H.R.4217
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-four
An Act
To reform the Federal crop insurance program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Federal Crop Insurance
Reform and Department of Agriculture Reorganization Act of 1994'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--FEDERAL CROP INSURANCE REFORM
Sec. 101. Short title; references.
Sec. 102. Definitions.
Sec. 103. Members of Board of Directors of Corporation.
Sec. 104. General powers.
Sec. 105. Personnel.
Sec. 106. Crop insurance.
Sec. 107. Crop insurance yield coverage.
Sec. 108. Preemption.
Sec. 109. Advisory Committee.
Sec. 110. Funding.
Sec. 111. Noninsured crop disaster assistance.
Sec. 112. Payment and income limitations.
Sec. 113. Producer eligibility.
Sec. 114. Ineligibility for catastrophic risk and noninsured assistance
payments.
Sec. 115. Elimination of gender references.
Sec. 116. Prevented planting.
Sec. 117. Report on improving dissemination of crop insurance information.
Sec. 118. Crop insurance provider evaluation.
Sec. 119. Conforming amendments.
Sec. 120. Effective date.
TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Subtitle A--General Reorganization Authorities
Sec. 211. Transfer of Department functions to Secretary of Agriculture.
Sec. 212. Authority of Secretary to delegate transferred functions.
Sec. 213. Reductions in number of department personnel.
Sec. 214. Consolidation of headquarters offices.
Sec. 215. Combination of field offices.
Sec. 216. Improvement of information sharing.
Sec. 217. Reports by the Secretary.
Sec. 218. Assistant Secretaries of Agriculture.
Sec. 219. Pay increases prohibited.
Subtitle B--Farm and Foreign Agricultural Services
Sec. 225. Under Secretary of Agriculture for Farm and Foreign Agricultural
Services.
Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.
Subtitle C--Rural Economic and Community Development
Sec. 231. Under Secretary of Agriculture for Rural Economic and Community
Development.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification Administration.
Subtitle D--Food, Nutrition, and Consumer Services
Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and
Consumer Services.
Subtitle E--Natural Resources and Environment
Sec. 245. Under Secretary of Agriculture for Natural Resources and
Environment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.
Subtitle F--Research, Education, and Economics
Sec. 251. Under Secretary of Agriculture for Research, Education,
and Economics.
Sec. 252. Program staff.
Subtitle G--Food Safety
Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the level
of additives allowed in animal diets.
Subtitle H--National Appeals Division
Sec. 271. Definitions.
Sec. 272. National Appeals Division and Director.
Sec. 273. Transfer of functions.
Sec. 274. Notice and opportunity for hearing.
Sec. 275. Informal hearings.
Sec. 276. Right of participants to Division hearing.
Sec. 277. Division hearings.
Sec. 278. Director review of determinations of hearing officers.
Sec. 279. Judicial review.
Sec. 280. Implementation of final determinations of Division.
Sec. 281. Conforming amendments relating to National Appeals Division.
Sec. 282. Expansion of issues covered by State mediation programs.
Sec. 283. Authorization of appropriations.
Subtitle I--Miscellaneous Reorganization Provisions
Sec. 291. Successorship provisions relating to bargaining units and
exclusive representatives.
Sec. 292. Purchase of American-made equipment and products.
Sec. 293. Miscellaneous conforming amendments.
Sec. 294. Removal of obsolete administrative provisions.
Sec. 295. Proposed conforming amendments.
Sec. 296. Termination of authority.
TITLE III--MISCELLANEOUS
Sec. 301. Poultry labeling.
Sec. 302. First Amendment rights of employees of the United States Department
of Agriculture.
Sec. 303. Adjusted cost of thrifty food plan.
Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
Sec. 305. Fair and equitable treatment of socially disadvantaged producers.
Sec. 306. Aviation inspections.
TITLE I--FEDERAL CROP INSURANCE REFORM
SEC. 101. SHORT TITLE; REFERENCES.
(a) SHORT TITLE- This title may be cited as the `Federal Crop Insurance
Reform Act of 1994'.
(b) REFERENCES TO FEDERAL CROP INSURANCE ACT- Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision
of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
SEC. 102. DEFINITIONS.
(a) IN GENERAL- Section 502 (7 U.S.C. 1502) is amended--
(1) by striking the section heading and `SEC. 502.' and inserting
the following:
`SEC. 502. PURPOSE AND DEFINITIONS.
`(a) PURPOSE- '; and
(2) by adding at the end the following new subsection:
`(b) DEFINITIONS- As used in this title:
`(1) ADDITIONAL COVERAGE- The term `additional coverage' means a plan
of crop insurance coverage providing a level of coverage greater than the
level available under catastrophic risk protection.
`(2) APPROVED INSURANCE PROVIDER- The term `approved insurance provider'
means a private insurance provider that has been approved by the Corporation
to provide insurance coverage to producers participating in the Federal
crop insurance program established under this title.
`(3) BOARD- The term `Board' means the Board of Directors of the Corporation
established under section 505(a).
`(4) CORPORATION- The term `Corporation' means the Federal Crop Insurance
Corporation established under section 503.
`(5) DEPARTMENT- The term `Department' means the United States Department
of Agriculture.
`(6) LOSS RATIO- The term `loss ratio' means the ratio of all sums paid
by the Corporation as indemnities under any eligible crop insurance policy
to that portion of the premium designated for anticipated losses and a
reasonable reserve, other than that portion of the premium designated for
operating and administrative expenses.
`(7) SECRETARY- The term `Secretary' means the Secretary of Agriculture.
`(8) TRANSITIONAL YIELD- The term `transitional yield' means the maximum
average production per acre or equivalent measure that is assigned to acreage
for a crop year by the Corporation in accordance with the regulations of
the Corporation whenever the producer fails--
`(A) to certify that acceptable documentation of production and acreage
for the crop year is in the possession of the producer; or
`(B) to present the acceptable documentation on the demand of the Corporation
or an insurance company reinsured by the Corporation.'.
(b) CONFORMING AMENDMENTS-
(1) The first sentence of section 503 (7 U.S.C. 1503) is amended by
striking `(herein called the Corporation)'.
(2) Section 504 (7 U.S.C. 1504) is amended--
(A) in subsection (a), by striking `Board of Directors of the Corporation'
and inserting `Board'; and
(B) in subsection (d), by striking `Federal Crop Insurance Corporation'
and inserting `Corporation'.
(3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is amended
by striking `(hereinafter called the `Board')'.
(4) Except in section 502, the Act is amended--
(A) by striking `Board of Directors' each place it appears and inserting
`Board';
(B) by striking `Department of Agriculture' each place it appears and
inserting `Department'; and
(C) by striking `Secretary of Agriculture' each place it appears and
inserting `Secretary'.
SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.
The second sentence of section 505(a) (7 U.S.C. 1505(a)) is amended--
(1) by striking `or Assistant Secretary' the first place it appears;
and
(2) by striking `the Under Secretary or Assistant Secretary of Agriculture
responsible for the farm credit programs of the Department of Agriculture'
and inserting `one additional Under Secretary of Agriculture (as designated
by the Secretary of Agriculture)'.
SEC. 104. GENERAL POWERS.
Section 506 (7 U.S.C. 1506) is amended--
(1) by redesignating subsections (j) through (n) as subsections (k)
through (o), respectively;
(2) by inserting after subsection (i) the following new subsection:
`(j) SETTLING CLAIMS- The Corporation shall have the authority to make
final and conclusive settlement and adjustment of any claim by or against
the Corporation or a fiscal officer of the Corporation.';
(3) in subsection (l) (as so redesignated)--
(A) in the first sentence, by inserting `, and issue regulations,'
after `agreements'; and
(B) in the second sentence, by striking `contracts or agreements' each
place it appears and inserting `contracts, agreements, or regulations';
(4) in subsection (n)(1) (as so redesignated), by striking subparagraph
(B) and inserting the following new subparagraph:
`(B) disqualify the person from purchasing catastrophic risk protection
or receiving noninsured assistance for a period of not to exceed 2 years,
or from receiving any other benefit under this title for a period of not
to exceed 10 years.';
(5) in subsection (o) (as so redesignated)--
(A) by redesignating paragraphs (1) through (4) as subparagraphs (A)
through (D) and aligning the margins of each subparagraph with the margins
of subparagraph (A) of subsection (n)(1) (as redesignated by paragraph
(1));
(B) by striking `(o) ACTUARIAL SOUNDNESS- The Corporation' and inserting
the following:
`(o) ACTUARIAL SOUNDNESS-
`(1) PROJECTED LOSS RATIO AS OF OCTOBER 1, 1995- The Corporation';
(C) in subparagraph (A) (as redesignated by subparagraph (A)), by
striking `from obtaining adequate Federal crop insurance, as determined
by the Corporation' and inserting `(as defined by the Secretary) from obtaining
Federal crop insurance';
(D) in subparagraph (C) (as so redesignated)--
(i) by inserting `, agents, and loss adjusters' after `participating
producers'; and
(ii) by inserting `, agents, and loss adjusters' after `identify insured
producers'; and
(E) by adding at the end the following new paragraphs:
`(2) PROJECTED LOSS RATIO AS OF OCTOBER 1, 1998- The Corporation shall
take such actions, including the establishment of adequate premiums, as
are necessary to improve the actuarial soundness of Federal multiperil
crop insurance made available under this title to achieve, on and after
October 1, 1998, an overall projected loss ratio of not greater than 1.075.
`(3) NONSTANDARD CLASSIFICATION SYSTEM- To the extent that the Corporation
uses the nonstandard classification system, the Corporation shall apply
the system to all insured producers in a fair and consistent manner.';
and
(6) by adding at the end the following new subsections:
`(p) REGULATIONS- The Secretary and the Corporation are each authorized
to issue such regulations as are necessary to carry out this title.
`(q) PROGRAM COMPLIANCE-
`(1) TIMELINESS- The Corporation shall work actively with approved
insurance providers to address program compliance and integrity issues
as the issues develop.
`(2) NOTIFICATION OF COMPLIANCE PROBLEMS- The Corporation shall notify
in writing any approved insurance provider with whom the Corporation has
an agreement under this title 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.
The notice shall be given within 3 years of the end of the insurance period
during which the error, omission, or failure is alleged to have occurred,
except that this time limit shall not apply with respect to errors, omissions,
or procedural violations that are willful or intentional. The failure to
timely provide the notice required under this subsection shall relieve
the approved insurance provider from the debt owed the Corporation.
`(r) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS-
`(1) SENSE OF CONGRESS- It is the sense of Congress that, to the greatest
extent practicable, all equipment and products purchased by the Corporation
using funds made available to the Corporation should be American-made.
`(2) NOTICE REQUIREMENT- In providing financial assistance to, or entering
into any contract with, any entity for the purchase of equipment and products
to carry out this title, the Corporation, to the greatest extent practicable,
shall provide to the entity a notice describing the statement made in paragraph
(1).'.
SEC. 105. PERSONNEL.
Section 507 (7 U.S.C. 1507) is amended--
(1) in subsection (a), by striking `, and county crop insurance committeemen';
(2) in subsection (d), by striking `of this Act,' and all that follows
through `agency'; and
(3) by adding at the end the following new subsection:
`(g)(1) The Corporation shall establish a management-level position to
be known as the Specialty Crops Coordinator.
`(2) The Specialty Crops Coordinator shall have primary responsibility
for addressing the needs of specialty crop producers, and for providing
information and advice, in connection with the activities of the Corporation
to improve and expand the insurance program for specialty crops. In carrying
out this paragraph, the Specialty Crops Coordinator shall act as the liaison
of the Corporation with representatives of specialty crop producers and
assist the Corporation with the knowledge, expertise, and familiarity of
the producers with risk management and production issues pertaining to
specialty crops.
`(3) The Specialty Crops Coordinator shall use information collected
from Corporation field office directors in States in which specialty crops
have a significant economic effect and from other sources, including the
extension service and colleges and universities.'.
SEC. 106. CROP INSURANCE.
Section 508 (7 U.S.C. 1508) is amended to read as follows:
`SEC. 508. CROP INSURANCE.
`(a) AUTHORITY TO OFFER INSURANCE-
`(1) IN GENERAL- If sufficient actuarial data are available (as determined
by the Corporation), the Corporation may insure, or provide reinsurance
for insurers of, producers of agricultural commodities grown in the United
States under 1 or more plans of insurance determined by the Corporation
to be adapted to the agricultural commodity concerned. To qualify for coverage
under a plan of insurance, the losses of the insured commodity must be
due to drought, flood, or other natural disaster (as determined by the
Secretary).
`(2) PERIOD- Except in the cases of tobacco and potatoes, insurance
shall not extend beyond the period during which the insured commodity is
in the field. As used in the preceding sentence, in the case of an aquacultural
species, the term `field' means the environment in which the commodity
is produced.
`(3) EXCLUSIONS- Insurance provided under this subsection shall not
cover losses due to--
`(A) the neglect or malfeasance of the producer;
`(B) 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
`(C) the failure of the producer to follow good farming practices (as
determined by the Secretary).
