The Managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment
of the Senate to the bill (H.R. 2559), to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing
greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency
and integrity of the Federal crop insurance program, and for other purposes, submit the following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report:
            The Senate amendment struck out all of the House bill after the enacting clause and inserted a substitute text.
            The House recedes from its disagreement to the amendment of the Senate with an amendment which is a substitute for the House bill
and the Senate amendment.  The differences between the House bill, the Senate amendment, and the substitute agreed to in conference are
noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting
and clarifying changes.[1]  In the case where a provision of the House bill or the Senate amendment is adopted under the Conference substitute,
report language appurtenant to such provision of the House bill or Senate amendment, respectively, stands.
 

Short Title
            The House bill provides that this Act may be cited as the "Agricultural Risk Protection Act of 1999." (Section 1)
            The Senate amendment provides that this Act may be cited as the "Risk Management for the 21st Century Act."  (Section 1)
            The Conference substitute adopts the House provision providing that the Act be cited as the  “Agricultural Risk Protection Act of 2000.”
(Section 1)
 

                                              Title I—Crop Insurance Coverage

                                            Subtitle A – Crop Insurance Coverage
 

Premium Schedule for Additional Coverage
       The House bill amends section 508(d)(2) by striking subparagraphs (B) and (C) and inserts a new subparagraph (B).
       Paragraph (B) requires that the premium for insurance coverage equal to or greater than 50/100 (or an equivalent coverage) be
sufficient to cover anticipated losses and a reasonable reserve and include operating and administrative expenses, as determined by FCIC
based on an industry-wide percentage of the amount of premium used to define loss ratio.
      Amends section 508(e)(2) by striking paragraphs (B) and (C) that provide the amount of premium to be paid by FCIC for coverage of
less than 65/100 but greater than 50/100, and for coverage greater than 65/100, respectively.
      Adds new paragraphs (B) through (G) that provide for the new amount to be paid by FCIC for coverage levels ranging from 50 percent
coverage to 85 percent coverage.
      Provides that the amount to be paid by FCIC for each coverage level (or equivalent coverage) is the sum of the percent of premium
provided below (plus an amount of administrative and operating expenses determined under another section).
50-54% coverage = 67%
55-59% coverage = 64%
60-64% coverage = 64%
65-69% coverage = 59%
70-74% coverage = 59%
75-79% coverage = 54%
80-84% coverage = 40.6%
85% coverage = 30.6%
(Producers may choose any price election up to 100 percent of the price election, and coverage in 1 percent increments is authorized as under
current law.
Provides that each policy or plan of insurance contain a disclosure of the portion of premium paid by FCIC.
       The House bill amends section 508(d) by adding a new paragraph (3) to authorize FCIC to provide performance-based discounts to
producers with good production or insurance experience.
       Authorizes a 20 percent premium discount for the 2000 crop year for certain producers of specific crops that received a discounted
price due to Scab or Vomitoxin damage.
      The House bill amends section 508(c)(5) to provide that in the case of a cost of production or similar plan of insurance, the expected
market price (price election) is the projected cost of producing the crop.  (Section 101, 106 and 107)
      The Senate amendment amends section 508(d)(2) by striking subparagraph (C) and inserting a new (C) and (D) establishing premium
amounts.
      Paragraph (C) requires that the premium for insurance coverage equal to or greater than 65/100 but less than 75/100 (or a comparable
coverage for a plan of insurance not based on yield) be sufficient to cover anticipated losses and a reasonable reserve and include operating
and administrative expenses, as determined by FCIC based on an industry-wide percentage of the amount of premium used to define loss
ratio.
      Paragraph (D) requires that the premium for insurance coverage equal to 75/100, 80/100, and 85/100 (or a comparable coverage for a
plan of insurance not based on yield) is established at a level as indicated under paragraph (C).
      Amends section 508(e) by striking paragraph (1) providing that FCIC pay a portion of premium and inserts a new paragraph relative to
the same.
      Provides under paragraph (1)(A) that FCIC pay a portion of the premium as established in section 508(e)(2).
      Amends section 508(e)(2) by striking paragraphs (B) and (C) that provide for the amount of premium to be paid by FCIC for coverage of
less than 65/100 but greater than 50/100, and for coverage greater than 65/100, respectively.
      Adds new paragraphs (B) through (G) that provide for the new amount to be paid by FCIC for coverage levels ranging from 50/100 to
85/100.
      Provides that the amount to be paid by FCIC for each coverage level (or comparable coverage for a plan of insurance not based on yield)
is the sum of the percent of premium provided below (plus an amount of administrative and operating expenses determined under another
section).
50/100% coverage = 60%
55/100% coverage = 45%
60/100% coverage = 45%
65/100% coverage = 50%
70/100% coverage = 50%
75/100% coverage = 55%
80/100% coverage = 38%
85/100% coverage = 28%
(Producers must choose 100 percent price election to receive correlating percentage of assistance, and availability of coverage is limited to 5
percent increments).
      Provides under new paragraph (H) that paragraphs (A) through (G) are applicable for the 2001 through 2004 fiscal years.
      Amends section 508(a) by striking paragraph (3) relative to exclusions for coverage and inserting a new paragraph (3) relative to the
same.
      Provides conforming amendments amending section 508(e) by striking paragraph (4) requiring individual and area crop insurance
coverage and by striking reference to such authority under section 508(g)(2)(D).
      The Senate amendment amends section 508(c) by striking paragraph (5) relative to price levels and inserts a new paragraph relative to
price elections.
      Requires FCIC to establish or approve a price level, or expected market price, for each commodity insured.
      Provides that the expected market price (1) not be less than the projected market price of the crop;  (2) may be based on the actual
market price of the crop at the time of harvest;  (3) in the case of revenue or similar policies be the actual market price of the crop; or (4) in the
case of cost of production or similar policies be the cost of producing the crop.  (Section 103)
            The Conference substitute adopts the Senate provision relative to the expected market price with minor changes to clarify intent.  The
Conference substitute adopts the House provisions relative to premium amounts, performance-based discounts, payment schedule, and
premium payment disclosure with certain changes.  Language with respect to premium amounts and payment schedule has been modified to
clarify intent.  The provision providing discounts for producers of crops damaged by scab is omitted.  Premium assistance at the 75, 80, and 85
percent coverage levels are increased to 55 percent, 48 percent, and 38 percent, respectively, of the amount of premium used to define loss
ratio.  Current statutory authority to offer coverage in one percent increments is temporarily suspended.  (Section 101)
 
 
 

Premium Schedule for Other Plans of Insurance
      The House bill amends section 508(h)(2) by striking the second sentence limiting the portion of premium FCIC may pay for innovative
policies and by creating paragraphs (A) and (B).
      Subparagraph (B) requires that in the case of a policy submitted under section 508(h) (except paragraph (10) or subsection (m)(4)),
FCIC shall pay a portion of the premium equal to the percentage, prescribed under section 508(e) for a similar level of coverage, of the total
amount of the premium used to define loss ratio, and the dollar amount of the administrative and operating expenses that would be paid by FCIC
under section 508(e) for a similar level of coverage.  (Section 102)
      The Senate amendment amends section 508(e) by striking paragraph (1) relative to requiring FCIC to pay a portion of premiums and
inserts a new paragraph (1) related to the same.
      Provides under the new paragraph (1)(B) that FCIC may pay a portion of the premium as established in 508(e)(2) for innovative plans of
insurance approved by FCIC under section 508(h). (Section 103)
      The Conference substitute adopts the House provision relative to premium assistance for all policies or plans of insurance developed
and approved under section 508(h) or 522 or conducted under section 523 (except livestock pilot programs) with certain changes.  The
administrative and operating costs associated with all such policies or plans of insurance must comply with section 508(k)(4), including any
proportional reductions that may apply.  Section 508(k)(4), including any proportional reductions, applies to all such policies or plans of
insurance whether developed and approved on, before, or after the date of enactment of this Act.  However, the effective date of the
amendments made by section 102 are delayed until after the reinsurance year 2001 with respect to policies or plans of insurance developed
and approved subsequent to the date of enactment.  During the reinsurance year 2001, the portion of the premium paid by the Corporation for
such policies or plans of insurance developed and approved subsequent to the date of enactment may not exceed the dollar amount authorized
under the new payment schedule for multiple peril crop insurance.  Administrative and operating costs associated with such policies during the
reinsurance year 2001 are adjusted accordingly, subject to section 508(k)(4), including any proportional reductions that may apply. (Section
102)
 

Catastrophic Risk Protection
      The House bill amends section 508(b) by striking paragraph (3) relative to yield and loss basis and inserts a new paragraph (3) relative
to the same.
      Provides that, beginning with the 2000 crop year, FCIC must offer producers a choice between the current CAT coverage and an
alternative CAT coverage that indemnifies the producer on an area yield and loss basis, provides a higher combination of yield and price
election, and that FCIC determines is comparable to "CAT."
            The House bill amends section 508(b)(5) by adding a new subparagraph (F) relative to payment of fees on behalf of producers.
Authorizes a cooperative association or nonprofit trade association to pay "CAT" fees on behalf of consenting producers.
      Provides that licensing fees or other payments made by approved insurance providers to a cooperative association or nonprofit trade
association in connection with the sale of "CAT" or "buy-up" insurance shall not be construed as a rebate providing the producer receives prior
notice of the fee.
      Provides that nothing in the subparagraph limits the ability of a producer to choose an agent or an insurance provider or refuse "CAT"
coverage purchased pursuant to this subparagraph.  Further requires that "CAT" policies sold under such an arrangement must be through a
licensed agent or approved insurance provider.
      Requires that participating cooperative associations, nonprofit trade associations, and approved insurance providers that operate under
this subparagraph to encourage producer members to purchase appropriate coverage.
      The House bill amends section 508(b)(11) reducing loss adjustment expense reimbursements relative to CAT policies to approved
insurance providers from 11 percent of imputed premium to 8 percent of the same.
      Amends section 508(k)(4)(A)(ii) by reducing administrative and operating expense reimbursements to approved insurance providers
from 24.5 percent of premium used to define loss ratio to 24 percent of the same.
      Provides that amendments are applicable with respect to the 2001 and subsequent reinsurance years.  (Sections 108, 109 and
310(a)(1))
      The Senate amendment requires any person that sells or solicits the purchase of a policy or adjusts losses under the FCIA in any state
must be licensed and qualified to do business in that state, and must comply with all state regulations (including commission and anti-rebating
regulations) as required under state law.   (Sections 313)
      The Conference substitute adopts the House provisions relative to the provision of alternative catastrophic risk protection and the
reimbursement rate change for loss adjustments associated with catastrophic risk protection.  The reduction in administration and operating
cost reimbursement is omitted.  The Conference substitute further adopts the House provision relative to the payment of catastrophic risk
protection fees by associations on behalf of member producers, and the treatment of licensing fees received by associations in connection with
the issuance of insurance with changes.  Rebating in connection with the issuance of crop insurance coverage is subject to the State laws in
which the rebate is made.  If a cooperative association or trade association is located in a State that permits rebating in connection with the
issuance of crop insurance coverage, the association may pay catastrophic risk protection (CAT) fees on behalf of members in that State or in a
contiguous State.  A report to Congress on the operation and impact of this provision is required.   Finally, the Conference substitute increases
the fees associated with catastrophic risk protection from $60 to $100 per crop per county.  (Section 103)
 

Administrative Fee for additional coverage

             The Conference substitute provides for an administrative fee of $30 per crop per county to be paid by producers electing coverage in
excess of catastrophic risk protection.  (Section 104)
 
 

Assigned yields and actual production history adjustments
      The House bill amends section 508(g) by adding paragraph (4) relative to adjustment in actual production history to establish insurable
yields.
      Provides that this paragraph shall apply when FCIC uses the APH of a producer to establish insurable yields for a crop for the 2001 and
subsequent crop years.
      Provides that, if, for one or more of the crop years used by a producer to establish APH, the producer's yield is less than 60 percent of the
applicable "T" yield, the producer may exclude each of such crop years and replace the excluded yield with a yield equal to 60 percent of "T".
This section applies retroactively to already recorded yields and prospectively to future yields.
      Amends section 508(g) by adding paragraph (5) relative to APH adjustment to reflect participation in major pest control efforts.
      Requires FCIC to develop a methodology for adjusting the APH of a producer's crop when the producer's farm is located in an area
where efforts have been undertaken to eradicate or retard plant pests and disease, where the presence of the pest or disease has been found
to reduce applicable crop yields, and where the efforts undertaken have been effective.  Requires APH adjustments to reflect the success of the
effort undertaken. (Section 103)
      The Senate amendment amends section 508(g)(2)(B) by requiring FCIC to assign a producer a yield for a crop where the producer has
not had a share of the production of the crop for more than 2 years; has not before farmed the land; or rotates to a crop that has not before been
produced on the farm.
      The Senate amendment amends section 508(g) by adding paragraph (4) relative to transitional adjustments for disasters.
      Defines "a producer that has suffered a multiyear disaster" as a producer or successor entity that has suffered a natural disaster during at
least 3 of the immediately preceding 5 crop years that resulted in a cumulative reduction of at least 25 percent in APH of a crop.
      Provides that, beginning with the 2001 crop year, a producer of an insured crop that has suffered a multiyear disaster may exclude 1 year
of the crop's production history for each 5 years included in the crop's APH.
      Requires FCIC to pay for any increased premiums, indemnities, and administrative and operating expenses that result from the exercise
of a producer to exclude 1 year of a crop's production history.
      Prohibits FCIC from limiting any increase in a producer's APH due to the producer's actual production of the crop in succeeding years
until such time that the producer's APH has recovered to the level obtained in the year before the first year of multiyear disaster.
      Rescinds FCIC authority allowing eligible producers to exclude any 1 crop year in the first crop year where a policy is available to
adequately address natural disasters occurring in multiple crop years.
      Makes the paragraph applicable for the 2001 through 2004 reinsurance years. (Sections 104 & 105)
      The Conference substitute adopts the Senate provision relative to assigned yields and the House provision relative to adjustments to
actual production history with minor changes to clarify intent.  (Section 105)

Review and Adjustment in Rating Methodologies
      The House bill amends section 508(a) by adding a new paragraph (7) relative to the review and adjustment in rating methodologies.
      Requires FCIC to periodically review the methodologies employed for rating plans of insurance consistent with section 507(c)(2) relative
to contracting for such services.  Requires FCIC to analyze the rating and loss history of policies and plans of insurance for crops by area and
make appropriate adjustments for the 2000 crop year or as soon as possible where premium rates are found to be excessive. (Section 104)
      The Senate amendment requires FCIC to contract for the study and development of alternative rating methodologies for rating plans of
insurance for "CAT" and "buy-up" coverage, taking into account producers not electing to participate in crop insurance and those electing only
"CAT" coverage.
      Requires that, with respect to such rating studies, a priority be given to crops with the largest average acreage nationwide but lowest
percentage of producer participation at buy-up coverage levels.
      Requires FCIC to provide funding for rating studies from the account established under section 516(b)(2)(A) of the FCIA, and specifically
authorizes $1 million for fiscal years 2001 and 2002 and $250,000 in fiscal years 2003 and 2004.
      Provides that the paragraph relative to funding be applicable for the fiscal years 2001 through 2004. (Section 202)
      The Conference substitute adopts the House provision relative to review and adjustment in rating methodologies with a change to
require such adjustments take place in the 2002 crop year and thereafter, rather than in the 2000 crop year and thereafter.  (Section 106)
      The Managers urge the Corporation to complete the process of developing alternative rating methodologies for all insurable crops. The
Managers also urge the Corporation to base Multi-Peril Crop Insurance (MPCI) cotton rates in Texas on the results of the analysis prepared on
their behalf by researchers at Montana State University and to adopt these rates beginning with the 2001 crop year on the same basis as the
Corporation implemented revised MPCI Premium rates in the Mid-South and Far West regions.
 
