79 006                                 

                            106 th Congress                             

                                 Report                                 

                                                                            

                                                                             

                        HOUSE OF REPRESENTATIVES                        

                               2d Session                               

                                106 639                                 

                                                                        



                       AGRICULTURAL RISK PROTECTION ACT OF 2000                



                                                                         

                  May  24, 2000.--Ordered to be printed                  

                                                                         

 Mr.  Combest , from the committee of conference, submitted the following

                            CONFERENCE REPORT                            

                         [To accompany H.R. 2559]                        


     The committee of conference on the disagreeing votes of the two      
  Houses on the amendment of the Senate to the bill (H.R. 2559), to amend 
  the Federal Crop Insurance Act to strengthen the safety net for         
  agricultural producers by providing greater access to more affordable   
  risk management tools and improved protection from production and income
  loss, to improve the efficiency and integrity of the Federal crop       
  insurance program, and for other purposes, having met, after full and   
  free conference, have agreed to recommend and do recommend to their     
  respective Houses as follows:                                           
     That the House recede from its disagreement to the amendment of the  
  Senate and agree to the same with an amendment as follows:              
     In lieu of the matter proposed to be inserted by the Senate          
  amendment, insert the following:                                        

          SECTION 1. SHORT TITLE; TABLE OF CONTENTS.                              

     (a) Short Title.--This Act may be cited as the ``Agricultural Risk   
  Protection Act of 2000''.                                               
     (b) Table of Contents.--The table of contents of this Act is as      
  follows:                                                                

                              TITLE I--CROP INSURANCE COVERAGE                    

                             SUBTITLE A--CROP INSURANCE COVERAGE                  

      Sec. 101. Premium schedule for additional coverage.                     

      Sec. 102. Premium schedule for other plans of insurance.                

      Sec. 103. Catastrophic risk protection.                                 

      Sec. 104. Administrative fee for additional coverage.                   

      Sec. 105. Assigned yields and actual production history adjustments.    

      Sec. 106. Review and adjustment in rating methodologies.                

      Sec. 107. Quality adjustment.                                           

      Sec. 108. Double insurance and prevented planting.                      

      Sec. 109. Noninsured crop disaster assistance program.                  

                           SUBTITLE B--IMPROVING PROGRAM INTEGRITY                

      Sec. 121. Improving program compliance and integrity.                   

      Sec. 122. Protection of confidential information.                       

      Sec. 123. Good farming practices.                                       

      Sec. 124. Records and reporting.                                        

                           SUBTITLE C--RESEARCH AND PILOT PROGRAMS                

      Sec. 131. Research and development.                                     

      Sec. 132. Pilot programs.                                               

      Sec. 133. Education and risk management assistance.                     

      Sec. 134. Options pilot program.                                        

                                 SUBTITLE D--ADMINISTRATION                       

      Sec. 141. Relation to other laws.                                       

      Sec. 142. Management of Corporation.                                    

      Sec. 143. Contracting for rating of plans of insurance.                 

      Sec. 144. Electronic availability of crop insurance information.        

      Sec. 145. Adequate coverage for States.                                 

      Sec. 146. Submission of policies and materials to Board.                

      Sec. 147. Funding.                                                      

      Sec. 148. Standard Reinsurance Agreement.                               

                                  SUBTITLE E--MISCELLANEOUS                       

      Sec. 161. Limitation on revenue coverage for potatoes.                  

      Sec. 162. Crop insurance coverage for cotton and rice.                  

      Sec. 163. Indemnity payments for certain producers.                     

            Sec. 164. Sense of Congress regarding the Federal crop insurance  
      program.                                                                
            Sec. 165. Sense of Congress on rural America, including minority  
      and limited-resource farmers.                                           
                       SUBTITLE F--EFFECTIVE DATES AND IMPLEMENTATION             

      Sec. 171. Effective dates.                                              

      Sec. 172. Regulations.                                                  

      Sec. 173. Savings clause.                                               

                              TITLE II--AGRICULTURAL ASSISTANCE                   

                             SUBTITLE A--MARKET LOSS ASSISTANCE                   

      Sec. 201. Market loss assistance.                                       

      Sec. 202. Oilseeds.                                                     

      Sec. 203. Specialty crops.                                              

      Sec. 204. Other commodities.                                            

      Sec. 205. Payments in lieu of loan deficiency payments.                 

      Sec. 206. Expansion of producers eligible for loan deficiency payments. 

                                  SUBTITLE B--CONSERVATION                        

      Sec. 211. Conservation assistance.                                      

            Sec. 212. Condition on development of Little Darby National       
      Wildlife Refuge, Ohio.                                                  
                                    SUBTITLE C--RESEARCH                          

      Sec. 221. Carbon cycle research.                                        

      Sec. 222. Tobacco research for medicinal purposes.                      

      Sec. 223. Research on soil science and forest health management.        

      Sec. 224. Research on waste streams from livestock production.          

            Sec. 225. Improved storage and management of livestock and poultry
      waste.                                                                  
      Sec. 226. Ethanol research pilot plant.                                 

      Sec. 227. Bioinformatics Institute for Model Plant Species.             

                             SUBTITLE D--AGRICULTURAL MARKETING                   

      Sec. 231. Value-added agricultural product market development grants.   


                               SUBTITLE E--NUTRITION PROGRAMS                     

            Sec. 241. Calculation of minimum amount of commodities for school 
      lunch requirements.                                                     
      Sec. 242. School lunch data.                                            

      Sec. 243. Child and adult care food program integrity.                  

      Sec. 244. Adjustments to WIC program.                                   

                                 SUBTITLE F--OTHER PROGRAMS                       

            Sec. 251. Authority to provide loan in connection with boll weevil
      eradication.                                                            
      Sec. 252. Animal disease control.                                       

      Sec. 253. Emergency loans for seed producers.                           

      Sec. 254. Temporary suspension of authority to combine certain offices. 

      Sec. 255. Farm operating loan eligibility.                              

      Sec. 256. Water systems for rural and Native villages in Alaska.        

      Sec. 257. Crop and pasture flood compensation program.                  

      Sec. 258. Flood mitigation near Pierre, South Dakota.                   

      Sec. 259. Restoration of eligibility for crop loss assistance.          

                                 SUBTITLE G--ADMINISTRATION                       

      Sec. 261. Funding.                                                      

      Sec. 262. Obligation period.                                            

      Sec. 263. Regulations.                                                  

      Sec. 264. Paygo adjustment.                                             

      Sec. 265. Commodity Credit Corporation reimbursement.                   

                   TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000        

      Sec. 301. Short title.                                                  

      Sec. 302. Findings.                                                     

      Sec. 303. Definitions.                                                  

            Sec. 304. Cooperation and coordination in biomass research and    
      development.                                                            
      Sec. 305. Biomass Research and Development Board.                       

      Sec. 306. Biomass Research and Development Technical Advisory Committee.

      Sec. 307. Biomass Research and Development Initiative.                  

      Sec. 308. Administrative support and funds.                             

      Sec. 309. Reports.                                                      

      Sec. 310. Termination of authority.                                     

                               TITLE IV--PLANT PROTECTION ACT                     

      Sec. 401. Short title.                                                  

      Sec. 402. Findings.                                                     

      Sec. 403. Definitions.                                                  

                                SUBTITLE A--PLANT PROTECTION                      

      Sec. 411. Regulation of movement of plant pests.                        

            Sec. 412. Regulation of movement of plants, plant products,       
      biological control organisms, noxious weeds, articles, and means of     
      conveyance.                                                             
      Sec. 413. Notification and holding requirements upon arrival.           

            Sec. 414. General remedial measures for new plant pests and       
      noxious weeds.                                                          
            Sec. 415. Declaration of extraordinary emergency and resulting    
      authorities.                                                            
      Sec. 416. Recovery of compensation for unauthorized activities.         

      Sec. 417. Control of grasshoppers and mormon crickets.                  

      Sec. 418. Certification for exports.                                    

                           SUBTITLE B--INSPECTION AND ENFORCEMENT                 

      Sec. 421. Inspections, seizures, and warrants.                          

      Sec. 422. Collection of information.                                    

      Sec. 423. Subpoena authority.                                           

      Sec. 424. Penalties for violation.                                      

      Sec. 425. Enforcement actions of attorney general.                      

      Sec. 426. Court jurisdiction.                                           

                            SUBTITLE C--MISCELLANEOUS PROVISIONS                  

      Sec. 431. Cooperation.                                                  

      Sec. 432. Buildings, land, people, claims, and agreements.              

      Sec. 433. Reimbursable agreements.                                      

      Sec. 434. Regulations and orders.                                       

      Sec. 435. Protection for mail handlers.                                 

      Sec. 436. Preemption.                                                   

      Sec. 437. Severability.                                                 

      Sec. 438. Repeal of superseded laws.                                    

                         SUBTITLE D--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 441. Authorization of appropriations.                              

      Sec. 442. Transfer authority.                                           

                                 TITLE V--INSPECTION ANIMALS                      

      Sec. 501. Civil penalty.                                                

      Sec. 502. Subpoena authority.                                           


           TITLE I--CROP INSURANCE                                                 

           Subtitle A--Crop Insurance Coverage                                     

          SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.                     

     (a) Expected Market Price.--Section 508(c) of the Federal Crop       
  Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5)   
  and inserting the following:                                            
     ``(5)  Expected market price.--                                       

       ``(A) Establishment or approval.--For the purposes of this title,   
   the Corporation shall establish or approve the price level (referred to 
   in this title as the `expected market price') of each agricultural      
   commodity for which insurance is offered.                               
       ``(B) General rule.--Except as otherwise provided in subparagraph   
   (C), the expected market price of an agricultural commodity shall be not
   less than the projected market price of the agricultural commodity, as  
   determined by the Corporation.                                          
       ``(C) Other authorized approaches.--The expected market price of an 
   agricultural commodity--                                                
       ``(i) may be based on the actual market price of the agricultural   
   commodity at the time of harvest, as determined by the Corporation;     
       ``(ii) in the case of revenue and other similar plans of insurance, 
   may be the actual market price of the agricultural commodity, as        
   determined by the Corporation;                                          
       ``(iii) in the case of cost of production or similar plans of       
   insurance, shall be the projected cost of producing the agricultural    
   commodity, as determined by the Corporation; or                         
       ``(iv) in the case of other plans of insurance, may be an           
   appropriate amount, as determined by the Corporation.''.                
     (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance   
  Act (7 U.S.C. 1508(d)) is amended--                                     
       (1) in paragraph (2), by striking subparagraphs (B) and (C) and     
   inserting the following:                                                
       ``(B) In the case of additional coverage equal to or greater than 50
   percent of the recorded or appraised average yield indemnified at not   
   greater than 100 percent of the expected market price, or a comparable  
   coverage for a policy or plan of insurance that is not based on         
   individual yield, the amount of the premium shall--                     
       ``(i) be sufficient to cover anticipated losses and a reasonable    
   reserve; and                                                            
       ``(ii) include an amount for operating and administrative expenses, 
   as determined by the Corporation, on an industry-wide basis as a        
   percentage of the amount of the premium used to define loss ratio.'';   
   and                                                                     
     (2) by adding at the end the following:                               

       ``(3) Performance-based discount.--The Corporation may provide a    
   performance-based premium discount for a producer of an agricultural    
   commodity who has good insurance or production experience relative to   
   other producers of that agricultural commodity in the same area, as     
   determined by the Corporation.''.                                       
     (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop         
  Insurance Act (7 U.S.C. 1508(e)(2)) is amended--                        
       (1) in the matter preceding the subparagraphs, by striking ``The    
   amount'' and inserting ``Subject to paragraph (4), the amount''; and    
     (2) by striking subparagraphs (B) and (C) and inserting the following:

       ``(B) In the case of additional coverage equal to or greater than 50
   percent, but less than 55 percent, of the recorded or appraised average 
   yield indemnified at not greater than 100 percent of the expected market
   price, or a comparable coverage for a policy or plan of insurance that  
   is not based on individual yield, the amount shall be equal to the sum  
   of--                                                                    
       ``(i) 67 percent of the amount of the premium established under     
   subsection (d)(2)(B)(i) for the coverage level selected; and            
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the 
   coverage level selected to cover operating and administrative expenses. 
       ``(C) In the case of additional coverage equal to or greater than 55
   percent, but less than 65 percent, of the recorded or appraised average 
   yield indemnified at not greater than 100 percent of the expected market
   price, or a comparable coverage for a policy or plan of insurance that  
   is not based on individual yield, the amount shall be equal to the sum  
   of--                                                                    
       ``(i) 64 percent of the amount of the premium established under     
   subsection (d)(2)(B)(i) for the coverage level selected; and            
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the 
   coverage level selected to cover operating and administrative expenses. 
       ``(D) In the case of additional coverage equal to or greater than 65
   percent, but less than 75 percent, of the recorded or appraised average 
   yield indemnified at not greater than 100 percent of the expected market
   price, or a comparable coverage for a policy or plan of insurance that  
   is                                                                      

          not based on individual yield, the amount shall be equal to the sum of--

       ``(i) 59 percent of the amount of the premium established under     
   subsection (d)(2)(B)(i) for the coverage level selected; and            
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the 
   coverage level selected to cover operating and administrative expenses. 
       ``(E) In the case of additional coverage equal to or greater than 75
   percent, but less than 80 percent, of the recorded or appraised average 
   yield indemnified at not greater than 100 percent of the expected market
   price, or a comparable coverage for a policy or plan of insurance that  
   is not based on individual yield, the amount shall be equal to the sum  
   of--                                                                    
       ``(i) 55 percent of the amount of the premium established under     
   subsection (d)(2)(B)(i) for the coverage level selected; and            
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the 
   coverage level selected to cover operating and administrative expenses. 
       ``(F) In the case of additional coverage equal to or greater than 80
   percent, but less than 85 percent, of the recorded or appraised average 
   yield indemnified at not greater than 100 percent of the expected market
   price, or a comparable coverage for a policy or plan of insurance that  
   is not based on individual yield, the amount shall be equal to the sum  
   of--                                                                    
       ``(i) 48 percent of the amount of the premium established under     
   subsection (d)(2)(B)(i) for the coverage level selected; and            
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the 
   coverage level selected to cover operating and administrative expenses. 
       ``(G) Subject to subsection (c)(4), in the case of additional       
   coverage equal to or greater than 85 percent of the recorded or         
   appraised average yield indemnified at not greater than 100 percent of  
   the expected market price, or a comparable coverage for a policy or plan
   of insurance that is not based on individual yield, the amount shall be 
   equal to the sum of--                                                   
       ``(i) 38 percent of the amount of the premium established under     
   subsection (d)(2)(B)(i) for the coverage level selected; and            
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the 
   coverage level selected to cover operating and administrative           
   expenses.''.                                                            
     (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of 
  the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking
  paragraph (4) and inserting the following:                              
       ``(4) Temporary prohibition on continuous coverage.--Notwithstanding
   paragraph (2), during each of the 2001 through 2005 reinsurance years,  
   additional coverage under subsection (c) shall be available only in 5   
   percent increments beginning at 50 percent of the recorded or appraised 
   average yield.''.                                                       
     (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop  
  Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the    
  following:                                                              
       ``(5) Premium payment disclosure.--Each policy or plan of insurance 
   under this title shall prominently indicate the dollar amount of the    
   portion of the premium paid by the Corporation.''.                      
     (f) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop  
  Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as     
  provided in subsection (e)(4))''.                                       

          SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.                

     (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance  
  Act (7 U.S.C. 1508(h)) is amended--                                     
     (1) in paragraph (2), by striking the second sentence; and            

     (2) by striking paragraph (5) and inserting the following:            

     ``(5)  Premium schedule.--                                            

       ``(A) Payment by corporation.--In the case of a policy or plan of   
   insurance developed and approved under this subsection or section 522,  
   or conducted under section 523 (other than a policy or plan of insurance
   applicable to livestock), the Corporation shall pay a portion of the    
   premium of the policy or plan of insurance that is equal to--           
       ``(i) the percentage, specified in subsection (e) for a similar     
   level of coverage, of the total amount of the premium used to define    
   loss ratio; and                                                         
       ``(ii) an amount for administrative and operating expenses          
   determined in accordance with subsection (k)(4).                        
       ``(B) Transitional schedule.--Effective only during the 2001        
   reinsurance year, in the case of a policy or plan of insurance developed
   and approved under this subsection or section 522, or conducted under   
   section 523 (other than a policy or plan of insurance applicable to     
   livestock), and first approved by the Board after the date of enactment 
   of this subparagraph, the payment by the Corporation of a portion of the
   premium of the policy may not exceed the dollar amount that would       
   otherwise be authorized under subsection (e) (consistent with subsection
   (c)(5), as in effect on the day before the date of enactment of this    
   subparagraph).''.                                                       

     (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop       
  Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the 
  following:                                                              
       ``(C) Other reductions.--Beginning with the 2002 reinsurance year,  
   in the case of a policy or plan of insurance approved by the Board that 
   was not reinsured during the 1998 reinsurance year but, had it been     
   reinsured, would have received a reduced rate of reimbursement during   
   the 1998 reinsurance year, the rate of reimbursement for administrative 

                    and operating costs established for the policy or plan of     
          insurance shall take into account the factors used to determine the rate
          of reimbursement for administrative and operating costs during the 1998 
          reinsurance year, including the expected difference in premium and      
          actual administrative and operating costs of the policy or plan of      
          insurance relative to an individual yield policy or plan of insurance   
          and other appropriate factors, as determined by the Corporation.''.     
          SEC. 103. CATASTROPHIC RISK PROTECTION.                                 

     (a) Alternative Coverage.--Section 508(b) of the Federal Crop        
  Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3)   
  and inserting the following:                                            
       ``(3) Alternative catastrophic coverage.--Beginning with the 2001   
   crop year, the Corporation shall offer producers of an agricultural     
   commodity the option of selecting either of the following:              
       ``(A) The catastrophic risk protection coverage available under     
   paragraph (2)(A).                                                       
     ``(B) An alternative catastrophic risk protection coverage that--     

       ``(i) indemnifies the producer on an area yield and loss basis if   
   such a policy or plan of insurance is offered for the agricultural      
   commodity in the county in which the farm is located;                   
       ``(ii) provides, on a uniform national basis, a higher combination  
   of yield and price protection than the coverage available under         
   paragraph (2)(A); and                                                   
       ``(iii) the Corporation determines is comparable to the coverage    
   available under paragraph (2)(A) for purposes of subsection             
   (e)(2)(A).''.                                                           
    (b)  Administrative Fee.--                                            

       (1) Revised fee.--Section 508(b)(5) of the Federal Crop Insurance   
   Act (7 U.S.C. 1508(b)(5)) is amended--                                  
     (A) in subparagraph (A), by striking ``$50'' and inserting ``$100'';  

     (B) by striking subparagraph (B); and                                 

       (C) in subparagraph (C), by striking ``amounts required under       
   subparagraphs (A) and (B)'' and inserting ``administrative fee required 
   by this paragraph''.                                                    
       (2) Conforming amendment.--Section 748 of the Agriculture, Rural    
   Development, Food and Drug Administration, and Related Agencies         
   Appropriations Act, 1999 (as contained in section 101(a) of division A  
   of Public Law 105 277; 7 U.S.C. 1508 note), is amended by striking      
   ``$50'' and inserting ``$100''.                                         
     (c) Payment of Administrative Fee on Behalf of Producers.--Section   
  508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as   
  amended by subsection (b)(1)(B), is amended by inserting after          
  subparagraph (A) the following:                                         
     ``(B)  Payment on behalf of producers.--                              

       ``(i) Payment authorized.--If State law permits a licensing fee or  
   other payment to be paid by an insurance provider to a cooperative      
   association or trade association and rebated to a producer with         
   catastrophic risk protection or additional coverage, a cooperative      
   association or trade association located in that State may pay, on      
   behalf of a member of the association in that State or a contiguous     
   State who consents to be insured under such an arrangement, all or a    
   portion of the administrative fee required by this paragraph for        
   catastrophic risk protection.                                           
       ``(ii) Treatment of licensing fees.--A licensing fee or other       
   payment made by an insurance provider to the cooperative association or 
   trade association in connection with the issuance of catastrophic risk  
   protection or additional coverage to members of the cooperative         
   association or trade association shall be subject to the laws regarding 
   rebates of the State in which the fee or other payment is made.         
       ``(iii) Selection of provider.--Nothing in this subparagraph limits 
   the option of a producer to select the licensed insurance agent or other
   approved insurance provider from whom the producer will purchase a      
   policy or plan of insurance or to refuse coverage for which a payment is
   offered to be made under clause (i).                                    
       ``(iv) Delivery of insurance.--A policy or plan of insurance for    
   which a payment is made under clause (i) shall be delivered by a        
   licensed insurance agent or other approved insurance provider.          
       ``(v) Additional coverage encouraged.--A cooperative association or 
   trade association, and any approved insurance provider with whom a      
   licensing fee or other arrangement under this subparagraph is made,     
   shall encourage producer members to purchase appropriate levels of      
   additional coverage in order to meet the risk management needs of the   
   member producers.                                                       
       ``(vi) Report.--Not later than April 1, 2002, the Secretary shall   
   submit to the Committee on Agriculture of the House of Representatives  
   and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
   a report that evaluates--                                               
      ``(I) the operation of this subparagraph; and                         

         ``(II) the impact of this subparagraph on participation in the     
    Federal crop insurance program, including the impact on levels of       
    coverage purchased.''.                                                  
     (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal    
  Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11   
  percent'' and inserting ``8 percent''.                                  
          SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.                   

     Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c))  
  is amended by striking paragraph (10) and inserting the following:      
     ``(10)  Administrative fee.--                                         

       ``(A) Fee required.--If a producer elects to purchase coverage for a
   crop at a level in excess of catastrophic risk protection, the producer 
   shall pay an administrative fee for the additional coverage of $30 per  
   crop per county.                                                        
       ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of subsection 
   (b)(5) shall apply with respect to the                                  

          collection and use of administrative fees under this paragraph.''.      

          SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS.    

     (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop       
  Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended--                     
     (1) by striking ``assigned a yield'' and inserting ``assigned--       

     ``(i) a yield'';                                                      

     (2) by striking the period at the end and inserting ``; or''; and     

     (3) by adding at the end the following:                               

     ``(ii) a yield determined by the Corporation, in the case of--        

         ``(I) a producer that has not had a share of the production of the 
    insured crop for more than 2 crop years, as determined by the Secretary;
         ``(II) a producer that produces an agricultural commodity on land  
    that has not been farmed by the producer; or                            
         ``(III) a producer that rotates a crop produced on a farm to a crop
    that has not been produced on the farm.''.                              
     (b) Actual Production History Adjustments.--Section 508(g) of the    
  Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at   
  the end the following:                                                  
       ``(4) Adjustment in actual production history to establish insurable
   yields.--                                                               
       ``(A) Application.--This paragraph shall apply whenever the         
   Corporation uses the actual production records of the producer to       
   establish the producer's actual production history for an agricultural  
   commodity for any of the 2001 and subsequent crop years.                
       ``(B) Election to use percentage of transitional yield.--If, for 1  
   or more of the crop years used to establish the producer's actual       
   production history of an agricultural commodity, the producer's recorded
   or appraised yield of the commodity was less than 60 percent of the     
   applicable transitional yield, as determined by the Corporation, the    
   Corporation shall, at the election of the producer--                    
     ``(i) exclude any of such recorded or appraised yield; and            

       ``(ii) replace each excluded yield with a yield equal to 60 percent 
   of the applicable transitional yield.                                   
       ``(C) Premium adjustment.--In the case of a producer that makes an  
   election under subparagraph (B), the Corporation shall adjust the       
   premium to reflect the risk associated with the adjustment made in the  
   actual production history of the producer.                              
       ``(5) Adjustment to reflect increased yields from successful pest   
   control efforts.--                                                      
       ``(A) Situations justifying adjustment.--The Corporation shall      
   develop a methodology for adjusting the actual production history of a  
   producer when each of the following apply:                              
       ``(i) The producer's farm is located in an area where systematic,   
   area-wide efforts have been undertaken using certain operations or      
   measures, or the producer's farm is a location at which certain         
   operations or measures have been undertaken, to detect, eradicate,      
   suppress, or control, or at least to prevent or retard the spread of, a 
   plant disease or plant pest, including a plant pest (as defined in      
   section 102 of the Department of Agriculture Organic Act of 1944 (7     
   U.S.C. 147a)).                                                          
       ``(ii) The presence of the plant disease or plant pest has been     
   found to adversely affect the yield of the agricultural commodity for   
   which the producer is applying for insurance.                           
     ``(iii) The efforts described in clause (i) have been effective.      

       ``(B) Adjustment amount.--The amount by which the Corporation       
   adjusts the actual production history of a producer of an agricultural  
   commodity shall reflect the degree to which the success of the          
   systematic, area-wide efforts described in subparagraph (A), on average,
   increases the yield of the commodity on the producer's farm, as         
   determined by the Corporation.''.                                       

          SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.                

     Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i))  
  is amended--                                                            
     (1) by striking ``The Corporation'' and inserting the following:      

     ``(1)  In general.--The Corporation''; and                            

     (2) by adding at the end the following:                               

       ``(2) Review of rating methodologies.--To maximize participation in 
   the Federal crop insurance program and to ensure equity for producers,  
   the Corporation shall periodically review the methodologies employed for
   rating plans of insurance under this title consistent with section      
   507(c)(2).                                                              
       ``(3) Analysis of rating and loss history.--The Corporation shall   
   analyze the rating and loss history of approved policies and plans of   
   insurance for agricultural commodities by area.                         
       ``(4) Premium adjustment.--If the Corporation makes a determination 
   that premium rates are excessive for an agricultural commodity in an    
   area relative to the requirements of subsection (d)(2) for that area,   
   then, for the 2002 crop year (and as necessary thereafter), the         
   Corporation shall make appropriate adjustments in the premium rates for 
   that area for that agricultural commodity.''.                           

          SEC. 107. QUALITY ADJUSTMENT.                                           

     Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is     
  amended by striking subsection (m) and inserting the following:         
    ``(m)  Quality Loss Adjustment Coverage.--                            

       ``(1) Effect of coverage.--If a policy or plan of insurance offered 
   under this title includes quality loss adjustment coverage, the coverage
   shall provide for a reduction in the quantity of production of the      
   agricultural commodity considered produced                              

                    during a crop year, or a similar adjustment, as a result of   
          the agricultural commodity not meeting the quality standards established
          in the policy or plan of insurance.                                     
     ``(2)  Additional quality loss adjustment.--                          

       ``(A) Producer option.--Notwithstanding any other provision of law, 
   in addition to the quality loss adjustment coverage available under     
   paragraph (1), the Corporation shall offer producers the option of      
   purchasing quality loss adjustment coverage on a basis that is smaller  
   than a unit with respect to an agricultural commodity that satisfies    
   each of the following:                                                  
       ``(i) The agricultural commodity is sold on an identity-preserved   
   basis.                                                                  
       ``(ii) All quality determinations are made solely by the Federal    
   agency designated to grade or classify the agricultural commodity.      
       ``(iii) All quality determinations are made in accordance with      
   standards published by the Federal agency in the Federal Register.      
       ``(iv) The discount schedules that reflect the reduction in quality 
   of the agricultural commodity are established by the Secretary.         
       ``(B) Basis for adjustment.--Under this paragraph, the Corporation  
   shall set the quality standards below which quality losses will be paid 
   based on the variability of the grade of the agricultural commodity from
   the base quality for the agricultural commodity.                        
       ``(3) Review of criteria and procedures.--The Corporation shall     
   contract with a qualified person to review the quality loss adjustment  
   procedures of the Corporation so that the procedures more accurately    
   reflect local quality discounts that are applied to agricultural        
   commodities insured under this title. Based on the review, the          
   Corporation shall make adjustments in the procedures, taking into       
   consideration the actuarial soundness of the adjustment and the         
   prevention of fraud, waste, and abuse.''.                               

          SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.                      

     The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by 
  inserting after section 508 (7 U.S.C. 1508) the following:              
          ``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.                   

    ``(a)  Definitions.--In this section:                                 

       ``(1) First crop.--The term `first crop' means the first crop of the
   first agricultural commodity planted for harvest, or prevented from     
   being planted, on specific acreage during a crop year and insured under 
   this title.                                                             
       ``(2) Second crop.--The term `second crop' means a second crop of   
   the same agricultural commodity as the first crop, or a crop of a       
   different agricultural commodity following the first crop, planted on   
   the same acreage as the first crop for harvest in the same crop year,   
   except the term does not include a replanted crop.                      
       ``(3) Replanted crop.--The term `replanted crop' means any          
   agricultural commodity replanted on the same acreage as the first crop  
   for harvest in the same crop year if the replanting is required by the  
   terms of the policy of insurance covering the first crop.               
    ``(b)  Double Insurance.--                                            

       ``(1) Options on loss to first crop.--Except as provided in         
   subsections (d) and (e), if a first crop insured under this title in a  
   crop year has a total or partial insurable loss, the producer of the    
   first crop may elect 1 of the following options:                        
     ``(A)  No second crop planted.--The producer may--                    

       ``(i) elect to not plant a second crop on the same acreage for      
   harvest in the same crop year; and                                      
       ``(ii) collect an indemnity payment that is equal to 100 percent of 
   the insurable loss for the first crop.                                  
     ``(B)  Second crop planted.--The producer may--                       

       ``(i) plant a second crop on the same acreage for harvest in the    
   same crop year; and                                                     
       ``(ii) collect an indemnity payment established by the Corporation  
   for the first crop, but not to exceed 35 percent of the insurable loss  
   for the first crop.                                                     
       ``(2) Effect of no loss to second crop.--If a producer makes an     
   election under paragraph (1)(B) and the producer does not suffer an     
   insurable loss to the second crop, the producer may collect an indemnity
   payment for the first crop that is equal to--                           
     ``(A) 100 percent of the insurable loss for the first crop; less      

     ``(B) the amount previously collected under paragraph (1)(B)(ii).     

     ``(3)  Premium for first crop if second crop planted.--               

       ``(A) Initial premium.--If a producer makes an election under       
   paragraph (1)(B), the producer shall be responsible for a premium for   
   the first crop that is commensurate with the indemnity paid under       
   paragraph (1)(B)(ii). The Corporation shall adjust the total premium for
   the first crop to reflect the reduced indemnity.                        
       ``(B) Effect of no loss to second crop.--If the producer makes an   
   election under paragraph (1)(B) and the producer does not suffer an     
   insurable loss to the second crop, the producer shall be responsible for
   a premium for the first crop that is equal to--                         
     ``(i) the full premium owed by the producer for the first crop; less  

     ``(ii) the amount of premium previously paid under subparagraph (A).  

    ``(c)  Prevented Planting Coverage.--                                 

       ``(1) Options on loss to first crop.--Except as provided in         
   subsections (d) and (e), if a first crop insured under this title in a  
   crop year is prevented from being planted, the producer of the first    
   crop may elect 1 of the following options:                              
     ``(A)  No second crop planted.--The producer may--                    

       ``(i) elect to not plant a second crop on the same acreage for      
   harvest in the same crop year; and                                      

       ``(ii) subject to paragraph (4), collect an indemnity payment that  
   is equal to 100 percent of the prevented planting guarantee for the     
   acreage for the first crop.                                             
     ``(B)  Second crop planted.--The producer may--                       

       ``(i) plant a second crop on the same acreage for harvest in the    
   same crop year; and                                                     
       ``(ii) subject to paragraphs (4) and (5), collect an indemnity      
   payment established by the Corporation for the first crop, but not to   
   exceed 35 percent of the prevented planting guarantee for the acreage   
   for the first crop.                                                     
       ``(2) Premium for first crop if second planted.--If the producer    
   makes an election under paragraph (1)(B), the producer shall pay a      
   premium for the first crop that is commensurate with the indemnity paid 
   under paragraph (1)(B)(ii). The Corporation shall adjust the total      
   premium for the first crop to reflect the reduced indemnity.            
       ``(3) Effect on actual production history.--Except in the case of   
   double cropping described in subsection (d), if a producer makes an     
   election under paragraph (1)(B) for a crop year, the Corporation shall  
   assign the producer a recorded yield for that crop year for the first   
   crop equal to 60 percent of the producer's actual production history for
   the agricultural commodity involved, for purposes of determining the    
   producer's actual production history for subsequent crop years.         
       ``(4) Area conditions required for payment.--The Corporation shall  
   limit prevented planting payments for producers to those situations in  
   which other producers, in the area where a first crop is prevented from 
   being planted is located, are also generally affected by the conditions 
   that prevented the first crop from being planted.                       
       ``(5) Planting date.--If a producer plants the second crop before   
   the latest planting date established by the Corporation for the first   
   crop, the Corporation shall not make a prevented planting payment with  
   regard to the first crop.                                               
     ``(d) Exception for Established Double Cropping Practices.--A        
  producer may receive full indemnity payments on 2 or more crops planted 
  for harvest in the same crop year and insured under this title if each  
  of the following conditions are met:                                    
       ``(1) There is an established practice of planting 2 or more crops  
   for harvest in the same crop year in the area, as determined by the     
   Corporation.                                                            
       ``(2) An additional coverage policy or plan of insurance is offered 
   with respect to the agricultural commodities planted on the same acreage
   for harvest in the same crop year in the area.                          
       ``(3) The producer has a history of planting 2 or more crops for    
   harvest in the same crop year or the applicable acreage has historically
   had 2 or more crops planted for harvest in the same crop year.          
       ``(4) The second or more crops are customarily planted after the    
   first crop for harvest on the same acreage in the same year in the area.
     ``(e) Subsequent Crops.--Except in the case of double cropping       
  described in subsection (d), if a producer elects to plant a crop (other
  than a replanted crop) subsequent to a second crop on the same acreage  
  as the first crop and second crop for harvest in the same crop year, the
  producer shall not be eligible for insurance under this title, or       
  noninsured crop assistance under section 196 of the Agricultural Market 
  Transition Act (7 U.S.C. 7333), for the subsequent crop.''.             

          SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.                  

     (a) Operation and Administration of Program.--Section 196(a)(2) of   
  the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended 
  by adding at the end the following:                                     
       ``(C) Combination of similar types or varieties.--At the option of  
   the Secretary, all types or varieties of a crop or commodity, described 
   in subparagraphs (A) and (B), may be considered to be a single eligible 
   crop under this section.''.                                             
     (b) Timely Application.--Section 196(b)(1) of the Agricultural Market
  Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second sentence  
  by striking ``at such time as the Secretary may require'' and inserting 
  ``not later than 30 days before the beginning of the coverage period, as
  determined by the Secretary''.                                          
     (c) Records and Reports.--Section 196(b) of the Agricultural Market  
  Transition Act (7 U.S.C. 7333(b)) is amended--                          
     (1) by striking paragraph (2) and inserting the following:            

       ``(2) Records.--To be eligible for assistance under this section, a 
   producer shall provide annually to the Secretary records of crop        
   acreage, acreage yields, and production for each crop, as required by   
   the Secretary.''; and                                                   
     (2) in paragraph (3), by inserting ``annual'' after ``shall provide''.

     (d) Loss Requirements.--Section 196 of the Agricultural Market       
  Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and
  inserting the following:                                                
    ``(c)  Loss Requirements.--                                           

       ``(1) Cause.--To be eligible for assistance under this section, a   
   producer of an eligible crop shall have suffered a loss of a noninsured 
   commodity as the result of a cause described in subsection (a)(3).      
       ``(2) Assistance.--On making a determination described in subsection
   (a)(3), the Secretary shall provide assistance under this section to    
   producers of an eligible crop that have suffered a loss as a result of  
   the cause described in subsection (a)(3).                               
       ``(3) Prevented planting.--Subject to paragraph (1), the Secretary  
   shall make a prevented planting noninsured crop disaster assistance     
   payment if the producer is prevented from planting more than 35 percent 
   of the acreage intended for the eligible crop because of drought, flood,
   or other natural disaster, as determined by the Secretary.              
       ``(4) Area trigger.--The Secretary shall provide assistance to      
   individual producers without any requirement of an area loss.''.        
     (e) Service Fee.--Section 196 of the Agricultural Market Transition  
  Act (7 U.S.C. 7333) is amended by adding at the end the following:      
    ``(k)  Service Fee.--                                                 


       ``(1) In general.--To be eligible to receive assistance for an      
   eligible crop for a crop year under this section, a producer shall pay  
   to the Secretary (at the time at which the producer submits the         
   application under subsection (b)(1)) a service fee for the eligible crop
   in an amount that is equal to the lesser of--                           
     ``(A) $100 per crop per county; or                                    

       ``(B) $300 per producer per county, but not to exceed a total of    
   $900 per producer.                                                      
       ``(2) Waiver.--The Secretary shall waive the service fee required   
   under paragraph (1) in the case of a limited resource farmer, as defined
   by the Secretary.                                                       
       ``(3) Use.--The Secretary shall deposit service fees collected under
   this subsection in the Commodity Credit Corporation Fund.''.            

           Subtitle B--Improving Program Integrity                                 


          SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.                   

     (a) Additional Methods of Ensuring Program Compliance and            
  Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C.     
  1514) is amended to read as follows:                                    

          ``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.                           