`(4) EXPANSION TO OTHER AREAS OR SINGLE PRODUCERS-
`(A) AREA EXPANSION- The Corporation may offer plans of insurance
or reinsurance for production of agricultural commodities in the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau in the same
manner as provided in this section for production of agricultural commodities
in the United States.
`(B) PRODUCER EXPANSION- In an area in the United States or specified
in subparagraph (A) where crop insurance is not available for a particular
agricultural commodity, the Corporation may offer to enter into a written
agreement with an individual producer operating in the area for insurance
coverage under this title if the producer has actuarially sound data relating
to the production by the producer of the commodity and the data is acceptable
to the Corporation.
`(5) DISSEMINATION OF CROP INSURANCE INFORMATION- The Corporation shall
make available to producers through local offices of the Department--
`(A) current and complete information on all aspects of Federal crop
insurance; and
`(B) a listing of insurance agents and companies offering to sell crop
insurance in the area of the producers.
`(6) ADDITION OF NEW AND SPECIALTY CROPS-
`(A) DATA COLLECTION- Not later than 180 days after the date of enactment
of this paragraph, the Secretary shall issue guidelines for publication
in the Federal Register for data collection to assist the Corporation in
formulating crop insurance policies for new and specialty crops.
`(B) ADDITION OF NEW CROPS- Not later than 1 year after the date of
enactment of this paragraph, and annually thereafter, the Corporation shall
report to Congress on the progress and expected timetable for expanding
crop insurance coverage under this title to new and specialty crops.
`(C) ADDITION OF DIRECT SALE PERISHABLE CROPS- Not later than 1 year
after the date of enactment of this paragraph, the Corporation shall report
to Congress on the feasibility of offering a crop insurance program designed
to meet the needs of specialized producers of vegetables and other perishable
crops who market through direct marketing channels.
`(b) CATASTROPHIC RISK PROTECTION-
`(1) IN GENERAL- The Corporation shall offer a catastrophic risk protection
plan to indemnify producers for crop loss due to loss of yield or prevented
planting, if provided by the Corporation, when the producer is unable,
because of drought, flood, or other natural disaster (as determined by
the Secretary), to plant other crops for harvest on the acreage for the
crop year.
`(2) AMOUNT OF COVERAGE-
`(A) IN GENERAL- Subject to subparagraph (B)--
`(i) in the case of each of the 1995 through 1998 crop years, catastrophic
risk protection shall offer a producer coverage for a 50 percent loss in
yield, on an individual yield or area yield basis, indemnified at 60 percent
of the expected market price, or a comparable coverage (as determined by
the Corporation); and
`(ii) in the case of each of the 1999 and subsequent crop years, catastrophic
risk protection shall offer a producer coverage for a 50 percent loss in
yield, on an individual yield or area yield basis, indemnified at 55 percent
of the expected market price, or a comparable coverage (as determined by
the Corporation).
`(B) REDUCTION IN ACTUAL PAYMENT- The amount paid to a producer on a claim
under catastrophic risk protection may reflect a reduction that is proportional
to the out-of-pocket expenses that are not incurred by the producer as
a result of not planting, growing, or harvesting the crop for which the
claim is made, as determined by the Corporation.
`(3) YIELD AND LOSS BASIS- A producer shall have the option of basing the
catastrophic coverage of the producer on an individual yield and loss basis
or on an area yield and loss basis, if both options are offered by the
Corporation.
`(4) SALE OF CATASTROPHIC RISK COVERAGE-
`(A) IN GENERAL- Catastrophic risk coverage may be offered by--
`(i) approved insurance providers, if available in an area; and
`(ii) at the option of the Secretary that is based on considerations
of need, local offices of the Department.
`(B) NEED- For purposes of considering need under subparagraph (A)(ii),
the Secretary may take into account the most efficient and cost-effective
use of resources, the availability of personnel, fairness to local producers,
the needs and convenience of local producers, and the availability of private
insurance carriers.
`(5) ADMINISTRATIVE FEE-
`(A) FEE REQUIRED- Producers shall pay an administrative fee for catastrophic
risk protection. The administrative fee for each producer shall be $50
per crop per county, but not to exceed $200 per producer per county up
to a maximum of $600 per producer for all counties in which a producer
has insured crops. The administrative fee shall be paid by the producer
at the time the producer applies for catastrophic risk protection.
`(B) USE OF FEES-
`(i) FEES UP TO $100-
`(I) FEES COLLECTED BY USDA OFFICES- Not more than $100 of the administrative
fees paid by a producer for catastrophic risk coverage that are collected
by an office of the Department shall be credited to the appropriations
account providing funds for the payment of operating and administrative
expenses incurred for the delivery of catastrophic risk protection under
this section. The fees shall be collected in accordance with appropriation
Acts and shall be available until expended without fiscal year limitation
for the payment of the expenses.
`(II) FEES COLLECTED BY APPROVED INSURANCE PROVIDERS- Not more than
$100 of the administrative fees paid by a producer for catastrophic risk
coverage that are collected by an approved insurance provider shall be
retained by the provider as payment for operating and administrative expenses
incurred for the delivery of catastrophic risk protection.
`(ii) FEES IN EXCESS OF $100- Notwithstanding the authority granted to
the Secretary under the Federal Crop Insurance Corporation account provisions
of the Agricultural, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1995, all fees collected under this
subsection in excess of $100 per producer per county shall be deposited
in the crop insurance fund established under section 516(c), to be available
for the programs and activities of the Corporation.
`(C) WAIVER OF FEE- The Corporation shall waive the administrative fee
for limited resource farmers, as defined by the Corporation.
`(6) PARTICIPATION REQUIREMENT- A producer may obtain catastrophic risk
coverage for a crop of the producer on land in the county only if the producer
obtains the coverage for the crop on all insurable land of the producer
in the county.
`(7) ELIGIBILITY FOR DEPARTMENT PROGRAMS-
`(A) IN GENERAL- To be eligible for any price support or production
adjustment program, the conservation reserve program, or any benefit described
in section 371 of the Consolidated Farm and Rural Development Act, the
producer must obtain at least the catastrophic level of insurance for each
crop of economic significance grown on each farm in the county in which
the producer has an interest, if insurance is available in the county for
the crop.
`(B) DEFINITION OF CROP OF ECONOMIC SIGNIFICANCE- As used in this paragraph,
the term `crop of economic significance' means a crop that has contributed,
or is expected to contribute, 10 percent or more of the total expected
value of all crops grown by the producer.
`(8) LIMITATION DUE TO RISK- The Corporation may limit catastrophic risk
coverage in any county or area, or on any farm, on the basis of the insurance
risk concerned.
`(9) TRANSITIONAL COVERAGE FOR 1995 CROPS- Effective only for a 1995
crop planted or for which insurance attached prior to January 1, 1995,
the Corporation shall allow producers of the crops until not later than
the end of the 180-day period beginning on the date of enactment of the
Federal Crop Insurance Reform Act of 1994 to obtain catastrophic risk protection
for the crop. On enactment of such Act, a producer who made timely purchases
of a crop insurance policy before the date of enactment of such Act, under
the provisions of this title then in effect, shall be eligible for the
same benefits to which a producer would be entitled under comparable additional
coverage under subsection (c).
`(10) SIMPLIFICATION-
`(A) CATASTROPHIC RISK PROTECTION PLANS- In developing and carrying
out the policies and procedures for a catastrophic risk protection plan
under this title, the Corporation shall, to the maximum extent practicable,
minimize the paperwork required and the complexity and costs of procedures
governing applications for, processing, and servicing of the plan for all
parties involved.
`(B) OTHER PLANS- To the extent that the policies and procedures developed
under subparagraph (A) may be applied to other plans of insurance offered
under this title without jeopardizing the actuarial soundness or integrity
of the crop insurance program, the Corporation shall apply the policies
and procedures to the other plans of insurance within a reasonable period
of time (as determined by the Corporation) after the effective date of
this paragraph.
`(c) GENERAL COVERAGE LEVELS-
`(1) ADDITIONAL COVERAGE GENERALLY-
`(A) IN GENERAL- The Corporation shall offer to producers of agricultural
commodities grown in the United States plans of crop insurance that provide
additional coverage.
`(B) PURCHASE- To be eligible for additional coverage, a producer must
apply to an approved insurance provider for purchase of additional coverage
if the coverage is available from an approved insurance provider. If additional
coverage is unavailable privately, the Corporation may offer additional
coverage plans of insurance directly to producers.
`(2) TRANSFER OF RELEVANT INFORMATION- If a producer has already applied
for catastrophic risk protection at the local office of the Department
and elects to purchase additional coverage, the relevant information for
the crop of the producer shall be transferred to the approved insurance
provider servicing the additional coverage crop policy.
`(3) YIELD AND LOSS BASIS- A producer shall have the option of purchasing
additional coverage based on an individual yield and loss basis or on an
area yield and loss basis, if both options are offered by the Corporation.
`(4) LEVEL OF COVERAGE- The level of coverage shall be dollar denominated
and may be purchased at any level not to exceed 85 percent of the individual
yield or 95 percent of the area yield (as determined by the Corporation).
Not later than the beginning of the 1996 crop year, the Corporation shall
provide producers with information on catastrophic risk and additional
coverage in terms of dollar coverage (within the allowable limits of coverage
provided in this paragraph).
`(5) PRICE LEVEL- The Corporation shall establish a price level for
each commodity on which insurance is offered that--
`(A) shall not be less than the projected market price for the commodity
(as determined by the Corporation); or
`(B) at the discretion of the Corporation, may be based on the actual
market price at the time of harvest (as determined by the Corporation).
`(6) PRICE ELECTIONS-
`(A) IN GENERAL- Subject to subparagraph (B), insurance coverage shall
be made available to a producer on the basis of any price election that
equals or is less than the price election established by the Corporation.
The coverage shall be quoted in terms of dollars per acre.
`(B) MINIMUM PRICE ELECTIONS- The Corporation may establish minimum
price elections below which levels of insurance shall not be offered.
`(C) WHEAT CLASSES AND MALTING BARLEY- The Corporation shall, as the
Corporation determines practicable, offer producers different price elections
for classes of wheat and malting barley (including contract prices in the
case of malting barley), in addition to the standard price election, that
reflect different market prices, as determined by the Corporation. The
Corporation shall, as the Corporation determines practicable, offer additional
coverage for each class determined under this subparagraph and charge a
premium for each class that is actuarially sound.
`(7) FIRE AND HAIL COVERAGE- For levels of additional coverage equal to
65 percent or more of the recorded or appraised average yield indemnified
at 100 percent of the expected market price, or an equivalent coverage,
a producer may elect to delete from the additional coverage any coverage
against damage caused by fire and hail if the producer obtains an equivalent
or greater dollar amount of coverage for damage caused by fire and hail
from an approved insurance provider. On written notice of the election
to the company issuing the policy providing additional coverage and submission
of evidence of substitute coverage on the commodity insured, the premium
of the producer shall be reduced by an amount determined by the Corporation
to be actuarially appropriate, taking into account the actuarial value
of the remaining coverage provided by the Corporation. In no event shall
the producer be given credit for an amount of premium determined to be
greater than the actuarial value of the protection against losses caused
by fire and hail that is included in the additional coverage for the crop.
`(8) STATE PREMIUM SUBSIDIES- The Corporation may enter into an agreement
with any State or agency of a State under which the State or agency may
pay to the approved insurance provider an additional premium subsidy to
further reduce the portion of the premium paid by producers in the State.
`(9) LIMITATIONS ON ADDITIONAL COVERAGE- The Board may limit the availability
of additional coverage under this subsection in any county or area, or
on any farm, on the basis of the insurance risk involved. The Board shall
not offer additional coverage equal to less than 50 percent of the recorded
or appraised average yield indemnified at 100 percent of the expected market
price, or an equivalent coverage.
`(10) ADMINISTRATIVE FEE-
`(A) FEE REQUIRED- Except as otherwise provided in this paragraph,
if a producer elects to purchase additional coverage for a crop at a level
that is less than 65 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or an equivalent
coverage, the producer shall pay an administrative fee for the additional
coverage. Subsection (b)(5) shall apply in determining the amount and use
of the administrative fee or in determining whether to waive the administrative
fee.
`(B) EXCEPTION- If a producer elects to purchase additional coverage
for a crop equal to 65 percent or more of the recorded or appraised average
yield indemnified at 100 percent of the expected market price, or an equivalent
coverage, the producer shall not be subject to the administrative fee required
by this paragraph or subsection (b)(5). If the producer has already paid
the administrative fee for a lower level of coverage for the crop, the
administrative fee shall be refunded to the producer unless the refund
would reduce to less than $200 the total amount of the administrative fees
paid by the producer for 2 or more crops in the same county for which a
lower level of coverage is obtained.
`(C) ADDITIONAL FEE- If a producer elects to purchase additional coverage
for a crop equal to or exceeding 65 percent of the recorded or appraised
average yield and 100 percent of the expected market price or an equivalent
coverage, the producer shall pay an administrative fee of $10 for the coverage.