 

Quality Adjustment
      The House bill amends section 508(a) by adding a new paragraph (9) relative to quality grade loss adjustment.
      Requires that, consistent with subsection (m)(4) relative to contracting for research requirements, FCIC enter into a contract by the 2000
crop year to analyze quality loss adjustment procedures and make adjustments necessary to more accurately reflect local quality discounts,
taking into account actuarial soundness requirements and prevention of fraud, waste, and abuse. (Section 112)
      The Senate amendment strikes 508(a)(6) requiring guidelines, reports, studies, and pilot programs relative to the addition of new and
specialty crops, and inserts a new paragraph (6) relative to quality adjustment.
      Requires FCIC to offer coverage that permits a reduction in production for purposes of determining a loss to reflect any production not
meeting quality standards.
      Allows producers to opt-out of quality adjustment coverage and receive a reduction in premium equal to the cost of the coverage.
      Requires FCIC to contract for the study of quality loss adjustment procedures and, based on the study, to adjust the coverage to better
reflect local quality discounts, taking into consideration actuarial soundness and the prevention of fraud, waste, and abuse.  (Section 101)
      The Conference substitute adopts the Senate provision relative to quality adjustments with certain changes.  Language to permit
producers to opt-out of such coverage and receive a premium reduction is omitted.  Language is included to permit producers to elect such
coverage, under limited circumstances, on a basis smaller than a unit, and a provision relative to the manner in which the Corporation sets
quality standards is also included.   (Section 107)

Double Insurance and Prevented Planting
            The House bill amends section 508(a) by adding a new paragraph (8) relative to prevented planting.
      Allows producers to opt-out of prevented planting coverage and receive a reduction in premium equal to the cost of the prevented
planting coverage.
      Requires FCIC to provide an equal percentage level of prevented planting coverage for each crop.
      Limits prevented planting payments to producers prevented from planting due to conditions generally affecting the area in which the
producer farms.
      Authorizes a producer who received a prevented planting payment to plant a second crop other than the crop prevented from being
planted on the same acreage, except that the second crop is not eligible for NAP or crop insurance coverage.
      Provides that a producer who elects to plant a second crop which is not insurable or NAP eligible still qualifies for AMTA loans and
payments, CRP, and guaranteed and direct loans and other benefits under the ConAct.
      Requires FCIC to assign a producer who receives a prevented planting payment and who elects to plant a second crop a yield for the
prevented crop for that year equal to 60 percent of the producer's actual production history for purposes of future APH.
Denies a prevented planting payment to a producer who plants a second crop before the latest planting date for the crop prevented from being
planted.
      The House bill amends section 508(a) by adding a new paragraph (10) relative to limitations on double insurance.
      Prohibits a policy or plan of insurance for more than one crop planted on the same acreage in the same crop year unless the coverage
for the additional crop is "CAT" coverage.
      Provides an exception to the limitation on double insurance where both crops are normally harvested within the same crop year on the
same acreage; there is an established practice of double-cropping in the area and the additional crop is customarily double-cropped in the area
with the first crop; a policy of insurance is offered for both crops; and the additional crop is planted on or before the final or late planting date for
that crop. (Sections 110 and 201)
      The Senate amendment is substantially the same as the H.R. 2559 except the following additional provisions.
      Makes the prevented planting paragraph applicable for the 2001 through 2004 crop years.
      Requires that changes made to prevented planting coverage be reflected in the rates for coverage not later than the 2001 reinsurance
year. (Section 102)
      The Senate amendment amends section 508(m) (subsection (n) designated as (m) under section 207 of Senate amendments.
      Requires that FCIC may only offer insurance or reinsurance on 1 crop produced on specific acreage during a crop year, unless there is
an established practice of double-cropping in an area, the additional insurance is offered to a crop that is customarily double-cropped in the
area, and the producer has a history of double-cropping or the acreage has historically been double-cropped.  (Section 308)
      The Conference substitute provides limitations with respect to double insurance and prevented planting coverage.
The Conference substitute establishes a new Section 508A for both double insurance and prevented planting and provides the following
definitions:
            "First Crop" means the first crop of the first agricultural commodity insured and planted for harvest, or prevented from being planted, on
specific acreage during a crop year.
            "Second Crop" means a second crop of the same or different agricultural commodity following the first crop that is planted for harvest on
the same acreage as the first crop in the same crop year.  However, the term does not include a replanted crop.
            "Replanted Crop" means the second planting of the first crop on the same acreage in the same crop year, if the replanting is required by
the terms of the policy of insurance on the first crop.
            In the case of double insurance, the Conference substitute provides a producer with two options if a first crop has a total or partial
insurable loss.  If the producer chooses not to plant a second crop, then the producer is entitled to 100 percent of the indemnity payment for the
first crop.
      If the producer plants a second crop, then the producer will receive an initial indemnity payment up to 35 percent of the total calculated
indemnity payment for the first crop.  The Managers intend that the Secretary adjust the percentage paid as necessary to prevent abuse of the
program.  If the producer is not paid an indemnity on the second crop, then the producer will receive an additional indemnity payment equal to
the total calculated indemnity on the first crop less the initial indemnity payment.  If an indemnity is paid with respect to the second crop, then the
producer is not entitled to receive the additional indemnity payment with respect to the first crop.
      In the case of a producer who chooses to plant a second crop, the premium owed for insurance on the first crop will be reduced
commensurate with any reduction in indemnity payment received on the first crop.  If no indemnity is paid on the second crop, then the producer
owes the full premium for insurance on the first crop.
      With regard to prevented planting, the Conference substitute provides a producer with two options if a first crop is prevented from being
planted.  If the producer chooses not to plant a second crop, then the producer may collect 100 percent of the prevented planting guarantee for
the first crop.
      If the producer plants a second crop, then the producer will receive up to 35 percent of the prevented planting guarantee for the first crop.
The Managers intend that the Secretary adjust the percentage paid as necessary to prevent abuse of the program.   In addition, except for
producers who double crop in a double cropping area, a producer who plants a second crop will be assigned a recorded yield of 60 percent of
the producer's actual production history for the crop on which a prevented planting guarantee payment is received.  This will be used in
determining a producer's actual production history for subsequent crop years for the first crop. The Corporation may only pay the prevented
planting guarantee to a producer if the conditions that prevented the first crop from being planted have also generally affected other producers in
the area.  In addition, the Corporation may not make a prevented planting guarantee payment for the first crop in the case of any producer who
plants a second crop before the latest planting date for the first crop.
      In the case of a producer who chooses to plant a second crop, the producer's premium for the first crop will be reduced commensurate
with any reduction in indemnity payment received on the first crop.

      The Conference substitute provides that, notwithstanding the restrictions placed on double insurance and prevented planting, a producer
will receive full indemnity payments and prevented planting guarantees on 2 or more crops in a double cropping area.   There must be an
established practice of planting 2 or more crops for harvest in the same crop year in the area, as determined by the Corporation, and an
additional coverage policy or plan of insurance must be offered with respect to the commodities planted on the same acreage in the same crop
year.  In addition, the producer must have a history of planting 2 or more crops in the same year; the applicable acreage must have historically
been planted to 2 or more crops in the same year; and the second or subsequent crops must be customarily planted after the first crop on the
same acreage in the same year.  The Managers intend that in determining when an agricultural commodity is customarily double cropped in a
double cropping area, that the Corporation consider the farming and irrigation practices applicable to the crops in the area. (Section 108)

Noninsured Crop Disaster Assistance Program
            The House bill amends section 196(i) of the AMTA in paragraph (1) by striking "gross revenues" wherever it appears and inserting
"gross income" and by striking paragraph (4) and adding a new paragraph (4).
      Paragraph (4) provides that a person with a qualifying adjusted gross income of greater than $2 million during the taxable year is
ineligible to receive NAP assistance.
      The House bill also amends section 196(b) of the FAIR Act of 1996 to require that to be eligible for NAP, producers must provide
annually to the Secretary, acting through the agency, records of crop acreage, acreage yields, and production for each eligible crop.  (Sections
111 and 205)
      The Senate amendment amends section 196(a)(2) of AMTA by adding a new subparagraph (C) allowing the Secretary to consider all
varieties of a crop eligible for NAP as a single eligible crop for program purposes.
      Amends section 196(b)(1) relative to when a producer must apply for NAP assistance, striking discretionary authority for the Secretary to
determine the application deadline and inserting the requirement that producers apply not later than March 15.
      Strikes paragraph 196(b)(2) providing the Secretary discretionary authority pertaining to what production records a producer must
submit, and inserting a requirement that, to be eligible for NAP, producers must annually submit crop acreage, acreage yields, and production
for each crop.
      Amends paragraph 196(b)(3) to require annual reporting of acreage planted or prevented from being planted.
      Strikes section 196(c) relating to loss requirements and inserts a new subsection (c) relative to the same.
      Provides that a producer of an eligible crop must have suffered a loss of a noninsured crop as a result of drought, flood, or other natural
disaster as determined by the Secretary.
      Authorizes the Secretary to make payments under NAP once a drought, flood, or other natural disaster determination is made.
      Changes the prevented planting payment trigger for eligible crops from a 35 percent acreage threshold to a 15 percent acreage
threshold.
      Authorizes the Secretary to make a NAP payment irrespective of any area loss trigger.
      Amends section 196 by inserting a new subsection (j) and (k) relative to new eligible crops and service fees, respectively, and
designating the current subsection (j) as subsection (l).
      Provides under section 196(j)(1) that the NAP payment to a producer of an eligible crop that is new to an area will be equal to 35 percent
of the established yield for the first year the crop is produced.
      Provides that the NAP payment to a producer of an eligible crop that is new to an area will be equal to 45 percent of the established yield
for the second through fourth years the crop is produced, except where a NAP payment was made in the first year in which case the payment is
35 percent.
      Makes a producer of an eligible crop ineligible for a NAP payment where the producer collects a NAP payment in the first 2 crop years,
until such time that the crop is produced for 3 consecutive crop years with no reported losses.
      Provides for a service fee for NAP eligibility under section 196(k), requiring producers to pay the Secretary an amount equal to the fee for
a CAT policy ($60 per crop per county) or $200 per producer per county, not to exceed $600 per producer. Provides for the waiver of NAP fees
for limited resource producers.
      Provides that NAP fees collected by the Secretary be deposited in the CCC Fund.  Makes amendments under this section applicable for
the 2001 through 2004 crop years.  (Section 106)
      The Conference substitute adopts the Senate provision relative to the Noninsured Crop Disaster Assistance Program with changes.
Producers are required to make an application for NAP eligibility not later than 30 days before the beginning of the coverage period.  Changes
relative to prevented planting and yields for new NAP eligible crops provided under the Senate amendment are omitted.  The NAP fee provided
in the Senate amendment is modified to require producers to pay the lesser of $100 per crop per county or $300 per producer per county, but
not to exceed $900 per producer.   (Section 109)
 
 

                                              Subtitle B – Improving Program Integrity
 

Improving Program Compliance and Integrity
      The House bill amends section 506(q) by designating paragraphs (1) and (2) as (2) and (3), creating paragraph (1) relative to purposes,
and creating new paragraphs (4) through (7) relative to certain compliance requirements.
      Paragraph (4) requires the Secretary to develop and implement a coordinated plan for FCIC and FSA to reconcile information received
from producers and, beginning with the 2000 crop year, requires FCIC and FSA to annually conduct such reconciliation to identify and address
any discrepancies.
      Paragraph (5) requires the Secretary to develop and implement a coordinated plan for FSA to assist FCIC in ongoing monitoring of FCIA
programs, including conducting fact findings relative to allegations of fraud, waste or abuse at the request of FCIC or on its own initiative after
consultation with FCIC; reporting fraud, waste, abuse, and program vulnerabilities to FCIC; assisting FCIC in auditing a statistically appropriate
number of claims.  Also provides that the Secretary ensure that FSA personnel are appropriately trained and, at minimum, receive the same
training and testing as loss adjusters.
      Requires maintenance of effort on the part of approved insurance providers in conducting audits of claims, requires FCIC to respond
within 90 days of receiving notice by approved insurance providers of intentional violations, and requires a coordinated response to violations by
FCIC and approved insurance providers.
      Paragraph (6) requires the Secretary to establish a mechanism under which state FSA committees are consulted concerning policies
and plans of insurance offered in the state.
Paragraph (7) requires the Secretary to submit an annual report to the House and Senate Agriculture Committees containing findings relative to
the efforts undertaken in paragraphs (4) and (5), identifying specific incidences of fraud, waste, and abuse along with actions taken to eliminate
the same.
      The House bill amends section 506(n) by striking "penalties" where it occurs and inserting "sanctions" and redesignating paragraph (2)
as paragraph (3).
      Strikes paragraph (1) relative to false information and inserts new paragraph (1) relating to the same.
      Provides that a producer, agent, loss, adjuster, approved insurance provider, or other person that intentionally provides false or
inaccurate information to FCIC or to an approved insurance provider with respect to a policy may, after notice and opportunity for a hearing, be
subject to sanctions.
      Provides that sanctions include a civil fine not to exceed the greater of the amount of the pecuniary gain obtained by the violator or
$10,000; debarment of a producer from specified farm programs for up to 5 years; and debarment of other persons from benefits under the
FCIA for up to 5 years.  Also provides that FCIC may require the producer to forfeit any premium owed notwithstanding denial of a claim or
collection of overpayment if the violation is material.
      Requires sanctions be disclosed on each policy.  (Sections 202 and 203)
      The Senate amendment strikes section 506(n), relative to penalties for false information, and provides a new subsection (n) relative to
sanctions for program noncompliance and fraud.
      Provides that a producer, agent, loss, adjuster, approved insurance provider, or other person that intentionally provides false or
inaccurate information to FCIC or to an approved insurance provider with respect to a policy may, after notice and opportunity for a hearing, be
subject to a sanction under this subsection.
      Provides that a producer, agent, loss adjuster, approved insurance provider, or other person that intentionally fails to comply with an FCIC
requirement is subject to sanctions, and that any such person (other than a producer) intentionally failing to comply with an SRA is also subject to
sanctions.
      Provides sanctions for material violations relative to providing false information and compliance failure. Sanctions include a civil fine not
to exceed the greater of the amount of the pecuniary gain obtained by the violator or $10,000; debarment of a producer from all farm programs
for up to 5 years; and debarment of other persons from benefits under the FCIA for up to 5 years.
      Requires the Secretary to consider the gravity of the violation in determining whether to impose a sanction and the amount or degree of
any sanction imposed.  Also requires disclosure of sanctions on each policy of insurance.
      Requires that funds collected under this subsection be deposited into the insurance fund provided under section 516(c)(1) of the FCIA
(general FCIA insurance fund).  Amends section 516(c)(1) of the FCIA by striking paragraph (1) and inserting a new paragraph (1) providing
that, along with premium income and amounts under section 516(a)(2), sanctions fees are to be deposited in this fund.
      The Senate amendment amends section 506(q) of the FCIA, relative to program compliance, by adding at the end paragraphs (3) and
(4).
      Paragraph (3) requires FCIC to develop procedures for an annual review of each agent and loss adjuster by approved insurance
providers, oversee such review, and consult with approved insurance providers relative to any remedial action required.
      Requires FCIC to file a report with the House and Senate Agriculture Committees by the end of each fiscal year relative to compliance,
along with recommendations for any necessary legislative or administrative changes.  (Sections 303 and 304)
      The Conference substitute adopts the House provisions relative to improving compliance and integrity with modifications.  Procedures
with respect to FSA inquiries into fraud, waste, and abuse as well as notice and response requirements concerning allegations of fraud, waste,
and abuse are clarified.  The Secretary is required to establish procedures by which the Corporation will be able to identify agents and loss
adjusters with disparate performance records in order to conduct a review and take remedial action where appropriate.  Certain information,
including the name and identification number of each insured and the crop to be insured, the elected coverage level, and price election selected
must be received by the Corporation approximately 30 days subsequent to the sales closing date.  The Conference substitute also adopts the
Senate provision relative to sanctions for program noncompliance and fraud, with a minor change to exclude the failure to comply with a
Standard Reinsurance Agreement from the class of activities that would trigger the imposition of sanctions enumerated under this section.  The
Conference substitute further adopts the Senate provision to require the Corporation to develop procedures for approved insurance providers to
review the performance of agents and loss adjusters.  Finally, the Conference substitute adopts provisions to require the Secretary to upgrade
information management systems and use data mining and data warehousing technologies, including contracting with private entities with
expertise in this area, in implementing compliance provisions.  Limited funding is authorized for fiscal years 2001 through 2005 to carry out
these compliance activities, excluding salaries.    (Section 121)
      In an effort to combat fraud and abuse in the crop insurance program, the Managers direct the Secretary to develop and implement a
coordinated plan for the Farm Service Agency to assist the Corporation in monitoring and reporting on crop insurance program activity at the
local field level. In addition, the Corporation must establish a working relationship with insurance providers in order that information regarding
fraud, waste, and abuse may be reported to the Corporation without fear of legal reprisal to the insurance providers.  The Managers expect the
Secretary to ensure that each of the agency roles are clearly defined with the Corporation responsible for implementing all rules and regulations
relating to the insurance program.
      The Managers expect that the Corporation will make full use of the capabilities of information management systems, specifically data
warehousing and data mining technologies, both within or outside of the Federal government, to fulfill the requirements of this section to improve
the compliance and integrity of the Federal crop insurance program.  The Managers expect the Corporation to use funds made available by this
Act, or otherwise available, to contract with the Center for Agribusiness Excellence at Tarleton State University and the Center for Agribusiness
and Agrotechnologies at Bradley University for management and development of a system to implement the requirements of this section.
      The Managers direct the Corporation to place the highest financial priority and emphasis on the interactive computer operations to
ensure that participating insurance companies are able to accurately transmit financial data back to the agency.
 