    ``(a)  Purpose.--                                                     

       ``(1) In general.--The purpose of this section is to improve        
   compliance with, and the integrity of, the Federal crop insurance       
   program.                                                                
       ``(2) Role of insurance providers.--The Corporation shall work      
   actively with approved insurance providers to address program compliance
   and integrity issues as such issues develop.                            
    ``(b)  Notification of Compliance Problems.--                         

       ``(1) Notification of errors, omissions, and failures.--The         
   Corporation shall notify in writing an approved insurance provider of   
   any error, omission, or failure to follow Corporation regulations or    
   procedures for which the approved insurance provider may be responsible 
   and which may result in a debt owed the Corporation.                    
       ``(2) Time for notification.--Notice under paragraph (1) shall be   
   given within 3 years after the end of the insurance period during which 
   the error, omission, or failure is alleged to have occurred, except that
   this time limitation shall not apply with respect to an error, omission,
   or procedural violation that is willful or intentional.                 
       ``(3) Effect of failure to timely notify.--Except as provided in    
   paragraph (2), the failure to timely provide the notice required under  
   this subsection shall relieve the approved insurance provider from the  
   debt owed the Corporation.                                              
     ``(c) Reconciling Producer Information.--The Secretary shall develop 
  and implement a coordinated plan for the Corporation and the Farm       
  Service Agency to reconcile all relevant information received by the    
  Corporation or the Farm Service Agency from a producer who obtains crop 
  insurance coverage under this title. Beginning with the 2001 crop year, 
  the Secretary shall require that the Corporation and the Farm Service   
  Agency reconcile such producer-derived information on at least an annual
  basis in order to identify and address any discrepancies.               
    ``(d)  Identification and Elimination of Fraud, Waste, and Abuse.--   

       ``(1) FSA monitoring program.--The Secretary shall develop and      
   implement a coordinated plan for the Farm Service Agency to assist the  
   Corporation in the ongoing monitoring of programs carried out under this
   title, including--                                                      
       ``(A) at the request of the Corporation or, subject to paragraph    
   (2), on its own initiative if the Farm Service Agency has reason to     
   suspect the existence of program fraud, waste, or abuse, conducting fact
   finding relative to allegations of program fraud, waste, or abuse;      
       ``(B) reporting to the Corporation, in writing in a timely manner,  
   the results of any fact finding conducted pursuant to subparagraph (A), 
   any allegation of fraud, waste, or abuse, and any identified program    
   vulnerabilities; and                                                    
       ``(C) assisting the Corporation and approved insurance providers in 
   auditing a statistically appropriate number of claims made under any    
   policy or plan of insurance under this title.                           
       ``(2) FSA inquiry.--If, within 5 calendar days after receiving a    
   report submitted under paragraph (1)(B), the Corporation does not       
   provide a written response that describes the intended actions of the   
   Corporation, the Farm Service Agency may conduct its own inquiry into   
   the alleged program fraud, waste, or abuse on approval from the State   
   director of the Farm Service Agency of the State in which the alleged   
   fraud, waste, or abuse occurred. If as a result of the inquiry, the Farm
   Service Agency concludes further investigation is warranted, but the    
   Corporation declines to proceed with the investigation, the Farm Service
   Agency may refer the matter to the Inspector General of the Department  
   of Agriculture.                                                         
       ``(3) Use of field infrastructure.--The plan required by paragraph  
   (1) shall provide for the use of the field infrastructure of the Farm   
   Service Agency. The Secretary shall ensure that relevant Farm Service   
   Agency personnel are appropriately trained for any responsibilities     
   assigned to the personnel under the plan. At a minimum, the personnel   
   shall receive the same level of training and pass the same basic        
   competency tests as required of loss adjusters of approved insurance    
   providers.                                                              
     ``(4)  Maintenance of provider effort.--                              

       ``(A) In general.--The activities of the Farm Service Agency under  
   this subsection do not affect the responsibility of approved insurance  
   providers to conduct any audits of claims or other program reviews      
   required by the Corporation.                                            
       ``(B) Notification of providers.--The Corporation shall notify the  
   appropriate approved insurance provider of a report from the Farm       
   Service Agency regarding alleged program fraud, waste, or abuse, unless 
   the provider is suspected to be included in, or a party to, the alleged 
   fraud, waste, or abuse.                                                 

       ``(C) Response.--An approved insurance provider that receives a     
   notice under subparagraph (B) shall submit a report to the Corporation, 
   within an appropriate time period determined by the Secretary,          
   describing the actions taken by the provider to investigate the         
   allegations of program fraud, waste, or abuse contained in the notice.  
     ``(5)  Corporation response to provider reports.--                    

       ``(A) Prompt response.--If an approved insurance provider reports to
   the Corporation that the approved insurance provider suspects           
   intentional misrepresentation, fraud, waste, or abuse, the Corporation  
   shall make a determination and provide, within 90 calendar days after   
   receiving the report, a written response that describes the intended    
   actions of the Corporation.                                             
       ``(B) Cooperative effort.--The approved insurance provider and the  
   Corporation shall take coordinated action in any case where             
   misrepresentation, fraud, waste, or abuse is alleged.                   
       ``(C) Failure to timely respond.--If the Corporation fails to       
   respond as required by subparagraph (A), an approved insurance provider 
   may request the Farm Service Agency to assist the provider in an inquiry
   into the alleged program fraud, waste, or abuse.                        
     ``(e) Consultation with State FSA Committees.--The Secretary shall   
  establish procedures under which the Corporation shall consult with the 
  State committee of the Farm Service Agency for a State with respect to  
  policies, plans of insurance, and material related to such policies or  
  plans of insurance (including applicable sales closing dates, assigned  
  yields, and transitional yields) offered in that State under this title.
    ``(f)  Detection of Disparate Performance.--                          

       ``(1) Covered activities.--The Secretary shall establish procedures 
   under which the Corporation will be able to identify the following:     
       ``(A) Any agent engaged in the sale of coverage offered under this  
   title where the loss claims associated with such sales by the agent are 
   equal to or greater than 150 percent (or an appropriate percentage      
   specified by the Corporation) of the mean for all loss claims associated
   with such sales by all other agents operating in the same area, as      
   determined by the Corporation.                                          
       ``(B) Any person performing loss adjustment services relative to    
   coverage offered under this title where such loss adjustments performed 
   by the person result in accepted or denied claims equal to or greater   
   than 150 percent (or an appropriate percentage specified by the         
   Corporation) of the mean for accepted or denied claims (as applicable)  
   for all other persons performing loss adjustment services in the same   
   area, as determined by the Corporation.                                 
     ``(2)  Review.--                                                      

       ``(A) Review required.--The Corporation shall conduct a review of   
   any agent identified pursuant to paragraph (1)(A), and any person       
   identified pursuant to paragraph (1)(B), to determine whether the higher
   loss claims associated with the agent or the higher number of accepted  
   or denied claims (as applicable) associated with the person are the     
   result of fraud, waste, or abuse.                                       
       ``(B) Remedial action.--The Corporation shall take appropriate      
   remedial action with respect to any occurrence of fraud, waste, or abuse
   identified in a review conducted under this paragraph.                  
       ``(3) Oversight of agents and loss adjusters.--The Corporation shall
   develop procedures to require an annual review by an approved insurance 
   provider of the performance of each agent and loss adjuster used by the 
   approved insurance provider. The Corporation shall oversee the conduct  
   of annual reviews and may consult with an approved insurance provider   
   regarding any remedial action that is determined to be necessary as a   
   result of the annual review of an agent or loss adjuster.               
     ``(g) Submission of Information to Corporation to Support Compliance 
  Efforts.--                                                              
       ``(1) Types of information required.--The Secretary shall establish 
   procedures under which approved insurance providers shall submit to the 
   Corporation the following information with respect to each policy or    
   plan of insurance offered under this title:                             
     ``(A) The name and identification number of the insured.              

     ``(B) The agricultural commodity to be insured.                       

       ``(C) The elected coverage level, including the price election, of  
   the insured.                                                            
       ``(2) Time for submission.--The information required by paragraph   
   (1) with respect to a policy or plan of insurance shall be submitted so 
   as to ensure receipt by the Corporation not later than the Saturday of  
   the week containing the calendar day that is 30 days after the          
   applicable sales closing date for the crop to be insured.               
    ``(h)  Sanctions for Program Noncompliance and Fraud.--               

       ``(1) False information.--A producer, agent, loss adjuster, approved
   insurance provider, or other person that willfully and intentionally    
   provides any false or inaccurate information to the Corporation or to an
   approved insurance provider with respect to a policy or plan of         
   insurance under this title may, after notice and an opportunity for a   
   hearing on the record, be subject to 1 or more of the sanctions         
   described in paragraph (3).                                             
       ``(2) Compliance.--A person may, after notice and an opportunity for
   a hearing on the record, be subject to 1 or more of the sanctions       
   described in paragraph (3) if the person is a producer, agent, loss     
   adjuster, approved insurance provider, or other person that willfully   
   and intentionally fails to comply with a requirement of the Corporation.
       ``(3) Authorized sanctions.--If the Secretary determines that a     
   person covered by this subsection has committed a material violation    
   under paragraph (1) or (2), the following sanctions may be imposed:     
       ``(A) Civil fines.--A civil fine may be imposed for each violation  
   in an amount not to exceed the greater of--                             

       ``(i) the amount of the pecuniary gain obtained as a result of the  
   false or inaccurate information provided or the noncompliance with a    
   requirement of this title; or                                           
     ``(ii) $10,000.                                                       

       ``(B) Producer disqualification.--In the case of a violation        
   committed by a producer, the producer may be disqualified for a period  
   of up to 5 years from receiving any monetary or nonmonetary benefit     
   provided under each of the following:                                   
     ``(i) This title.                                                     

       ``(ii) The Agricultural Market Transition Act (7 U.S.C. 7201 et     
   seq.), including the noninsured crop disaster assistance program under  
   section 196 of that Act (7 U.S.C. 7333).                                
     ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).         

       ``(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714  
   et seq.).                                                               
     ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).

       ``(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
   seq.).                                                                  
       ``(vii) The Consolidated Farm and Rural Development Act (7 U.S.C.   
   1921 et seq.).                                                          
       ``(viii) Any law that provides assistance to a producer of an       
   agricultural commodity affected by a crop loss or a decline in the      
   prices of agricultural commodities.                                     
       ``(C) Disqualification of other persons.--In the case of a violation
   committed by an agent, loss adjuster, approved insurance provider, or   
   other person (other than a producer), the violator may be disqualified  
   for a period of up to 5 years from participating in any program, or     
   receiving any benefit, under this title.                                
       ``(4) Assessment of sanction.--The Secretary shall consider the     
   gravity of the violation of the person covered by this subsection in    
   determining--                                                           
     ``(A) whether to impose a sanction under this subsection; and         

     ``(B) the type and amount of the sanction to be imposed.              

       ``(5) Disclosure of sanctions.--Each policy or plan of insurance    
   under this title shall provide notice describing the sanctions          
   prescribed under paragraph (3) for willfully and intentionally--        
       ``(A) providing false or inaccurate information to the Corporation  
   or to an approved insurance provider; or                                
     ``(B) failing to comply with a requirement of the Corporation.        

       ``(6) Insurance fund.--Any funds collected under this subsection    
   shall be deposited into the insurance fund established under section    
   516(c).                                                                 
    ``(i)  Annual Report on Program Compliance and Integrity Efforts.--   

       ``(1) Report required.--The Secretary shall submit to the Committee 
   on Agriculture of the House of Representatives and the Committee on     
   Agriculture, Nutrition, and Forestry of the Senate an annual report     
   describing the operation of this section during the preceding year and  
   efforts undertaken by the Secretary and the Corporation to carry out    
   this section.                                                           
       ``(2) Information regarding fraud, waste, and abuse.--The report    
   shall identify specific occurrences of waste, fraud, or abuse and       
   contain an outline of actions that have been or are being taken to      
   eliminate the identified waste, fraud, or abuse.                        
    ``(j)  Information Management.--                                      

       ``(1) Systems upgrades.--The Secretary shall upgrade the information
   management systems of the Corporation used in the administration and    
   enforcement and this title. In upgrading the systems, the Secretary     
   shall ensure that new hardware and software are compatible with the     
   hardware and software used by other agencies of the Department to       
   maximize data sharing and promote the purpose of this section.          
       ``(2) Use of available information technologies.--The Secretary     
   shall use the information technologies known as data mining and data    
   warehousing and other available information technologies to administer  
   and enforce this title.                                                 
       ``(3) Use of private sector.--The Secretary may enter into contracts
   to use private sector expertise and technological resources in          
   implementing this subsection.                                           
    ``(k)  Funding.--                                                     

       ``(1) Available funds.--To carry out this section and sections      
   502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corporation may use,
   from amounts made available from the insurance fund established under   
   section 516(c), not more than $23,000,000 during the period of fiscal   
   years 2001 through 2005, of which not more than $9,000,000 shall be     
   available for fiscal year 2001.                                         
       ``(2) Prohibition.--None of the funds made available under paragraph
   (1) may be used to pay the salaries of employees of the Corporation.''. 
     (b) Conforming Amendment.--Section 506 of the Federal Crop Insurance 
  Act (7 U.S.C. 1506) is amended--                                        
     (1) by striking subsection (q); and                                   

       (2) by redesignating subsections (r) and (s) as subsections (q) and 
   (r), respectively.                                                      
          SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.                       

     Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is     
  amended by adding at the end the following:                             
    ``(c)  Protection of Confidential Information.--                      

       ``(1) General prohibition against disclosure.--Except as provided in
   paragraph (2), the Secretary, any other officer or employee of the      
   Department or an agency thereof, an approved insurance provider and its 
   employees and contractors, and any other person may not disclose to the 
   public information furnished by a producer under this title.            
     ``(2)  Authorized disclosure.--                                       

       ``(A) Disclosure in statistical or aggregate form.--Information     
   described in paragraph (1) may be                                       

                    disclosed to the public if the information has been           
          transformed into a statistical or aggregate form that does not allow the
          identification of the person who supplied particular information.       
       ``(B) Consent of producer.--A producer may consent to the disclosure
   of information described in paragraph (1). The participation of the     
   producer in, and the receipt of any benefit by the producer under, this 
   title or any other program administered by the Secretary may not be     
   conditioned on the producer providing consent under this paragraph.     
       ``(3) Violations; penalties.--Section 1770(c) of the Food Security  
   Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to the release  
   of information collected in any manner or for any purpose prohibited by 
   this subsection.''.                                                     
          SEC. 123. GOOD FARMING PRACTICES.                                       

     Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))  
  is amended by striking paragraph (3) and inserting the following:       
     ``(3)  Exclusion of losses due to certain actions of producer.--      

       ``(A) Exclusions.--Insurance provided under this subsection shall   
   not cover losses due to--                                               
     ``(i) the neglect or malfeasance of the producer;                     

       ``(ii) the failure of the producer to reseed to the same crop in    
   such areas and under such circumstances as it is customary to reseed; or
       ``(iii) the failure of the producer to follow good farming          
   practices, including scientifically sound sustainable and organic       
   farming practices.                                                      
     ``(B)  Good farming practices.--                                      

       ``(i) Informal administrative process.--A producer shall have the   
   right to a review of a determination regarding good farming practices   
   made under subparagraph (A)(iii) in accordance with an informal         
   administrative process to be established by the Corporation.            
     ``(ii)  Administrative review.--                                      

         ``(I) No adverse decision.--The determination shall not be         
    considered an adverse decision for purposes of subtitle H of the        
    Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et  
    seq.).                                                                  
         ``(II) Reversal or modification.--Except as provided in clause (i),
    the determination may not be reversed or modified as the result of a    
    subsequent administrative review.                                       
     ``(iii)  Judicial review.--                                           

         ``(I) Right to review.--A producer shall have the right to judicial
    review of the determination without exhausting any right to a review    
    under clause (i).                                                       
         ``(II) Reversal or modification.--The determination may not be     
    reversed or modified as the result of judicial review unless the        
    determination is found to be arbitrary or capricious.''.                
          SEC. 124. RECORDS AND REPORTING.                                        

     (a) Condition of Obtaining Coverage.--Section 508(f)(3) of the       
  Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)) is amended by striking 
  subparagraph (A) and inserting the following:                           
       ``(A) provide annually records acceptable to the Secretary regarding
   crop acreage, acreage yields, and production for each agricultural      
   commodity insured under this title or accept a yield determined by the  
   Corporation; and''.                                                     
     (b) Additional General Power.--Section 506 of the Federal Crop       
  Insurance Act (7 U.S.C. 1506) is amended by striking subsection (h) and 
  inserting the following:                                                
    ``(h)  Collection and Sharing of Information.--                       

       ``(1) Surveys and investigations.--The Corporation may conduct      
   surveys and investigations relating to crop insurance,                  
   agriculture-related risks and losses, and other issues related to       
   carrying out this title.                                                
       ``(2) Data collection.--The Corporation shall assemble data for the 
   purpose of establishing sound actuarial bases for insurance on          
   agricultural commodities.                                               
       ``(3) Sharing of records.--Notwithstanding section 502(c), records  
   submitted in accordance with this title and section 196 of the          
   Agricultural Market Transition Act (7 U.S.C. 7333) shall be available to
   agencies and local offices of the Department, appropriate State and     
   Federal agencies and divisions, and approved insurance providers for use
   in carrying out this title, such section 196, and other agricultural    
   programs.''.                                                            

           Subtitle C--Research and Pilot Programs                                 

          SEC. 131. RESEARCH AND DEVELOPMENT.                                     

     The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by 
  adding at the end the following:                                        
          ``SEC. 522. RESEARCH AND DEVELOPMENT.                                   

     ``(a) Definition of Policy.--In this section, the term `policy' means
  a policy, plan of insurance, provision of a policy or plan of insurance,
  and related materials.                                                  
     ``(b) Reimbursement of Research, Development, and Maintenance        
  Costs.--                                                                
       ``(1) Research and development reimbursement.--The Corporation shall
   provide a payment to reimburse an applicant for research and development
   costs directly related to a policy that is--                            
       ``(A) submitted to the Board and approved by the Board under section
   508(h) for reinsurance; and                                             
     ``(B) if applicable, offered for sale to producers.                   

       ``(2) Existing plans.--The Corporation shall reimburse costs        
   associated with research and development costs directly related to a    
   policy that was approved by the Board prior to the date of enactment of 
   this section.                                                           
       ``(3) Marketability.--The Corporation shall approve a reimbursement 
   under paragraph (1) or (2) only after determining                       

                    that the policy is marketable based on a reasonable marketing 
          plan, as determined by the Board.                                       
     ``(4)  Maintenance payments.--                                        

       ``(A) Requirement.--The Corporation shall reimburse maintenance     
   costs associated with the annual cost of underwriting for a policy      
   described in paragraphs (1) and (2).                                    
       ``(B) Duration.--Payments with respect to maintenance costs may be  
   provided for a period of not more than 4 reinsurance years subsequent to
   Board approval for payment under this subsection.                       
       ``(C) Options for maintenance.--On the expiration of the 4-year     
   period described in subparagraph (B), the approved insurance provider   
   responsible for maintenance of the policy may--                         
       ``(i) maintain the policy and charge a fee to approved insurance    
   providers that elect to sell the policy under this subsection; or       
       ``(ii) transfer responsibility for maintenance of the policy to the 
   Corporation.                                                            
     ``(D)  Fee.--                                                         

       ``(i) Amount.--Subject to approval by the Board, the amount of the  
   fee that is payable by an approved insurance provider that elects to    
   sell the policy shall be an amount that is determined by the approved   
   insurance provider maintaining the policy.                              
       ``(ii) Approval.--The Board shall approve the amount of a fee       
   determined under clause (i) for maintenance of the policy unless the    
   Board determines that the amount of the fee--                           
         ``(I) is unreasonable in relation to the maintenance costs         
    associated with the policy; or                                          
      ``(II) unnecessarily inhibits the use of the policy.                  

       ``(5) Treatment of payment.--Payments made under this subsection for
   a policy shall be considered as payment in full by the Corporation for  
   the research and development conducted with regard to the policy and any
   property rights to the policy.                                          
       ``(6) Reimbursement amount.--The Corporation shall determine the    
   amount of the payment under this subsection for an approved policy based
   on the complexity of the policy and the size of the area in which the   
   policy or material is expected to be sold.                              
    ``(c)  Research and Development Contracting Authority.--              

       ``(1) Authority.--The Corporation may enter into contracts to carry 
   out research and development to--                                       
       ``(A) increase participation in States in which the Corporation     
   determines that--                                                       
       ``(i) there is traditionally, and continues to be, a low level of   
   Federal crop insurance participation and availability; and              
     ``(ii) the State is underserved by the Federal crop insurance program;

       ``(B) increase participation in areas that are underserved by the   
   Federal crop insurance program; and                                     
       ``(C) increase participation by producers of underserved            
   agricultural commodities, including specialty crops.                    
     ``(2)  Underserved agricultural commodities and areas.--              

       ``(A) Authority.--The Corporation may enter into contracts under    
   procedures prescribed by the Corporation with qualified persons to carry
   out research and development for policies that promote the purposes of  
   paragraph (1).                                                          
       ``(B) Consultation.--Before entering into a contract under          
   subparagraph (A), the Corporation shall consult with groups representing
   producers of agricultural commodities that would be served by the       
   policies that are the subject of the research and development.          
       ``(3) Qualified persons.--A person with experience in crop insurance
   or farm or ranch risk management (including a college or university, an 
   approved insurance provider, and a trade or research organization), as  
   determined by the Corporation, shall be eligible to enter into a        
   contract with the Corporation under this subsection.                    
       ``(4) Types of contracts.--A contract under this subsection may     
   provide for research and development regarding new or expanded policies,
   including policies based on adjusted gross income, cost-of-production,  
   quality losses, and an intermediate base program with a higher coverage 
   and cost than catastrophic risk protection.                             
       ``(5) Use of resulting policies.--The Corporation may offer any     
   policy developed under this subsection that is approved by the Board.   
       ``(6) Research and development priorities.--The Corporation shall   
   establish as 1 of the highest research and development priorities of the
   Corporation the development of a pasture, range, and forage program.    
     ``(7)  Study of multiyear coverage.--                                 

       ``(A) In general.--The Corporation shall contract with a qualified  
   person to conduct a study to determine whether offering policies that   
   provide coverage for multiple years would reduce fraud, waste, and abuse
   by persons that participate in the Federal crop insurance program.      
       ``(B) Report.--Not later than 1 year after the date of enactment of 
   this section, the Corporation shall submit to the Committee on          
   Agriculture of the House of Representatives and the Committee on        
   Agriculture, Nutrition, and Forestry of the Senate a report that        
   describes the results of the study conducted under subparagraph (A).    
       ``(8) Contract for revenue coverage plans.--The Corporation shall   
   enter into a contract for research and development regarding 1 or more  
   revenue coverage plans that are designed to enable producers to take    
   maximum advantage of fluctuations in market prices and thereby maximize 
   revenue realized from the sale of an agricultural commodity. A revenue  
   coverage plan may include the use of existing market instruments or the 
   development of new market instruments. Not later than 15 months after   
   the date of the enactment of this section, the Corporation shall submit 
   to the Committee on Agriculture of the                                  

                    House of Representatives and the Committee on Agriculture,    
          Nutrition, and Forestry of the Senate a report that describes the       
          results of the contract entered into under this paragraph.              
     ``(9)  Contract for cost of production policy.--                      

       ``(A) Authority.--The Corporation shall enter into a contract for   
   research and development regarding a cost of production policy.         
     ``(B)  Research and development.--The research and development shall--

       ``(i) take into consideration the differences in the cost of        
   production on a county-by-county basis; and                             
     ``(ii) cover as many commodities as is practicable.                   

       ``(10) Relation to limitations.--A policy developed under this      
   subsection may be prepared without regard to the limitations of this    
   title, including--                                                      
     ``(A) the requirement concerning the levels of coverage and rates; and

       ``(B) the requirement that the price level for each insured         
   agricultural commodity must equal the expected market price for the     
   agricultural commodity, as established by the Board.                    
     ``(d) Partnerships for Risk Management Development and               
  Implementation.--                                                       
       ``(1) Purpose.--The purpose of this subsection is to authorize the  
   Corporation to enter into partnerships with public and private entities 
   for the purpose of increasing the availability of loss mitigation,      
   financial, and other risk management tools for producers, with a        
   priority given to risk management tools for producers of agricultural   
   commodities covered by section 196 of the Agricultural Market Transition
   Act (7 U.S.C. 7333), specialty crops, and underserved agricultural      
   commodities.                                                            
       ``(2) Authority.--The Corporation may enter into partnerships with  
   the Cooperative State Research, Education, and Extension Service, the   
   Agricultural Research Service, the National Oceanic Atmospheric         
   Administration, and other appropriate public and private entities with  
   demonstrated capabilities in developing and implementing risk management
   and marketing options for producers of specialty crops and underserved  
   agricultural commodities.                                               
       ``(3) Objectives.--The Corporation may enter into a partnership     
   under paragraph (2)--                                                   
       ``(A) to enhance the notice and timeliness of notice of weather     
   conditions that could negatively affect crop yields, quality, and final 
   product use in order to allow producers to take preventive actions to   
   increase end product profitability and marketability and to reduce the  
   possibility of crop insurance claims;                                   
       ``(B) to develop a multifaceted approach to pest management and     
   fertilization to decrease inputs, decrease environmental exposure, and  
   increase application efficiency;                                        
       ``(C) to develop or improve techniques for planning, breeding,      
   planting, growing, maintaining, harvesting, storing, shipping, and      
   marketing that will address quality and quantity challenges associated  
   with year-to-year and regional variations;                              
       ``(D) to clarify labor requirements and assist producers in         
   complying with requirements to better meet the physically intense and   
   time-compressed planting, tending, and harvesting requirements          
   associated with the production of specialty crops and underserved       
   agricultural commodities;                                               
       ``(E) to provide assistance to State foresters or equivalent        
   officials for the prescribed use of burning on private forest land for  
   the prevention, control, and suppression of fire;                       
       ``(F) to provide producers with training and informational          
   opportunities so that the producers will be better able to use financial
   management, crop insurance, marketing contracts, and other existing and 
   emerging risk management tools; and                                     
       ``(G) to develop other risk management tools to further increase    
   economic and production stability.                                      
    ``(e)  Funding.--                                                     

       ``(1) Reimbursements.--Of the amounts made available from the       
   insurance fund established under section 516(c), the Corporation may use
   to provide reimbursements under subsection (b) not more than $10,000,000
   for each of fiscal years 2001 and 2002 and not more than $15,000,000 for
   fiscal year 2003 and each subsequent fiscal year.                       
     ``(2)  Contracting.--                                                 

       ``(A) Authority.--Of the amounts made available from the insurance  
   fund established under section 516(c), the Corporation may use to carry 
   out contracting and partnerships under subsections (c) and (d) not more 
   than $20,000,000 for each of fiscal years 2001 through 2003 and not more
   than $25,000,000 for fiscal year 2004 and each subsequent fiscal year.  
       ``(B) Underserved states.--Of the amount made available under       
   subparagraph (A) for a fiscal year, the Corporation shall use not more  
   than $5,000,000 for the fiscal year to carry out contracting for        
   research and development to carry out the purpose described in          
   subsection (c)(1)(A).                                                   
       ``(3) Unused funding.--If the Corporation determines that the amount
   available to provide either reimbursement payments or contract payments 
   under this section for a fiscal year is not needed for such purposes,   
   the Corporation may use the excess amount to carry out another function 
   authorized under this section.                                          
     ``(4)  Prohibited research and development by corporation.--          

       ``(A) New policies.--Notwithstanding subsection (d), on and after   
   October 1, 2000, the Corporation shall not conduct research and         
   development for any new policy for an agricultural commodity offered    
   under this title.                                                       
       ``(B) Existing policies.--Any policy developed by the Corporation   
   under this title before that date may continue to be offered for sale to
   producers.''.                                                           

          SEC. 132. PILOT PROGRAMS.                                               

     (a) Authority.--The Federal Crop Insurance Act (7 U.S.C. 1501 et     
  seq.), as amended by section 131, is amended by adding at the end the   
  following:                                                              
          ``SEC. 523. PILOT PROGRAMS.                                             

    ``(a)  General Provisions.--                                          

       ``(1) Authority.--Except as otherwise provided in this section, the 
   Corporation may conduct a pilot program submitted to and approved by the
   Board under section 508(h), or that is developed under subsection (b) or
   section 522, to evaluate whether a proposal or new risk management tool 
   tested by the pilot program is suitable for the marketplace and         
   addresses the needs of producers of agricultural commodities.           
       ``(2) Private coverage.--Under this section, the Corporation shall  
   not conduct any pilot program that provides insurance protection against
   a risk if insurance protection against the risk is generally available  
   from private companies.                                                 
       ``(3) Covered activities.--The pilot programs described in paragraph
   (1) may include pilot programs providing insurance protection against   
   losses involving--                                                      
       ``(A) reduced forage on rangeland caused by drought or insect       
   infestation;                                                            
     ``(B) livestock poisoning and disease;                                

     ``(C) destruction of bees due to the use of pesticides;               

       ``(D) unique special risks related to fruits, nuts, vegetables, and 
   specialty crops in general, aquacultural species, and forest industry   
   needs (including appreciation);                                         
     ``(E) after October 1, 2001, wild salmon, except that--               

       ``(i) any pilot program with regard to wild salmon may be carried   
   out without regard to the limitations of this title; and                
       ``(ii) the Corporation shall conduct all wild salmon programs under 
   this title so that, to the maximum extent practicable, all costs        
   associated with conducting the programs are not expected to exceed      
   $1,000,000 for fiscal year 2002 and each subsequent fiscal year.        
     ``(4)  Scope of pilot programs.--The Corporation may--                

       ``(A) approve a pilot program under this section to be conducted on 
   a regional, State, or national basis after considering the interests of 
   affected producers and the interests of, and risks to, the Corporation; 
       ``(B) operate the pilot program, including any modifications of the 
   pilot program, for a period of up to 4 years;                           
       ``(C) extend the time period for the pilot program for additional   
   periods, as determined appropriate by the Corporation; and              
     ``(D) provide pilot programs that would allow producers--             

       ``(i) to receive a reduced premium for using whole farm units or    
   single crop units of insurance; and                                     
     ``(ii) to cross State and county boundaries to form insurable units.  

     ``(5)  Evaluation.--                                                  

       ``(A) Requirement.--After the completion of any pilot program under 
   this section, the Corporation shall evaluate the pilot program and      
   submit to the Committee on Agriculture of the House of Representatives  
   and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
   a report on the operations of the pilot program.                        
       ``(B) Evaluation and recommendations.--The report shall include an  
   evaluation by the Corporation of the pilot program and the              
   recommendations of the Corporation with respect to implementing the     
   program on a national basis.                                            
    ``(b)  Livestock Pilot Programs.--                                    

       ``(1) Definition of livestock.--In this subsection, the term        
   `livestock' includes, but is not limited to, cattle, sheep, swine,      
   goats, and poultry.                                                     
       ``(2) Programs required.--Subject to paragraph (7), the Corporation 
   shall conduct 2 or more pilot programs to evaluate the effectiveness of 
   risk management tools for livestock producers, including the use of     
   futures and options contracts and policies and plans of insurance that  
   protect the interests of livestock producers and that provide--         
       ``(A) livestock producers with reasonable protection from the       
   financial risks of price or income fluctuations inherent in the         
   production and marketing of livestock; or                               
     ``(B) protection for production losses.                               

       ``(3) Purpose of programs.--To the maximum extent practicable, the  
   Corporation shall evaluate the greatest number and variety of pilot     
   programs described in paragraph (2) to determine which of the offered   
   risk management tools are best suited to protect livestock producers    
   from the financial risks associated with the production and marketing of
   livestock.                                                              
       ``(4) Timing.--The Corporation shall begin conducting livestock     
   pilot programs under this subsection during fiscal year 2001.           
       ``(5) Relation to other limitations.--Any policy or plan of         
   insurance offered under this subsection may be prepared without regard  
   to the limitations of this title.                                       
       ``(6) Assistance.--As part of a pilot program under this subsection,
   the Corporation may provide reinsurance for policies or plans of        
   insurance and subsidize the purchase of futures and options contracts or
   policies and plans of insurance offered under the pilot program.        
       ``(7) Private insurance.--No action may be undertaken with respect  
   to a risk under this subsection if the Corporation determines that      
   insurance protection for livestock producers against the risk is        
   generally available from private companies.                             
       ``(8) Location.--The Corporation shall conduct the livestock pilot  
   programs under this subsection in a number of counties that is          
   determined by the Corporation to be adequate to provide a comprehensive 
   evaluation of the feasibility, effectiveness, and demand among producers
   for the risk management tools evaluated in the pilot programs.          
       ``(9) Eligible producers.--Any producer of a type of livestock      
   covered by a pilot program under this subsection that owns or operates a
   farm or ranch in a county selected as a location                        

                    for that pilot program shall be eligible to participate in    
          that pilot program.                                                     
       ``(10) Limitation on expenditures.--The Corporation shall conduct   
   all livestock programs under this title so that, to the maximum extent  
   practicable, all costs associated with conducting the livestock programs
   (other than research and development costs covered by section 522) are  
   not expected to exceed the following:                                   
     ``(A) $10,000,000 for each of fiscal years 2001 and 2002.             

     ``(B) $15,000,000 for fiscal year 2003.                               

       ``(C) $20,000,000 for fiscal year 2004 and each subsequent fiscal   
   year.                                                                   
    ``(c)  Revenue Insurance Pilot Program.--                             

       ``(1) In general.--Subject to section 522(e)(4), the Secretary shall
   carry out a pilot program in a limited number of counties, as determined
   by the Secretary, for crop years 1997 through 2001, under which a       
   producer of wheat, feed grains, soybeans, or such other commodity as the
   Secretary considers appropriate may elect to receive insurance against  
   loss of revenue, as determined by the Secretary.                        
       ``(2) Administration.--Revenue insurance under this subsection      
   shall--                                                                 
       ``(A) be offered through reinsurance arrangements with private      
   insurance companies;                                                    
       ``(B) offer at least a minimum level of coverage that is an         
   alternative to catastrophic crop insurance;                             
     ``(C) be actuarially sound; and                                       

       ``(D) require the payment of premiums and administrative fees by an 
   insured producer.                                                       
    ``(d)  Premium Rate Reduction Pilot Program.--                        

       ``(1) Purpose.--The purpose of the pilot program established under  
   this subsection is to determine whether approved insurance providers    
   will compete to market policies or plans of insurance with reduced rates
   of premium, in a manner that maintains the financial soundness of       
   approved insurance providers and is consistent with the integrity of the
   Federal crop insurance program.                                         
     ``(2)  Establishment.--                                               

       ``(A) In general.--Beginning with the 2002 crop year, the           
   Corporation shall establish a pilot program under which approved        
   insurance providers may propose for approval by the Board policies or   
   plans of insurance with reduced rates of premium--                      
     ``(i) for 1 or more agricultural commodities; and                     

       ``(ii) within a limited geographic area, as proposed by the approved
   insurance provider and approved by the Board.                           
       ``(B) Determination by board.--The Board shall approve a policy or  
   plan of insurance proposed under this subsection that involves a premium
   reduction if the Board determines that--                                
       ``(i) the interests of producers are adequately protected within the
   pilot area;                                                             
       ``(ii) rates of premium are actuarially appropriate, as determined  
   by the Board;                                                           
     ``(iii) the size of the proposed pilot area is adequate;              

       ``(iv) the proposed policy or plan of insurance would not unfairly  
   discriminate among producers within the proposed pilot area;            
       ``(v) if the proposed policy or plan of insurance were available in 
   a geographic area larger than the proposed pilot area, the proposed     
   policy or plan of insurance would--                                     
         ``(I) not have a significant adverse impact on the crop insurance  
    delivery system;                                                        
      ``(II) not result in a reduction of program integrity;                

      ``(III) be actuarially appropriate; and                               

         ``(IV) not place an additional financial burden on the Federal     
    Government; and                                                         
       ``(vi) the proposed policy or plan of insurance meets other         
   requirements of this title determined appropriate by the Board.         
       ``(C) Time limitations and procedures.--The time limitations and    
   procedures of the Board established under section 508(h) shall apply to 
   a proposal submitted under this subsection.''.                          
     (b) Conforming Amendments.--Section 518 of the Federal Crop Insurance
  Act (7 U.S.C. 1518) is amended--                                        
     (1) by striking ``livestock and'' after ``commodity, excluding''; and 

       (2) by striking ``under subsection (a) or (m) of section 508 of this
   title''.                                                                
          SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE.                     

     The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as amended by
  section 132(a), is amended by adding at the end the following:          
          ``SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE.                   

    ``(a)  Education Assistance.--                                        

       ``(1) In general.--Subject to the amounts made available under      
   paragraph (4)--                                                         
       ``(A) the Corporation shall carry out the program established under 
   paragraph (2); and                                                      
       ``(B) the Secretary, acting through the Cooperative State Research, 
   Education, and Extension Service, shall carry out the program           
   established under paragraph (3).                                        
       ``(2) Education and information.--The Corporation shall establish a 
   program under which crop insurance education and information is provided
   to producers in States in which (as determined by the Secretary)--      
       ``(A) there is traditionally, and continues to be, a low level of   
   Federal crop insurance participation and availability; and              
     ``(B) producers are underserved by the Federal crop insurance program.


