
referred to in paragraph (1) is information--
`(A) provided to, or developed
by, the Secretary (including a contractor of the Secretary) for the purpose
of providing technical or financial assistance to an owner or producer
with respect to any natural resources conservation program administered
by the Natural Resources Conservation Service or the Farm Service Agency;
and
`(B) that is proprietary
to the agricultural operation or land that is a part of an agricultural
operation of the owner or producer.
`(3) EXCEPTION- Information
compiled by the Secretary, such as a list of owners or producers that have
received payments from the Secretary and the amounts received, shall be--
`(A) considered to be public
information; and
`(B) may be released to
any person or any Federal, State, local, or tribal agency outside the Department
of Agriculture.
`(b) INVENTORY, MONITORING,
AND SITE SPECIFIC INFORMATION- Except as provided in subsection (c) and
notwithstanding any other provision of law, in order to maintain the personal
privacy, confidentiality, and cooperation of owners and producers, and
to maintain the integrity of sample sites, the specific geographic locations
of the National Resources Inventory of the Department of Agriculture data
gathering sites and the information generated by those sites--
`(1) shall not be considered
to be public information; and
`(2) shall not be released
to any person or Federal, State, local, or tribal agency outside the Department
of Agriculture.
`(1) RELEASE AND DISCLOSURE
FOR ENFORCEMENT- The Secretary may release or disclose to the Attorney
General information covered by subsection (a) or (b) to the extent necessary
to enforce the natural resources conservation programs referred to in subsection
(a).
`(2) DISCLOSURE TO COOPERATING
PERSONS AND AGENCIES-
`(A) IN GENERAL- The Secretary
may release or disclose information covered by subsection (a) or (b) to
a person or Federal, State, local, or tribal agency working in cooperation
with the Secretary in providing technical and financial assistance described
in subsection (a) or collecting information from National Resources Inventory
data gathering sites.
`(B) USE OF INFORMATION-
The person or Federal, State, local, or tribal agency that receives information
described in subparagraph (A) may release the information only for the
purpose of assisting the Secretary--
`(i) in providing the requested
technical or financial assistance; or
`(ii) in collecting information
from National Resources Inventory data gathering sites.
`(3) STATISTICAL AND AGGREGATE
INFORMATION- Information covered by subsection (b) may be disclosed to
the public if the information has been transformed into a statistical or
aggregate form that does not allow the identification of any individual
owner, producer, or specific data gathering site.
`(4) CONSENT OF OWNER OR
PRODUCER-
`(A) IN GENERAL- An owner
or producer may consent to the disclosure of information described in subsection
(a) or (b).
`(B) CONDITION OF OTHER
PROGRAMS- The participation of the owner or producer in, and the receipt
of any benefit by the owner or producer under, this title or any other
program administered by the Secretary may not be conditioned on the owner
or operator providing consent under this paragraph.
`(d) VIOLATIONS; PENALTIES-
Section 1770(c) shall apply with respect to the release of information
collected in any manner or for any purpose prohibited by this section.'.
SEC. 212. REFORM AND CONSOLIDATION
OF CONSERVATION PROGRAMS.
(a) IN GENERAL- The Secretary
of Agriculture shall develop a plan for--
(1) consolidating conservation
programs administered by the Secretary that are targeted at agricultural
land; and
(2) to the maximum extent
practicable--
(A) designing forms that
are applicable to all such conservation programs;
(B) reducing and consolidating
paperwork requirements for such programs;
(C) developing universal
classification systems for all information obtained on the forms that can
be used by other agencies of the Department of Agriculture;
(D) ensuring that the information
and classification systems developed under this paragraph can be shared
with other agencies of the Department through computer technologies used
by agencies; and
(E) developing 1 format
for a conservation plan that can be applied to all conservation programs
targeted at agricultural land.
(b) REPORT- Not later than
180 days after the date of enactment of this Act, the Secretary shall submit
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report
that describes the plan developed under subsection (a), including any recommendations
for implementation of the plan.
(c) NATIONAL CONSERVATION
PLAN- Not later than 180 days after the date of enactment of this Act,
the Secretary shall submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a plan and estimated budget for implementing the appraisal
of the soil, water, and related resources of the Nation contained in the
National Conservation Program under section 5 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2004) as the primary vehicle for managing
conservation on agricultural land in the United States.
SEC. 213. CERTIFICATION OF PRIVATE
PROVIDERS OF TECHNICAL ASSISTANCE.
The Soil Conservation and
Domestic Allotment Act is amended by inserting after section 15 (16 U.S.C.
590o) the following:
`SEC. 16. CERTIFICATION OF PRIVATE
PROVIDERS OF TECHNICAL ASSISTANCE.
`(a) ESTABLISHMENT- The
Secretary of Agriculture shall establish procedures for certifying private
persons to provide technical assistance to agricultural producers and landowners
participating in conservation programs administered by the Secretary.
`(b) STANDARDS- The Secretary
shall establish standards for the conduct of--
`(1) the certification process
conducted by the Secretary; and
`(2) periodic recertification
by the Secretary of private providers.
`(c) CERTIFICATION REQUIRED-
A private provider may not provide technical assistance under any conservation
program administered by the Secretary without certification approved by
the Secretary.
`(d) FEE- In exchange for
certification, a private provider shall pay a fee to the Secretary in an
amount determined by the Secretary.
`(e) PROVIDER- Except as
provided in section 1240B(f)(6) of the Food Security Act of 1985 (7 U.S.C.
3839aa-(f)(6)), the Secretary shall determine under what individual cases
and conservation programs technical assistance may be delivered by private
providers or by the Secretary.
`(f) OTHER REQUIREMENTS-
The Secretary may establish other requirements as the Secretary determines
are necessary to carry out this section.'.
SEC. 214. NATIONAL ENVIRONMENTAL
BENEFITS INDEX.
(a) STUDY- Not later than
January 1, 2003, the Secretary of Agriculture shall request the National
Academy of Sciences to conduct a study--
(1) to identify the natural
resources targeted in conservation programs administered by the Secretary;
(2) to identify the environmental
goals of the conservation programs; and
(3) to develop a single
environmental benefits index that may be applied to all conservation programs
that would allow--
(A) personnel and funding
of the Department of Agriculture to be better targeted at conservation
priorities;
(B) to facilitate the more
effective participation of owners and producers in the conservation programs;
and
(C) to maximize environmental
benefits per dollar expended.
(b) REPORTS- Not later than
18 months after the date on which the study under subsection (a) is commenced,
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--
(1) describes the results
of the study conducted under subsection (a); and
(2) includes any appropriate
recommendations and a model environmental benefits index described in subsection
(a)(3).
(c) FUNDING- Of the funds
of the Commodity Credit Corporation, the Secretary shall make available
to carry out this section $2,000,000 for fiscal year 2003.
SEC. 215. EXTENSION OF CONSERVATION
AUTHORITIES.
(a) ECARP AUTHORITY- Section
1230(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3830(a)(1)) is amended
by striking `2002' and inserting `2006'.
(b) FLOOD RISK REDUCTION-
Section 385(a) of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7334(a)) is amended by striking `2002' and inserting `2006'.
(c) RESOURCE CONSERVATION
AND DEVELOPMENT PROGRAM- Section 1538 of the Agriculture and Food Act of
1981 (16 U.S.C. 3461) is amended in the first sentence by striking `2002'
and inserting `2006'.
SEC. 216. TECHNICAL AMENDMENTS.
(a) DELINEATION OF WETLANDS;
EXEMPTIONS TO PROGRAM INELIGIBILITY-
(1) REFERENCES TO PRODUCER-
Section 322(e) of the Federal Agriculture Improvement and Reform Act of
1996 (Public Law 104-127; 110 Stat. 991) is amended by inserting `each
place it appears' before `and inserting'.
(2) GOOD FAITH EXEMPTION-
Section 1222(h)(2) of the Food Security Act of 1985 (16 U.S.C. 3822(h)(2))
is amended by striking `to actively' and inserting `to be actively'.
(3) DETERMINATIONS- Section
1222(j) of the Food Security Act of 1985 (16 U.S.C. 3822(j)) is amended
by striking `National' and inserting `Natural'.
(b) WILDLIFE HABITAT INCENTIVE
PROGRAM- Section 387 of the Federal Agriculture Improvement and Reform
Act of 1996 (16 U.S.C. 3836a) is amended in the section heading by striking
`incentives' and inserting `incentive'.
SEC. 217. EFFECT OF AMENDMENTS.
(a) IN GENERAL- Except as
otherwise specifically provided in this title and notwithstanding any other
provision of law, this title and the amendments made by this title shall
not affect the authority of the Secretary of Agriculture to carry out a
conservation program for any of the 1996 through 2002 fiscal or calendar
years under a provision of law in effect immediately before the date of
enactment of this Act.
(b) LIABILITY- A provision
of this title or an amendment made by this title shall not affect the liability
of any person under any provision of law as in effect immediately before
the date of enactment of this Act.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
SEC. 301. LEVELS OF ASSISTANCE.
Section 204(a) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended
by striking `2002' each place it appears and inserting `2006'.
SEC. 302. FOOD AID CONSULTATIVE
GROUP.
Section 205(f) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended
by striking `2002' and inserting `2006'.
SEC. 303. ASSISTANCE FOR STOCKPILING
AND RAPID TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED
FOODS.
Section 208(f) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended
by striking `and 2002' and inserting `through 2006'.
SEC. 304. PREPOSITIONING.
Section 407(c)(4) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4))
is amended by striking `and 2002' and inserting `through 2006'.
SEC. 305. EXPIRATION DATE.
Section 408 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking `2002' and inserting `2006'.
SEC. 306. MICRONUTRIENT FORTIFICATION
PILOT PROGRAM.
Section 415 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g-2) is amended
by striking subsection (d).
SEC. 307. FARMER-TO-FARMER PROGRAM.
Section 501(c) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(c)) is amended--
(1) by striking `2002' and
inserting `2006'; and
(2) by striking `0.4' and
inserting `0.5'.
SEC. 308. BILL EMERSON HUMANITARIAN
TRUST.
Section 302 of the Bill
Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) is amended in subsection
(b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h) by striking `2002'
each place it appears and inserting `2006'.
Subtitle B--Agricultural Trade
Act of 1978
SEC. 321. EXPORT CREDIT GUARANTEE
PROGRAM.
(a) REAUTHORIZATION- Section
211(b)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is
amended by striking `2002' and inserting `2006'.
(b) PROCESSED AND HIGH-VALUE
PRODUCTS- Section 202(k)(1) of the Agricultural Trade Act of 1978 (7 U.S.C.
5622(k)(1)) is amended by striking `, 2001, and 2002' and inserting `through
2006'.
(c) COMMERCIAL SALES TO
CHINA- The Secretary of Agriculture shall evaluate the eligibility of the
People's Republic of China for financing under the export credit guarantee
program in light of the country risk profile and bank credit ceiling analyses
for that country, which, as of the date of enactment of this Act, may preclude
financing under the program.
SEC. 322. MARKET ACCESS PROGRAM.
(a) FUNDING- Section 211(c)(1)
of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended
by striking `not less than $200,000,000' and all that follows through `1996
through 2002' and inserting `$110,000,000 for fiscal year 2003, $110,000,000
for fiscal year 2004, and $130,000,000 for each of fiscal years 2005 and
2006'.
(b) UNITED STATES QUALITY
EXPORT INITIATIVE-
(1) FINDINGS- Congress finds
that--
(A) the market access program
and foreign market development program target generic and value-added products,
with little emphasis on the high quality of a United States product; and
(B) new promotional tools
are needed to enable United States products to compete in higher margin,
international markets on the basis of quality.
(2) AMENDMENT- Section 203
of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) is amended by adding
at the end the following:
`(h) UNITED STATES QUALITY
EXPORT INITIATIVE-
`(1) IN GENERAL- Using the
authorities under this section, the Secretary shall develop a competition
in which, using practical and objective criteria, several products are
selected to carry the `U.S. Quality' seal.
`(2) PROMOTIONAL ACTIVITIES-
Products selected under paragraph (1) shall be promoted using the `U.S.
Quality' seal at trade fairs in key markets through electronic and print
media.'.
SEC. 323. EXPORT ENHANCEMENT
PROGRAM.
Section 301(e)(1)(G) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended
by striking `fiscal year 2002' and inserting `each of fiscal years 2002
through 2006'.
SEC. 324. FOREIGN MARKET DEVELOPMENT
COOPERATOR PROGRAM.
The Agricultural Trade Act
of 1978 is amended by striking section 703 (7 U.S.C. 5723) and inserting
the following:
`SEC. 703. FUNDING.
`(a) COMMODITY CREDIT CORPORATION-
The Secretary shall use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this title.
`(1) COMMODITY CREDIT CORPORATION-
Of the funds of the Commodity Credit Corporation, the Secretary shall make
available to carry out this title--
`(A) $31,500,000 for fiscal
year 2003;
`(B) $36,000,000 for fiscal
year 2004;
`(C) $37,500,000 for fiscal
year 2005; and
`(D) $43,250,000 for fiscal
year 2006.
`(2) NEW ENTRANTS AND MARKETS-
`(A) GOALS- The Secretary
shall encourage--
`(i) the participation of
additional eligible trade organizations; and
`(ii) the development of
new markets for United States agricultural commodities in foreign countries.
`(B) TARGETED FUNDING- Of
funds made available under paragraph (1), the Secretary shall use to accomplish
the goals under subparagraph (A)--
`(i) $2,000,000 for fiscal
year 2003;
`(ii) $4,250,000 for fiscal
year 2004;
`(iii) $5,000,000 for fiscal
year 2005; and
`(iv) $7,875,000 for fiscal
year 2006.
`(3) USE OF UNOBLIGATED
FUNDS- For each fiscal year, funds described in paragraph (2)(B) that are
not obligated by July 1 of the fiscal year may be used for any purpose
authorized under this title.'.
SEC. 325. FOOD FOR PROGRESS.
(a) IN GENERAL- The Agricultural
Trade Act of 1978 (7 U.S.C. 5601 et seq.) is amended by adding at the end
the following:
`TITLE VIII--FOOD FOR PROGRESS
`SEC. 801. DEFINITIONS.
`(1) COOPERATIVE- The term
`cooperative' means a private sector organization the members of which--
`(A) own and control the
organization;
`(B) share in the profits
of the organization; and
`(C) are provided services
(such as business services and outreach in cooperative development) by
the organization.
`(2) CORPORATION- The term
`Corporation' means the Commodity Credit Corporation.
`(3) DEVELOPING COUNTRY-
The term `developing country' means a foreign country that has--
`(A) a shortage of foreign
exchange earnings; and
`(B) difficulty meeting
all of the food needs of the country through commercial channels.
`(4) ELIGIBLE COMMODITY-
The term `eligible commodity' means an agricultural commodity acquired
by the Secretary or the Corporation for disposition in a program authorized
under this title through--
`(A) commercial purchases;
or
`(B) inventories of the
Corporation.
`(5) ELIGIBLE ORGANIZATION-
The term `eligible organization' means a private voluntary organization,
cooperative, or intergovernmental organization, as determined by the Secretary.
`(6) EMERGING AGRICULTURAL
COUNTRY- The term `emerging agricultural country' means a foreign country
that--
`(A) is an emerging democracy;
and
`(B) has made a commitment
to introduce or expand free enterprise elements in the agricultural economy
of the country.
`(7) FOOD SECURITY- The
term `food security' means access by all people at all times to sufficient
food and nutrition for a healthy and productive life.
`(8) INTERGOVERNMENTAL ORGANIZATION-
`(A) IN GENERAL- The term
`intergovernmental organization' means an organization that operates on
a local level to solve development problems in a foreign country in which
the organization is located.
`(B) EXCLUSION- The term
`intergovernmental organization' does not include an organization that
is primarily an agency or instrumentality of the government of a foreign
country.
`(9) PRIVATE VOLUNTARY ORGANIZATION-
`(A) IN GENERAL- The term
`private voluntary organization' means a nonprofit, intergovernmental organization
that--
`(I) funds from private
sources; and
`(II) voluntary contributions
of money, staff time, or in-kind support from the public; and
`(ii) is engaged in or is
planning to engage in nonreligious voluntary, charitable, or development
assistance activities.
`(B) IN UNITED STATES- The
term `private voluntary organization', when used with respect to an organization
in the United States, means an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 that is exempt from taxation under
section 501(a) of the Code.
`(10) PRODUCED IN THE UNITED
STATES- The term `produced in the United States', used with respect to
a product of an agricultural commodity, excludes a product of an agricultural
commodity that contains 1 or more ingredients that are not produced in
the United States if those ingredients are commercially available in the
United States at fair and reasonable prices.
`(11) PROGRAM- The term
`program' means a food or nutrition assistance or development initiative
proposed by an eligible organization and approved by the Secretary under
this title.
`(12) RECIPIENT COUNTRY-
The term `recipient country' means a developing country covered by a program.
`SEC. 802. FOOD FOR PROGRESS
PROGRAM.
`(a) IN GENERAL- To provide
agricultural commodities to support the introduction or expansion of free
trade enterprises in national economies, and to provide food or nutrition
assistance, the Secretary shall establish the Food for Progress Program
under which the Secretary may enter into agreements (including multiyear
agreements) with--
`(1) the governments of
emerging democracies;
`(2) private voluntary organizations;
`(3) nonprofit agricultural
organizations and cooperatives;
`(4) intergovernmental organizations;
and
`(5) other private entities.
`(b) CONSIDERATIONS- In
determining whether to enter into an agreement to establish a program under
subsection (a), the Secretary shall take into consideration whether a potential
recipient country is committed to carrying out, or is carrying out, policies
that promote--
`(2) private production
of food commodities for domestic consumption; and
`(3) the creation and expansion
of efficient domestic markets for the purchase and sale of those commodities.
`(1) IN GENERAL- The Secretary
may provide agricultural commodities under this title on--
`(B) subject to paragraph
(2), credit terms.
`(2) CREDIT TERMS- Payment
for agricultural commodities made available under this title that are purchased
on credit terms shall be made on the same basis as payments made under
section 103 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1703).
`(3) NO EFFECT ON DOMESTIC
PROGRAMS- The Secretary shall not make an agricultural commodity available
for disposition under this section in any amount that will reduce the amount
of the commodity that is traditionally made available through donations
to domestic feeding programs or agencies, as determined by the Secretary.
`(d) REPORTS- Each eligible
organization that enters into an agreement under this title shall submit
to the Secretary, at such time as the Secretary may request, a report containing
such information as the Secretary may request relating to the use of commodities
and funds provided to the eligible organization under this title.
`(e) COORDINATION- To ensure
that the provision of commodities under this section is coordinated with
and complements other foreign assistance provided by the United States,
assistance under this section shall be coordinated through the mechanism
designated by the President to coordinate assistance under the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.).
`(f) QUALITY ASSURANCE-
The Secretary shall ensure, to the maximum extent practicable, that each
eligible organization participating in 1 or more programs under this section--
`(1) uses eligible commodities
made available under this title--
`(A) in an effective manner;
`(B) in the areas of greatest
need; and
`(C) in a manner that promotes
the purposes of this title;
`(2) in using eligible commodities,
assesses and takes into account the needs of recipient countries and the
target populations of those countries;
`(3) to the maximum extent
practicable consistent with the purposes of this title, uses the lowest
cost means of delivering eligible commodities and providing other assistance
authorized under this title;
`(4) works with recipient
countries and indigenous institutions or groups in recipient countries
to design and carry out mutually acceptable programs authorized in subsection
(g)(2)(C)(i);
`(5) monitors and reports
on the distribution or sale of eligible commodities provided under this
title using methods that, as determined by the Secretary, facilitate accurate
and timely reporting;
`(6) periodically evaluates
the effectiveness of the program of the eligible organization, including,
as applicable, an evaluation of whether the development or food and nutrition
purposes of the program can be sustained in a recipient country if the
assistance provided to the recipient country is reduced and eventually
terminated; and
`(7) considers means of
improving the operation of the program of the eligible organization.
`(g) TRANSSHIPMENT AND RESALE-
`(1) IN GENERAL- The transshipment
or resale of an eligible commodity to a country other than a recipient
country shall be prohibited unless the transshipment or resale is approved
by the Secretary.
`(A) IN GENERAL- Subject
to subparagraphs (B) through (D), an eligible commodity provided under
this section may be sold for foreign currency or United States dollars
or bartered only with the approval of the Secretary.
`(B) SALE OR BARTER OF FOOD
ASSISTANCE- The sale or barter of eligible commodities under this title
may be conducted only within a recipient country or countries adjacent
to the recipient country, unless, as determined by the Secretary--
`(i) the sale or barter
within the recipient country or adjacent countries is not practicable;
and
`(ii) the sale or barter
within countries other than the recipient country or adjacent countries
will not disrupt commercial markets for the agricultural commodity involved.