Protection of Confidential Information
      The House bill amends section 502 by adding a new subsection (c) relative to the protection of confidential information.
      Prohibits the Secretary, any other officer, employee, or agency of USDA, an approved insurance provider and its employees and
contractors, and any other person from disclosing producer-derived information to the public unless it is transformed into a statistical or
aggregate form that does not reveal the producer's identity.
      Provides for penalties consistent with section 1770(c) of the Food Security Act of 1985, including fines up to $10,000 and or
imprisonment for up to 1 year.  (Section 204)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision protecting producer confidentiality with a minor change to allow producers to
consent to the release of otherwise protected information as long as program eligibility is not conditioned upon the release.  (Section 122)

Good Farming Practices
      The House bill amends section 508(a)(3)(C) relative to losses excluded from coverage by clarifying that scientifically sound sustainable
and organic farming practices are good farming practices. (Section 309)
      The Senate amendment is substantially the same as the House bill.
      The Conference substitute adopts the Senate provision relative to the inclusion of scientifically sound sustainable and organic farming
practices as good farming practices for purposes of what constitutes an insurable loss under the Federal Crop Insurance Act.  The Conference
substitute further requires that producers be provided with an informal administrative review of a determination regarding good farming
practices but proscribes any such review pursuant to the National Appeals Division.  Producers have a right to judicial review relative to a
determination regarding good farming practices without having to exhaust any informal administrative review.  However, any determination
regarding good farming practices may not be reversed under a judicial review unless it is found to be arbitrary or capricious.  (Section 123)
      The Managers understand that producers of organic cotton who destroy their crop when it has been exposed to chemicals used in boll
weevil eradication are currently being penalized relative to their actual production history despite the fact that they do not qualify for a crop
insurance indemnity.  The Managers expect the Corporation to immediately rectify this inequity with respect to any producer of an organic crop
who must destroy that crop in order to maintain organic certification.  To the extent that no indemnity is received for a lost crop under these
circumstances, no penalty relative to actual production history should obtain.

Records and Reporting
      The House bill amends section 508(f)(3)(A) of the FCIA relative to producer reporting requirements.
      Requires producers participating in the crop insurance program to annually report records acceptable to the Secretary regarding crop
acreage, acreage yields, and production for each crop insured.
      Amends section 506(h) of the FCIA by requiring the coordination of records kept under the FCIA and under the NAP program to avoid
duplication, to streamline submission procedures, and to enhance accuracy.
      Provides that such records collected under NAP and the FCIA be made available to appropriate state and federal agencies to carry out
these programs and other agricultural programs and related responsibilities.
      Amends section 196(b) of the FAIR Act of 1996 to require that to be eligible for NAP, producers must provide annually to the Secretary,
acting through the agency, records of crop acreage, acreage yields, and production for each eligible crop. (Section 205)
      The Senate amendment amends section 508(f)(3)(A) of the FCIA relative to producer reporting requirements.
      Requires producers participating in the crop insurance program to annually report records acceptable to the Secretary regarding crop
acreage, acreage yields, and production for each crop insured.
      Amends section 506(h) of the FCIA by requiring the coordination of records kept under the FCIA and under the NAP program to avoid
duplication, to streamline submission procedures, and to enhance accuracy.
      Provides that such records collected under NAP and the FCIA be made available to appropriate state and federal agencies to carry out
these programs and other agricultural programs and related responsibilities.
      The Senate amendment also strikes paragraph 196(b)(2) providing the Secretary discretionary authority pertaining to what production
records a producer must submit, and inserting a requirement that, to be eligible for NAP, producers must annually submit crop acreage, acreage
yields, and production for each crop.   Amends paragraph 196(b)(3) to require annual reporting of acreage planted or prevented from being
planted.  (Sections 306 and 106)
      The Conference substitute adopts the House provision with changes to omit provisions dealt with elsewhere in the Act.  (Section 124)
 

                                           Subtitle C—Research and Pilot Programs
 

Research and Development

      The House bill amends section 508(h) by adding a new paragraph (6) relative to reimbursement of research, development, and
maintenance costs.
      Requires FCIC to reimburse an applicant for research, development, and maintenance costs directly related to a policy submitted to and
approved by the Board and, if applicable, sold to producers.
      Authorizes payments to applicants beginning with fiscal year 2001 and limits reimbursement for maintenance to no more than 4
reinsurance years from approval, after which FCIC assumes maintenance of successful policies.
      Provides that payments under this paragraph be considered payment in full for research and development and any property rights.
      Requires FCIC to determine the amount of reimbursement based upon the complexity of the policy or material and the size of the area to
be served.  Requires FCIC to issue final regulations not later than October 1, 2000.
      The House bill also authorizes $55 million for each fiscal year for reimbursement and direct contracting for research and development of
new policies.
      The House bill amends section 508(m) by adding a new paragraph (4).
      Paragraph (4) requires FCIC to make full use of the reimbursement provisions of section 508(h) to encourage and promote private
research and development of new policies and plans of insurance.
      Provides that where FCIC determines that a crop, including a specialty crop, is not adequately served by crop insurance, FCIC may enter
into contracts directly with any person or entity with experience in crop insurance or farm or ranch risk management, including universities,
approved insurance providers, and trade and research organizations, to conduct research and development, without regard to the limitations
contained in the FCIA.
      Provides that the authority of FCIC to contract for the research and development of policies, includes research and development for
policies based on adjusted gross income, cost of production, quality losses, and an intermediate base program with a higher coverage and cost
than "CAT".
      Delays effective date of contracting authority until October 1, 2000.
      Provides that FCIC may offer any policy developed under this subparagraph that is approved by the Board.
      Requires FCIC to contract for research and development regarding one or more revenue coverage plans involving current or new market
instruments.  Requires FCIC to report the results of the contract within 15 months from enactment of this paragraph.
      Amends section 508(m)(2) relative to the prohibition of FCIC research with respect to risk protection generally available from the private
sector, to prohibit FCIC from conducting its own research and development of new policies on or after October 1, 2000.  Provides that FCIC
may continue to offer any policies developed by FCIC before that date.
      Amends section 508(m) by adding a new paragraph (5), relative to partnerships for risk management development and implementation.
      Authorizes FCIC to enter into partnerships with public and private entities to increase the availability of loss mitigation, financial, and risk
management tools for producers of crops covered under NAP and other under-served and specialty crop producers.
      Authorizes FCIC to enter into partnerships with CSREES, ARS, NOAA, and other appropriate public and private entities with
demonstrated ability in developing and implementing risk management and marketing options for specialty and under-served crops.
      Provides a list of objectives to be obtained as a result of any partnerships.
      Provides that funds not used for reimbursements or for direct contracting for specialty and under-served crops may be used by FCIC to
enter into such partnerships.
      Provides that funding for partnerships during fiscal years 2001 through 2004 are available where amounts used for reimbursements and
direct contracting are less than $44 million, $47 million, $50 million, and $52 million for fiscal years 2001 through 2004, respectively, and where
the amount for partnerships does not exceed the difference between the amounts provided above and the amount actually spent thereon.
      This paragraph is applicable beginning on October 1, 2000.
      The House bill amends section 508(h)(6) by adding a new subparagraph (E) relative to expenditures on reimbursements and direct
contracting for research and development.
      Provides that of the amounts made available for reimbursements and direct contracting for research and development, $25 million shall
be reserved for direct contracting for specialty and under-served crops.  Provides that any unused portions of the reserved amount may be used
for reimbursements, with priority for under-served crops.  Also provides that of the amounts made available for reimbursements and direct
contracting for research and development, more than $25 million may be used for contracting for specialty and under-served crops where
necessary.
      Authorizes $55 million for each fiscal year for reimbursement and direct contracting for research and development of new policies.
      Amends section 516(a)(2) by adding a new subparagraph (D) authorizing appropriations for costs associated with research,
development, and maintenance costs.
      Amends section 516(b)(1) by adding a new subparagraph (E) authorizing reimbursements, research, and development costs to be paid
by the FCIA Fund.  (Section 302, 303 and 304)
      The Senate amendment provides that with respect to research and analysis concerning any crop insurance issue, including outreach,
education, pilot programs, or the development of new plans of insurance, FCIC is limited to the authority provided under the newly created
section 522 and the funds made available under section 516(b)(2)(A) of the FCIA when contracting or reimbursing research costs related to
policy development or modification.  Newly created section 523 relative to specialty crops is exempted from this limitation.
      Requires that FCIC establish the development of a pasture, range, and forage program to promote land stewardship as "1 of the highest
research and development priorities."
      Requires FCIC to contract for a study to determine whether the development of a plan of insurance providing coverage for multiple years
would curb fraud and abuse, and requires a report on findings to the House and Senate Agriculture Committee within 1 year of enactment.
      The Senate amendment also amends the FCIA by adding at the end section 523, relative to specialty crops.
      Authorizes the Specialty Crops Coordinator to make grants or enter into contract for research and development of policies to serve
under-served specialty crops and reimburse costs associated with such research and development.
      Authorizes the Specialty Crops Coordinator to enter into partnerships with public and private entities to increase the availability of risk
management tools for specialty crop producers.
      Authorizes $20 million in funding from section 516(c)(1) (FCIA Fund) for each of fiscal years 2001 through 2004 to enter into cooperative
agreements with public and private entities to develop and implement risk management tools for specialty crop producers.  Provides that such
amounts may not come from section 516(b)(2)(A).
      Provides a list of objectives to be obtained as a result of any partnerships.
      Prohibits FCIC from establishing a sales closing date for specialty crops that is before the end of the 120-day period beginning on the
date of the final release of materials for policies from RMA and the Specialty Crops Coordinator.
      Allows producers of specialty crops to purchase new coverage or increase coverage levels at any time during the insurance period,
subject to a 30-day waiting period and an inspection by FCIC to verify acceptability of the approved insurance provider, provided FCIC is able
to adequately rate the risk.
      Requires FCIC and the Specialty Crop Coordinator to jointly conduct feasibility studies for developing new policies for specialty crops,
and requires a progress report to Congress not later than 1 year from the date of enactment.
      The authority for the Specialty Crops Coordinator to enter into partnerships and the extension of the sales closing date and time for
purchase of coverage is applicable for the 2001 through 2004 fiscal years.
      Requires that not later than 180 days after enactment, the Secretary must submit a report to the President and the House and Senate
Agriculture Committees assessing USDA's progress in expanding coverage to specialty crops and USDA's plans to continue that progress.
      Also requires that the report include an assessment of whether "CAT" has resulted in uniform quality of protection for all regions of the
country and fulfilled the goal of increased participation, especially in states with traditionally low participation rates and high proportion of
specialty crops.  The report should also address the question of whether USDA should resume offering CAT and performing loss adjustments.
      The Senate amendment strikes subsection (m) providing FCIC its current authority to conduct research, surveys, pilot programs, and
investigations relating to crop insurance and agriculture-related risks and losses.  Subsection (n) is designated as subsection (m).
      Amends section 516(b)(2)(A) to increase mandatory funding for research and development expenses from not to exceed $3.5 million for
each fiscal year to $4.5 million in fiscal years 2001 and 2002, $3.75 million in fiscal years 2003 and 2004, and returning to $3.5 million for each
subsequent fiscal year.
      Provides a conforming amendment relative to section references in section 518, defining agricultural commodity.  (Section 202, 207 and
309)
      The Conference substitute adopts the House provisions relative to reimbursements, contracting, and partnership for policy research and
development with certain changes.  The provision includes authority to reimburse research and development costs associated with policies
developed before enactment.  Reimbursement for research and development costs is limited to policies that are determined to be marketable.
Reimbursement for maintenance is limited to 4 reinsurance years from the date of Board approval after which the provider responsible for
maintenance has three options.  The provider may transfer maintenance responsibility to the Corporation, charge a Board-approved fee to be
paid by other providers electing to offer the policy, or continue to maintain the policy and absorb the appurtenant costs.  The provision authorizes
the Corporation to enter into contracts for research and development on policies in order to (1) increase participation in States where the
Corporation determines there is low crop insurance participation or availability, and the State is under-served by the program; (2) increase
participation in areas that are under-served by the program; and (3) increase participation by producers of under-served agricultural
commodities, including specialty crops.  The provision requires the Corporation to consult with groups representing producers that would be
served by a policy that is the subject of the research and development before entering into a contract.  The Conference substitute adopts the
Senate provisions to require the Corporation to establish the development of a pasture, range, and forage program as one of the highest
priorities and to require the Corporation to contract for a study relative to offering coverage for multiple years to reduce fraud, waste, and abuse.
Provisions are included to make partnership authority under this section eligible for funding for contracting, and to reserve $5 million of such
funding for contracting for policy development to increase participation in States where the Corporation determines there is low crop insurance
participation or availability and the State is under-served by the program.  The Managers consider it a high priority to develop policies that work
for producers and products in these low participation states.  The provision also requires the Corporation to contract for research and
development relative to a cost of production policy.  Finally, funding for reimbursements and contracting are limited to new levels.  (Section 131)
      The Managers recognize that it is difficult to predict the range of new and innovative approaches to the private development of insurance
products under the new environment created under this bill.  There is no reason to believe all policies will necessarily fit under the current
structure of yield-based or revenue-based products; some may focus on a narrower array of perils than are now included in available coverage.
These could include plans to protect against the uncontrollable risks associated with the use of certain conservation techniques such as
integrated pest management, best management practices, or conservation tillage systems.  The Corporation should take such factors into
account when considering approval of such proposals.
      The Managers expect the Corporation to study the feasibility of offering a vine and tree replacement program as an option for growers of
grapes, citrus, tree fruit, nut, kiwi, blueberries, and other high-value, permanent crops.
 