     ``(3)  Partnerships for risk management education.--                  

       ``(A) Authority.--The Secretary, acting through the Cooperative     
   State Research, Education, and Extension Service, shall establish a     
   program under which competitive grants are made to qualified public and 
   private entities (including land grant colleges, cooperative extension  
   services, and colleges or universities), as determined by the Secretary,
   for the purpose of educating agricultural producers about the full range
   of risk management activities, including futures, options, agricultural 
   trade options, crop insurance, cash forward contracting, debt reduction,
   production diversification, farm resources risk reduction, and other    
   risk management strategies.                                             
       ``(B) Basis for grants.--A grant under this paragraph shall be      
   awarded on the basis of merit and shall be subject to peer or merit     
   review.                                                                 
       ``(C) Obligation period.--Funds for a grant under this paragraph    
   shall be available to the Secretary for obligation for a 2-year period. 
       ``(D) Administrative costs.--The Secretary may use not more than 4  
   percent of the funds made available for grants under this paragraph for 
   administrative costs incurred by the Secretary in carrying out this     
   paragraph.                                                              
       ``(4) Funding.--From the insurance fund established under section   
   516(c), there is transferred--                                          
       ``(A) for the education and information program established under   
   paragraph (2), $5,000,000 for fiscal year 2001 and each subsequent      
   fiscal year; and                                                        
       ``(B) for the partnerships for risk management education program    
   established under paragraph (3), $5,000,000 for fiscal year 2001 and    
   each subsequent fiscal year.                                            
    ``(b)  Agricultural Management Assistance.--                          

       ``(1) Authority.--The Secretary shall provide cost share assistance 
   to producers, in a manner determined by the Secretary, in not less than 
   10, nor more than 15, States in which participation in the Federal crop 
   insurance program is historically low, as determined by the Secretary.  
       ``(2) Uses.--A producer may use cost share assistance provided under
   this subsection to--                                                    
     ``(A) construct or improve--                                          

     ``(i) watershed management structures; or                             

     ``(ii) irrigation structures;                                         

     ``(B) plant trees to form windbreaks or to improve water quality;     

       ``(C) mitigate financial risk through production diversification or 
   resource conservation practices, including--                            
     ``(i) soil erosion control;                                           

     ``(ii) integrated pest management; or                                 

     ``(iii) transition to organic farming;                                

       ``(D) enter into futures, hedging, or options contracts in a manner 
   designed to help reduce production, price, or revenue risk;             
       ``(E) enter into agricultural trade options as a hedging transaction
   to reduce production, price, or revenue risk; or                        
       ``(F) conduct any other activity related to the activities described
   in subparagraphs (A) through (E), as determined by the Secretary.       
       ``(2) Payment limitation.--The total amount of payments made to a   
   person (as defined in section 1001(5) of the Food Security Act (7 U.S.C.
   1308(5))) under this subsection for any year may not exceed $50,000.    
     ``(3)  Commodity credit corporation.--                                

       ``(A) In general.--The Secretary shall carry out this subsection    
   through the Commodity Credit Corporation.                               
       ``(B) Funding.--The Commodity Credit Corporation shall make         
   available to carry out this subsection $10,000,000 for fiscal year 2001 
   and each subsequent fiscal year.''.                                     
          SEC. 134. OPTIONS PILOT PROGRAM.                                        

     Section 191 of the Agricultural Market Transition Act (7 U.S.C. 7331)
  is amended--                                                            
       (1) in the first sentence of subsection (b), by striking ``100      
   counties, except that not more than 6'' and inserting ``300 counties,   
   except that not more than 25'';                                         
       (2) in subsection (c)(2), by inserting before the semicolon the     
   following: ``during any calendar year in which a county in which the    
   farm of the producer is located is included in the pilot program''; and 
       (3) in the first sentence of subsection (h), by inserting before the
   period at the end the following: ``, except that the amount of Commodity
   Credit Corporation funds used to carry out this section shall not       
   exceed, to the maximum extent practicable, $9,000,000 for fiscal year   
   2001, $15,000,000 for fiscal year 2002, and $2,000,000 for fiscal year  
   2003''.                                                                 

           Subtitle D--Administration                                              

          SEC. 141. RELATION TO OTHER LAWS.                                       

     Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502), as    
  amended by section 122, is amended by adding at the end the following:  
    ``(d)  Relation to Other Laws.--                                      

       ``(1) Terms and conditions of policies and plans.--The terms and    
   conditions of any policy or plan of insurance offered under this title  
   that is reinsured by the Corporation shall not--                        
       ``(A) be subject to the jurisdiction of the Commodity Futures       
   Trading Commission or the Securities and Exchange Commission; or        
       ``(B) be considered to be accounts, agreements (including any       
   transaction that is of the character of, or is commonly known to the    
   trade as, an `option', `privilege', `indemnity', `bid', `offer', `put', 
   `call', `advance guaranty', or `decline guaranty'), or transactions     
   involving contracts of sale of a commodity for future delivery, traded  
   or executed on a                                                        

                    contract market for the purposes of the Commodity Exchange Act
          (7 U.S.C. 1 et seq.).                                                   
       ``(2) Effect on cftc and commodity exchange act.--Nothing in this   
   title affects the jurisdiction of the Commodity Futures Trading         
   Commission or the applicability of the Commodity Exchange Act (7 U.S.C. 
   1 et seq.) to any transaction conducted on a contract market under that 
   Act by an approved insurance provider to offset the approved insurance  
   provider's risk under a plan or policy of insurance under this title.''.
          SEC. 142. MANAGEMENT OF CORPORATION.                                    

    (a)  Board of Directors of Corporation.--                             

       (1) Change in composition.--Section 505 of the Federal Crop         
   Insurance Act (7 U.S.C. 1505) is amended by striking the section        
   heading, `` Sec. 505.'', and subsection (a) and inserting the following:
          ``SEC. 505. MANAGEMENT OF CORPORATION.                                  

    ``(a)  Board of Directors.--                                          

       ``(1) Establishment.--The management of the Corporation shall be    
   vested in a Board of Directors subject to the general supervision of the
   Secretary.                                                              
       ``(2) Composition.--The Board shall consist of only the following   
   members:                                                                
       ``(A) The manager of the Corporation, who shall serve as a nonvoting
   ex officio member.                                                      
       ``(B) The Under Secretary of Agriculture responsible for the Federal
   crop insurance program.                                                 
       ``(C) 1 additional Under Secretary of Agriculture (as designated by 
   the Secretary).                                                         
     ``(D) The Chief Economist of the Department of Agriculture.           

     ``(E) 1 person experienced in the crop insurance business.            

       ``(F) 1 person experienced in reinsurance or the regulation of      
   insurance.                                                              
       ``(G) 4 active producers who are policy holders, are from different 
   geographic areas of the United States, and represent a cross-section of 
   agricultural commodities grown in the United States, including at least 
   1 specialty crop producer.                                              
       ``(3) Appointment of private sector members.--The members of the    
   Board described in subparagraphs (E), (F), and (G) of paragraph (2)--   
       ``(A) shall be appointed by, and hold office at the pleasure of, the
   Secretary;                                                              
     ``(B) shall not be otherwise employed by the Federal Government;      

       ``(C) shall be appointed to staggered 4-year terms, as determined by
   the Secretary; and                                                      
     ``(D) shall serve not more than 2 consecutive terms.                  

       ``(4) Chairperson.--The Board shall select a member of the Board to 
   serve as Chairperson.''.                                                
       (2) Implementation.--The initial members of the Board of Directors  
   of the Federal Crop Insurance Corporation required to be appointed under
   section 505(a)(3) of the Federal Crop Insurance Act (as amended by      
   paragraph (1)) shall be appointed during the period beginning February  
   1, 2001, and ending April 1, 2001.                                      
       (3) Effect on existing board.--A member of the Board of Directors of
   the Federal Crop Insurance Corporation on the date of enactment of this 
   Act may continue to serve as a member of the Board until the members    
   referred to in paragraph (2) are first appointed.                       
     (b) Expert Review of Policies, Plans of Insurance, and Related       
  Material.--Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505)
  is amended by adding at the end the following:                          
     ``(e) Expert Review of Policies, Plans of Insurance, and Related     
  Material.--                                                             
       ``(1) Review by experts.--The Board shall establish procedures under
   which any policy or plan of insurance, as well as any related material  
   or modification of such a policy or plan of insurance, to be offered    
   under this title shall be subject to independent reviews by persons     
   experienced as actuaries and in underwriting, as determined by the      
   Board.                                                                  
       ``(2) Review of corporation policies and plans.--Except as provided 
   in paragraph (3), the Board shall contract with at least 5 persons to   
   each conduct a review of the policy or plan of insurance, of whom--     
       ``(A) not more than 1 person may be employed by the Federal         
   Government; and                                                         
       ``(B) at least 1 person must be designated by approved insurance    
   providers pursuant to procedures determined by the Board.               
       ``(3) Review of private submissions.--If the reviews under paragraph
   (1) cover a policy or plan of insurance, or any related material or     
   modification of a policy or plan of insurance, submitted under section  
   508(h)--                                                                
       ``(A) the Board shall contract with at least 5 persons to each      
   conduct a review of the policy or plan of insurance, of whom--          
       ``(i) not more than 1 person may be employed by the Federal         
   Government; and                                                         
     ``(ii) none may be employed by an approved insurance provider; and    

       ``(B) each review must be completed and submitted to the Board not  
   later than 30 days prior to the end of the 120-day period described in  
   section 508(h)(4)(D).                                                   
       ``(4) Consideration of reviews.--The Board shall include reviews    
   conducted under this subsection as part of the consideration of any     
   policy or plan or insurance, or any related material or modification of 
   a policy or plan of insurance, proposed to be offered under this title. 
       ``(5) Funding of reviews.--Each contract to conduct a review under  
   this subsection shall be funded from amounts made available under       
   section 516(b)(2)(A)(ii).                                               
       ``(6) Relation to other authority.--The contract authority provided 
   in this subsection is in addition to any other                          

                    contracting authority that may be exercised by the Board under
          section 506(l).''.                                                      
          SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE.                 

     Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C.        
  1507(c)(2)) is amended--                                                
       (1) by striking ``actuarial, loss adjustment,'' and inserting       
   ``actuarial services, services relating to loss adjustment and rating   
   plans of insurance,''; and                                              
       (2) by inserting after ``private sector'' the following: ``and to   
   enable the Corporation to concentrate on regulating the provision of    
   insurance under this title and evaluating new products and materials    
   submitted under section 508(h) or 523''.                                
          SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMATION.        

     Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C.        
  1508(a)(5)) is amended--                                                
       (1) by redesignating subparagraphs (A) and (B) as clauses (i) and   
   (ii), respectively, and moving such clauses 2 ems to the right;         
     (2) by striking ``The Corporation'' and inserting the following:      

     ``(A)  Available information.--The Corporation''; and                 

     (3) by adding at the end the following:                               

     ``(B)  Use of electronic methods.--                                   

       ``(i) Dissemination by corporation.--The Corporation shall make the 
   information described in subparagraph (A) available electronically to   
   producers and approved insurance providers.                             
       ``(ii) Submission to corporation.--To the maximum extent            
   practicable, the Corporation shall allow producers and approved         
   insurance providers to use electronic methods to submit information     
   required by the Corporation.''.                                         
          SEC. 145. ADEQUATE COVERAGE FOR STATES.                                 

     Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))  
  is amended by adding at the end the following:                          
     ``(7)  Adequate coverage for states.--                                

       ``(A) Definition of adequately served.--In this paragraph, the term 
   `adequately served' means having a participation rate that is at least  
   50 percent of the national average participation rate.                  
       ``(B) Review.--The Board shall review the policies and plans of     
   insurance that are offered by approved insurance providers under this   
   title to determine if each State is adequately served by the policies   
   and plans of insurance.                                                 
     ``(C)  Report.--                                                      

       ``(i) In general.--Not later than 30 days after completion of the   
   review under subparagraph (B), the Board shall submit to Congress a     
   report on the results of the review.                                    
       ``(ii) Recommendations.--The report shall include recommendations to
   increase participation in States that are not adequately served by the  
   policies and plans of insurance.''.                                     
          SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD.                

     (a) Persons Authorized To Submit.--Section 508(h)(1) of the Federal  
  Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by inserting after  
  ``a person'' the following: ``(including an approved insurance provider,
  a college or university, a cooperative or trade association, or any     
  other person)''.                                                        
     (b) Sale by Approved Insurance Providers.--Section 508(h)(3) of the  
  Federal Crop Insurance Act (7 U.S.C. 1508(h)(3)) is amended in the first
  sentence by inserting after ``for sale'' the following: ``by approved   
  insurance providers''.                                                  
     (c) Guidelines for Submission and Review.--Section 508(h)(4) of the  
  Federal Crop Insurance Act (7 U.S.C. 1508(h)(4)) is amended--           
     (1) by striking subparagraph (A) and inserting the following:         

     ``(A)  Confidentiality.--                                             

       ``(i) In general.--A proposal submitted to the Board under this     
   subsection (including any information generated from the proposal) shall
   be considered to be confidential commercial or financial information for
   the purposes of section 552(b)(4) of title 5, United States Code.       
       ``(ii) Standard of confidentiality.--If information concerning a    
   proposal could be withheld by the Secretary under the standard for      
   privileged or confidential information pertaining to trade secrets and  
   commercial or financial information under section 552(b)(4) of title 5, 
   United States Code, the information shall not be released to the public.
       ``(iii) Application.--This subparagraph shall apply with respect to 
   a proposal only during the period preceding any approval of the proposal
   by the Board.'';                                                        
       (2) in subparagraph (B), by inserting `` Personal presentation.--'' 
   before ``The''; and                                                     
     (3) by striking subparagraphs (C) and (D) and inserting the following:

     ``(C)  Notification of intent to disapprove.--                        

       ``(i) Time period.--The Board shall provide an applicant with       
   notification of intent to disapprove a proposal not later than 30 days  
   prior to making the disapproval.                                        
     ``(ii)  Modification of application.--                                

         ``(I) Authority.--An applicant that receives the notification may  
    modify the application, and such application, as modified, shall be     
    considered by the Board in the manner provided in subparagraph (D)      
    within the 30-day period beginning on the date the modified application 
    is submitted.                                                           
         ``(II) Time period.--Clause (i) shall not apply to the Board's     
    consideration of the modified application.                              

       ``(iii) Explanation.--Any notification of intent to disapprove a    
   policy or other material submitted under this subsection shall be       
   accompanied by a complete explanation as to the reasons for the Board's 
   intention to deny approval.                                             
     ``(D)  Determination to approve or disapprove policies or materials.--

       ``(i) Time period.--Not later than 120 days after a policy or other 
   material is submitted under this subsection, the Board shall make a     
   determination to approve or disapprove the policy or material.          
       ``(ii) Explanation.--Any determination by the Board to disapprove   
   any policy or other material shall be accompanied by a complete         
   explanation of the reasons for the Board's decision to deny approval.   
       ``(iii) Failure to meet deadline.--Notwithstanding any other        
   provision of this title, if the Board fails to make a determination     
   within the prescribed time period, the submitted policy or other        
   material shall be deemed approved by the Board for the initial          
   reinsurance year designated for the policy or material, unless the Board
   and the applicant agree to an extension.''.                             
     (d) Technical Amendments.--Section 508(h) of the Federal Crop        
  Insurance Act (7 U.S.C. 1508(h)) is amended--                           
     (1) by striking paragraphs (6), (8), (9), and (10); and               

     (2) by redesignating paragraph (7) as paragraph (6).                  

          SEC. 147. FUNDING.                                                      

     (a) Authorization of Appropriations.--Section 516(a)(2) of the       
  Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--           
     (1) by striking ``years--'' and inserting ``years the following:'';   

       (2) by capitalizing the first letter of the first word of each      
   subparagraph;                                                           
       (3) by striking ``; and'' at the end of subparagraph (A) and        
   inserting a period; and                                                 
     (4) by adding at the end the following:                               

       ``(C) Costs associated with the conduct of livestock and wild salmon
   pilot programs carried out under section 523, subject to the limitations
   in subsections (a)(3)(E)(ii) and (b)(10) of section 523.                
       ``(D) Costs associated with the reimbursement, contracting, and     
   partnerships for research and development under section 522.''.         
     (b) Payment of General Corporation Expenses From Insurance           
  Fund.--Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C.    
  1516(b)(1)) is amended--                                                
       (1) by striking ``including--'' and inserting ``including the       
   following:'';                                                           
       (2) by capitalizing the first letter of the first word of each      
   subparagraph;                                                           
       (3) by striking the semicolon at the end of subparagraph (A) and    
   inserting a period;                                                     
       (4) by striking ``; and'' at the end of subparagraph (B) and        
   inserting a period; and                                                 
     (5) by adding at the end the following:                               

       ``(D) Costs associated with the conduct of livestock and wild salmon
   pilot programs carried out under section 523, subject to the limitations
   in subsections (a)(3)(E)(ii) and (b)(10) of section 523.                
       ``(E) Costs associated with the reimbursement, contracting, and     
   partnerships for research and development under section 522.''.         
     (c) Expedited Consideration and Implementation of Policies, Plans of 
  Insurance, and Related Materials.--Section 516(b)(2) of the Federal Crop
  Insurance Act (7 U.S.C. 1516(b)(2)) is amended--                        
       (1) by striking `` Research and development ex- penses.--'' and     
   inserting `` Policy consideration and implementation.--'';              
     (2) in subparagraph (A)--                                             

     (A) by striking ``may pay from'' and inserting ``may use'';           

       (B) by striking ``research and development expenses of the          
   Corporation''; and                                                      
       (C) by striking the period at the end and inserting the following:  
   ``, to pay the following:                                               
       ``(i) Costs associated with the consideration and implementation of 
   policies, plans of insurance, and related materials submitted under     
   section 508(h) or developed under section 522 or 523.                   
       ``(ii) Costs to contract for the review of policies, plans of       
   insurance, and related materials under section 505(e) and to contract   
   for other assistance in considering policies, plans of insurance, and   
   related materials.''; and                                               
     (3) in subparagraph (B), by striking ``research and development''.    

     (d) Deposits to Insurance Fund.--Section 516(c)(1) of the Federal    
  Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended--                   
     (1) by striking ``income and'' and inserting ``income,''; and         

       (2) by inserting ``, and civil fines collected under section        
   515(h)'' after ``(a)(2)''.                                              
          SEC. 148. STANDARD REINSURANCE AGREEMENT.                               

     Notwithstanding section 536 of the Agricultural Research, Extension, 
  and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105    
  185), the Federal Crop Insurance Corporation may renegotiate the        
  Standard Reinsurance Agreement once during the 2001 through 2005        
  reinsurance years.                                                      

           Subtitle E--Miscellaneous                                               

                                 CHAPTER 1--OTHER PROVISIONS                      


          SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES.                  

     Section 508(a)(3) of the Federal Crop Insurance Act (7 U.S.C.        
  1508(a)(3)), as amended by section 123, is amended by adding at the end 
  the following:                                                          
       ``(C) Limitation on revenue coverage for potatoes.--No policy or    
   plan of insurance provided under this title (including a policy or plan 
   of insurance approved by the Board under subsection (h)) shall cover    
   losses due to a reduction in revenue for potatoes except as covered     
   under a whole farm policy or plan of insurance, as determined by the    
   Corporation.''.                                                         
          SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE.                  

     Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)), 
  as amended by 145, is amended by adding at the end the following:       
       ``(8) Special provisions for cotton and rice.--Notwithstanding any  
   other provision of this title, beginning with the 2001 crops of upland  
   cotton, extra long staple cotton, and rice, the Corporation shall offer 
   plans of insurance, including prevented planting coverage and replanting
   coverage, under this title that cover losses of upland cotton, extra    
   long staple cotton, and rice resulting from failure of irrigation water 
   supplies due to drought and saltwater intrusion.''.                     
          SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS.                     

     (a) In General.--Except as otherwise provided in this section,       
  notwithstanding section 508(c)(5) of the Federal Crop Insurance Act (7  
  U.S.C. 1508(c)(5)), a producer that purchased a 1999 Crop Revenue       
  Coverage policy for a commodity covered by Bulletin MGR 99 004 (as in   
  effect before being voided by subsection (d)) by the sales closing date 
  prescribed in the actuarial documents in the county where the policy was
  sold shall receive an indemnity payment in accordance with the policy.  
     (b) Base and Harvest Prices.--The base price and harvest price under 
  the policy for a commodity described in subsection (a) shall be         
  determined in accordance with the Commodity Exchange Endorsement        
  published by the Federal Crop Insurance Corporation on July 14, 1998 (63
  Fed. Reg. 37829).                                                       
     (c) Reinsurance.--Subject to subsection (b), notwithstanding section 
  508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(5)), the  
  Corporation shall provide reinsurance with respect to the policy in     
  accordance with the Standard Reinsurance Agreement.                     
     (d) Voiding of Bulletin.--Bulletin MGR 99 004, issued by the         
  Administrator of the Risk Management Agency of the Department of        
  Agriculture, is void.                                                   
    (e)  Effective Date.--This section takes effect on October 1, 2000.   

                    SEC. 164. SENSE OF CONGRESS REGARDING THE FEDERAL CROP        
          INSURANCE PROGRAM.                                                      
    It is the sense of Congress that--                                    

       (1) farmer-owned cooperatives play a valuable role in achieving the 
   purposes of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) by-- 
       (A) encouraging producer participation in the Federal crop insurance
   program;                                                                
     (B) improving the delivery system for crop insurance; and             

     (C) helping to develop new and improved insurance products;           

       (2) the Risk Management Agency, through its regulatory activities,  
   should encourage efforts by farmer-owned cooperatives to promote        
   appropriate risk management strategies among their membership;          
       (3) partnerships between approved insurance providers and           
   farmer-owned cooperatives provide opportunity for agricultural producers
   to obtain needed insurance coverage on a more competitive basis and at a
   lower cost;                                                             
       (4) the Risk Management Agency is following an appropriate          
   regulatory process to ensure the continued participation by farmer-owned
   cooperatives in the delivery of crop insurance;                         
       (5) efforts by the Risk Management Agency to finalize regulations   
   that would incorporate the currently approved business practices of     
   cooperatives participating in the Federal crop insurance program should 
   be commended; and                                                       
       (6) not later than 180 days after the date of enactment of this Act,
   the Federal Crop Insurance Corporation should complete promulgation of  
   the proposed rule entitled ``General Administrative Regulations; Premium
   Reductions; Payment of Rebates, Dividends, and Patronage Refunds; and   
   Payments to Insured-Owned and Record-Controlling Entities'', published  
   by the Federal Crop Insurance Corporation on May 12, 1999 (64 Fed. Reg. 
   25464), in a manner that--                                              
       (A) effectively responds to comments received from the public during
   the rulemaking process;                                                 
       (B) provides an effective opportunity for farmer-owned cooperatives 
   to assist the members of the cooperatives to obtain crop insurance and  
   participate most effectively in the Federal crop insurance program;     
       (C) incorporates the currently approved business practices of       
   farmer-owned cooperatives participating in the Federal crop insurance   
   program; and                                                            
     (D) protects the interests of agricultural producers.                 

                    SEC. 165. SENSE OF CONGRESS ON RURAL AMERICA, INCLUDING       
          MINORITY AND LIMITED-RESOURCE FARMERS.                                  
    It is the sense of Congress that--                                    

       (1) rural America, including minority and limited resource farmers, 
   has not experienced this recent period of economic prosperity;          
       (2) as a result of sustained low commodity prices, they face        
   significant challenges, including--                                     
     (A) a depressed farm economy;                                         


     (B) a loss of business and jobs on rural main streets;                

     (C) a reduction of capital investment; and                            

     (D) a loss of independent farmers;                                    

       (3) Congress applauds American farmers and rural advocates,         
   including the organizers of the Rally for Rural America, for their      
   efforts in calling this situation to the public's attention; and        
       (4) Congress is committed to responding to the concerns of rural    
   America and pledges to devote full attention to making necessary changes
   to Federal agricultural programs in a manner that will--                
     (A) alleviate the agricultural price crisis;                          

     (B) ensure competitive markets by empowering farm families;           

       (C) ensure that all farmers, including minority and limited-resource
   farmers, participate fully in the benefits of those programs;           
     (D) invest in rural education and health;                             

     (E) increase resources for outreach and technical farming assistance; 

     (F) conserve our natural resources for future generations; and        

     (G) ensure a safe and secure food supply for all.                     


           Subtitle F--Effective Dates and Implementation                          

          SEC. 171. EFFECTIVE DATES.                                              

     (a) In General.--Except as provided in subsection (b), this Act and  
  the amendments made by this Act take effect on the date of enactment of 
  this Act.                                                               
    (b)  Exceptions.--                                                    

       (1) 2001 fiscal year.--The following provisions and the amendments  
   made by the provisions take effect on October 1, 2000:                  
     (A) Subtitle C.                                                       

     (B) Section 146.                                                      

     (C) Section 163.                                                      

       (2) 2001 crop year.--The amendments made by the following provisions
   apply beginning with the 2001 crop of an agricultural commodity:        
     (A) Subsections (a), (b), and (c) of section 101.                     

     (B) Section 102(a).                                                   

     (C) Subsections (a), (b), and (c) of section 103.                     

     (D) Section 104.                                                      

     (E) Section 105(b).                                                   

     (F) Section 108.                                                      

     (G) Section 109.                                                      

     (H) Section 162.                                                      

       (3) 2001 reinsurance year.--The amendments made by the following    
   provisions apply beginning with the 2001 reinsurance year:              
     (A) Section 101(d).                                                   

     (B) Section 102(b).                                                   

     (C) Section 103(d).                                                   

          SEC. 172. REGULATIONS.                                                  

     Not later than 120 days after the date of enactment of this Act, the 
  Secretary of Agriculture shall promulgate regulations to carry out this 
  Act and the amendments made by this Act.                                
          SEC. 173. SAVINGS CLAUSE.                                               

     The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and section   
  196 of the Federal Agriculture Improvement and Reform Act of 1996 (7    
  U.S.C. 7333), as in effect on day before the date of the enactment of   
  this Act, shall--                                                       
     (1) continue to apply with respect to the 1999 crop year; and         

       (2) apply with respect to the 2000 crop year, to the extent the     
   application of an amendment made by this Act is delayed under section   
   171(b) or by the terms of the amendment.                                

           TITLE II--AGRICULTURAL ASSISTANCE                                       

           Subtitle A--Market Loss Assistance                                      

          SEC. 201. MARKET LOSS ASSISTANCE.                                       

     (a) In General.--The Secretary of Agriculture (referred to in this   
  title as the ``Secretary'') shall use funds of the Commodity Credit     
  Corporation to provide assistance in the form of a market loss          
  assistance payment to owners and producers on a farm that are eligible  
  for a final payment for fiscal year 2000 under a production flexibility 
  contract for the farm under the Agricultural Market Transition Act (7   
  U.S.C. 7201 et seq.).                                                   
     (b) Amount and Manner.--In providing payments under this section, the
  Secretary shall--                                                       
       (1) use the same contract payment rates as are used under section   
   802(b) of the Agriculture, Rural Development, Food and Drug             
   Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C. 
   1421 note; Public Law 106 78); and                                      
       (2) provide the payments in a manner that is consistent with section
   802(c) of that Act.                                                     
     (c) Timing.--The Secretary shall make the payments required by this  
  section not earlier than September 1, 2000, and not later than September
  30, 2000.                                                               
          SEC. 202. OILSEEDS.                                                     

     (a) In General.--The Secretary shall use $500,000,000 of funds of the
  Commodity Credit Corporation to make payments to producers of the 2000  
  crop of oilseeds that are eligible to obtain a marketing assistance loan
  under section 131 of the Agricultural Market Transition Act (7 U.S.C.   
  7231).                                                                  
     (b) Computation.--A payment to producers on a farm under this section
  for an oilseed shall be equal to the product obtained by multiplying--  
     (1) a payment rate determined by the Secretary;                       

       (2) the acreage of the producers on the farm for the oilseed, as    
   determined under subsection (c); and                                    

       (3) the yield of the producers on the farm for the oilseed, as      
   determined under subsection (d).                                        
    (c)  Acreage.--                                                       

       (1) In general.--Except as provided in paragraph (2), the acreage of
   the producers on the farm for an oilseed under subsection (b)(2) shall  
   be equal to the number of acres planted to the oilseed by the producers 
   on the farm during the 1997, 1998, or 1999 crop year, whichever is      
   greatest, as reported by the producers on the farm to the Secretary     
   (including any acreage reports that are filed late).                    
       (2) New producers.--In the case of producers on a farm that planted 
   acreage to an oilseed during the 2000 crop year but not the 1997, 1998, 
   or 1999 crop year, the acreage of the producers for the oilseed under   
   subsection (b)(2) shall be equal to the number of acres planted to the  
   oilseed by the producers on the farm during the 2000 crop year, as      
   reported by the producers on the farm to the Secretary (including any   
   acreage reports that are filed late).                                   
    (d)  Yield.--                                                         

       (1) Soybeans.--Except as provided in paragraph (3), in the case of  
   soybeans, the yield of the producers on a farm under subsection (b)(3)  
   shall be equal to the greatest of--                                     
       (A) the average county yield per harvested acre for each of the 1995
   through 1999 crop years, excluding the crop year with the highest yield 
   per harvested acre and the crop year with the lowest yield per harvested
   acre; or                                                                
       (B) the actual yield of the producers on the farm for the 1997,     
   1998, or 1999 crop year.                                                
       (2) Other oilseeds.--Except as provided in paragraph (3), in the    
   case of oilseeds other than soybeans, the yield of the producers on a   
   farm under subsection (b)(3) shall be equal to the greatest of--        
       (A) the average national yield per harvested acre for each of the   
   1995 through 1999 crop years, excluding the crop year with the highest  
   yield per harvested acre and the crop year with the lowest yield per    
   harvested acre; or                                                      
       (B) the actual yield of the producers on the farm for the 1997,     
   1998, or 1999 crop year.                                                
       (3) New producers.--In the case of producers on a farm that planted 
   acreage to an oilseed during the 2000 crop year but not the 1997, 1998, 
   or 1999 crop year, the yield of the producers on a farm under subsection
   (b)(3) shall be equal to the greater of--                               
       (A) the average county yield per harvested acre for each of the 1995
   through 1999 crop years, excluding the crop year with the highest yield 
   per harvested acre and the crop year with the lowest yield per harvested
   acre; or                                                                
     (B) the actual yield of the producers on the farm for the 2000 crop.  

       (4) Data source.--To the maximum extent available, the Secretary    
   shall use data provided by the National Agricultural Statistics Service 
   to carry out this subsection.                                           
          SEC. 203. SPECIALTY CROPS.                                              

     (a) Replenishment of Perishable Agricultural Commodities Act         
  Fund.--Of the amount made available Under section 261(a)(2), $30,450,000
  shall--                                                                 
       (1) be deposited in the Perishable Agricultural Commodities Act Fund
   established by section 3(b)(5) of the Perishable Agricultural           
   Commodities Act, 1930 (7 U.S.C. 499c(b)(5));                            
       (2) be merged with other amounts in the Perishable Agricultural     
   Commodities Act Fund; and                                               
       (3) be available for the same purposes and for the same time period 
   as other amounts in the Perishable Agricultural Commodities Act Fund.   
     (b) Replenishment of Trust Funds for Services Under Agricultural     
  Marketing Act of 1946.--Of the amount made available under section      
  261(a)(2), $29,000,000 shall--                                          
       (1) be deposited in the trust fund account established to cover the 
   cost of inspection, certification, and identification services provided 
   under section 203(h) of the Agricultural Marketing Act of 1946 (7 U.S.C.
   1622(h));                                                               
     (2) be merged with other amounts in the trust fund account; and       

       (3) be available for the same purposes and for the same time period 
   as other amounts in the trust fund account.                             
     (c) Inspection Services Improvements.--Of the amount made available  
  under section 261(a)(2), $11,550,000 shall be used by the Secretary to  
  improve the infrastructure and system used for inspecting fruits and    
  vegetables, including improving--                                       
       (1) the program used to train inspectors, including the             
   establishment of an inspector training center;                          
     (2) the technological resources used by inspectors;                   

     (3) the use of digital imaging by inspectors; and                     

     (4) the office space and grading tables used by inspectors.           

    (d)  Surplus Crop Purchases.--                                        

       (1) Purchases.--Of the amount made available under section          
   261(a)(2), $200,000,000 shall be used by the Secretary to purchase      
   specialty crops that have experienced low prices during the 1998 or 1999
   crop years, including apples, black-eyed peas, cherries, citrus,        
   cranberries, onions, melons, peaches, and potatoes.                     
       (2) Displacement.--The Secretary shall ensure that purchases of     
   specialty crops under this subsection will not displace purchases by the
   Secretary under any other law.                                          

    (e)  Grower Compensation.--                                           

       (1) Compensation.--Of the amount made available under section       
   261(a)(2), $25,000,000 shall be used by the Secretary to compensate--   
       (A) growers covered by the Secretary's Declaration of Extraordinary 
   Emergency published on March 2, 2000 (65 Fed. Reg. 11280), regarding the
   plum pox virus;                                                         
     (B) growers for losses due to Pierce's disease; and                   

     (C) commercial producers for losses due to citrus canker.             

       (2) Report.--Not later than July 19, 2000, the Secretary, in        
   coordination with the Inspector General of the Department of            

                    Agriculture, shall submit to the Committee on Agriculture of  
          the House of Representatives and the Committee on Agriculture,          
          Nutrition, and Forestry of the Senate a report that analyzes--          
       (A) the economic losses to the produce industry as a result of      
   allegations of false inspection certificates prepared by graders of the 
   Department of Agriculture at Hunts Point Terminal Market, Bronx, New    
   York; and                                                               
       (B) the restitution by the Secretary for persons damaged as a result
   of losses described in subparagraph (A).                                
    (f)  Apple Loans.--                                                   

       (1) Requirement.--The Secretary, acting through the Farm Service    
   Agency, shall use funds of the Commodity Credit Corporation to make     
   loans to producers of apples that are suffering economic loss as the    
   result of low prices for apples.                                        
       (2) Term.--The term of a loan made under this subsection shall be   
   not more than 3 years.                                                  
       (3) Interest rate.--The interest rate for a loan made under this    
   subsection shall be at a rate equal to the then current cost of money to
   the Government of the United States for loans of similar maturity.      
       (4) Security.--The Secretary may require a loan made under this     
   subsection to be secured by real property or such other collateral as   
   the Secretary considers appropriate and protects the interests of the   
   Federal Government.                                                     
       (5) Limitation.--The cost of all loans made under this subsection   
   shall not exceed $5,000,000.                                            
          SEC. 204. OTHER COMMODITIES.                                            

    (a)  Peanuts.--                                                       

       (1) In general.--The Secretary shall use funds of the Commodity     
   Credit Corporation to provide payments to producers of quota peanuts or 
   additional peanuts to partially compensate the producers for continuing 
   low commodity prices, and increasing costs of production, for the 2000  
   crop year.                                                              
       (2) Amount.--The amount of a payment made to producers on a farm of 
   quota peanuts or additional peanuts under paragraph (1) shall be equal  
   to the product obtained by multiplying--                                
       (A) the quantity of quota peanuts or additional peanuts produced or 
   considered produced by the producers; and                               
     (B) a payment rate equal to--                                         

     (i) in the case of quota peanuts, $30.50 per ton; and                 

     (ii) in the case of additional peanuts, $16.00 per ton.               

    (b)  Tobacco.--                                                       

     (1)  Definitions.--In this subsection:                                

       (A) Eligible person.--The term ``eligible person'' means a person   
   that owns or operates, or produces eligible tobacco on, a farm--        
       (i) for which the quantity of quota of eligible tobacco allotted to 
   the farm under part I of subtitle B of title III of the Agricultural    
   Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) was reduced from the 1999
   crop year to the 2000 crop year; and                                    
       (ii) that is used for the production of eligible tobacco during the 
   2000 crop year.                                                         
       (B) Eligible tobacco.--The term ``eligible tobacco'' means each of  
   the following kinds of tobacco:                                         
     (i) Flue-cured tobacco, comprising types 11, 12, 13, and 14.          

     (ii) Fire-cured tobacco, comprising type 21.                          

     (iii) Burley tobacco, comprising type 31.                             

       (iv) Cigar-filler and cigar-binder tobacco, comprising types 42, 43,
   44, 54, and 55.                                                         
       (2) Payments.--Effective beginning October 1, 2000, the Secretary   
   shall use $340,000,000 of funds of the Commodity Credit Corporation to  
   make payments to eligible persons.                                      
       (3) Allocation of funds among states.--The funds made available for 
   eligible persons under paragraph (2) shall be allocated among States in 
   the following dollar amounts:                                           




          Alabama                        $100,00005



          Arkansas                       1,00005



          Florida                        2,500,00005



          Georgia                        13,000,00005



          Indiana                        5,400,00005



          Kansas                         23,00005



          Kentucky                       140,000,00005



          Missouri                       2,000,00005



          North Carolina                 100,000,00005



          Ohio                           6,000,00005



          Oklahoma                       1,00005



          South Carolina                 15,000,00005



          Tennessee                      35,000,00005



          Virginia                       19,000,00005



          Wisconsin                      675,00005



          West Virginia                  1,300,000.