If a producer has already paid an administrative fee for lesser coverage
for the crop, the fee for lesser coverage shall be refunded to the producer
unless the producer has paid the maximum fee for lesser coverage and refund
of the fee will not reduce the amount to be paid below the maximum amount.
`(D) DEPOSIT OF FEES- Notwithstanding the authority granted to the Secretary
under the Federal Crop Insurance Corporation account provisions of the
Agricultural, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1995, administrative fees collected under
subparagraph (B) in excess of $100 per producer per county and under subparagraph
(C) shall be deposited in the insurance fund established under section
516(c) to be available for the programs and activities of the Corporation.
`(d) PREMIUMS-
`(1) PREMIUMS REQUIRED- The Corporation shall fix adequate premiums
for all the plans of insurance of the Corporation at such rates as the
Board determines are actuarially sufficient to attain an expected loss
ratio of not greater than 1.1 through September 30, 1998, and not greater
than 1.075 after October 1, 1998.
`(2) PREMIUM AMOUNTS- The premium amounts for catastrophic risk protection
under subsection (b) and additional coverage under subsection (c) shall
be fixed as follows:
`(A) In the case of catastrophic risk protection, the amount of the
premium shall be sufficient to cover anticipated losses and a reasonable
reserve.
`(B) In the case of additional coverage below 65 percent of the recorded
or appraised average yield indemnified at 100 percent of the expected market
price, or an equivalent coverage, but greater than 50 percent of the recorded
or appraised average yield indemnified at 100 percent of the expected market
price, or an equivalent coverage, 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.
`(C) In the case of additional coverage equal to or greater than 65 percent
of the recorded or appraised average yield indemnified at 100 percent of
the expected market price, or an equivalent coverage, 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.
`(e) PAYMENT OF PORTION OF PREMIUM BY CORPORATION-
`(1) IN GENERAL- For the purpose of encouraging the broadest possible
participation of producers in the catastrophic risk protection provided
under subsection (b) and the additional coverage provided under subsection
(c), the Corporation shall pay a part of the premium in the amounts provided
in accordance with this subsection.
`(2) AMOUNT OF PAYMENT- The amount of the premium to be paid by the
Corporation shall be as follows:
`(A) In the case of catastrophic risk protection, the amount shall
be equivalent to the premium established for catastrophic risk protection
under subsection (d)(2)(A).
`(B) In the case of coverage below 65 percent of the recorded or appraised
average yield indemnified at 100 percent of the expected market price,
or an equivalent coverage, but greater than 50 percent of the recorded
or appraised average yield indemnified at 100 percent of the expected market
price, or an equivalent coverage, the amount shall be equivalent to the
amount of premium established for catastrophic risk protection coverage
and the amount of operating and administrative expenses established under
subsection (d)(2)(B).
`(C) In the case of coverage equal to or greater than 65 percent of
the recorded or appraised average yield indemnified at 100 percent of the
expected market price, or an equivalent coverage, on an individual or area
basis, the amount shall be equivalent to an amount equal to the premium
established for 50 percent loss in yield indemnified at 75 percent of the
expected market price and the amount of operating and administrative expenses
established under subsection (d)(2)(C).
`(3) PREMIUM REDUCTION- If an approved insurance provider determines that
the provider may provide insurance more efficiently than the expense reimbursement
amount established by the Corporation, the approved insurance provider
may reduce, subject to the approval of the Corporation, the premium charged
the insured by an amount corresponding to the efficiency. The approved
insurance provider shall apply to the Corporation for authority to reduce
the premium before making such a reduction, and the reduction shall be
subject to the rules, limitations, and procedures established by the Corporation.
`(4) INDIVIDUAL AND AREA CROP INSURANCE COVERAGE- The Corporation shall
allow approved insurance providers to offer a plan of insurance to producers
that combines both individual yield coverage and area yield coverage at
a premium rate determined by the provider under the following conditions:
`(A) The individual yield coverage shall be equal to or greater than
catastrophic risk protection as described in subsection (b).
`(B) The combined policy shall include area yield coverage that is offered
by the Corporation or similar area coverage, as determined by the Corporation.
`(C) The Corporation shall provide reinsurance on the area yield portion
of the combined policy at the request of the provider, except that the
provider shall agree to pay to the producer any portion of the area yield
and loss indemnity payment received from the Corporation or a commercial
reinsurer that exceeds the individual indemnity payment made by the provider
to the producer.
`(D) The Corporation shall pay a part of the premium equivalent to--
`(i) the amount authorized under paragraph (2) (except provisions
regarding operating and administrative expenses); and
`(ii) the amount of operating and administrative expenses authorized
by the Corporation for the area yield coverage portion of the combined
policy.
`(E) The provider shall provide all underwriting services for the combined
policy, including the determination of individual yield coverage premium
rates, the terms and conditions of the policy, and the acceptance and classification
of applicants into risk categories, subject to subparagraph (F).
`(F) The Corporation shall approve the combined policy unless the Corporation
determines that the policy is not actuarially sound or that the interests
of producers are not adequately protected.
`(f) ELIGIBILITY-
`(1) IN GENERAL- To participate in catastrophic risk protection coverage
under this section, a producer shall submit an application at the local
office of the Department or to an approved insurance provider.
`(2) SALES CLOSING DATE- For coverage under this title, each producer
shall purchase crop insurance on or before the sales closing date for the
crop by providing the required information and executing the required documents.
Subject to the goal of ensuring actuarial soundness for the crop insurance
program, the sales closing date shall be established by the Corporation
to maximize convenience to producers in obtaining benefits under price
and production adjustment programs of the Department. Beginning with the
1995 crop year, the Corporation shall establish, for an insurance policy
for each insurable crop that is planted in the spring, a sales closing
date that is 30 days earlier than the corresponding sales closing date
that was established for the 1994 crop year.
`(3) RECORDS AND REPORTING- To obtain catastrophic risk protection under
subsection (b) or additional coverage under subsection (c), a producer
shall--
`(A) provide, to the extent required by the Corporation, records acceptable
to the Corporation of historical acreage and production of the crops for
which the insurance is sought or accept a yield determined by the Corporation;
and
`(B) report acreage planted and prevented from planting by the designated
acreage reporting date for the crop and location as established by the
Corporation.
`(g) YIELD DETERMINATIONS-
`(1) IN GENERAL- Subject to paragraph (2), the Corporation shall establish
crop insurance underwriting rules that ensure that yield coverage, as specified
in this subsection, is provided to eligible producers obtaining catastrophic
risk protection under subsection (b) or additional coverage under subsection
(c).
`(2) YIELD COVERAGE PLANS-
`(A) ACTUAL PRODUCTION HISTORY- Subject to subparagraph (B), the yield
for a crop shall be based on the actual production history for the crop,
if the crop was produced on the farm without penalty during each of the
4 crop years immediately preceding the crop year for which actual production
history is being established, building up to a production data base for
each of the 10 consecutive crop years preceding the crop year for which
actual production history is being established.
`(B) ASSIGNED YIELD- If the producer does not provide satisfactory evidence
of the yield of a commodity under subparagraph (A), the producer shall
be assigned a yield that is not less than 65 percent of the transitional
yield of the producer (adjusted to reflect actual production reflected
in the records acceptable to the Corporation for continuous years), as
specified in regulations issued by the Corporation based on production
history requirements.
`(C) AREA YIELD- The Corporation may offer a crop insurance plan based
on an area yield that allows an insured producer to qualify for an indemnity
if a loss has occurred in an area (as specified by the Corporation) in
which the farm of the producer is located. Under an area yield plan, an
insured producer shall be allowed to select the level of area production
at which an indemnity will be paid consistent with such terms and conditions
as are established by the Corporation.
`(D) COMMODITY-BY-COMMODITY BASIS- A producer may choose between individual
yield or area yield coverage or combined coverage (as provided in subsection
(e)(4)), if available, on a commodity-by-commodity basis.
`(3) TRANSITIONAL YIELDS FOR PRODUCERS OF FEED OR FORAGE-
`(A) IN GENERAL- If a producer does not provide satisfactory evidence
of a yield under paragraph (2)(A), the producer shall be assigned a yield
that is at least 80 percent of the transitional yield established by the
Corporation (adjusted to reflect the actual production history of the producer)
if the Secretary determines that--
`(i) the producer grows feed or forage primarily for on-farm use in
a livestock, dairy, or poultry operation; and
`(ii) over 50 percent of the net farm income of the producer is derived
from the operation.
`(B) YIELD CALCULATION- The Corporation shall--
`(i) for the first year of participation of a producer, provide the
assigned yield under this paragraph to the producer of feed or forage;
and
`(ii) for the second year of participation of the producer, apply the
actual production history or assigned yield requirement, as provided in
this subsection.
`(C) TERMINATION OF AUTHORITY- The authority provided by this paragraph
shall terminate on the date that is 3 years after the effective date of
this paragraph.
`(h) SUBMISSION OF POLICIES AND MATERIALS TO BOARD-
`(1) IN GENERAL- In addition to any standard forms or policies that
the Board may require be made available to producers under subsection (c),
a person may prepare for submission or propose to the Board--
`(A) other crop insurance policies and provisions of policies; and
`(B) rates of premiums for multiple peril crop insurance pertaining
to wheat, soybeans, field corn, and any other crops determined by the Secretary.
`(2) SUBMISSION OF POLICIES- A policy or other material submitted to the
Board under this subsection may be prepared without regard to the limitations
contained in this title, including the requirements concerning the levels
of coverage and rates and the requirement that a price level for each commodity
insured must equal the expected market price for the commodity as established
by the Board. In the case of such a policy, the payment by the Corporation
of a portion of the premium of the policy may not exceed the amount that
would otherwise be authorized under subsection (e).
`(3) REVIEW AND APPROVAL BY THE BOARD- A policy or other material submitted
to the Board under this subsection shall be reviewed by the Board and,
if the Board finds that the interests of producers are adequately protected
and that any premiums charged to the producers are actuarially appropriate,
shall be approved by the Board for reinsurance and for sale to producers
as an additional choice at actuarially appropriate rates and under appropriate
terms and conditions. The Corporation may enter into more than 1 reinsurance
agreement with the approved insurance provider simultaneously to facilitate
the offering of the new policies.
`(4) GUIDELINES FOR SUBMISSION AND REVIEW- The Corporation shall issue
regulations to establish guidelines for the submission, and Board review,
of policies or other material submitted to the Board under this subsection.
At a minimum, the guidelines shall ensure the following:
`(A) A proposal submitted to the Board under this subsection shall
be considered as confidential commercial or financial information for purposes
of section 552(b)(4) of title 5, United States Code, until approved by
the Board. A proposal disapproved by the Board shall remain confidential
commercial or financial information.
`(B) The Board shall provide an applicant with the opportunity to present
the proposal to the Board in person if the applicant so desires.
`(C) The Board shall provide an applicant with notification of intent
to disapprove a proposal not later than 30 days prior to making the disapproval.
An applicant that receives the notification may modify the application
of the applicant. Any modification shall be considered an original application
for purposes of this paragraph.
`(D) Specific guidelines shall prescribe the timing of submission of
proposals under this subsection and timely consideration by the Board so
that any approved proposal may be made available to all persons reinsured
by the Corporation in a manner permitting the persons to participate, if
the persons so desire, in offering such a proposal in the first crop year
in which the proposal is approved by the Board for reinsurance, premium
subsidy, or other support offered by this title.
`(5) REQUIRED PUBLICATION- Any policy, provision of a policy, or rate approved
under this subsection shall be published as a notice in the Federal Register
and made available to all persons contracting with or reinsured by the
Corporation under the terms and conditions of the contract between the
Corporation and the person originally submitting the policy or other material.
`(6) PILOT COST OF PRODUCTION RISK PROTECTION PLAN-
`(A) IN GENERAL- The Corporation shall offer, to the extent practicable,
a cost of production risk protection plan of insurance that indemnifies
producers (including new producers) for insurable losses as provided in
this paragraph.
`(B) PILOT BASIS- The cost of production risk protection plan shall--
`(i) be established as a pilot project for each of the 1996 and 1997
crop years; and
`(ii) be carried out 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 plan.
`(C) INSURABLE LOSS- An insurable loss shall be incurred by a producer
if the gross income of the producer (as determined by the Corporation)
is less than an amount determined by the Corporation, as a result of a
reduction in yield or price resulting from an insured cause.
`(D) DEFINITION OF NEW PRODUCER- As used in this paragraph, the term
`new producer' means a person that has not been actively engaged in farming
for a share of the production of the insured crop for more than 2 crop
years, as determined by the Secretary.
`(7) ADDITIONAL PREVENTED PLANTING POLICY COVERAGE-
`(A) IN GENERAL- Beginning with the 1995 crop year, the Corporation
shall offer to producers additional prevented planting coverage that insures
producers against losses in accordance with this paragraph.