 

Pilot Program

            The House bill amends section 508(h) by repealing obsolete pilot programs contained in paragraphs (6) and (8) relative to cost of
production and assigned yields, respectively.
      Authorizes FCIC to offer pilot programs on a regional, state, or national basis after considering the interests of producers and the
interests and risks of FCIC, and to operate the pilot program, including any modifications, for up to 3 years with authority to extend for additional
periods.
      Amends section 508(h)(4) to require FCIC to promulgate regulations within 180 days of enactment to establish guidelines for the
submission and Board review of policies submitted under section 508(h), including streamlined guidelines governing the submission and Board
review of pilot programs that the Board determines are limited in scope and duration and involve a reduced level of liability to the government
and an increased level of liability to the approved insurance provider.
      Provides that FCIC must notify the applicant of its intent to disapprove a low risk pilot program within 60 days of the submission.
      Requires FCIC to approve or not approve a low risk pilot program within 90 days of submission, and requires a detailed explanation for
any disapproval.
      Provides that where FCIC fails to make a timely determination with respect to a low risk pilot program, the pilot is approved for the initial
reinsurance year unless an extension is agreed to.
      Amends section 508(h) by striking paragraph (10) relative to time limits for submission of new policies and inserts a new paragraph (10)
relative to livestock pilot programs.
      Requires FCIC to conduct 1 or more livestock pilot programs to evaluate risk management tools, including futures and options contracts
and policies and plans of insurance, including protection for environmental liability, and requires that the greatest number and variety of
programs be evaluated.
      Requires FCIC to begin the conduct of livestock pilot programs during the 2001 fiscal year and without regard to the limitations in the
FCIA, except that no coverage may be offered where that coverage is generally available from private insurance.
      Requires FCIC to conduct the livestock pilot programs in a number of counties that will facilitate comprehensive evaluation, and provides
that any producer of eligible livestock owning a farm or ranch in a selected county is eligible to participate.
      Defines livestock as cattle, sheep, swine, goats, and poultry.
       Requires FCIC to operate all livestock pilot programs so that, to the maximum extent practicable, associated costs (other than for
research and development) are not expected to exceed $20 million for fiscal year 2001, $30 million for fiscal year 2002, $40 million for fiscal
year 2003, and $55 million for fiscal year 2004 and each subsequent fiscal year.
      Amends section 518 of the FCIA by striking the livestock exclusion from insurance.   (Section 105)
      The Senate amendment authorizes FCIC to conduct research, surveys, pilot programs, and investigations relating to crop insurance and
agriculture-related risks and losses based on proposals developed by FCIC and others to determine their suitability to meet producer needs.
      Provides an exception that FCIC may not conduct such research activity to provide risk protection where such protection is generally
available from the private sector.
      Provides under newly created section 522(a)(3) a list of eligible activities for research activity, including after October 1, 2000, livestock
and livestock products, wild salmon, and loss or damage to trees or fruit due to "sharka."
      Clarifies the scope of pilot programs under newly created section 522(a)(4).  Authorizes FCIC to offer pilot programs on a regional, state,
or national basis after considering the interests of producers and the interests and risks of FCIC, and to operate the pilot program, including any
modifications, for up to 4 years with authority to extend for additional periods.  Also authorizes FCIC to provide premium discounts to producers
using whole farm or single crop units of insurance and to cross state and county boundaries to form units.
      Requires under newly created section 522(a)(5) that FCIC evaluate each pilot program and submit a report to the Senate and House
Agriculture Committees with a recommendation on whether to offer the pilot on a national basis.
      Authorizes under newly created section 522(a)(6) funds to carry out research and pilot programs (except for research related to
alternative rating methodologies authorized under section 202 of the Senate amendment).  Authorized amounts may not exceed $10 million in
FY2001, $30 million in FY2002, $50 million in FY2003, and $60 million in FY2004.
      Provides that provisions under section 201 of the Senate amendment that require funding are applicable for fiscal years 2001 through
2004, including authority for timber, wild salmon, and livestock coverage, general pilot authority, and general research funding.
            The Senate amendment provides that the purpose of the pilot program is to determine what incentives are necessary for approved
insurance providers to develop and offer risk management products, rate premiums, and competitively market such products.
      Requires FCIC to establish a pilot program under which approved insurance providers may propose to the FCIC Board loss of yield or
revenue insurance coverage for 1 or more commodities, including commodities not insurable (but excluding livestock), rates of premium, and
underwriting systems.
      Requires FCIC to approve the risk management product before it can be marketed.
      Provides that the FCIC Board may approve a risk management product submitted if the Board determines that the interests of producers
are protected; premium rates are actuarially appropriate and underwriting systems are actuarially appropriate and adequate; the product is
reinsured under the FCIA, through private reinsurance, or self-insured; the size of the pilot is adequate; the product is not generally available
through private insurance plans; and any other requirements imposed by FCIC.
      Requires that all information concerning a risk management product be considered confidential commercial or financial information, and
provides the standard that if the Secretary could withhold such information, the information may not be released.
      Defines original provider as an approved insurance provider that submits a product for approval under this section.  Provides that risk
management products approved under this section may only be sold by the original provider, unless another approved insurance provider
desiring to offer the product pays a fee established by the original provider.  (Sections 201 and 205)
            The Conference substitute adopts the Senate provisions relative to the scope of pilot programs and to a pilot program for insurance
coverage on wild salmon.  Pilot authority for insurance coverage for timber due to drought, flood, fire or other natural disaster and for trees or fruit
affected by plum pox (including quarantined trees or fruit) are omitted because statutory authority currently exists to insure the crops against
these perils.  The House bill language relative to expedited consideration of low risk pilot programs is omitted.  The Conference substitute
adopts the House bill’s provision relative to livestock pilot programs, except that pilot authority to offer insurance coverage for environmental
liability is omitted and the definition of livestock is modified to include but not be limited to the livestock referenced in the House bill.  Funding for
all livestock programs is also limited to new levels.  The provision authorizes a premium-rate reduction pilot program.  Finally, House bill
language clarifying regulatory jurisdiction over policies or plans of insurance is included but in a separate section of the Act.
(Section 132)
      The Managers intend for the Corporation to proceed with crop insurance coverage for sorghum silage beginning with the 2001 crop year
by implementing the pilot program that was drafted and presented to grain sorghum producers in October of 1999.  The Corporation shall
develop the program in a way that provides sorghum silage the same coverage as corn silage with the program to be fully developed by
September 30, 2000.
      The Managers are aware of proposals to implement a pilot insurance policy to provide coverage on timber losses resulting from drought,
flood, fire, or other natural disaster. The Managers expect the Corporation to implement this pilot under current authority, with special
consideration given to Florida.
      The Managers are aware of the serious concerns the plum pox virus is causing in several states, including Pennsylvania. The Managers
believe the Corporation has the same authority to develop a policy to provide coverage for plum pox as has been developed for citrus canker.
The Managers expect the Corporation to develop an insurance policy that provides coverage for trees against losses associated with plum pox
virus.
      The Managers intend that the premium rate reduction pilot program authorized by this provision explore whether premium rate
competition can benefit producers without harming program integrity or the crop insurance delivery system.  The Managers hope and expect
that the Corporation will approve proposed premium reductions, as long as such proposed reductions meet the standards of approval contained
in Section 132(d) of the Conference substitute.
      The Managers are aware that Section 508(e)(3) of the Federal Crop Insurance Act already authorizes premium reductions if an
approved insurance provider can demonstrate to the Corporation that it can provide crop insurance more efficiently than the expense
reimbursement provided by the Corporation.  The 508(e)(3) standard, however, is too limiting because an approved insurance provider’s gross
income includes underwriting gain as well as the expense reimbursement.  As a result, the Managers intend that the limitations on premium
reductions contained in Section 508(e)(3) of the Federal Crop Insurance Act not apply to the premium rate reduction pilot program authorized by
this provision.
 

Education and Risk Management Assistance
      The Senate amendment requires FCIC to establish two programs for the fiscal years 2001 through 2004, not to exceed the available
funding limitations.
      Requires FCIC to establish a program of education and information for states in which there is traditionally and continues to be a low
level of program participation and coverage availability, and which the Secretary determines is under-served.
      Requires FCIC to establish a program of research and development to develop new approaches to increasing participation in states in
which there is traditionally and continues to be a low level of program participation and coverage availability, and which the Secretary
determines is under-served.  Requires that $10 million in each of fiscal years 2001 through 2004 be made available for the Education,
Information, and Insurance Provider Recruitment program from the account provided under section 516(a)(2)(C) (mandatory funding account for
risk management payments).
      Requires that $5 million in each of fiscal years 2001 through 2004 be made available for the Research and Development program from
the account provided under section 516(a)(2)(C) (mandatory funding account for risk management payments).  (Section 206)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision relative to education and research with certain changes.  The provision
authorizing the Corporation to establish a program of research and development for new approaches to increase program participation in
specified states is omitted and partnerships for risk management education is authorized.  The Secretary, acting through the CSREES, is
required to establish a program under which competitive grants are made to qualified persons for the purpose of educating producers about risk
management activities.  Funding for the education and information program provided under the Senate amendment and the partnerships for risk
management education program are each limited to $5 million for each fiscal year beginning with 2001.  The provision also provides for an
agricultural management assistance program under which the Secretary is to offer cost share assistance to producers located in states with
historically low crop insurance participation for the uses as specified in the Act.  Funding for this program is limited to $10 million for each fiscal
year beginning with 2001.  (Section 133)
      Farmers have voiced support for marketing clubs, supported through small grants from USDA.  The clubs provide an opportunity for
farmers to improve their understanding of marketing and managing price risk by sharing their marketing experiences with their peers.  The
Managers encourage the Secretary to continue to support development of marketing clubs for farmers.
 

Options Pilot Program
      The Senate amendment amends section 191 of the AMTA relative to options pilot program authority by extending such authority until
December 31, 2004.
      Expands authority to operate options pilot programs from not more than 100 counties with a limit of 6 counties per state, to not more than
300 counties with a limit of 25 counties per state.
      Authorizes the Secretary to enter into a contract with any producer who volunteers to participate in the pilot program during any calendar
year in which a county in which the farm of the producer is located is authorized to operate the pilot program.
      Requires FCIC transfer $27 million for each of fiscal years 2002 through 2004 from section 516(a)(2)(C) (mandatory funds for risk
management payments) to the Secretary to fund the operation of the expanded options pilot program.  (Section 204)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision relative to the options pilot program with certain changes.  Authority to conduct
the options pilot program is expanded to include an increased number of counties with such authority continuing until the expiration of the 1996
Farm Bill.  Finally, funding is limited under this section. (Section 134)
 
 

                                                     Subtitle D—Administration
 
 

Relation to Other Laws

            The House bill provides that any policy or plan of insurance offered under the FCIA is not subject to the jurisdiction of the CFTC or SEC.
Provides a savings clause that states that the provision does not affect the jurisdiction of the CFTC with respect to transactions conducted on a
contract market.
            The Senate amendment provides that any policy or plan of insurance offered under the FCIA is not subject to the jurisdiction of the CFTC,
but does not affect the jurisdiction of the CFTC with respect to transactions conducted on a contract market.
      The Conference substitute adopts the provision included in section 105 of the House Bill relative to jurisdiction over policies or plans of
insurance and over any underlying instrument utilized in such a policy or plan of insurance. (Section 141)

Management of Corporation
      The House bill strikes section 505(a) relative to the Board of Directors of FCIC and inserts a new section 505(a) and (b), relative to the
same.
      Provides that the management of FCIC is to be vested in the Board of Directors, subject to the supervision of the Secretary.
      Provides that the Board consist of the manager of FCIC (serving as a non voting ex officio member), 1 member active in the crop
insurance business, 1 member active in the regulation of insurance, the Under Secretary for Farm and Foreign Agricultural Services, 1
additional Under Secretary for Agriculture, USDA's Chief Economist, and 4 active producers who are policy holders, are from different
geographic regions, represent a cross-section of commodities grown, with 1 producer being a specialty crop producer.
      Provides that the private sector members of the Board be appointed and serve at the pleasure of the Secretary, and not otherwise be
employed by the government.
      Requires that a private-sector member of the Board serve as its Chairman and be elected by the Board.
      Provides that the amendment made by section 301 takes effect 30 days from enactment, allowing current Board members to continue to
serve until the earlier of their replacement date or 180 days after enactment.  (Section 301)
      The Senate amendment strikes section 505(a) relative to the Board of Directors of FCIC and inserts a new section 505(a).
      Provides that the management of FCIC is to be vested in the Board of Directors, subject to the supervision of the Secretary.
      Provides that the Board consist of 4 producers from each region of the country, 1 member active in the crop insurance business, 1
member active in the reinsurance business, the Under Secretary for Farm and Foreign Agricultural Services, the Under Secretary for Rural
Development, and USDA's Chief Economist.
      Provides that the private sector members of the Board be appointed and serve at the pleasure of the Secretary, not be employed by the
government, be appointed to staggered 4 year terms, and serve no more than 2 consecutive terms.
      Requires that a private sector member of the Board serve as its Chairman and be elected by the Board.
      Requires RMA to assist the Board in developing, reviewing, and recommending new plans of insurance and pilot projects, terms of the
SRA, and with other issues involved in the administration of the program.
      Provides for the appointment of an Executive Director by the Secretary to assist the Board and report to the Secretary.
      Provides for a staff of 4 to report to the Executive Director, all 4 having knowledge and experience in quantitative mathematics and
actuarial rating.
      Requires the Executive Director and staff to assist the Board in reviewing and approving policies and plans of insurance submitted under
sections 508, 522, or 523, and report at least monthly to the Board on crop insurance issues.
      Requires the Executive Director and staff to review subsidized and unsubsidized insurance, make recommendations for approval or
disapproval, make recommendations to encourage cooperation between the U.S. attorneys, FCIC, and approved insurance providers to
minimize fraud, and make recommendations with respect to rating methodologies.
      Provides $500,000 for fiscal year 2001 from the FCIA Fund to pay the salaries and expenses of the Executive Director and staff.
      Requires that RMA transfer $500,000 for fiscal year 2001, and $1 million for each subsequent fiscal year to the Executive Director for
salaries and expenses, subject to the availability of appropriations.  (Section 301)
      The Conference substitute adopts the House provision relative to the composition of the Corporation Board of Directors with changes to
permit the Secretary the option of appointing 1 person experienced in reinsurance or 1 person experienced in the regulation of insurance,
requiring that Board members be limited to two consecutive terms and be appointed for staggered 4-year terms.  The new Board is to be
appointed during the period beginning February 1, 2001 and ending April 1, 2001.  Finally, the Board of Directors is required to contract with
persons experienced as actuaries and in underwriting for expert reviews of policies and plans of insurance offered under the Federal Crop
Insurance Act.  Funding for such reviews is authorized from mandatory funds formerly dedicated to research and development.  The authority
provided under this section, including funding dedicated to carry out this section, is in addition to the general management authority over the
Corporation, including any other contracting authority under the title, that is vested in the Board of Directors.   (Section 142)
 

Contracting for Rating of Plans of Insurance
      The House bill amends section 507(c)(2) relative to requiring FCIC to contract for certain services by including the contracting for
actuarial services, services relating to loss adjustment, and rating plans of insurance.  Underscores that FCIC should concentrate on the
regulation of insurance and on the evaluation process for newly developed  policies under section 508(h). (Section 306)
      Section 202 of the Senate amendment corresponds with sections 306 and 104 of House bill
      The Conference substitute adopts the House provision relative to contracting for rating plans of insurance.   (Section 143)
 