       (4) Allocation of funds among farms in a state.--The Secretary shall
   divide the amount allocated to a State under paragraph (3) among farms  
   in the State based on the quota of eligible tobacco available to each   
   farm of an eligible person for the 2000 crop year.                      
       (5) Division of farm payments among eligible persons in a           
   state.--Not later than October 20, 2000, the Secretary shall divide     
   amounts made available to farms in a State under paragraph (4) among    
   eligible persons who are quota owners, quota lessees, and tobacco       
   producers on farms in the State, and make payments to the eligible      
   persons, on the basis of--                                              
       (A) in the case of a State that is a party to the National Tobacco  
   Grower Settlement Trust, the formula in the Trust used to allocate funds
   among quota owners, quota lessees, and tobacco producers on farms in the
   State, with such adjustments as the Secretary determines are necessary  
   to enable the payments to be made by October 20, 2000; or               
       (B) in the case of a State that is not a party to the National      
   Tobacco Grower Settlement Trust, a formula established by the Secretary.

       (6) Payments to eligible persons in georgia.--The Secretary shall   
   use the amount allocated to the State of Georgia under paragraph (3) to 
   make payments to eligible persons in Georgia only if the State of       
   Georgia agrees to use an equal                                          

                    amount (not to exceed $13,000,000) to make payments at the    
          same time, or subsequently, to the same eligible persons in the same    
          manner as provided for the Federal payment under paragraphs (4) and (5).
       (7) Use for administrative costs.--None of the funds made available 
   under paragraphs (1) through (7) may be used to pay administrative costs
   incurred in carrying out those paragraphs.                              
       (8) Transfer of allotments.--Section 318 of the Agricultural        
   Adjustment Act of 1938 (7 U.S.C. 1314d) is amended by striking          
   subsection (g) and inserting the following:                             
     ``(g) Transfer of Allotments.--Under this section, the total acreage 
  allotted to any farm after any transfer shall not exceed 50 percent of  
  the acreage of cropland on the farm.''.                                 
       (9) Burley tobacco inventories of producer associations.--Section   
   319(c)(3) of the Agricultural Adjustment Act of 1938 (7 U.S.C.          
   1314e(c)(3)) is amended--                                               
       (A) in subparagraph (B), by striking ``In'' and inserting ``Except  
   as provided in subparagraph (D), in''; and                              
     (B) by adding at the end the following:                               

       ``(D) Nonapplicability of downward adjustment.--If the Secretary    
   determines for any of the 2001 or subsequent crop years that            
   noncommitted pool stocks of Burley tobacco are equal to or less than the
   reserve stock level established under this paragraph, subparagraph (B)  
   shall not apply to the crop year for which the determination is made and
   all subsequent crop years.''.                                           
     (10)  Limitations on burley tobacco quota adjustments.--              

       (A) Carry forward adjustment.--Section 319(e) of the Agricultural   
   Adjustment Act of 1938 (7 U.S.C. 1314e(e)) is amended in the fifth      
   sentence--                                                              
       (i) by striking ``: Provided, That'' and inserting ``, except that  
   (1)''; and                                                              
       (ii) by inserting before the period at the end the following: ``,   
   and (2) the aggregate of such increases for all farms for any crop year 
   may not exceed 10 percent of the national basic quota for the preceding 
   crop year''.                                                            
       (B) Lease and transfer of quota due to natural disasters.--Section  
   319(k) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(k)) is
   amended by adding at the end the following:                             
       ``(3) Limitation.--The total quantity of quota leased or transferred
   to a farm during a crop year under this subsection may not exceed 15    
   percent of the quota on the farm that existed prior to any such lease or
   transfer for the crop year.''.                                          

       (11) Lease and transfer of burley tobacco quota.--Section 319 of the
   Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e) is amended by      
   striking subsection (l) and inserting the following:                    
    ``(l)  Lease and Transfer of Burley Tobacco Quota.--                  

       ``(1) Approval by producers.--Notwithstanding any other provision of
   this section, the Secretary may permit the lease and transfer of a      
   burley tobacco quota from 1 farm in a State to any other farm in the    
   State if, in a statewide referendum conducted by the Secretary, a       
   majority of the active burley tobacco producers voting in the referendum
   approve the use of that type of lease and transfer.                     
       ``(2) Application.--This subsection shall apply only to the States  
   of Tennessee, Ohio, Indiana, Kentucky, and Virginia.''.                 
       (12) Recordkeeping and sale of burley tobacco quota and             
   acreage.--Section 319 of the Agricultural Adjustment Act of 1938 (7     
   U.S.C. 1314e) is amended by adding at the end the following:            
     ``(m) Computerized Recordkeeping System for Burley Tobacco Quota and 
  Acreage.--                                                              
       ``(1) Producer reports.--Each person that owns a farm for which a   
   Burley tobacco marketing quota is established under this Act shall      
   annually file with the Secretary a report describing the acreage planted
   to Burley tobacco on the farm.                                          
       ``(2) Computerized recordkeeping system.--Not later than 180 days   
   after the date of enactment of this subsection, the Secretary shall     
   establish a computerized recordkeeping system that contains all         
   information reported under paragraph (1) and related records, as        
   determined by the Secretary.                                            
     ``(n) Sale of Burley Tobacco Quota.--Notwithstanding any other       
  provision of this section, if a person that owns a farm for which a     
  Burley tobacco marketing quota is established under this Act sells all  
  or part of the acreage on the farm to a buyer, the Secretary shall      
  permit the seller and buyer of the acreage to determine the percentage  
  of the quota that is transferred with the acreage sold.''.              
    (c)  Honey.--                                                         

       (1) In general.--The Secretary shall use funds of the Commodity     
   Credit Corporation to make available recourse loans to producers of the 
   2000 crop of honey on fair and reasonable terms and conditions, as      
   determined by the Secretary.                                            
       (2) Loan rate.--The loan rate for a loan under paragraph (1) shall  
   be equal to 85 percent of the average price of honey during the 5-crop  
   year period preceding the 2000 crop year, excluding the crop year in    
   which the average price of honey was the highest and the crop year in   
   which the average price of honey was the lowest in the period.          
    (d)  Wool and Mohair.--                                               

       (1) In general.--The Secretary shall use funds of the Commodity     
   Credit Corporation to make payments to producers of wool, and producers 
   of mohair, for the 1999 marketing year.                                 
       (2) Payment rate.--The payment rate for payments made to producers  
   under paragraph (1) shall be equal to--                                 
     (A) in the case of wool, 20 cents per pound; and                      

     (B) in the case of mohair, 40 cents per pound.                        

     (e) Cottonseed.--The Secretary shall use $100,000,000 of funds of the
  Commodity Credit Corporation to provide assistance to producers and     
  first-handlers of the 2000 crop of cottonseed.                          
          SEC. 205. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS.                 

     (a) Eligible Producers.--Effective for the 2001 crop year, in the    
  case of a producer that would be eligible for a loan deficiency payment 
  under section 135 of the Agricultural Market Transition                 

                    Act (7 U.S.C. 7235) for wheat, barley, or oats, but that      
          elects to use acreage planted to the wheat, barley, or oats for the     
          grazing of livestock, the Secretary shall make a payment to the producer
          under this section if the producer enters into an agreement with the    
          Secretary to forgo any other harvesting of the wheat, barley, or oats on
          that acreage.                                                           
     (b) Payment Amount.--The amount of a payment made to a producer on a 
  farm under this section shall be equal to the amount determined by      
  multiplying--                                                           
       (1) the loan deficiency payment rate determined under section 135(c)
   of the Agricultural Market Transition Act (7 U.S.C. 7235(c)) in effect, 
   as of the date of the agreement, for the county in which the farm is    
   located; by                                                             
     (2) the payment quantity determined by multiplying--                  

       (A) the quantity of the grazed acreage on the farm with respect to  
   which the producer elects to forgo harvesting of wheat, barley, or oats;
   and                                                                     
     (B) the greater of--                                                  

     (i) the established yield for the crop on the farm; or                

       (ii) the average county yield per harvested acre of the crop, as    
   determined by the Secretary.                                            
    (c)  Time, Manner, and Availability of Payment.--                     

       (1) Time and manner.--A payment under this section shall be made at 
   the same time and in the same manner as loan deficiency payments are    
   made under section 135 of the Agricultural Market Transition Act (7     
   U.S.C. 7235), except that the payment shall be made not later than      
   September 30, 2001.                                                     
       (2) Availability.--The Secretary shall establish an availability    
   period for the payment authorized by this section that is consistent    
   with the availability period for wheat, barley, and oats established by 
   the Secretary for marketing assistance loans authorized by subtitle C of
   the Agricultural Market Transition Act (7 U.S.C. 7231 et seq.).         
     (d) Regulations.--The Secretary shall promulgate under section 263   
  such regulations as are necessary to administer the payments authorized 
  by this section in a fair and equitable manner with respect to producers
  of wheat and feed grains that do not receive a payment under this       
  section.                                                                
     (e) Funding.--The Secretary shall use funds of the Commodity Credit  
  Corporation to carry out this section.                                  

          SEC. 206. EXPANSION OF PRODUCERS ELIGIBLE FOR LOAN DEFICIENCY PAYMENTS. 

     (a) Eligible Producers.--Section 135(a) of the Agricultural Market   
  Transition Act (7 U.S.C. 7235(a)) is amended--                          
     (1) by striking ``to producers'' and inserting ``to--                 

     ``(1) producers'';                                                    

     (2) by striking the period at the end and inserting ``; and''; and    

     (3) by adding at the end the following:                               

       ``(2) effective only for the 2000 crop year, producers that,        
   although not eligible to obtain such a marketing assistance loan under  
   section 131, produce a contract commodity.''.                           
     (b) Calculation.--Section 135(b)(2) of the Agricultural Market       
  Transition Act (7 U.S.C. 7235(b)(2)) is amended by striking ``that the  
  producers'' and all that follows through the period at the end and      
  inserting the following: ``produced by the eligible producers, excluding
  any quantity for which the producers obtain a loan under section 131.''.
     (c) Transition; Beneficial Interest.--Section 135 of the Agricultural
  Market Transition Act (7 U.S.C. 7235) is amended by adding at the end   
  the following:                                                          
     ``(e) Transition.--A payment to a producer eligible for a payment    
  under subsection (a)(2) that harvested a commodity on or before the date
  that is 30 days after the promulgation of the regulations implementing  
  subsection (a)(2) shall be determined as the date the producer lost     
  beneficial interest in the commodity, as determined by the Secretary.   
     ``(f) Beneficial Interest.--Subject to subsection (e), a producer    
  shall be eligible for a payment under this section only if the producer 
  has a beneficial interest in the commodity, as determined by the        
  Secretary.''.                                                           
           Subtitle B--Conservation                                                

          SEC. 211. CONSERVATION ASSISTANCE.                                      

     (a) Farmland Protection.--For the purposes described in section 388  
  of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
  3830 note; Public Law 104 127), the Secretary shall use $10,000,000 of  
  funds of the Commodity Credit Corporation to make payments to--         
       (1) any agency of any State or local government, or federally       
   recognized Indian tribe, including farmland protection boards and land  
   resource councils established under State law; and                      
     (2) any organization that--                                           

       (A) is organized for, and at all times since the formation of the   
   organization has been operated principally for, 1 or more of the        
   conservation purposes specified in clause (i), (ii), or (iii) of section
   170(h)(4)(A) of the Internal Revenue Code of 1986;                      
       (B) is an organization described in section 501(c)(3) of that Code  
   that is exempt from taxation under section 501(a) of that Code;         
     (C) is described in section 509(a)(2) of that Code; or                

       (D) is described in section 509(a)(3) of that Code and is controlled
   by an organization described in section 509(a)(2) of that Code.         
    (b)  Soil and Water Conservation Assistance.--                        

       (1) Establishment.--The Secretary shall use $40,000,000 of funds of 
   the Commodity Credit Corporation to provide financial assistance to     
   farmers and ranchers to--                                               
       (A) address threats to soil, water, and related natural resources,  
   including grazing land, wetland, and wildlife habitat;                  

     (B) comply with Federal and State environmental laws; and             

       (C) make beneficial, cost-effective changes to cropping systems,    
   grazing management, manure, nutrient, pest, or irrigation management,   
   land uses, or other measures needed to conserve and improve soil, water,
   and related natural resources.                                          
       (2) Type of assistance.--Assistance under this subsection may be    
   made in the form of cost share payments or incentive payments, as       
   determined by the Secretary.                                            
       (3) Areas.--The Secretary shall provide assistance under this       
   subsection to areas that are not designated under section 1230(c) of the
   Food Security Act of 1985 (16 U.S.C. 3830(c)).                          

                    SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL   
          WILDLIFE REFUGE, OHIO.                                                  
     The Secretary of the Interior, acting through the Director of the    
  United States Fish and Wildlife Service, shall prepare an environmental 
  impact statement pursuant to the National Environmental Policy Act of   
  1969 (42 U.S.C. 4321 et seq.) before proceeding with any further        
  development of the Little Darby National Wildlife Refuge in Madison and 
  Union Counties, Ohio.                                                   
           Subtitle C--Research                                                    

          SEC. 221. CARBON CYCLE RESEARCH.                                        

     (a) In General.--Of the amount made available under section          
  261(a)(2), the Secretary shall use $15,000,000 to provide a grant to the
  Consortium for Agricultural Soils Mitigation of Greenhouse Gases, acting
  through Kansas State University, to develop, analyze, and implement,    
  through the land grant universities described in subsection (b), carbon 
  cycle research at the national, regional, and local levels.             
     (b) Land Grant Universities.--The land grant universities referred to
  in subsection (a) are the following:                                    
     (1) Colorado State University.                                        

     (2) Iowa State University.                                            

     (3) Kansas State University.                                          

     (4) Michigan State University.                                        

     (5) Montana State University.                                         

     (6) Purdue University.                                                

     (7) Ohio State University.                                            

     (8) Texas A & M University.                                           

     (9) University of Nebraska.                                           

     (c) Use.--Land grant universities described in subsection (b) shall  
  use funds made available under this section--                           
       (1) to conduct research to improve the scientific basis of using    
   land management practices to increase soil carbon sequestration,        
   including research on the use of new technologies to increase carbon    
   cycle effectiveness, such as biotechnology and nanotechnology;          
       (2) to enter into partnerships to identify, develop, and evaluate   
   agricultural best practices, including partnerships between--           
     (A) Federal, State, or private entities; and                          

     (B) the Department of Agriculture;                                    

       (3) to develop necessary computer models to predict and assess the  
   carbon cycle;                                                           
       (4) to estimate and develop mechanisms to measure carbon levels made
   available as a result of--                                              
     (A) voluntary Federal conservation programs;                          

     (B) private and Federal forests; and                                  

     (C) other land uses;                                                  

       (5) to develop outreach programs, in coordination with Extension    
   Services, to share information on carbon cycle and agricultural best    
   practices that is useful to agricultural producers; and                 
       (6) to collaborate with the Great Plains Regional Earth Science     
   Application Center to develop a space-based carbon cycle remote sensing 
   technology program to--                                                 
       (A) provide, on a near-continual basis, a real-time and             
   comprehensive view of vegetation conditions;                            
     (B) assess and model agricultural carbon sequestration; and           

     (C) develop commercial products.                                      

     (d) Administrative Costs.--Not more than 3 percent of the funds made 
  available under subsection (a) may be used by the Secretary to pay      
  administrative costs incurred in carrying out this section.             
          SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES.                      

     (a) Assistance.--Of the amount made available under section          
  261(a)(2), the Secretary, acting through the Cooperative State Research,
  Education, and Extension Service, shall use $3,000,000 to provide a     
  grant jointly to Georgetown University and North Carolina State         
  University to conduct research regarding the extraction and purification
  of proteins from genetically altered tobacco that may be used as a      
  vaccine for cervical cancer.                                            
     (b) Relation to Other Law.--The Secretary may make the grant         
  described in subsection (a) notwithstanding any general prohibition on  
  the use of appropriated funds to carry out research related to the      
  production, processing, or marketing of tobacco or tobacco products.    
          SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH MANAGEMENT.        

     Of the amount made available under section 261(a)(2), the Secretary  
  shall use $10,000,000 to provide a grant to the University of Nebraska  
  in Lincoln, Nebraska, for laboratories and equipment for research on    
  soil science and forest health and management.                          
          SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK PRODUCTION.          

     Of the amount made available under section 261(a)(2), the Secretary  
  shall use $3,500,000 to expand current research related to technologies 
  for--                                                                   
       (1) reducing, modifying, recycling, and using waste streams from    
   livestock production; and                                               
     (2) eliminating associated air, water, and soil quality problems.     


                    SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND    
          POULTRY WASTE.                                                          
     (a) Assistance.--Of the amount made available under section          
  261(a)(2), the Secretary shall use $5,000,000--                         
       (1) to review and assess the actual or potential failure of waste   
   storage and handling systems used in livestock or poultry production and
   the environmental damages associated with the failure of the systems;   
   and                                                                     
       (2) to study and demonstrate appropriate market-oriented mechanisms 
   to assist livestock producers and poultry producers to prevent the      
   failure of the systems and rectify environmental damages associated with
   the failure of the systems.                                             
     (b) Implementation.--The Secretary shall carry out this section      
  through grants, contracts, and cooperative agreements with livestock    
  producers, poultry producers, associations of such producers, and       
  foundations supported by such producers.                                
          SEC. 226. ETHANOL RESEARCH PILOT PLANT.                                 

     Of the amount made available under section 261(a)(2), the Secretary  
  shall use $14,000,000 to provide a grant to the State of Illinois to    
  complete the construction of a corn-based ethanol research pilot plant  
  (agreement #59-3601 7 078) at Southern Illinois University,             
  Edwardsville, Illinois.                                                 
          SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES.             

     (a) Establishment and Purpose.--The Secretary, acting through the    
  Agricultural Research Service, may enter into a cooperative agreement   
  with the National Center for Genome Resources in Santa Fe, New Mexico,  
  New Mexico State University, and Iowa State University, for the         
  establishment and operation of an institute (to be known as the         
  ``Bioinformatics Institute for Model Plant Species'') in Santa Fe, New  
  Mexico, for the purpose of enhancing the accessibility and utility of   
  genomic information for plant genetic research.                         
     (b) Authorization of Appropriations.--There are authorized to be     
  appropriated to carry out this section--                                
       (1) $3,000,000 for the purpose of establishing the Institute under  
   subsection (a); and                                                     
       (2) such sums as may be necessary for each fiscal year to carry out 
   the cooperative agreement authorized by subsection (a).                 
           Subtitle D--Agricultural Marketing                                      


          SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.   

    (a)  Grant Program.--                                                 

       (1) Establishment and purposes.--Of the amount made available under 
   section 261(a)(2), $15,000,000 shall be used by the Secretary to award  
   competitive grants to eligible independent producers (as determined by  
   the Secretary) of value-added agricultural commodities and products of  
   agricultural commodities to assist an eligible producer--               
       (A) to develop a business plan for viable marketing opportunities   
   for a value-added agricultural commodity or product of an agricultural  
   commodity; or                                                           
       (B) to develop strategies for the ventures that are intended to     
   create marketing opportunities for the producers.                       
       (2) Amount of grant.--The total amount provided under this          
   subsection to a grant recipient may not exceed $500,000.                
       (3) Producer strategies.--A producer that receives a grant under    
   paragraph (1) shall use the grant--                                     
       (A) to develop a business plan or perform a feasibility study to    
   establish a viable marketing opportunity for a value-added agricultural 
   commodity or product of an agricultural commodity; or                   
       (B) to provide capital to establish alliances or business ventures  
   that allow the producer to better compete in domestic or international  
   markets.                                                                
    (b)  Agricultural Marketing Resource Center Pilot Project.--          

       (1) Establishment.--Notwithstanding the limitation on grants in     
   subsection (a)(2), the Secretary shall not use more than $5,000,000 of  
   the funds made available under subsection (a) to establish a pilot      
   project (to be known as the ``Agricultural Marketing Resource Center'') 
   at an eligible institution described in paragraph (2) that will--       
       (A) develop a resource center with electronic capabilities to       
   coordinate and provide to independent producers and processors (as      
   determined by the Secretary) of value-added agricultural commodities and
   products of agricultural commodities information regarding research,    
   business, legal, financial, or logistical assistance; and               
       (B) develop a strategy to establish a nationwide market information 
   and coordination system.                                                
       (2) Eligible institution.--To be eligible to receive funding to     
   establish the Agricultural Marketing Resource Center, an applicant shall
   demonstrate to the Secretary--                                          
       (A) the capacity and technical expertise to provide the services    
   described in paragraph (1)(A);                                          
       (B) an established plan outlining support of the applicant in the   
   agricultural community; and                                             
       (C) the availability of resources (in cash or in kind) of definite  
   value to sustain the Center following establishment.                    
     (c) Matching Funds.--A recipient of funds under subsection (a) or (b)
  shall contribute an amount of non-Federal funds that is at least equal  
  to the amount of Federal funds received.                                
     (d) Limitation.--Funds provided under this section may not be used   
  for--                                                                   
       (1) planning, repair, rehabilitation, acquisition, or construction  
   of a building or facility (including a processing facility); or         
     (2) the purchase, rental, or installation of fixed equipment.         


           Subtitle E--Nutrition Programs                                          

                    SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR    
          SCHOOL LUNCH REQUIREMENTS.                                              
     (a) Fiscal Year 2000.--Notwithstanding any other provision of law, in
  addition to any assistance provided under any other provision of law, of
  the amount made available under section 261(a)(1), the Secretary shall  
  use $34,000,000 in fiscal year 2000 to purchase commodities of the type 
  provided under section 6 of the Richard B. Russell National School Lunch
  Act (42 U.S.C. 1755) for distribution to schools participating in the   
  school lunch program established under that Act (42 U.S.C. 1751 et      
  seq.).                                                                  
     (b) Fiscal Year 2001.--Section 6(e)(1)(B) of the Richard B. Russell  
  National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by       
  striking ``2000'' and inserting ``2001''.                               
     (c) Additional Commodities in Fiscal Year 2001.--Notwithstanding any 
  other provision of law, in addition to any assistance provided under any
  other provision of law (including the amendment made by subsection (b)),
  of the amount made available under section 261(a)(2), the Secretary     
  shall use $21,000,000 in fiscal year 2001 to purchase commodities of the
  type provided under section 6 of the Richard B. Russell National School 
  Lunch Act (42 U.S.C. 1755) for distribution to schools participating in 
  the school lunch program established under that Act (42 U.S.C. 1751 et  
  seq.).                                                                  
     (d) Distribution to Schools.--The commodities purchased under        
  subsections (a) and (c) shall, to the maximum extent practicable, be    
  distributed in the same manner as commodities are distributed under     
  section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C.
  1755).                                                                  
          SEC. 242. SCHOOL LUNCH DATA.                                            

    (a)  Limited Waiver of Confidentiality Requirement.--                 

       (1) In general.--Section 9(b)(2)(C)(iii) of the Richard B. Russell  
   National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii)) is amended--   
     (A) in subclause (II), by striking ``and'' at the end;                

       (B) in subclause (III), by striking the period at the end and       
   inserting ``; and''; and                                                
     (C) by adding at the end the following:                               

         ``(IV) a person directly connected with the administration of the  
    State medicaid program under title XIX of the Social Security Act (42   
    U.S.C. 1396 et seq.) or the State children's health insurance program   
    under title XXI of that Act (42 U.S.C. 1397aa et seq.) solely for the   
    purpose of identifying children eligible for benefits under, and        
    enrolling children in, such programs, except that this subclause shall  
    apply only to the extent that the State and the school food authority so
    elect.''.                                                               
       (2) Certification and notification.--Section 9(b)(2)(C) of the      
   Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C))  
   is amended by adding at the end the following:                          
       ``(vi) Requirements for waiver of confidentiality.--A State that    
   elects to exercise the option described in clause (iii)(IV) shall ensure
   that any school food authority acting in accordance with that option--  
         ``(I) has a written agreement with the State or local agency or    
    agencies administering health insurance programs for children under     
    titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq.,  
    1397aa et seq.) that requires the health agencies to use the information
    obtained under clause (iii) to seek to enroll children in those health  
    insurance programs; and                                                 
         ``(II)(aa) notifies each household, the information of which shall 
    be disclosed under clause (iii), that the information disclosed will be 
    used only to enroll children in health programs referred to in clause   
    (iii)(IV); and                                                          
         ``(bb) provides each parent or guardian of a child in the household
    with an opportunity to elect not to have the information disclosed.     
       ``(vii) Use of disclosed information.--A person to which information
   is disclosed under clause (iii)(IV) shall use or disclose the           
   information only as necessary for the purpose of enrolling children in  
   health programs referred to in clause (iii)(IV).''.                     
    (b)  Demonstration Project.--                                         

       (1) In general.--Section 17 of the Child Nutrition Act of 1966 (42  
   U.S.C. 1786) is amended by adding at the end the following:             
     ``(r) Demonstration Project Relating to Use of the WIC Program for   
  Identification and Enrollment of Children in Certain Health Programs.-- 
       ``(1) In general.--In accordance with paragraph (2), the Secretary  
   shall establish a demonstration project in at least 20 local agencies in
   1 State under which costs of nutrition services and administration (as  
   defined in subsection (b)(4)) shall include the costs of identification 
   of children eligible for benefits under, and the provision of enrollment
   assistance for children in--                                            
       ``(A) the State medicaid program under title XIX of the Social      
   Security Act (42 U.S.C. 1396 et seq.); and                              
       ``(B) the State children's health insurance program under title XXI 
   of that Act (42 U.S.C. 1397aa et seq.).                                 
       ``(2) State-related requirements.--The State in which a             
   demonstration project is established under paragraph (1)--              
     ``(A) shall operate not fewer than 20 pilot site locations;           

     ``(B) as of the date of establishment of the demonstration project--  

       ``(i) with respect to the programs referred to in subparagraphs (A) 
   and (B) of paragraph (1)--                                              
         ``(I) shall have in use a simplified application form with a length
    of not more than 2 pages;                                               
      ``(II) shall accept mail-in applications; and                         

         ``(III) shall permit enrollment in the program in a variety of     
    locations; and                                                          

       ``(ii) shall have served as an original pilot site for the program  
   under this section; and                                                 
     ``(C) as of December 31, 1998, shall have had--                       

     ``(i) an infant mortality rate that is above the national average; and

       ``(ii) an overall rate of age-appropriate immunizations against     
   vaccine-preventable diseases that is below 80 percent.                  
       ``(3) Termination of authority.--The authority provided by this     
   subsection terminates September 30, 2003.''.                            
       (2) Technical amendments.--Section 17 of the Child Nutrition Act of 
   1966 (42 U.S.C. 1786) is amended--                                      
       (A) in subsection (b)(4), by striking ``(4)'' and all that follows  
   through ``means'' and inserting ``(4) `Costs of nutrition services and  
   administration' or `nutrition services and administration' means''; and 
       (B) in subsection (h)(1)(A), by striking ``costs incurred by State  
   and local agencies for nutrition services and administration'' and      
   inserting ``costs of nutrition services and administration incurred by  
   State and local agencies''.                                             
       (3) Grant for demonstration project.--Section 12 of the Richard B.  
   Russell National School Lunch Act (42 U.S.C. 1760) is amended by adding 
   at the end the following:                                               
    ``(p)  Grant for Demonstration Project.--                             

     ``(1)  Use of funds for wic demonstration project.--                  

       ``(A) In general.--The Secretary shall make grants of funds under   
   this subsection to a State--                                            
       ``(i) for purposes that include carrying out the demonstration      
   project under section 17(r) of the Child Nutrition Act of 1966 (42      
   U.S.C. 1786(r)); and                                                    
       ``(ii) for the purpose described in clause (i), in amounts not to   
   exceed $10,000 for each fiscal year for each site in the State.         
       ``(B) Apportionment.--A State that receives a grant under           
   subparagraph (A) shall apportion the funds received to ensure that each 
   site in the State receives not more than $10,000 for any fiscal year.   
       ``(2) Evaluations of demonstration project.--The Secretary shall    
   conduct an evaluation of the demonstration project and grant program for
   identification and enrollment efforts funded under this subsection that 
   include a determination of--                                            
       ``(A) the number of children enrolled as a result of the enactment  
   of this subsection;                                                     
     ``(B) the income levels of the families of enrolled children;         

       ``(C) the cost of identification and enrollment assistance services 
   provided under the project or grant program;                            
       ``(D) the effect on the caseloads of local agencies that carry out  
   the special supplemental nutrition program for women, infants, and      
   children established under section 17 of the Child Nutrition Act of 1966
   (42 U.S.C. 1786); and                                                   
       ``(E) such other factors as the Secretary determines to be          
   appropriate.                                                            
     ``(3)  Funding.--                                                     

       ``(A) In general.--Out of any moneys in the Treasury not otherwise  
   appropriated, the Secretary of the Treasury shall provide to the        
   Secretary to carry out this subsection $1,000,000 for the period of     
   fiscal years 2001 through 2004, to remain available until expended but  
   not later than September 30, 2004.                                      
       ``(B) Receipt and acceptance.--The Secretary shall be entitled to   
   receive the funds and shall accept the funds provided under subparagraph
   (A), without further appropriation.''.                                  
     (c) Effective Date.--The amendments made by this section take effect 
  on October 1, 2000.                                                     

          SEC. 243. CHILD AND ADULT CARE FOOD PROGRAM INTEGRITY.                  

     (a) Definition of Institution; Exclusion of Seriously Deficient      
  Institutions.--Section 17(a) of the Richard B. Russell National School  
  Lunch Act (42 U.S.C. 1766(a)) is amended--                              
     (1) by striking ``(a) The Secretary'' and inserting the following:    

    ``(a)  Grant Authority and Institution Eligibility.--                 

     ``(1)  Grant authority.--The Secretary'';                             

       (2) by striking the second and third sentences and inserting the    
   following:                                                              
       ``(2) Definition of institution.--In this section, the term         
   `institution' means--                                                   
       ``(A) any public or private nonprofit organization providing        
   nonresidential child care or day care outside school hours for school   
   children, including any child care center, settlement house,            
   recreational center, Head Start center, and institution providing child 
   care facilities for children with disabilities;                         
       ``(B) any other private organization providing nonresidential child 
   care or day care outside school hours for school children for which the 
   organization receives compensation from amounts granted to the States   
   under title XX of the Social Security Act (42 U.S.C. 1397 et seq.) (but 
   only if the organization receives compensation under that title for at  
   least 25 percent of its enrolled children or 25 percent of its licensed 
   capacity, whichever is less);                                           
       ``(C) any public or private nonprofit organization acting as a      
   sponsoring organization for 1 or more of the organizations described in 
   subparagraph (A) or (B) or for an adult day care center (as defined in  
   subsection (o)(2));                                                     
       ``(D) any other private organization acting as a sponsoring         
   organization for, and that is part of the same legal entity as, 1 or    
   more organizations that are--                                           
     ``(i) described in subparagraph (B); or                               

       ``(ii) proprietary title XIX or title XX centers (as defined in     
   subsection (o)(2));                                                     
       ``(E) any public or private nonprofit organization acting as a      
   sponsoring organization for 1 or more family or group day care homes;   
   and                                                                     
     ``(F) any emergency shelter (as defined in subsection (t)).'';        


       (3) by striking ``Except as provided in subsection (r),'' and       
   inserting the following:                                                
     ``(3)  Age limit.--Except as provided in subsection (r),'';           

       (4) by striking ``The Secretary may establish separate guidelines'' 
   and inserting the following:                                            
       ``(4) Additional guidelines.--The Secretary may establish separate  
   guidelines'';                                                           
       (5) by striking ``For purposes of determining'' and all that follows
   through ``an institution'' and inserting the following:                 
     ``(5)  Licensing.--In order to be eligible, an institution''; and     

     (6) by striking ``standards; and'' and inserting ``standards.'';      

     (7) by striking ``(2) no institution'' and inserting the following:   

     ``(6)  Eligibility criteria.--No institution''; and                   

     (8) in paragraph (6) (as so designated)--                             

       (A) in subparagraph (B), by inserting ``, or has not been determined
   to be ineligible to participate in any other publicly funded program by 
   reason of violation of the requirements of the program'' before ``, for 
   a period'';                                                             
     (B) in subparagraph (C)--                                             

     (i) by inserting ``(i)'' after ``(C)''; and                           

     (ii) by adding at the end the following:                              

       ``(ii) in the case of a sponsoring organization, the organization   
   shall employ an appropriate number of monitoring personnel based on the 
   number and characteristics of child care centers and family or group day
   care homes sponsored by the organization, as approved by the State (in  
   accordance with regulations promulgated by the Secretary), to ensure    
   effective oversight of the operations of the child care centers and     
   family or group day care homes; and'';                                  
       (C) in subparagraph (D), by striking the period and inserting a     
   semicolon; and                                                          
     (D) by adding at the end the following:                               

       ``(E) in the case of a sponsoring organization, the organization has
   in effect a policy that restricts other employment by employees that    
   interferes with the responsibilities and duties of the employees of the 
   organization with respect to the program; and                           
       ``(F) in the case of a sponsoring organization that applies for     
   initial participation in the program on or after the date of the        
   enactment of this subparagraph and that operates in a State that        
   requires such institutions to be bonded under State law, regulation, or 
   policy, the institution is bonded in accordance with such law,          
   regulation, or policy.''.                                               
    (b)  Institution Approval and Applications.--                         

       (1) In general.--Section 17(d) of the Richard B. Russell National   
   School Lunch Act (42 U.S.C. 1766(d)) is amended by striking the         
   subsection designation and all that follows through the end of paragraph
   (1) and inserting the following:                                        
    ``(d)  Institution Approval and Applications.--                       

     ``(1)  Institution approval.--                                        

       ``(A) Administrative capability.--Subject to subparagraph (B) and   
   except as provided in subparagraph (C), the State agency shall approve  
   an institution that meets the requirements of this section for          
   participation in the child and adult care food program if the State     
   agency determines that the institution--                                
     ``(i) is financially viable;                                          

       ``(ii) is administratively capable of operating the program         
   (including whether the sponsoring organization has business experience  
   and management plans appropriate to operate the program) described in   
   the application of the institution; and                                 
       ``(iii) has internal controls in effect to ensure program           
   accountability.                                                         
     ``(B)  Approval of private institutions.--                            

       ``(i) In general.--In addition to the requirements established by   
   subparagraph (A) and subject to clause (ii), the State agency shall     
   approve a private institution that meets the requirements of this       
   section for participation in the child and adult care food program only 
   if--                                                                    
         ``(I) the State agency conducts a satisfactory visit to the        
    institution before approving the participation of the institution in the
    program; and                                                            
      ``(II) the institution--                                              

      ``(aa) has tax exempt status under the Internal Revenue Code of 1986; 

         ``(bb) is operating a Federal program requiring nonprofit status to
    participate in the program; or                                          
      ``(cc) is described in subsection (a)(2)(B).                          