`(C) HUMANITARIAN OR DEVELOPMENT
PURPOSES- The Secretary may authorize the use of proceeds or exchanges
to reimburse, within a recipient country or other country in the same region,
the costs incurred by an eligible organization for--
`(i)(I) programs targeted
at hunger and malnutrition; or
`(II) development programs
involving food security or education;
`(ii) transportation, storage,
and distribution of eligible commodities provided under this title; and
`(iii) administration, sales,
monitoring, and technical assistance.
`(D) EXCEPTION- The Secretary
shall not approve the use of proceeds described in subparagraph (C) to
fund any administrative expenses of a foreign government.
`(h) DISPLACEMENT OF COMMERCIAL
SALES- In carrying out this title, the Secretary shall, to the maximum
extent practicable consistent with the purposes of this title, avoid--
`(1) displacing any commercial
export sale of United States commodities that would otherwise be made;
`(2) disrupting world prices
of agricultural commodities; or
`(3) disrupting normal patterns
of commercial trade with foreign countries.
`(i) DEADLINE FOR PROGRAM
ANNOUNCEMENTS-
`(1) IN GENERAL- Before
the beginning of the applicable fiscal year, the Secretary shall, to the
maximum extent practicable--
`(A) make all determinations
concerning program agreements and resource requests for programs under
this title; and
`(B) announce those determinations.
`(2) REPORT- Not later than
November 1 of the applicable fiscal year, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a list of programs,
countries, and commodities, and the total amount of funds for transportation
and administrative costs, approved under this title.
`(j) MILITARY DISTRIBUTION
OF ASSISTANCE-
`(1) IN GENERAL- The Secretary
shall ensure, to the maximum extent practicable, that agricultural commodities
made available under this section are provided without regard to--
`(A) the political affiliation,
geographic location, ethnic, tribal, or religious identity of the recipient;
or
`(B) any extraneous factors.
`(2) PROHIBITION ON HANDLING
OF COMMODITIES BY THE MILITARY-
`(A) IN GENERAL- Except
as provided in subparagraph (B), the Secretary shall not enter into an
agreement under this title to provide agricultural commodities if the agreement
requires or permits the distribution, handling, or allocation of agricultural
commodities by the military forces of any foreign government or insurgent
group.
`(B) EXCEPTION- The Secretary
may authorize the distribution, handling, or allocation of commodities
by the military forces of a country in exceptional circumstances in which--
`(i) nonmilitary channels
are not available for distribution, handling, or allocation;
`(ii) the distribution,
handling, or allocation is consistent with paragraph (1); and
`(iii) the Secretary determines
that the distribution, handling, or allocation is necessary to meet the
emergency health, safety, or nutritional requirements of the population
of a recipient country.
`(3) ENCOURAGEMENT OF SAFE
PASSAGE- In entering into an agreement under this title that involves 1
or more areas within a recipient country that is experiencing protracted
warfare or civil unrest, the Secretary shall, to the maximum extent practicable,
encourage all parties to the conflict to--
`(A) permit safe passage
of the commodities and other relief supplies; and
`(B) establish safe zones
for--
`(i) medical and humanitarian
treatment; and
`(ii) evacuation of injured
persons.
`(k) BUDGET- The cost of
commodities made available under this section, and the expenses incurred
in connection with the provision of those commodities--
`(1) shall be in addition
to the level of assistance provided under the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
`(2) may not be considered
expenditures for international affairs and finance.
`(l) INTERNATIONAL EDUCATION
AND NUTRITION PROGRAM-
`(1) IN GENERAL- In cooperation
with other countries, the Secretary shall establish an initiative within
the Food for Progress Program under this title to be known as the `International
Education and Nutrition Program', through which the Secretary may provide
to eligible organizations agricultural commodities and technical and nutritional
assistance in connection with education programs to improve food security
and enhance educational opportunities for preschool age and primary school
age children in recipient countries.
`(2) AGREEMENTS- In carrying
out this subsection, the Secretary may enter into agreements with eligible
organizations--
`(A) to purchase, acquire,
and donate eligible commodities to eligible organizations; and
`(B) to provide technical
and nutritional assistance.
`(3) OTHER DONOR COUNTRIES-
The Secretary shall encourage other donor countries, directly or through
eligible organizations--
`(A) to donate goods and
funds to recipient countries; and
`(B) to provide technical
and nutritional assistance to recipient countries.
`(4) PRIVATE SECTOR- The
President and the Secretary are urged to encourage the support and active
involvement of the private sector, foundations, and other individuals and
organizations in programs and activities assisted under this subsection.
`(5) GRADUATION- An agreement
with an eligible organization under this subsection shall include provisions--
`(A) to estimate the period
of time required until the recipient country or eligible organization is
able to provide sufficient assistance without additional assistance under
this subsection; or
`(B) to provide other long-term
benefits to targeted populations of the recipient country.
`(6) ANNUAL REPORT- The
Secretary shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate an annual report that describes--
`(A) the results of the
implementation of this subsection during the year covered by the report,
including the impact on the enrollment, attendance, and performance of
children in preschools and primary schools targeted under the initiative
established under this subsection; and
`(B) the level of commitments
by, and the potential for obtaining additional goods and assistance from,
other countries for subsequent years.
`(m) COMMODITY CREDIT CORPORATION-
`(1) IN GENERAL- Subject
to paragraphs (4) through (6), the Secretary may use the funds, facilities,
and authorities of the Corporation to carry out this title.
`(A) IN GENERAL- Subject
to paragraph (3), from the funds of the Corporation, the Secretary shall
make available to carry out this title $490,000,000 for each of fiscal
years 2003 through 2006.
`(B) AUTHORIZATION OF APPROPRIATIONS-
In addition to funds made available under subparagraph (A), there are authorized
to be appropriated such sums as are necessary to carry out this title.
`(3) INTERNATIONAL EDUCATION
AND NUTRITION PROGRAM- Of the funds made available under paragraph (2),
the Secretary may use not more than $300,000,000 for each fiscal year to
carry out the initiative established under subsection (l).
`(4) LIMITATION ON PURCHASES
OF COMMODITIES- The Corporation may purchase agricultural commodities for
disposition under this title only if Corporation inventories are insufficient
to satisfy commitments made in agreements entered into under this title.
`(5) ELIGIBLE COSTS AND
EXPENSES-
`(A) IN GENERAL- Subject
to subparagraph (B), with respect to an eligible commodity made available
under this title, the Corporation may pay--
`(i) the costs of acquiring
the eligible commodity;
`(ii) the costs associated
with packaging, enriching, preserving, and fortifying of the eligible commodity;
`(iii) the processing, transportation,
handling, and other incidental costs incurred before the date on which
the commodity is delivered free on board vessels in United States ports;
`(iv) the vessel freight
charges from United States ports or designated Canadian transshipment ports,
as determined by the Secretary, to designated ports of entry abroad;
`(v) the costs associated
with transporting the eligible commodity from United States ports to designated
points of entry abroad in a case in which--
`(I) a recipient country
is landlocked;
`(II) ports of a recipient
country cannot be used effectively because of natural or other disturbances;
`(III) carriers to a specific
country are unavailable; or
`(IV) substantial savings
in costs or time may be gained by the use of points of entry other than
ports;
`(vi) the transportation
and associated distribution costs incurred in moving the commodity (including
repositioned commodities) from designated points of entry or ports of entry
abroad to storage and distribution sites;
`(vii) the charges for general
average contributions arising out of the ocean transport of commodities
transferred; and
`(viii) the costs, in addition
to costs authorized by clauses (i) through (vii), of providing--
`(I) assistance in the administration,
sale, and monitoring of food assistance activities under this title; and
`(II) technical assistance
for monetization programs.
`(B) FUNDING- Except for
costs described in subparagraph (A)(i), not more than $40,000,000 of funds
made available under paragraph (2) may be used to cover costs under this
paragraph unless authorized in advance in an appropriation Act.
`(6) PAYMENT OF ADMINISTRATIVE
COSTS- An eligible organization that receives payment for administrative
costs through monetization of the eligible commodity under subsection (g)(2)
shall not be eligible to receive payment for the same administrative costs
through direct payments under paragraph (5)(A)(viii)(I).'.
(b) CONFORMING AMENDMENT-
The Food Security Act of 1985 is amended by striking section 1110 (7 U.S.C.
1736o).
SEC. 326. EXPORTER ASSISTANCE
INITIATIVE.
(a) FINDINGS- Congress find
that--
(1) information in the possession
of Federal agencies other than the Department of Agriculture that is necessary
for the export of agricultural commodities and products is available only
from multiple disparate sources; and
(2) because exporters often
need access to information quickly, exporters lack the time to search multiple
sources to access necessary information, and exporters often are unaware
of where the necessary information can be located.
(b) AMENDMENT- Title I of
the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is amended by
adding at the end the following:
`SEC. 107. EXPORTER ASSISTANCE
INITIATIVE.
`(a) IN GENERAL- In order
to create a single source of information for exports of agricultural products,
the Secretary shall develop a website on the Internet that collates onto
a single website all information from all agencies of the Federal Government
that is relevant to the export of agricultural products.
`(b) AUTHORIZATION OF APPROPRIATIONS-
There are authorized to be appropriated to carry out subsection (a)--
`(1) $1,000,000 for each
of fiscal years 2003 and 2004; and
`(2) $500,000 for each of
fiscal years 2005 and 2006.'.
Subtitle C--Miscellaneous Agricultural
Trade Provisions
SEC. 331. EMERGING MARKETS.
Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note; Public
Law
101-624) is amended in subsections
(a) and (d)(1)(A)(i) by striking `2002' each place it appears and inserting
`2006'.
SEC. 332. SENSE OF THE SENATE
CONCERNING UNILATERAL SANCTIONS.
It is the sense of the Senate
that--
(1) the current statutory
prohibition on the imposition of unilateral sanctions involving agricultural
commodities, medicine, and medical devices should apply to all foreign
countries, except when--
(A) the United States is
at war with, or hostilities are imminent with, a particular country;
(B) an agricultural commodity,
medicine, or medical device can be used for dual purposes; or
(C) a particular country
sponsors terrorism;
(2) the International Trade
Commission should periodically review and report to the President on each
unilateral sanction in effect to determine the cost-effectiveness of the
sanction, including--
(A) the economic activity
that is prohibited, restricted, or conditioned by the unilateral agricultural
sanction; and
(B) the national interest
that would be jeopardized if the unilateral sanction were ended; and
(3) in response to the report
of the International Trade Commission, the President should recommend whether
the unilateral sanction should be continued, modified, or repealed.
SEC. 333. BIOTECHNOLOGY AND
AGRICULTURAL TRADE PROGRAM.
Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note; Public
Law 101-624) is amended by adding at the end the following:
`(g) BIOTECHNOLOGY AND AGRICULTURAL
TRADE PROGRAM-
`(1) IN GENERAL- The Secretary
of Agriculture shall establish a program to enhance foreign acceptance
of agricultural biotechnology and United States agricultural products developed
through biotechnology.
`(2) FOCUS- The program
shall address the continuing and increasing market access, regulatory,
and marketing issues relating to export commerce of United States agricultural
biotechnology products.
`(3) EDUCATION AND OUTREACH-
`(A) FOREIGN MARKETS- Support
for United States agricultural market development organizations to carry
out education and other outreach efforts concerning biotechnology shall
target such educational initiatives as--
`(i) producers, buyers,
consumers, and media in foreign markets through initiatives in foreign
markets; and
`(ii) government officials,
scientists, and trade officials from foreign countries through exchange
programs.
`(B) FUNDING FOR EDUCATION
AND OUTREACH- Funding for activities under subparagraph (A) may be--
`(I) the emerging markets
program under this section;
`(II) the emerging markets
program under section 1542 (7 U.S.C. 3292); or
`(III) the Cochran Fellowship
Program under section 1543 (7 U.S.C. 3293); or
`(ii) applied directly to
foreign market development cooperators through the foreign market development
cooperator program under section 702 of the Agricultural Trade Act of 1978
(7 U.S.C. 5722).
`(A) IN GENERAL- The Secretary
shall assist agricultural exporters of the United States in cases in which
the exporters are harmed by unwarranted and arbitrary barriers to trade
due to--
`(i) marketing of biotechnology
products;
`(iv) other sanitary or
phytosanitary concerns.
`(B) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this paragraph $1,000,000
for each of fiscal years 2003 through 2006.
`(A) COMMODITY CREDIT CORPORATION-
The Secretary shall use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this subsection.
`(B) FUNDING AMOUNT- Of
the funds of the Commodity Credit Corporation, the Secretary shall make
available to carry out this subsection $15,000,000 for each of fiscal years
2003 through 2006.'.
SEC. 334. DAIRY EXPORT INCENTIVE
PROGRAM.
Section 153(a) of the Food
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking `2002'
and inserting `2006'.
TITLE IV--NUTRITION PROGRAMS
SEC. 401. SHORT TITLE.
This title may be cited
as the `Food Stamp Simplification Act of 2001'.
Subtitle A--Food Stamp Program
SEC. 411. CATEGORICAL ELIGIBILITY
FOR RECIPIENTS OF CASH ASSISTANCE.
Section 5(a) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(a)) is amended--
(1) in the second sentence,
by striking `receives benefits' and inserting `receives cash assistance';
and
(2) in the third sentence,
by striking `receives benefits' and inserting `receives cash assistance'.
SEC. 412. DISREGARDING OF INFREQUENT
AND UNANTICIPATED INCOME.
Section 5(d)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(d)(2)) is amended by striking `$30' and
inserting `$100'.
SEC. 413. SIMPLIFIED TREATMENT
OF INDIVIDUALS COMPLYING WITH CHILD SUPPORT ORDERS.
(a) EXCLUSION- Section 5(d)(6)
of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(6)) is amended by adding
at the end the following: `including child support payments made by a household
member to or for an individual who is not a member of the household if
the household member is legally obligated to make the payments,'.
(b) SIMPLIFIED PROCEDURE-
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended--
(1) in subsection (e), by
striking paragraph (4) and inserting the following:
`(4) DEDUCTION FOR CHILD
SUPPORT PAYMENTS-
`(A) IN GENERAL- In lieu
of providing an exclusion for legally obligated child support payments
made by a household member under subsection (d)(6), a State agency may
elect to provide a deduction for the amount of the payments.
`(B) ORDER OF DETERMINING
DEDUCTIONS- A deduction under this paragraph shall be determined before
the computation of the excess shelter expense deduction under paragraph
(7).'; and
(2) by adding at the end
the following:
`(n) STATE OPTIONS TO SIMPLIFY
DETERMINATION OF CHILD SUPPORT PAYMENTS MADE BY HOUSEHOLD MEMBERS-
`(1) IN GENERAL- Regardless
of whether a State agency elects to provide a deduction under subsection
(e)(4), the Secretary shall establish simplified procedures to allow State
agencies to determine the amount of the legally obligated child support
payments made, including procedures to allow the State agency to rely on
information from the agency responsible for implementing the program under
part D of title IV of the Social Security Act (42 U.S.C. 661 et seq.) concerning
payments made in prior months in lieu of obtaining current information
from the household.
`(2) DURATION OF DETERMINATION
OF AMOUNT OF SUPPORT PAYMENTS- If a State agency makes a determination
of the amount of support payments of a household under paragraph (1), the
amount of the exclusion or deduction for the household shall not change
until the eligibility of the household is next redetermined under section
11(e)(4).'.
SEC. 414. COORDINATED AND SIMPLIFIED
DEFINITION OF INCOME.
Section 5(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended--
(1) by striking `and (15)'
and inserting `(15)'; and
(2) by inserting before
the period at the end the following: `, (16) at the option of the State
agency, any educational loans on which payment is deferred, grants, scholarships,
fellowships, veterans' educational benefits, and the like (other than loans,
grants, scholarships, fellowships, veterans' educational benefits, and
the like excluded under paragraph (3)), to the extent that they are required
to be excluded under title XIX of the Social Security Act (42 U.S.C. 1396
et seq.), (17) at the option of the State agency, any State complementary
assistance program payments that are excluded for the purpose of determining
eligibility for medical assistance under section 1931 of the Social Security
Act (42 U.S.C. 1396u-1), (18) at the option of the State agency, any types
of income that the State agency does not consider when determining eligibility
for, or the amount of, cash assistance under a program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or medical
assistance under section 1931 of the Social Security Act (42 U.S.C. 1396u-1),
except that this paragraph does not authorize a State agency to exclude
wages or salaries, benefits under title I, II, IV, X, XIV, or XVI of the
Social Security Act (42 U.S.C. 1381 et seq.), regular payments from a government
source (such as unemployment benefits and general assistance), worker's
compensation, or such other types of income the consideration of which
the Secretary determines by regulation to be essential to equitable determinations
of eligibility and benefit levels'.
SEC. 415. EXCLUSION OF INTEREST
AND DIVIDEND INCOME.
Section 5(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(d)) (as amended by section 414(2)) is
amended by inserting before the period at the end the following: `, and
(19) any interest or dividend income received by a member of the household'.
SEC. 416. ALIGNMENT OF STANDARD
DEDUCTION WITH POVERTY LINE.
Section 5(e) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended by striking paragraph (1)
and inserting the following:
`(A) IN GENERAL- Subject
to the other provisions of this paragraph, the Secretary shall allow a
standard deduction for each household that is--
`(i) equal to the applicable
percentage specified in subparagraph (D) of the income standard of eligibility
established under subsection (c)(1); but
`(ii) not less than the
minimum deduction specified in subparagraph (E).
`(B) GUAM- The Secretary
shall allow a standard deduction for each household in Guam that is--
`(i) equal to the applicable
percentage specified in subparagraph (D) of twice the income standard of
eligibility established under subsection (c)(1) for the 48 contiguous States
and the District of Columbia; but
`(ii) not less than the
minimum deduction for Guam specified in subparagraph (E).
`(C) HOUSEHOLDS OF 6 OR
MORE MEMBERS- The income standard of eligibility established under subsection
(c)(1) for a household of 6 members shall be used to calculate the standard
deduction for each household of 6 or more members.
`(D) APPLICABLE PERCENTAGE-
For the purpose of subparagraph (A), the applicable percentage shall be--
`(i) 8 percent for fiscal
year 2002;
`(ii) 8.5 percent for each
of fiscal years 2003 through 2005;
`(iii) 9 percent for each
of fiscal years 2006 through 2008;
`(iv) 9.5 percent for each
of fiscal years 2009 and 2010; and
`(v) 10 percent for each
fiscal year thereafter.
`(E) MINIMUM DEDUCTION-
The minimum deduction shall be $134, $229, $189, $269, and $118 for the
48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam,
and the Virgin Islands of the United States, respectively.'.
SEC. 417. SIMPLIFIED DEPENDENT
CARE DEDUCTION.
Section 5(e)(3) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(e)(3)) is amended by adding at the end
the following:
`(C) STANDARD DEPENDENT
CARE ALLOWANCES-
`(i) ESTABLISHMENT OF ALLOWANCES-
`(I) IN GENERAL- In determining
the dependent care deduction under this paragraph, in lieu of requiring
the household to establish the actual dependent care costs of the household,
a State agency may use standard dependent care allowances established under
subclause (II) for each dependent for whom the household incurs costs for
care.
`(II) AMENDMENT TO STATE
PLAN- A State agency that elects to use standard dependent care allowances
under subclause (I) shall submit for approval by the Secretary an amendment
to the State plan of operation under section 11(d) that--
`(aa) describes the
allowances that the State agency will use; and
`(bb) includes supporting
documentation.
`(ii) HOUSEHOLD ELECTION-
`(I) IN GENERAL- Except
as provided in clause (iii), a household may elect to have the dependent
care deduction of the household based on actual dependent care costs rather
that the allowances established under clause (i).
`(II) FREQUENCY- The Secretary
may by regulation limit the frequency with which households may make the
election described in subclause (I) or reverse the election.
`(iii) MANDATORY DEPENDENT
CARE ALLOWANCES- The State agency may make the use of standard dependent
care allowances established under clause (i) mandatory for all households
that incur dependent care costs.'.
SEC. 418. ALTERNATIVE PROCEDURES
TO ASSIST ELDERLY AND DISABLED PERSONS.