Electronic Availability of Crop Insurance Information
      The House bill amends section 508(a)(5) by making technical amendments and adding a new subparagraph (B) relative to electronic
availability of crop insurance information.
      Requires FCIC to make general insurance information electronically available to producers and insurance providers, and also requires,
where practicable, that FCIC allow producers and providers to provide insurance information electronically.  (Section 307)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision relative to the electronic availability of crop insurance information.  (Section 144)
 

Adequate Coverage for States
      The Senate amendment amends section 508(a) adding paragraph (9) relative to adequate coverage for states.
      Defines adequately served as having a participation rate that is at least 50 percent of the national average.
      Requires FCIC to review policies offered by approved insurance providers to determine if each state is adequately served.
      Requires that not later than 30 days after completion of the review, FCIC must submit to Congress a report of the results along with
recommendations to increase participation in states not adequately served.  (Section 305)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision relative to adequate coverage for states.  (Section 145)
 

Submission of Policies and Materials to Board
      The House bill amends section 508(h)(1) to clarify that a "person" that may propose a policy to the Board for approval includes an
approved insurance provider, a college or university, a cooperative or trade association, or other persons. Clarifies that policies are to be sold
to producers by approved insurance providers.
      Requires FCIC to consider any modified policy proposal within 30 days from the submission of the modifications, and requires that any
decision to disapprove a policy must be accompanied by a complete explanation.
      Requires that FCIC make a determination to approve or disapprove a policy proposal within 120 days from submission, and any
decision to disapprove a policy must be accompanied by a complete explanation.  Provides that the proposed policy is approved for the initial
reinsurance year where FCIC fails to provide a timely determination unless the parties agree to an extension.
      Amends section 516(b)(2) to authorize the current $3.5 million in mandatory funds for research and development to be used for costs
associated with considering and contracting for assistance in considering policies submitted for approval and carrying out policies resulting
from direct contracting,
      The House bill also requires FCIC to issue regulations establishing guidelines within 180 days of enactment to govern the submission of
policies.  (Sections 305 and 105)
       The Senate amendment amends section 508(h) by striking paragraphs (1) through (4) relative to the submission, review and approval,
and guidelines for the same of new policies, plans of insurance, or related materials, and inserts new paragraphs (1) through (4) related to the
same.
      Permits persons to propose to the Board loss of yield or revenue insurance coverage on an individual, area, or a combination of
individual and area basis for 1 or more crops and rates of premium and underwriting systems for proposed or existing policies.
      Provides that a proposal submitted under this subsection may be prepared without regard to FCIA limitations, including actuarial
soundness, levels of coverage, rates of premium, that the price level equal the expected market price and that an approved insurance provider
must provide coverage for all crops throughout the state where the provider elects to provide any coverage in the state.
      Provides, however, that FCIC may not pay a portion of the premium for a policy submitted under this subsection that exceeds the amount
otherwise authorized under subsection (e).
      Requires the Board to approve a proposal submitted under this subsection for subsidy and reinsurance where the Board determines the
proposal adequately ensures the interests of producers are protected, premiums are actuarially appropriate, underwriting systems are
actuarially appropriate and adequate, and is reinsured under this title, privately reinsured, or self-insured.
      Provides that rates of premium are actuarially appropriate where the rate is sufficient to cover projected losses and expenses, a
reasonable reserve, and an amount of operating and administrative expenses of the approved insurance provider under subsection (d)(2).
      Provides that proposed underwriting plans may be on an area or individual farm basis and must, at a minimum, specify factors such as
yield history for the farm or region, soils and resource quality for the farm, and farm production practices.
      Requires FCIC to provide reinsurance to approved insurance providers to the maximum extent practicable, and allows such providers to
obtain private reinsurance, reinsurance under the FCIA, or to self-insure.
      Requires FCIC to prescribe standards for determining whether premium rates are actuarially appropriate.
      Establishes guidelines with respect to any policy or other material submitted to the Board after October 1, 2000.
      Allows FCIC to enter into more than 1 reinsurance agreement simultaneously with an approved insurance provider to facilitate the offering
of the new policy.
      Requires FCIC to promulgate regulations establishing the procedure for the submission of policies under this subsection, including the
standards applicable to a proposal, procedures concerning the time limits and for opportunity to present the proposal to the Board in person.
      Provides that a proposal submitted to the Board is considered approved unless the Board disapproves the proposal by the date 60
business days after the later of submission of the proposal or the date on which the applicant provides the Board notice of intent to modify.
      Requires FCIC to provide notice by registered mail of intent to disapprove a proposal not later than 15 days before the date the Board
intends to disapprove such proposal.
      Provides an applicant with the right to modify a proposal and provides that any modified proposal be considered the original.  Requires
an applicant to provide notice to the Board of intent to modify a proposal within 5 days of notice by the Board to disapprove such proposal.
       Requires FCIC to prescribe a reasonable deadline for submission of proposals that approved insurance providers expect to market
during the reinsurance year.
      Requires that proposals submitted to the Board be considered confidential commercial information, and further requires that if
information concerning a proposal could be considered confidential, the information may not be released.
      Provides an exception to the standard of confidentiality where an approved insurance provider agrees to pay a fee (prescribed under
section 307 of the Senate amendment) to offer a policy developed by another provider.
      Provides that in lieu of publication in the Federal Register, a general summary of a proposal must be made available to other providers
upon approval of the proposal by the Board, including the identity of the provider, the coverage provided, and the area to be served.
      Strikes paragraphs (6), (8), and (10) of section 508(h), related to a pilot cost of production plan, a pilot program of assigned yields for
new producers, and time limits for submission of proposals, and designates paragraphs (7) and (9) as (6) and (7), respectively.
      Amends section 516(b)(1) by adding a paragraph (D) authorizing FCIC to pay salaries and expenses of the Executive Director and staff
for fiscal year 2001 from the FCIA fund, but not to exceed $500,000.  (Section 301)
      The Conference substitute adopts the House provision relative to the submission of policies and materials to the Board with changes
regarding confidentiality requirements governing policies.  The requirement that policies be printed in the Federal Register is also stricken from
the Federal Crop Insurance Act.  Funding provided under the House provision is incorporated into the Act but under another section of the Title.
(Section 146)
 
 

Funding

            The House bill amends section 516(a)(2) authorizing mandatory funds to be used for costs associated with the conduct of livestock pilot
programs subject to the limitations above.
            Amends section 516(b)(1) authorizing FCIC to fund livestock pilot programs from the FCIA Fund.
      Amends section 516(a)(2) authorizing mandatory funds to be used for cost associated with reimbursement and contracting for research
and development.
            Amends section 516(b)(1) authorizing FCIC to fund reimbursement and contracting from the FCIA fund.
      Amends section 516(b)(2) authorizing mandatory funds for costs associated with considering policies and other materials and
implementing such policies. (Section 105, 304 and 305)
      The Senate amendment amend section 516(c)(1) of the FCIA by striking paragraph (1) and inserting a new paragraph (1) providing that,
along with premium income and amounts under section 516(a)(2), sanctions fees are to be deposited in this fund.
      Amends 516(b)(2)(a) increasing the authorization of mandatory funds to be used for research and development.  (Sections 207 and 303)
      The Conference substitute adopts a funding section that incorporates funding authorized under various sections of the House bill and the
Senate amendment, including funding to cover costs associated with the consideration and implementation of policies.   (Section 147)

Standard Reinsurance Agreement
      The House bill authorizes FCIC to renegotiate the SRA effective for the 2002 reinsurance year.  (Section 310(b))
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision relative to the Standard Reinsurance Agreement with changes to allow 1
re-negotiation during the 2001 through 2005 reinsurance years.  (Section 148)
 

                                                     Subtitle E—Miscellaneous

Limitation on Revenue Coverage for Potatoes
            The Senate amendment restates the exclusions in current law in subparagraph (A) and adds another exclusion for coverage under new
subparagraph (B) prohibiting the coverage of losses due to a decline in revenue from potato production, except as provided under a whole farm
plan of insurance.
            The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision relative to limitations on revenue coverage for potatoes.  (Section 161)

Crop Insurance Coverage for Cotton and Rice
            The Senate amendment requires that, beginning with the 2001 rice crop, FCIC offer plans of insurance, including prevented planting and
replanting coverage, to cover the loss of rice due to the failure of irrigation water supplies from drought and saltwater intrusion. (Section 107)
      The House bill has no comparable provision
      The Conference substitute adopts the Senate provision relative to crop insurance coverage for rice with a change to include extra long
staple cotton and upland cotton.  (Section 162)
 

Indemnity Payments for Certain Producers
      The Senate amendment requires that notwithstanding section 508(c )(5) relative to price elections, a producer of durum wheat that
purchased a 1999 CRC wheat policy by the sales closing date shall receive an indemnity payment in accordance with the policy.  Requires that
the base and harvest price under the policy be in accord with the Commodity Exchange Endorsement for wheat published by FCIC on July 14,
1998, and that FCIC provide reinsurance under the SRA for the policy.  Voids the Bulletin MGR-99-004 issued by the Administrator.  This
provision is effective on October 1, 2000.  (Section 501)
            The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision relative to providing indemnity payments to certain producers with technical
changes.  (Section 163)
 

Sense of Congress on Regarding the Federal Crop Insurance Program
            The Senate amendment expresses the sense of the Senate regarding the federal crop insurance program and the role of farmer-owned
cooperatives. Expresses the sense of the Senate that, not later than 180 days after the date of enactment, the Federal Crop Insurance
Corporation should complete promulgation of the proposed rule entitled "General Administrative Regulations; Premium Reductions; Payment of
Rebates, Dividends, and Patronage Refunds; and Payments to Insured-Owned and Record –Controlling Entities."
            The House bill has no comparable provision.
            The Conference substitute adopts the Senate provision relative to the Sense of Congress regarding the Federal Crop Insurance
Program.  (Section 164)

Sense of Congress on Rural America, Including Minority and Limited-Resources Farmers
      The Senate amendment provides findings relative to a rally for rural America held in Washington on March 20-21, 2000, the purpose of
the rally, and a sense of Congress with respect to the rally, its participants, and its purpose. (Section 403)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision relative to the Sense of Congress on Rally for Rural America and Rural Crisis
with changes.  The Conference substitute also adopts the House provision relative to minority and limited resource farmers and ranchers with
changes. (Section 165)
 

                                        Subtitle F—Effective Dates and Implementation

Effective Dates
      The House bill provides that with the exception of sections 301(b) and 305(d), the amendments made by House bill take effect upon
enactment.
       Provides that the implementation depends on the terms of the particular amendment or, in the absence of an express implementation
date, in accordance with section 402.  (Section 401)
      The Senate amendment provides that with the exception of certain provisions, the Senate amendment is effective upon enactment.
(Section 501)
      The House bill requires implementation of sections 104, 106, 107, 202, 203, 204, 205, 206, and 309 for the 2000 crop year.
      Requires implementation of sections 105(a); 305(a), (b), and (c); 306; and 307 for the 2000 fiscal year.
      Requires implementation of sections 101, 102, 103(b), 109, 110, 111, and 201 for the 2001 crop year. Requires implementation of
sections 105(b) and 304 for the fiscal year 2001. (Section 402)
      The Senate amendment prohibits FCIC from obligating funds to carry out sections 102, 103, 105, 106, 201 through 207, 309, and 310
until October 1, 2000.
      The Conference substitute provides that this Act take effect on the date of enactment with certain exceptions.  Subtitle C, section 146
and 163 take effect on October 1, 2000.  Subsections (a), (b), and (c) of section 101, section 102(a), subsections (a), (b), and (c) of section 103,
section 104, section 105(b), section 108, section 109, and section 162 take effect beginning with the 2001 crop year.  Section 101(d), section
102(b), and section 103(d) take effect beginning with the 2001 reinsurance year.          (Section 171)
 

Regulations
            The Senate amendment requires FCIC to promulgate regulations not later than 60 days after the date of enactment.
            The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision requiring the Corporation to promulgate regulations to carry out this Act with a
change from requiring regulations within 60 days after enactment to 120 days after enactment.  (Section 172)

Savings Clause
      The House bill provides a savings clause with respect to current law, to the extent that application of an amendment is delayed.  (Section
403)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision relative to the savings clause.  (Section 173)

Compliance with State Licensing Requirements
            The House bill amends section 508 by adding a new subsection (o) relative to compliance with state licensing requirements.
      Requires that any person who sells or solicits the purchase of a policy in a state must be licensed and qualified to do business in that
state.  (Section 206)
      The Senate amendment amends section 508 of the FCIA adding at the end a new paragraph (n), relative to compliance with state
licensing requirements.
      Requires any person that sells or solicits the purchase of a policy or adjusts losses under the FCIA in any state must be licensed and
qualified to do business in that state, and must comply with all state regulations (including commission and anti-rebating regulations) as required
under state law.   (Section 313)
      The Conference substitute deletes both the House and Senate provisions because such licensing requirements are dealt with under a
separate section.

Choice of Risk Management Options
      The Senate amendment defines an agricultural commodity as a crop specified in section 518 of the FCIA for which "CAT" or "buy-up"
coverage is available.
      The section further defines an agricultural commodity as a crop that is selected by the Secretary to maximize the number of participating
producers, provides for a mixture of program, specialty, and regional crops, gives consideration to crops with low crop insurance participation,
and results in not less than 15 percent of payments going to states with traditionally low program participation that the Secretary determines are
under-served.
      Defines applicable crop to mean the 2002 through 2004 crops, and applicable year to mean the year in which the crop is produced on
the farm and the producer elects to receive a risk management payment or crop insurance premium subsidy.  Also defines a regulated
exchange as a board of trade designated as a contract market.
      Requires FCIC to offer either to make risk management payments or to provide crop insurance premium subsidies for each of the 2002
through 2004 crops.
      Requires each producer to make an election between the two options before the sales closing date for the applicable crop.
      Requires FCIC to make a risk management payment for an applicable crop to a producer electing to receive such a payment providing
the producer engages in at least 1 prescribed risk management practice from at least 2 of 5 categories.  The categories include, (1) the Crop
Insurance Category (buying unsubsidized or private coverage), (2) the Marketing Risk Category, (3) the Financial Risk Category, (4) the Farm
Resources Risk Category, or (5) the Other Category (as prescribed by the Secretary).
      Requires the Secretary to determine the amount of any risk management payment taking into consideration the expenditure by the
producer on the risk management activities in which the producer engaged.
      Provides that no risk management payment may be made in an amount greater than equal to the national average of the previous year's
liability for all "CAT" policies.
      Authorizes $500 million for fiscal years 2002 through 2004 from the account established in section 516(a)(2)(C) of the FCIA, except that
payments in any one fiscal year may not exceed $200 million.  (Sections 204 and 206 of the Senate amendment reduce this amount to fund
options pilot programs and education and research.)
      Requires producers receiving a risk management payment to certify compliance with qualifying risk management practices and
associated costs for the applicable year.
      Authorizes FCIC to conduct random compliance audits.
      Requires the producer to refund a risk management payment where the producer fails to certify compliance or fails to comply with
qualifying risk management practices and subjects the producer to possible debarment for up to 5 years from farm programs cited in section
506(n)(3)(B) of the FCIA.
      Provides that any assignment of benefits be carried out consistent with section 8(g) of the Soil Conservation and Domestic Allotment Act,
and requires the producer give notice of such assignment where FCIC requires.
      Requires FCIC to provide for the fair and equitable sharing of benefits among all producers at risk in the production of a crop.
      Amends section 516(a) by striking paragraph (1) relative to discretionary expenses and inserts a new paragraph (1) relating to the same,
providing that there authorized to be appropriated for fiscal year 1999 and each subsequent fiscal year such sums as are necessary to cover the
salaries and expenses of the FCIC, and the expenses of approved insurance providers in carrying out section 522(c).
      Amends section 516(a) relative to mandatory expenses by adding at the end authorization for risk management payments in an amount
not to exceed $500 million for fiscal years 2001 through 2004, with not more than $200 million for any 1 fiscal year.  (Section 203)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.
 