       ``(ii) Exception for family or group day care homes.--Clause (i)    
   shall not apply to a family or group day care home.                     
     ``(C)  Exception for certain sponsoring organizations.--              

       ``(i) In general.--The State agency may approve an eligible         
   institution acting as a sponsoring organization for 1 or more family or 
   group day care homes or centers that, at the time of application, is not
   participating in the child and adult care food program only if the State
   agency determines that--                                                
         ``(I) the institution meets the requirements established by        
    subparagraphs (A) and (B); and                                          
         ``(II) the participation of the institution will help to ensure the
    delivery of benefits to otherwise                                       

                    unserved family or group day care homes or centers or to      
          unserved children in an area.                                           
       ``(ii) Criteria for selection.--The State agency shall establish    
   criteria for approving an eligible institution acting as a sponsoring   
   organization for 1 or more family or group day care homes or centers    
   that, at the time of application, is not participating in the child and 
   adult care food program for the purpose of determining if the           
   participation of the institution will help ensure the delivery of       
   benefits to otherwise unserved family or group day care homes or centers
   or to unserved children in an area.                                     
       ``(D) Notification to applicants.--Not later than 30 days after the 
   date on which an applicant institution files a completed application    
   with the State agency, the State agency shall notify the applicant      
   institution whether the institution has been approved or disapproved to 
   participate in the child and adult care food program.''.                
       (2) Site visits.--Section 17(d)(2)(A) of the Richard B. Russell     
   National School Lunch Act (42 U.S.C. 1766(d)(2)(A)) is amended--        
     (A) in clause (i), by striking ``; and'' and inserting a semicolon;   

     (B) by redesignating clause (ii) as clause (iii); and                 

     (C) by inserting after clause (i) the following:                      

       ``(ii)(I) requires periodic unannounced site visits at not less than
   3-year intervals to sponsored child care centers and family or group day
   care homes to identify and prevent management deficiencies and fraud and
   abuse under the program;                                                
       ``(II) requires at least 1 scheduled site visit each year to        
   sponsored child care centers and family or group day care homes to      
   identify and prevent management deficiencies and fraud and abuse under  
   the program and to improve program operations; and                      
       ``(III) requires at least 1 scheduled site visit at not less than   
   3-year intervals to sponsoring organizations and nonsponsored child care
   centers to identify and prevent management deficiencies and fraud and   
   abuse under the program and to improve program operations; and''.       
       (3) Conforming amendment.--Section 17(d)(2)(B) of the Richard B.    
   Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(B)) is amended  
   by striking ``subsection (a)(1)'' and inserting ``subsection (a)(5)''.  
     (4)  Program information.--                                           

       (A) In general.--Section 17(d) of the Richard B. Russell National   
   School Lunch Act (42 U.S.C. 1766(d)) is amended by adding at the end the
   following:                                                              
     ``(3)  Program information.--                                         

       ``(A) In general.--On enrollment of a child in a sponsored child    
   care center or family or group day care home participating in the       
   program, the center or home (or its sponsoring organization) shall      
   provide to the child's parents or guardians--                           
     ``(i) information that describes the program and its benefits; and    

       ``(ii) the name and telephone number of the sponsoring organization 
   of the center or home and the State agency involved in the operation of 
   the program.                                                            
       ``(B) Form.--The information described in subparagraph (A) shall be 
   in a form and, to the maximum extent practicable, language easily       
   understandable by the child's parents or guardians.''.                  
       (B) Effective date.--In the case of a child that is enrolled in a   
   sponsored child care center or family or group day care home            
   participating in the child and adult care food program under section 17 
   of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766)    
   before the date of the enactment of this Act, the center or home shall  
   provide information to the child's parents or guardians pursuant to     
   section 17(d)(3) of that Act, as added by subparagraph (A), not later   
   than 90 days after the date of the enactment of this Act.               
       (5) Allowable administrative expenses for sponsoring                
   organizations.--Section 17(d) of the Richard B. Russell National School 
   Lunch Act (42 U.S.C. 1766(d)), as amended by paragraph (4)(A), is       
   amended by adding at the end the following:                             
       ``(4) Allowable administrative expenses for sponsoring              
   organizations.--In consultation with State agencies and sponsoring      
   organizations, the Secretary shall develop, and provide for the         
   dissemination to State agencies and sponsoring organizations of, a list 
   of allowable reimbursable administrative expenses for sponsoring        
   organizations under the program.''.                                     
     (c) Termination or Suspension of Participating                       
  Organizations.--Section 17(d) of the Richard B. Russell National School 
  Lunch Act (42 U.S.C. 1766(d)), as amended by subsection (b)(5), is      
  amended by adding at the end the following:                             
     ``(5)  Termination or suspension of participating organizations.--    

       ``(A) In general.--The Secretary shall establish procedures for the 
   termination of participation by institutions and family or group day    
   care homes under the program.                                           
       ``(B) Standards.--Procedures established pursuant to subparagraph   
   (A) shall include standards for terminating the participation of an     
   institution or family or group day care home that--                     
       ``(i) engages in unlawful practices, falsifies information provided 
   to the State agency, or conceals a criminal background; or              
       ``(ii) substantially fails to fulfill the terms of its agreement    
   with the State agency.                                                  
       ``(C) Corrective action.--Procedures established pursuant to        
   subparagraph (A)--                                                      
       ``(i) shall require an entity described in subparagraph (B) to      
   undertake corrective action; and                                        
       ``(ii) may require the immediate suspension of operation of the     
   program by an entity described in subparagraph (B), without the         
   opportunity for corrective action, if the State agency determines that  
   there is imminent threat to the health or safety of a participant at the
   entity or the entity engages in any activity that poses a threat to     
   public health or safety.                                                
       ``(D) Hearing.--An institution or family or group day care home     
   shall be provided a fair hearing in accordance with subsection (e)(1)   
   prior to any determination to terminate participation by the institution
   or family or group day care home under the program.                     

     ``(E)  List of disqualified institutions and individuals.--           

       ``(i) In general.--The Secretary shall maintain a list of           
   institutions, sponsored family or group day care homes, and individuals 
   that have been terminated or otherwise disqualified from participation  
   in the program.                                                         
       ``(ii) Availability.--The Secretary shall make the list available to
   State agencies for use in approving or renewing applications by         
   institutions, sponsored family or group day care homes, and individuals 
   for participation in the program.''.                                    
     (d) Recovery of Amounts From Institutions.--Section 17(f)(1) of the  
  Richard B. Russell National School Lunch Act (42 U.S.C. 1766(f)(1)) is  
  amended--                                                               
     (1) by striking ``(f)(1) Funds paid'' and inserting the following:    

    ``(f)  State Disbursements to Institutions.--                         

     ``(1)  In general.--                                                  

     ``(A)  Requirement.--Funds paid''; and                                

     (2) by adding at the end the following:                               

     ``(B)  Fraud or abuse.--                                              

       ``(i) In general.--The State may recover funds disbursed under      
   subparagraph (A) to an institution if the State determines that the     
   institution has engaged in fraud or abuse with respect to the program or
   has submitted an invalid claim for reimbursement.                       
     ``(ii)  Payment.--Amounts recovered under clause (i)--                

         ``(I) may be paid by the institution to the State over a period of 
    1 or more years; and                                                    
         ``(II) shall not be paid from funds used to provide meals and      
    supplements.                                                            
       ``(iii) Hearing.--An institution shall be provided a fair hearing in
   accordance with subsection (e)(1) prior to any determination to recover 
   funds under this subparagraph.''.                                       
     (e) Limitation on Administrative Expenses for Certain Sponsoring     
  Organizations.--Section 17(f)(2) of the Richard B. Russell National     
  School Lunch Act (42 U.S.C. 1766(f)(2)) is amended by adding at the end 
  the following:                                                          
       ``(C) Limitation on administrative expenses for certain sponsoring  
   organizations.--                                                        
       ``(i) In general.--Except as provided in clause (ii), a sponsoring  
   organization of a day care center may reserve not more than 15 percent  
   of the funds provided under paragraph (1) for the administrative        
   expenses of the organization.                                           
       ``(ii) Waiver.--A State may waive the requirement in clause (i) with
   respect to a sponsoring organization if the organization provides       
   justification to the State that the organization requires funds in      
   excess of 15 percent of the funds provided under paragraph (1) to pay   
   the administrative expenses of the organization.''.                     
     (f) Limitations on Ability of Family or Group Day Care Homes to      
  Transfer Sponsoring Organizations.--Section 17(f)(3) of the Richard B.  
  Russell National School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by  
  striking subparagraph (D) and inserting the following:                  
       ``(D) Limitations on ability of family or group day care homes to   
   transfer sponsoring organizations.--                                    
       ``(i) In general.--Subject to clause (ii), a State agency shall     
   limit the ability of a family or group day care home to transfer from a 
   sponsoring organization to another sponsoring organization more         
   frequently than once a year                                             
       ``(ii) Good cause.--The State agency may permit or require a family 
   or group day care home to transfer from a sponsoring organization to    
   another sponsoring organization more frequently than once a year for    
   good cause (as determined by the State agency), including circumstances 
   in which the sponsoring organization of the family or group day care    
   home ceases to participate in the child and adult care food program.''. 
     (g) Statewide Demonstration Projects Involving Private For-Profit    
  Organizations That Provide Nonresidential Day Care Services.--          
       (1) In general.--Section 17(p) of the Richard B. Russell National   
   School Lunch Act (42 U.S.C. 1766(p)) is amended--                       
       (A) in the first sentence of paragraph (1), by striking ``2         
   statewide demonstration projects'' and inserting ``statewide            
   demonstration projects in 3 States''; and                               
     (B) in paragraph (3)--                                                

     (i) by inserting ``in'' after ``subsection'';                         

     (ii) in subparagraph (A), by striking ``and'' at the end;             

       (iii) in subparagraph (B), by striking the period at the end and    
   inserting ``; and''; and                                                
     (iv) by adding at the end the following:                              

     ``(C) 1 other State--                                                 

     ``(i) with fewer than 60,000 children below 5 years of age;           

       ``(ii) that serves more than the national average proportion of     
   children potentially eligible for assistance provided under the Child   
   Care and Development Fund (as indicated in data published by the        
   Department of Health and Human Services in October 1999);               
       ``(iii) that exempts all families from cost sharing requirements    
   under programs funded by the Child Care and Development Fund; and       
       ``(iv) in which State spending represents more than 50 percent of   
   total expenditures made under the Child Care and Development Fund.''.   
       (2) Effective date.--The Secretary may carry out demonstration      
   projects in the State described in section 17(p)(3)(C) of the Richard B.
   Russell National School Lunch Act, as added by paragraph (1)(B)(iv),    
   beginning not earlier than October 1, 2001.                             

     (h) Technical and Training Assistance for Identification and         
  Prevention of Fraud and Abuse.--Section 17(q) of the Richard B. Russell 
  National School Lunch Act (42 U.S.C. 1766(q)) is amended--              
     (1) by redesignating paragraph (2) as paragraph (3); and              

     (2) by inserting after paragraph (1) the following:                   

       ``(2) Technical and training assistance for identification and      
   prevention of fraud and abuse.--As part of training and technical       
   assistance provided under paragraph (1), the Secretary shall provide    
   training on a continuous basis to State agencies, and shall ensure that 
   such training is provided to sponsoring organizations, for the          
   identification and prevention of fraud and abuse under the program and  
   to improve management of the program.''.                                
     (i) Program for At-Risk School Children.--Section 17(r) of the       
  Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)) is     
  amended--                                                               
       (1) in paragraph (2), by inserting ``meals or'' before              
   ``supplements'';                                                        
     (2) in paragraph (4)--                                                

       (A) in the heading, by striking `` Supplement'' and inserting ``    
   Meal and supplement'';                                                  
     (B) in subparagraph (A)--                                             

       (i) by striking ``only for'' and all that follows through ``(i) a   
   supplement'' and inserting ``only for 1 meal per child per day and 1    
   supplement per child per day'';                                         
     (ii) by striking ``; and'' and inserting a period; and                

     (iii) by striking clause (ii);                                        

       (C) in subparagraph (B), by striking `` Rate.--A supplement'' and   
   inserting the following: `` Rates.--                                    
       ``(i) Meals.--A meal shall be reimbursed under this subsection at   
   the rate established for free meals under subsection (c).               
     ``(ii)  Supplements.--A supplement''; and                             

       (D) in subparagraph (C), by inserting ``meal or'' before            
   ``supplement''; and                                                     
     (3) by adding at the end the following:                               

       ``(5) Limitation.--The Secretary shall limit reimbursement under    
   this subsection for meals served under a program to institutions located
   in 6 States, of which 4 States shall be Pennsylvania, Missouri,         
   Delaware, and Michigan and 2 States shall be approved by the Secretary  
   through a competitive application process.''.                           
     (j) Withholding of Funds for Failure to Provide Sufficient Training, 
  Technical Assistance, and Monitoring.--Section 7(a)(9)(A) of the Child  
  Nutrition Act of 1966 (42 U.S.C. 1776(a)(9)(A)) is amended by inserting 
  after ``the Richard B. Russell National School Lunch Act (42 U.S.C. 1751
  et seq.)'' the following: ``(including any requirement to provide       
  sufficient training, technical assistance, and monitoring of the child  
  and adult care food program under section 17 of that Act (42 U.S.C.     
  1766))''.                                                               
          SEC. 244. ADJUSTMENTS TO WIC PROGRAM.                                   

     (a) Definition.--Section 17(b) of the Child Nutrition Act of 1966 (42
  U.S.C. 1786(b)) is amended by adding at the end the following:          
       ``(21) Remote indian or native village.--The term `remote Indian or 
   Native village' means an Indian or Native village that--                
     ``(A) is located in a rural area;                                     

     ``(B) has a population of less than 5,000 inhabitants; and            

       ``(C) is not accessible year-around by means of a public road (as   
   defined in section 101 of title 23, United States Code).''.             
     (b) Cost-of-Living Allowances for Members of Uniformed               
  Services.--Section 17(d)(2)(B) of the Child Nutrition Act of 1966 (42   
  U.S.C. 1786(d)(2)(B)) is amended--                                      
     (1) by striking ``income any'' and inserting ``income--               

     ``(i) any'';                                                          

     (2) by striking ``quarters'' and inserting ``housing'';               

     (3) by striking the period at the end and inserting ``; and''; and    

     (4) by adding at the end the following:                               

       ``(ii) any cost-of-living allowance provided under section 405 of   
   title 37, United States Code, to a member of a uniformed service who is 
   on duty outside the continental United States.''.                       
     (c) Proof of Residency.--Section 17(d)(3) of the Child Nutrition Act 
  of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the end the      
  following:                                                              
       ``(F) Proof of residency.--An individual residing in a remote Indian
   or Native village or an individual served by an Indian tribal           
   organization and residing on a reservation or pueblo may, under         
   standards established by the Secretary, establish proof of residency    
   under this section by providing to the State agency the mailing address 
   of the individual and the name of the remote Indian or Native           
   village.''.                                                             
     (d) Adjustment of Grant.--Section 17(h)(1)(B) of the Child Nutrition 
  Act of 1966 (42 U.S.C. 1786(h)(1)(B)) is amended--                      
       (1) in clause (i), by striking ``the fiscal year 1987'' and         
   inserting ``the preceding fiscal year''; and                            
     (2) in clause (ii)--                                                  

       (A) by striking ``the fiscal year 1987'' and inserting ``the        
   preceding fiscal year''; and                                            
     (B) by striking subclause (I) and inserting the following:            

       ``(I) the value of the index for State and local government         
   purchases, as published by the Bureau of Economic Analysis of the       
   Department of Commerce, for the 12-month period ending June 30 of the   
   second preceding fiscal year; and''.                                    
     (e) Allocation of Funds.--Section 17(h)(5) of the Child Nutrition Act
  of 1966 (42 U.S.C. 1786(h)(5)) is amended by adding at the end the      
  following:                                                              
       ``(D) Remote indian or native villages.--For noncontiguous States   
   containing a significant number of                                      

                    remote Indian or Native villages, a State agency may convert  
          amounts allocated for food benefits for a fiscal year to the costs of   
          nutrition services and administration to the extent that the conversion 
          is necessary to cover expenditures incurred in providing services       
          (including the full cost of air transportation and other transportation)
          to remote Indian or Native villages and to provide breastfeeding support
          in remote Indian or Native villages.''.                                 
    (f)  Effective Dates.--                                               

       (1) In general.--Except as provided in paragraph (2), the amendments
   made by this section take effect on the date of enactment of this Act.  
       (2) Allocation of funds.--The amendments made by subsections (d) and
   (e) take effect on October 1, 2000.                                     
           Subtitle F--Other Programs                                              

                    SEC. 251. AUTHORITY TO PROVIDE LOAN IN CONNECTION WITH BOLL   
          WEEVIL ERADICATION.                                                     
     (a) Loan Authority.--Notwithstanding any other provision of law, the 
  Secretary, acting through the Farm Service Agency, shall use $10,000,000
  of funds of the Commodity Credit Corporation to make a loan to the Texas
  Boll Weevil Eradication Foundation, Inc., to enable the Foundation to   
  retire certain debt associated with boll weevil eradication zones which 
  have ended their participation, in whole or in part, in the federally   
  funded boll weevil eradication program.                                 
     (b) Repayment Terms and Conditions.--The loan provided under         
  subsection (a) shall be subject to the following terms and conditions:  
       (1) Repayment shall be scheduled to begin on January 1 of the year  
   following the first year during which the boll weevil eradication zone, 
   or any part thereof, responsible for the debt retired using the loan    
   resumes participation in any federally funded boll weevil eradication   
   program.                                                                
     (2) No interest shall be charged.                                     

     (c) Limitation.--The cost of the loan made under this section shall  
  not exceed the loan subsidy sufficient to make the loan.                

          SEC. 252. ANIMAL DISEASE CONTROL.                                       

     (a) Pseudorabies.--Of the amount made available under section        
  261(a)(2), the Secretary shall use $7,000,000 to cover pseudorabies     
  vaccination costs incurred by pork producers.                           
     (b) Bovine Tuberculosis.--Of the amount made available under section 
  261(a)(2), the Secretary shall use $6,000,000 to respond to bovine      
  tuberculosis in the State of Michigan. The funds shall be available for 
  the following purposes:                                                 
     (1) The surveillance and testing of cattle and wildlife.              

       (2) Research regarding bovine tuberculosis, to be conducted by the  
   Agricultural Research Service and Michigan State University.            
       (3) The provision of increased indemnity payments to encourage the  
   depopulation of infected herds.                                         
       (4) The performance of diagnostic testing and treatment of humans   
   affected by bovine tuberculosis.                                        
     (5) Slaughter surveillance.                                           

       (6) The control and prevention of the exposure of livestock to      
   infected wildlife, including the installation of fencing to minimize    
   contact between livestock and wildlife.                                 
       (7) The distribution of information regarding the risk and control  
   of bovine tuberculosis, including technological improvements to enhance 
   communication.                                                          
          SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS.                           

     (a) In General.--Of the amount made available under section          
  261(a)(2), the Secretary shall use $35,000,000, plus $200,000 for       
  payment of administrative costs, to make no-interest loans to producers 
  of the 1999 crop of grass, forage, vegetable, and sorghum seed that have
  not received payments from AgriBiotech for the seed as a result of      
  bankruptcy proceedings involving AgriBiotech (referred to in this       
  section as the ``bankruptcy proceedings'').                             
    (b)  Loans.--                                                         

       (1) In general.--The amount of the loan made to a seed producer     
   under this section shall be not more than 65 percent of the amount owed 
   by AgriBiotech to the seed producer for the 1999 seed crop, as          
   determined by the Secretary.                                            
       (2) Eligibility.--To be eligible for a loan under this section, the 
   claim of a seed producer in the bankruptcy proceedings must have arisen 
   from a contract to grow seeds in the United States.                     
       (3) Control.--In determining the amount owed by AgriBiotech to a    
   seed producer under paragraph (1), the Secretary shall consider whether 
   the seed producer has relinquished control of the seed to AgriBiotech or
   has the seed in inventory waiting to be sold.                           
       (4) Security.--A loan to a seed producer under this section shall be
   secured in part by the claim of the seed producer in the bankruptcy     
   proceedings.                                                            
       (5) Repayment.--Each seed producer shall repay to the Secretary, for
   deposit in the Treasury, the amount of the loan made to the seed        
   producer on the earlier of--                                            
       (A) the date of settlement of, completion of, or final distribution 
   of assets in the bankruptcy proceedings involving AgriBiotech; or       
       (B) the date that is 18 months after the date on which the loan was 
   made to the seed producer.                                              
    (c)  Additional Terms.--                                              

       (1) Shortfall in amount received from bankruptcy proceedings.--If   
   the amount that the seed producer receives as a result of the           
   proceedings described in subsection (b)(5)(A) is less than the amount of
   the loan made to the seed producer under subsection (b)(1), the seed    
   producer shall be eligible to have the balance of the loan converted,   
   but not refinanced, to a loan that has the same terms and conditions as 
   an operating loan under subtitle B of the Consolidated Farm and Rural   
   Development Act (7 U.S.C. 1941 et seq.).                                
       (2) Lengthy bankruptcy proceedings.--If a seed producer is required 
   to repay a loan under subsection (b)(5)(B), the                         

                    seed producer shall be eligible to have the balance of the    
          loan converted, but not refinanced, to a loan that has the same terms   
          and conditions as an operating loan under subtitle B of the Consolidated
          Farm and Rural Development Act (7 U.S.C. 1941 et seq.).                 
     (d) Limitation.--The cost of all loans made under this section shall 
  not exceed $15,000,000.                                                 

          SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CERTAIN OFFICES. 

     (a) Suspension.--During the period beginning on the date of enactment
  of this Act and ending on June 1, 2001, the Secretary may not combine or
  take any action to combine, at the State level, offices of the agencies 
  specified in subsection (b) unless the offices are located in the same  
  county as of the date of enactment of this Act.                         
     (b) Covered Offices.--Subsection (a) applies to an office of any of  
  the following agencies:                                                 
     (1) The Farm Service Agency.                                          

     (2) The Natural Resources Conservation Service.                       

     (3) The Rural Utilities Service.                                      

     (4) The Rural Housing Service.                                        

     (5) The Rural Business-Cooperative Service.                           

     (c) Report.--Not later than April 1, 2001, the Secretary shall submit
  to the Committee on Agriculture of the House of Representatives and the 
  Committee on Agriculture, Nutrition, and Forestry of the Senate a report
  describing any proposed combination of offices specified in subsection  
  (b) that includes a certification that the proposed combination would   
  result in the lowest cost to the Federal Government over the long term. 
          SEC. 255. FARM OPERATING LOAN ELIGIBILITY.                              

     During the period beginning on the date of enactment of this Act and 
  ending on December 31, 2002--                                           
       (1) sections 311(c) and 319 of the Consolidated Farm and Rural      
   Development Act (7 U.S.C. 1941(c), 1949) shall have no force or effect; 
   and                                                                     
       (2) in making direct loans under subtitle B of that Act (7 U.S.C.   
   1941 et seq.), the Secretary shall give priority to a qualified         
   beginning farmer or rancher who has not operated a farm or ranch, or who
   has operated a farm or ranch for not more than 5 years.                 
          SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.        

     Section 306D of the Consolidated Farm and Rural Development Act (7   
  U.S.C. 1926d) is amended by striking subsection (d) and inserting the   
  following:                                                              
    ``(d)  Authorization of Appropriations.--                             

       ``(1) In general.--There are authorized to be appropriated to carry 
   out this section $30,000,000 for each of fiscal years 2001 and 2002.    
       ``(2) Training and technical assistance.--Not more than 2 percent of
   the amount made available under paragraph (1) for a fiscal year may be  
   used by the State of Alaska for training and technical assistance       
   programs relating to the operation and management of water and waste    
   disposal services in rural and Native villages.                         
       ``(3) Availability.--Funds appropriated pursuant to the             
   authorization of appropriations in paragraph (1) shall be available     
   until expended.''.                                                      
          SEC. 257. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.                  

    (a)  Definition of Covered Land.--In this section:                    

     (1)  In general.--The term ``covered land'' means land that--         

       (A) was unusable for agricultural production during the 2000 crop   
   year as the result of flooding;                                         
       (B) was used for agricultural production during at least 1 of the   
   1992 through 1999 crop years;                                           
     (C) is a contiguous parcel of land of at least 1 acre; and            

       (D) is located in a county in which producers were eligible for     
   assistance under the 1998 Flood Compensation Program established under  
   part 1439 of title 7, Code of Federal Regulations.                      
       (2) Exclusions.--The term ``covered land'' excludes any land for    
   which a producer is insured, enrolled, or assisted during the 2000 crop 
   year under--                                                            
       (A) a policy or plan of insurance authorized under the Federal Crop 
   Insurance Act (7 U.S.C. 1501 et seq.);                                  
       (B) the noninsured crop assistance program operated under section   
   196 of the Agricultural Market Transition Act (7 U.S.C. 7333);          
     (C) any crop disaster program established for the 2000 crop year;     

       (D) the conservation reserve program established under subchapter B 
   of chapter 1 of subtitle D of the Food Security Act of 1985 (16 U.S.C.  
   3831 et seq.);                                                          
       (E) the wetlands reserve program established under subchapter C of  
   chapter 1 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3837
   et seq.);                                                               
       (F) any emergency watershed protection program or Federal easement  
   program that prohibits crop production or grazing; or                   
       (G) any other Federal or State water storage program, as determined 
   by the Secretary.                                                       
     (b) Compensation.--The Secretary shall use not more than $24,000,000 
  of funds of the Commodity Credit Corporation to compensate producers    
  with covered land described with respect to losses from long-term       
  flooding.                                                               
     (c) Payment Rate.--The payment rate for compensation provided to a   
  producer under this section shall equal the average county cash rental  
  rate per acre established by the National Agricultural Statistics       
  Service for the 2000 crop year.                                         
     (d) Payment Limitation.--The total amount of payments made to a      
  person (as defined in section 1001(5) of the Food Security Act (7 U.S.C.
  1308(5))) under this section may not exceed $40,000.                    
     (e) Conforming Amendment.--H.R. 3425 of the 106th Congress (as       
  enacted into law by section 1000(a)(5) of Public Law 106 113 (113 Stat. 
  1535) and included as Appendix E of that Public                         

                    Law (113 Stat. 1501A 289)) is amended in section 207 (113     
          Stat. 1501A 294) by inserting ``or Lake'' after ``Harney''.             
          SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA.                   

     (a) Requirement.--Subject to subsection (b), as soon as practicable  
  after the date of enactment of this Act, with respect to land and       
  property described in the Flood Mitigation Study and Project            
  Implementation Plan for the Missouri River near Pierre, South Dakota,   
  prepared by the Omaha District Corps of Engineers, dated August 12,     
  1999, the Secretary of the Army shall--                                 
     (1) acquire the land and property from willing sellers; and           

     (2)(A) floodproof the land;                                           

     (B) relocate individuals located on the land;                         

     (C) improve infrastructure on the land; or                            

     (D) take other measures determined by the Secretary.                  

    (b)  Releases.--                                                      

       (1) In general.--The Secretary shall not proceed with full          
   wintertime Oahe Powerplant releases until the Secretary amends the      
   economic analysis in effect on the date of enactment of this Act to     
   include an assumption that the Federal Government is responsible for    
   mitigating any existing ground water flooding to the land and property  
   described in subsection (a).                                            
       (2) Reduction.--To the extent the Secretary identifies benefits of  
   mitigating any existing ground water flooding, full wintertime Oahe     
   Powerplant releases shall be reduced consistent with the economic       
   analysis described in paragraph (1).                                    
       (3) Minimum level.--This subsection shall not permit Oahe Powerplant
   releases to be reduced below existing operational levels.               
          SEC. 259. RESTORATION OF ELIGIBILITY FOR CROP LOSS ASSISTANCE.          

     (a) Effect of Change in Legal Structure.--In the case of an          
  individual or entity that was not eligible for a payment pursuant to    
  subsection (c) of section 1102 of the Agriculture, Rural Development,   
  Food and Drug Administration, and Related Agencies Appropriations Act,  
  1999 (as contained in section 101(a) of division A of Public Law 105    
  277; 7 U.S.C. 1421 note), solely because the individual or entity       
  changed the legal structure of the individual's or entity's farming     
  operation, the individual or entity shall be eligible for the payment   
  the individual or entity would have received pursuant to that subsection
  had the individual or entity not changed the legal structure, less the  
  amount of any payment received by the individual or entity pursuant to  
  subsection (b) of that section.                                         
    (b)  Multiple Farming Operations.--                                   

       (1) Eligible individuals.--In the case of an individual not         
   described in subsection (a) that farmed acreage as a producer as a part 
   of more than one farming operation, none of which received a payment    
   pursuant to subsection (c) of section 1102 of the Agriculture, Rural    
   Development, Food and Drug Administration, and Related Agencies         
   Appropriations Act, 1999, the individual shall be eligible for a payment
   pursuant to that subsection for losses that the Secretary determines    
   would have been eligible for compensation with respect to that acreage  
   based on the individual's interest in the production from that acreage. 
       (2) Reduction.--A payment made pursuant to paragraph (1) to an      
   individual shall be reduced by the amount of a payment made pursuant to 
   subsection (b) of that section 1102 attributed directly or indirectly to
   the individual with respect to the acreage described in paragraph (1).  

           Subtitle G--Administration                                              

          SEC. 261. FUNDING.                                                      

     (a) Payment.--Out of any moneys in the Treasury not otherwise        
  appropriated, the Secretary of the Treasury shall provide to the        
  Secretary the following:                                                
     (1) $34,000,000 for fiscal year 2000 to carry out section 241(a).     

     (2) $465,500,000 for fiscal year 2001 to carry out the following:     

     (A) Section 203 (other than subsection (f)).                          

     (B) Subtitle C.                                                       

     (C) Section 231.                                                      

     (D) Section 241 (other than subsection (a)).                          

     (E) Sections 252 and 253.                                             

     (b) Acceptance.--The Secretary shall be entitled to receive the funds
  and shall accept the funds, without further appropriation.              
          SEC. 262. OBLIGATION PERIOD.                                            

     Except as otherwise provided in this title, the Secretary and the    
  Commodity Credit Corporation shall obligate and expend--                
       (1) funds made available under section 261(a)(1) only during fiscal 
   year 2000; and                                                          
       (2) funds made available under section 261(a)(2), and funds of the  
   Commodity Credit Corporation made available under this title, only      
   during fiscal year 2001.                                                
          SEC. 263. REGULATIONS.                                                  

     (a) Promulgation.--As soon as practicable after the date of enactment
  of this Act, the Secretary and the Commodity Credit Corporation, as     
  appropriate, shall promulgate such regulations as are necessary to      
  implement this title and the amendments made by this title. The         
  promulgation of the regulations and administration of this title shall  
  be made without regard to--                                             
       (1) the notice and comment provisions of section 553 of title 5,    
   United States Code;                                                     
       (2) the Statement of Policy of the Secretary of Agriculture         
   effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of    
   proposed rulemaking and public participation in rulemaking; and         
       (3) chapter 35 of title 44, United States Code (commonly known as   
   the ``Paperwork Reduction Act'').                                       
     (b) Congressional Review of Agency Rulemaking.--In carrying out this 
  section, the Secretary shall use the authority provided under section   
  808 of title 5, United States Code.                                     
          SEC. 264. PAYGO ADJUSTMENT.                                             

     The Director of the Office of Management and Budget shall not make   
  any estimates of changes in direct spending outlays and                 

                    receipts under section 252(d) of the Balanced Budget and      
          Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)) resulting from  
          enactment of this title.                                                
          SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT.                   

     Out of any moneys in the Treasury not otherwise appropriated, the    
  Secretary of the Treasury shall use such sums as may be necessary to    
  reimburse the Commodity Credit Corporation for net realized losses      
  sustained, but not previously reimbursed, under this title.             

           TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000                 

          SEC. 301. SHORT TITLE.                                                  

     This title may be cited as the ``Biomass Research and Development Act
  of 2000''.                                                              
          SEC. 302. FINDINGS.                                                     

    Congress finds that--                                                 

       (1) conversion of biomass into biobased industrial products offers  
   outstanding potential for benefit to the national interest through--    
     (A) improved strategic security and balance of payments;              

     (B) healthier rural economies;                                        

     (C) improved environmental quality;                                   

     (D) near-zero net greenhouse gas emissions;                           

     (E) technology export; and                                            

     (F) sustainable resource supply;                                      

       (2) the key technical challenges to be overcome in order for        
   biobased industrial products to be cost-competitive are finding new     
   technology and reducing the cost of technology for converting biomass   
   into desired biobased industrial products;                              
       (3) biobased fuels, such as ethanol, have the clear potential to be 
   sustainable, low cost, and high performance fuels that are compatible   
   with both current and future transportation systems and provide         
   near-zero net greenhouse gas emissions;                                 
       (4) biobased chemicals have the clear potential for environmentally 
   benign product life cycles;                                             
     (5) biobased power can--                                              

     (A) provide environmental benefits;                                   

     (B) promote rural economic development; and                           

     (C) diversify energy resource options;                                

       (6) many biomass feedstocks suitable for industrial processing show 
   the clear potential for sustainable production, in some cases resulting 
   in improved soil fertility and carbon sequestration;                    
       (7)(A) grain processing mills are biorefineries that produce a      
   diversity of useful food, chemical, feed, and fuel products; and        
       (B) technologies that result in further diversification of the range
   of value-added biobased industrial products can meet a key need for the 
   grain processing industry;                                              
       (8)(A) cellulosic feedstocks are attractive because of their low    
   cost and widespread availability; and                                   
       (B) research resulting in cost-effective technology to overcome the 
   recalcitrance of cellulosic biomass would allow biorefineries to produce
   fuels and bulk chemicals on a very large scale, with a commensurately   
   large realization of the benefit described in paragraph (1);            
       (9) research into the fundamentals to understand important          
   mechanisms of biomass conversion can be expected to accelerate the      
   application and advancement of biomass processing technology by--       
       (A) increasing the confidence and speed with which new technologies 
   can be scaled up; and                                                   
     (B) giving rise to processing innovations based on new knowledge;     

       (10) the added utility of biobased industrial products developed    
   through improvements in processing technology would encourage the design
   of feedstocks that would meet future needs more effectively;            
       (11) the creation of value-added biobased industrial products would 
   create new jobs in construction, manufacturing, and distribution, as    
   well as new higher-valued exports of products and technology;           
       (12)(A) because of the relatively short-term time horizon           
   characteristic of private sector investments, and because many benefits 
   of biomass processing are in the national interest, it is appropriate   
   for the Federal Government to provide precommercial investment in       
   fundamental research and research-driven innovation in the biomass      
   processing area; and                                                    
       (B) such an investment would provide a valuable complement to       
   ongoing and past governmental support in the biomass processing area;   
   and                                                                     
       (13) several prominent studies, including studies by the President's
   Committee of Advisors on Science and Technology and the National        
   Research Council--                                                      
       (A) support the potential for large research-driven advances in     
   technologies for production of biobased industrial products as well as  
   associated benefits; and                                                
       (B) document the need for a focused, integrated, and                
   innovation-driven research effort to provide the appropriate progress in
   a timely manner.                                                        
          SEC. 303. DEFINITIONS.                                                  

    In this title:                                                        

       (1) Advisory committee.--The term ``Advisory Committee'' means the  
   Biomass Research and Development Technical Advisory Committee           
   established by section 306.                                             
       (2) Biobased industrial product.--The term ``biobased industrial    
   product'' means fuels, chemicals, building materials, or electric power 
   or heat produced from biomass.                                          
       (3) Biomass.--The term ``biomass'' means any organic matter that is 
   available on a renewable or recurring basis, including agricultural     
   crops and trees, wood and wood wastes and residues, plants (including   
   aquatic plants), grasses, residues, fibers,                             

          and animal wastes, municipal wastes, and other waste materials.         

       (4) Board.--The term ``Board'' means the Biomass Research and       
   Development Board established by section 305.                           
       (5) Initiative.--The term ``Initiative'' means the Biomass Research 
   and Development Initiative established under section 307.               
       (6) Institution of higher education.--The term ``institution of     
   higher education'' has the meaning given the term in section 102(a) of  
   the Higher Education Act of 1965 (20 U.S.C. 1002(a)).                   
       (7) National laboratory.--The term ``national laboratory'' has the  
   meaning given the term ``laboratory'' in section 12(d) of the           
   Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(d)).
       (8) Point of contact.--The term ``point of contact'' means a point  
   of contact designated under section 304(d).                             
       (9) Processing.--The term ``processing'' means the derivation of    
   biobased industrial products from biomass, including--                  
     (A) feedstock production;                                             

     (B) harvest and handling;                                             

     (C) pretreatment or thermochemical processing;                        

     (D) fermentation;                                                     

     (E) catalytic processing;                                             

     (F) product recovery; and                                             

     (G) coproduct production.                                             

       (10) Research and development.--The term ``research and             
   development'' means research, development, and demonstration.           
                    SEC. 304. COOPERATION AND COORDINATION IN BIOMASS RESEARCH AND
          DEVELOPMENT.                                                            
     (a) In General.--The Secretary of Agriculture and the Secretary of   
  Energy shall cooperate with respect to, and coordinate, policies and    
  procedures that promote research and development leading to the         
  production of biobased industrial products.                             
     (b) Purposes.--The purposes of the cooperation and coordination shall
  be--                                                                    
       (1) to understand the key mechanisms underlying the recalcitrance of
   biomass for conversion into biobased industrial products;               
       (2) to develop new and cost-effective technologies that would result
   in large-scale commercial production of low cost and sustainable        
   biobased industrial products;                                           
       (3) to ensure that biobased industrial products are developed in a  
   manner that enhances their economic, energy security, and environmental 
   benefits; and                                                           
       (4) to promote the development and use of agricultural and energy   
   crops for conversion into biobased industrial products.                 
     (c) Areas.--In carrying out this title, the Secretary of Agriculture 
  and the Secretary of Energy, in consultation with heads of appropriate  
  departments and agencies, shall promote research and development--      
       (1) to advance the availability and widespread use of energy        
   efficient, economically competitive, and environmentally sound biobased 
   industrial products in a manner that is consistent with the goals of the
   United States relating to sustainable and secure supplies of food,      
   chemicals, and fuel;                                                    
       (2) to ensure full consideration of Federal land and land management
   programs as potential feedstock resources for biobased industrial       
   products; and                                                           
       (3) to assess the environmental, economic, and social impact of     
   production of biobased industrial products from biomass on a large      
   scale.                                                                  
    (d)  Points of Contact.--                                             

       (1) In general.--To coordinate research and development programs and
   activities relating to biobased industrial products that are carried out
   by their respective Departments--                                       
       (A) the Secretary of Agriculture shall designate, as the point of   
   contact for the Department of Agriculture, an officer of the Department 
   of Agriculture appointed by the President to a position in the          
   Department before the date of the designation, by and with the advice   
   and consent of the Senate; and                                          
       (B) the Secretary of Energy shall designate, as the point of contact
   for the Department of Energy, an officer of the Department of Energy    
   appointed by the President to a position in the Department before the   
   date of the designation, by and with the advice and consent of the      
   Senate.                                                                 
     (2)  Duties.--The points of contact shall jointly--                   

       (A) assist in arranging interlaboratory and site-specific           
   supplemental agreements for research and development projects relating  
   to biobased industrial products;                                        
     (B) serve as cochairpersons of the Board;                             

     (C) administer the Initiative; and                                    

       (D) respond in writing to each recommendation of the Advisory       
   Committee made under section 306(c).                                    
          SEC. 305. BIOMASS RESEARCH AND DEVELOPMENT BOARD.                       