`(B) APPROVED INSURANCE PROVIDERS- Additional prevented planting coverage
shall be offered by the Corporation through approved insurance providers.
`(C) TIMING OF LOSS- A crop loss shall be covered by the additional
prevented planting coverage if--
`(i) crop insurance policies were obtained for--
`(I) the crop year the loss was experienced; and
`(II) the crop year immediately preceding the year of the prevented
planting loss; and
`(ii) the cause of the loss occurred--
`(I) after the sales closing date for the crop in the crop year immediately
preceding the loss; and
`(II) before the sales closing date for the crop in the year in which
the loss is experienced.
`(8) PILOT PROGRAM OF ASSIGNED YIELDS FOR NEW PRODUCERS-
`(A) PROGRAM REQUIRED- For each of the 1995 and 1996 crop years, the
Corporation shall carry out a pilot program to assign to eligible new producers
higher assigned yields than would otherwise be assigned to the producers
under subsection (g). The Corporation shall include in the pilot program
30 counties that are determined by the Corporation to be adequate to provide
a comprehensive evaluation of the feasibility, effectiveness, and demand
among new producers for increased assigned yields.
`(B) INCREASED ASSIGNED YIELDS- In the case of an eligible new producer
participating in the pilot program, the Corporation shall assign to the
new producer a yield that is equal to not less than 110 percent of the
transitional yield otherwise established by the Corporation.
`(C) ELIGIBLE NEW PRODUCER- The Secretary shall establish a definition
of new producer for purposes of determining eligibility to participate
in the pilot program.
`(i) ADOPTION OF RATES AND COVERAGES- The Corporation shall adopt, as soon
as practicable, rates and coverages that will improve the actuarial soundness
of the insurance operations of the Corporation for those crops that are
determined to be insured at rates that are not actuarially sound, except
that no rate may be increased by an amount of more than 20 percent over
the comparable rate of the preceding crop year.
`(j) CLAIMS FOR LOSSES-
`(1) IN GENERAL- Under rules prescribed by the Corporation, the Corporation
may provide for adjustment and payment of claims for losses. The rules
prescribed by the Corporation shall establish standards to ensure that
all claims for losses are adjusted, to the extent practicable, in a uniform
and timely manner.
`(2) Denial of claims-
`(A) IN GENERAL- Subject to subparagraph (B), if a claim for indemnity
is denied by the Corporation or an approved provider, an action on the
claim may be brought against the Corporation or Secretary only in the United
States district court for the district in which the insured farm is located.
`(B) STATUTE OF LIMITATIONS- A suit on the claim may be brought not
later than 1 year after the date on which final notice of denial of the
claim is provided to the claimant.
`(3) INDEMNIFICATION- The Corporation shall provide approved insurance
providers with indemnification, including costs and reasonable attorney
fees incurred by the approved insurance provider, due to errors or omissions
on the part of the Corporation.
`(k) REINSURANCE-
`(1) IN GENERAL- Notwithstanding any other provision of this title,
the Corporation shall, to the maximum extent practicable, provide reinsurance
to insurers approved by the Corporation that insure producers of any agricultural
commodity under 1 or more plans acceptable to the Corporation.
`(2) TERMS AND CONDITIONS- The reinsurance shall be provided on such
terms and conditions as the Board may determine to be consistent with subsections
(b) and (c) and sound reinsurance principles.
`(3) SHARE OF RISK- The reinsurance agreements of the Corporation with
the reinsured companies shall require the reinsured companies to bear a
sufficient share of any potential loss under the agreement so as to ensure
that the reinsured company will sell and service policies of insurance
in a sound and prudent manner, taking into consideration the financial
condition of the reinsured companies and the availability of private reinsurance.
`(4) RATE- The rate established by the Board to reimburse approved insurance
providers and agents for the administrative and operating costs of the
providers and agents shall not exceed--
`(A) for the 1997 reinsurance year, 29 percent of the premium used
to define loss ratio;
`(B) for the 1998 reinsurance year, 28 percent of the premium used to
define loss ratio; and
`(C) for the 1999 reinsurance year, 27.5 percent of the premium used
to define loss ratio.
`(5) COST AND REGULATORY REDUCTION- Consistent with section 118 of the
Federal Crop Insurance Reform Act of 1994, and consistent with maintenance
of program integrity, prevention of fraud and abuse, the need for program
expansion, and improvement of quality of service to customers, the Board
shall alter program procedures and administrative requirements in order
to reduce the administrative and operating costs of approved insurance
providers and agents in an amount that corresponds to any reduction in
the reimbursement rate required under paragraph (4) during the 5-year period
beginning on the date of enactment of this paragraph.
`(6) AGENCY DISCRETION- The determination of whether the Corporation
is achieving, or has achieved, corresponding administrative cost savings
shall not be subject to administrative review, and is wholly committed
to agency discretion within the meaning of section 701(a)(2) of title 5,
United States Code.
`(7) PLAN- The Corporation shall submit to Congress a plan outlining
the measures that will be used to achieve the reduction required under
paragraph (5). If the Corporation can identify additional cost reduction
measures, the Corporation shall describe the measures in the plan.
`(l) OPTIONAL COVERAGES- The Corporation may offer specific risk protection
programs, including protection against prevented planting, wildlife depredation,
tree damage and disease, and insect infestation, under such terms and conditions
as the Board may determine, except that no program may be undertaken if
insurance for the specific risk involved is generally available from private
companies.
`(m) RESEARCH-
`(1) IN GENERAL- Except as provided in paragraph (2), the Corporation
may conduct research, surveys, pilot programs, and investigations relating
to crop insurance and agriculture-related risks and losses including insurance
on losses involving reduced forage on rangeland caused by drought and by
insect infestation, livestock poisoning and disease, destruction of bees
due to the use of pesticides, and other unique special risks related to
fruits, nuts, vegetables, aquacultural species, forest industry needs (including
appreciation), and other agricultural products as determined by the Board.
`(2) EXCEPTION- No action may be undertaken with respect to a risk under
paragraph (1) if insurance protection against the risk is generally available
from private companies.
`(3) EVALUATION- After the completion of any pilot program under this
subsection, 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
of the operations of the pilot program, including the evaluation by the
Corporation of the pilot program and the recommendations of the Corporation
with respect to implementing the program on a national basis.'.
SEC. 107. CROP INSURANCE YIELD COVERAGE.
Section 508A (7 U.S.C. 1508a) is repealed.
SEC. 108. PREEMPTION.
Section 511 (7 U.S.C. 1511) is amended by adding at the end the following
sentence: `A contract of insurance of the Corporation, and a contract of
insurance reinsured by the Corporation, shall be exempt from taxation imposed
by any State, municipality, or local taxing authority.'.
SEC. 109. ADVISORY COMMITTEE.
The Act is amended by inserting after section 514 (7 U.S.C. 1514)
the following new section:
`SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.
`(a) ESTABLISHMENT- The Secretary may establish within the Department
an advisory committee to be known as the `Advisory Committee for Federal
Crop Insurance'.
`(b) PRIMARY RESPONSIBILITY- The primary responsibility of the Advisory
Committee shall be to advise the Secretary on the implementation of this
title and on other issues related to crop insurance, as determined by the
Manager of the Corporation.
`(c) MEMBERSHIP- The Advisory Committee shall be composed of the Manager
of the Corporation, the Secretary (or a designee of the Secretary), and
not fewer than 12 members representing organizations and agencies involved
in the provision of crop insurance under this title. Not fewer than 3 of
the members of the Advisory Committee shall be representatives of the specialty
crops industry. The organizations or agencies represented by members on
the Advisory Committee may include insurance companies, insurance agents,
farm producer organizations, experts on agronomic practices, and banking
and lending institutions.
`(d) Administrative Provisions-
`(1) TERMS- Members of the Advisory Committee (other than the Manager
of the Corporation and the Secretary) shall be appointed by the Secretary
for a term of up to 2 years from nominations made by the organizations
and agencies specified in subsection (c). The terms of the members (other
than the Manager of the Corporation and the Secretary) shall be staggered.
`(2) CHAIRPERSON- The Advisory Committee shall be chaired by the Manager
of the Corporation.
`(3) MEETINGS- The Advisory Committee shall meet at least annually.
The meetings of the Advisory Committee shall be publicly announced in advance
and shall be open to the public. Appropriate records of the activities
of the Advisory Committee shall be kept and made available to the public
on request.
`(e) REPORTS- Not later than June 30 of each year, the Advisory Committee
shall submit to the Secretary a report specifying the conclusions and recommendations
of the Advisory Committee regarding--
`(1) the progress toward implementation of this title;
`(2) the actuarial soundness of the Federal crop insurance program;
`(3) the rate of producer participation in both catastrophic risk protection
under section 508(b) and additional coverage under section 508(c); and
`(4) the progress toward improved crop insurance coverage for new and
specialty crops.
`(f) TERMINATION OF AUTHORITY- The authority provided by this section shall
terminate on September 30, 1998.'.
SEC. 110. FUNDING.
Section 516 (7 U.S.C. 1516) is amended to read as follows:
`SEC. 516. FUNDING.
`(a) AUTHORIZATION OF APPROPRIATIONS-
`(1) DISCRETIONARY EXPENSES- There are authorized to be appropriated
for each of fiscal years 1995 through 2001 such sums as are necessary to
cover--
`(A) the salaries and expenses of the Corporation; and
`(B) the administrative and operating expenses of the Corporation for
the sales commissions of agents.
`(2) MANDATORY EXPENSES- There are authorized to be appropriated such sums
as are necessary to cover--
`(A) in the case of each of the 1995 through 1997 reinsurance years,
the administrative and operating expenses of the Corporation for the sales
commissions of agents, consistent with subsection (b)(1);
`(B) premium subsidies, including the administrative and operating expenses
of an approved insurance provider for the delivery of policies with additional
coverage; and
`(C) payments for noninsured assistance losses under section 519.
`(b) PAYMENT OF EXPENSES-
`(1) ADMINISTRATIVE AND OPERATING EXPENSES-
`(A) IN GENERAL- Except as provided in subparagraph (B), in the case
of each of the 1995 through 1997 reinsurance years, the Corporation is
authorized to pay from the insurance fund established under subsection
(c), the administrative and operating expenses of an approved insurance
provider, including expenses covered by subsection (a)(1)(B).
`(B) SALES COMMISSIONS FOR 1997 REINSURANCE YEAR- In the case of the
1997 reinsurance year, the amount of the payments from the insurance fund
established under subsection (c) for the expenses of the Corporation for
the sales commissions of agents may not exceed 8.5 percent of the total
amount of premiums paid for additional coverage for the 1997 reinsurance
year.
`(2) OTHER EXPENSES- The Corporation is authorized to pay from the insurance
fund established under subsection (c)--
`(A) all other expenses of the Corporation (other than expenses covered
by subsection (a)(1)), including all premium subsidies, noninsured assistance
benefits, and indemnities;
`(B) subject to paragraph (1)(B), in the case of each of the 1995 through
1997 reinsurance years, all administrative and expense reimbursements due
under a reinsurance agreement with an approved insurance provider; and
`(C) to the extent necessary, expenses incurred by the Corporation to
carry out research and development.
`(c) INSURANCE FUND-
`(1) IN GENERAL- There is established an insurance fund, for the deposit
of premium income and amounts made available under subsection (a)(2), to
be available without fiscal year limitation.
`(2) COMMODITY CREDIT CORPORATION FUNDS- If at any time the amounts
in the insurance fund are insufficient to enable the Corporation to carry
out subsection (b), to the extent the funds of the Commodity Credit Corporation
are available--
`(A) the Corporation may request the Secretary to use the funds of
the Commodity Credit Corporation to carry out subsection (b); and
`(B) the Secretary may use the funds of the Commodity Credit Corporation
to carry out subsection (b).'.
SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.
Section 519 (7 U.S.C. 1519) is amended to read as follows:
`SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
`(a) ESTABLISHMENT OF PROGRAM-
`(1) ESTABLISHMENT- In the case of an eligible crop described in paragraph
(2), the Corporation shall establish a noninsured crop disaster assistance
program to provide coverage equivalent to the catastrophic risk protection
otherwise available under section 508(b).
`(2) ELIGIBLE CROPS-
`(A) IN GENERAL- As used in this section, the term `eligible crop'
means each commercial crop or other agricultural commodity (except livestock)--
`(i) for which catastrophic risk protection under section 508(b) is
not available; and
`(ii) that is produced for food or fiber.
`(B) CROPS SPECIFICALLY INCLUDED- The term `eligible crop' shall include
floricultural, ornamental nursery, and Christmas tree crops, turfgrass
sod, and industrial crops.
`(3) CAUSE OF LOSS- To qualify for assistance under this section, the losses
of the noninsured commodity shall be due to drought, flood, or other natural
disaster, as determined by the Secretary.
`(b) APPLICATION FOR NONINSURED CROP DISASTER ASSISTANCE-
`(1) TIMELY APPLICATION- To be eligible for assistance under this
section, a producer shall submit an application for noninsured crop disaster
assistance at a local office of the Department. The application shall be
in such form, contain such information, and be submitted at such time as
the Corporation may require.