Section 5(e)(6) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(e)(6)) is amended--
(1) in subparagraph (A),
by striking `A household' and inserting `At the option of the State agency,
a household';
(2) in subparagraph (B)(i),
by striking `shall offer an eligible household under subparagraph (A)'
and inserting `that elects to offer a deduction under subparagraph (A)
shall offer an eligible household'; and
(3) by adding at the end
the following:
`(C) ALTERNATIVE PROCEDURES
TO ASSIST ELDERLY AND DISABLED MEMBERS WITH MEDICAL EXPENSES- Any State
agency that elects not to offer the deduction under this paragraph shall
establish procedures to treat an application from an elderly or disabled
member for an allotment under this Act as an application for coverage under
section 1902(a)(10)(E) of the Social Security Act (42 U.S.C. 1396a(a)(10)(E))
unless the member declines the coverage.'.
SEC. 419. SIMPLIFIED DETERMINATION
OF HOUSING COSTS.
(a) IN GENERAL- Section
5(e)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(7)) is amended--
(1) in subparagraph (A)--
(A) by striking `A household'
and inserting the following:
`(i) IN GENERAL- A household';
and
(B) by adding at the end
the following:
`(ii) INCLUSION OF CERTAIN
PAYMENTS- In determining the shelter expenses of a household under this
paragraph, the State agency shall include any required payment to the landlord
of the household without regard to whether the required payment is designated
to pay specific charges.'; and
(2) by adding at the end
the following:
`(D) HOMELESS HOUSEHOLDS-
`(i) ALTERNATIVE DEDUCTION-
In lieu of the deduction provided under subparagraph (A), a State agency
may elect to allow a household in which all members are
homeless individuals, but that
is not receiving free shelter throughout the month, to receive a deduction
of $143 per month.
`(ii) INELIGIBILITY- The
State agency may make a household with extremely low shelter costs ineligible
for the alternative deduction under clause (i).'.
(b) CONFORMING AMENDMENTS-
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended--
(A) by striking paragraph
(5); and
(B) by redesignating paragraphs
(6) and (7) as paragraphs (5) and (6), respectively; and
(2) in subsection (k)(4)(B),
by striking `subsection (e)(7)' and inserting `subsection (e)(6)'.
SEC. 420. SIMPLIFIED DETERMINATION
OF UTILITY COSTS.
Section 5(e)(6)(C)(iii)
of the Food Stamp Act of 1977 (as amended by section 419(b)(1)(B)) is amended--
(1) in subclause (I)(bb),
by inserting `(without regard to subclause (III))' after `Secretary finds';
and
(2) by adding at the end
the following:
`(III) INAPPLICABILITY OF
CERTAIN RESTRICTIONS- Clauses (ii)(II) and (ii)(III) shall not apply in
the case of a State agency that has made the use of a standard utility
allowance mandatory under subclause (I).'.
SEC. 421. SIMPLIFIED DETERMINATION
OF EARNED INCOME.
Section 5(f)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(f)(1)) is amended by adding at the end
the following:
`(C) SIMPLIFIED DETERMINATION
OF EARNED INCOME-
`(i) IN GENERAL- A State
agency may elect to determine monthly earned income by multiplying weekly
income by 4 and biweekly income by 2.
`(ii) ADJUSTMENT OF EARNED
INCOME DEDUCTION- A State agency that makes an election described in clause
(i) shall adjust the earned income deduction under subsection (e)(2)(B)
to the extent necessary to prevent the election from resulting in increased
costs to the food stamp program, as determined consistent with standards
promulgated by the Secretary.'.
SEC. 422. SIMPLIFIED DETERMINATION
OF DEDUCTIONS.
Section 5(f)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(f)(1)) (as amended by section 421) is
amended by adding at the end the following:
`(D) SIMPLIFIED DETERMINATION
OF DEDUCTIONS-
`(i) IN GENERAL- Except
as provided in clause (ii), for the purposes of subsection (e), a State
agency may elect to disregard until the next redetermination of eligibility
under section 11(e)(4) 1 or more types of changes in the circumstances
of a household that affect the amount of deductions the household may claim
under subsection (e).
`(ii) CHANGES THAT MAY NOT
BE DISREGARDED- Under clause (i), a State agency may not disregard--
`(I) any reported change
of residence; or
`(II) under standards prescribed
by the Secretary, any change in earned income.'.
SEC. 423. SIMPLIFIED RESOURCE
ELIGIBILITY LIMIT.
Section 5(g)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(g)(1)) is amended by striking `a member
who is 60 years of age or older' and inserting `an elderly or disabled
member'.
SEC. 424. EXCLUSION OF LICENSED
VEHICLES FROM FINANCIAL RESOURCES.
(a) IN GENERAL- Section
5(g)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is amended--
(1) in subparagraph (B)--
(A) in clause (iii), by
adding `and' at the end;
(B) by striking clause (iv);
and
(C) by redesignating clause
(v) as clause (iv);
(2) by striking subparagraph
(C) and inserting the following:
`(C) EXCLUDED VEHICLES-
The Secretary shall exclude from financial resources any licensed vehicle
used for household transportation.'; and
(3) by striking subparagraph
(D).
(b) CONFORMING AMENDMENT-
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended by
striking subsection (h).
SEC. 425. EXCLUSION OF RETIREMENT
ACCOUNTS FROM FINANCIAL RESOURCES.
Section 5(g)(2)(B) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)(B)) (as amended by section
424(a)(1)) is amended by striking clause (iv) and inserting the following:
`(iv) any savings account
(other than a retirement account (including an individual account)).'.
SEC. 426. COORDINATED AND SIMPLIFIED
DEFINITION OF RESOURCES.
Section 5(g) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the end the
following:
`(6) EXCLUSION OF TYPES
OF FINANCIAL RESOURCES NOT CONSIDERED UNDER CERTAIN OTHER FEDERAL PROGRAMS-
`(A) IN GENERAL- Subject
to subparagraph (B), the Secretary shall promulgate regulations under which
a State agency may, at the option of the State agency, exclude from financial
resources under this subsection any types of financial resources that the
State agency does not consider when determining eligibility for--
`(i) cash assistance under
a program funded under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.); or
`(ii) medical assistance
under section 1931 of the Social Security Act (42 U.S.C. 1396u-1).
`(B) LIMITATIONS- Subparagraph
(A) does not authorize a State agency to exclude--
`(ii) amounts in any account
in a financial institution that are readily available to the household;
or
`(iii) any other similar
type of resource the inclusion in financial resources of which the Secretary
determines by regulation to be essential to equitable determinations of
eligibility under the food stamp program, except to the extent that any
of those types of resources are excluded under another paragraph of this
subsection.'.
SEC. 427. ALTERNATIVE ISSUANCE
SYSTEMS IN DISASTERS.
Section 5(h)(3)(B) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(h)(3)(B)) is amended--
(1) in the first sentence,
by inserting `issuance methods and' after `shall adjust'; and
(2) in the second sentence,
by inserting `, any conditions that make reliance on electronic benefit
transfer systems described in section 7(i) impracticable,' after `personnel'.
SEC. 428. SIMPLIFIED REPORTING
SYSTEMS.
Section 6(c)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(c)(1)) is amended--
(1) in subparagraph (B),
by striking `monthly' and inserting `periodic'; and
(2) by adding at the end
the following:
`(D) FREQUENCY OF REPORTING-
`(i) IN GENERAL- Except
as provided in subparagraphs (A) and (C), a State agency may require households
that report on a periodic basis to submit reports--
`(I) not less often than
once each 6 months; but
`(II) not more often than
once each month.
`(ii) REPORTING BY HOUSEHOLDS
WITH EXCESS INCOME- A household required to report less often than once
each 3 months shall, notwithstanding subparagraph (B), report in a manner
prescribed by the Secretary if the income of the household for any month
exceeds the standard established under section 5(c)(2).'.
SEC. 429. SIMPLIFIED TIME LIMIT.
(a) IN GENERAL- Section
6(o) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)) is amended--
(A) by striking `36-month'
and inserting `12-month';
(B) by striking `3' and
inserting `6'; and
(C) in subparagraph (D),
by striking `(4), (5), or (6)' and inserting `(4), or (5)';
(2) by striking paragraph
(5);
(3) in paragraph (6)(A)(ii)--
(A) in subclause (III),
by adding `and' at the end;
(B) in subclause (IV), by
striking `; and' and inserting a period; and
(C) by striking subclause
(V); and
(4) by redesignating paragraphs
(6) and (7) as paragraphs (5) and (6), respectively.
(b) IMPLEMENTATION OF AMENDMENTS-
For the purpose of implementing the amendments made by subsection (a),
a State agency shall disregard any period during which an individual received
food stamp benefits before the effective date of this title.
SEC. 430. PRESERVATION OF ACCESS
TO ELECTRONIC BENEFITS.
(a) IN GENERAL- Section
7(i)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)(1)) is amended
by adding at the end the following:
`(E) PROTECTION OF THE ELDERLY,
THE DISABLED, AND OTHERS HAVING DIFFICULTY WITH EBT SYSTEMS-
`(i) IN GENERAL- No benefits
shall be taken off-line or otherwise made inaccessible because of inactivity
until at least 180 days have elapsed since a household last accessed the
account of the household.
`(ii) NOTICE TO HOUSEHOLD-
In a case in which benefits are taken off-line or otherwise made inaccessible,
the household shall be sent a notice that--
`(I) explains how to reactivate
the benefits; and
`(II) offers assistance
if the household is having difficulty accessing the benefits of the household.'.
(b) APPLICABILITY- The amendment
made by subsection (a) shall apply with respect to each contract to operate
an electronic benefit transfer system that a State agency enters into after
the date of enactment of this Act.
SEC. 431. COST-NEUTRALITY FOR
ELECTRONIC BENEFIT TRANSFER SYSTEMS.
Section 7(i)(2)(A) of the
Food Stamp Act of 1977 (7 U.S.C. 2016(i)(2)(A)) is amended by striking
`system to ensure' and all that follows and inserting `system;'.
SEC. 432. SIMPLIFIED PROCEDURES
FOR RESIDENTS OF CERTAIN GROUP FACILITIES.
(a) IN GENERAL- Section
8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended by adding at
the end the following:
`(f) SIMPLIFIED PROCEDURES
FOR RESIDENTS OF CERTAIN GROUP FACILITIES-
`(1) IN GENERAL- At the
option of the State agency, allotments for residents of facilities described
in subparagraph (A), (B), or (E) of section 3(i)(5) may be determined and
issued under this subsection in lieu of subsection (a).
`(2) AMOUNT OF ALLOTMENT-
The allotment for each eligible resident described in paragraph (1) shall
be calculated in accordance with standardized procedures established by
the Secretary that take into account the allotments typically received
by residents of facilities described in paragraph (1).
`(3) ISSUANCE OF ALLOTMENT-
`(A) IN GENERAL- The State
agency shall issue an allotment determined under this subsection to the
administration of a facility described in paragraph (1) as the authorized
representative of the residents of the facility.
`(B) ADJUSTMENT- The Secretary
shall establish procedures to ensure that a facility described in paragraph
(1) does not receive a greater proportion of a resident's monthly allotment
than the proportion of the month during which the resident lived in the
facility.
`(4) DEPARTURES OF COVERED
RESIDENTS-
`(A) NOTIFICATION- Any facility
described in paragraph (1) that receives an allotment for a resident under
this subsection shall--
`(i) notify the State agency
promptly on the departure of the resident; and
`(ii) notify the resident,
before the departure of the resident, that the resident--
`(I) is eligible for continued
benefits under the food stamp program; and
`(II) should contact the
State agency concerning continuation of the benefits.
`(B) ISSUANCE TO DEPARTED
RESIDENTS- On receiving a notification under subparagraph (A)(i) concerning
the departure of a resident, the State agency--
`(i) shall promptly issue
the departed resident an allotment for the days of the month after the
departure of the resident (calculated in a manner prescribed by the Secretary)
unless the departed resident reapplies to participate in the food stamp
program; and
`(ii) may issue an allotment
for the month following the month of the departure (but not any subsequent
month) based on this subsection unless the departed resident reapplies
to participate in the food stamp program.
`(C) AUTHORIZED DELAY IN
ISSUANCE- The State agency may delay issuance under subparagraph (B)(i)
if the State agency lacks sufficient information on the location of the
departed resident to provide the allotment.
`(D) EFFECT OF REAPPLICATION-
If the departed resident reapplies to participate in the food stamp program,
the allotment of the departed resident shall be determined without regard
to this subsection.'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(i) of the
Food Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended--
(A) by striking `(i) `Household'
means (1) an' and inserting the following:
`(i)(1) `Household' means--
(B) in the first sentence,
by striking `others, or (2) a group' and inserting the following: `others;
or
(C) in the second sentence,
by striking `Spouses' and inserting the following:
(D) in the third sentence,
by striking `Notwithstanding' and inserting the following:
(E) in paragraph (3) (as
designated by subparagraph (D)), by striking `the preceding sentences'
and inserting `paragraphs (1) and (2)';
(F) in the fourth sentence,
by striking `In no event' and inserting the following:
(G) in the fifth sentence,
by striking `For the purposes of this subsection, residents' and inserting
the following:
`(5) For the purposes of
this subsection, the following persons shall not be considered to be residents
of institutions and shall be considered to be individual households:
(H) in paragraph (5) (as
designated by subparagraph (G))--
(i) by striking `Act, or
are individuals' and inserting the following: `Act.
(ii) by striking `such section,
temporary' and inserting the following: `that section.
(iii) by striking `children,
residents' and inserting the following: `children.
(iv) by striking `coupons,
and narcotics' and inserting the following: `coupons.
(v) by striking `shall not'
and all that follows and inserting a period.
(2) Section 5(a) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(a)) is amended by striking `the third
sentence of section 3(i)' each place it appears and inserting `section
3(i)(4)'.
(3) Section 8(e)(1) of the
Food Stamp Act of 1977 (7 U.S.C. 2017(e)(1)) is amended by striking `the
last sentence of section 3(i)' and inserting `section 3(i)(5)'.
(4) Section 17(b)(1)(B)(iv)(III)(aa)
of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is
amended by striking
`the last 2 sentences of section
3(i)' and inserting `paragraphs (4) and (5) of section 3(i)'.
SEC. 433. SIMPLIFIED DETERMINATIONS
OF CONTINUING ELIGIBILITY.
(a) IN GENERAL- Section
11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended--
(1) by striking paragraph
(4) and inserting the following:
`(4)(A) that the State agency
shall periodically require each household to cooperate in a redetermination
of the eligibility of the household.
`(B) A redetermination under
subparagraph (A) shall--
`(i) be based on information
supplied by the household; and
`(ii) conform to standards
established by the Secretary.
`(C) The interval between
redeterminations of eligibility under subparagraph (A) shall not exceed
the eligibility review period;' and
(A) by striking `within
the household's certification period'; and
(B) by striking `or until'
and all that follows through `occurs earlier'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(c) of the
Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended--
(A) by striking `Certification
period' and inserting `Eligibility review period'; and
(B) by striking `certification
period' each place it appears and inserting `eligibility review period'.
(2) Section 5 of the Food
Stamp Act of 1977 (7 U.S.C. 2014) is amended--
(A) in subsection (d)(2),
by striking `in the certification period which' and inserting `that'; and
(B) in subsection (e) (as
amended by section 419(b)(1)(B))--
(i) in paragraph (5)(B)(ii)--
(I) in subclause (II), by
striking `certification period' and inserting `eligibility review period';
and
(II) in subclause (III),
by striking `has been anticipated for the certification period' and inserting
`was anticipated when the household applied or at the most recent redetermination
of eligibility for the household'; and
(ii) in paragraph (6)(C)(iii)(II),
by striking `the end of a certification period' and inserting `each redetermination
of the eligibility of the household'.
(3) Section 6 of the Food
Stamp Act of 1977 (7 U.S.C. 2015) is amended--
(A) in subsection (c)(1)(C)(iv),
by striking `certification period' each place it appears and inserting
`interval between required redeterminations of eligibility'; and
(B) in subsection (d)(1)(D)(v)(II),
by striking `a certification period' and inserting `an eligibility review
period'.
(4) Section 8(c) of the
Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is amended--
(A) in the second sentence
of paragraph (1), by striking `within a certification period'; and
(B) in paragraph (2)(B),
by striking `expiration of' and all that follows through `during a certification
period,' and inserting `termination of benefits to the household,'.
(5) Section 11(e)(16) of
the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(16)) is amended by striking
`the certification or recertification' and inserting `determining the eligibility'.
SEC. 434. SIMPLIFIED APPLICATION
PROCEDURES FOR THE ELDERLY AND DISABLED.
(a) IN GENERAL- Section
11(i) of the Food Stamp Act of 1977 (7 U.S.C. 2020(i)) is amended--
(A) by striking `income
shall be informed' and inserting the following: `income shall be--
(B) by striking `program
and be assisted' and inserting the following: `program;
(C) by striking `office
and be certified' and inserting the following: `office; and
(2) by adding at the end
the following:
`(3) DUAL-PURPOSE APPLICATIONS-
`(A) IN GENERAL- Under regulations
promulgated by the Secretary after consultation with the Commissioner of
Social Security, a State agency may enter into a memorandum of understanding
with the Commissioner under
which an application for supplemental
security income benefits under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.) from a household composed entirely of applicants for
or recipients of those benefits shall also be considered to be an application
for benefits under the food stamp program.
`(B) CERTIFICATION; REPORTING
REQUIREMENTS- A household covered by a memorandum of understanding under
subparagraph (A)--
`(i) shall be certified
based exclusively on information provided to the Commissioner, including
such information as the Secretary shall require to be collected under the
terms of any memorandum of understanding under this paragraph; and
`(ii) shall not be subject
to any reporting requirement under section 6(c).
`(C) EXCEPTIONS TO VALUE
OF ALLOTMENT- The Secretary shall provide by regulation for such exceptions
to section 8(a) as are necessary because a household covered by a memorandum
of understanding under subparagraph (A) did not complete an application
under subsection (e)(2).
`(D) COVERAGE- In accordance
with standards promulgated by the Secretary, a memorandum of understanding
under subparagraph (A) need not cover all classes of applicants and recipients
referred to in subparagraph (A).
`(E) EXEMPTION FROM CERTAIN
APPLICATION PROCEDURES- In the case of any member of a household covered
by a memorandum of understanding under subparagraph (A), the Commissioner
shall not be required to comply with--
`(i) subparagraph (B) or
(C) of paragraph (1); or
`(ii) subsection (j)(1)(B).
`(F) RIGHT TO APPLY UNDER
REGULAR PROGRAM- The Secretary shall ensure that each household covered
by a memorandum of understanding under subparagraph (A) is informed that
the household may--
`(i)(I) submit an application
under subsection (e)(2); and
`(II) have the eligibility
and value of the allotment of the household under the food stamp program
determined without regard to this paragraph; or
`(ii) decline to participate
in the food stamp program.
`(G) TRANSITION PROVISION-
Notwithstanding the requirement for the promulgation of regulations under
subparagraph (A), the Secretary may approve a request from a State agency
to enter into a memorandum of understanding in accordance with this paragraph
during the period--
`(i) beginning on the date
of enactment of this paragraph; and
`(ii) ending on the earlier
of--
`(I) the date of promulgation
of the regulations; or
`(II) the date that is 3
years after the date of enactment of this paragraph.'.
(b) CONFORMING AMENDMENTS-
Section 11(j)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2020(j)(1)) is
amended--
(1) by striking `shall be
informed' and inserting the following: `shall be--
(2) by striking `program
and informed' and inserting the following: `program; and
SEC. 435. TRANSITIONAL FOOD
STAMPS FOR FAMILIES MOVING FROM WELFARE.
(a) IN GENERAL- Section
11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended by adding at
the end the following:
`(s) TRANSITIONAL BENEFITS
OPTION-
`(1) IN GENERAL- A State
agency may provide transitional food stamp benefits to a household that
ceases to receive cash assistance under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).
`(2) TRANSITIONAL BENEFITS
PERIOD- Under paragraph (1), a household may continue to receive food stamp
benefits for a period of not more than 6 months after the date on which
cash assistance is terminated.
`(3) AMOUNT OF BENEFITS-
During the transitional benefits period under paragraph (2), a household
shall receive an amount of food stamp benefits equal to the allotment received
in the month immediately preceding the date on which cash assistance was
terminated, adjusted for--
`(A) the change in household
income as a result of the termination of cash assistance; and
`(B) any changes in circumstances
that may result in an increase in the food stamp allotment of the household
and that the household elects to report.
`(4) DETERMINATION OF FUTURE
ELIGIBILITY- In the final month of the transitional benefits period under
paragraph (2), the State agency may--
`(A) require the household
to cooperate in a redetermination of eligibility to receive an authorization
card; and
`(B) initiate a new eligibility
review period for the household without regard to whether the preceding
eligibility review period has expired.