Fees for Use of New Policies and Plans of Insurance
      The House bill amends section 508(h) by adding a new paragraph (11) relative to fees for new policies and plans of insurance.
      Provides that beginning with fiscal year 2001, a person that develops a policy that does not apply for reimbursement has the right to
receive a fee from another approved insurance provider electing to sell that policy.
      Provides that the second provider may not sell such policy without first reaching a fee agreement with the developer.
      Provides that "new policy" under the paragraph means a policy that was approved by the Board on or after October 1, 2000 and was not
available at the time of approval.  Provides that the fee be determined by the developer subject to the approval of the Board, except the Board
shall approve the fee unless it is unreasonable in relation to research and development costs or it unnecessarily inhibits the use of the policy.
(Section 308)
      The Senate amendment amends section 508(h) of the FCIA by striking paragraph (5) relative to required publication of submissions in
the Federal Register and inserts a new paragraph (5) relative to fees for plans of insurance.
      Provides that, beginning with the 2001 reinsurance year, an approved insurance provider electing to offer a policy that was developed by
another provider and was approved before January 1, 2000 must pay the developer $2 per policy for each of the first 5 crop years, $1 per policy
for each of the next 3 crop years, and 50 cents for each policy in each succeeding crop year.
      Provides that, beginning with the 2001 reinsurance year, an approved insurance provider electing to offer a policy that was developed by
another provider and was approved by the Board on or after January 1, 2000 must pay the developer an amount determined by the developer,
such fee subject to the approval of the Board.  FCIC may not approve fees that would unnecessarily inhibit the use of a policy.
      Requires FCIC to collect and credit fees to approved insurance providers.
      Provides an exception to the general rule relative to fees where an approved insurance provider electing to offer a policy in a state where
the developer of the policy does not do business may pay a fee to offer the policy and that fee may not be refused.
      Amends section 516(b)(1) by adding a new paragraph allowing FCIC to pay fees collected from the insurance fund, and amends section
516(c)(1)(A) to provide for the deposit of such fees collected into the fund. (Section 307)
      The Conference substitute deletes both the House and Senate provisions.
 
 
 

Federal Crop Insurance Improvement Commission
      The Senate amendment provides in lieu of the current section 515 of the FCIA a new section 515 relative to the establishment of a
Federal Crop Insurance Improvement Commission.
      Defines commission as the Federal Crop Insurance Improvement Commission and establishes the same.
      Provides that the commission have 15 members, including the Under Secretary for Farm and Foreign Agricultural Services, the FCIC
manager, the USDA Chief Economist, an employee of OMB appointed by the OMB Director, a representative of the National Association of
Insurance Commissioners, 4 approved insurance providers appointed by the Secretary, 2 agricultural economists from academia appointed by
the Secretary, and 4 representatives of major farm organizations or farmer-owned cooperatives.
      Provides that members be appointed not later than 60 days from enactment and serve for the life of the commission.
      Provides that the commission review and make recommendations relative to the amount of risk approved insurance providers should
bear, whether current reinsurance practices should be continued, the extent to which development of new policies should be undertaken by
private entities, how to focus research and development to include new types of products and products for specialty crops, the progress in
reducing administrative and operating expenses, etc.
      Requires the Under Secretary serving on the commission to serve as chairman and vote in the event of a tie.
      Requires the commission to meet at least 6 times per year and make public records of the commission available at the Office of the
RMA.  Requires that not later than 2 years after enactment the commission submit a report to the House and Senate Agriculture Committees,
with copies to the Secretary and the FCIC Board.  Also, authorizes the commission to make 1 or more interim reports.
      Provides that authority for the commission terminates at the earlier of 60 days after the final report is issued or on September 30, 2004.
      Authorizes to be appropriated such sums as may be necessary.  (Section 310)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.
 

Highly Erodible Land and Wetland Conservation
      The Senate amendment amends sections 1211(3) and 1221(b)(3) of the Food Security Act of 1985 to make producers who fail to
comply with highly erodible land and wetland conservation requirements, respectively, ineligible for crop insurance benefits.  (Section 311)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

Projected Loss Ratio
      The Senate amendment strikes paragraph (2) of section 506(o) of the FCIA relative to loss ratio requirements and inserts a new
paragraph related to the same.
      Requires FCIC to take such actions as are necessary, including the establishment of adequate premiums, to improve the actuarial
soundness of the crop insurance program to achieve a 1.075 loss ratio from October 1, 1998 through the 2001 crop year, and a 1.00 loss ratio
beginning with the 2002 crop year. (Section 312)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.
 

Improved Risk Management Education
            The Senate amendment amends Title IV of the Agricultural Research, Extension, and Education Reform Act of 1998 by adding at the end
section 409 relative to improved risk management education for agricultural producers and provides definitions.
      Requires the Secretary to carry out a program to improve the risk management skills of agricultural producers, to help producers
understand the financial health of their operations, marketing alternatives available, and relevant legal, governmental, environmental, and human
resource issues.
      Requires the Secretary to establish Risk Management Education Coordinating Centers in each of the 5 regions in the country.
      Requires the Secretary to locate a region's center at risk management coordinating office of the Cooperative State Research, Education,
and Extension Service in existence at a land grant college or an appropriate alternative land grant college in the region.  Requires the land grant
college to demonstrate the capacity to carry out program priorities, funding distribution, and reporting requirements.
      Requires each center to establish a coordinating council consisting of 5 members, including public and private organizations, producers,
and a representative of the regional RMA office.
      Requires centers to coordinate the offering of intensive risk management instructional activities for professionals who work with
producers, the provision of educational programs for producers, and the dissemination of risk management education materials.
      Requires centers to make use of emerging risk management information and materials, after an evaluation of suitability is conducted with
the assistance of land grant college personnel and others.
      Requires each center to reserve a portion of funds provided under the section to make special grants to land grant colleges and private
entities in the region to conduct such activities, and requires the reservation of funds to award competitive grants to public and private entities for
such purposes.
      Requires that the National Agriculture Risk Education Library  serve as the central agency for coordination and distribution of education
material and provide for the electronic delivery of the same.
      Authorizes to be appropriated $30 million for fiscal year 2001 and each subsequent fiscal year, requiring 2.5 percent of funds available
be distributed to the Library with the residual funding reserved for the centers.
      Requires the land grant colleges hosting a regional center to administer the funds for the region.  Requires that each center be located in
an existing facility and prohibits the use of funds for new construction.
      Requires the Secretary, acting through the CSREES, to evaluate each center.  (Section 401)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

Termination of Authority
            The Senate amendment provides that the termination of certain authority is effective on September 30, 2004.
      Repeals Senate amendment provided in sections 102, 103, 105, 106, 203(b), and 310 on September 30, 2004, and provides that the
FCIA and NAP shall after this date be administered as if these provisions had not been enacted.
      Provides further conforming amendments to repeal any funding authority provided under the Senate Amendments and prohibits the
Secretary or FCIC from carrying out the provisions after September 30, 2004.
            The House bill has no comparable provision.
            The Conference substitute deletes the Senate provision.

                                           TITLE II—AGRICULTURAL ASSISTANCE

      The Conference substitute includes a new title (Title II) providing agricultural assistance to producers of the 2000 crops and other
assistance:

                                            Subtitle A—Market Loss Assistance

Sec. 201. Market loss assistance.
      To ensure timely delivery of market loss payments to eligible producers and owners, the Managers expect the Secretary to make the
payments available under the same terms and conditions as the 2000 AMTA contract payments.  Market loss payments made under authority of
this legislation shall not be treated as a contract (AMTA) payment for purposes of section 115 of Title I of the Federal Agriculture Improvement
and Reform Act of 1996, or section 1001, paragraphs (1) through (4) of the Food Security Act of 1985.  Further, it should not be necessary to
require eligible owners and operators to file new contracts or redesignate shares in order to receive market loss payments.

Sec. 202. Oilseeds.
      The Managers expect the Secretary to deliver oilseed economic assistance payments to producers in the same manner used to deliver
the 1999 oilseed payments authorized under Title VIII, section 803 of P.L. 106-354.  The Managers note that the Department has taken over
seven months to make payments to eligible producers.  Such delays in delivering crop year 2000 payments are unacceptable.
            The Managers expect that sesame seed will be eligible for assistance under this section.  The Managers note that the Federal
Agricultural Improvement Act of 1996 makes other oilseeds eligible for assistance under section 131of the FAIR Act.  The Managers direct the
Secretary, using his authority under section 102 of the FAIR Act and any other applicable authorities, to ensure that sesame seed producers
may participate in this program under section 202.

Sec. 203. Specialty crops.
      This section provides for infrastructure improvements for growers of specialty crops.  Specifically, the section provides $59.45 million for
the PACA reserve fund and the inspection service reserve fund to maintain the cost of licensing and inspection fees at the current level.  The
section also provides $11.55 million to make improvements to the system used for inspecting fruits and vegetables, including the program and
facilities used to train inspectors; the technological tools used by inspectors; expanding digital imaging technology capabilities; and improving
office space and grading tables.
      This section also provides $200 million to be used by the Secretary to purchase specialty crops that experienced low prices in the 1998
and 1999 crop years, including apples, black-eyed peas, cherries, citrus, cranberries, onions, melons, peaches, potatoes and others.  The
Managers expect the Secretary to ensure that, as provided in subsection (d) of this section, purchases with this funding are in addition to other
purchases made by the Secretary under other authorities.  To the extent practicable, the Managers expect the Secretary to purchase a
significant portion of the commodities purchased under this section directly from farmers or agricultural cooperatives rather than processors.
      This section also provides $25 million to compensate growers for losses resulting from plum pox virus, Pierce’s disease and citrus
canker.
      With respect to the plum pox virus, the Managers expect the Secretary to use at least $5.1 million to compensate growers whose trees
were destroyed as part of the Secretary’s “Declaration of Extraordinary Emergency” dated March 2, 2000, in a manner that covers: net returns
that would have been earned over the remaining life of all the destroyed trees; producers being prevented from replanting for three years; and
lost value of nursery stock.
      With respect to Pierce’s disease, the Managers expect the Secretary to utilize at least $7,140,000 in a manner that enables the
California Department of Food and Agriculture to utilize such funding for state and local efforts to contain and control Pierce's disease which is
devastating agricultural areas in Southern California, and is moving northward into other regions.  Funds are needed immediately to monitor for
the earliest signs of the disease and to inspect nursery stock prior to shipment.  The disease is spread by a vigorous and difficult to control
insect called the glassy-winged sharpshooter.  This insect is a major problem, but the elimination of the insect would not eliminate the disease.
            The Managers are disappointed by the federal response to this outbreak.  It is clear that efforts to control the spread of the disease must
be increased.  It is also clear that there is an immediate need for additional research efforts to study near and long term alternatives for
controlling the bacterium common to Pierce's disease.  The Managers expect the Secretary to initiate such efforts immediately, within existing
resources.
            With respect to citrus canker, the Managers expect the Secretary to utilize remaining funding to compensate citrus growers who have
suffered economic losses due to the disease.
      This section also requires the Secretary, in conjunction with USDA’s Inspector General, to submit a report to Congress that analyzes the
economic losses associated with falsified inspection certificates issued at the Hunts Point Terminal Market, including an analysis of how the
Secretary intends to provide restitution.
      This section also provides loans, up to three years in term, for apple producers that are suffering economic losses resulting from low
prices for apples.

Sec. 204. Other commodities
Subsec. (a) Peanuts.
      This subsection provides economic assistance to peanut producers.  The Managers expect the Secretary to deliver the peanut economic
assistance payments to producers in the same manner used to deliver the 1999 peanut assistance authorized under Title VIII, section 803 of
P.L. 106-354.  The Managers also expect that the same rules that were used and applied to a peanut quota lessor and lessee with respect to
1999 assistance will be used with respect to the delivery of the monies made available under this Act.

Subsec. (b)   Tobacco
      This subsection—
      Provides $340 million to the Secretary to make payments to States from October 1, 2000, to October 20, 2000.  The States shall divide
the funds between quota owners, quota lessees, and tobacco producers;
      Includes language requested from the State of Georgia requiring the State to match the portion of funds provided from this title by the
Federal Government;
            Allows an increase for acreage transfers for dark-fire cured tobacco;
            Allows for an adjustment in the burley noncommitted pool stocks;
            Places limitations on burley carry forward pounds and lease and transfer due to natural disasters;
            Makes a technical correction in the cross county leasing definition of the 1938 Agricultural Adjustment Act; and
            Requires that the Secretary establish a computerized recordkeeping system for burley tobacco quota and acreage.

Subsec. (c)  Honey
      This subsection provides recourse loans for honey producers on the 2000 crop of honey.  The loan rate would equal 85 percent of the
average price of honey during the 5-crop year period preceding the 2000 crop, dropping the year with the highest price and the year with the
lowest price in calculating the average.

Subsec. (d)  Wool and Mohair

      This subsection provides direct payments to producers of wool and mohair for the 1999 marketing year.  The payment rates would be 20
cents per pound for wool and 40 cents per pound for mohair.  The Managers expect the Secretary to make payments under this section in an
equitable manner without regard to size of operation.

Subsec. (e) Cottonseed

            This subsection provides cottonseed assistance to producers and first handlers.  The Managers expect the Secretary to provide
additional assistance to cotton producers and first handlers through direct payments or other means to help alleviate the problems caused by the
unusually low prices.

Sec. 205. Payments in lieu of loan deficiency payments.
      The Managers intend for crop year 2001 producers of wheat, oats and barley on a farm with an AMTA contract who graze the acreage
and forego mechanical harvesting to be eligible for a payment under the same terms and conditions as a producer who harvests a crop and
applies for a loan deficiency payment.  The Managers intend for the producer to enter into a payment agreement with CCC at the loan
deficiency payment rate for the applicable crop in effect on the date of such agreement, at such time as the producer chooses, but not earlier
than the date a producer who normally harvests a crop would make application for a loan deficiency payment and no later than September 30,
2001.  The Managers expect the Secretary to require adequate producer certifications to protect the program from fraud and abuse.  Producers
that certify wheat, oats or barley for grain with either the Farm Service Agency (FSA) or the Risk Management Agency (RMA) and fail to harvest
the crop because of weather conditions and subsequently graze the acreage are not intended to be covered by this provision.  The Managers
expect the Department to immediately publicize this provision in FSA county newsletters.

Sec. 206. Expansion of producers eligible for loan deficiency payments.
      The Managers intend for producers growing an AMTA contract commodity on a farm with no AMTA contract to be eligible for loan
deficiency payments on 2000 crop production subject to the same terms and conditions as applicable to producers on a farm with an AMTA
contract.  Producers eligible for payment under this section are afforded an exception to the beneficial interest provisions for a period of time
that extends for 30 days after the promulgation of regulations. The Managers expect the Department to immediately publicize this provision in
FSA county newsletters.
 