`(2) RECORDS- A producer shall annually provide records, as required
by the Corporation, of previous crop acreage, acreage yields, and production,
or the producer shall accept a yield under subsection (e)(3) determined
by the Corporation.
`(3) ACREAGE REPORTS- A producer shall provide reports on acreage planted
or prevented from being planted, as required by the Corporation, by the
designated acreage reporting date for the crop and location as established
by the Corporation.
`(c) LOSS REQUIREMENTS-
`(1) REQUIRED AREA LOSS- A producer of an eligible crop shall not
receive noninsured crop disaster assistance unless the average yield for
that crop, or an equivalent measure in the event yield data are not available,
in an area falls below 65 percent of the expected area yield, as established
by the Corporation.
`(2) PREVENTED PLANTING- Subject to paragraph (1), the Corporation 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.
`(3) REDUCED YIELDS- Subject to paragraph (1), the Corporation shall
make a reduced yield noninsured crop disaster assistance payment to a producer
if the total quantity of the eligible crop that the producer is able to
harvest on any farm is, because of drought, flood, or other natural disaster
as determined by the Secretary, less than 50 percent of the expected individual
yield for the crop, as determined by the Corporation, factored for the
interest of the producer for the crop.
`(d) PAYMENT- The Corporation shall make available to a producer eligible
for noninsured assistance under this section a payment computed by multiplying--
`(1) the quantity that is less than 50 percent of the established
yield for the crop; by
`(2)(A) in the case of each of the 1995 through 1998 crop years, 60
percent of the average market price for the crop (or any comparable coverage
determined by the Corporation); or
`(B) in the case of each of the 1999 and subsequent crop years, 55 percent
of the average market price for the crop (or any comparable coverage determined
by the Corporation); by
`(3) a payment rate for the type of crop (as determined by the Corporation)
that--
`(A) in the case of a crop that is produced with a significant and
variable harvesting expense, reflects the decreasing cost incurred in the
production cycle for the crop that is--
`(i) harvested;
`(ii) planted but not harvested; and
`(iii) prevented from being planted because of drought, flood, or other
natural disaster (as determined by the Secretary); and
`(B) in the case of a crop that is not produced with a significant and
variable harvesting expense, is determined by the Corporation.
`(e) YIELD DETERMINATIONS-
`(1) ESTABLISHMENT- The Corporation shall establish farm yields for
purposes of providing noninsured crop disaster assistance under this section.
`(2) ACTUAL PRODUCTION HISTORY- The Corporation shall determine yield
coverage using the actual production history of the producer over a period
of not less than the 4 previous consecutive crop years and not more than
10 consecutive crop years. Subject to paragraph (3), the yield for the
year in which noninsured crop disaster assistance is sought shall be equal
to the average of the actual production history of the producer during
the period considered.
`(3) ASSIGNMENT OF YIELD- If a producer does not submit adequate documentation
of production history to determine a crop yield under paragraph (2), the
Corporation shall assign to the producer a yield equal to not less than
65 percent of the transitional yield of the producer (adjusted to reflect
actual production reflected in the records acceptable to the Corporation
for continuous years), as specified in regulations issued by the Corporation
based on production history requirements.
`(4) PROHIBITION ON ASSIGNED YIELDS IN CERTAIN COUNTIES-
`(A) IN GENERAL-
`(i) DOCUMENTATION- If sufficient data are available to demonstrate
that the acreage of a crop in a county for the crop year has increased
by more than 100 percent over any year in the preceding 7 crop years or,
if data are not available, if the acreage of the crop in the county has
increased significantly from the previous crop years, a producer must provide
such detailed documentation of production costs, acres planted, and yield
for the crop year for which benefits are being claimed as is required by
the Corporation. If the Corporation determines that the documentation provided
is not sufficient, the Corporation may require documenting proof that the
crop, had the crop been harvested, could have been marketed at a reasonable
price.
`(ii) PROHIBITION- Except as provided in subparagraph (B), a producer
who produces a crop on a farm located in a county described in clause (i)
may not obtain an assigned yield.
`(B) EXCEPTION- A crop or a producer shall not be subject to this subsection
if--
`(i) the planted acreage of the producer for the crop has been inspected
by a third party acceptable to the Secretary; or
`(ii)(I) the County Executive Director and the State Executive Director
recommend an exemption from the requirement to the Deputy Administrator
for State and County Operations of the Agricultural Stabilization and Conservation
Service; and
`(II) the Deputy Administrator approves the recommendation.
`(5) LIMITATION ON RECEIPT OF SUBSEQUENT ASSIGNED YIELD- A producer who
receives an assigned yield for the current year of a natural disaster because
required production records were not submitted to the local office of the
Department shall not be eligible for an assigned yield for the year of
the next natural disaster unless the required production records of the
previous 1 or more years (as applicable) are provided to the local office.
`(6) YIELD VARIATIONS DUE TO DIFFERENT FARMING PRACTICES- The Corporation
shall ensure that noninsured crop disaster assistance accurately reflects
significant yield variations due to different farming practices, such as
between irrigated and nonirrigated acreage.
`(f) CONTRACT PAYMENTS- A producer who has received a guaranteed payment
for production, as opposed to delivery, of a crop pursuant to a contract
shall have the production of the producer adjusted upward by the amount
of the production equal to the amount of the contract payment received.
`(g) PAYMENT OF LOSSES- Payments for noninsured crop disaster assistance
losses under this section shall be made from the insurance fund established
under section 516. The losses shall not be included in calculating the
premiums charged to producers for insurance under section 508.
`(h) EXCLUSIONS- Noninsured crop disaster assistance under this section
shall not cover losses due to--
`(1) the neglect or malfeasance of the producer;
`(2) the failure of the producer to reseed to the same crop in those
areas and under such circumstances where it is customary to reseed; or
`(3) the failure of the producer to follow good farming practices, as
determined by the Corporation.'.
SEC. 112. PAYMENT AND INCOME LIMITATIONS.
Section 519 (7 U.S.C. 1519) (as amended by section 111) is further
amended by adding at the end the following new subsection:
`(h) PAYMENT AND INCOME LIMITATIONS-
`(1) DEFINITIONS- As used in this subsection:
`(A) PERSON- The term `person' has the meaning provided the term in
regulations issued by the Secretary. The regulations shall conform, to
the extent practicable, to the regulations defining the term `person' issued
under section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308).
`(B) QUALIFYING GROSS REVENUES- The term `qualifying gross revenues'
means--
`(i) if a majority of the gross revenue of the person is received
from farming, ranching, and forestry operations, the gross revenue from
the farming, ranching, and forestry operations of the person; and
`(ii) if less than a majority of the gross revenue of the person is
received from farming, ranching, and forestry operations, the gross revenue
of the person from all sources.
`(2) PAYMENT LIMITATION- The total amount of payments that a person shall
be entitled to receive annually under this title may not exceed $100,000.
`(3) LIMITATION ON MULTIPLE BENEFITS FOR SAME LOSS- If a producer who
is eligible to receive benefits under catastrophic risk protection under
section 508(b) or noninsured crop disaster assistance under this section
is also eligible to receive assistance for the same loss under any other
program administered by the Secretary, the producer shall be required to
elect whether to receive benefits under this title or under the other program,
but not both. A producer who purchases additional coverage under section
508(c) may also receive assistance for the same loss under other programs
administered by the Secretary, except that the amount received for the
loss under the additional coverage together with the amount received under
the other programs may not exceed the amount of the actual loss of the
producer.
`(4) INCOME LIMITATION- A person who has qualifying gross revenues in
excess of the amount specified in section 2266(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) (as in effect
on November 28, 1990) during the taxable year (as determined by the Secretary)
shall not be eligible to receive any noninsured assistance payment under
this section.
`(5) REGULATIONS- The Secretary shall issue regulations prescribing
such rules as the Secretary determines necessary to ensure a fair and equitable
application of section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308), the general payment limitation regulations of the Secretary, and
the limitations established under this subsection.'.
SEC. 113. PRODUCER ELIGIBILITY.
Section 520 (7 U.S.C. 1520) is amended to read as follows:
`SEC. 520. PRODUCER ELIGIBILITY.
`Except as otherwise provided in this title, a producer shall not
be denied insurance under this title if--
`(1) for purposes of catastrophic risk protection coverage, the producer
is a `person' (as defined by the Secretary); and
`(2) for purposes of any other plan of insurance, the producer is 18
years of age and has a bona fide insurable interest in a crop as an owner-operator,
landlord, tenant, or sharecropper.'.
SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED
ASSISTANCE PAYMENTS.
The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the
following new section:
`SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE
PAYMENTS.
`If the Secretary determines that a person has knowingly adopted a
material scheme or device to obtain catastrophic risk, additional coverage,
or noninsured assistance benefits under this title to which the person
is not entitled, has evaded this title, or has acted with the purposes
of evading this title, the person shall be ineligible to receive all benefits
applicable to the crop year for which the scheme or device was adopted.
The authority provided by this section shall be in addition to, and shall
not supplant, the authority provided by section 506(n).'.
SEC. 115. ELIMINATION OF GENDER REFERENCES.
(a) MANAGEMENT OF CORPORATION- Section 505 (7 U.S.C. 1505) is amended--
(1) in subsection (a), by striking the third sentence and inserting
`The Board shall be appointed by, and hold office at the pleasure of, the
Secretary. The Secretary shall not be a member of the Board.'; and
(2) in subsection (d)--
(A) by striking `upon him'; and
(B) by striking `He shall be appointed by,' and inserting `The manager
shall be appointed by,'.
(b) PERSONNEL- Section 507 (7 U.S.C. 1507) is amended--
(1) in subsection (a), by striking `as he may determine: Provided,
That' and inserting `as the Secretary may determine appropriate. However,';
and
(2) in subsection (d), by striking `as he may request' and inserting
`that the Secretary requests'.
(c) INDEMNITIES EXEMPT FROM LEVY- Section 509 (7 U.S.C. 1509) is amended
by striking `or his estate' and inserting `or the estate of the insured'.
SEC. 116. PREVENTED PLANTING.
(a) IN GENERAL- Effective for the 1994 crop year, a producer described
in subsection (b) shall receive compensation under the prevented planting
coverage policy provision described in subsection (b)(1) by--
(1) obtaining from the Secretary of Agriculture the applicable amount
that is payable under the conserving use program described in subsection
(b)(4); and
(2) obtaining from the Federal Crop Insurance Corporation the amount
that is equal to the difference between--
(A) the amount that is payable under the conserving use program; and
(B) the amount that is payable under the prevented planting coverage
policy.
(b) ELIGIBLE PRODUCERS- Subsection (a) shall apply to a producer who--
(1) purchased a prevented planting policy for the 1994 crop year from
the Federal Crop Insurance Corporation prior to the spring sales closing
date for the 1994 crop year;
(2) is unable to plant a crop due to major, widespread flooding in the
Midwest, or excessive ground moisture, that occurred prior to the spring
sales closing date for the 1994 crop year;
(3) had a reasonable expectation of planting a crop on the prevented
planting acreage for the 1994 crop year; and
(4) participates in a conserving use program established for the 1994
crop of wheat, feed grains, upland cotton, or rice established under section
107B(c)(1)(E), 105B(c)(1)(E), 103B(c)(1)(D), or 101B(c)(1)(D), respectively,
of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E), 1444f(c)(1)(E),
1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
(c) OILSEED PREVENTED PLANTING PAYMENTS-
(1) IN GENERAL- Effective for the 1994 crop year, a producer of a
crop of oilseeds (as defined in section 205(a) of the Agricultural Act
of 1949 (7 U.S.C. 1446f(a))) shall receive a prevented planting payment
for the crop if the requirements of paragraphs (1), (2), and (3) of subsection
(b) are satisfied.
(2) SOURCE OF PAYMENT- The total amount of payments required under this
subsection shall be made by the Federal Crop Insurance Corporation.
(d) PAYMENT- A payment under this section may not be made before October
1, 1994.
SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE
INFORMATION.
Not later than 180 days after the date of enactment of this Act and
at the end of each of the 2 1-year periods thereafter, the Federal Crop
Insurance Corporation shall submit a report to Congress containing a plan
to implement a sound program for producer education regarding the crop
insurance program and for the dissemination of crop insurance information
to producers, as required by section 508(a)(5) of the Federal Crop Insurance
Act (as amended by section 106).
SEC. 118. CROP INSURANCE PROVIDER EVALUATION.
(a) IN GENERAL- The Comptroller General of the United States and the
Federal Crop Insurance Corporation (referred to in this section as the
`Corporation') shall jointly evaluate the financial arrangement between
the Corporation and approved insurance providers to determine the quality,
costs, and efficiencies of providing the benefits of multiple peril crop
insurance to producers of agricultural commodities covered under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.).