`(5) LIMITATION- A household
shall not be eligible for transitional benefits under this subsection if
the household--
`(A) loses eligibility under
section 6;
`(B) is sanctioned for a
failure to perform an action required by Federal, State, or local
law relating to a cash assistance
program described in paragraph (1); or
`(C) is a member of any
other category of households designated by the State agency as ineligible
for transitional benefits.'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(c) of the
Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended by adding at the end
the following: `The limits specified in this section may be extended until
the end of any transitional benefit period established under section 11(s).'.
(2) Section 6(c) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is amended by striking `No household'
and inserting `Except in a case in which a household is receiving transitional
benefits during the transitional benefits period under section 11(s), no
household'.
SEC. 436. QUALITY CONTROL.
(a) IN GENERAL- Section
16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--
(1) in paragraph (1), by
striking `Under such system' and all that follows and inserting the following:
`The system referred to in the preceding sentence shall have the following
elements:
`(A) CORRECTIVE ACTION PLANS-
The Secretary shall foster management improvements by the States by requiring
State agencies to develop and implement corrective action plans to reduce
payment errors.
`(B) INVESTIGATION AND INITIAL
SANCTIONS-
`(i) INVESTIGATION- Except
as provided under subparagraph (C), for any fiscal year in which the Secretary
determines that a 95 percent statistical probability exists that the payment
error rate of a State agency exceeds the national performance measure for
payment error rates announced under paragraph (6) by more than 1 percentage
point, other than for good cause shown, the Secretary shall investigate
the administration by the State agency of the food stamp program unless
the Secretary determines that sufficient information is already available.
`(ii) INITIAL SANCTIONS-
If an investigation under clause (i) results in a determination that the
State agency has been seriously negligent (as determined under standards
promulgated by the Secretary), the State agency shall pay the Secretary
an amount that reflects the extent of such negligence (as determined under
standards promulgated by the Secretary), not to exceed 5 percent of the
amount provided to the State agency under subsection (a) for the fiscal
year.
`(C) ADDITIONAL SANCTIONS-
If, for any fiscal year, the Secretary determines that a 95 percent statistical
probability exists that the payment error rate of a State agency exceeds
the national performance measure for payment error rates announced under
paragraph (6) by more than 1 percentage point, other than for good cause
shown, and that the State agency was sanctioned under this paragraph or
was the subject of an investigation under subparagraph (B)(i) for each
of the 2 immediately preceding fiscal years, the State agency shall pay
to the Secretary an amount equal to the product obtained by multiplying--
`(i) the value of all allotments
issued by the State agency in the fiscal year;
`(aa) the amount by
which the payment error rate of the State agency for the fiscal year exceeds
by more than 1 percentage point the national performance measure for the
fiscal year; bears to
`(bb) 10 percent;
or
`(iii) the amount by which
the payment error rate of the State agency for the fiscal year exceeds
by more than 1 percentage point the national performance measure for the
fiscal year.';
(2) in paragraph (2)(A),
by inserting before the semicolon the following: `, as adjusted downward
as appropriate under paragraph (10)';
(3) in the first sentence
of paragraph (4), by striking `, enhanced administrative funding,' and
all that follows and inserting `under this subsection, high performance
bonus payment under paragraph (11), or claim for payment error under paragraph
(1).';
(4) in the first sentence
of paragraph (5), by striking `to establish' and all that follows and inserting
the following: `to establish the payment error rate for the State agency
for the fiscal year, to comply with paragraph (10), and to determine the
amount of any high performance bonus payment of the State agency under
paragraph (11) or claim under paragraph (1).';
(5) in the first sentence
of paragraph (6), by striking `incentive payments or claims pursuant to
paragraphs (1)(A) and (1)(C),' and inserting `claims under paragraph (1),';
and
(6) by adding at the end
the following:
`(10) ADJUSTMENTS OF PAYMENT
ERROR RATE-
`(i) FISCAL YEAR 2002- Subject
to clause (ii), for fiscal year 2002, in applying paragraph (1), the Secretary
shall adjust the payment error rate determined under paragraph (2)(A) as
necessary to eliminate any increases in errors that result from the State
agency's serving a higher percentage of households with earned income,
households with 1 or more members who are not
United States citizens, or both,
than the lesser of, as the case may be--
`(I) the percentage of households
of the corresponding type that receive food stamps nationally; or
`(II) the percentage of--
`(aa) households with
earned income that received food stamps in the State in fiscal year 1992;
or
`(bb) households
with members who are not United States citizens that received food stamps
in the State in fiscal year 1998.
`(ii) EXPANDED APPLICABILITY
TO STATE AGENCIES SUBJECT TO SANCTIONS- In the case of a State agency subject
to sanctions for fiscal year 2001 or any fiscal year thereafter under paragraph
(1), the adjustments described in clause (i) shall apply to the State agency
for the fiscal year.
`(B) CONTINUATION OR MODIFICATION
OF ADJUSTMENTS- For fiscal year 2003 and each fiscal year thereafter, the
Secretary may determine whether the continuation or modification of the
adjustments described in subparagraph (A)(i) or the substitution of other
adjustments is most consistent with achieving the purposes of this Act.'.
(b) CONFORMING AMENDMENT-
Section 22(h) of the Food Stamp Act of 1977 (7 U.S.C. 2031(h)) is amended
by striking the last sentence.
(c) APPLICABILITY- Except
as otherwise provided in the amendments made by subsection (a), the amendments
made by subsection (a) shall apply to fiscal year 2001 and each fiscal
year thereafter.
SEC. 437. IMPROVEMENT OF CALCULATION
OF STATE PERFORMANCE MEASURES.
Section 16(c)(8)(C) of the
Food Stamp Act of 1977 (7 U.S.C. 2025(c)(8)(C)) is amended by striking
`30 days thereafter' and inserting `the first June 30 after the end of
the fiscal year referred to in subparagraph (A)'.
SEC. 438. BONUSES FOR STATES
THAT DEMONSTRATE HIGH PERFORMANCE.
(a) IN GENERAL- Section
16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)) (as amended by section
436(a)(6)) is amended--
(1) in the first sentence
of paragraph (1), by striking `enhanced administrative funding to States
with the lowest error rates.' and inserting `bonus payments to States that
demonstrate high levels of performance.'; and
(2) by adding at the end
the following:
`(11) HIGH PERFORMANCE BONUS
PAYMENTS-
`(A) IN GENERAL- For each
fiscal year, the Secretary shall--
`(i) measure the performance
of each State agency with respect to each of the performance measures specified
in subparagraph (B); and
`(ii) subject to subparagraph
(D), make high performance bonus payments to the State agencies with the
highest achievement with respect to those performance measures.
`(B) PERFORMANCE MEASURES-
The performance measures specified in this subparagraph are--
`(i)(I) the greatest dollar
amount of total claims collected in the fiscal year as a proportion of
the overpayment dollar amount in the previous fiscal year; and
`(II) the greatest percentage
point improvement under clause (i)(I) from the previous fiscal year to
the fiscal year;
`(ii) the greatest improvement
from the previous fiscal year to the fiscal year in the ratio, expressed
as a percentage, that--
`(I) the number of households
in the State that--
`(aa) have incomes less
than 130 percent of the poverty line (as defined in section 673 of the
Community Services Block Grant Act (42 U.S.C. 9902));
`(bb) are eligible
for food stamp benefits; and
`(cc) receive food
stamps benefits; bears to
`(II) the number of households
in the State that--
`(aa) have incomes less
than 130 percent of the poverty line (as so defined); and
`(bb) are eligible
for food stamp benefits;
`(iii) the lowest overpayment
error rate;
`(iv) the greatest percentage
point improvement from the previous fiscal year to the fiscal year in the
overpayment error rate;
`(v) the lowest negative
error rate;
`(vi) the greatest percentage
point improvement from the previous year to the fiscal year in the negative
error rate;
`(vii) the lowest underpayment
error rate;
`(viii) the greatest percentage
point improvement from the previous year to the fiscal year in the underpayment
error rate;
`(ix) the greatest percentage
of new applications processed within the deadlines established under paragraphs
(3) and (9) of section 11(e); and
`(x) the least average period
of time needed to process applications under paragraphs (3) and (9) of
section 11(e).
`(C) HIGH PERFORMANCE BONUS
PAYMENTS-
`(i) DEFINITION OF CASELOAD-
In this subparagraph, the term `caseload' has the meaning given the term
in section 6(o)(5)(A).
`(ii) AMOUNT OF PAYMENTS-
`(I) IN GENERAL- For each
fiscal year, the Secretary shall--
`(aa) make 1 high performance
bonus payment of $10,000,000 for each of the 10 performance measures under
subparagraph (B); and
`(bb) allocate the
high performance bonus payment with respect to each performance measure
in accordance with subclauses (II) and (III).
`(II) PAYMENT FOR PERFORMANCE
MEASURE CONCERNING CLAIMS COLLECTED- For each fiscal year, the Secretary
shall allocate the high performance bonus payment made for the performance
measure under subparagraph (B)(i) among the 20 State agencies with the
highest performance
in the performance measure in
the ratio that--
`(aa) the caseload
of each such State agency; bears to
`(bb) the caseloads
of all such State agencies.
`(III) PAYMENTS FOR OTHER
PERFORMANCE MEASURES- For each fiscal year, the Secretary shall allocate
the high performance bonus payment made for the performance measure under
each of clauses (ii) through (x) of subparagraph (B) among the 10 State
agencies with the highest performance in the performance measure in the
ratio that--
`(aa) the caseload of
each such State agency; bears to
`(bb) the caseloads
of all such State agencies.
`(iii) DETERMINATION OF
HIGHEST PERFORMERS-
`(I) IN GENERAL- In determining
the highest performers under clause (ii), the Secretary shall calculate
applicable percentages to 2 decimal places.
`(II) DETERMINATION IN EVENT
OF A TIE- If, under subclause (I), 2 or more State agencies have the same
percentage with respect to a performance measure, the Secretary shall calculate
the percentage for the performance measure to as many decimal places as
are necessary to determine which State agency has the greatest percentage.
`(D) LIMITATIONS FOR STATE
AGENCIES SUBJECT TO SANCTIONS- If, for any fiscal year, a State agency
is subject to a sanction under paragraph (1)--
`(i) the State agency shall
not be eligible for a high performance bonus payment under clause (iii),
(iv), (vii), or (viii) of subparagraph (B) for the fiscal year; and
`(ii) the State agency shall
not receive a high performance bonus payment for which the State agency
is otherwise eligible under this paragraph for the fiscal year until the
obligation of the State agency under the sanction has been satisfied (as
determined by the Secretary).
`(E) PAYMENTS NOT SUBJECT
TO JUDICIAL REVIEW- A determination by the Secretary whether, and in what
amount, to make a high performance bonus payment under this paragraph shall
not be subject to judicial review.'.
(b) APPLICABILITY- The amendment
made by subsection (a) shall apply to fiscal year 2003 and each fiscal
year thereafter.
SEC. 439. SIMPLIFIED FUNDING
RULES FOR EMPLOYMENT AND TRAINING PROGRAMS.
(a) LEVELS OF FUNDING- Section
16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking `, to remain
available until expended,'; and
(B) by striking clause (vii)
and inserting the following:
`(vii) to remain available
until expended--
`(I) for fiscal year 2002,
$122,000,000;
`(II) for fiscal year 2003,
$129,000,000;
`(III) for fiscal year 2004,
$135,000,000;
`(IV) for fiscal year 2005,
$142,000,000; and
`(V) for fiscal year 2006,
$149,000,000.';
(2) by striking subparagraph
(B) and inserting the following:
`(B) ALLOCATION- Funds made
available under subparagraph (A) shall be made available to and reallocated
among State agencies under a reasonable formula that--
`(i) is determined and adjusted
by the Secretary; and
`(ii) takes into account
the number of individuals who are not exempt from the work requirement
under section 6(o).'; and
(3) by striking subparagraphs
(E) through (G).
(b) RESCISSION OF CARRYOVER
FUNDS- Notwithstanding any other provision of law, funds provided under
section 16(h)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)(A))
for any fiscal year before fiscal year 2002 shall cease to be available
on the date of enactment of this Act, unless obligated by a State agency
before that date.
(c) PARTICIPANT EXPENSES-
Section 6(d)(4)(I)(i)(I) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I))
is amended by striking `$25 per month' and inserting `an amount not less
than $25 per month'.
(d) FEDERAL REIMBURSEMENT-
Section 16(h)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is
amended by striking `$25' and inserting `the limit established by the State
agency under section 6(d)(4)(I)(i)(I)'.
SEC. 440. REAUTHORIZATION OF
FOOD STAMP PROGRAM.
(a) REDUCTIONS IN PAYMENTS
FOR ADMINISTRATIVE COSTS- Section 16(k)(3) of the Food Stamp Act of 1977
(7 U.S.C. 2025(k)(3)) is amended--
(1) in the first sentence
of subparagraph (A), by striking `2002' and inserting `2006'; and
(2) in subparagraph (B)(ii),
by striking `2002' and inserting `2006'.
(b) CASH PAYMENT PILOT PROJECTS-
Section 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(B)(vi)) is amended
by striking `2002' and inserting `2006'.
(c) GRANTS TO IMPROVE FOOD
STAMP PARTICIPATION- Section 17(i)(1)(A) of the Food Stamp Act of 1977
(7 U.S.C. 2026(i)(1)(A)) is amended in the first sentence by striking `2002'
and inserting `2006'.
(d) AUTHORIZATION OF APPROPRIATIONS-
Section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is
amended in the first sentence by striking `2002' and inserting `2006'.
SEC. 441. EXPANDED GRANT AUTHORITY.
Section 17(a)(1) of the
Food Stamp Act of 1977 (7 U.S.C. 2026(a)(1)) is amended--
(1) by striking `, by way
of making' and inserting `make';
(2) by striking `agencies,'
and inserting `agencies under this section to'; and
(3) by adding at the end
the following: `The waiver authority of the Secretary under subsection
(b) shall extend to all contracts and grants under this section.'.
SEC. 442. EXEMPTION OF WAIVERS
FROM COST-NEUTRALITY REQUIREMENT.
Section 17(b)(1) of the
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)) is amended by adding at the
end the following:
`(i) REQUIREMENTS FOR WAIVERS-
`(I) ESTIMATION OF COSTS
AND SAVINGS OF WAIVERS- Before approving a waiver for any demonstration
project proposed under this subsection, the Secretary shall estimate the
costs or savings likely to result from the waiver.
`(II) APPROVAL OF WAIVERS-
The Secretary shall not approve any waiver that the Secretary estimates
will increase costs to the Federal Government unless--
`(aa) exigent circumstances
require the approval of the waiver;
`(bb) the increase
in costs is insignificant; or
`(cc) the increase
in costs is necessary for a designated research demonstration project under
clause (ii).
`(III) MULTIYEAR COST NEUTRALITY-
A waiver shall not be considered to increase costs to the Federal Government
based on the impact of the waiver in any 1 fiscal year if the waiver is
not expected to increase costs to the Federal Government over any 3-fiscal
year period that includes the fiscal year.
`(ii) EXEMPTION FROM COST-NEUTRALITY
REQUIREMENT FOR CERTAIN PROJECTS-
`(I) IN GENERAL- For each
fiscal year, the Secretary may designate research demonstration projects
that--
`(aa) have a substantial
likelihood of producing information on important issues of food stamp program
design or operation; and
`(bb) the Secretary
estimates are likely to increase costs to the Federal Government by a total
of not more than $50,000,000 during the period of fiscal years 2002 through
2006.
`(II) EXEMPTION- A project
described in subclause (I) shall be exempt from clause (i).
`(iii) OFFSETS IN OTHER
PROGRAMS- In making determinations of costs to the Federal Government under
this subparagraph, the Secretary shall estimate and consider savings to
the Federal Government in other programs in such a manner as the Secretary
determines to be appropriate.
`(iv) NO LOOK-BACK- The
Secretary shall not be required to adjust any estimate made under this
subparagraph to reflect the actual costs of a demonstration project as
implemented by a State agency.'.
SEC. 443. PROGRAM SIMPLIFICATION
DEMONSTRATION PROJECTS.
(a) ENHANCED WAIVER AUTHORITY-
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended by
striking subsection (e) and inserting the following:
`(e) PROGRAM SIMPLIFICATION
DEMONSTRATION PROJECTS-
`(1) IN GENERAL- With the
approval of the Secretary, not more than 5 State agencies may carry out
demonstration projects to test, for a period of not more than 3 years,
promising approaches to simplifying the food stamp program.
`(2) TYPES OF DEMONSTRATION
PROJECTS- Each demonstration project under paragraph (1) shall test changes
in food stamp program rules in not more than 1 of the following 2 areas:
`(A)(i) Reporting requirements
under section 6(c).
`(ii) Verification methods
under section 11(e)(3) (including reliance on data from preceding periods
that can be obtained or verified electronically).
`(iii) A combination of
reporting requirements and verification methods.
`(B) The income standard
of eligibility established under section 5(c)(1), deductions under section
5(e), and income budgeting procedures under section 5(f).
`(3) SELECTION OF DEMONSTRATION
PROJECTS-
`(A) IN GENERAL- The Secretary
shall establish a competitive process to select, from all projects proposed
by State agencies, the demonstration projects to be carried out under this
subsection based on which projects have the greatest likelihood of producing
useful information on important issues of food stamp program design or
operation, as determined by the Secretary.
`(B) GOALS- In selecting
demonstration projects, the Secretary shall seek, at a minimum, to achieve
a balance between--
`(i) simplifying the food
stamp program;
`(ii) reducing administrative
burdens on State agencies, households, and other individuals and entities;
`(iii) providing nutrition
assistance to individuals most in need; and
`(iv) improving access to
nutrition assistance.
`(C) PROJECTS NOT ELIGIBLE
FOR SELECTION- The Secretary shall not select any demonstration project
under this subsection that the Secretary determines does not have a strong
likelihood of producing useful information on important issues of food
stamp program design or operation.
`(D) DIVERSITY OF APPROACHES
AND AREAS- In selecting demonstration projects to be carried out under
this subsection, the Secretary shall seek to include--
`(i) projects that take
diverse approaches;
`(ii) at least 1 project
that will operate in an urban area; and
`(iii) at least 1 project
that will operate in a rural area.
`(E) MAXIMUM AGGREGATE COST
OF PROJECTS- The estimated aggregate cost of projects selected by the Secretary
under this subsection shall not exceed $90,000,000.
`(4) SIZE OF AREA- Each
demonstration project selected under this subsection shall be carried out
in an area that contains not more than the greater of--
`(A) one-third of the total
households receiving allotments in the State; or
`(B) the minimum number
of households needed to measure the effects of the demonstration projects.
`(A) IN GENERAL- The Secretary
shall provide, through contract or other means, for detailed, statistically
valid evaluations to be conducted of each demonstration project carried
out under this subsection.
`(B) MINIMUM REQUIREMENTS-
Each evaluation under subparagraph (A)--
`(i) shall include the study
of control groups or areas; and
`(ii) shall analyze, at
a minimum, the effects of the project design on--
`(I) costs of the food stamp
program;
`(II) State administrative
costs;
`(III) the integrity of
the food stamp program, including errors as measured under section 16(c);
`(IV) participation by households
in need of nutrition assistance; and
`(V) changes in allotment
levels experienced by--
`(aa) households of
various income levels;
`(bb) households
with elderly, disabled, and employed members;
`(cc) households
with high shelter costs relative to the incomes of the households; and
`(dd) households
receiving subsidized housing, child care, or health insurance.
`(C) FUNDING- From funds
made available to carry out this Act, the Secretary shall reserve not more
than $6,000,000 to conduct evaluations under this paragraph.
`(6) REPORT TO CONGRESS-
Not later than January 1, 2006, the Secretary shall submit to Congress
a report on the impact of the demonstration projects carried out under
this subsection on the food stamp program, including the effectiveness
of the demonstration projects in--
`(A) delivering nutrition
assistance to households most at risk; and
`(B) reducing administrative
burdens.'.
(b) CONFORMING AMENDMENT-
Section 17(b)(1)(B)(iv)(III)(ii) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(B)(iv)(III)(ii)) is amended by striking `paragraph' and inserting
`section'.
SEC. 444. CONSOLIDATED BLOCK
GRANTS.