                                                  Subtitle B—Conservation
 

Sec. 211. Conservation assistance.
      Subsection (a) directs USDA to use $10 million for the Farmland Protection Program and allows nonprofit conservation organizations to
hold easements in those states that do not have a state defined farmland protection program.  Subsection (b) directs USDA to use $40 million
to provide soil, water and natural resource conservation assistance for farmers in the form of cost share or incentive payments.  The Managers
believe that farmers and ranchers need additional assistance to address these natural resource problems.
      The Managers agree there is a great demand among the states to keep prime and unique farmland in agricultural production.  The
farmland protection authorization in the 1996 farm bill was immediately over-subscribed, and the $35 million in funds were exhausted in two
years.  Thus, the Managers have provided a $10-million infusion of funds to the farmland protection program.  In addition, new program
participants, such as nonprofit land resource conservation councils, are now able to take part in this initiative.
      This section also provides $40 million to assist farmers and ranchers through cost-share or incentive payments to get proven soil and
water conservation practices on their farms and ranches. In making these funds available, the Managers recognize that the Environmental
Quality Incentives Program (EQIP) has left certain producers in areas of states and regions of the country with little or no federal help.  Although
the funds made available in the conference report are limited, they will be directed at areas that are outside conservation priority areas, where
most of the EQIP funds have been used.  The Managers expect for these funds to be focused on practices that conserve water or improve water
quality.  The Managers believe many water quality concerns can be handled without the time-consuming and expensive development and writing
of whole farm plans.  One or two practices properly completed are the best conservation, which can be applied to the land for water quality or
water conservation.  In that regard, the Managers emphasize that the funds included in this program are only for financial assistance through
cost-share and incentive payments to farmers and ranchers.  It is the intent of the Managers that this program will be carried out using the
conservation operations account funded in annual agriculture appropriations acts.

Sec. 212. Inclusion of farmland in conservation-related areas.

      This section requires the Secretary of the Interior, acting through the Director of the U.S. Fish and Wildlife Service, to prepare an
Environmental Impact Statement (EIS) under the National Environmental Policy Act of 1969 on the proposed National Wildlife Refuge (NWR) on
the Little Darby Creek in Madison and Union Counties, Ohio.  This EIS must be completed before any further development may proceed on the
Little Darby Creek NWR.
 

                                                    Subtitle C—Research
 

Sec. 221. Carbon cycle research.
      This section directs USDA to provide $15 million in Fiscal Year 2001 to the Consortium for Agricultural Soils Mitigation of Greenhouse
Gases for carbon cycle research at the national, regional and local levels.  Additional research is needed in the sequestration of carbon as it
relates to agricultural best management practices and how these practices convert carbon dioxide into soil organic carbon that in turn reduces
soil erosion, improves water quality and increases yields.  Producers and policymakers need a better understanding of the link between the
carbon cycle and agricultural best management practices.  The Managers believe that the storage of carbon may provide additional income to
farmers and ranchers and provide ancillary environmental benefits.

Sec. 222. Tobacco research for medicinal purposes.
      This section directs USDA to provide $3 million in Fiscal Year 2001 to Georgetown University and North Carolina State University for
research regarding the extraction and purification of proteins from genetically altered tobacco that can be used as a vaccine for cervical cancer.

Sec. 223. Research on soil science and forest health management.
      This section directs USDA to provide a grant to the University of Nebraska-Lincoln for laboratories and equipment for research on soil
science and forest health and management.

Sec. 224. Research on waste streams from livestock production.
      This section provides $3.5 million to expand research related to livestock production waste streams. The Managers expect the Secretary
to utilize this funding to focus on technology for reducing, modifying, recycling, and utilizing livestock waste streams in a manner that will allow
scientists to develop and utilize integrated components required for a systems approach to livestock waste and odor research and
development.  This is required to deal with the complex interactions among variables influencing nutrient/contaminant production and
flow-through livestock production systems.  The Managers expect the research goals to include: reducing waste and odor production and
emission; reducing health hazards and improving working conditions in production facilities; improving efficiency of manure handling and
utilization; increasing recycling of nutrients and water; and making livestock production compatible with neighboring individuals and
communities.

Sec. 225. Improved storage and management of livestock and poultry waste.
      This section provides $5,000,000 in fiscal year 2001 for the Secretary to review and assess potential problems associated with livestock
and poultry waste management systems and to study and demonstrate appropriate market-oriented solutions to these potential problems.  As
provided in this section, the Managers expect the Secretary to carry out this review and assessments through grants, contracts, and cooperative
agreements with producers, associations of producers, and foundations supported by producers.

Sec. 226. Ethanol research pilot plant.
            Authorizes and appropriates $14 million to the Secretary for the construction of a corn-based ethanol research pilot plant.

Sec. 227. Bioinformatics Institute for Model Plant Species.
      Authorizes the Secretary to enter into a cooperative agreement with the National Center for Genome Resources in Santa Fe, New
Mexico, New Mexico State University and Iowa State University for the establishment and operation of an institute to be known as the
Bioinformatics Institute for Model Plant Species for the purpose of enhancing the accessibility and utility of genomic information for plant genetic
research.
 

                                             Subtitle D—Agricultural Marketing
 

Sec. 231. Value-added Agricultural Product Market Development Grants.
      This section directs the Secretary to use $15 million to award competitive grants to eligible producers for the purpose of facilitating
greater participation in markets for value-added agricultural commodities.  The Managers expect these grants to fund ventures for a variety of
agricultural commodities.  It is the intent of the Managers that the grants would be made for the purpose of developing business plans for viable
marketing opportunities and the creation of a pilot project resource center to coordinate assistance including research, data, business, legal,
financial and logistical operations.  The Managers expect that the grants would only be awarded if the projects, business ventures, and other
authorized activities are determined to be economically viable and sustainable.  Further, the Mangers expect that grants awarded under this
section will facilitate the opening of new markets for value-added products.  It is not the intention of the Managers that grants made under this
section will interfere with existing markets or be used to fund construction, acquisition, rental, leasing, or any other means of obtaining physical
capacity to produce or process agricultural commodities.
 

                                               Subtitle E—Nutrition Programs
 

Sec. 241. Calulation of Minimum Amount of Commodities for School Lunch Requirements.

      Section 241 directs the Secretary to purchase additional food commodities in fiscal years 2000 and 2001 for distribution to schools
participating in the School Lunch program.

Sec. 242.  School Lunch Data

      Section 242 provides that information obtained for determining eligibility for free and reduced-price school meals in the School Lunch
program may be shared to aid in the enrollment of lower-income children in the State Children’s Health Insurance Program (SCHIP).  This
section also authorizes a pilot project using local agencies operating the Special Supplemental Nutrition Program for Women, Infants, and
Children (the WIC program) to help enroll children in the SCHIP.
 

Sec. 243.  Child and Adult Care Food Program Integrity
 

      Section 243 reforms the Child and Adult Care Food Program (CACFP) to address problems of fraud, abuse, and deficient management
identified in investigations by the General Accounting Office and the Agriculture Department’s Office of Inspector General.  This section also
expands the availability of Federal nutrition assistance for after-school programs and authorizes an additional State to increase participation in
the CACFP by for-profit child care organizations serving lower-income children.
 

Sec. 244.  Adjustments to WIC Program
 

      Section 244 provides adjustments to the WIC program to increase participation by residents of remote Indian or Native villages and
provide a program structure that better serves these communities.
 

                                                Subtitle F—Other Programs
 

Sec. 251. Authority to provide loan in connection with boll weevil eradication.
Section 251 requires the Secretary using the Commodity Credit Corporation to make a loan to the Texas Boll Weevil Eradication Foundation,
Inc., in the amount of $10,000,000.  This loan is to enable the Foundation to retire debt associated with boll weevil eradication zones that have
ended their participation, in whole or in part, in the boll weevil eradication program.
            Repayment for the loan will begin on January 1 of the year following the first year that a boll weevil eradication zone, or any part of the
zone, responsible for the debt retired using the loan resumes participation in the boll weevil eradication program.
            The cost of the credit subsidy of this loan will be the amount necessary to provide the full $10,000,000 loan to the Foundation.  The
Managers expect that the credit subsidy necessary to implement the total $10,000,000 loan will be approximately 51%.  However, the Managers
expect USDA to use whatever amount of subsidy is necessary to make the $10,000,000 loan.
            The Managers expect that this loan to the Texas Boll Weevil Eradication Foundation, Inc., will retire its debt to Farm Credit System
institutions associated with the Lower Rio Grande Valley Boll Weevil Eradication Zone and that portion of the debt associated with the South
Texas Winter Garden Zone apportioned to Austin, Brazoria, Colorado, Fort Bend, Jackson, Matagorda, and Wharton Counties by the Texas
Commissioner of Agriculture.  This loan will provide funds to be used by the Foundation for full and final satisfaction, on a pro-rata basis, of the
notes relating to the debt held by those Production Credit Associations and the Farm Credit Bank of Texas.  The Managers expect that upon
payment of the notes from the funds provided by this loan, that the Texas Boll Weevil Eradication Foundation, Inc., will be released from any and
all claims, liabilities, or obligations associated with or evidenced by the notes.

Sec. 252. Animal disease control.
       Subsection (a) directs USDA to spend $7 million in Fiscal Year 2001 for psuedorabies vaccination costs incurred by pork producers.
Subsection (b) directs USDA to spend $6 million in Fiscal Year 2001 on bovine tuberculosis in Michigan.  Funding shall be used for surveillance
and testing of cattle; surveillance and testing of wildlife; research at ARS and Michigan State University; increases in indemnity payments to
encourage depopulation of infected herds; diagnostic testing and treatment of humans; slaughter surveillance; controlling and preventing
exposure of livestock to wildlife; fencing to minimize contact between wildlife and domestic livestock; and risk communications and
improvements in technology for communications.  Current laws stipulate that funding for Animal and Plant Health Inspection Service of the U.S.
Department of Agriculture eradication programs is to be withdrawn from existing Commodity Credit Corporation funds.  The Managers intend
for eradication program funding to continue to be extracted from Commodity Credit Corporation funds.

Sec. 253. Emergency loans for seed producers.
      This section directs USDA to provide non-interest loans to producers of 1999 crop grass, forage, vegetable and sorghum seed that have
not received payments from AgriBiotech (ABT) as a result of bankruptcy proceedings involving ABT. ABT, one of the largest single turf, forage,
and alfalfa seed companies in the country, filed Chapter 11 bankruptcy affecting over 1200 farmer growers in 39 states.  ABT cannot pay
growers for their 1999 produced crop and the growers are the largest segment of creditors in the bankruptcy.  This section directs the Secretary
to create an emergency no-interest loan program for those producers involved in the bankruptcy proceedings.  For the producer to be eligible,
the seed producer must have a claim in the bankruptcy proceeding.  The Managers believe that this situation is unique as ABT is an
organization of numerous small family producers who will be adversely impacted financially by this bankruptcy proceedings.
 

Sec. 254. Temporary suspension of authority to combine certain offices.
      The Managers expect the Secretary to submit a detailed report regarding the justification used to select a state office collocation site in
each of the applicable states.  The Managers expect the Secretary to notify all applicable Agencies that no agency or agency employee shall
take any action to solicit office space or renovate current leased space for the purpose of accommodating collocated agencies or take any other
action to collocate state offices from the date of enactment of this Act through June 1, 2001.  The Managers expect those state agencies that
are scheduled for collocation and located in the same county on the date of enactment to continue to pursue efforts to collocate.  The Managers
expect the report to be inclusive of all factors used in the selection of the site, including the methodology used in the site selection.

Sec. 255. Farm operating loan eligibility.
     This section affects the Secretary of Agriculture’s administration of the loan eligibility limitations of sections 311 and 319 of the Consolidated
Farm and Rural Development Act.  Current law makes borrowers who have had a number of direct or guaranteed operating loans from the Farm
Service Agency (FSA) ineligible for additional seasonal operating loans.
     The Managers understand that previous policy was intent on limiting loans to long-time borrowers in an effort to graduate them to other
sources of credit.  The intent was to free up credit resources for beginning, socially-disadvantaged and minority farmers and ranchers during a
period when fewer appropriations were being made for federal farm loan programs.  However, because of the recent downturn in the farm
economy caused by low prices, the Managers are concerned that some farmers may be turned away from the FSA.  The only reason that
otherwise efficient farmers cannot get credit from FSA is because of an arbitrary term limit in the law.  While the Managers believe this change
is needed at this time, the amendment extends only through December 31, 2002, which should provide ample time for the Congress to fully
reexamine this matter in the context of the next farm bill.

Sec. 256. Water systems for rural and Native villages in Alaska.
      This section amends section 306D of the Consolidated Farm and Rural Development Act by increasing the authorization of
appropriations from $20,000,000 to $30,000,000 for water and wastewater systems for rural and native villages in Alaska.  Also authorizes a
transfer of up to two percent of the funds for training and technical assistance programs that are related to the operation and management of the
systems.

Sec. 257. Crop and pasture flood compensation program.
      Directs the Secretary to compensate producers for the loss of cropland or pastureland due to unusual flooding.  This assistance is
targeted to producers who are still experiencing flooding, but have not been compensated for loses between time of enactment and the Flood
Compensation Program authorized by the 1998 omnibus appropriations bill, using that program’s framework and base year. The section sets a
specific framework on the compensation.  Acres on which crops were planted but failed are not eligible.  A payment limitation of $40,000 is
included.
      The Managers encourage the Department to take all necessary administrative actions to ensure the availability of no less than 4 million
acres for partial field conservation buffer enrollments within the existing Conservation Reserve Program. Also, the Committee encourages the
Department to extend stewardship incentive payments to contour grass strips and cross wind trap strips, as well as any additional conservation
practices that may be made eligible for the continuous sign-up or conservation reserve enhancement programs
     This section also includes a technical correction to the fiscal year 2000 agricultural appropriations act to specifically include Lake County,
Oregon as being eligible for assistance that was made available under that act.  The Managers are aware that producers in Lake County have
faced a similar disastrous situation, but were inadvertently left out of the fiscal year 2000 agriculture appropriations section.  The Managers are
also aware that, under the fiscal year 2000 agricultural appropriations act, there are still funds available in this fiscal year to assist ranchers in
Lake County, and this section provides the necessary authority for the Secretary of Agriculture to move forward with that assistance.  The
Managers expect the Secretary to provide that assistance as soon as possible.

Sec. 258.  Flood Mitigation Near Pierre, South Dakota.

            This section requires the Army Corps of Engineers to, as soon as practicable after enactment, begin acquiring land and property from
willing sellers; relocate individuals located on the land, improve infrastructure, and take other necessary actions with respect to such property.
            This section also conditions winter releases of the Oahe Powerplant on the Secretary of the Army completing an amendment to his
economic analysis and identifying mitigation benefits with respect to existing ground water flooding.

Sec. 259.  Restoration of Eligibility for Crop Loss Assistance.

            This section restores the eligibility for individuals otherwise eligible for disaster assistance under section 1102 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of
Public Law 105-277; 7 U.S.C. 1421, solely because the individual or entity changed the legal structure of the individual’s or entity’s farming
operation.
 
 
 

                                                 Subtitle G—Administration

Sec. 261. Funding.
      Includes the funding amount for various sections in the bill.

Sec. 262. Obligation period.
      Provides that the Commodity Credit Corporation shall obligate and spend the funds made available under section 261(a)(1)  (funding for
school lunch commodities) only during fiscal year 2000 and funds made available to fund other provisions of the bill shall be obligated and spent
only during fiscal year 2001.

Sec. 263. Regulations.
      Directs the Secretary and the Commodity Credit Corporation, whichever is appropriate, to promulgate regulations to implement Title II of
the legislation without regard to notice and comment rulemaking.
      The Managers have provided the Secretary relief from several statutory provisions relating to the promulgation of regulations needed to
carry out title II.  This language is the same as provisions passed by Congress in prior legislation for farmers.  The Managers are particularly
troubled by the fact that, even with these waivers, the Department has been unable to implement programs in a timely manner in prior years,
most notably the oilseed assistance that was provided by Congress in October of 1999 but has yet to be distributed.  In order to assist
Congress in future deliberations the Managers expect the Inspector General to complete a report for submission to both Agriculture Committees
with 60 days of enactment of this Act addressing the reasons for the inability of the Department to implement programs in a timely manner.