(b) COLLECTION OF INFORMATION AND PROPOSALS- The Corporation shall require
private insurance providers and agents to supply, and the private insurance
providers and agents shall supply, records and information necessary to
make the determinations and evaluations required under this section. The
Corporation shall solicit from the approved insurance providers and agents
proposals for modifying or altering the requirements, regulations, procedures,
and processes related to implementing the Federal Crop Insurance Act to
reduce the operating and administrative costs of the providers and agents.
(c) INITIAL REPORT- Not later than 180 days after receipt of information
and cost-reduction proposals under subsection (b), the Corporation shall
evaluate the information and proposals obtained and report the results
of the evaluation to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(d) FINAL REPORT- Not later than 2 years after the date of enactment
of this Act, the Comptroller General and the Corporation shall submit a
final report that provides the evaluation required under subsection (a)
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate. In making
the evaluation, the Comptroller General and the Corporation shall--
(1) consider the changes made by the Corporation in response to increased
program participation resulting from the enactment of this Act;
(2) include an evaluation and opinion of the accuracy and reasonableness
of--
(A) the average actual costs for approved insurance providers to deliver
multiple peril crop insurance;
(B) the cost per policy of complying with the requirements, regulations,
procedures, and processes of the Federal Crop Insurance Act;
(C) the cost differences for various provider firm sizes and any business
delivered by the Federal Government;
(D) the adequacy of the standard reimbursement for potential new providers;
and
(E) the identification of any new costs related to the enactment of
this Act not previously identified in the information reported by the providers;
(3) compare delivery costs of multiple peril crop insurance to other insurance
coverages that the provider may sell and determine the extent, if any,
to which any funds provided to carry out the Federal Crop Insurance Act
are being used to fund any other business enterprise operated by the provider;
(4)(A) assess alternative methods for reimbursing providers for reasonable
and necessary expenses associated with delivery of multiple peril crop
insurance;
(B) recommend changes under this paragraph that reasonably demonstrate
the need to achieve the greatest operating efficiencies on the part of
the provider and the Corporation has been recognized; and
(C) identify areas for improved operating efficiencies, if any, in the
requirements made by the Corporation for compliance and program integrity;
(5) assess the potential for alternative forms of reinsurance arrangements
for providers of different firm sizes, taking into consideration--
(A) the need to achieve a reasonable return on the capital of the
provider compared to other lines of insurance;
(B) the relative risk borne by the provider for the different lines
of insurance;
(C) the availability and price of commercial reinsurance; and
(D) any additional costs that may be incurred by the Federal Government
in carrying out the Federal Crop Insurance Act; and
(6) include an analysis of the effect of the current or proposed reinsurance
arrangements on providers having different business levels.
(e) INFORMATION-
(1) PRIVACY- In conducting the evaluation required by this section,
the Comptroller General and the Corporation shall maintain the privacy
of proprietary information.
(2) SUBPOENAS- The Comptroller General shall have the power to subpoena
information relevant to the evaluation required by this section from any
private insurance provider. The Comptroller General shall allow the Corporation
access to the information subpoenaed taking into consideration the necessity
of preserving the privacy of proprietary information.
SEC. 119. CONFORMING AMENDMENTS.
(a) PRICE SUPPORT PROGRAMS-
(1) IN GENERAL- Title IV of the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.) is amended by adding at the end the following new section:
`SEC. 427. CROP INSURANCE REQUIREMENT.
`As a condition of receiving any benefit (including payments) under
title I or II for each of the 1995 and subsequent crops of tobacco, rice,
extra long staple cotton, upland cotton, feed grains, wheat, peanuts, oilseeds,
and sugar, a producer must obtain at least catastrophic risk protection
insurance coverage under section 508 of the Federal Crop Insurance Act
(7 U.S.C. 1508) for the crop and crop year for which the benefit is sought,
if the coverage is offered by the Corporation.'.
(2) RICE- Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) is amended--
(A) in paragraph (1), by striking subparagraph (F); and
(B) by striking paragraph (2) and inserting the following new paragraph:
`(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk
protection insurance coverage in accordance with section 427.'.
(3) UPLAND COTTON- Section 103B(c) of such Act (7 U.S.C. 1444-2(c))
is amended--
(A) in paragraph (1), by striking subparagraph (F); and
(B) by striking paragraph (2) and inserting the following new paragraph:
`(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk
protection insurance coverage in accordance with section 427.'.
(4) FEED GRAINS- Section 105B(c) of such Act (7 U.S.C. 1444f(c)) is
amended--
(A) in paragraph (1), by striking subparagraph (G); and
(B) by striking paragraph (2) and inserting the following new paragraph:
`(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk
protection insurance coverage in accordance with section 427.'.
(5) WHEAT- Section 107B(c) of such Act (7 U.S.C. 1445b-3a(c)) is amended--
(A) in paragraph (1), by striking subparagraph (G); and
(B) by striking paragraph (2) and inserting the following new paragraph:
`(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk
protection insurance coverage in accordance with section 427.'.
(6) DISASTER PAYMENTS- Section 208 of such Act (7 U.S.C. 1446i) is repealed.
(b) FARMERS HOME ADMINISTRATION PROGRAMS- The Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end
the following new section:
`SEC. 371. CROP INSURANCE REQUIREMENT.
`(a) IN GENERAL- As a condition of obtaining any benefit (including
a direct loan, loan guarantee, or payment) described in subsection (b),
a borrower must obtain at least catastrophic risk protection insurance
coverage under section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) for the crop and crop year for which the benefit is sought, if the
coverage is offered by the Corporation.
`(b) APPLICABLE BENEFITS- Subsection (a) shall apply to--
`(1) a farm ownership loan (FO) under section 303;
`(2) an operating loan (OL) under section 312; and
`(3) an emergency loan (EM) under section 321.'.
(c) DISASTER ASSISTANCE- Subtitle B of title XXII of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) is amended by
striking chapter 3.
(d) EMERGENCY APPROPRIATIONS-
(1) IN GENERAL- Effective January 1, 1995, section 251(b)(2)(D)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(D)(i)) is amended by adding at the end the following new sentence:
`This subparagraph shall not apply to appropriations to cover agricultural
crop disaster assistance.'.
(2) EMERGENCY LEGISLATION- Effective January 1, 1995, section 252(e)
of such Act (2 U.S.C. 902(e)) is amended by adding at the end the following
new sentence: `This subsection shall not apply to direct spending provisions
to cover agricultural crop disaster assistance.'.
(e) FALSE STATEMENTS- Section 1014 of title 18, United States Code, is
amended by inserting `or a company the Corporation reinsures' after `Federal
Crop Insurance Corporation'.
(f) TECHNICAL AMENDMENTS-
(1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) is amended
by striking `508(f)' and inserting `508(j)'.
(2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) is amended
by striking `508(b)' and inserting `508(h)'.
(3) Section 518 (7 U.S.C. 1518) is amended by striking `(k)' and inserting
`(m)'.
SEC. 120. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and the amendments
made by this title shall become effective on the date of enactment of this
Act and shall apply to the provision of crop insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop
year. With respect to the 1994 crop year, the Federal Crop Insurance Act
(as in effect on the day before the date of enactment of this Act) shall
continue to apply.
TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION
SEC. 201. SHORT TITLE.
(a) SHORT TITLE- This title may be cited as the `Department of Agriculture
Reorganization Act of 1994'.
SEC. 202. PURPOSE.
The purpose of this title is to provide the Secretary of Agriculture
with the necessary authority to streamline and reorganize the Department
of Agriculture to achieve greater efficiency, effectiveness, and economies
in the organization and management of the programs and activities carried
out by the Department.
SEC. 203. DEFINITIONS.
Except where the context requires otherwise, for purposes of this
title:
(1) DEPARTMENT- The term `Department' means the Department of Agriculture.
(2) NATIONAL APPEALS DIVISION- The term `National Appeals Division'
means the National Appeals Division of the Department established under
section 272.
(3) SECRETARY- The term `Secretary' means the Secretary of Agriculture.
(4) FUNCTION- The term `function' means an administrative, financial,
or regulatory activity of an agency, office, officer, or employee of the
Department.
Subtitle A--General Reorganization Authorities
SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF AGRICULTURE.
(a) TRANSFER OF FUNCTIONS- Except as provided in subsection (b), there
are transferred to the Secretary of Agriculture all functions of all agencies,
offices, officers, and employees of the Department that are not already
vested in the Secretary on the date of the enactment of this Act.
(b) EXCEPTIONS- Subsection (a) shall not apply to the following functions:
(1) Functions vested by subchapter II of chapter 5 of title 5, United
States Code, in administrative law judges employed by the Department.
(2) Functions vested by the Inspector General Act of 1978 (5 U.S.C.
App.) in the Inspector General of the Department.
(3) Functions vested by chapter 9 of title 31, United States Code, in
the Chief Financial Officer of the Department.
(4) Functions vested in the corporations of the Department or the boards
of directors and officers of such corporations.
(5) Functions vested in the Alternative Agricultural Research and Commercialization
Board by the Alternative Agricultural Research and Commercialization Act
of 1990 (7 U.S.C. 5901 et seq.).
SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED FUNCTIONS.
(a) DELEGATION OF AUTHORITY-
(1) DELEGATION AUTHORIZED- Subject to paragraph (2), the Secretary
may delegate to any agency, office, officer, or employee of the Department
the authority to perform any function transferred to the Secretary under
section 211(a) or any other function vested in the Secretary as of the
date of the enactment of this Act. The authority provided in the preceding
sentence includes the authority to establish, consolidate, alter, or discontinue
any agency, office, or other administrative unit of the Department.
(2) CONDITION ON AUTHORITY- The delegation authority provided by paragraph
(1) shall be subject to--
(A) sections 232, 251(d), 273, and 304 and subsections (a) and (b)(1)
of section 261;
(B) sections 502 and 503 of the Agricultural Trade Act of 1978 (7 U.S.C.
5692 and 5693); and
(C) section 8(b)(5) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)(5)).
(b) COST-BENEFIT ANALYSIS REQUIRED FOR NAME CHANGE-
(1) ANALYSIS REQUIRED- Except as provided in paragraph (2), the Secretary
shall conduct a cost-benefit analysis before changing the name of any agency,
office, division, or other unit of the Department to ensure that the benefits
to be derived from changing the name of the agency, office, division, or
other unit outweigh the expense of executing the name change.
(2) EXCEPTION- Paragraph (1) shall not apply with respect to any name
change required or authorized by this title.
(c) PUBLIC COMMENT ON PROPOSED REORGANIZATION- To the extent that the implementation
of the authority provided to the Secretary by this title to reorganize
the Department involves the creation of new agencies or offices within
the Department or the delegation of major functions or major groups of
functions to any agency or office of the Department (or the officers or
employees of such agency or office), the Secretary shall, to the extent
considered practicable by the Secretary--
(1) give appropriate advance public notice of the proposed reorganization
action or delegation; and
(2) afford appropriate opportunity for interested parties to comment
on the proposed reorganization action or delegation.
(d) INTERAGENCY TRANSFER OF RECORDS, PROPERTY, PERSONNEL, AND FUNDS-
(1) RELATED TRANSFERS- Subject to paragraph (2), as part of the transfer
or delegation of a function of the Department made or authorized by this
title, the Secretary may transfer within the Department--
(A) any of the records, property, or personnel affected by the transfer
or delegation of the function; and
(B) unexpended balances (available or to be made available for use in
connection with the transferred or delegated function) of appropriations,
allocations, or other funds of the Department.
(2) APPLICABLE LAW RELATING TO FUNDS TRANSFER- Section 1531 of title 31,
United States Code, shall apply to any transfer of funds under paragraph
(1).
(e) EXHAUSTION OF ADMINISTRATIVE APPEALS- Notwithstanding any other provision
of law, a person shall exhaust all administrative appeal procedures established
by the Secretary or required by law before the person may bring an action
in a court of competent jurisdiction against--
(1) the Secretary;
(2) the Department; or
(3) an agency, office, officer, or employee of the Department.
SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.
(a) DEFINITIONS- For purposes of this section:
(1) HEADQUARTERS OFFICES- The term `headquarters offices', with respect
to agencies, offices, or other administrative units of the Department,
means the offices, functions, and employee positions that are located or
performed--
(A) in Washington, District of Columbia; or
(B) in such other locations as are identified by the Secretary for purposes
of this section.
(2) FIELD STRUCTURE- The term `field structure' means the offices, functions,
and employee positions of all agencies, offices, or other administrative
units of the Department, other than the headquarters offices, except that
the term does not include State, county, or area committees established
under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)). The term includes the physical and geographic locations
of such agencies, offices, or other administrative units.
(b) NUMBER OF REDUCTIONS REQUIRED- The Secretary shall achieve Federal
employee reductions of at least 7,500 staff years within the Department
by the end of fiscal year 1999. Reductions in the number of full-time equivalent
positions within the Department achieved under section 5 of the Federal
Workforce Restructuring Act of 1994 (Public Law 103-226; 108 Stat. 115;
5 U.S.C. 3101 note) shall be counted toward the employee reductions required
under this section.