     (a) Establishment.--There is established the Biomass Research and    
  Development Board, which shall supersede the Interagency Council on     
  Biobased Products and Bioenergy established by Executive Order 13134, to
  coordinate programs within and among departments and agencies of the    
  Federal Government for the purpose of promoting the use of biobased     
  industrial products by--                                                
       (1) maximizing the benefits deriving from Federal grants and        
   assistance; and                                                         
     (2) bringing coherence to Federal strategic planning.                 

    (b)  Membership.--The Board shall consist of--                        

       (1) the point of contact of the Department of Energy designated     
   under section 304(d)(1)(B), who shall serve as cochairperson of the     
   Board;                                                                  
       (2) the point of contact of the Department of Agriculture designated
   under section 304(d)(1)(A), who shall serve as cochairperson of the     
   Board;                                                                  
       (3) a senior officer of each of the Department of the Interior, the 
   Environmental Protection Agency, the National Science Foundation, and   
   the Office of Science and Technology Policy, each of whom shall--       

     (A) be appointed by the head of the respective agency; and            

       (B) have a rank that is equivalent to the rank of the points of     
   contact; and                                                            
       (4) at the option of the Secretary of Agriculture and the Secretary 
   of Energy, other members appointed by the Secretaries (after            
   consultation with the members described in paragraphs (1) through (3)). 
    (c)  Duties.--The Board shall--                                       

       (1) coordinate research and development activities relating to      
   biobased industrial products--                                          
       (A) between the Department of Agriculture and the Department of     
   Energy; and                                                             
     (B) with other departments and agencies of the Federal Government; and

       (2) provide recommendations to the points of contact concerning     
   administration of this title.                                           
     (d) Funding.--Each agency represented on the Board is encouraged to  
  provide funds for any purpose under this title.                         
     (e) Meetings.--The Board shall meet at least quarterly to enable the 
  Board to carry out the duties of the Board under subsection (c).        
          SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY COMMITTEE.

     (a) Establishment.--There is established the Biomass Research and    
  Development Technical Advisory Committee, which shall supersede the     
  Advisory Committee on Biobased Products and Bioenergy established by    
  Executive Order 13134--                                                 
       (1) to advise the Secretary of Energy, the Secretary of Agriculture,
   and the points of contact concerning--                                  
       (A) the technical focus and direction of requests for proposals     
   issued under the Initiative; and                                        
     (B) procedures for reviewing and evaluating the proposals;            

       (2) to facilitate consultations and partnerships among Federal and  
   State agencies, agricultural producers, industry, consumers, the        
   research community, and other interested groups to carry out program    
   activities relating to the Initiative; and                              
       (3) to evaluate and perform strategic planning on program activities
   relating to the Initiative.                                             
    (b)  Membership.--                                                    

     (1)  In general.--The Advisory Committee shall consist of--           

       (A) an individual affiliated with the biobased industrial products  
   industry;                                                               
       (B) an individual affiliated with an institution of higher education
   who has expertise in biobased industrial products;                      
       (C) 2 prominent engineers or scientists from government or academia 
   who have expertise in biobased industrial products;                     
     (D) an individual affiliated with a commodity trade association;      

       (E) an individual affiliated with an environmental or conservation  
   organization;                                                           
       (F) an individual associated with State government who has expertise
   in biobased industrial products;                                        
     (G) an individual with expertise in energy analysis;                  

       (H) an individual with expertise in the economics of biobased       
   industrial products;                                                    
     (I) an individual with expertise in agricultural economics; and       

     (J) at the option of the points of contact, other members.            

       (2) Appointment.--The members of the Advisory Committee shall be    
   appointed by the points of contact.                                     
    (c)  Duties.--The Advisory Committee shall--                          

     (1) advise the points of contact with respect to the Initiative; and  

       (2) evaluate whether, and make recommendations in writing to the    
   Board to ensure that--                                                  
       (A) funds authorized for the Initiative are distributed and used in 
   a manner that is consistent with the goals of the Initiative;           
       (B) the points of contact are funding proposals under this title    
   that are selected on the basis of merit, as determined by an independent
   panel of scientific and technical peers; and                            
       (C) activities under this title are carried out in accordance with  
   this title.                                                             
     (d) Coordination.--To avoid duplication of effort, the Advisory      
  Committee shall coordinate its activities with those of other Federal   
  advisory committees working in related areas.                           
     (e) Meetings.--The Advisory Committee shall meet at least quarterly  
  to enable the Advisory Committee to carry out the duties of the Advisory
  Committee under subsection (c).                                         
     (f) Terms.--Members of the Advisory Committee shall be appointed for 
  a term of 3 years, except that--                                        
       (1) \1/3\ of the members initially appointed shall be appointed for 
   a term of 1 year; and                                                   
       (2) \1/3\ of the members initially appointed shall be appointed for 
   a term of 2 years.                                                      
          SEC. 307. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.                  

     (a) In General.--The Secretary of Agriculture and the Secretary of   
  Energy, acting through their respective points of contact and in        
  consultation with the Board, shall establish and carry out a Biomass    
  Research and Development Initiative under which competitively awarded   
  grants, contracts, and financial assistance are provided to, or entered 
  into with, eligible entities to carry out research on biobased          
  industrial products.                                                    
     (b) Purposes.--The purposes of grants, contracts, and assistance     
  under this section shall be--                                           
       (1) to stimulate collaborative activities by a diverse range of     
   experts in all aspects of biomass processing for the purpose of         
   conducting fundamental and innovation-targeted research and technology  
   development;                                                            

       (2) to enhance creative and imaginative approaches toward biomass   
   processing that will serve to develop the next generation of advanced   
   technologies making possible low cost and sustainable biobased          
   industrial products;                                                    
       (3) to strengthen the intellectual resources of the United States   
   through the training and education of future scientists, engineers,     
   managers, and business leaders in the field of biomass processing; and  
       (4) to promote integrated research partnerships among colleges,     
   universities, national laboratories, Federal and State research         
   agencies, and the private sector as the best means of overcoming        
   technical challenges that span multiple research and engineering        
   disciplines and of gaining better leverage from limited Federal research
   funds.                                                                  
    (c)  Eligible Entities.--                                             

       (1) In general.--To be eligible for a grant, contract, or assistance
   under this section, an applicant shall be--                             
     (A) an institution of higher education;                               

     (B) a national laboratory;                                            

     (C) a Federal research agency;                                        

     (D) a State research agency;                                          

     (E) a private sector entity;                                          

     (F) a nonprofit organization; or                                      

       (G) a consortium of 2 or more entities described in subparagraphs   
   (A) through (F).                                                        
       (2) Administration.--After consultation with the Board, the points  
   of contact shall--                                                      
       (A) publish annually 1 or more joint requests for proposals for     
   grants, contracts, and assistance under this section;                   
       (B) establish a priority in grants, contracts, and assistance under 
   this section for research that--                                        
       (i) demonstrates potential for significant advances in biomass      
   processing;                                                             
       (ii) demonstrates potential to substantially further scale-sensitive
   national objectives such as--                                           
      (I) sustainable resource supply;                                      

      (II) reduced greenhouse gas emissions;                                

      (III) healthier rural economies; and                                  

      (IV) improved strategic security and trade balances; and              

       (iii) would improve knowledge of important biomass processing       
   systems that demonstrate potential for commercial applications;         
       (C) require that grants, contracts, and assistance under this       
   section be awarded competitively, on the basis of merit, after the      
   establishment of procedures that provide for scientific peer review by  
   an independent panel of scientific and technical peers; and             
     (D) give preference to applications that--                            

     (i) involve a consortia of experts from multiple institutions; and    

       (ii) encourage the integration of disciplines and application of the
   best technical resources.                                               
     (d) Uses of Grants, Contracts, and Assistance.--A grant, contract, or
  assistance under this section may be used to conduct--                  
       (1) research on process technology for overcoming the recalcitrance 
   of biomass, including research on key mechanisms, advanced technologies,
   and demonstration test beds for--                                       
       (A) feedstock pretreatment and hydrolysis of cellulose and          
   hemicellulose, including new technologies for--                         
     (i) enhanced sugar yields;                                            

     (ii) lower overall chemical use;                                      

     (iii) less costly materials; and                                      

     (iv) cost reduction;                                                  

       (B) development of novel organisms and other approaches to          
   substantially lower the cost of cellulase enzymes and enzymatic         
   hydrolysis, including dedicated cellulase production and consolidated   
   bioprocessing strategies; and                                           
       (C) approaches other than enzymatic hydrolysis for overcoming the   
   recalcitrance of cellulosic biomass;                                    
       (2) research on technologies for diversifying the range of products 
   that can be efficiently and cost-competitively produced from biomass,   
   including research on--                                                 
       (A) metabolic engineering of biological systems (including the safe 
   use of genetically modified crops) to produce novel products, especially
   commodity products, or to increase product selectivity and tolerance,   
   with a research priority for the development of biobased industrial     
   products that can compete in performance and cost with fossil-based     
   products;                                                               
       (B) catalytic processing to convert intermediates of biomass        
   processing into products of interest;                                   
       (C) separation technologies for cost-effective product recovery and 
   purification;                                                           
       (D) approaches other than metabolic engineering and catalytic       
   conversion of intermediates of biomass processing;                      
       (E) advanced biomass gasification technologies, including           
   coproduction of power and heat as an integrated component of biomass    
   processing, with the possibility of generating excess electricity for   
   sale; and                                                               
       (F) related research in advanced turbine and stationary fuel cell   
   technology for production of electricity from biomass; and              
       (3) research aimed at ensuring the environmental performance and    
   economic viability of biobased industrial products and their raw        
   material input of biomass when considered as an integrated system,      
   including research on--                                                 
       (A) the analysis of, and strategies to enhance, the environmental   
   performance and sustainability of biobased industrial products,         
   including research on--                                                 
       (i) accurate measurement and analysis of greenhouse gas emissions,  
   carbon sequestration, and carbon cycling in relation to the life cycle  
   of biobased industrial products and feedstocks with respect to other    
   alternatives;                                                           
     (ii) evaluation of current and future biomass resource availability;  


       (iii) development and analysis of land management practices and     
   alternative biomass cropping systems that ensure the environmental      
   performance and sustainability of biomass production and harvesting;    
       (iv) the land, air, water, and biodiversity impacts of large-scale  
   biomass production, processing, and use of biobased industrial products 
   relative to other alternatives; and                                     
     (v) biomass gasification and combustion to produce electricity;       

       (B) the analysis of, and strategies to enhance, the economic        
   viability of biobased industrial products, including research on--      
     (i) the cost of the required process technology;                      

       (ii) the impact of coproducts, including food, animal feed, and     
   fiber, on biobased industrial product price and large-scale economic    
   viability; and                                                          
       (iii) interactions between an emergent biomass refining industry and
   the petrochemical refining infrastructure; and                          
       (C) the field and laboratory research related to feedstock          
   production with the interrelated goals of enhancing the sustainability, 
   increasing productivity, and decreasing the cost of biomass processing, 
   including research on--                                                 
       (i) altering biomass to make biomass easier and less expensive to   
   process;                                                                
       (ii) existing and new agricultural and energy crops that provide a  
   sustainable resource for conversion to biobased industrial products     
   while simultaneously serving as a source for coproducts such as food,   
   animal feed, and fiber;                                                 
       (iii) improved technologies for harvest, collection, transport,     
   storage, and handling of crop and residue feedstocks; and               
       (iv) development of economically viable cropping systems that       
   improve the conservation and restoration of marginal land; or           
       (4) any research and development in technologies or processes       
   determined by the Secretary of Agriculture and the Secretary of Energy, 
   acting through their respective points of contact and in consultation   
   with the Board, to be consistent with the purposes described in         
   subsection (b) and the priority described in subsection (c)(2)(B).      
    (e)  Technology and Information Transfer to Agricultural Users.--     

       (1) In general.--The Administrator of the Cooperative State         
   Research, Education, and Extension Service and the Chief of the Natural 
   Resources Conservation Service shall ensure that applicable research    
   results and technologies from the Initiative are adapted, made          
   available, and disseminated through their respective services, as       
   appropriate.                                                            
       (2) Report.--Not later than 5 years after the date of enactment of  
   this Act, the Administrator of the Cooperative State Research,          
   Education, and Extension Service and the Chief of the Natural Resources 
   Conservation Service shall submit to the committees of Congress with    
   jurisdiction over the Initiative a report on the activities conducted by
   the services under this subsection.                                     
     (f) Authorization of Appropriations.--In addition to funds           
  appropriated for biomass research and development under the general     
  authority of the Secretary of Energy to conduct research and development
  programs (which may also be used to carry out this title), there are    
  authorized to be appropriated to the Department of Agriculture to carry 
  out this title $49,000,000 for each of fiscal years 2000 through 2005.  
          SEC. 308. ADMINISTRATIVE SUPPORT AND FUNDS.                             

     (a) In General.--To the extent administrative support and funds are  
  not provided by other agencies under subsection (b), the Secretary of   
  Energy and the Secretary of Agriculture may provide such administrative 
  support and funds of the Department of Energy and the Department of     
  Agriculture to the Board and the Advisory Committee as are necessary to 
  enable the Board and the Advisory Committee to carry out their duties   
  under this title.                                                       
     (b) Other Agencies.--The heads of the agencies referred to in section
  305(b)(3), and the other members appointed under section 305(b)(4), may,
  and are encouraged to, provide administrative support and funds of their
  respective agencies to the Board and the Advisory Committee.            
     (c) Limitation.--Not more than 4 percent of the amount appropriated  
  for each fiscal year under section 307(f) may be used to pay the        
  administrative costs of carrying out this title.                        
          SEC. 309. REPORTS.                                                      

     (a) Initial Report.--Not later than 180 days after the date of       
  enactment of this Act, the Secretary of Energy and the Secretary of     
  Agriculture shall jointly submit to Congress a report that--            
       (1) identifies the points of contact, the members of the Board, and 
   the members of the Advisory Committee;                                  
       (2) describes the status of current biobased industrial product     
   research and development efforts in both the Federal Government and     
   private sector;                                                         
       (3) includes a section prepared by the Board that establishes a set 
   of criteria to assess the potential of biobased industrial products,    
   which shall include for both biomass production and transformation into 
   biobased industrial products--                                          
     (A) an energy accounting;                                             

     (B) an environmental impact assessment; and                           

     (C) an economic assessment; and                                       

       (4) describes the research and development goals of the Initiative, 
   including how funds will be allocated in order to accomplish those      
   goals.                                                                  
     (b) Annual Reports.--For each fiscal year for which funds are made   
  available to carry out this title, the Secretary of Energy and the      
  Secretary of Agriculture shall jointly submit to Congress a detailed    
  report on--                                                             
       (1) the status and progress of the Initiative, including a report   
   from the Advisory Committee on whether funds appropriated               

          for the Initiative have been distributed and used in a manner that--    

     (A) is consistent with the purposes described in section 307(b);      

     (B) uses the set of criteria established under subsection (a)(3); and 

       (C) takes into account any recommendations that have been made by   
   the Advisory Committee;                                                 
       (2) the general status of cooperation and research and development  
   efforts carried out at each agency with respect to biobased industrial  
   products, including a report from the Advisory Committee on whether the 
   points of contact are funding proposals that are selected under section 
   307(c)(2)(C); and                                                       
       (3) the plans of the Secretary of Energy and the Secretary of       
   Agriculture for addressing concerns raised in the report, including     
   concerns raised by the Advisory Committee.                              
          SEC. 310. TERMINATION OF AUTHORITY.                                     

     The authority provided under this title shall terminate on December  
  31, 2005.                                                               

           TITLE IV--PLANT PROTECTION ACT                                          

          SEC. 401. SHORT TITLE.                                                  

    This title may be cited as the ``Plant Protection Act''.              


          SEC. 402. FINDINGS.                                                     

    Congress finds that--                                                 

       (1) the detection, control, eradication, suppression, prevention, or
   retardation of the spread of plant pests or noxious weeds is necessary  
   for the protection of the agriculture, environment, and economy of the  
   United States;                                                          
       (2) biological control is often a desirable, low-risk means of      
   ridding crops and other plants of plant pests and noxious weeds, and its
   use should be facilitated by the Department of Agriculture, other       
   Federal agencies, and States whenever feasible;                         
       (3) it is the responsibility of the Secretary to facilitate exports,
   imports, and interstate commerce in agricultural products and other     
   commodities that pose a risk of harboring plant pests or noxious weeds  
   in ways that will reduce, to the extent practicable, as determined by   
   the Secretary, the risk of dissemination of plant pests or noxious      
   weeds;                                                                  
       (4) decisions affecting imports, exports, and interstate movement of
   products regulated under this title shall be based on sound science;    
       (5) the smooth movement of enterable plants, plant products,        
   biological control organisms, or other articles into, out of, or within 
   the United States is vital to the United State's economy and should be  
   facilitated to the extent possible;                                     
       (6) export markets could be severely impacted by the introduction or
   spread of plant pests or noxious weeds into or within the United States;
       (7) the unregulated movement of plant pests, noxious weeds, plants, 
   certain biological control organisms, plant products, and articles      
   capable of harboring plant pests or noxious weeds could present an      
   unacceptable risk of introducing or spreading plant pests or noxious    
   weeds;                                                                  
       (8) the existence on any premises in the United States of a plant   
   pest or noxious weed new to or not known to be widely prevalent in or   
   distributed within and throughout the United States could constitute a  
   threat to crops and other plants or plant products of the United States 
   and burden interstate commerce or foreign commerce; and                 
       (9) all plant pests, noxious weeds, plants, plant products, articles
   capable of harboring plant pests or noxious weeds regulated under this  
   title are in or affect interstate commerce or foreign commerce.         
          SEC. 403. DEFINITIONS.                                                  

    In this title:                                                        

       (1) Article.--The term ``article'' means any material or tangible   
   object that could harbor plant pests or noxious weeds.                  
       (2) Biological control organism.--The term ``biological control     
   organism'' means any enemy, antagonist, or competitor used to control a 
   plant pest or noxious weed.                                             
       (3) Enter and entry.--The terms ``enter'' and ``entry'' mean to move
   into, or the act of movement into, the commerce of the United States.   
       (4) Export and exportation.--The terms ``export'' and               
   ``exportation'' mean to move from, or the act of movement from, the     
   United States to any place outside the United States.                   
       (5) Import and importation.--The terms ``import'' and               
   ``importation'' mean to move into, or the act of movement into, the     
   territorial limits of the United States.                                
     (6)  Interstate.--The term ``interstate'' means--                     

     (A) from one State into or through any other State; or                

       (B) within the District of Columbia, Guam, the Virgin Islands of the
   United States, or any other territory or possession of the United       
   States.                                                                 
       (7) Interstate commerce.--The term ``interstate commerce'' means    
   trade, traffic, or other commerce--                                     
       (A) between a place in a State and a point in another State, or     
   between points within the same State but through any place outside that 
   State; or                                                               
       (B) within the District of Columbia, Guam, the Virgin Islands of the
   United States, or any other territory or possession of the United       
   States.                                                                 
       (8) Means of conveyance.--The term ``means of conveyance'' means any
   personal property used for or intended for use for the movement of any  
   other personal property.                                                
       (9) Move and related terms.--The terms ``move'', ``moving'', and    
   ``movement'' mean--                                                     
     (A) to carry, enter, import, mail, ship, or transport;                

       (B) to aid, abet, cause, or induce the carrying, entering,          
   importing, mailing, shipping, or transporting;                          
     (C) to offer to carry, enter, import, mail, ship, or transport;       

     (D) to receive to carry, enter, import, mail, ship, or transport;     


     (E) to release into the environment; or                               

       (F) to allow any of the activities described in a preceding         
   subparagraph.                                                           
       (10) Noxious weed.--The term ``noxious weed'' means any plant or    
   plant product that can directly or indirectly injure or cause damage to 
   crops (including nursery stock or plant products), livestock, poultry,  
   or other interests of agriculture, irrigation, navigation, the natural  
   resources of the United States, the public health, or the environment.  
       (11) Permit.--The term ``permit'' means a written or oral           
   authorization, including by electronic methods, by the Secretary to move
   plants, plant products, biological control organisms, plant pests,      
   noxious weeds, or articles under conditions prescribed by the Secretary.
       (12) Person.--The term ``person'' means any individual, partnership,
   corporation, association, joint venture, or other legal entity.         
       (13) Plant.--The term ``plant'' means any plant (including any plant
   part) for or capable of propagation, including a tree, a tissue culture,
   a plantlet culture, pollen, a shrub, a vine, a cutting, a graft, a      
   scion, a bud, a bulb, a root, and a seed.                               
       (14) Plant pest.--The term ``plant pest'' means any living stage of 
   any of the following that can directly or indirectly injure, cause      
   damage to, or cause disease in any plant or plant product:              
     (A) A protozoan.                                                      

     (B) A nonhuman animal.                                                

     (C) A parasitic plant.                                                

     (D) A bacterium.                                                      

     (E) A fungus.                                                         

     (F) A virus or viroid.                                                

     (G) An infectious agent or other pathogen.                            

       (H) Any article similar to or allied with any of the articles       
   specified in the preceding subparagraphs.                               
     (15)  Plant product.--The term ``plant product'' means--              

       (A) any flower, fruit, vegetable, root, bulb, seed, or other plant  
   part that is not included in the definition of plant; or                
     (B) any manufactured or processed plant or plant part.                

       (16) Secretary.--The term ``Secretary'' means the Secretary of      
   Agriculture.                                                            
       (17) State.--The term ``State'' means any of the several States of  
   the United States, the Commonwealth of the Northern Mariana Islands, the
   Commonwealth of Puerto Rico, the District of Columbia, Guam, the Virgin 
   Islands of the United States, or any other territory or possession of   
   the United States.                                                      
       (18) Systems approach.--For the purposes of section 412(e), the term
   ``systems approach'' means a defined set of phytosanitary procedures, at
   least 2 of which have an independent effect in mitigating pest risk     
   associated with the movement of commodities.                            
       (19) This title.--Except when used in this section, the term ``this 
   title'' includes any regulation or order issued by the Secretary under  
   the authority of this title.                                            
       (20) United states.--The term ``United States'' means all of the    
   States.                                                                 
           Subtitle A--Plant Protection                                            

          SEC. 411. REGULATION OF MOVEMENT OF PLANT PESTS.                        

     (a) Prohibition of Unauthorized Movement of Plant Pests.--Except as  
  provided in subsection (c), no person shall import, enter, export, or   
  move in interstate commerce any plant pest, unless the importation,     
  entry, exportation, or movement is authorized under general or specific 
  permit and is in accordance with such regulations as the Secretary may  
  issue to prevent the introduction of plant pests into the United States 
  or the dissemination of plant pests within the United States.           
     (b) Requirements for Processes.--The Secretary shall ensure that the 
  processes used in developing regulations under subsection (a) governing 
  consideration of import requests are based on sound science and are     
  transparent and accessible.                                             
    (c)  Authorization of Movement of Plant Pests by Regulation.--        

       (1) Exception to permit requirement.--The Secretary may issue       
   regulations to allow the importation, entry, exportation, or movement in
   interstate commerce of specified plant pests without further restriction
   if the Secretary finds that a permit under subsection (a) is not        
   necessary.                                                              
       (2) Petition to add or remove plant pests from regulation.--Any     
   person may petition the Secretary to add a plant pest to, or remove a   
   plant pest from, the regulations issued by the Secretary under paragraph
   (1).                                                                    
       (3) Response to petition by the secretary.--In the case of a        
   petition submitted under paragraph (2), the Secretary shall act on the  
   petition within a reasonable time and notify the petitioner of the final
   action the Secretary takes on the petition. The Secretary's             
   determination on the petition shall be based on sound science.          
    (d)  Prohibition of Unauthorized Mailing of Plant Pests.--            

       (1) In general.--Any letter, parcel, box, or other package          
   containing any plant pest, whether sealed as letter-rate postal matter  
   or not, is nonmailable and shall not knowingly be conveyed in the mail  
   or delivered from any post office or by any mail carrier, unless the    
   letter, parcel, box, or other package is mailed in compliance with such 
   regulations as the Secretary may issue to prevent the dissemination of  
   plant pests into the United States or interstate.                       
       (2) Application of postal laws and regulations.--Nothing in this    
   subsection authorizes any person to open any mailed letter or other     
   mailed sealed matter except in accordance with the postal laws and      
   regulations.                                                            
     (e) Regulations.--Regulations issued by the Secretary to implement   
  subsections (a), (c), and (d) may include provisions requiring that any 
  plant pest imported, entered, to be exported, moved in interstate       
  commerce, mailed, or delivered from any post office--                   

       (1) be accompanied by a permit issued by the Secretary prior to the 
   importation, entry, exportation, movement in interstate commerce,       
   mailing, or delivery of the plant pest;                                 
       (2) be accompanied by a certificate of inspection issued (in a      
   manner and form required by the Secretary) by appropriate officials of  
   the country or State from which the plant pest is to be moved;          
       (3) be raised under post-entry quarantine conditions by or under the
   supervision of the Secretary for the purposes of determining whether the
   plant pest--                                                            
     (A) may be infested with other plant pests;                           

       (B) may pose a significant risk of causing injury to, damage to, or 
   disease in any plant or plant product; or                               
     (C) may be a noxious weed; and                                        

       (4) be subject to remedial measures the Secretary determines to be  
   necessary to prevent the spread of plant pests.                         
                    SEC. 412. REGULATION OF MOVEMENT OF PLANTS, PLANT PRODUCTS,   
          BIOLOGICAL CONTROL ORGANISMS, NOXIOUS WEEDS, ARTICLES, AND MEANS OF     
          CONVEYANCE.                                                             
     (a) In General.--The Secretary may prohibit or restrict the          
  importation, entry, exportation, or movement in interstate commerce of  
  any plant, plant product, biological control organism, noxious weed,    
  article, or means of conveyance, if the Secretary determines that the   
  prohibition or restriction is necessary to prevent the introduction into
  the United States or the dissemination of a plant pest or noxious weed  
  within the United States.                                               
     (b) Policy.--The Secretary shall ensure that processes used in       
  developing regulations under this section governing consideration of    
  import requests are based on sound science and are transparent and      
  accessible.                                                             
     (c) Regulations.--The Secretary may issue regulations to implement   
  subsection (a), including regulations requiring that any plant, plant   
  product, biological control organism, noxious weed, article, or means of
  conveyance imported, entered, to be exported, or moved in interstate    
  commerce--                                                              
       (1) be accompanied by a permit issued by the Secretary prior to the 
   importation, entry, exportation, or movement in interstate commerce;    
       (2) be accompanied by a certificate of inspection issued (in a      
   manner and form required by the Secretary) by appropriate officials of  
   the country or State from which the plant, plant product, biological    
   control organism, noxious weed, article, or means of conveyance is to be
   moved;                                                                  
       (3) be subject to remedial measures the Secretary determines to be  
   necessary to prevent the spread of plant pests or noxious weeds; and    
       (4) with respect to plants or biological control organisms, be grown
   or handled under post-entry quarantine conditions by or under the       
   supervision of the Secretary for the purposes of determining whether the
   plant or biological control organism may be infested with plant pests or
   may be a plant pest or noxious weed.                                    
     (d) Notice.--Not later than 1 year after the date of enactment of    
  this Act, the Secretary shall publish for public comment a notice       
  describing the procedures and standards that govern the consideration of
  import requests. The notice shall--                                     
       (1) specify how public input will be sought in advance of and during
   the process of promulgating regulations necessitating a risk assessment 
   in order to ensure a fully transparent and publicly accessible process; 
   and                                                                     
     (2) include consideration of the following:                           

       (A) Public announcement of import requests that will necessitate a  
   risk assessment.                                                        
       (B) A process for assigning major/nonroutine or minor/routine status
   to such requests based on current state of supporting scientific        
   information.                                                            
     (C) A process for assigning priority to requests.                     

       (D) Guidelines for seeking relevant scientific and economic         
   information in advance of initiating informal rulemaking.               
       (E) Guidelines for ensuring availability and transparency of        
   assumptions and uncertainties in the risk assessment process including  
   applicable risk mitigation measures relied upon individually or as      
   components of a system of mitigative measures proposed consistent with  
   the purposes of this title.                                             
    (e)  Study and Report on Systems Approach.--                          

       (1) Study.--The Secretary shall conduct a study of the role for and 
   application of systems approaches designed to guard against the         
   introduction of plant pathogens into the United States associated with  
   proposals to import plants or plant products into the United States.    
       (2) Participation by scientists.--In conducting the study the       
   Secretary shall ensure participation by scientists from State           
   departments of agriculture, colleges and universities, the private      
   sector, and the Agricultural Research Service.                          
       (3) Report.--Not later than 2 years after the date of enactment of  
   this Act, the Secretary shall submit a report on the results of the     
   study conducted under this section to the Committee on Agriculture,     
   Nutrition, and Forestry of the Senate and the Committee on Agriculture  
   of the House of Representatives.                                        
    (f)  Noxious Weeds.--                                                 

       (1) Regulations.--In the case of noxious weeds, the Secretary may   
   publish, by regulation, a list of noxious weeds that are prohibited or  
   restricted from entering the United States or that are subject to       
   restrictions on interstate movement within the United States.           
       (2) Petition to add or remove plants from regulation.--Any person   
   may petition the Secretary to add a plant species to, or remove a plant 
   species from, the regulations issued by the Secretary under this        
   subsection.                                                             
       (3) Duties of the secretary.--In the case of a petition submitted   
   under paragraph (2), the Secretary shall act on the petition within a   
   reasonable time and notify the petitioner of the final action the       
   Secretary takes on the petition. The Secretary's determination on the   
   petition shall be based on sound science.                               
    (g)  Biological Control Organisms.--                                  


       (1) Regulations.--In the case of biological control organisms, the  
   Secretary may publish, by regulation, a list of organisms whose movement
   in interstate commerce is not prohibited or restricted. Any listing may 
   take into account distinctions between organisms such as indigenous,    
   nonindigenous, newly introduced, or commercially raised.                
       (2) Petition to add or remove biological control organisms from the 
   regulations.--Any person may petition the Secretary to add a biological 
   control organism to, or remove a biological control organism from, the  
   regulations issued by the Secretary under this subsection.              
       (3) Duties of the secretary.--In the case of a petition submitted   
   under paragraph (2), the Secretary shall act on the petition within a   
   reasonable time and notify the petitioner of the final action the       
   Secretary takes on the petition. The Secretary's determination on the   
   petition shall be based on sound science.                               
          SEC. 413. NOTIFICATION AND HOLDING REQUIREMENTS UPON ARRIVAL.           

    (a)  Duty of Secretary of the Treasury.--                             

       (1) Notification.--The Secretary of the Treasury shall promptly     
   notify the Secretary of Agriculture of the arrival of any plant, plant  
   product, biological control organism, plant pest, or noxious weed at a  
   port of entry.                                                          
       (2) Holding.--The Secretary of the Treasury shall hold a plant,     
   plant product, biological control organism, plant pest, or noxious weed 
   for which notification is made under paragraph (1) at the port of entry 
   until the plant, plant product, biological control organism, plant pest,
   or noxious weed--                                                       
       (A) is inspected and authorized for entry into or transit movement  
   through the United States; or                                           
     (B) is otherwise released by the Secretary of Agriculture.            

       (3) Exceptions.--Paragraphs (1) and (2) shall not apply to any      
   plant, plant product, biological control organism, plant pest, or       
   noxious weed that is imported from a country or region of a country     
   designated by the Secretary of Agriculture, pursuant to regulations, as 
   exempt from the requirements of such paragraphs.                        
    (b)  Duty of Responsible Parties.--                                   

       (1) Notification.--The person responsible for any plant, plant      
   product, biological control organism, plant pest, noxious weed, article,
   or means of conveyance required to have a permit under section 411 or   
   412 shall provide the notification described in paragraph (3) as soon as
   possible after the arrival of the plant, plant product, biological      
   control organism, plant pest, noxious weed, article, or means of        
   conveyance at a port of entry and before the plant, plant product,      
   biological control organism, plant pest, noxious weed, article, or means
   of conveyance is moved from the port of entry.                          
       (2) Submission.--The notification shall be provided to the          
   Secretary, or, at the Secretary's direction, to the proper official of  
   the State to which the plant, plant product, biological control         
   organism, plant pest, noxious weed, article, or means of conveyance is  
   destined, or both, as the Secretary may prescribe.                      
       (3) Elements of notification.--The notification shall consist of the
   following:                                                              
     (A) The name and address of the consignee.                            

       (B) The nature and quantity of the plant, plant product, biological 
   control organism, plant pest, noxious weed, article, or means of        
   conveyance proposed to be moved.                                        
       (C) The country and locality where the plant, plant product,        
   biological control organism, plant pest, noxious weed, article, or means
   of conveyance was grown, produced, or located.                          
     (c) Prohibition on Movement of Items Without Authorization.--No      
  person shall move from a port of entry or interstate any imported plant,
  plant product, biological control organism, plant pest, noxious weed,   
  article, or means of conveyance unless the imported plant, plant        
  product, biological control organism, plant pest, noxious weed, article,
  or means of conveyance--                                                
       (1) is inspected and authorized for entry into or transit movement  
   through the United States; or                                           
     (2) is otherwise released by the Secretary.                           

                    SEC. 414. GENERAL REMEDIAL MEASURES FOR NEW PLANT PESTS AND   
          NOXIOUS WEEDS.                                                          
     (a) Authority To Hold, Treat, or Destroy Items.--If the Secretary    
  considers it necessary in order to prevent the dissemination of a plant 
  pest or noxious weed that is new to or not known to be widely prevalent 
  or distributed within and throughout the United States, the Secretary   
  may hold, seize, quarantine, treat, apply other remedial measures to,   
  destroy, or otherwise dispose of any plant, plant pest, noxious weed,   
  biological control organism, plant product, article, or means of        
  conveyance that--                                                       
       (1) is moving into or through the United States or interstate, or   
   has moved into or through the United States or interstate, and--        
       (A) the Secretary has reason to believe is a plant pest or noxious  
   weed or is infested with a plant pest or noxious weed at the time of the
   movement; or                                                            
     (B) is or has been otherwise in violation of this title;              

       (2) has not been maintained in compliance with a post-entry         
   quarantine requirement; or                                              
       (3) is the progeny of any plant, biological control organism, plant 
   product, plant pest, or noxious weed that is moving into or through the 
   United States or interstate, or has moved into the United States or     
   interstate, in violation of this title.                                 
    (b)  Authority To Order an Owner To Treat or Destroy.--               

       (1) In general.--The Secretary may order the owner of any plant,    
   biological control organism, plant product, plant pest, noxious weed,   
   article, or means of conveyance subject to action under subsection (a), 
   or the owner's agent, to treat, apply other remedial measures to,       
   destroy, or otherwise dispose of the plant, biological control organism,
   plant product, plant pest, noxious weed, article, or means of           
   conveyance, without cost to the Federal Government and in the manner the
   Secretary considers appropriate.                                        
       (2) Failure to comply.--If the owner or agent of the owner fails to 
   comply with the Secretary's order under this                            

                    subsection, the Secretary may take an action authorized by    
          subsection (a) and recover from the owner or agent of the owner the     
          costs of any care, handling, application of remedial measures, or       
          disposal incurred by the Secretary in connection with actions taken     
          under subsection (a).                                                   
    (c)  Classification System.--                                         

       (1) Development required.--To facilitate control of noxious weeds,  
   the Secretary may develop a classification system to describe the status
   and action levels for noxious weeds. The classification system may      
   include the current geographic distribution, relative threat, and       
   actions initiated to prevent introduction or distribution.              
       (2) Management plans.--In conjunction with the classification       
   system, the Secretary may develop integrated management plans for       
   noxious weeds for the geographic region or ecological range where the   
   noxious weed is found in the United States.                             
     (d) Application of Least Drastic Action.--No plant, biological       
  control organism, plant product, plant pest, noxious weed, article, or  
  means of conveyance shall be destroyed, exported, or returned to the    
  shipping point of origin, or ordered to be destroyed, exported, or      
  returned to the shipping point of origin under this section unless, in  
  the opinion of the Secretary, there is no less drastic action that is   
  feasible and that would be adequate to prevent the dissemination of any 
  plant pest or noxious weed new to or not known to be widely prevalent or
  distributed within and throughout the United States.                    
                    SEC. 415. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING
          AUTHORITIES.                                                            
     (a) Authority To Declare.--If the Secretary determines that an       
  extraordinary emergency exists because of the presence of a plant pest  
  or noxious weed that is new to or not known to be widely prevalent in or
  distributed within and throughout the United States and that the        
  presence of the plant pest or noxious weed threatens plants or plant    
  products of the United States, the Secretary may--                      
       (1) hold, seize, quarantine, treat, apply other remedial measures   
   to, destroy, or otherwise dispose of, any plant, biological control     
   organism, plant product, article, or means of conveyance that the       
   Secretary has reason to believe is infested with the plant pest or      
   noxious weed;                                                           
       (2) quarantine, treat, or apply other remedial measures to any      
   premises, including any plants, biological control organisms, plant     
   products, articles, or means of conveyance on the premises, that the    
   Secretary has reason to believe is infested with the plant pest or      
   noxious weed;                                                           
       (3) quarantine any State or portion of a State in which the         
   Secretary finds the plant pest or noxious weed or any plant, biological 
   control organism, plant product, article, or means of conveyance that   
   the Secretary has reason to believe is infested with the plant pest or  
   noxious weed; and                                                       
       (4) prohibit or restrict the movement within a State of any plant,  
   biological control organism, plant product, article, or means of        
   conveyance when the Secretary determines that the prohibition or        
   restriction is necessary to prevent the dissemination of the plant pest 
   or noxious weed or to eradicate the plant pest or noxious weed.         
     (b) Required Finding of Emergency.--The Secretary may take action    
  under this section only upon finding, after review and consultation with
  the Governor or other appropriate official of the State affected, that  
  the measures being taken by the State are inadequate to eradicate the   
  plant pest or noxious weed.                                             
    (c)  Notification Procedures.--                                       

       (1) In general.--Except as provided in paragraph (2), before any    
   action is taken in any State under this section, the Secretary shall    
   notify the Governor or other appropriate official of the State affected,
   issue a public announcement, and file for publication in the Federal    
   Register a statement of--                                               
     (A) the Secretary's findings;                                         

     (B) the action the Secretary intends to take;                         

     (C) the reasons for the intended action; and                          

       (D) where practicable, an estimate of the anticipated duration of   
   the extraordinary emergency.                                            
       (2) Time sensitive actions.--If it is not possible to file for      
   publication in the Federal Register prior to taking action, the filing  
   shall be made within a reasonable time, not to exceed 10 business days, 
   after commencement of the action.                                       
     (d) Application of Least Drastic Action.--No plant, biological       
  control organism, plant product, plant pest, noxious weed, article, or  
  means of conveyance shall be destroyed, exported, or returned to the    
  shipping point of origin, or ordered to be destroyed, exported, or      
  returned to the shipping point of origin under this section unless, in  
  the opinion of the Secretary, there is no less drastic action that is   
  feasible and that would be adequate to prevent the dissemination of any 
  plant pest or noxious weed new to or not known to be widely prevalent or
  distributed within and throughout the United States.                    
     (e) Payment of Compensation.--The Secretary may pay compensation to  
  any person for economic losses incurred by the person as a result of    
  action taken by the Secretary under this section. The determination by  
  the Secretary of the amount of any compensation to be paid under this   
  subsection shall be final and shall not be subject to judicial review.  
          SEC. 416. RECOVERY OF COMPENSATION FOR UNAUTHORIZED ACTIVITIES.         