(a) CONSOLIDATED FUNDING-
Section 19(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is
amended--
(1) in subparagraph (A)--
(A) by striking `the Commonwealth
of Puerto Rico' and inserting `governmental entities specified in subparagraph
(D)';
(B) in clause (ii), by striking
`and' at the end; and
(C) by striking clause (iii)
and all that follows and inserting the following:
`(iii) for fiscal year 2002,
$1,356,000,000; and
`(iv) for each of fiscal
years 2003 through 2006, the amount provided in clause (iii), as adjusted
by the percentage by which the thrifty food plan has been adjusted under
section 3(o)(4) between June 30, 2001, and June 30 of the immediately preceding
fiscal year;
to pay the expenditures
for nutrition assistance programs for needy persons as described in subparagraphs
(B) and (C).';
(2) in subparagraph (B),
by inserting `of Puerto Rico' after `Commonwealth' each place it appears;
and
(3) by adding at the end
the following:
`(C) AMERICAN SAMOA- For
each fiscal year, the Secretary shall reserve 0.4 percent of the funds
made available under subparagraph (A) for payment to American Samoa to
pay the expenditures for a nutrition assistance program extended under
section 601(c) of Public Law 96-597 (48 U.S.C. 1469d(c)).
`(D) GOVERNMENTAL ENTITY-
A governmental entity specified in this subparagraph is--
`(i) the Commonwealth of
Puerto Rico; and
`(ii) for fiscal year 2003
and each fiscal year thereafter, American Samoa.'.
(b) CONFORMING AMENDMENT-
Section 24 of the Food Stamp Act of 1977 (7 U.S.C. 2033) is repealed.
(c) EFFECTIVE DATE- The
amendments made by this section take effect on October 1, 2002.
SEC. 445. EXPANDED AVAILABILITY
OF COMMODITIES.
Section 27(a) of the Food
Stamp Act of 1977 (7 U.S.C. 2036(a)) is amended--
(1) by striking `From amounts'
and inserting the following:
`(1) IN GENERAL- From amounts';
(2) by striking `for each
of fiscal years 1997 through 2002, the Secretary shall purchase $100,000,000
of' and inserting `the Secretary shall use the amount specified in paragraph
(2) to purchase'; and
(3) by adding at the end
the following:
`(2) AMOUNTS- The amounts
specified in this paragraph are--
`(A) for each of fiscal
years 1997 through 2001, $100,000,000; and
`(B) for each of fiscal
years 2002 through 2006, $140,000,000.'.
Subtitle B--Miscellaneous Provisions
SEC. 451. REAUTHORIZATION OF
COMMODITY PROGRAMS.
(a) COMMODITY DISTRIBUTION
PROGRAM- Section 4(a) of the Agriculture and Consumer Protection Act of
1973 (7 U.S.C. 612c note; Public Law 93-86) is amended in the first sentence
by striking `2002' and inserting `2006'.
(b) COMMODITY SUPPLEMENTAL
FOOD PROGRAM- Section 5 of the Agriculture and Consumer Protection Act
of 1973 (7 U.S.C. 612c note; Public Law 93-86) is amended in subsections
(a)(2) and (d)(2) by striking `2002' each place it appears and inserting
`2006'.
(c) DISTRIBUTION OF SURPLUS
COMMODITIES TO SPECIAL NUTRITION PROJECTS- Section 1114(a)(2)(A) of the
Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the
first sentence by striking `2002' and inserting `2006'.
(d) EMERGENCY FOOD ASSISTANCE-
Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7508(a)(1)) is amended in the first sentence--
(1) by striking `2002' and
inserting `2006';
(2) by striking `administrative';
and
(3) by inserting `storage,'
after `processing,'.
SEC. 452. WORK REQUIREMENT FOR
LEGAL IMMIGRANTS.
(a) WORKING IMMIGRANT FAMILIES-
Section 402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(B)(ii)(I)) is amended by
striking `40' and inserting `40 (or, in the case of the specified Federal
program described in paragraph (3)(B), 16)'.
(b) CONFORMING AMENDMENTS-
(1) Section 213A(a)(3)(A)
of the Immigration and Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended
by striking `40' and inserting `40 (or, in the case of the specified Federal
program described in section 402(a)(3)(B) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(3)(B)),
16)'.
(2) Section 403(c)(2) of
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (8 U.S.C. 1613(c)(2)) is amended by adding at the end the following:
`(L) Assistance or benefits
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).'.
(3) Section 421(b)(2)(A)
of the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (8 U.S.C. 1631(b)(2)(A)) is amended by striking `40' and inserting
`40 (or, in the case of the specified Federal program described in section
402(a)(3)(B), 16)'.
SEC. 453. QUALIFIED ALIENS.
Section 402(a)(2) of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1612(a)(2)) is amended by adding at the end the following:
`(L) FOOD STAMP EXCEPTION
FOR CERTAIN QUALIFIED ALIENS- With respect to eligibility for benefits
for the specified Federal program described in paragraph (3)(B), paragraph
(1) shall not apply to any individual who has continuously resided in the
United States as a qualified alien for a period of 5 years or more.'.
SEC. 454. CONGRESSIONAL HUNGER
FELLOWS PROGRAM.
(a) SHORT TITLE- This section
may be cited as the `Congressional Hunger Fellows Act of 2001'.
(b) FINDINGS- Congress finds
that--
(A) a critical need for
compassionate individuals who are committed to assisting people who suffer
from hunger; and
(B) a need for those individuals
to initiate and administer solutions to the hunger problem;
(2) Bill Emerson, the distinguished
late Representative from the 8th District of Missouri, demonstrated--
(A) his commitment to solving
the problem of hunger in a bipartisan manner;
(B) his commitment to public
service; and
(C) his great affection
for the institution and the ideals of Congress;
(3) George T. (Mickey) Leland,
the distinguished late Representative from the 18th District of Texas,
demonstrated--
(A) his compassion for individuals
in need;
(B) his high regard for
public service; and
(C) his lively exercise
of political talents;
(4) the special concern
that Mr. Emerson and Mr. Leland demonstrated during their lives for the
hungry and poor was an inspiration for others to work toward the goals
of equality and justice for all; and
(5) since those 2 outstanding
leaders maintained a special bond of friendship regardless of political
affiliation and worked together to encourage future leaders to recognize
and provide service to others, it is especially appropriate to honor the
memory of Mr. Emerson and Mr. Leland by establishing a fellowship program
to develop and train the future leaders of the United States to pursue
careers in humanitarian service.
(c) DEFINITIONS- In this
section:
(1) APPROPRIATE CONGRESSIONAL
COMMITTEES- The term `appropriate congressional committees' means--
(A) the Committee on Agriculture
and the Committee on International Relations of the House of Representatives;
and
(B) the Committee on Agriculture,
Nutrition, and Forestry and the Committee on Foreign Relations of the Senate.
(2) BOARD- The term `Board'
means the Board of Trustees of the Program.
(3) FUND- The term `Fund'
means the Congressional Hunger Fellows Trust Fund established by subsection
(g).
(4) PROGRAM- The term `Program'
means the Congressional Hunger Fellows Program established by subsection
(d).
(d) ESTABLISHMENT- There
is established as an independent entity of the legislative branch of the
United States Government an entity to be known as the `Congressional Hunger
Fellows Program'.
(1) IN GENERAL- The Program
shall be subject to the supervision and direction of a Board of Trustees.
(2) MEMBERS OF THE BOARD-
(i) IN GENERAL- The Board
shall be composed of 6 voting members appointed under clause (ii) and 1
nonvoting ex-officio member designated by clause (iii).
(ii) VOTING MEMBERS- The
voting members of the Board shall be the following:
(I) 2 members appointed
by the Speaker of the House of Representatives.
(II) 1 member appointed
by the minority leader of the House of Representatives.
(III) 2 members appointed
by the majority leader of the Senate.
(IV) 1 member appointed
by the minority leader of the Senate.
(iii) NONVOTING MEMBER-
The Executive Director of the Program shall serve as a nonvoting ex-officio
member of the Board.
(i) IN GENERAL- Each member
of the Board shall serve for a term of 4 years.
(ii) INCOMPLETE TERM- If
a member of the Board does not serve the full term of the member, the individual
appointed to fill the resulting vacancy shall be appointed for the remainder
of the term of the predecessor of the individual.
(C) VACANCY- A vacancy on
the Board--
(i) shall not affect the
powers of the Board; and
(ii) shall be filled in
the same manner as the original appointment was made.
(D) CHAIRPERSON- As the
first order of business of the first meeting of the Board, the members
shall elect a Chairperson.
(i) IN GENERAL- Subject
to clause (ii), a member of the Board shall not receive compensation for
service on the Board.
(ii) TRAVEL- A member of
the Board shall be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for an employee of an agency under
subchapter I of chapter 57 of title 5, United States Code, while away from
the home or regular place of business of the member in the performance
of the duties of the Board.
(i) ESTABLISHMENT- The Board
shall establish such bylaws and other regulations as are appropriate to
enable the Board to carry out this section, including the duties described
in this paragraph.
(ii) CONTENTS- Bylaws and
other regulations established under clause (i) shall include provisions--
(I) for appropriate fiscal
control, accountability for funds, and operating principles;
(II) to prevent any conflict
of interest, or the appearance of any conflict of interest, in--
(aa) the procurement
and employment actions taken by the Board or by any officer or employee
of the Board; and
(bb) the selection
and placement of individuals in the fellowships developed under the Program;
(III) for the resolution
of a tie vote of the members of the Board; and
(IV) for authorization of
travel for members of the Board.
(iii) SUBMISSION TO CONGRESS-
Not later than 90 days after the date of the first meeting of the Board,
the Chairperson of the Board shall submit to the appropriate congressional
committees a copy of the bylaws established by the Board.
(B) BUDGET- For each fiscal
year in which the Program is in operation--
(i) the Board shall determine
a budget for the Program for the fiscal year; and
(ii) all spending by the
Program shall be in accordance with the budget unless a change is approved
by the Board.
(C) PROCESS FOR SELECTION
AND PLACEMENT OF FELLOWS- The Board shall review and approve the process
established by the Executive Director for the selection and placement of
individuals in the fellowships developed under the Program.
(D) ALLOCATION OF FUNDS
TO FELLOWSHIPS- The Board shall determine--
(i) the priority of the
programs to be carried out under this section; and
(ii) the amount of funds
to be allocated for the fellowships established under subsection (f)(3)(A).
(f) PURPOSES; AUTHORITY
OF PROGRAM-
(1) PURPOSES- The purposes
of the Program are--
(A) to encourage future
leaders of the United States to pursue careers in humanitarian service;
(B) to recognize the needs
of people who are hungry and poor;
(C) to provide assistance
and compassion for people in need;
(D) to increase awareness
of the importance of public service; and
(E) to provide training
and development opportunities for the leaders through placement in programs
operated by appropriate entities.
(2) AUTHORITY- The Program
may develop fellowships to carry out the purposes of the Program, including
the fellowships described in paragraph (3).
(A) IN GENERAL- The Program
shall establish and carry out the Bill Emerson Hunger Fellowship and the
Mickey Leland Hunger Fellowship.
(i) IN GENERAL- The fellowships
established under subparagraph (A) shall provide experience and training
to develop the skills and understanding necessary to improve the humanitarian
conditions and the lives of individuals who suffer from hunger, including--
(I) training in direct service
to the hungry in conjunction with community-based organizations through
a program of field placement; and
(II) experience in policy
development through placement in a governmental entity or nonprofit organization.
(I) BILL EMERSON HUNGER
FELLOWSHIP- The Bill Emerson Hunger Fellowship shall address hunger and
other humanitarian needs in the United States.
(II) MICKEY LELAND HUNGER
FELLOWSHIP- The Mickey Leland Hunger Fellowship shall address international
hunger and other humanitarian needs.
(iii) WORK PLAN- To carry
out clause (i) and to assist in the evaluation of the fellowships under
paragraph (4), the Program shall, for each fellow, approve a work plan
that identifies the target objectives for the fellow in the fellowship,
including the specific duties and responsibilities relating to the objectives.
(C) PERIOD OF FELLOWSHIP-
(i) EMERSON FELLOWSHIP-
A Bill Emerson Hunger Fellowship awarded under this paragraph shall be
for a period of not more than 1 year.
(ii) LELAND FELLOWSHIP-
A Mickey Leland Hunger Fellowship awarded under this paragraph shall be
for a period of not more than 2 years, of which not less than 1 year shall
be dedicated to fulfilling the requirement of subparagraph (B)(i)(I).
(D) SELECTION OF FELLOWS-
(i) IN GENERAL- A fellowship
shall be awarded through a nationwide competition established by the Program.
(ii) QUALIFICATION- A successful
applicant shall be an individual who has demonstrated--
(I) an intent to pursue
a career in humanitarian service and outstanding potential for such a career;
(II) leadership potential
or leadership experience;
(III) diverse life experience;
(IV) proficient writing
and speaking skills;
(V) an ability to live in
poor or diverse communities; and
(VI) such other attributes
as the Board determines to be appropriate.
(I) IN GENERAL- Each individual
awarded a fellowship under this paragraph shall receive a living allowance
and, subject to subclause (II), an end-of-service award as determined by
the Program.
(II) REQUIREMENT FOR SUCCESSFUL
COMPLETION OF FELLOWSHIP- Each individual awarded a fellowship under this
paragraph shall be entitled to receive an end-of-service award at an appropriate
rate for each month of satisfactory service as determined by the Executive
Director.
(iv) RECOGNITION OF FELLOWSHIP
AWARD-
(I) EMERSON FELLOW- An individual
awarded a Bill Emerson Hunger Fellowship shall be known as an `Emerson
Fellow'.
(II) LELAND FELLOW- An individual
awarded a Mickey Leland Hunger Fellowship shall be known as a `Leland Fellow'.
(A) IN GENERAL- The Program
shall conduct periodic evaluations of the Bill Emerson and Mickey Leland
Hunger Fellowships.
(B) REQUIRED ELEMENTS- Each
evaluation shall include--
(i) an assessment of the
successful completion of the work plan of each fellow;
(ii) an assessment of the
impact of the fellowship on the fellows;
(iii) an assessment of the
accomplishment of the purposes of the Program; and
(iv) an assessment of the
impact of each fellow on the community.
(1) ESTABLISHMENT- There
is established in the Treasury of the United States a fund to be known
as the `Congressional Hunger Fellows Trust Fund', consisting of--
(A) amounts appropriated
to the Fund under subsection (k);
(B) any amounts earned on
investment of amounts in the Fund under paragraph (2); and
(C) amounts received under
subsection (i)(3)(A).
(2) INVESTMENT OF AMOUNTS-
(i) AUTHORITY TO INVEST-
The Secretary of the Treasury shall invest such portion of the Fund as
is not, in the judgment of the Secretary of the Treasury, required to meet
current withdrawals.
(ii) TYPES OF INVESTMENTS-
Each investment may be made only in an interest-bearing obligation of the
United States or an obligation guaranteed as to principal and interest
by the United States that, as determined by the Secretary of the Treasury
in consultation with the Board, has a maturity suitable for the Fund.
(B) ACQUISITION OF OBLIGATIONS-
For the purpose of investments under subparagraph (A), obligations may
be acquired--
(i) on original issue at
the issue price; or
(ii) by purchase of outstanding
obligations at the market price.
(C) SALE OF OBLIGATIONS-
Any obligation acquired by the Fund may be sold by the Secretary of the
Treasury at the market price.
(D) CREDITS TO FUND- The
interest on, and the proceeds from the sale or redemption of, any obligations
held in the Fund shall be credited to and form a part of the Fund.
(3) TRANSFERS OF AMOUNTS-
(A) IN GENERAL- The amounts
required to be transferred to the Fund under this subsection shall be transferred
at least monthly from the general fund of the Treasury to the Fund on the
basis of estimates made by the Secretary of the Treasury.
(B) ADJUSTMENTS- Proper
adjustment shall be made in amounts subsequently transferred to the extent
prior estimates were in excess of or less than the amounts required to
be transferred.
(h) EXPENDITURES; AUDITS-
(1) IN GENERAL- The Secretary
of the Treasury shall transfer to the Program from the amounts described
in subsections (g)(2)(D) and (i)(3)(A) such sums as the Board determines
to be necessary to enable the Program to carry out this section.
(2) LIMITATION- The Secretary
may not transfer to the Program the amounts appropriated to the Fund under
subsection (k).
(3) USE OF FUNDS- Funds
transferred to the Program under paragraph (1) shall be used--
(A) to provide a living
allowance for the fellows;
(B) to defray the costs
of transportation of the fellows to the fellowship placement sites;
(C) to defray the costs
of appropriate insurance of the fellows, the Program, and the Board;
(D) to defray the costs
of preservice and midservice education and training of fellows;
(E) to pay staff described
in subsection (i);
(F) to make end-of-service
awards under subsection (f)(3)(D)(iii)(II); and
(G) for such other purposes
as the Board determines to be appropriate to carry out the Program.
(4) AUDIT BY COMPTROLLER
GENERAL-
(A) IN GENERAL- The Comptroller
General of the United States shall conduct an annual audit of the accounts
of the Program.
(B) BOOKS- The Program shall
make available to the Comptroller General all books, accounts, financial
records, reports, files, and other papers, things, or property belonging
to or in use by the Program and necessary to facilitate the audit.
(C) REPORT TO CONGRESS-
The Comptroller General shall submit to the appropriate congressional committees
a copy of the results of each audit under subparagraph (A).
(i) STAFF; POWERS OF PROGRAM-
(A) IN GENERAL- The Board
shall appoint an Executive Director of the Program who shall--
(i) administer the Program;
and
(ii) carry out such other
functions consistent with this section as the Board shall prescribe.
(B) RESTRICTION- The Executive
Director may not serve as Chairperson of the Board.
(C) COMPENSATION- The Executive
Director shall be paid at a rate not to exceed the rate payable for level
V of the Executive Schedule under section 5316 of title 5, United States
Code.
(A) IN GENERAL- With the
approval of a majority of the Board, the Executive Director may appoint
and fix the pay of such additional personnel as the Executive Director
considers necessary to carry out this section.
(B) COMPENSATION- An individual
appointed under subparagraph (A) shall be paid at a rate not to exceed
the rate payable for level GS-15 of the General Schedule.
(i) IN GENERAL- The Program
may solicit, accept, use, and dispose of gifts, bequests, or devises of
services or property, both real and personal, for the purpose of aiding
or facilitating the work of the Program.
(ii) USE OF GIFTS- Gifts,
bequests, or devises of money and proceeds from
sales of other property received
as gifts, bequests, or devises shall--
(I) be deposited in the
Fund; and
(II) be available for disbursement
on order of the Board.
(B) PROCUREMENT OF TEMPORARY
AND INTERMITTENT SERVICES- To carry out this section, the Program may procure
temporary and intermittent services in accordance with section 3109(b)
of title 5, United States Code, at rates for individuals that do not exceed
the daily equivalent of the annual rate of basic pay payable for level
GS-15 of the General Schedule.
(C) CONTRACT AUTHORITY-
To carry out this section, the Program may, with the approval of a majority
of the members of the Board, contract with and compensate Government and
private agencies or persons without regard to section 3709 of the Revised
Statutes (41 U.S.C. 5).
(D) OTHER NECESSARY EXPENDITURES-
(i) IN GENERAL- Subject
to clause (ii), the Program may make such other expenditures as the Program
considers necessary to carry out this section.
(ii) PROHIBITION- The Program
may not expend funds to develop new or expanded projects at which fellows
may be placed.
(j) REPORT- Not later than
December 31 of each year, the Board shall submit to the appropriate congressional
committees a report on the activities of the Program carried out during
the preceding fiscal year that includes--
(1) an analysis of the evaluations
conducted under subsection (f)(4) during the fiscal year; and
(A) the total amount of
funds attributable to gifts received by the Program in the fiscal year
under subsection (i)(3)(A); and
(B) the total amount of
funds described in subparagraph (A) that were expended to carry out the
Program in the fiscal year.
(k) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this section $18,000,000.
(l) EFFECTIVE DATE- This
section takes effect on October 1, 2002.
SEC. 455. EFFECTIVE DATE.
Except as otherwise provided
in this title, the amendments made by this title take effect on July 1,
2002, except that a State agency may, at the option of the State agency,
elect not to implement the amendments until October 1, 2002.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 501. DIRECT LOANS.
Section 302(b)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(b)(1)) is amended
by striking `operated' and inserting `participated in the business operations
of'.
SEC. 502. FINANCING OF BRIDGE
LOANS.
Section 303(a)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is amended--
(1) in subparagraph (C),
by striking `or' at the end;
(2) in subparagraph (D),
by striking the period at the end and inserting `; or'; and
(3) by adding at the end
the following:
`(E) refinancing, during
a fiscal year, a short-term, temporary bridge loan made by a commercial
or cooperative lender to a beginning farmer or rancher for the acquisition
of land for a farm or ranch, if--
`(i) the Secretary approved
an application for a direct farm ownership loan to the beginning farmer
or rancher for acquisition of the land; and
`(ii) funds for direct farm
ownership loans under section 346(b) were not available at the time at
which the application was approved.'.
SEC. 503. LIMITATIONS ON AMOUNT
OF FARM OWNERSHIP LOANS.