(c) EMPHASIS ON HEADQUARTERS OFFICES REDUCTIONS- In achieving the employee
reductions required by subsection (b), the Secretary shall pursue a goal
so that the percentage of the total number of employee staff years reduced
in headquarters offices is at least twice the percentage of the total number
of employee staff years reduced in the field structure.
(d) SCHEDULE- The personnel reductions in headquarters offices and in
the field structure should be accomplished concurrently in a manner determined
by the Secretary.
SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.
Subject to the availability of appropriated funds for this purpose,
the Secretary shall develop and carry out a plan to consolidate offices
located in Washington, District of Columbia, of agencies, offices, and
other administrative units of the Department.
SEC. 215. COMBINATION OF FIELD OFFICES.
(a) COMBINATION OF OFFICES REQUIRED- Where practicable and to the
extent consistent with efficient, effective, and improved service, the
Secretary shall combine field offices of agencies within the Department
to reduce personnel and duplicative overhead expenses.
(b) JOINT USE OF RESOURCES AND OFFICES REQUIRED- When two or more agencies
of the Department share a common field office, the Secretary shall require
the agencies to jointly use office space, equipment, office supplies, administrative
personnel, and clerical personnel associated with that field office.
SEC. 216. IMPROVEMENT OF INFORMATION SHARING.
Whenever the Secretary procures or uses computer systems, as may be
provided for in advance in appropriations Acts, the Secretary shall do
so in a manner that enhances efficiency, productivity, and client services
and is consistent with the goal of promoting computer information sharing
among agencies of the Department.
SEC. 217. REPORTS BY THE SECRETARY.
(a) IN GENERAL- Subject to subsection (b), notwithstanding any other
provision of law, the Secretary may, but shall not be required to, prepare
and submit any report solely to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate.
(b) LIMITATION- For each fiscal year, the Secretary may not prepare
and submit more than 30 reports referred to in subsection (a).
(c) SELECTION OF REPORTS- In consultation with the Committee on Agriculture
of the House of Representatives and the Com- mittee on Agriculture, Nutrition,
and Forestry of the Senate, the Secretary shall determine which reports,
if any, the Secretary will prepare and submit in accordance with subsection
(b).
SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.
(a) AUTHORIZATION- The Secretary is authorized to establish in the
Department the positions of--
(1) Assistant Secretary of Agriculture for Congressional Relations;
(2) Assistant Secretary of Agriculture for Administration; and
(3) Assistant Secretary of Agriculture for Marketing and Regulatory
Programs.
(b) CONFIRMATION REQUIRED- If the Secretary establishes any position of
Assistant Secretary authorized under subsection (a), the Assistant Secretary
shall be appointed by the President, by and with the advice and consent
of the Senate.
(c) SUCCESSION- Any official who is serving as Assistant Secretary of
Agriculture for Administration or Assistant Secretary of Agriculture for
Congressional Relations on the date of the enactment of this Act and who
was appointed as such Assistant Secretary by the President, by and with
the advice and consent of the Senate, shall not be required to be reappointed
under subsection (b) to the successor position authorized under subsection
(a) if the Secretary establishes the position, and the official occupies
the new position, within 180 days after the date of the enactment of this
Act (or such later date set by the Secretary if litigation delays rapid
succession).
(d) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code,
is amended by striking `Assistant Secretaries of Agriculture (7).' and
inserting `Assistant Secretaries of Agriculture (3).'.
(e) REPEAL OF SUPERSEDED PROVISIONS REGARDING ASSISTANT SECRETARIES-
The following provisions of law are repealed:
(1) Section 2 of Reorganization Plan No. 2 of 1953 (5 U.S.C. App;
7 U.S.C. 2201 note).
(2) Section 2 of the Act entitled `An Act to enlarge the powers and
duties of the Department of Agriculture and to create an Executive Department
to be known as the Department of Agriculture.', approved February 9, 1889
(7 U.S.C. 2212).
(3) The first paragraph designated `OFFICE OF THE SECRETARY:' under
the heading `DEPARTMENT OF AGRICULTURE' of the Act entitled `An Act making
appropriations for the Department of Agriculture for the fiscal year ending
June thirtieth, nineteen hundred and seven.', approved June 30, 1906 (34
Stat. 670; 7 U.S.C. 2212).
(4) Section 604(a) of the Rural Development Act of 1972 (7 U.S.C. 2212a).
(5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).
(6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).
(7) Section 1413(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).
SEC. 219. PAY INCREASES PROHIBITED.
The compensation of any officer or employee of the Department on the
date of the enactment of this Act shall not be increased as a result of
the enactment of this title.
Subtitle B--Farm and Foreign Agricultural Services
SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN
AGRICULTURAL SERVICES.
(a) AUTHORIZATION- The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Farm and
Foreign Agricultural Services.
(b) CONFIRMATION REQUIRED- If the Secretary establishes the position
of Under Secretary of Agriculture for Farm and Foreign Agricultural Services
authorized under subsection (a), the Under Secretary shall be appointed
by the President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY-
(1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate
to the Under Secretary of Agriculture for Farm and Foreign Agricultural
Services those functions under the jurisdiction of the Department that
are related to farm and foreign agricultural services.
(2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Farm
and Foreign Agricultural Services shall perform such other functions as
may be required by law or prescribed by the Secretary.
(d) SUCCESSION- Any official who is serving as Under Secretary of Agriculture
for International Affairs and Commodity Programs on the date of the enactment
of this Act and who was appointed by the President, by and with the advice
and consent of the Senate, shall not be required to be reappointed under
subsection (b) to the successor position authorized under subsection (a)
if the Secretary establishes the position, and the official occupies the
new position, within 180 days after the date of the enactment of this Act
(or such later date set by the Secretary if litigation delays rapid succession).
(e) CONFORMING AMENDMENTS-
(1) EXISTING POSITION- Section 501 of the Agricultural Trade Act of
1978 (7 U.S.C. 5691), relating to the Under Secretary of Agriculture for
International Affairs and Commodity Programs, is repealed.
(2) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code,
is amended by striking `Under Secretary of Agriculture for International
Affairs and Commodity Programs.' and inserting `Under Secretary of Agriculture
for Farm and Foreign Agricultural Services.'.
SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.
(a) ESTABLISHMENT- The Secretary is authorized to establish and maintain
in the Department a Consolidated Farm Service Agency.
(b) FUNCTIONS OF CONSOLIDATED FARM SERVICE AGENCY- If the Secretary
establishes the Consolidated Farm Service Agency under subsection (a),
the Secretary is authorized to assign to the Agency jurisdiction over the
following functions:
(1) Agricultural price and income support programs, production adjustment
programs, and related programs.
(2) General supervision of the Federal Crop Insurance Corporation.
(3) Agricultural credit programs assigned before the date of the enactment
of this Act by law to the Farmers Home Administration (including farm ownership
and operating, emergency, and disaster loan programs) and other lending
programs for agricultural producers and others engaged in the production
of agricultural commodities.
(4) Subchapter B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831-3836) and the agricultural conservation
program under the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590g et seq.).
(5) Such other functions as the Secretary considers appropriate, except
for those programs assigned by the Secretary to the Natural Resources Conservation
Service or another agency of the Department under section 246(b).
(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNCTIONS- In carrying
out the programs specified in subsection (b)(4), the Secretary shall--
(1) acting on the recommendations of the Consolidated Farm Service
Agency, with the concurrence of the Natural Resources Conservation Service,
issue regulations to carry out such programs;
(2) ensure that the Consolidated Farm Service Agency, in establishing
policies, priorities, and guidelines for such programs, does so with the
concurrence of the Natural Resources Conservation Service at national,
State, and local levels;
(3) ensure that, in reaching such concurrence at the local level, the
Natural Resources Conservation Service works in cooperation with Soil and
Water Conservation Districts or similar organizations established under
State law;
(4) ensure that officials of county and area committees established
under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)) meet annually with officials of such Districts or
similar organizations to consider local conservation priorities and guidelines;
and
(5) take steps to ensure that the concurrence process does not interfere
with the effective delivery of such programs.
(d) JURISDICTION OVER CONSERVATION PROGRAM APPEALS-
(1) IN GENERAL- Until such time as an adverse decision described in
this paragraph is referred to the National Appeals Division for consideration,
the Consolidated Farm Service Agency shall have initial jurisdiction over
any administrative appeal resulting from an adverse decision made under
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.), including
an adverse decision involving technical determinations made by the Natural
Resources Conservation Service.
(2) TREATMENT OF TECHNICAL DETERMINATION- With respect to administrative
appeals involving a technical determination made by the Natural Resources
Conservation Service, the Consolidated Farm Service Agency, by rule with
the concurrence of the Natural Resources Conservation Service, shall establish
procedures for obtaining review by the Natural Resources Conservation Service
of the technical determinations involved. Such rules shall ensure that
technical criteria established by the Natural Resources Conservation Service
shall be used by the Consolidated Farm Service Agency as the basis for
any decisions regarding technical determinations. If no review is requested,
the technical determination of the Natural Resources Conservation Service
shall be the technical basis for any decision rendered by a county or area
committee established under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)). If the committee requests
a review by the Natural Resources Conservation Service of a wetlands determination
of the Service, the Consolidated Farm Service Agency shall consult with
other Federal agencies whenever required by law or under a memorandum of
agreement in existence on the date of the enactment of this Act.
(3) REINSTATEMENT OF PROGRAM BENEFITS- Rules issued to carry out this
subsection shall provide for the prompt reinstatement of benefits to a
producer who is determined in an administrative appeal to meet the requirements
of title XII of the Food Security Act of 1985 applicable to the producer.
(e) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES-
(1) USE AUTHORIZED- In the implementation of programs and activities
assigned to the Consolidated Farm Service Agency, the Secretary may use
interchangeably in local offices of the Agency both Federal employees of
the Department and non-Federal employees of county and area committees
established under section 8(b)(5) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)(5)).
(2) EXCEPTION- Notwithstanding paragraph (1), no personnel action (as
defined in section 2302(a)(2)(A) of title 5, United States Code) may be
taken with respect to a Federal employee unless such action is taken by
another Federal employee.
(f) COLLOCATION- To the maximum extent practicable, the Secretary shall
collocate county offices of the Consolidated Farm Service Agency with county
offices of the Natural Resources Conservation Service in order to--
(1) maximize savings from shared equipment, office space, and administrative
support;
(2) simplify paperwork and regulatory requirements;
(3) provide improved services to agricultural producers and landowners
affected by programs administered by the Agency and the Service; and
(4) achieve computer compatibility between the Agency and the Service
to maximize efficiency and savings.
(g) SAVINGS PROVISION- For purposes of subsections (c) through (f) of this
section:
(1) A reference to the `Consolidated Farm Service Agency' includes
any other office, agency, or administrative unit of the Department assigned
the functions authorized for the Consolidated Farm Service Agency under
this section.
(2) A reference to the `Natural Resources Conservation Service' includes
any other office, agency, or administrative unit of the Department assigned
the functions authorized for the Natural Resources Conservation Service
under section 246(b).
(h) CONFORMING AMENDMENT- Section 331(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1981(a)) is amended by striking `assets to the
Farmers Home Administration' and all that follows through the period at
the end of the subsection and inserting `assets to such officers or agencies
of the Department of Agriculture as the Secretary considers appropriate.'.
SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.
(a) COMMITTEES UNDER THE SOIL CONSERVATION AND DOMESTIC ALLOTMENT
ACT- Section 8(b) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) is amended--
(1) by inserting `(1)' after `(b)';
(2) by designating the second through eighth undesignated paragraphs
as paragraphs (2) through (8), respectively; and
(3) by striking paragraph (5) (as so designated) and inserting the following
new paragraph:
`(5) STATE, COUNTY, AND AREA COMMITTEES-
`(A) APPOINTMENT OF STATE COMMITTEES- The Secretary shall appoint
in each State a State committee composed of not fewer than 3 nor more than
5 members who are fairly representative of the farmers in the State. The
members of a State committee shall serve at the pleasure of the Secretary
for such term as the Secretary may establish.
`(B) ESTABLISHMENT OF COUNTY, AREA, OR LOCAL COMMITTEES- (i) In each
county or area in which activities are carried out under this section,
the Secretary shall establish a county or area committee.
`(ii) Any such committee shall consist of not fewer than 3 nor more
than 5 members who are fairly representative of the agricultural producers
in the county or area and who shall be elected by the agricultural producers
in such county or area under such procedures as the Secretary may prescribe.
`(iii) The Secretary may designate local administrative areas within
the county or larger area covered by a committee established under clause
(i). Only agricultural producers within a local administrative area who
participate or cooperate in programs administered within their area shall
be eligible for nomination and election to the local committee for that
area, under such regulations as the Secretary may prescribe.
`(iv) The Secretary shall solicit and accept nominations from organizations
representing the interests of socially disadvantaged groups (as defined
in section 355(e)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2003(e)(1)).