     (a) Recovery Action.--The owner of any plant, plant biological       
  control organism, plant product, plant pest, noxious weed, article, or  
  means of conveyance destroyed or otherwise disposed of by the Secretary 
  under section 414 or 415 may bring an action against the United States  
  to recover just compensation for the destruction or disposal of the     
  plant, plant biological control organism, plant product, plant pest,    
  noxious weed, article, or means of conveyance (not including            
  compensation for loss due to delays incident to determining eligibility 
  for importation, entry, exportation, movement in interstate commerce, or
  release into the environment), but only if the owner establishes that   
  the destruction or disposal was not authorized under this title.        
     (b) Time for Action; Location.--An action under this section shall be
  brought not later than 1 year after the destruction or disposal of the  
  plant, plant biological control organism, plant product,                

                    plant pest, noxious weed, article, or means of conveyance     
          involved. The action may be brought in any United States district court 
          where the owner is found, resides, transacts business, is licensed to do
          business, or is incorporated.                                           
          SEC. 417. CONTROL OF GRASSHOPPERS AND MORMON CRICKETS.                  

     (a) In General.--Subject to the availability of funds pursuant to    
  this section, the Secretary shall carry out a program to control        
  grasshoppers and Mormon crickets on all Federal lands to protect        
  rangeland.                                                              
    (b)  Transfer Authority.--                                            

       (1) In general.--Subject to paragraph (3), upon the request of the  
   Secretary of Agriculture, the Secretary of the Interior shall transfer  
   to the Secretary of Agriculture, from any no-year appropriations, funds 
   for the prevention, suppression, and control of actual or potential     
   grasshopper and Mormon cricket outbreaks on Federal lands under the     
   jurisdiction of the Secretary of the Interior. The transferred funds    
   shall be available only for the payment of obligations incurred on such 
   Federal lands.                                                          
       (2) Transfer requests.--Requests for the transfer of funds pursuant 
   to this subsection shall be made as promptly as possible by the         
   Secretary.                                                              
       (3) Limitation.--Funds transferred pursuant to this subsection may  
   not be used by the Secretary until funds specifically appropriated to   
   the Secretary for grasshopper control have been exhausted.              
       (4) Replenishment of transferred funds.--Funds transferred pursuant 
   to this subsection shall be replenished by supplemental or regular      
   appropriations, which shall be requested as promptly as possible.       
    (c)  Treatment for Grasshoppers and Mormon Crickets.--                

       (1) In general.--Subject to the availability of funds pursuant to   
   this section, on request of the administering agency or the agriculture 
   department of an affected State, the Secretary, to protect rangeland,   
   shall immediately treat Federal, State, or private lands that are       
   infested with grasshoppers or Mormon crickets at levels of economic     
   infestation, unless the Secretary determines that delaying treatment    
   will not cause greater economic damage to adjacent owners of rangeland. 
       (2) Other programs.--In carrying out this section, the Secretary    
   shall work in conjunction with other Federal, State, and private        
   prevention, control, or suppression efforts to protect rangeland.       
    (d)  Federal Cost Share of Treatment.--                               

       (1) Control on federal lands.--Out of funds made available or       
   transferred under this section, the Secretary shall pay 100 percent of  
   the cost of grasshopper or Mormon cricket control on Federal lands to   
   protect rangeland.                                                      
       (2) Control on state lands.--Out of funds made available under this 
   section, the Secretary shall pay 50 percent of the cost of grasshopper  
   or Mormon cricket control on State lands.                               
       (3) Control on private lands.--Out of funds made available under    
   this section, the Secretary shall pay 33.3 percent of the cost of       
   grasshopper or Mormon cricket control on private lands.                 
     (e) Training.--From appropriated funds made available or transferred 
  by the Secretary of the Interior to the Secretary of Agriculture for    
  such purposes, the Secretary of Agriculture shall provide adequate      
  funding for a program to train personnel to accomplish effectively the  
  objective of this section.                                              
          SEC. 418. CERTIFICATION FOR EXPORTS.                                    

     The Secretary may certify as to the freedom of plants, plant         
  products, or biological control organisms from plant pests or noxious   
  weeds, or the exposure of plants, plant products, or biological control 
  organisms to plant pests or noxious weeds, according to the             
  phytosanitary or other requirements of the countries to which the       
  plants, plant products, or biological control organisms may be exported.
           Subtitle B--Inspection and Enforcement                                  

          SEC. 421. INSPECTIONS, SEIZURES, AND WARRANTS.                          

     (a) Role of Attorney General.--The activities authorized by this     
  section shall be carried out consistent with guidelines approved by the 
  Attorney General.                                                       
     (b) Warrantless Inspections.--The Secretary may stop and inspect,    
  without a warrant, any person or means of conveyance moving--           
       (1) into the United States to determine whether the person or means 
   of conveyance is carrying any plant, plant product, biological control  
   organism, plant pest, noxious weed, or article subject to this title;   
       (2) in interstate commerce, upon probable cause to believe that the 
   person or means of conveyance is carrying any plant, plant product,     
   biological control organism, plant pest, noxious weed, or article       
   subject to this title; and                                              
       (3) in intrastate commerce from or within any State, portion of a   
   State, or premises quarantined as part of a extraordinary emergency     
   declared under section 415 upon probable cause to believe that the      
   person or means of conveyance is carrying any plant, plant product,     
   biological control organism, plant pest, noxious weed, or article       
   regulated under that section or is moving subject to that section.      
    (c)  Inspections With a Warrant.--                                    

       (1) General authority.--The Secretary may enter, with a warrant, any
   premises in the United States for the purpose of conducting             
   investigations or making inspections and seizures under this title.     
       (2) Application and issuance of a warrant.--Upon proper oath or     
   affirmation showing probable cause to believe that there is on certain  
   premises any plant, plant product, biological control organism, plant   
   pest, noxious weed, article, facility, or means of conveyance regulated 
   under this title, a United States judge, a judge of a court of record in
   the United States, or a United States magistrate judge may, within the  
   judge's or magistrate's jurisdiction, issue a warrant for the entry upon
   the                                                                     

                     premises to conduct any investigation or make any inspection 
          or seizure under this title. The warrant may be applied for and executed
          by the Secretary or any United States Marshal.                          
          SEC. 422. COLLECTION OF INFORMATION.                                    

     The Secretary may gather and compile information and conduct any     
  investigations the Secretary considers necessary for the administration 
  and enforcement of this title.                                          
          SEC. 423. SUBPOENA AUTHORITY.                                           

     (a) Authority To Issue.--The Secretary shall have power to subpoena  
  the attendance and testimony of any witness, and the production of all  
  documentary evidence relating to the administration or enforcement of   
  this title or any matter under investigation in connection with this    
  title.                                                                  
     (b) Location of Production.--The attendance of any witness and       
  production of documentary evidence may be required from any place in the
  United States at any designated place of hearing.                       
     (c) Enforcement of Subpoena.--In the case of disobedience to a       
  subpoena by any person, the Secretary may request the Attorney General  
  to invoke the aid of any court of the United States within the          
  jurisdiction in which the investigation is conducted, or where the      
  person resides, is found, transacts business, is licensed to do         
  business, or is incorporated, in requiring the attendance and testimony 
  of any witness and the production of documentary evidence. In case of a 
  refusal to obey a subpoena issued to any person, a court may order the  
  person to appear before the Secretary and give evidence concerning the  
  matter in question or to produce documentary evidence. Any failure to   
  obey the court's order may be punished by the court as a contempt of the
  court.                                                                  
     (d) Compensation.--Witnesses summoned by the Secretary shall be paid 
  the same fees and mileage that are paid to witnesses in courts of the   
  United States, and witnesses whose depositions are taken and the persons
  taking the depositions shall be entitled to the same fees that are paid 
  for similar services in the courts of the United States.                
     (e) Procedures.--The Secretary shall publish procedures for the      
  issuance of subpoenas under this section. Such procedures shall include 
  a requirement that subpoenas be reviewed for legal sufficiency and      
  signed by the Secretary. If the authority to sign a subpoena is         
  delegated, the agency receiving the delegation shall seek review for    
  legal sufficiency outside that agency.                                  
     (f) Scope of Subpoena.--Subpoenas for witnesses to attend court in   
  any judicial district or to testify or produce evidence at an           
  administrative hearing in any judicial district in any action or        
  proceeding arising under this title may run to any other judicial       
  district.                                                               
          SEC. 424. PENALTIES FOR VIOLATION.                                      

     (a) Criminal Penalties.--Any person that knowingly violates this     
  title, or that knowingly forges, counterfeits, or, without authority    
  from the Secretary, uses, alters, defaces, or destroys any certificate, 
  permit, or other document provided for in this title shall be guilty of 
  a misdemeanor, and, upon conviction, shall be fined in accordance with  
  title 18, United States Code, imprisoned for a period not exceeding 1   
  year, or both.                                                          
    (b)  Civil Penalties.--                                               

       (1) In general.--Any person that violates this title, or that       
   forges, counterfeits, or, without authority from the Secretary, uses,   
   alters, defaces, or destroys any certificate, permit, or other document 
   provided for in this title may, after notice and opportunity for a      
   hearing on the record, be assessed a civil penalty by the Secretary that
   does not exceed the greater of--                                        
       (A) $50,000 in the case of any individual (except that the civil    
   penalty may not exceed $1,000 in the case of an initial violation of    
   this title by an individual moving regulated articles not for monetary  
   gain), $250,000 in the case of any other person for each violation, and 
   $500,000 for all violations adjudicated in a single proceeding; or      
       (B) twice the gross gain or gross loss for any violation, forgery,  
   counterfeiting, unauthorized use, defacing, or destruction of a         
   certificate, permit, or other document provided for in this title that  
   results in the person deriving pecuniary gain or causing pecuniary loss 
   to another.                                                             
       (2) Factors in determining civil penalty.--In determining the amount
   of a civil penalty, the Secretary shall take into account the nature,   
   circumstance, extent, and gravity of the violation or violations and the
   Secretary may consider, with respect to the violator--                  
     (A) ability to pay;                                                   

     (B) effect on ability to continue to do business;                     

     (C) any history of prior violations;                                  

     (D) the degree of culpability; and                                    

     (E) any other factors the Secretary considers appropriate.            

       (3) Settlement of civil penalties.--The Secretary may compromise,   
   modify, or remit, with or without conditions, any civil penalty that may
   be assessed under this subsection.                                      
       (4) Finality of orders.--The order of the Secretary assessing a     
   civil penalty shall be treated as a final order reviewable under chapter
   158 of title 28, United States Code. The validity of the Secretary's    
   order may not be reviewed in an action to collect the civil penalty. Any
   civil penalty not paid in full when due under an order assessing the    
   civil penalty shall thereafter accrue interest until paid at the rate of
   interest applicable to civil judgments of the courts of the United      
   States.                                                                 
     (c) Liability for Acts of an Agent.--When construing and enforcing   
  this title, the act, omission, or failure of any officer, agent, or     
  person acting for or employed by any other person within the scope of   
  his or her employment or office, shall be deemed also to be the act,    
  omission, or failure of the other person.                               
     (d) Guidelines for Civil Penalties.--The Secretary shall coordinate  
  with the Attorney General to establish guidelines to determine under    
  what circumstances the Secretary may issue a civil penalty or suitable  
  notice of warning in lieu of prosecution by the Attorney General of a   
  violation of this title.                                                
          SEC. 425. ENFORCEMENT ACTIONS OF ATTORNEY GENERAL.                      

    The Attorney General may--                                            

       (1) prosecute, in the name of the United States, all criminal       
   violations of this title that are referred to the Attorney General      

                    by the Secretary or are brought to the notice of the Attorney 
          General by any person;                                                  
       (2) bring an action to enjoin the violation of or to compel         
   compliance with this title, or to enjoin any interference by any person 
   with the Secretary in carrying out this title, whenever the Secretary   
   has reason to believe that the person has violated, or is about to      
   violate this title, or has interfered, or is about to interfere, with   
   the Secretary; and                                                      
       (3) bring an action for the recovery of any unpaid civil penalty,   
   funds under reimbursable agreements, late payment penalty, or interest  
   assessed under this title.                                              
          SEC. 426. COURT JURISDICTION.                                           

     (a) In General.--The United States district courts, the District     
  Court of Guam, the District Court of the Virgin Islands, the highest    
  court of American Samoa, and the United States courts of other          
  territories and possessions are vested with jurisdiction in all cases   
  arising under this title. Any action arising under this title may be    
  brought, and process may be served, in the judicial district where a    
  violation or interference occurred or is about to occur, or where the   
  person charged with the violation, interference, impending violation,   
  impending interference, or failure to pay resides, is found, transacts  
  business, is licensed to do business, or is incorporated.               
     (b) Exception.--This section does not apply to the imposition of     
  civil penalties under section 424(b).                                   
           Subtitle C--Miscellaneous Provisions                                    

          SEC. 431. COOPERATION.                                                  

     (a) In General.--The Secretary may cooperate with other Federal      
  agencies or entities, States or political subdivisions of States,       
  national governments, local governments of other nations, domestic or   
  international organizations, domestic or international associations, and
  other persons to carry out this title.                                  
     (b) Responsibility.--The individual or entity cooperating with the   
  Secretary under subsection (a) shall be responsible for--               
       (1) the authority necessary to conduct the operations or take       
   measures on all land and properties within the foreign country or State,
   other than those owned or controlled by the United States; and          
     (2) other facilities and means as the Secretary determines necessary. 

     (c) Transfer of Biological Control Methods.--The Secretary may       
  transfer to a State, Federal agency, or other person biological control 
  methods using biological control organisms against plant pests or       
  noxious weeds.                                                          
     (d) Cooperation in Program Administration.--The Secretary may        
  cooperate with State authorities or other persons in the administration 
  of programs for the improvement of plants, plant products, and          
  biological control organisms.                                           
     (e) Phytosanitary Issues.--The Secretary shall ensure that           
  phytosanitary issues involving imports and exports are addressed based  
  on sound science and consistent with applicable international           
  agreements. To accomplish these goals, the Secretary may--              
       (1) conduct direct negotiations with plant health officials or other
   appropriate officials of other countries;                               
       (2) provide technical assistance, training, and guidance to any     
   country requesting such assistance in the development of agricultural   
   health protection systems and import/export systems; and                
       (3) maintain plant health and quarantine expertise in other         
   countries--                                                             
       (A) to facilitate the establishment of phytosanitary systems and the
   resolution of phytosanitary issues;                                     
       (B) to assist those countries with agricultural health protection   
   activities; and                                                         
       (C) to provide general liaison on agricultural health issues with   
   the plant health or other appropriate officials of the country.         
          SEC. 432. BUILDINGS, LAND, PEOPLE, CLAIMS, AND AGREEMENTS.              

     (a) In General.--To the extent necessary to carry out this title, the
  Secretary may acquire and maintain all real or personal property for    
  special purposes and employ any persons, make grants, and enter into any
  contracts, cooperative agreements, memoranda of understanding, or other 
  agreements.                                                             
    (b)  Tort Claims.--                                                   

       (1) In general.--Except as provided in paragraph (2), the Secretary 
   may pay tort claims in the manner authorized in the first paragraph of  
   section 2672 of title 28, United States Code, when the claims arise     
   outside the United States in connection with activities that are        
   authorized under this title.                                            
       (2) Requirements of claim.--A claim may not be allowed under this   
   subsection unless the claim is presented in writing to the Secretary    
   within 2 years after the date on which the claim accrues.               
          SEC. 433. REIMBURSABLE AGREEMENTS.                                      

     (a) Authority To Enter Into Agreements.--The Secretary may enter into
  reimbursable fee agreements with persons for preclearance of plants,    
  plant products, biological control organisms, and articles at locations 
  outside the United States for movement into the United States.          
     (b) Funds Collected for Preclearance.--Funds collected for           
  preclearance shall be credited to accounts which may be established by  
  the Secretary for this purpose and shall remain available until expended
  for the preclearance activities without fiscal year limitation.         
    (c)  Payment of Employees.--                                          

       (1) In general.--Notwithstanding any other law, the Secretary may   
   pay employees of the Department of Agriculture performing services      
   relating to imports into and exports from the United States, for all    
   overtime, night, or holiday work performed by them, at rates of pay     
   established by the Secretary.                                           
     (2)  Reimbursement of the secretary.--                                

       (A) In general.--The Secretary may require persons for whom the     
   services are performed to reimburse the Secretary for any sums of money 
   paid by the Secretary for the services.                                 

       (B) Use of funds.--All funds collected under this paragraph shall be
   credited to the account that incurs the costs and shall remain available
   until expended without fiscal year limitation.                          
    (d)  Late Payment Penalties.--                                        

       (1) Collection.--Upon failure to reimburse the Secretary in         
   accordance with this section, the Secretary may assess a late payment   
   penalty, and the overdue funds shall accrue interest, as required by    
   section 3717 of title 31, United States Code.                           
       (2) Use of funds.--Any late payment penalty and any accrued interest
   shall be credited to the account that incurs the costs and shall remain 
   available until expended without fiscal year limitation.                
          SEC. 434. REGULATIONS AND ORDERS.                                       

     The Secretary may issue such regulations and orders as the Secretary 
  considers necessary to carry out this title.                            
          SEC. 435. PROTECTION FOR MAIL HANDLERS.                                 

     This title shall not apply to any employee of the United States in   
  the performance of the duties of the employee in handling the mail.     
          SEC. 436. PREEMPTION.                                                   

     (a) Regulation of Foreign Commerce.--No State or political           
  subdivision of a State may regulate in foreign commerce any article,    
  means of conveyance, plant, biological control organism, plant pest,    
  noxious weed, or plant product in order--                               
     (1) to control a plant pest or noxious weed;                          

     (2) to eradicate a plant pest or noxious weed; or                     

       (3) prevent the introduction or dissemination of a biological       
   control organism, plant pest, or noxious weed.                          
    (b)  Regulation of Interstate Commerce.--                             

       (1) In general.--Except as provided in paragraph (2), no State or   
   political subdivision of a State may regulate the movement in interstate
   commerce of any article, means of conveyance, plant, biological control 
   organism, plant pest, noxious weed, or plant product in order to control
   a plant pest or noxious weed, eradicate a plant pest or noxious weed, or
   prevent the introduction or dissemination of a biological control       
   organism, plant pest, or noxious weed, if the Secretary has issued a    
   regulation or order to prevent the dissemination of the biological      
   control organism, plant pest, or noxious weed within the United States. 
     (2)  Exceptions.--                                                    

       (A) Regulations consistent with federal regulations.--A State or a  
   political subdivision of a State may impose prohibitions or restrictions
   upon the movement in interstate commerce of articles, means of          
   conveyance, plants, biological control organisms, plant pests, noxious  
   weeds, or plant products that are consistent with and do not exceed the 
   regulations or orders issued by the Secretary.                          
       (B) Special need.--A State or political subdivision of a State may  
   impose prohibitions or restrictions upon the movement in interstate     
   commerce of articles, means of conveyance, plants, plant products,      
   biological control organisms, plant pests, or noxious weeds that are in 
   addition to the prohibitions or restrictions imposed by the Secretary,  
   if the State or political subdivision of a State demonstrates to the    
   Secretary and the Secretary finds that there is a special need for      
   additional prohibitions or restrictions based on sound scientific data  
   or a thorough risk assessment.                                          
          SEC. 437. SEVERABILITY.                                                 

     If any provision of this title or application of any provision of    
  this title to any person or circumstances is held invalid, the remainder
  of this title and the application of the provision to other persons and 
  circumstances shall not be affected by the invalidity.                  
          SEC. 438. REPEAL OF SUPERSEDED LAWS.                                    

    (a)  Repeal.--The following provisions of law are repealed:           

       (1) The Act of August 20, 1912 (commonly known as the ``Plant       
   Quarantine Act'')(7 U.S.C. 151 164a, 167).                              
       (2) The Federal Plant Pest Act (7 U.S.C. 150aa et seq., 7 U.S.C.    
   147a note).                                                             
       (3) Subsections (a) through (e) of section 102 of the Department of 
   Agriculture Organic Act of 1944 (7 U.S.C. 147a).                        
       (4) The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 et seq.),   
   except the first section and section 15 of that Act (7 U.S.C. 2801 note;
   7 U.S.C. 2814).                                                         
       (5) The Act of January 31, 1942 (commonly known as the ``Mexican    
   Border Act'')(7 U.S.C. 149).                                            
       (6) The Joint Resolution of April 6, 1937 (commonly known as the    
   ``Insect Control Act'')(7 U.S.C. 148 et seq.).                          
     (7) The Halogeton Glomeratus Act (7 U.S.C. 1651 et seq.).             

     (8) The Golden Nematode Act (7 U.S.C. 150 et seq.).                   

       (9) Section 1773 of the Food Security Act of 1985 (Public Law 99    
   198; 7 U.S.C. 148f).                                                    
     (b) Emergency Transfer Authority Regarding Plant Pests.--The first   
  section of Public Law 97 46 (7 U.S.C. 147b) is amended--                
     (1) by striking ``plant pests or''; and                               

       (2) by striking ``section 102 of the Act of September 21, 1944, as  
   amended (7 U.S.C. 147a), and''.                                         
     (c) Effect on Regulations.--Regulations issued under the authority of
  a provision of law repealed by subsection (a) shall remain in effect    
  until such time as the Secretary issues a regulation under section 434  
  that supersedes the earlier regulation.                                 
           Subtitle D--Authorization of Appropriations                             

          SEC. 441. AUTHORIZATION OF APPROPRIATIONS.                              

     There are authorized to be appropriated such amounts as may be       
  necessary to carry out this title. Except as specifically authorized by 
  law, no part of the money appropriated under this section shall be used 
  to pay indemnities for property injured or destroyed by or at the       
  direction of the Secretary.                                             

          SEC. 442. TRANSFER AUTHORITY.                                           

     (a) Authority To Transfer Certain Funds.--In connection with an      
  emergency in which a plant pest or noxious weed threatens any segment of
  the agricultural production of the United States, the Secretary may     
  transfer from other appropriations or funds available to the agencies or
  corporations of the Department of Agriculture such amounts as the       
  Secretary considers necessary to be available in the emergency for the  
  arrest, control, eradication, and prevention of the spread of the plant 
  pest or noxious weed and for related expenses.                          
     (b) Availability.--Any funds transferred under this section shall    
  remain available for such purposes without fiscal year limitation.      

           TITLE V--INSPECTION ANIMALS                                             

          SEC. 501. CIVIL PENALTY.                                                

     (a) In General.--Any person that causes harm to, or interferes with, 
  an animal used for the purposes of official inspections by the          
  Department of Agriculture, may, after notice and opportunity for a      
  hearing on the record, be assessed a civil penalty by the Secretary of  
  Agriculture not to exceed $10,000.                                      
     (b) Factors in Determining Civil Penalty.--In determining the amount 
  of a civil penalty, the Secretary shall take into account the nature,   
  circumstance, extent, and gravity of the offense.                       
     (c) Settlement of Civil Penalties.--The Secretary may compromise,    
  modify, or remit, with or without conditions, any civil penalty that may
  be assessed under this section.                                         
    (d)  Finality of Orders.--                                            

       (1) In general.--The order of the Secretary assessing a civil       
   penalty shall be treated as a final order reviewable under chapter 158  
   of title 28, United States Code. The validity of the order of the       
   Secretary may not be reviewed in an action to collect the civil penalty.
       (2) Interest.--Any civil penalty not paid in full when due under an 
   order assessing the civil penalty shall thereafter accrue interest until
   paid at the rate of interest applicable to civil judgments of the courts
   of the United States.                                                   
          SEC. 502. SUBPOENA AUTHORITY.                                           

     (a) In General.--The Secretary shall have power to subpoena the      
  attendance and testimony of any witness, and the production of all      
  documentary evidence relating to the enforcement of section 501 or any  
  matter under investigation in connection with this title.               
     (b) Location of Production.--The attendance of any witness and the   
  production of documentary evidence may be required from any place in the
  United States at any designated place of hearing.                       
     (c) Enforcement of Subpoena.--In the case of disobedience to a       
  subpoena by any person, the Secretary may request the Attorney General  
  to invoke the aid of any court of the United States within the          
  jurisdiction in which the investigation is conducted, or where the      
  person resides, is found, transacts business, is licensed to do         
  business, or is incorporated, in requiring the attendance and testimony 
  of any witness and the production of documentary evidence. In case of a 
  refusal to obey a subpoena issued to any person, a court may order the  
  person to appear before the Secretary and give evidence concerning the  
  matter in question or to produce documentary evidence. Any failure to   
  obey the court's order may be punished by the court as a contempt of the
  court.                                                                  
     (d) Compensation.--Witnesses summoned by the Secretary shall be paid 
  the same fees and mileage that are paid to witnesses in courts of the   
  United States, and witnesses whose depositions are taken, and the       
  persons taking the depositions shall be entitled to the same fees that  
  are paid for similar services in the courts of the United States.       
     (e) Procedures.--The Secretary shall publish procedures for the      
  issuance of subpoenas under this section. Such procedures shall include 
  a requirement that subpoenas be reviewed for legal sufficiency and      
  signed by the Secretary. If the authority to sign a subpoena is         
  delegated, the agency receiving the delegation shall seek review for    
  legal sufficiency outside that agency.                                  
     (f) Scope of Subpoena.--Subpoenas for witnesses to attend court in   
  any judicial district or testify or produce evidence at an              
  administrative hearing in any judicial district in any action or        
  proceeding arising under section 501 may run to any other judicial      
  district.                                                               

    And the Senate agree to the same.                                     


    Larry Combest,                                                          

    Bill Barrett,                                                           

    John Boehner,                                                           

    Thomas W. Ewing,                                                        

    Richard Pombo,                                                          

    Charlie Stenholm,                                                       

    Gary Condit,                                                            

    Collin C. Peterson,                                                     

    Cal Dooley,                                                             

        Managers on the Part of the House.                                      


    Richard G. Lugar,                                                       

    Jesse Helms,                                                            

    Thad Cochran,                                                           

    Paul Coverdell,                                                         

    Pat Roberts,                                                            

    Tom Harkin,                                                             

    Patrick Leahy,                                                          

    Kent Conrad,                                                            

    Bob Kerrey,                                                             

        Managers on the Part of the Senate.                                     


                 JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       

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

       The House bill provides that this Act may be cited as the           
   ``Agricultural Risk Protection Act of 1999.'' (Section 1)               
       The Senate amendment provides that this Act may be cited as the     
   ``Risk Management for the 21st Century Act.'' (Section 1)               
       The Conference substitute adopts the House provision providing that 
   the Act be cited as the ``Agricultural Risk Protection Act of 2000.''   
   (Section 1)                                                             
                              TITLE I--CROP INSURANCE COVERAGE                    

                             SUBTITLE A--CROP INSURANCE COVERAGE                  

           Premium schedule for additional coverage                                

       The House bill amends section 508(d)(2) by striking subparagraphs   
   (B) and (C) and inserts a new subparagraph (B).                         
       Paragraph (B) requires that the premium for insurance coverage equal
   to or greater than 50/100 (or an equivalent coverage) be sufficient to  
   cover anticipated losses and a reasonable reserve and include operating 
   and administrative expenses, as determined by FCIC based on an          
   industry-wide percentage of the amount of premium used to define loss   
   ratio.                                                                  
       Amends section 508(e)(2) by striking paragraphs (B) and (C) that    
   provide the amount of premium to be paid by FCIC for coverage of less   
   than 65/100 but greater than 50/100, and for coverage greater than      
   65/100, respectively.                                                   
       Adds new paragraphs (B) through (G) that provide for the new amount 
   to be paid by FCIC for coverage levels ranging from 50 percent coverage 
   to 85 percent coverage.                                                 
       Provides that the amount to be paid by FCIC for each coverage level 
   (or equivalent coverage) is the sum of the percent of premium provided  
   below (plus an amount of administrative and operating expenses          
   determined under another section).                                      

   50 54% coverage = 67%                                                  

   55 59% coverage = 64%                                                  

   60 64% coverage = 64%                                                  

   65 69% coverage = 59%                                                  

   70 74% coverage = 59%                                                  

   75 79% coverage = 54%                                                  

   80 84% coverage = 40.6%                                                

   85% coverage = 30.6%                                                   


    (Producers may choose any price election up to 100 percent of the     
  price election, and coverage in 1 percent increments is authorized as   
  under current law.)                                                     
       Provides that each policy or plan of insurance contain a disclosure 
   of the portion of premium paid by FCIC.                                 
       The House bill amends section 508(d) by adding a new paragraph (3)  
   to authorize FCIC to provide performance-based discounts to producers   
   with good production or insurance experience.                           
       Authorizes a 20 percent premium discount for the 2000 crop year for 
   certain producers of specific crops that received a discounted price due
   to Scab or Vomitoxin damage.                                            
       The House bill amends section 508(c)(5) to provide that in the case 
   of a cost of production or similar plan of insurance, the expected      
   market price (price election) is the projected cost of producing the    
   crop. (Section 101, 106 and 107)                                        
       The Senate amendment amends section 508(d)(2) by striking           
   subparagraph (C) and inserting a new (C) and (D) establishing premium   
   amounts.                                                                
       Paragraph (C) requires that the premium for insurance coverage equal
   to or greater than 65/100 but less than 75/100 (or a comparable coverage
   for a plan of insurance not based on yield) be sufficient to cover      
   anticipated losses and a reasonable reserve and include operating and   
   administrative expenses, as determined by FCIC based on an industry-wide
   percentage of the amount of premium used to define loss ratio.          
       Paragraph (D) requires that the premium for insurance coverage equal
   to 75/100, 80/100, and 85/100 (or a comparable coverage for a plan of   
   insurance not based on yield) is established at a level as indicated    
   under paragraph (C).                                                    
       Amends section 508(e) by striking paragraph (1) providing that FCIC 
   pay a portion of premium and inserts a new paragraph relative to the    
   same.                                                                   
       Provides under paragraph (1)(A) that FCIC pay a portion of the      
   premium as established in section 508(e)(2).                            

       Amends section 508(e)(2) by striking paragraphs (B) and (C) that    
   provide for the amount of premium to be paid by FCIC for coverage of    
   less than 65/100 but greater than 50/100, and for coverage greater than 
   65/100, respectively.                                                   
       Adds new paragraphs (B) through (G) that provide for the new amount 
   to be paid by FCIC for coverage levels ranging from 50/100 to 85/100.   
       Provides that the amount to be paid by FCIC for each coverage level 
   (or comparable coverage for a plan of insurance not based on yield) is  
   the sum of the percent of premium provided below (plus an amount of     
   administrative and operating expenses determined under another section).

   50/100% coverage = 60%                                                 

   55/100% coverage = 45%                                                 

   60/100% coverage = 45%                                                 

   65/100% coverage = 50%                                                 

   70/100% coverage = 50%                                                 

   75/100% coverage = 55%                                                 

   80/100% coverage = 38%                                                 

   85/100% coverage = 28%                                                 


    (Producers must choose 100 percent price election to receive          
  correlating percentage of assistance, and availability of coverage is   
  limited to 5 percent increments).                                       
       Provides under new paragraph (H) that paragraphs (A) through (G) are
   applicable for the 2001 through 2004 fiscal years.                      
       Amends section 508(a) by striking paragraph (3) relative to         
   exclusions for coverage and inserting a new paragraph (3) relative to   
   the same.                                                               
       Provides conforming amendments amending section 508(e) by striking  
   paragraph (4) requiring individual and area crop insurance coverage and 
   by striking reference to such authority under section 508(g)(2)(D).     
       The Senate amendment amends section 508(c) by striking paragraph (5)
   relative to price levels and inserts a new paragraph relative to price  
   elections.                                                              
       Requires FCIC to establish or approve a price level, or expected    
   market price, for each commodity insured.                               
       Provides that the expected market price (1) not be less than the    
   projected market price of the crop; (2) may be based on the actual      
   market price of the crop at the time of harvest; (3) in the case of     
   revenue or similar policies be the actual market price of the crop; or  
   (4) in the case of cost of production or similar policies be the cost of
   producing the crop. (Section 103)                                       
       The Conference substitute adopts the Senate provision relative to   
   the expected market price with minor changes to clarify intent. The     
   Conference substitute adopts the House provisions relative to premium   
   amounts, performance-based discounts, payment schedule, and premium     
   payment disclosure with certain changes. Language with respect to       
   premium amounts and payment schedule has been modified to clarify       
   intent. The provision providing discounts for producers of crops damaged
   by scab is omitted. Premium assistance at the 75, 80, and 85 percent    
   coverage levels are increased to 55 percent, 48 percent, and 38 percent,
   respectively, of the amount of premium used to define loss ratio.       
   Current statutory authority to offer coverage in one percent increments 
   is temporarily suspended. (Section 101)                                 
           Premium schedule for other plans of insurance                           

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

       The House bill amends section 508(b) by striking paragraph (3)      
   relative to yield and loss basis and inserts a new paragraph (3)        
   relative to the same.                                                   
       Provides that, beginning with the 2000 crop year, FCIC must offer   
   producers a choice between the current CAT coverage and an alternative  
   CAT coverage that indemnifies the producer on an area yield and loss    
   basis, provides a higher combination of yield and price election, and   
   that FCIC determines is comparable to ``CAT.''                          