Section 305 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1925) is amended by striking subsection
(a) and inserting the following:
`(a) IN GENERAL- The Secretary
shall not make or insure a loan under section 302, 303, 304, 310D, or 310E
that would cause the unpaid indebtedness under those sections of any 1
borrower to exceed the lesser of--
`(1) the value of the farm
or other security; or
`(2)(A) in the case of a
loan made by the Secretary--
`(i) to a beginning farmer
or rancher, $250,000, as adjusted (beginning with fiscal year 2003) by
the inflation percentage applicable to the fiscal year in which the loan
is made; or
`(ii) to a borrower other
than a beginning farmer or rancher, $200,000; or
`(B) in the case of a loan
guaranteed by the Secretary, $700,000, as--
`(i) adjusted (beginning
with fiscal year 2000) by the inflation percentage applicable to the fiscal
year in which the loan is guaranteed; and
`(ii) reduced by the amount
of any unpaid indebtedness of the borrower on loans under subtitle B that
are guaranteed by the Secretary.'.
SEC. 504. JOINT FINANCING ARRANGEMENTS.
Section 307(a)(3)(D) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(D))
is amended--
(1) by striking `If' and
inserting the following:
`(i) IN GENERAL- Subject
to clause (ii), if'; and
(2) by adding at the end
the following:
`(ii) BEGINNING FARMERS
AND RANCHERS- The interest rate charged a beginning farmer or rancher for
a loan described in clause (i) shall be 50 basis points less than the rate
charged farmers and ranchers that are not beginning farmers or ranchers.'.
SEC. 505. GUARANTEE PERCENTAGE
FOR BEGINNING FARMERS AND RANCHERS.
Section 309(h)(6) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)(6)) is amended
by striking `GUARANTEED UP' and all that follows through `more than' and
inserting `GUARANTEED AT 95 PERCENT- The Secretary shall guarantee'.
SEC. 506. GUARANTEE OF LOANS
MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS.
Section 309 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1929) is amended by adding at
the end the following:
`(j) GUARANTEE OF LOANS
MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS- The Secretary may
guarantee under this title a loan made under a State beginning farmer or
rancher program, including a loan financed by the net proceeds of a qualified
small issue agricultural bond for land or property described in section
144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.'.
SEC. 507. DOWN PAYMENT LOAN
PROGRAM.
Section 310E of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1935) is amended--
(A) in paragraph (1), by
striking `30 percent' and inserting `40 percent'; and
(B) in paragraph (3), by
striking `10 years' and inserting `20 years'; and
(2) in subsection (c)(3)(B),
by striking `10-year' and inserting `20-year'.
SEC. 508. BEGINNING FARMER AND
RANCHER CONTRACT LAND SALES PROGRAM.
(a) IN GENERAL- Subtitle
A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et
seq.) is amended by adding at the end the following:
`SEC. 310F. BEGINNING FARMER
AND RANCHER CONTRACT LAND SALES PROGRAM.
`Not later than October
1, 2002, the Secretary may initiate a pilot program in not fewer than 10
geographically dispersed States, as determined by the Secretary, to guarantee
up to 5 loans per State in each of fiscal years 2003 through 2006 made
by a private seller of a farm or ranch to a qualified beginning farmer
or rancher on a contract land sale basis, if the loan meets applicable
underwriting criteria and a commercial lending institution agrees to serve
as escrow agent.'.
(b) REGULATIONS- The promulgation
of the regulations and administration of the amendment made by subsection
(a) 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').
Subtitle B--Operating Loans
SEC. 511. DIRECT LOANS.
Section 311(c)(1)(A) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)(1)(A))
is amended by striking `who has not' and all that follows through `5 years'.
SEC. 512. LOANS FOR TRIBAL FARM
OPERATIONS.
(a) GUARANTEE AMOUNT- Section
309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h))
is amended--
(1) in paragraph (4), by
striking `paragraphs (5) and (6)' and inserting `paragraphs (5), (6), and
(7)'; and
(2) by adding at the end
the following:
`(7) AMOUNT OF GUARANTEE
OF LOANS FOR TRIBAL OPERATIONS- In the case of an operating loan made to
a Native American farmer or rancher whose farm or ranch is within an Indian
reservation (as defined in section 335(e)(1)(A)(ii)), the Secretary shall
guarantee 95 percent of the loan.'.
(b) WAIVER OF LIMITATIONS-
Section 311(c) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1941(c)) is amended--
(1) in paragraph (1), by
striking `paragraph (3)' and inserting `paragraphs (3) and (4)'; and
(2) by adding at the end
the following:
`(4) WAIVER FOR LOANS FOR
TRIBAL OPERATIONS- The Secretary shall waive the limitation under paragraph
(1)(C) for a direct loan made under this subtitle to a Native American
farmer or rancher whose farm or ranch is within an Indian reservation (as
defined in section 335(e)(1)(A)(ii)) if the Secretary determines that commercial
credit is not generally available for such farm or ranch operations.'.
SEC. 513. REFINANCING OF OTHER
DEBT.
Section 312(a)(9)(B)(ii)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1942(a)(9)(B)(ii))
is amended by striking `debt' and inserting `nondelinquent debt'.
Subtitle C--Administrative Provisions
SEC. 521. ELIGIBILITY OF LIMITED
LIABILITY COMPANIES FOR FARM OWNERSHIP LOANS, FARM OPERATING LOANS, AND
EMERGENCY LOANS.
(a) IN GENERAL- Sections
302(a), 311(a), and 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1922(a), 1941(a), 1961(a)) are amended by striking `and joint
operations' each place it appears and inserting `joint operations, and
limited liability companies'.
(b) CONFORMING AMENDMENT-
Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)) is amended by striking `or joint operations' each place it appears
and inserting `joint operations, or limited liability companies'.
SEC. 522. DEBT SETTLEMENT.
Section 331(b)(4) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) is amended
by striking `carried out--' and all that follows through `(B) after' and
inserting `carried out after'.
SEC. 523. TEMPORARY AUTHORITY
TO ENTER INTO CONTRACTS; PRIVATE COLLECTION AGENCIES.
(a) IN GENERAL- Section
331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981)
is amended by striking subsections (d) and (e).
(b) APPLICATION- The amendment
made by subsection (a) shall not apply to a contract entered into before
the effective date of this Act.
SEC. 524. INTEREST RATE OPTIONS
FOR LOANS IN SERVICING.
Section 331B of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1981b) is amended--
(1) by striking `lower of
(1) the' and inserting the following: `lowest of--
(2) by striking `original
loan or (2) the' and inserting the following: `original loan;
`(2) the rate being charged
by the Secretary for loans, other than guaranteed loans, of the same type
at the time at which the borrower applies for a deferral, consolidation,
rescheduling, or reamortization; or
SEC. 525. ANNUAL REVIEW OF BORROWERS.
Section 333 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1983) is amended by striking paragraph
(2) and inserting the following:
`(2) except with respect
to a loan under section 306, 310B, or 314--
`(A) an annual review of
the credit history and business operation of the borrower; and
`(B) an annual review of
the continued eligibility of the borrower for the loan;'.
SEC. 526. SIMPLIFIED LOAN APPLICATIONS.
Section 333A(g)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1983a(g)(1)) is amended
by striking `of loans the principal amount of which is $50,000 or less'
and inserting `of farmer program loans the principal amount of which is
$100,000 or less'.
SEC. 527. INVENTORY PROPERTY.
Section 335(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1985(c)) is amended--
(A) in subparagraph (B)--
(i) in clause (i), by striking
`75 days' and inserting `135 days'; and
(ii) by adding at the end
the following:
`(iv) COMBINING AND DIVIDING
OF PROPERTY- To the maximum extent practicable, the Secretary shall maximize
the opportunity for beginning farmers and ranchers to purchase real property
acquired by the Secretary under this title by combining or dividing inventory
parcels of the property in such manner as the Secretary determines to be
appropriate.'; and
(B) in subparagraph (C)--
(i) by striking `75 days'
and inserting `135 days'; and
(ii) by striking `75-day
period' and inserting `135-day period';
(2) by striking paragraph
(2) and inserting the following:
`(2) PREVIOUS LEASE- In
the case of real property acquired before April 4, 1996, that the Secretary
leased before April 4, 1996, not later than 60 days after the lease expires,
the Secretary shall offer to sell the property in accordance with paragraph
(1).'; and
(A) in subparagraph (A),
by striking `subparagraph (B)' and inserting `subparagraphs (B) and (C)';
and
(B) by adding at the end
the following:
`(C) OFFER TO SELL OR GRANT
FOR FARMLAND PRESERVATION- For the purpose of farmland preservation, the
Secretary shall offer to sell or grant an easement, restriction, development
right, or similar legal right to real property to a State, a political
subdivision of a State, or a private nonprofit organization separately
from the underlying fee or other rights to the property owned by the United
States.'.
SEC. 528. DEFINITIONS.
(a) QUALIFIED BEGINNING
FARMER OR RANCHER- Section 343(a)(11)(F) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking `25 percent'
and inserting `30 percent'.
(b) DEBT FORGIVENESS- Section
343(a)(12) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(12)) is amended by striking subparagraph (B) and inserting the
following:
`(B) EXCEPTIONS- The term
`debt forgiveness' does not include--
`(i) consolidation, rescheduling,
reamortization, or deferral of a loan; or
`(ii) any write-down provided
as part of a resolution of a discrimination complaint against the Secretary.'.
SEC. 529. LOAN AUTHORIZATION
LEVELS.
Section 346 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1994) is amended--
(A) by striking paragraph
(1) and inserting the following:
`(1) IN GENERAL- The Secretary
may make or guarantee loans under subtitles A and B from the Agricultural
Credit Insurance Fund provided for in section 309 for not more than $3,750,000,000
for each of fiscal years 2002 through 2006, of which, for each fiscal year--
`(A) $750,000,000 shall
be for direct loans, of which--
`(i) $200,000,000 shall
be for farm ownership loans under subtitle A; and
`(ii) $550,000,000 shall
be for operating loans under subtitle B; and
`(B) $3,000,000,000 shall
be for guaranteed loans, of which--
`(i) $1,000,000,000 shall
be for guarantees of farm ownership loans under subtitle A; and
`(ii) $2,000,000,000 shall
be for guarantees of operating loans under subtitle B.'; and
(B) in paragraph (2)(A)(ii),
by striking `farmers and ranchers' and all that follows and inserting `farmers
and ranchers 35 percent for each of fiscal years 2002 through 2006.'; and
(2) in subsection (c), by
striking the last sentence.
SEC. 530. INTEREST RATE REDUCTION
PROGRAM.
Section 351 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1999) is amended--
(A) by striking `PROGRAM-
' and all that follows through `The Secretary' and inserting `PROGRAM-
The Secretary'; and
(B) by striking paragraph
(2);
(2) by striking subsection
(c) and inserting the following:
`(c) AMOUNT OF INTEREST
RATE REDUCTION-
`(1) IN GENERAL- In return
for a contract entered into by a lender under subsection (b) for the reduction
of the interest rate paid on a loan, the Secretary shall make payments
to the lender in an amount equal to not more than 100 percent of the cost
of reducing the annual rate of interest payable on the loan, except that
such payments shall not exceed the cost of reducing the rate by more than--
`(A) in the case of a borrower
other than a beginning farmer or rancher, 3 percent; and
`(B) in the case of a beginning
farmer or rancher, 4 percent.
`(2) BEGINNING FARMERS AND
RANCHERS- The percentage reduction of the interest rate for which payments
are authorized to be made for a beginning farmer or rancher under paragraph
(1) shall be 1 percent more than the percentage reduction for farmers and
ranchers that are not beginning farmers or ranchers.'; and
(3) in subsection (e), by
striking paragraph (2) and inserting the following:
`(2) MAXIMUM AMOUNT OF FUNDS-
`(A) IN GENERAL- The total
amount of funds used by the Secretary to carry out this section shall not
exceed $750,000,000.
`(B) BEGINNING FARMERS AND
RANCHERS-
`(i) IN GENERAL- The Secretary
shall reserve not less than 25 percent of the funds used by the Secretary
under subparagraph (A) to make payments for guaranteed loans made to beginning
farmers and ranchers.
`(ii) DURATION OF RESERVATION
OF FUNDS- Funds reserved for beginning farmers or ranchers under clause
(i) for a fiscal year shall be reserved only until April 1 of the fiscal
year.'.
SEC. 531. OPTIONS FOR SATISFACTION
OF OBLIGATION TO PAY RECAPTURE AMOUNT FOR SHARED APPRECIATION AGREEMENTS.
(a) IN GENERAL- Section
353(e)(7) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2001(e)(7)) is amended--
(1) in subparagraph (C),
by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively,
and adjusting the margins appropriately;
(2) by redesignating subparagraphs
(A) through (C) as clauses (i) through (iii), respectively, and adjusting
the margins appropriately;
(3) by striking the paragraph
heading and inserting the following:
`(7) OPTIONS FOR SATISFACTION
OF OBLIGATION TO PAY RECAPTURE AMOUNT-
`(A) IN GENERAL- As an alternative
to repaying the full recapture amount at the end of the term of the agreement
as determined by the Secretary in accordance with this section, a borrower
may satisfy the obligation to pay the amount of recapture by--
`(i) financing the recapture
payment in accordance with subparagraph (B); or
`(ii) with the approval
of the Secretary, granting the Secretary an agricultural use protection
and conservation easement on the property subject to the shared appreciation
agreement in accordance with subparagraph (C).
`(B) FINANCING OF RECAPTURE
PAYMENT- '; and
(4) by adding at the end
the following:
`(C) AGRICULTURAL USE PROTECTION
AND CONSERVATION EASEMENT-
`(i) IN GENERAL- Subject
to clause (iv), the Secretary may accept an agricultural use protection
and conservation easement from the borrower for all or part of the real
security property subject to the shared appreciation agreement in lieu
of payment of the recapture amount.
`(ii) VALUATION- The Secretary
shall reduce the amount of the recapture payment by the amount that is
equal to the value of the easement.
`(iii) TERM- The term of
an easement accepted by the Secretary under this subparagraph shall be
not less than 20 years.
`(iv) CONDITIONS- The easement
shall require that the property subject to the easement shall continue
to be used or conserved for agricultural and conservation uses in accordance
with sound farming and conservation practices, as determined by the Secretary.
`(v) REPLACEMENT OF METHOD
OF SATISFYING OBLIGATION- With the approval of the Secretary, a borrower
that has begun financing of a recapture payment under subparagraph (B)
may replace that financing with an agricultural use protection and conservation
easement under this subparagraph.'.
(b) APPLICABILITY- The amendments
made by subsection (a) shall not apply to a shared appreciation agreement
that terminated before the effective date of this title and for which the
recapture amount as of the effective date of this title--
(1) has been paid in full
by the borrower; or
SEC. 532. WAIVER OF BORROWER
TRAINING CERTIFICATION REQUIREMENT.
Section 359 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2006a) is amended by striking
subsection (f) and inserting the following:
`(1) IN GENERAL- The Secretary
may waive the requirements of this section for an individual borrower if
the Secretary determines that the borrower demonstrates adequate knowledge
in areas described in this section.
`(2) CRITERIA- The Secretary
shall establish criteria providing for the application of paragraph (1)
consistently in all counties nationwide.'.
SEC. 533. ANNUAL REVIEW OF BORROWERS.
Section 360(d)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2006b(d)(1)) is amended
by striking `biannual' and inserting `annual'.
Subtitle D--Farm Credit
SEC. 541. BOARD OF DIRECTORS
OF THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION.
Section 8.2(b) of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa-2(b)) is amended--
(A) by striking `15' and
inserting `17';
(B) in subparagraph (A),
by striking `common stock' and all that follows and inserting `Class A
voting common stock;';
(C) in subparagraph (B),
by striking `common stock' and all that follows and inserting `Class B
voting common stock;';
(D) by redesignating subparagraph
(C) as subparagraph (D); and
(E) by inserting after subparagraph
(B) the following:
`(C) 2 members shall be
elected by holders of Class A voting common stock and Class B voting common
stock, 1 of whom shall be the chief executive officer of the Corporation
and 1 of whom shall be another executive officer of the Corporation; and';
(2) in paragraph (3), by
striking `(2)(C)' and inserting `(2)(D)';
(A) in subparagraph (A),
by striking `(A) or (B)' and inserting `(A), (B), or (C)'; and
(B) in subparagraph (B),
by striking `(2)(C)' and inserting `(2)(D)';
(4) in paragraph (5)(A)--
(A) by inserting `executive
officers of the Corporation or' after `from among persons who are'; and
(B) by striking `such a
representative' and inserting `such an executive officer or representative';
(5) in paragraph (6)(B),
by striking `(A) and (B)' and inserting `(A), (B), and (C)';
(6) in paragraph (7), by
striking `8 members' and inserting `Nine members';
(A) in the paragraph heading,
by inserting `OR EXECUTIVE OFFICERS OF THE CORPORATION' after `EMPLOYEES';
and
(B) by inserting `or executive
officers of the Corporation' after `United States'; and
(8) by striking paragraph
(9) and inserting the following:
`(A) ELECTION- The permanent
board shall annually elect a chairperson from among the members of the
permanent board.
`(B) TERM- The term of the
chairperson shall coincide with the term served by elected members of the
permanent board under paragraph (6)(B).'.
Subtitle E--General Provisions
SEC. 551. INAPPLICABILITY OF
FINALITY RULE.
Section 281(a)(1) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7001(a)(1))
is amended--
(1) by striking `This subsection'
and inserting the following:
`(A) IN GENERAL- Except
as provided in subparagraph (B), this subsection'; and
(2) by adding at the end
the following:
`(B) AGRICULTURAL CREDIT
DECISIONS- This subsection shall not apply with respect to an agricultural
credit decision made by such a State, county, or area committee, or employee
of such a committee, under the Consolidated Farm and Rural Development
Act (7 U.S.C. 1921 et seq.).'.
SEC. 552. TECHNICAL AMENDMENTS.
(a) Section 321(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended
by striking `Disaster Relief and Emergency Assistance Act' each place it
appears and inserting `Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.)'.
(b) Section 336(b) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1986(b)) is amended
in the second sentence by striking `provided for in section 332 of this
title'.
(c) Section 359(c)(1) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 2006a(c)(1))
is amended by striking `established pursuant to section 332,'.
(d) Section 360(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2006b(a)) is amended
by striking `established pursuant to section 332'.
SEC. 553. EFFECT OF AMENDMENTS.
(a) IN GENERAL- Except as
otherwise specifically provided in this title and notwithstanding any other
provision of law, this title and the amendments made by this title shall
not affect the authority of the Secretary of Agriculture to carry out a
farm credit program for any of the 1996 through 2001 fiscal years under
a provision of law in effect immediately before the enactment of this Act.
(b) LIABILITY- A provision
of this title or an amendment made by this title shall not affect the liability
of any person under any provision of law as in effect immediately before
the enactment of this Act.
SEC. 554. EFFECTIVE DATE.
(a) IN GENERAL- Except as
provided in subsection (b), this title and the amendments made by this
title take effect on October 1, 2001.
(b) BOARD OF DIRECTORS OF
THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION- The amendments made by section
541 take effect on the date of enactment of this Act.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Rural America Empowerment
and Development
SEC. 601. FULL FUNDING OF PENDING
RURAL DEVELOPMENT LOAN AND GRANT APPLICATIONS.
(a) DEFINITION OF APPLICATION-
In this section, the term `application' does not include an application
for a loan, loan guarantee, or grant that, as of the date of
enactment of this Act, is in
the pre-application phase of consideration under regulations of the Secretary
of Agriculture in effect on the date of enactment of this Act.
(b) ACCOUNT- There is established
in the Treasury of the United States an account to be known as the `Rural
America Infrastructure Development Account' (referred to in this section
as the `Account') to fund rural development loans, loan guarantees, and
grants described in subsection (d) that are pending on the date of enactment
of this Act.
(1) PAYMENT- Not later than
30 days after the date of enactment of this Act, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury shall
transfer to the Account such sums as are necessary to carry out this section.
(2) ENTITLEMENT- The Secretary
of Agriculture--
(A) shall be entitled to
receive the funds transferred to the Account under paragraph (1);
(B) shall accept the funds;
and
(C) shall use the funds
to carry out this section.
(3) AVAILABILITY OF FUNDS-
Funds provided under this subsection shall remain available for obligation
until expended.
(1) ELIGIBLE PROGRAMS- Subject
to paragraph (2), the Secretary shall use the funds in the Account to provide
funds for applications that are pending on the date of enactment of this
Act for--
(A) community facility direct
loans under section 306(a)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(1));
(B) community facility grants
under paragraph (19), (20), or (21) of section 306(a) of that Act (7 U.S.C.