Sec. 264. Paygo adjustment.
      Prohibits the Director of the Office of Management and Budget from making any estimates of changes in direct spending outlays and
receipts in fiscal year 2000 resulting from enactment of Title II of the legislation.

Sec. 265. Commodity Credit Corporation Reimbursement.
            This section specifically directs the Secretary of the Treasury to reimburse the Commodity Credit Corporation for net realized losses
sustained, but not previously reimbursed, under this title.

                                 Title III--The Biomass Research and Development Act of 2000

      The Conference substitute adopts a new title which authorizes research to promote the conversion of biomass into biobased industrial
products:
 

Section 301.  Short Title

       The Biomass Research and Development Act.

Section 302.  Findings.
      States the need for a focused, integrated and innovation-driven research effort to develop technologies for the production of biobased
industrial products

Section 303.  Definitions.
      Defines the terms Advisory Committee, Biobased Industrial Product, Biomass, Board, Initiative, Institution of Higher Education, National
Laboratory, Point of Contact, Processing, and Research and Development.

Section 304.  Cooperation and Coordination in Biomass Research and Development.
      Requires that the Secretaries of Agriculture and Energy shall cooperate and coordinate policies and procedures that promote biomass
research and development leading to the production of biobased industrial products.  Specifies the purpose and areas for coordination.

Section 305.  Biomass Research and Development Board.
      Establishes a board to coordinate programs, to maximize benefits and to bring coherence to strategic planning within and among
departments and agencies of the Federal Government to promote the use of biobased industrial products.  The Board shall be comprised of a
minimum of six members.  The Board shall be cochaired by the points of contact appointed by the Secretaries of Agriculture and Energy by and
with the advice and consent of the Senate.

Section 306.  Biomass Research and Development Technical Advisory Committee.
      Establishes an advisory committee to advise the Secretaries of Agriculture USDA and the Department of Energy DOE and the Biomass Research and
Development Board, to facilitate consultations and partnerships, and to evaluate and perform strategic planning for the Biomass Research and Development
Initiative.  The Committee shall be comprised of a minimum of ten members, all appointed by the points of contact.  The Committee will meet at least
quarterly.  Lengths of terms are specified.

Section 307. Biomass Research and Development Initiative.
      Provides that the Secretaries of Agriculture and Energy, in consultation with the Board, shall establish a Biomass Research and
Development Initiative under which competitively awarded grants, contracts and financial assistance are provided to, or entered into, with
eligible entities to carry out research and development of low cost and sustainable biobased industrial products.  Provides that funds
appropriated for biomass research and development under the general authority of the Secretary of Energy to conduct research and
development programs may be used to carry out this title. Also authorizes $ 49,000,000 within USDA for each of fiscal years 2000 through 2005
to carry out this title.

Section 308.  Administrative Support and Funds.
      Provides the Secretaries of Agriculture and Energy, and other agencies, the authority to give administrative support and funds to the
Board and Advisory Committee if needed.

Section 309.  Reports.
      Requires that an initial report be jointly submitted by the Secretaries of Agriculture and Energy within 180 days of enactment of the Act
and that an annual report be submitted to Congress for each fiscal year for which funds are made available.

Section 310.  Termination of Authority.
Authority granted by this title shall terminate on December 31, 2005.
 

                                                 TITLE IV – Plant Protection
 

            The Conference substitute adopts a new provision which consolidates and enhances the authority of the Secretary to regulate in
interstate and foreign commerce, the movement of any plant, plant product, biological control organism, or noxious weed if the Secretary
determines the action is necessary to prevent the introduction or dissemination of a plant pest or noxious weed:

Sec. 401.  Short Title and Table of Contents.
      The short title of this Act is the “Plant Protection Act.”  This section also contains the table of contents for the Act.

Sec. 402.  Findings.

Sec. 403.  Definitions.
      Sections 3(1), (3)-(8), (11), (17), and (19) are all new definitions, but are commonly accepted definitions for the words, “article,” “enter and
entry,” “export and exportation,” “import and importation,” “interstate,” “interstate commerce,” “means of conveyance,” “permit,” “State,” and “this
Act.”
            Sec. 403(2) is new.  Defining biological control organisms separately makes our authority over these organisms explicit when they
present a potential plant pest risk.
            Sec. 403(9), (12), (13), (15), (16), and (20), “move and related terms,” “person,” “plant,” “plant product,” “Secretary,” and “United States”
have all been derived from existing law with little or no modification.
            Sec. 403(10), “noxious weed,” has been expanded from existing law.
            Sec. 403(14), “plant pest,” has been expanded to include all vertebrate and invertebrate animals, except humans.
            Sec. 403(18), “systems approach,” is new.
 

Subtitle A – Plant Protection
 

Sec. 411.  Regulation of Movement of Plant Pests.
       Prohibits the importation, entry, exportation, or movement in interstate commerce, mailing, or delivery (from any post office or by any mail
carrier) of any plant pest unless the movement is in accordance with regulations issued by the Secretary.  All processes used to develop such
regulations will be transparent and accessible and the regulations will be based on sound science.  This provision does not authorize the
opening of any mail unless such action is authorized under postal laws.  This section would authorize the Secretary to issue regulations that allow
the movement of a plant pest in interstate commerce without restriction.  Also provides for a petition process to add or remove plant pests from
regulation.
 

Sec. 412.  Restrictions on Movement.
      Authorizes the Secretary to prohibit or restrict the importation, entry, exportation, or movement in interstate commerce of any plant, plant
product, biological control organism, noxious weed, article, or mean of conveyance if the Secretary determines the action is necessary to
prevent the introduction or dissemination of a plant pest or noxious weed.  Within 1 year after the Act is enacted, the Secretary shall publish for
public comment a notice describing the processes governing such import requests.  Requires the Secretary to conduct a study of the
effectiveness of using systems approaches to guard against the introduction into the United States of plant pathogens associated with
proposals for imported plants or plant products.  Not later than 2 years after the Act is enacted, the Secretary shall report to Congress on the
results of this study.  Authorizes the Secretary to determine by regulation those noxious weeds and biological control organisms that may or may
not freely move within interstate commerce.  A person may petition the Secretary to add or remove individual plant species or biological control
organisms from such regulations.
 

Sec. 413. Notification and Holding Requirements Upon Arrival.
      Requires the Secretary of Treasury to notify promptly the Secretary of Agriculture of the arrival of plants, plant products, biological control
organisms, plant pests, or noxious weeds at the port of entry.  It also requires the Secretary of Treasury to hold the articles until the Secretary of
Agriculture has inspected or otherwise released them.
            Further, section 413 requires persons responsible for articles for which a permit under sections 411 or 412 to notify the Secretary of
Agriculture or appropriate official in the State of destination of relevant information concerning the shipment before moving it from the port of
entry.  Finally, section 413 prohibits the movement of any imported plant, plant product, biological control organism, plant pest, noxious weed,
article, or means of conveyance from the port of entry or interstate unless it has been inspected or otherwise released by the Secretary of
Agriculture.
 

Sec. 414.  Remedial Measures.
      Section 414 authorizes the Secretary to hold, seize, quarantine, treat, apply other remedial measures to, destroy, or dispose of any plant;
plant pest; noxious weed; biological control organism; plant product; article; or means of conveyance; and progeny of any plant product, plant
pest, biological control organisms, or noxious weed in interstate or foreign commerce under various circumstances in order to prevent the
dissemination of any plant pest or noxious weed new to or not known to be widely prevalent or distributed in the United States.  Authorizes the
Secretary to order an owner (including the owner’s agent) of any item subject to action under subsection (a) to treat, apply other remedial
measures, to destroy, or otherwise dispose of such item without cost to the Federal Government in a manner the Secretary deems appropriate.
If the owner fails to take action as ordered, the Secretary may take the action and recover the costs of the actions from the owner or his agent.
The Secretary is authorized to develop a classification system and integrated management plan regarding noxious weeds.  Requires the
Secretary to take the least drastic action to prevent the dissemination of a plant pest or noxious weed.
 

Sec. 415.  Declaration of Extraordinary Emergency.
      Authorizes the Secretary to declare an extraordinary emergency in certain situations.  Once an extraordinary emergency is declared, the
Secretary can take actions to prohibit or restrict movement or require that other actions be taken concerning regulated items regardless of
whether the items are moving in interstate commerce.  Action can be taken only if the Secretary finds that the actions taken by the State are not
adequate and the Secretary publishes those findings in the Federal Register.  Actions the Secretary takes must also be the least drastic actions
that are feasible to deal with the plant pest or noxious weed problem.  Finally, the Secretary is authorized to pay compensation for economic
losses.
 

Sec. 416.  Recovery of Compensation for Unauthorized Activities.
      Authorizes the owners of plants, biological control organisms, plant products, plant pests, noxious weeds, articles, or means of
conveyance destroyed or disposed of under section 414 or 415 to bring an action not later than 1 year after the destruction or disposal in U.S.
district court and for the owner to recover just compensation for an unauthorized destruction or disposal of such property.
 

Sec. 417.  Control of Grasshoppers and Mormon Crickets.
      Subject to the availability of funding, the Secretary shall carry out control programs for grasshoppers and Mormon crickets on Federal,
State, and private lands to protect rangeland.  Authorizes the pooling of funds between the Department of Agriculture and the Department of the
Interior to conduct such programs on Federal lands controlled by the Department of the Interior.  This section also provides the formula for the
Federal cost share for treatment programs.
 

Sec. 418.  Certification for Exports.
      Authorizes the Secretary to certify for export plants, plant products, and biological control organisms as to freedom from plant pests or
noxious weeds or exposure to plant pests or noxious weeds according to phytosanitary or other requirements of the exporting country.
 

                                                Subtitle B – Inspection and Enforcement
 

Sec. 421.  Inspections, Seizures, Warrants.
      Authorizes warrantless inspections based on guidelines approved by the Attorney General: (1) of persons or means of conveyance
moving into the United States to determine whether they are carrying any regulated material; (2) of persons or means of conveyance moving
interstate upon probable cause to believe that they are carrying regulated material; and (3) of any person or means of conveyance moving
intrastate under extraordinary emergency conditions (see section 415) upon probable cause to believe that they are carrying regulated material.
The Secretary is also authorized to enter premises with a warrant issued by a Federal judge to make inspections and seizures necessary under
the Act.
 

Sec. 422.  Collection of Information.
      Authorizes the Secretary to gather and compile information and to conduct investigations necessary for the administration and
enforcement of the Act.

Sec. 423.  Subpoena Authority.  Authorizes the Secretary to require the attendance of witnesses and production of documentary evidence
through the use of subpoenas to aid in investigations and proceedings.  This provision also authorizes the Secretary to request the Attorney
General to take actions to enforce such subpoenas.
 

Sec. 424.  Penalties for Violation.
       Allows for criminal penalties as provided under Title 18 of the U.S. Code for knowing violations of the Act or any misuse of a permit,
certificate, or other document.  It also provides for civil penalties for violations of the Act, including forging, counterfeiting, using in an
unauthorized manner, altering, defacing, or destroying any certificate, permit, or document provided for under the Act not to exceed the greater
of: (1) $50,000 for an individual, $250,000 for any other violation by a person, and $500,000 for all violations adjudicated in the same
proceeding, or (2) twice the gross gain or gross loss associated with the violation.  The penalty has been increased from $1,000 per violation.
Finally, section 204 authorizes the issuance of a notice of warning in lieu of criminal prosecution.
 

Sec. 425.  Attorney General Enforcement Actions.
      Authorizes the Attorney General to prosecute criminal violations of the Act; bring an action to enjoin violation of or compel compliance
with the Act; or bring an action for recovery of reimbursable funds, civil penalties, late payment penalties, or interest that has not been paid.
 

Sec. 426.  Court Jurisdiction.
 Delineates the jurisdiction of courts in most cases arising under the Act.
 

Subtitle C – Miscellaneous Provisions
 
 

Sec. 431.  Cooperation.
      Authorizes the Secretary to cooperate with other Federal agencies, States or their political subdivisions, foreign governments or their
political subdivisions, domestic or international organizations or associations, or other persons to carry out the Act.  Section 301 authorizes the
Secretary to transfer biological control technology to States, Federal agencies, or other persons for use in control of plant pests or noxious
weeds.  Section 301 also authorizes cooperation with States and other persons in the administration of programs for the improvement of plants,
plant products, and biological control organisms.  Finally, Section 431 authorizes the Secretary to ensure that all phytosanitary import/export
issues are addressed based on sound science and consistent with applicable international agreements.
 

Sec. 432.  Buildings, Land, People, Claims, and Agreements.
       Authorizes the Secretary to acquire and maintain real or personal property for special purposes; to enter into contracts, cooperative
agreements, memoranda of understanding, and other agreements; to employ any person; or to make grants necessary for carrying out this Act.
Section 432 also authorizes the payment of tort claims when the claims arise outside the United States in connection with activities authorized
by this Act.  Claims must be presented in writing within 2 years after the claim accrues.

Sec. 433.  Reimbursable Agreements.
      Authorizes the Secretary to enter into reimbursable fee agreements for preclearance at locations outside the United States for plants,
plant products, biological control organisms, and articles.  Funds collected are credited to accounts established by the Secretary and remain
available until expended.  Section 433 also authorizes the Secretary to pay employees performing inspection, quarantine, or other services
relating to imports and exports for all overtime, night, or holiday work and to require the person for whom the service is performed to reimburse
the Secretary for the services.
 

Sec. 434.  Regulations and Orders.
      Authorizes the Secretary to issue orders and regulations necessary to carry out this Act.
 

Sec. 435.  Protection for Mail Handlers.
      This Act shall not apply to any employee of the United States in the performance of the duties of the employee in handling the mail.
 

Sec. 436.  Preemption.
      Provides that no State or political subdivision may take an action to regulate in foreign commerce any article or means of conveyance,
plant, biological control organism, plant pest, noxious weed, or plant product in order to control or eradicate a plant pest or noxious weed, or
prevent the introduction or dissemination of a biological control organism, plant pest, or noxious weed.
      Similarly, no State or political subdivision may take an action to regulate interstate commerce different from Federal regulations in any of
the delineated items; control a plant pest or noxious weed; eradicate a plant pest or noxious weed; or prevent the introduction or dissemination
of a biological control organism, plant pest, or noxious weed if the Secretary has issued a regulation or order to prevent the dissemination of the
biological control organism, plant pest, or noxious weed.  However, if State or local officials can demonstrate a special local circumstance, they
can petition the Secretary to allow for the imposition of additional prohibitions or restrictions by the State or local government.
 

Sec. 437.  Severability.
      Contains standard severability language.

Sec. 438.  Repeals.
      Enumerates the list of laws being repealed and replaced by this Act.
 

                                              Subtitle D –Authorizations of Appropriations
 
 

Sec. 441.  Authorization of Appropriations.
      Authorizes the appropriation of such amounts necessary to carry out this Act.  Unless specifically authorized, no part of appropriated
funds shall be used for indemnification purposes.
 

Sec. 442.  Transfer Authority.
      Authorizes the Secretary to transfer funds without fiscal year limitation from any agency or corporation of the Department to arrest, control,
eradicate, and/or prevent the spread of a plant pest or noxious weed in connection with a threatening agricultural emergency.
 

                                                     Title V – Inspection Animals
 
 

Sec. 501.  Inspection Animal Civil Penalties.
      Provides for civil penalties of up to $10,000 for causing harm to or interfering with a Department of Agriculture inspection animal.

Sec. 502.  Inspection Animal Subpoena Authority.
      Authorizes the Secretary to require the attendance of witnesses and production of documentary evidence through the use of subpoenas
to aid in investigations and proceedings.  This provision also authorizes the Secretary to request the Attorney General to take actions to enforce
such subpoenas.
 
 
 
 
 

[1]   In general, the Statement of Managers is arranged in order by title of the conference substitute, and by the House bill within the title.