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

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

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

       The Conference substitute adopts the Senate provision relative to   
   assigned yields and the House provision relative to adjustments to      
   actual production history with minor changes to clarify intent. (Section
   105)                                                                    
           Review and adjustment in rating methodologies                           

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

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

       The House bill amends section 508(a) by adding a new paragraph (8)  
   relative to prevented planting.                                         
       Allows producers to opt-out of prevented planting coverage and      
   receive a reduction in premium equal to the cost of the prevented       
   planting coverage.                                                      
       Requires FCIC to provide an equal percentage level of prevented     
   planting coverage for each crop.                                        
       Limits prevented planting payments to producers prevented from      
   planting due to conditions generally affecting the area in which the    
   producer farms.                                                         
       Authorizes a producer who received a prevented planting payment to  
   plant a second crop other than the crop prevented from being planted on 
   the same acreage, except that the second crop is not eligible for NAP or
   crop insurance coverage.                                                
       Provides that a producer who elects to plant a second crop which is 
   not insurable or NAP eligible still qualifies for AMTA loans and        
   payments, CRP, and guaranteed and direct loans and other benefits under 
   the ConAct.                                                             
       Requires FCIC to assign a producer who receives a prevented planting
   payment and who elects to plant a second crop a yield for the prevented 
   crop for that year equal to 60 percent of the producer's actual         
   production history for purposes of future APH.                          
       Denies a prevented planting payment to a producer who plants a      
   second crop before the latest planting date for the crop prevented from 
   being planted.                                                          
       The House bill amends section 508(a) by adding a new paragraph (10) 
   relative to limitations on double insurance.                            
       Prohibits a policy or plan of insurance for more than one crop      
   planted on the same acreage in the same crop year unless the coverage   
   for the additional crop is ``CAT'' coverage.                            
       Provides an exception to the limitation on double insurance where   
   both crops are normally harvested within the same crop year on the same 
   acreage; there is an established practice of double-cropping in the area
   and the additional crop is customarily double-                          

                    cropped in the area with the first crop; a policy of insurance
          is offered for both crops; and the additional crop is planted on or     
          before the final or late planting date for that crop. (Sections 110 and 
          201)                                                                    
       The Senate amendment is substantially the same as the H.R. 2559     
   except the following additional provisions.                             
       Makes the prevented planting paragraph applicable for the 2001      
   through 2004 crop years.                                                
       Requires that changes made to prevented planting coverage be        
   reflected in the rates for coverage not later than the 2001 reinsurance 
   year. (Section 102)                                                     
       The Senate amendment amends section 508(m) (subsection (n)          
   designated as (m) under section 207 of Senate amendments.               
       Requires that FCIC may only offer insurance or reinsurance on 1 crop
   produced on specific acreage during a crop year, unless there is an     
   established practice of double-cropping in an area, the additional      
   insurance is offered to a crop that is customarily double-cropped in the
   area, and the producer has a history of double-cropping or the acreage  
   has historically been double-cropped. (Section 308)                     
       The Conference substitute provides limitations with respect to      
   double insurance and prevented planting coverage. The Conference        
   substitute establishes a new Section 508A for both double insurance and 
   prevented planting and provides the following definitions:              
       ``First Crop'' means the first crop of the first agricultural       
   commodity insured and planted for harvest, or prevented from being      
   planted, on specific acreage during a crop year.                        
       ``Second Crop'' means a second crop of the same or different        
   agricultural commodity following the first crop that is planted for     
   harvest on the same acreage as the first crop in the same crop year.    
   However, the term does not include a replanted crop.                    
       ``Replanted Crop'' means the second planting of the first crop on   
   the same acreage in the same crop year, if the replanting is required by
   the terms of the policy of insurance on the first crop.                 
       In the case of double insurance, the Conference substitute provides 
   a producer with two options if a first crop has a total or partial      
   insurable loss. If the producer chooses not to plant a second crop, then
   the producer is entitled to 100 percent of the indemnity payment for the
   first crop.                                                             
       If the producer plants a second crop, then the producer will receive
   an initial indemnity payment up to 35 percent of the total calculated   
   indemnity payment for the first crop. The Managers intend that the      
   Secretary adjust the percentage paid as necessary to prevent abuse of   
   the program. If the producer is not paid an indemnity on the second     
   crop, then the producer will receive an additional indemnity payment    
   equal to the total calculated indemnity on the first crop less the      
   initial indemnity payment. If an indemnity is paid with respect to the  
   second crop, then the producer is not entitled to receive the additional
   indemnity payment with respect to the first crop.                       
       In the case of a producer who chooses to plant a second crop, the   
   premium owed for insurance on the first crop will be reduced            
   commensurate with any reduction in indemnity payment received on the    
   first crop. If no indemnity is paid on the second crop, then the        
   producer owes the full premium for insurance on the first crop.         
       With regard to prevented planting, the Conference substitute        
   provides a producer with two options if a first crop is prevented from  
   being planted. If the producer chooses not to plant a second crop, then 
   the producer may collect 100 percent of the prevented planting guarantee
   for the first crop.                                                     
       If the producer plants a second crop, then the producer will receive
   up to 35 percent of the prevented planting guarantee for the first crop.
   The Managers intend that the Secretary adjust the percentage paid as    
   necessary to prevent abuse of the program. In addition, except for      
   producers who double crop in a double cropping area, a producer who     
   plants a second crop will be assigned a recorded yield of 60 percent of 
   the producer's actual production history for the crop on which a        
   prevented planting guarantee payment is received. This will be used in  
   determining a producer's actual production history for subsequent crop  
   years for the first crop. The Corporation may only pay the prevented    
   planting guarantee to a producer if the conditions that prevented the   
   first crop from being planted have also generally affected other        
   producers in the area. In addition, the Corporation may not make a      
   prevented planting guarantee payment for the first crop in the case of  
   any producer who plants a second crop before the latest planting date   
   for the first crop.                                                     
       In the case of a producer who chooses to plant a second crop, the   
   producer's premium for the first crop will be reduced commensurate with 
   any reduction in indemnity payment received on the first crop.          
       The Conference substitute provides that, notwithstanding the        
   restrictions placed on double insurance and prevented planting, a       
   producer will receive full indemnity payments and prevented planting    
   guarantees on 2 or more crops in a double cropping area. There must be  
   an established practice of planting 2 or more crops for harvest in the  
   same crop year in the area, as determined by the Corporation, and an    
   additional coverage policy or plan of insurance must be offered with    
   respect to the commodities planted on the same acreage in the same crop 
   year. In addition, the producer must have a history of planting 2 or    
   more crops in the same year; the applicable acreage must have           
   historically been planted to 2 or more crops in the same year; and the  
   second or subsequent crops must be customarily planted after the first  
   crop on the same acreage in the same year. The Managers intend that in  
   determining when an agricultural commodity is customarily double cropped
   in a double cropping area, that the Corporation consider the farming and
   irrigation practices applicable to the crops in the area. (Section 108) 
           Noninsured crop disaster assistance program                             

       The House bill amends section 196(i) of the AMTA in paragraph (1) by
   striking ``gross revenues'' wherever it appears and inserting ``gross   
   income'' and by striking paragraph (4) and adding a new paragraph (4).  
       Paragraph (4) provides that a person with a qualifying adjusted     
   gross income of greater than $2 million during the taxable year is      
   ineligible to receive NAP assistance.                                   
       The House bill also amends section 196(b) of the FAIR Act of 1996 to
   require that to be eligible for NAP, producers must provide annually to 
   the Secretary, acting through the agency, records of crop acreage,      
   acreage yields, and production for each eligible crop. (Sections 111 and
   205)                                                                    

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

           Improving program compliance and integrity                              

       The House bill amends section 506(q) by designating paragraphs (1)  
   and (2) as (2) and (3), creating paragraph (1) relative to purposes, and
   creating new paragraphs (4) through (7) relative to certain compliance  
   requirements.                                                           
       Paragraph (4) requires the Secretary to develop and implement a     
   coordinated plan for FCIC and FSA to reconcile information received from
   producers and, beginning with the 2000 crop year, requires FCIC and FSA 
   to annually conduct such reconciliation to identify and address any     
   discrepancies.                                                          
       Paragraph (5) requires the Secretary to develop and implement a     
   coordinated plan for FSA to assist FCIC in ongoing monitoring of FCIA   
   programs, including conducting fact findings relative to allegations of 
   fraud, waste or abuse at the request of FCIC or on its own initiative   
   after consultation with FCIC; reporting fraud, waste, abuse, and program
   vulnerabilities to FCIC; assisting FCIC in auditing a statistically     
   appropriate number of claims. Also provides that the Secretary ensure   
   that FSA personnel are appropriately trained and, at minimum, receive   
   the same training and testing as loss adjusters.                        
       Requires maintenance of effort on the part of approved insurance    
   providers in conducting audits of claims, requires FCIC to respond      
   within 90 days of receiving notice by approved insurance providers of   
   intentional violations, and requires a coordinated response to          
   violations by FCIC and approved insurance providers.                    
       Paragraph (6) requires the Secretary to establish a mechanism under 
   which state FSA committees are consulted concerning policies and plans  
   of insurance offered in the state.                                      
       Paragraph (7) requires the Secretary to submit an annual report to  
   the House and Senate Agriculture Committees containing findings relative
   to the efforts undertaken in paragraphs (4) and (5), identifying        
   specific incidences of fraud, waste, and abuse along with actions taken 
   to eliminate the same.                                                  
       The House bill amends section 506(n) by striking ``penalties'' where
   it occurs and inserting ``sanctions'' and redesignating paragraph (2) as
   paragraph (3).                                                          
       Strikes paragraph (1) relative to false information and inserts new 
   paragraph (1) relating to the same.                                     
       Provides that a producer, agent, loss, adjuster, approved insurance 
   provider, or other person that intentionally provides false or          
   inaccurate information to FCIC or to an approved insurance provider with
   respect to a policy may, after notice and opportunity for a hearing, be 
   subject to sanctions.                                                   
       Provides that sanctions include a civil fine not to exceed the      
   greater of the amount of the pecuniary gain obtained by the violator or 
   $10,000; debarment of a producer from                                   

                     specified farm programs for up to 5 years; and debarment of  
          other persons from benefits under the FCIA for up to 5 years. Also      
          provides that FCIC may require the producer to forfeit any premium owed 
          notwithstanding denial of a claim or collection of overpayment if the   
          violation is material.                                                  
    Requires sanctions be disclosed on each policy. (Sections 202 and 203) 

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

       The House bill amends section 502 by adding a new subsection (c)    
   relative to the protection of confidential information.                 
       Prohibits the Secretary, any other officer, employee, or agency of  
   USDA, an approved insurance provider and its employees and contractors, 
   and any other person from disclosing producer-derived information to the
   public unless it is transformed into a statistical or aggregate form    
   that does not reveal the producer's identity.                           
       Provides for penalties consistent with section 1770(c) of the Food  
   Security Act of 1985, including fines up to $10,000 and or imprisonment 
   for up to 1 year. (Section 204)                                         
    The Senate amendment has no comparable provision.                      

       The Conference substitute adopts the House provision protecting     
   producer confidentiality with a minor change to allow producers to      
   consent to the release of                                               

                     otherwise protected information as long as program           
          eligibility is not conditioned upon the release. (Section 122)          
           Good farming practices                                                  

       The House bill amends section 508(a)(3)(C) relative to losses       
   excluded from coverage by clarifying that scientifically sound          
   sustainable and organic farming practices are good farming practices.   
   (Section 309)                                                           
    The Senate amendment is substantially the same as the House bill.      

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

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

           Research and development                                                

       The House bill amends section 508(h) by adding a new paragraph (6)  
   relative to reimbursement of research, development, and maintenance     
   costs.                                                                  
       Requires FCIC to reimburse an applicant for research, development,  
   and maintenance costs directly related to a policy submitted to and     
   approved by the Board and, if applicable, sold to producers.            
       Authorizes payments to applicants beginning with fiscal year 2001   
   and limits reimbursement for maintenance to no more than 4 reinsurance  
   years from approval, after which FCIC assumes maintenance of successful 
   policies.                                                               
       Provides that payments under this paragraph be considered payment in
   full for research and development and any property rights.              
       Requires FCIC to determine the amount of reimbursement based upon   
   the complexity of the policy or material and the size of the area to be 
   served. Requires FCIC to issue final regulations not later than October 
   1, 2000.                                                                
       The House bill also authorizes $55 million for each fiscal year for 
   reimbursement and direct contracting for research and development of new
   policies.                                                               
    The House bill amends section 508(m) by adding a new paragraph (4).    

       Paragraph (4) requires FCIC to make full use of the reimbursement   
   provisions of section 508(h) to encourage and promote private research  
   and development of new policies and plans of insurance.                 
       Provides that where FCIC determines that a crop, including a        
   specialty crop, is not adequately served by crop insurance, FCIC may    
   enter into contracts directly with any person or entity with experience 
   in crop insurance or farm or ranch risk management, including           
   universities, approved insurance providers, and trade and 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 amends section 516(c)(1) of the FCIA by        
   striking paragraph (1) and inserting a new paragraph (1) providing that,
   along with premium income and amounts under section 516(a)(2), sanctions
   fees are to be deposited in this fund.                                  
       Amends 516(b)(2)(a) increasing the authorization of mandatory funds 
   to be used for research and development. (Sections 207 and 303)         
       The Conference substitute adopts a funding section that incorporates
   funding authorized under various sections of the House bill and the     
   Senate amendment, including funding to cover costs associated with the  
   consideration and implementation of policies. (Section 147)             
           Standard Reinsurance Agreement                                          

       The House bill authorizes FCIC to renegotiate the SRA effective for 
   the 2002 reinsurance year. (Section 310(b))                             
    The Senate amendment has no comparable provision.                      

       The Conference substitute adopts the House provision relative to the
   Standard Reinsurance Agreement with changes to allow 1 re-negotiation   
   during the 2001 through 2005 reinsurance years. (Section 148)           
                                  SUBTITLE E--MISCELLANEOUS                       

           Limitation on Revenue Coverage for Potatoes                             

       The Senate amendment restates the exclusions in current law in      
   subparagraph (A) and adds another exclusion for coverage under new      
   subparagraph (B) prohibiting the coverage of losses due to a decline in 
   revenue from potato production, except as provided under a whole farm   
   plan of insurance.                                                      
    The House bill has no comparable provision.                            

       The Conference substitute adopts the Senate provision relative to   
   limitations on revenue coverage for potatoes. (Section 161)             
           Crop Insurance Coverage for Cotton and Rice                             

       The Senate amendment requires that, beginning with the 2001 rice    
   crop, FCIC offer plans of insurance, including prevented planting and   
   replanting coverage, to cover the loss of rice due to the failure of    
   irrigation water supplies from drought and saltwater intrusion. (Section
   107)                                                                    
    The House bill has no comparable provision.                            

       The Conference substitute adopts the Senate provision relative to   
   crop insurance coverage for rice with a change to include extra long    
   staple cotton and upland cotton. (Section 162)                          
           Indemnity Payments for Certain Producers                                

       The Senate amendment requires that notwithstanding section 508(c)(5)
   relative to price elections, a producer of durum wheat that purchased a 
   1999 CRC wheat policy by the sales closing date shall receive an        
   indemnity payment in accordance with the policy. Requires that the base 
   and harvest price under the policy be in accord with the Commodity      
   Exchange Endorsement for wheat published by FCIC on July 14, 1998, 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 underserved.                                   
       Defines applicable crop to mean the 2002 through 2004 crops, and    
   applicable year to mean the year in which the crop is produced on the   
   farm and the producer elects to receive a risk management payment or    
   crop insurance premium subsidy. Also defines a regulated exchange as a  
   board of trade designated as a contract market.                         
       Requires FCIC to offer either to make risk management payments or to
   provide crop insurance premium subsidies for each of the 2002 through   
   2004 crops.                                                             
       Requires each producer to make an election between the two options  
   before the sales closing date for the applicable crop.                  
       Requires FCIC to make a risk management payment for an applicable   
   crop to a producer electing to receive such a payment providing the     
   producer engages in at least 1 prescribed risk management practice from 
   at least 2 of 5 categories. The categories include, (1) the Crop        
   Insurance Category (buying unsubsidized or private coverage), (2) the   
   Marketing Risk Category, (3) the Financial Risk Category, (4) the Farm  
   Resources Risk Category, or (5) the Other Category (as prescribed by the
   Secretary).                                                             
       Requires the Secretary to determine the amount of any risk          
   management payment taking into consideration the expenditure by the     
   producer on the risk management activities in which the producer        
   engaged.                                                                
       Provides that no risk management payment may be made in an amount   
   greater than equal to the national average of the previous year's       
   liability for all ``CAT'' policies.                                     
       Authorizes $500 million for fiscal years 2002 through 2004 from the 
   account established in section 516(a)(2)(C) of the FCIA, except that    
   payments in any one fiscal year may not exceed $200 million. (Sections  
   204 and 206 of the Senate amendment reduce this amount to fund options  
   pilot programs and education and research.)                             
       Requires producers receiving a risk management payment to certify   
   compliance with qualifying risk management practices and associated     
   costs for the applicable year.                                          
    Authorizes FCIC to conduct random compliance audits.                   

       Requires the producer to refund a risk management payment where the 
   producer fails to certify compliance or fails to comply with qualifying 
   risk management practices and subjects the producer to possible         
   debarment for up to 5 years from farm programs cited in section         
   506(n)(3)(B) of the FCIA.                                               
       Provides that any assignment of benefits be carried out consistent  
   with section 8(g) of the Soil Conservation and Domestic Allotment Act,  
   and requires the producer give notice of such assignment where FCIC     
   requires.                                                               
       Requires FCIC to provide for the fair and equitable sharing of      
   benefits among all producers at risk in the production of a crop.       
       Amends section 516(a) by striking paragraph (1) relative to         
   discretionary expenses and inserts a new paragraph (1) relating to the  
   same, providing that there are authorized to be appropriated for fiscal 
   year 1999 and each subsequent fiscal year such sums as are necessary to 
   cover the salaries and expenses of the FCIC, and the expenses of        
   approved insurance providers in carrying out section 522(c).            
       Amends section 516(a) relative to mandatory expenses by adding at   
   the end authorization for risk management payments in an amount not to  
   exceed $500 million for fiscal years 2001 through 2004, with not more   
   than $200 million for any 1 fiscal year. (Section 203)                  
    The House bill has no comparable provision.                            

    The Conference substitute deletes the Senate provision.                

           Fees for use of new policies and plans of insurance                     

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


           Federal Crop Insurance Improvement Commission                           

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

    The Conference substitute deletes the Senate provision.                

           Highly erodible land and wetland conservation                           

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

    The Conference substitute deletes the Senate provision.                

           Projected loss ratio                                                    

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

    The Conference substitute deletes the Senate provision.                

           Improved risk management education                                      

       The Senate amendment amends Title IV of the Agricultural Research,  
   Extension, and Education Reform Act of 1998 by adding at the end section
   409 relative to improved risk management education for agricultural     
   producers and provides definitions.                                     
       Requires the Secretary to carry out a program to improve the risk   
   management skills of agricultural producers, to help producers          
   understand the financial health of their operations, marketing          
   alternatives available, and relevant legal, governmental, environmental,
   and human resource issue.                                               
       Requires the Secretary to establish Risk Management Education       
   Coordinating Centers in each of the 5 regions in the country.           
       Requires the Secretary to locate a region's center at risk          
   management coordinating office of the Cooperatve State Research,        
   Education, and Extension Service in existence at a land grant college or
   an appropriate alternative land grant college in the region. Requires   
   the land grant college to demonstrate the capacity to carry out program 
   priorities, funding distribution, and reporting requirements.           
       Requires each center to establish a coordinating council consisting 
   of 5 members, including public and private organizations, producers, and
   a representative of the regional RMA office.                            
       Requires centers to coordinate the offering of intensive risk       
   management instructional activities for professionals who work with     
   producers, the provision of educational programs for producers, and the 
   dissemination of risk management education materials.                   
       Requires centers to make use of emerging risk management information
   and materials, after an evaluation of suitability is conducted with the 
   assistance of land grant college personnel and others.                  
       Requires each center to reserve a portion of funds provided under   
   the section to make special grants to land grant colleges and private   
   entities in the region to conduct such activities, and requires the     
   reservation of funds to award competitive grants to public and private  
   entities for such purposes.                                             
       Requires that the National Agriculture Risk Education Library serve 
   as the central agency for coordination and distribution of education    
   material and provide for the electronic delivery of the same.           
       Authorizes to be appropriated $30 million for fiscal year 2001 and  
   each subsequent fiscal year, requiring 2.5 percent of funds available be
   distributed to the Library with the residual funding reserved for the   
   centers.                                                                
       Requires the land grant colleges hosting a regional center to       
   administer the funds for the region. Requires that each center be       
   located in an existing facility and prohibits the use of funds for new  
   construction.                                                           

       Requires the Secretary, acting through the CSREES, to evaluate each 
   center. (Section 401)                                                   
    The House bill has no comparable provision.                            

    The Conference substitute deletes the Senate provision.                

           Termination of authority                                                

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

    The Conference substitute deletes the Senate provision.                

                             TITLE II--AGRICULTURAL ASSISTANCE                    

       The Conference substitute includes a new title (Title II) providing 
   agricultural assistance to producers of the 2000 crops and other        
   assistance:                                                             
                             SUBTITLE A--MARKET LOSS ASSISTANCE                   

           Sec. 201. Market loss assistance                                        

       To ensure timely delivery of market loss payments to eligible       
   producers and owners, the Managers expect the Secretary to make the     
   payments available under the same terms and conditions as the 2000 AMTA 
   contract payments. Market loss payments made under authority of this    
   legislation shall not be treated as a contract (AMTA) payment for       
   purposes of section 115 of Title I of the Federal Agriculture           
   Improvement and Reform Act of 1996, or section 1001, paragraphs (1)     
   through (4) of the Food Security Act of 1985. Further, it should not be 
   necessary to require eligible owners and operators to file new contracts
   or redesignate shares in order to receive market loss payments.         
           Sec. 202. Oilseeds                                                      

       The Managers expect the Secretary to deliver oilseed economic       
   assistance payments to producers in the same manner used to deliver the 
   1999 oilseed payments authorized under Title VIII, section 803 of P.L.  
   106 354. The Managers note that the Department has taken over seven     
   months to make payments to eligible producers. Such delays in delivering
   crop year 2000 payments are unacceptable.                               
       The Managers expect that sesame seed will be eligible for assistance
   under this section. The Managers note that the Federal Agricultural     
   Improvement Act of 1996 makes other oilseeds eligible for assistance    
   under section 131 of the FAIR Act. The Managers direct the Secretary,   
   using his authority under section 102 of the FAIR Act and any other     
   applicable authorities, to ensure that sesame seed producers may        
   participate in this program under section 202.                          
           Sec. 203. Specialty crops                                               

       This section provides for infrastructure improvements for growers of
   specialty crops. Specifically, the section provides $59.45 million for  
   the PACA reserve fund and the inspection service reserve fund to        
   maintain the cost of licensing and inspection fees at the current level.
   The section also provides $11.55 million to make improvements to the    
   system used for inspecting fruits and vegetables, including the program 
   and facilities used to train inspectors; the technological tools used by
   inspectors; expanding digital imaging technology capabilities; and      
   improving office space and grading tables.                              
       This section also provides $200 million to be used by the Secretary 
   to purchase specialty crops that experienced low prices in the 1998 and 
   1999 crop years, including apples, black-eyed peas, cherries, citrus,   
   cranberries, onions, melons, peaches, potatoes and others. The Managers 
   expect the Secretary to ensure that, as provided in subsection (d) of   
   this section, purchases with this funding are in addition to other      
   purchases made by the Secretary under other authorities. To the extent  
   practicable, the Managers expect 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 Managers expect that  
   grants awarded under this section will facilitate the opening of new    
   markets for value-added products. It is not the intention of the        
   Managers that grants made under this section will interfere with        
   existing markets or be used to fund construction, acquisition, rental,  
   leasing, or any other means of obtaining physical capacity to produce or
   process agricultural commodities.                                       
                               SUBTITLE E--NUTRITION PROGRAMS                     

                      Sec. 241. Calculation of minimum amount of commodities for   
           School Lunch requirements                                               
       Section 241 directs the Secretary to purchase additional food       
   commodities in fiscal years 2000 and 2001 for distribution to schools   
   participating in the School Lunch program.                              
           Sec. 242. School Lunch data                                             

       Section 242 provides that information obtained for determining      
   eligibility for free and reduced-price school meals in the School Lunch 
   program may be shared to aid in the enrollment of lower-income children 
   in the State Children's Health Insurance Program (SCHIP). This section  
   also authorizes a pilot project using local agencies operating the      
   Special Supplemental Nutrition Program for Women, Infants, and Children 
   (the WIC program) to help enroll children in the SCHIP.                 
           Sec. 243. Child and Adult Care Food Program integrity                   

       Section 243 reforms the Child and Adult Care Food Program (CACFP) to
   address problems of fraud, abuse, and deficient management identified in
   investigations by the General Accounting Office and the Agriculture     
   Department's Office of Inspector General. This section also expands the 
   availability of Federal nutrition assistance for after-school programs  
   and authorizes an additional State to increase participation in the     
   CACFP by for-profit child care organizations serving lower-income       
   children.                                                               
           Sec. 244. Adjustments to WIC Program                                    

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

                      Sec. 251. Authority to provide loan in connection with boll  
           weevil eradication                                                      
       Section 251 requires the Secretary using the Commodity Credit       
   Corporation to make a loan to the Texas Boll Weevil Eradication         
   Foundation, Inc., in the amount of $10,000,000. This loan is to enable  
   the Foundation to retire debt associated with boll weevil eradication   
   zones that have ended their participation, in whole or in part, in the  
   boll weevil eradication program.                                        
       Repayment for the loan will begin on January 1 of the year following
   the first year that a boll weevil eradication zone, or any part of the  
   zone, responsible for the debt retired using the loan resumes           
   participation in the boll weevil eradication program.                   
       The cost of the credit subsidy of this loan will be the amount      
   necessary to provide the full $10,000,000 loan to the Foundation. The   
   Managers expect that the credit subsidy necessary to implement the total
   $10,000,000 loan will be approximately 51%. However, the Managers expect
   USDA to use whatever amount of subsidy is necessary to make the         
   $10,000,000 loan.                                                       
       The Managers expect that this loan to the Texas Boll Weevil         
   Eradication Foundation, Inc., will retire its debt to Farm Credit System
   institutions associated 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 manager expects the Secretary
   to notify all applicable Agencies that no agency or agency employee     
   shall take any action to solicit office space or renovate current leased
   space for the purpose of accommodating collocated agencies or take any  
   other action to collocate state offices from the date of enactment of   
   this Act through June 1, 2001. The Managers expect those state agencies 
   that are scheduled for collocation and located in the same county on the
   date of enactment to continue to pursue efforts to collocate. The       
   Managers expect the report to be inclusive of all factors used in the   
   selection of the site, including the methodology used in the site       
   selection.                                                              
           Sec. 255. Farm operating loan eligibility                               

       This section affects the Secretary of Agriculture's administration  
   of the loan eligibility limitations of sections 311 and 319 of the      
   Consolidated Farm and Rural Development Act. Current law makes borrowers
   who have had a number of direct or guaranteed operating loans from the  
   Farm Service Agency (FSA) ineligible for additional seasonal operating  
   loans.                                                                  
       The Managers understand that previous policy was intent on limiting 
   loans to long-time borrowers in an effort to graduate them to other     
   sources of credit. The intent was to free up credit resources for       
   beginning, socially-disadvantaged and minority farmers and ranchers     
   during a period when fewer appropriations were being made for federal   
   farm loan programs. However, because of the recent downturn in the farm 
   economy caused by low prices, the Managers are concerned that some      
   farmers may be turned away from the FSA. The only reason that otherwise 
   efficient farmers cannot get credit from FSA is because of an arbitrary 
   term limit in the law. While the Managers believe this change is needed 
   at this time, the amendment extends only through December 31, 2002,     
   which should provide ample time for the Congress to fully reexamine this
   matter in the context of the next farm bill.                            
           Sec. 256. Water systems for rural and Native villages in Alaska         

       This section amends section 306D of the Consolidated Farm and Rural 
   Development Act by increasing the authorization of appropriations from  
   $20,000,000 to $30,000,000 for water and wastewater systems for rural   
   and native villages in Alaska. Also authorizes a transfer of up to two  
   percent of the funds for training and technical assistance programs that
   are related to the operation and management of the systems.             
           Sec. 257. Crop and pasture flood compensation program                   

       Directs the Secretary to compensate producers for the loss of       
   cropland or pastureland due to unusual flooding. This assistance is     
   targeted to producers who are still experiencing flooding, but have not 
   been compensated for loses between time of enactment and the Flood      
   Compensation Program authorized by the 1998 omnibus appropriations bill,
   using that program's framework and base year. The section sets a        
   specific framework on the compensation. Acres on which crops were       
   planted but failed are not eligible. A payment limitation of $40,000 is 
   included.                                                               
       The Managers encourage the Department to take all necessary         
   administrative actions to ensure the availability of no less than 4     
   million acres for partial field conservation buffer enrollments within  
   the existing Conservation Reserve Program. Also, the Committee          
   encourages the Department to extend stewardship incentive payments to   
   contour grass strips and cross wind trap strips, as well as any         
   additional conservation practices that may be made eligible for the     
   continuous sign-up or conservation reserve enhancement programs.        

       This section also includes a technical correction to the fiscal year
   2000 agricultural appropriations act to specifically include Lake       
   County, Oregon as being eligible for assistance that was made available 
   under that act. The Managers are aware that producers in Lake County    
   have faced a similar disastrous situation, but were inadvertently left  
   out of the fiscal year 2000 agriculture appropriations section. The     
   Managers are also aware that, under the fiscal year 2000 agricultural   
   appropriations act, there are still funds available in this fiscal year 
   to assist ranchers in Lake County, and this section provides the        
   necessary authority for the Secretary of Agriculture to move forward    
   with that assistance. The Managers expect the Secretary to provide that 
   assistance as soon as possible.                                         
           Sec. 258. Flood mitigation near Pierre, South Dakota                    

       This section requires the Army Corps of Engineers to, as soon as    
   practicable after enactment, begin acquiring land and property from     
   willing sellers; relocate individuals located on the land, improve      
   infrastructure, and take other necessary actions with respect to such   
   property.                                                               
       This section also conditions winter releases of the Oahe Powerplant 
   on the Secretary of the Army completing an amendment to his economic    
   analysis and identifying mitigation benefits with respect to existing   
   ground water flooding.                                                  
           Sec. 259. Restoration of eligibility for crop loss assistance           

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

           Sec. 261. Funding                                                       

    Includes the funding amount for various sections in the bill.          

           Sec. 262. Obligation period                                             

       Provides that the Commodity Credit Corporation shall obligate and   
   spend the funds made available under section 261(a)(1) (funding for     
   school lunch commodities) only during fiscal year 2000 and funds made   
   available to fund other provisions of the bill shall be obligated and   
   spent only during fiscal year 2001.                                     
           Sec. 263. Regulations                                                   

       Directs the Secretary and the Commodity Credit Corporation,         
   whichever is appropriate, to promulgate regulations to implement Title  
   II of the legislation without regard to notice and comment rulemaking.  
       The Managers have provided the Secretary relief from several        
   statutory provisions relating to the promulgation of regulations needed 
   to carry out title II. This language is the same as provisions passed by
   Congress in prior legislation for farmers. The Managers are particularly
   troubled by the fact that, even with these waivers, the Department has  
   been unable to implement programs in a timely manner in prior years,    
   most notably the oilseed assistance that was provided by Congress in    
   October of 1999 but has yet to be distributed. In order to assist       
   Congress in future deliberations the Managers expect the Inspector      
   General to complete a report for submission to both Agriculture         
   Committees with 60 days of enactment of this Act addressing the reasons 
   for the inability of the Department to implement programs in a timely   
   manner.                                                                 
           Sec. 264. Paygo adjustment                                              

       Prohibits the Director of the Office of Management and Budget from  
   making any estimates of changes in direct spending outlays and receipts 
   in fiscal year 2000 resulting from enactment of Title II of the         
   legislation.                                                            
           Sec. 265. Commodity Credit Corporation reimbursement                    

       This section specifically directs the Secretary of the Treasury to  
   reimburse the Commodity Credit Corporation for net realized losses      
   sustained, but not previously reimbursed, under this title.             
                TITLE III--THE BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000       

       The Conference substitute adopts a new title which authorizes       
   research to promote the conversion of biomass into biobased industrial  
   products:                                                               
           Section 301. Short title                                                

    The Biomass Research and Development Act.                              

           Section 302. Findings                                                   

       States the need for a focused, integrated and innovation-driven     
   research effort to develop technologies for the production of biobased  
   industrial products.                                                    
           Section 303. Definitions                                                

       Defines the terms Advisory Committee, Biobased Industrial Product,  
   Biomass, Board, Initiative, Institution of Higher Education, National   
   Laboratory, Point of Contact, Processing, and Research and Development. 
                      Section 304. Cooperation and coordination in biomass research
           and development                                                         
       Requires that the Secretaries of Agriculture and Energy shall       
   cooperate and coordinate policies and procedures that promote biomass   
   research and development leading to the production of biobased          
   industrial products. Specifies the purpose and areas for coordination.  
           Section 305. Biomass Research and Development Board                     


       Establishes a board to coordinate programs, to maximize benefits and
   to bring coherence to strategic planning within and among departments   
   and agencies of the Federal Government to promote the use of biobased   
   industrial products. The Board shall be comprised of a minimum of six   
   members. The Board shall be cochaired by the points of contact appointed
   by the Secretaries of Agriculture and Energy by and with the advice and 
   consent of the Senate.                                                  
                      Section 306. Biomass Research and Development Technical      
           Advisory Committee                                                      
       Establishes an advisory committee to advise the Secretaries of      
   Agriculture USDA and the Department of Energy DOE and the Biomass       
   Research and Development Board, to facilitate consultations and         
   partnerships, and to evaluate and perform strategic planning for the    
   Biomass Research and Development Initiative. The Committee shall be     
   comprised of a minimum of ten members, all appointed by the points of   
   contact. The Committee will meet at least quarterly. Lengths of terms   
   are specified.                                                          
           Section 307. Biomass Research and Development Initiative                

       Provides that the Secretaries of Agriculture and Energy, in         
   consultation with the Board, shall establish a Biomass Research and     
   Development Initiative under which competitively awarded grants,        
   contracts and financial assistance are provided to, or entered into,    
   with eligible entities to carry out research and development of low cost
   and sustainable biobased industrial products. Provides that funds       
   appropriated for biomass research and development under the general     
   authority of the Secretary of Energy to conduct research and development
   programs may be used to carry out this title. Also authorizes $         
   49,000,000 within USDA for each of fiscal years 2000 through 2005 to    
   carry out this title.                                                   
           Section 308. Administrative support and funds                           

       Provides the Secretaries of Agriculture and Energy, and other       
   agencies, the authority to give administrative support and funds to the 
   Board and Advisory Committee if needed.                                 
           Section 309. Reports                                                    

       Requires that an initial report be jointly submitted by the         
   Secretaries of Agriculture and Energy within 180 days of enactment of   
   the Act and that an annual report be submitted to Congress for each     
   fiscal year for which funds are made available.                         
           Section 310. Termination of authority                                   

    Authority granted by this title shall terminate on December 31, 2005.  

                                 TITLE IV--PLANT PROTECTION                       

       The Conference substitute adopts a new provision which consolidates 
   and enhances the authority of the Secretary to regulate in interstate   
   and foreign commerce, the movement of any plant, plant product,         
   biological control organism, or noxious weed if the Secretary determines
   the action is necessary to prevent the introduction or dissemination of 
   a plant pest or noxious weed:                                           
           Sec. 401. Short title and table of contents                             

       The short title of this Act is the ``Plant Protection Act.'' This   
   section also contains the table of contents for the Act.                
           Sec. 402. Findings                                                      

           Sec. 403. Definitions                                                   

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

       Sec. 403(14), ``plant pest,'' has been expanded to include all      
   vertebrate and invertebrate animals, except humans.                     
    Sec. 403(18), ``systems approach,'' is new.                            

                                SUBTITLE A--PLANT PROTECTION                      

           Sec. 411. Regulation of movement of plant pests                         

       Prohibits the importation, entry, exportation, or movement in       
   interstate commerce, mailing, or delivery (from any post office or by   
   any mail carrier) of any plant pest unless the movement is in accordance
   with regulations issued by the Secretary. All processes used to develop 
   such regulations will be transparent and accessible and the regulations 
   will be based on sound science. This provision does not authorize the   
   opening of any mail unless such action is authorized under postal laws. 
   This section would authorize the Secretary to issue regulations that    
   allow the movement of a plant pest in interstate commerce without       
   restriction. Also provides for a petition process to add or remove plant
   pests from regulation.                                                  
           Sec. 412. Restrictions on movement                                      

       Authorizes the Secretary to prohibit or restrict the importation,   
   entry, exportation, or movement in interstate commerce of any plant,    
   plant product, biological control organism, noxious weed, article, or   
   mean of conveyance if the Secretary determines the action is necessary  
   to prevent the introduction or dissemination of a plant pest or noxious 
   weed. Within 1 year after the Act is enacted, the Secretary shall       
   publish for public comment a notice describing the processes governing  
   such import requests. Requires the Secretary to conduct a study of the  
   effectiveness of using systems approaches to guard against the          
   introduction into the United States of plant pathogens associated with  
   proposals for imported plants or plant products. Not later than 2 years 
   after the Act is enacted, the Secretary shall report to Congress on the 
   results of this study. Authorizes 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.                                                         
     Larry Combest ,                                                        

     Bill Barrett ,                                                         

     John Boehner ,                                                         

     Thomas W. Ewing ,                                                      

     Richard Pombo ,                                                        

     Charlie Stenholm ,                                                     

     Gary Condit ,                                                          

     Collin C. Peterson ,                                                   

     Cal Dooley ,                                                           

        Managers on the Part of the House.                                      


     Richard G. Lugar ,                                                     

     Jesse Helms ,                                                          

     Thad Cochran ,                                                         

     Paul Coverdell ,                                                       

     Pat Roberts ,                                                          

     Tom Harkin ,                                                           

     Patrick Leahy ,                                                        

     Kent Conrad ,                                                          

     Bob Kerrey ,                                                           

        Managers on the Part of the Senate.