1926(a));
(C) water or waste disposal
grants or direct loans under paragraph (1) or (2) of section 306(a) of
that Act (7 U.S.C. 1926(a));
(D) rural water or wastewater
technical assistance and training grants under section 306(a)(14) of that
Act (7 U.S.C. 1926(a)(14));
(E) business and industry
guaranteed loans authorized under section 310B(a)(1) of that Act (7 U.S.C.
1932(a)(1)); and
(F) solid waste management
grants under section 310B(b) of that Act (7 U.S.C. 1932(b)).
(A) APPROPRIATED AMOUNTS-
Funds in the Account shall be available to the Secretary to provide funds
for pending applications for loans, loan guarantees, and grants described
in paragraph (1) only to the extent that funds for the loans, loan guarantees,
and grants appropriated in the annual appropriations Act for fiscal year
2002 have been exhausted.
(B) PROGRAM REQUIREMENTS-
The Secretary may use the Account to provide funds for a pending application
for a loan, loan guarantee, or grant described in paragraph (1) only if
the Secretary processes, reviews, and approves the application in accordance
with regulations in effect on the date of enactment of this Act.
SEC. 602. BROADBAND ACCESS FOR
RURAL AMERICA.
The Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.) is amended by adding at the end the
following:
`TITLE VI--RURAL BROADBAND ACCESS
`SEC. 601. DEFINITIONS.
`(1) BROADBAND SERVICE-
The term `broadband service' means telecommunications service (including
service provided over copper wire, fiber, wireless, cable, or satellite)
capable of delivering large quantities of data to and from a customer at
the greater of--
`(A) a minimum speed of
200 kilobits per second; or
`(B) an alternative minimum
speed considered by the Federal Communications Commission as broadband.
`(2) ELIGIBLE ENTITY- The
term `eligible entity' means 1 or more of the following entities capable
of providing, or proposing to provide, broadband service in a rural area:
`(A) An institution of higher
education.
`(D) An Indian tribe (as
defined in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b)).
`(E) A limited dividend
or mutual association that is incorporated or is a limited liability company.
`(F) A nonprofit organization.
`(G) A State or local government.
`(H) Other public entity.
`(3) RURAL AREA- The term
`rural area' means any area of a State that--
`(A) is outside a metropolitan
statistical area designated by the Director of the Office of Management
and Budget; and
`(B) is not included within
the boundaries of any incorporated or unincorporated city, village, or
borough having a population in excess of 25,000 inhabitants.
`(4) STATE- The term `State'
means any of the States, the Commonwealth of Puerto Rico, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated
States of Micronesia, the Republic of the Marshall Islands, the Republic
of Palau, and the Virgin Islands of the United States.
`SEC. 602. LOANS.
`(a) IN GENERAL- To the
extent qualified applications are available for the loans, the Secretary
may make loans to eligible entities to provide or improve broadband services
in rural areas where the Secretary determines the services are not adequate.
`(b) INTEREST RATE- The
interest rate charged for a loan under this section shall--
`(1) be determined by the
Secretary; and
`(2) reflect the current
cost of funds to the Department of the Treasury for obligations of comparable
maturity to the remaining term of the loan.
`(c) REPAYMENT- No loan
may be made under this section unless the Secretary--
`(1) is reasonably certain
that the borrower will be able to repay the loan; and
`(2) determines that the
borrower has provided security for the loan that is adequate to assure
repayment of the loan.
`(1) IN GENERAL- The Secretary
shall prescribe the terms and conditions for loans made under this section.
`(2) LENGTH OF LOANS- The
term of a loan shall not exceed the useful life of the assets, as a whole,
financed by the loan.
`SEC. 603. GRANTS.
`(a) IN GENERAL- To the
extent qualified applications are available for the loans, the Secretary
may make grants to eligible entities to provide or improve broadband services
in remote rural areas that the Secretary determines are not receiving broadband
services.
`(b) DURATION- To be eligible
to obtain a grant under this section, an applicant for the grant shall
demonstrate to the Secretary that the project financed by the grant will
be sustained for a reasonable period, as determined by the Secretary.
`(c) RESTRICTION- The Secretary
may not make both a loan under section 602, and a grant under this section,
to finance the same project.
`(d) APPROVAL OF GRANT APPLICATIONS-
In approving applications for grants under this section, the Secretary
shall consider--
`(1) the need for the broadband
services to be provided and the benefits from the services;
`(2) the economic need of
the rural area to be served; and
`(3) other factors determined
appropriate by the Secretary.
`SEC. 604. PLANNING GRANTS FOR
ENHANCING ACCESS TO BROADBAND SERVICE.
`(a) IN GENERAL- The Secretary
may make grants, on a competitive basis to States, local governments, and
community or regional entities engaged in activities and partnerships between
public and private entities that are designed to develop business plans,
to be completed in not more than 3 years, for bringing broadband service
to rural areas in the most appropriate technological manner practicable.
`(b) MATCHING REQUIREMENT-
As a condition of receiving a grant under this section, a recipient of
a grant shall provide a matching contribution from non-Federal sources
that is equal to the amount of the grant.
`(c) ADMINISTRATIVE COSTS-
The Secretary may use not more than 4 percent of the funds made available
for grants for a fiscal year under this section for administrative costs
incurred by the Secretary in carrying out this section.
`(d) BUILDINGS AND FACILITIES-
Funds made available for grants under this section may not be used for--
`(1) the construction of
a new building or facility;
`(2) the acquisition or
improvement of an existing building or facility; or
`(3) the leasing of office
space.
`SEC. 605. SURVEY OF BROADBAND
ACCESS NEEDS.
`(a) IN GENERAL- Out of
appropriations made available to agencies in the rural development mission
area of the Department of Agriculture, the Secretary shall carry out a
survey of State economic development agencies to determine the broadband
service needs of current and prospective businesses located in, or prospectively
locating to, rural areas.
`(b) REPORT- Not later than
1 year after the date of enactment of this title, the Secretary shall submit
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report
on the results of the survey.
`(c) EXEMPTION- The Secretary
shall carry out the survey required by this section without regard to chapter
35 of title 44, United States Code (commonly known as the `Paperwork Reduction
Act of 1995').
`SEC. 606. CONSULTATION.
`In carrying out this title,
the Secretary is encouraged to consult with--
`(1) the Federal Communications
Commission;
`(2) the Secretary of Commerce;
and
`(3) the National Academy
of Sciences.
`SEC. 607. AUTHORIZATION OF
APPROPRIATIONS.
`There are authorized to
be appropriated such sums as are necessary to carry out this title.'.
SEC. 603. VALUE-ADDED AGRICULTURAL
PRODUCT MARKET DEVELOPMENT GRANTS.
Section 231 of the Agriculture
Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is
amended--
(1) by redesignating subsections
(a) through (d) as subsections (b) through (e), respectively;
(2) by inserting after the
section heading the following:
`(a) DEFINITION OF VALUE-ADDED
AGRICULTURAL PRODUCT- In this section, the term `value-added agricultural
product' means any agricultural commodity or product that has been subject
to a greater level of processing that--
`(1) expands the market
for the agricultural commodity or product; and
`(2) results in a greater
portion of the revenue derived from the processing of the agricultural
commodity or product being made available to the initial producer of the
agricultural commodity or product.';
(3) in subsection (b) (as
so redesignated)--
(i) by striking `Of the'
and all that follows through `Secretary to' and inserting `The Secretary
may'; and
(ii) by striking `value-added
agricultural commodities and products of agricultural commodities' and
inserting `value-added agricultural products'; and
(iii) in subparagraph (A),
by striking `value-added agricultural commodity or product of an agricultural
commodity' and inserting `value-added agricultural product';
(B) in paragraph (3)(A),
by striking `value-added agricultural commodity or product of an agricultural
commodity' and inserting `value-added agricultural product'; and
(C) by adding at the end
the following:
`(4) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this subsection $50,000,000
for each of fiscal years 2003 through 2006.';
(4) in subsection (c)(1)
(as so redesignated)--
(A) by striking `subsection
(a)(2)' and inserting `subsection (b)(2)';
(B) by striking `subsection
(a)' and inserting `subsection (b)'; and
(C) in subparagraph (A),
by striking `value-added agricultural commodities and products of agricultural
commodities' and inserting `value-added agricultural products'; and
(5) in subsection (d) (as
so redesignated), by striking `subsection (a) or (b)' and inserting `subsection
(b) or (c)'.
SEC. 604. NATIONAL RURAL DEVELOPMENT
INFORMATION CLEARINGHOUSE.
Section 2381 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3125b) is amended
to read as follows:
`SEC. 2381. NATIONAL RURAL DEVELOPMENT
INFORMATION CLEARINGHOUSE.
`(a) ESTABLISHMENT- The
Secretary shall establish and maintain, within the rural development mission
area of the Department of Agriculture, a National Rural Development Information
Clearinghouse (referred to in this section as the `Clearinghouse') to perform
the functions specified in subsection (b).
`(b) FUNCTIONS- The Clearinghouse
shall collect information and data from, and disseminate information and
data to, any person or public or private entity about programs and services
provided by Federal, State, local, and tribal agencies, institutions of
higher education, and private, for-profit and nonprofit organizations and
institutions under which a person or public or private entity residing
or operating in a rural area may be eligible for any kind of financial,
technical, or other assistance, including business, venture capital, economic,
credit and community development assistance, health care, job training,
education, and emotional and financial counseling.
`(c) MODES OF COLLECTION
AND DISSEMINATION OF INFORMATION- In addition to other modes for the collection
and dissemination of the types of information and data specified under
subsection (b), the Secretary shall ensure that the Clearinghouse maintains
an Internet website that provides for dissemination and collection, through
voluntary submission or posting, of the information and data.
`(d) FEDERAL AGENCIES- On
request of the Secretary and to the extent permitted by law, the head of
a Federal agency shall provide to the Clearinghouse such information as
the Secretary may request to enable the Clearinghouse to carry out this
section.
`(e) STATE, LOCAL, AND TRIBAL
AGENCIES, INSTITUTIONS OF HIGHER EDUCATION, AND NONPROFIT AND FOR-PROFIT
ORGANIZATIONS- The Secretary shall request State, local, and tribal governments,
institutions of higher education, and nonprofit and for-profit organizations
and institutions to provide to the Clearinghouse information concerning
applicable programs or services described in subsection (b).
`(f) PROMOTION OF CLEARINGHOUSE-
The Secretary prominently shall promote the existence and availability
of the Clearinghouse in all activities of the Department of Agriculture
relating to rural areas of the United States.
`(1) IN GENERAL- Subject
to paragraph (2), the Secretary shall use to operate and maintain the Clearinghouse
not more than $600,000 of the funds available to the Rural Housing Service,
the Rural Utilities Service, and the Rural Business-Cooperative Service
for each fiscal year.
`(2) LIMITATION- Funds available
to the Rural Housing Service, the Rural Utilities Service, and the Rural
Business-Cooperative Service for the payment of loan costs (as defined
in section 502 of Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) shall
not be used to operate and maintain the Clearinghouse.'.
SEC. 605. WHITE HOUSE CONFERENCE
ON RURAL AMERICA.
(a) IN GENERAL- The President
may call and conduct a White House Conference on Rural America (referred
to in this section as the `Conference') which shall be held not earlier
than November 1, 2002, and not later than October 30, 2004.
(b) PURPOSE- The purpose
of the Conference shall be to bring together the resources of governmental
agencies and the private and nonprofit sectors to develop policy recommendations
and integrative strategies for addressing the unique challenges facing
rural areas of the United States.
(1) IN GENERAL- The Conference
shall be comprised of--
(A) representatives of organizations
devoted to rural development;
(C) representatives of the
Department of Agriculture and other Federal agencies;
(D) State, local, and tribal
elected officials and representatives;
(E) representatives of land-grant
colleges and universities, State and tribal extension services, and State
rural development councils; and
(F) individuals with special
knowledge of and expertise in rural and community development, cooperative
business, agricultural credit,
venture capital, health care,
and rural demography.
(2) SELECTION- Of the participants
in the Conference described in paragraph (1)--
(A) 1/3 of the members shall
be selected by the President;
(B) 1/3 of the members shall
be selected by the Chairman and the ranking member of the Committee of
the Committee on Agriculture of the House of Representatives; and
(C) 1/3 of the members shall
be selected by the Chairman and the ranking member of the Committee of
the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(3) REPRESENTATION- In selecting
the participants of the Conference, the President and the Chairman of each
Committee referred to in paragraph (2) shall ensure, to the maximum extent
practicable, that the participants are representative of the ethnic, racial,
and linguistic diversity of rural areas of the United States.
(1) REPORT TO PRESIDENT-
Not later than 120 days after the termination of the Conference, the Conference
shall submit to the President a report that contains the findings and recommendations
of the Conference.
(2) REPORT MADE PUBLIC AND
TO CONGRESS- Not later than 90 days after receipt by the President, the
President shall--
(A) make the report public;
and
(B) transmit to the Committee
on Agriculture of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a copy of the report and a statement
of the President containing recommendations for implementing the report.
(3) PUBLICATION AND DISTRIBUTION-
(A) IN GENERAL- The Conference
may publish and distribute the report described in paragraph (1).
(B) MANDATORY DISTRIBUTION-
The Conference shall provide a copy of a report published under subparagraph
(A), at no cost to--
(i) each Federal depository
library; and
(I) each State, tribal,
and local elected official in a rural area of the United States; and
(II) each State rural development
council.
(1) PAYMENT- Not later than
30 days after the date of enactment of this Act, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury shall
transfer $2,000,000 to the President to carry out this section.
(2) ENTITLEMENT- The President--
(A) shall be entitled to
receive the funds transferred under paragraph (1);
(B) shall accept the funds;
and
(C) shall use the funds
to carry out this section.
(3) AVAILABILITY OF FUNDS-
Funds provided under this subsection shall remain available for obligation
until expended.
SEC. 606. BIOENERGY AND BIOCHEMICAL
PROJECTS.
(a) RURAL DEVELOPMENT- Subtitle
D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et
seq.) is amended by adding at the end the following:
`SEC. 376. BIOENERGY AND BIOCHEMICAL
PROJECTS.
`In carrying out rural development
loan, loan guarantee, and grant programs under this title, the Secretary
shall provide a priority for bioenergy and biochemical projects.'.
(b) RURAL UTILITIES- Title
I of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended
by adding at the end the following:
`SEC. 20. BIOENERGY AND BIOCHEMICAL
PROJECTS.
`In carrying out rural electric
loan, loan guarantee, and grant programs under this Act, the Secretary
shall provide a priority for bioenergy and biochemical projects.'.
Subtitle B--National Rural Development
Partnership
SEC. 611. SHORT TITLE.
This subtitle may be cited
as the `National Rural Development Partnership Act of 2001'.
SEC. 612. NATIONAL RURAL DEVELOPMENT
PARTNERSHIP.
Subtitle E of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009 et seq.) is amended by adding
at the end the following:
`SEC. 381P. NATIONAL RURAL DEVELOPMENT
PARTNERSHIP.
`(a) DEFINITIONS- In this
section:
`(1) AGENCY WITH RURAL RESPONSIBILITIES-
The term `agency with rural responsibilities' means any executive agency
(as defined in section 105 of title 5, United States Code) that--
`(A) implements Federal
law targeted at rural areas, including--
`(i) the Act of April 24,
1950 (commonly known as the `Granger-Thye Act') (64 Stat. 82, chapter 9);
`(ii) the Intergovernmental
Cooperation Act of 1968 (82 Stat. 1098);
`(iii) section 41742 of
title 49, United States Code;
`(iv) the Rural Development
Act of 1972 (86 Stat. 657);
`(v) the Rural Development
Policy Act of 1980 (94 Stat. 1171);
`(vi) the Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.);
`(vii) amendments made to
section 334 of the Public Health Service Act (42 U.S.C. 254g) by the Rural
Health Clinics Act of 1983 (97 Stat. 1345); and
`(viii) the Rural Housing
Amendments of 1983 (97 Stat. 1240) and the amendments made by the Rural
Housing Amendments of 1983 to title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.); or
`(B) administers a program
that has a significant impact on rural areas, including--
`(i) the Appalachian Regional
Commission;
`(ii) the Department of
Agriculture;
`(iii) the Department of
Commerce;
`(iv) the Department of
Defense;
`(v) the Department of Education;
`(vi) the Department of
Energy;
`(vii) the Department of
Health and Human Services;
`(viii) the Department of
Housing and Urban Development;
`(ix) the Department of
the Interior;
`(x) the Department of Justice;
`(xi) the Department of
Labor;
`(xii) the Department of
Transportation;
`(xiii) the Department of
the Treasury;
`(xiv) the Department of
Veterans Affairs;
`(xv) the Environmental
Protection Agency;
`(xvi) the Federal Emergency
Management Administration;
`(xvii) the Small Business
Administration;
`(xviii) the Social Security
Administration;
`(xix) the Federal Reserve
System;
`(xx) the United States
Postal Service;
`(xxi) the Corporation for
National Service;
`(xxii) the National Endowment
for the Arts and the National Endowment for the Humanities; and
`(xxiii) other agencies,
commissions, and corporations.
`(2) COORDINATING COMMITTEE-
The term `Coordinating Committee' means the National Rural Development
Coordinating Committee established by subsection (c).
`(3) PARTNERSHIP- The term
`Partnership' means the National Rural Development Partnership established
by subsection (b).
`(4) RURAL AREA- The term
`rural area' means--
`(A) all the territory of
a State that is not within the boundary of any standard metropolitan statistical
area designated by the Director of the Office of Management and Budget;
`(B) all territory within
any standard metropolitan statistical area described in subparagraph (A)
within a census tract having a population density of less than 20 persons
per square mile, as determined by the Secretary according to the most recent
census of the United States as of any date; and
`(C) such areas as a State
rural development council may identify as rural.
`(5) STATE RURAL DEVELOPMENT
COUNCIL- The term `State rural development council' means a State rural
development council that meets the requirements of subsection (d).
`(1) IN GENERAL- The Secretary
shall continue the National Rural Development Partnership composed of--
`(A) the Coordinating Committee;
and
`(B) State rural development
councils.
`(2) PURPOSES- The purposes
of the Partnership are--
`(A) to empower and build
the capacity of States and rural communities within States to design unique
responses to their own special rural development needs, with local determinations
of progress and selection of projects and activities;
`(B) to encourage participants
to be flexible and innovative in establishing new partnerships and trying
fresh, new approaches to rural development issues, with responses to rural
development that use different approaches to fit different situations;
and
`(C) to encourage all partners
in the Partnership (Federal, State, local, and tribal governments, the
private sector, and nonprofit organizations) to be fully engaged and share
equally in decisions.
`(A) IN GENERAL- A panel
consisting of representatives of the Coordinating Committee and State rural
development councils shall be established to lead and coordinate the strategic
operation, policies, and practices of the Partnership.
`(B) ANNUAL REPORTS- In
conjunction with the Coordinating Committee and State rural development
councils, the panel shall prepare and submit to Congress an annual report
on the activities of the Partnership.
`(4) ROLE OF FEDERAL GOVERNMENT-
The role of the Federal Government in the Partnership shall be that of
a partner and facilitator, with Federal agencies authorized--
`(A) to cooperate with States
to implement the Partnership;
`(B) to provide States with
the technical and administrative support necessary to plan and implement
tailored rural development strategies to meet local needs;
`(C) to ensure that the
head of each agency referred to in subsection (a)(1)(B) designates a senior-level
agency official to represent the agency on the Coordinating Committee and
directs appropriate field staff to participate fully with the State rural
development council within the jurisdiction of the field staff; and
`(D) to enter into cooperative
agreements with, and to provide grants and other assistance to State rural
development councils.
`(5) ROLE OF PRIVATE AND
NONPROFIT SECTOR ORGANIZATIONS- Private and nonprofit sector organizations
are encouraged--
`(A) to act as full partners
in the Partnership and State rural development councils; and
`(B) to cooperate with participating
government organizations in developing innovative approaches to the solution
of rural development problems.
`(c) NATIONAL RURAL DEVELOPMENT
COORDINATING COMMITTEE-
`(1) ESTABLISHMENT- The
Secretary shall establish a National Rural Development Coordinating Committee.
`(2) COMPOSITION- The Coordinating
Committee shall be composed of--
`(A) 1 representative of
each agency with rural responsibilities that elects to participate in the
Coordinating Committee; and
`(B) representatives, approved
by the Secretary, of--
`(i) national associations
of State, regional, local, and tribal governments and intergovernmental
and multijurisdictional agencies and organizations;
`(ii) national public interest
groups;
`(iii) other national nonprofit
organizations that elect to participate in the activities of the Coordinating
Committee; and
`(iv) the private sector.
`(3) DUTIES- The Coordinating
Committee shall--
`(A) provide support for
the work of the State rural development councils;
`(B) facilitate coordination
among Federal programs and activities, and with State, local, tribal, and
private programs and activities, affecting rural development;
`(C) enhance the effectiveness,
responsiveness, and delivery of Federal programs in rural areas;
`(D) gather and provide
to Federal authorities information and input for the development and implementation
of Federal programs impacting rural economic and community development;
`(E) review and comment
on policies, regulations, and proposed legislation that affect or would
affect rural areas;
`(F) provide technical assistance
to State rural development councils for the implementation of Federal programs;
and
`(G) develop and facilitate
strategies to reduce or eliminate administrative and regulatory impediments.
`(4) ELECTION NOT TO PARTICIPATE-
An agency with rural responsibilities that elects not to participate in
the Partnership and the Coordinating Committee shall submit to Congress
a report that describes--
`(A) how the programmatic
responsibilities of the Federal agency that target or have an impact on
rural areas are better achieved without participation by the agency in
the Partnership; and
`(B) a more effective means
of partnership-building and collaboration to achieve the programmatic responsibilities
of the agency.
`(d) STATE RURAL DEVELOPMENT
COUNCILS-
`(1) ESTABLISHMENT- Notwithstanding
chapter 63 of title 31, United States Code, each State may elect to participate
in the Partnership by entering into an agreement with the Secretary to
establish a State rural development council.
`(2) STATE DIVERSITY- Each
State rural development council shall--
`(A) have a nonpartisan
membership that is broad and representative of the economic, social, and
political diversity of the State; and
`(B) carry out programs
and activities in a manner that reflects the diversity of the State.
`(3) DUTIES- A State rural
development council shall--
`(A) facilitate collaboration
among Federal, State, local, and tribal governments and the private and
nonprofit sectors in the planning and implementation of programs and policies
that target or have an impact on rural areas of the State;
`(B) enhance the effectiveness,
responsiveness, and delivery of Federal and State programs in rural areas
of the State;
`(C) gather and provide
to the Coordinating Committee and other appropriate organizations information
on the condition of rural areas in the State;
`(D) monitor and report
on policies and programs that address, or fail to address, the needs of
the rural areas of the State;
`(E) facilitate the formulation
of local needs assessments for the rural areas of the State and participate
in the development of criteria for the distribution of Federal funds to
the rural areas of the State;
`(F) provide comments to
the Coordinating Committee and other appropriate organizations on policies,
regulations, and proposed legislation that affect or would affect the rural
areas of the State;
`(G) in conjunction with
the Coordinating Committee, facilitate the development of strategies to
reduce or eliminate conflicting or duplicative administrative or regulatory
requirements of Federal, State, local, and tribal governments;
`(H) use grant or cooperative
agreement funds provided by the Partnership under an agreement entered
into under paragraph (1) to--
`(i) retain an Executive
Director and such support staff as are necessary to facilitate and implement
the directives of the State rural development council; and
`(ii) pay expenses associated
with carrying out subparagraphs (A) through (G); and
`(I)(i) provide to the Coordinating
Committee an annual plan with goals and performance measures; and
`(ii) submit to the Coordinating
Committee an annual report on the progress of the State rural development
council in meeting the goals and measures.
`(4) AUTHORITIES- A State
rural development council may--
`(A) solicit funds to supplement
and match funds provided under paragraph (3)(H); and
`(B) engage in activities,
in addition to those specified in paragraph (3), appropriate to accomplish
the purposes for which the State rural development council is established.
`(5) COMMENTS OR RECOMMENDATIONS-
`(A) IN GENERAL- A State
rural development council may provide comments and recommendations to an
agency with rural responsibilities related to the activities of the State
rural development council within the State.
`(B) AGENCY- The agency
with rural responsibilities shall provide to the State rural development
council a written response to the comments or recommendations.
`(6) ACTIONS OF STATE RURAL
DEVELOPMENT COUNCIL MEMBERS- When carrying out a program or activity authorized
by a State rural development council or this subtitle, a member of the
council shall be regarded as a full-time employee of the Federal Government
for purposes of chapter 171 of title 28, United States Code, and the Federal
Advisory Committee Act (5 U.S.C. App.).
`(7) FEDERAL PARTICIPATION
IN STATE RURAL DEVELOPMENT COUNCILS-
`(A) IN GENERAL- Subject
to subparagraph (B), a Federal employee may participate in a State rural
development council.
`(B) CONFLICTS- A Federal
employee who participates in a State rural development council shall not
participate in the making of any council decision if the agency represented
by the Federal employee has any financial or other interest in the outcome
of the decision.
`(C) FEDERAL GUIDANCE- The
Office of Government Ethics, in consultation with the Attorney General,
shall issue guidance to all Federal employees that participate in State
rural development councils that describes specific decisions that--
`(i) would constitute a
conflict of interest for the Federal employee; and
`(ii) from which the Federal
employee must recuse himself or herself.
`(8) PERFORMANCE EVALUATIONS-
In conducting a performance evaluation of an employee of an agency with
rural responsibilities, the agency may consider any comments submitted
by a State rural development council.
`(e) ADMINISTRATIVE SUPPORT
OF THE PARTNERSHIP-
`(1) DETAIL OF EMPLOYEES-
`(A) IN GENERAL- In order
to provide experience in intergovernmental collaboration, the head of an
agency with rural responsibilities that elects to participate in the Partnership
may, and is encouraged to, detail an employee of the agency with rural
responsibilities to the Partnership without reimbursement for a period
of up to 12 months.
`(B) CIVIL SERVICE STATUS-
The detail shall be without interruption or loss of civil service status
or privilege.
`(2) ADDITIONAL SUPPORT-
The Secretary shall provide for any additional support staff to the Partnership
as the Secretary determines to be necessary to carry out the duties of
the Partnership.
`(1) AUTHORIZATION OF APPROPRIATIONS-
`(A) IN GENERAL- There are
authorized to be appropriated such sums as are necessary to carry out this
section.
`(B) FUNDING FORMULA- In
the case of general financial support provided by the Federal Government
to all State rural development councils, such support shall be, to the
maximum extent practicable, uniform in amount.
`(A) IN GENERAL- Notwithstanding
any other provision of law limiting the ability of an agency to provide
funds to the Partnership with other agencies, in order to carry out the
purposes described in subsection (b)(3), the Partnership shall be eligible
to receive grants, gifts, contributions, or technical assistance from,
or enter into contracts with, any Federal agency.
`(B) ASSISTANCE- Federal
agencies are encouraged to use funds made available for programs that target
or have an impact on rural areas to provide assistance to, and enter into
contracts with, the Partnership, as described in subparagraph (A).
`(3) CONTRIBUTIONS- The
Partnership may accept private contributions.
`(g) MATCHING REQUIREMENTS
FOR STATE RURAL DEVELOPMENT COUNCILS- A State rural development council
shall provide matching funds, or in-kind goods or services, to support
the activities of the State rural development council in an amount determined
by the Secretary that is not less than 33 percent of the amount of Federal
funds received under an agreement under subsection (d)(1).
`(h) TERMINATION- The authority
provided under this section shall terminate on the date that is 5 years
after the date of enactment of this section.'.
Subtitle C--Consolidated Farm
and Rural Development Act
SEC. 621. WATER OR WASTE DISPOSAL
GRANTS.
Section 306(a)(2) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended
in the first sentence by striking `$590,000,000' and inserting `$1,500,000,000'.
SEC. 622. RURAL BUSINESS OPPORTUNITY
GRANTS.
Section 306(a)(11)(D) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(11)(D))
is amended by striking `2002' and inserting `2006'.
SEC. 623. RURAL WATER AND WASTEWATER
CIRCUIT RIDER PROGRAM.
Section 306(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by added at
the end the following:
`(22) RURAL WATER AND WASTEWATER
CIRCUIT RIDER PROGRAM-
`(A) IN GENERAL- The Secretary
shall establish a national rural water and wastewater circuit rider program
that is based on the rural water circuit rider program of the National
Rural Water Association that (as of the date of enactment of this paragraph)
receives funding
from the Secretary, acting through
the Rural Utilities Service.
`(B) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this paragraph $15,000,000
for each of fiscal years 2003 through 2006.'.
SEC. 624. RURAL DEVELOPMENT
ASSISTANCE ORGANIZATIONS.
Section 306(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)) (as amended by section
623) is amended by added at the end the following:
`(23) RURAL DEVELOPMENT
ASSISTANCE ORGANIZATIONS-
`(A) DEFINITION OF RURAL
AREA- In this paragraph, the term `rural area' has the meaning given the
term in section 381P.
`(B) GRANTS- The Secretary
shall provide grants to certified organizations to pay the Federal share
of the cost of providing technical assistance in 1 or more rural development
fields to eligible entities.
`(C) CERTIFIED ORGANIZATIONS-
`(i) IN GENERAL- To be certified
by the Secretary to provide technical assistance in 1 or more rural development
fields, an organization shall--
`(I) be a nonprofit organization
(which may include an institution of higher education) with experience
in providing technical assistance in the applicable rural development field;
`(II) develop a plan, approved
by the Secretary, describing the manner in which grant funds will be used
and the source of non-Federal funds; and
`(III) meet such other criteria
as the Secretary may establish, based on the needs of eligible entities
for the technical assistance.
`(iii) LIST- The Secretary
shall make a list of certified organizations available to the public.
`(D) PRIORITY- In determining
which certified organizations will receive a grant under this paragraph,
the Secretary shall provide a priority to a certified organization that--
`(i) serves a rural area
that, during the most recent 5-year period--
`(I) had a net out-migration
of inhabitants, or other population loss, from the rural area that equals
or exceeds 5 percent of the population of the rural area; or
`(II) had a median household
income that is less than the nonmetropolitan median household income of
the United States; and
`(ii) has a history of providing
substantive assistance to local governments and economic development organizations.
`(E) ELIGIBLE ENTITIES-
To receive technical assistance from a certified organization under this
paragraph, an entity shall--
`(II) an Indian tribe (as
defined in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b));
`(III) a local government;
`(IV) an economic development
organization; and
`(ii) serve a population,
at least 25 percent of which is located in a rural area.
`(F) USES OF GRANTS- A certified
organization shall use a grant provided under this paragraph to improve
the capability of an eligible entity to assist communities in rural areas--
`(i) to develop and implement
economic development strategies;
`(ii) to perform analyses
of infrastructure needs; and
`(iii) to provide assistance
to local governments and individuals concerning the availability of economic
assistance from any source.
`(G) MAXIMUM AMOUNT OF GRANTS-
The amount of a grant provided to a certified organization under this paragraph
shall not exceed $100,000.
`(i) IN GENERAL- Except
as provided in clause (ii), the Federal share of a grant provided under
this paragraph shall be not more than 75 percent of the cost incurred by
a certified organization to provide technical assistance to an eligible
entity.
`(ii) REDUCTION OR WAIVER
OF NON-FEDERAL SHARE- In response to information provided by a certified
organization, the Secretary may reduce or waive the non-Federal share required
under this paragraph for reasons of hardship or to further the purposes
of this paragraph.
`(I) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this paragraph $30,000,000
for each of fiscal years 2003 through 2006.'.
SEC. 625. EMERGENCY COMMUNITY
WATER ASSISTANCE GRANT PROGRAM.
Section 306A(i) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926a(i)) is amended by striking
`2002' and inserting `2006'.
SEC. 626. WATER AND WASTE FACILITY
GRANTS FOR NATIVE AMERICAN TRIBES.
Section 306C of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926c(e)) is amended by striking
subsection (e) and inserting the following:
`(e) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- Subject
to paragraph (2), there is authorized to be appropriated--
`(A) for grants under this
section, $30,000,000 for each fiscal year;
`(B) for loans under this
section, $30,000,000 for each fiscal year; and
`(C) for grants under this
section to benefit Indian tribes (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b)), $20,000,000
for each fiscal year.
`(2) EXCEPTION- An entity
eligible to receive funding through a grant made under section 306D shall
not be eligible for a grant from funds made available under subparagraph
(1)(C).'.
SEC. 627. WATER SYSTEMS FOR
RURAL AND NATIVE VILLAGES IN ALASKA.
Section 306D(d)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended
by striking `and 2002' and inserting `through 2006'.
SEC. 628. RURAL COOPERATIVE
DEVELOPMENT GRANTS.
Section 310B(e)(9) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)(9)) is amended
by striking `2002' and inserting `2006'.
SEC. 629. VALUE-ADDED INTERMEDIARY
RELENDING PROGRAM.
Section 310B of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding at
the end the following:
`(h) VALUE-ADDED INTERMEDIARY
RELENDING PROGRAM-
`(1) IN GENERAL- In accordance
with this subsection, the Secretary shall make loans under the intermediary
relending program established under section 1323(b)(2)(C) of the Food Security
Act of 1985 (7 U.S.C. 1932 note; Public Law 99-198).
`(2) LOANS- Using funds
made available to carry out this subsection, the Secretary shall make loans
to eligible intermediaries to make loans to ultimate recipients, under
the terms and conditions of the intermediary relending program, for projects
to establish, enlarge, and operate enterprises that add value to agricultural
commodities and products of agricultural commodities.
`(3) ELIGIBLE INTERMEDIARIES-
Intermediaries that shall be eligible to receive loans under paragraph
(2) shall include State agencies.
`(4) PREFERENCE FOR BIOENERGY
PROJECTS- In making loans using loan funds made available under paragraph
(2), an eligible intermediary shall give preference to bioenergy projects
in accordance with regulations promulgated by the Secretary.
`(5) COMPOSITION OF CAPITAL-
The capital for a project carried out by an ultimate recipient and assisted
with loan funds made available under paragraph (2) shall be comprised of--
`(A) not more than 15 percent
of the total cost of a project; and
`(B) not less than 50 percent
of the equity funds provided by agricultural producers.
`(A) TERMS OF LOANS- A loan
made to an intermediary using loan funds made available under paragraph
(2) shall have a term of not to exceed 30 years.
`(B) INTEREST- The interest
rate on such a loan shall be--
`(i) in the case of each
of the first 2 years of the loan period, 0 percent; and
`(ii) in the case of each
of the remaining years of the loan period, 2 percent.
`(7) LIMITATIONS ON AMOUNT
OF LOAN FUNDS PROVIDED-
`(A) IN GENERAL- Except
as provided in subparagraph (B), an intermediary or ultimate recipient
shall be eligible to receive not more than $2,000,000 of the loan funds
made available under paragraph (2).
`(B) STATE AGENCIES- Subparagraph
(A) shall not apply in the case of a State agency with respect to loan
funds provided to the State agency as an intermediary.'.
SEC. 630. USE OF RURAL DEVELOPMENT
LOANS AND GRANTS FOR OTHER PURPOSES.
Subtitle A of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) (as amended by section
508) is amended by adding at the end the following:
`SEC. 310G. USE OF RURAL DEVELOPMENT
LOANS AND GRANTS FOR OTHER PURPOSES.
`If, after making a loan
or a grant described in section 381E(d), the Secretary determines that
the circumstances under which the loan or grant was made have sufficiently
changed to make the project or activity for which the loan or grant was
made available no longer appropriate, the Secretary may allow the loan
borrower or grant recipient to use property (real and personal) purchased
with the loan or grant funds, or proceeds from the sale of property (real
and personal) purchased with such funds, for another project or activity
that (as determined by the Secretary)--
`(1) will be carried out
in the same area as the original project or activity;
`(2) meets the criteria
for a loan or a grant described in section 381E(d); and
`(3) satisfies such additional
requirements as are established by the Secretary.'.
SEC. 631. SIMPLIFIED APPLICATION
FORMS FOR LOAN GUARANTEES.
Section 333A(g) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1983a(g)) (as amended by section
526) is amended by striking `(g)(1)' and all that follows through the end
of paragraph (1) and inserting the following:
`(g) SIMPLIFIED APPLICATION
FORMS FOR LOAN GUARANTEES-
`(1) IN GENERAL- The Secretary
shall provide to lenders a short, simplified application form for guarantees
under this title of--
`(A) farmer program loans
the principal amount of which is $100,000 or less; and
`(B) business and industry
guaranteed loans under section 310B(a)(1) the principal amount of which
is--
`(i) in the case of a loan
guarantee made during fiscal year 2002 or 2003, $400,000 or less; and
`(ii) in the case of a loan
guarantee made during any subsequent fiscal year--
`(I) $400,000 or less; or
`(II) if the Secretary determines
that there is not a significant increased risk of a default on the loan,
$600,000 or less.'.
SEC. 632. GRANTS FOR EMERGENCY
WEATHER RADIO TRANSMITTERS.
Subtitle D of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1981 et seq.) (as amended by section
606(a)) is amended by adding at the end the following:
`SEC. 377. GRANTS FOR EMERGENCY
WEATHER RADIO TRANSMITTERS.
`(a) IN GENERAL- The Secretary,
acting through the Administrator of the Rural Utilities Service, may make
grants to public and nonprofit entities for the Federal share of the cost
of acquiring radio transmitters to increase coverage of rural areas by
the emergency weather radio broadcast system of the National Oceanic and
Atmospheric Administration.
`(b) ELIGIBILITY- To be
eligible for a grant under this section, an applicant shall provide to
the Secretary--
`(1) a binding commitment
from a tower owner to place the transmitter on a tower; and
`(2) a description of how
the tower placement will increase coverage of a rural area by the emergency
weather radio broadcast system of the National Oceanic and Atmospheric
Administration.
`(c) FEDERAL SHARE- The
Federal share of a grant provided under this section shall be not more
than 75 percent of the cost of acquiring a radio transmitter described
in subsection (a).
`(d) AUTHORIZATION- There
is authorized to be appropriated to carry out this section $2,000,000 for
each of fiscal years 2002 through 2006.'.
SEC. 633. PROGRAMS FOR RURAL
SENIORS.
Subtitle D of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1981 et seq.) (as amended by section
632) is amended by adding at the end the following:
`SEC. 378. PROGRAMS FOR RURAL
SENIORS.
`(a) INTERAGENCY COORDINATING
COMMITTEE-
`(1) IN GENERAL- The Secretary
shall establish an interagency coordinating committee (referred to in this
subsection as the `Committee') to examine the special problems of rural
seniors.
`(2) MEMBERSHIP- The Committee
shall be comprised of--
`(A) the Undersecretary
of Agriculture for Rural Development, who shall serve as chairperson of
the Committee;
`(B) 2 representatives of
the Secretary of Health and Human Services, of whom--
`(i) 1 shall have expertise
in the field of health care; and
`(ii) 1 shall have expertise
in the field of programs under the Older Americans Act of 1965 (42 U.S.C.
3001 et seq.);
`(C) 1 representative of
the Secretary of Housing and Urban Development;
`(D) 1 representative of
the Secretary of Transportation; and
`(E) representatives of
such other Federal agencies as the Secretary may designate.
`(3) DUTIES- The Committee
shall--
`(A) study health care,
transportation, technology, housing, accessibility, and other areas of
need of rural seniors;
`(B) identify successful
examples of senior care programs in rural communities that could serve
as models for other rural communities; and
`(C) not later than 1 year
after the date of enactment of this section, submit to the Secretary recommendations
for administrative and legislative action.
`(1) IN GENERAL- The Secretary,
acting through the Administrator of the Rural Housing Service, shall make
grants to nonprofit organizations to pay the Federal share of the cost
of programs that demonstrate creativity in promoting wellness, affordable
housing, technology adaptation, and transportation, for seniors.
`(2) FEDERAL SHARE- The
Federal share shall be 50 percent.
`(3) LEVERAGING- In selecting
programs to receive grants under paragraph (1), the Secretary shall give
priority to proposals that leverage resources to meet multiple rural community
goals.
`(1) INTERAGENCY COORDINATING
COMMITTEE- Funds available to any Federal agency may be used to carry out
interagency activities under subsection (a).
`(2) GRANTS- There is authorized
to be appropriated to carry out subsection (b) $10,000,000 for each of
fiscal years 2003 through 2006.'.
SEC. 634. RURAL COMMUNITY ADVANCEMENT
PROGRAM.
(a) RURAL COMMUNITY ADVANCEMENT
PROGRAM ACCOUNT- Section 381E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009d) is amended--
(1) by striking the section
heading and inserting the following:
`SEC. 381E. RURAL COMMUNITY
ADVANCEMENT PROGRAM ACCOUNT.';
(2) by striking subsection
(a) and inserting the following:
`(a) ESTABLISHMENT- There
is established in the Treasury of the United States a program account which
shall be known as the Rural Community Advancement Program Account (i |