`(v) Members of each county, area, or local committee shall serve for
terms not to exceed 3 years.
`(C) TERMINATION OR COMBINATION OF COMMITTEES- The Secretary may not
terminate a county or area committee or combine or consolidate two or more
county or area committees unless--
`(i) the Secretary first notifies the committee or committees involved
of the proposed action; and
`(ii) the State committee of the State in which the affected counties
are located approves of such action in a vote taken after the end of the
60-day period beginning on the date the notification is received.
`(D) USE OF COMMITTEES- The Secretary shall use the services of such committees
in carrying out programs under this section and the agricultural credit
programs under the Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.) and in considering administrative appeals as provided by
section 226(d) of the Department of Agriculture Reorganization Act of 1994.
The Secretary may use the services of such committees in carrying out programs
under other authorities administered by the Secretary.
`(E) REGULATIONS- The Secretary shall issue such regulations as the
Secretary considers necessary relating to the selection and exercise of
the functions of the respective committees, and to the administration through
such committees of the programs described in subparagraph (D). Pursuant
to such regulations, each county and area committee shall select an executive
director for the area or county. Such selection shall be made in the same
manner as provided for the selection of the county executive director under
section 7.21(b)(2) of title 7, Code of Federal Regulations, as in effect
on January 1, 1994. Regulations governing payments or grants under this
subsection shall be as simple and direct as possible, and, whenever practicable,
they shall be classified on the following two bases:
`(i) Soil-depleting practices.
`(ii) Soil-building practices.
`(F) MANDATORY DUTIES OF SECRETARY- In carrying out this section, the Secretary
shall--
`(i) insofar as practicable, protect the interests of tenants and
sharecroppers;
`(ii) accord such encouragement to producer-owned and producer-controlled
cooperative associations as will be in harmony with the policy toward cooperative
associations set forth in Federal laws and as will tend to promote efficient
methods of marketing and distribution;
`(iii) in every practicable manner, protect the interests of small producers;
and
`(iv) in every practical way, encourage and provide for soil-conserving
and soil-rebuilding practices.
`(G) DISCRETIONARY AUTHORITIES OF SECRETARY- In carrying out this section,
the Secretary may use other approved agencies.
`(H) LIMITATIONS- In carrying out this section, the Secretary shall
not have the authority to acquire any land or any right or interest in
land.'.
(b) ELIMINATION OF FMHA COUNTY COMMITTEES- The Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) is amended--
(1) by striking section 332 (7 U.S.C. 1982); and
(2) in section 333 (7 U.S.C. 1983)--
(A) by striking paragraph (2); and
(B) redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3),
and (4), respectively.
Subtitle C--Rural Economic and Community Development
SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC
AND COMMUNITY DEVELOPMENT.
(a) AUTHORIZATION- The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Rural Economic
and Community Development.
(b) CONFIRMATION REQUIRED- If the Secretary establishes the position
of Under Secretary of Agriculture for Rural Economic and Community Development
authorized under subsection (a), the Under Secretary shall be appointed
by the President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY-
(1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate
to the Under Secretary of Agriculture for Rural Economic and Community
Development those functions under the jurisdiction of the Department that
are related to rural economic and community development.
(2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Rural
Economic and Community Development shall perform such other functions as
may be required by law or prescribed by the Secretary.
(d) SUCCESSION- Any official who is serving as Under Secretary of Agriculture
for Small Community and Rural Development on the date of the enactment
of this Act and who was appointed by the President, by and with the advice
and consent of the Senate, shall not be required to be reappointed under
subsection (b) to the successor position authorized under subsection (a)
if the Secretary establishes the position, and the official occupies the
new position, within 180 days after the date of the enactment of this Act
(or such later date set by the Secretary if litigation delays rapid succession).
(e) LOAN APPROVAL AUTHORITY- Approval authority for loans and loan guarantees
in connection with the electric and telephone loan and loan guarantee programs
authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)
shall not be transferred to, or conditioned on review of, a State director
or other employee whose primary duty is not the review and approval of
such loans or the provision of assistance to such borrowers.
(f) CONFORMING AMENDMENTS-
(1) EXISTING POSITION- Section 3 of the Rural Development Policy Act
of 1980 (7 U.S.C. 2211b) is amended by striking subsection (a).
(2) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code,
is amended by striking `Under Secretary of Agriculture for Small Community
and Rural Development.' and inserting `Under Secretary of Agriculture for
Rural Economic and Community Development.'.
(3) REPEAL OF RURAL DEVELOPMENT ADMINISTRATION- Section 364 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2006f) is repealed.
SEC. 232. RURAL UTILITIES SERVICE.
(a) ESTABLISHMENT REQUIRED- The Secretary shall establish and maintain
within the Department the Rural Utilities Service and assign to the Service
such functions as the Secretary considers appropriate.
(b) ADMINISTRATOR-
(1) APPOINTMENT- The Rural Utilities Service shall be headed by an
Administrator who shall be appointed by the President, by and with the
advice and consent of the Senate.
(2) SUCCESSION- Any official who is serving as Administrator of the
Rural Electrification Administration on the date of the enactment of this
Act and who was appointed by the President, by and with the advice and
consent of the Senate--
(A) may be considered to be serving in the successor position established
under paragraph (1); and
(B) shall not be required to be reappointed to that position by reason
of the enactment of this Act.
(3) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code, is
amended by adding at the end the following:
`Administrator, Rural Utilities Service, Department of Agriculture.'.
(c) FUNCTIONS- The Secretary shall carry out through the Rural Utilities
Service the following functions that are under the jurisdiction of the
Department:
(1) Electric and telephone loan programs and water and waste facility
activities authorized by law, including--
(A) the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.);
and
(B) section 2322 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 1926-1); and
(2) Water and waste facility programs and activities authorized by law,
including--
(A) sections 306, 306A, 306B, and 306C, the provisions of sections
309 and 309A relating to assets, terms, and conditions of water and sewer
programs, section 310B(b)(2), and the amendment made by section 342 of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1926, 1926a,
1926b, 1926c, 1929, 1929a, 1932(b)(2), and 1013a); and
(B) section 2324 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 1926 note).
SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.
(a) ESTABLISHMENT AUTHORIZED- Notwithstanding any other provision
of law, the Secretary is authorized to establish and maintain within the
Department the Rural Housing and Community Development Service and to assign
to the Service such functions as the Secretary considers appropriate.
(b) FUNCTIONS- If the Secretary establishes the Rural Housing and Community
Development Service under subsection (a), the Secretary is authorized to
assign to the Service jurisdiction over the following:
(1) Programs and activities under title V of the Housing Act of 1949
(42 U.S.C. 1471 et seq.).
(2) Programs and activities authorized under section 310B(i) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(i)) and related
provisions of law.
(3) Programs and activities that relate to rural community lending programs,
including programs authorized by sections 365 through 369 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2008-2008d).
SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE.
(a) ESTABLISHMENT AUTHORIZED- Notwithstanding any other provision
of law, the Secretary is authorized to establish and maintain within the
Department the Rural Business and Cooperative Development Service and to
assign to the Service such functions as the Secretary considers appropriate.
(b) FUNCTIONS- If the Secretary establishes the Rural Business and Cooperative
Development Service under subsection (a), the Secretary is authorized to
assign to the Service jurisdiction over the following:
(1) Section 313 and title V of the Rural Electrification Act of 1936
(7 U.S.C. 940c and 950aa et seq.).
(2) Subtitle G of title XVI of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5901 et seq.).
(3) Sections 306(a)(1) and 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(1) and 1932).
(4) Section 1323 of the Food Security Act of 1985 (Public Law 99-198;
7 U.S.C. 1932 note).
(5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 U.S.C. 451
et seq.).
SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION
ADMINISTRATION.
(a) AMENDMENTS TO RURAL ELECTRIFICATION ACT OF 1936- The Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.) is amended--
(1) by striking the first section (7 U.S.C. 901) and inserting the
following:
`SECTION 1. SHORT TITLE.
`This Act may be cited as the `Rural Electrification Act of 1936'.';
(2) in section 2(a) (7 U.S.C. 902(a)), by striking `Administrator'
and inserting `Secretary of Agriculture';
(3) in section 3(a) (7 U.S.C. 903(a))--
(A) by striking `Administrator, upon the request and approval of the
Secretary of Agriculture,' and inserting `Secretary'; and
(B) by striking `Administrator appointed pursuant to the provisions
of this Act or from the Administrator of the Rural Electrification Administration
established by Executive Order Numbered 7037' and inserting `Secretary';
(4) in section 8 (7 U.S.C. 908)--
(A) by striking `Administrator authorized to be appointed by this
Act' and inserting `Secretary'; and
(B) by striking `Rural Electrification Administration created by this
Act' and inserting `Secretary';
(5) by striking section 11A (7 U.S.C. 911a);
(6) in section 13 (7 U.S.C. 913), by inserting before the period at
the end the following: `; and the term `Secretary' shall be deemed to mean
the Secretary of Agriculture';
(7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) (7 U.S.C.
927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking `Rural Electrification
Administration' each place it appears and inserting `Secretary';
(8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C. 935(c)(2)(C)(ii)(II)
and 936e(d)), by striking `ADMINISTRATOR' and inserting `SECRETARY';
(9) in section 403(b) (7 U.S.C. 943(b)), by striking `Rural Electrification
Administration or of any other agency of the Department of Agriculture,'
and inserting `Secretary,';
(10) in section 404 (7 U.S.C. 944), by striking `the Administrator of
the Rural Electrification Administration' and inserting `the Secretary
shall designate an official of the Department of Agriculture who';
(11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), by striking
`Administrator of the Rural Electrification Administration' each place
it appears and inserting `Secretary';
(12) in the heading of section 501 (7 U.S.C. 950aa), by striking `of
rea administrator'; and
(13) except as otherwise provided in this subsection, by striking `Administrator'
each place it appears in such Act and inserting `Secretary'.
(b) MISCELLANEOUS AMENDMENTS- (1) Section 236(a) of the Disaster Relief
Act of 1970 (7 U.S.C. 912a) is amended by striking `Rural Electrification
Administration' and inserting `Secretary under the Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.)'.
(2) Section 505 of the Department of Agriculture Organic Act of 1944
(7 U.S.C. 915) is amended--
(A) by striking `Rural Electrification Administration' and inserting
`Secretary of Agriculture'; and
(B) by striking `its' and inserting `the Secretary's'.
(3) Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 903
note) is amended in the second paragraph by striking `Administrator of
the Rural Electrification Administration' and inserting `Secretary of Agriculture'.
(4) Chapter 1 of subtitle D of title XXIII of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.), relating
to Distance Learning and Medical Link Programs, is amended--
(A) in section 2333--
(i) by striking paragraph (1); and
(ii) by redesignating paragraphs (2) through (11) as paragraphs (1)
through (10), respectively;
(B) in section 2334(h)(2), by striking `section 2333(3)(F)' and inserting
`section 2333(2)(F)'; and
(C) by striking `Administrator' each place it appears and inserting
`Secretary'.
(5) Section 306(a)(15) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)(15)) is amended--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as subparagraph (C).
(6) Section 2322(d) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 1926-1(d)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
Subtitle D--Food, Nutrition, and Consumer Services
SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION,
AND CONSUMER SERVICES.
(a) AUTHORIZATION- The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Food, Nutrition,
and Consumer Services.
(b) CONFIRMATION REQUIRED- If the Secretary establishes the position
of Under Secretary of Agriculture for Food, Nutrition, and Consumer Services
authorized under subsection (a), the Under Secretary shall be appointed
by the President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY-
(1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate
to the Under Secretary of Agriculture for Food, Nutrition, and Consumer
Services those functions under the jurisdiction of the Department that
are related to food, nutrition, and consumer services (except as provided
in section 261(b)(1)).
(2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Food,
Nutrition, and Consumer Services shall perform such other functions as
may be required by law or prescribed by the Secretary.
(d) SUCCESSION- Any official who is serving as Assistant Secretary of Agriculture
for Food and Consumer Services on the date of the enactment of this Act
and who was appointed by the President, by and with the advice and consent
of the Senate, shall not be required to be reappointed under subsection
(b) to the successor position authorized under subsection (a) if the Secretary
establishes the position, and the official occupies the new position, within
180 days after the date of the enactment of this Act (or such later date
set by the Secretary if litigation delays rapid succession).
(e) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code,
is amended by inserting after the item relating to the Under Secretary
of Agriculture for Farm and Foreign Agricultural Services (as added by
section 225(e)(2)) the following:
`Under Secretary of Agriculture for Food, Nutrition, and Consumer
Services.'.
Subtitle E--Natural Resources and Environment
SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL RESOURCES
AND ENVIRONMENT.
(a) AUTHORIZATION- The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Natural Resources
and Environment.
(b) CONFIRMATION REQUIRED- If the Secretary establishes the position
of Under Secretary of Agriculture for Natural Resources and Environment
authorized under subsection (a), the Under Secretary shall be appointed
by the President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY-
(1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate
to the Under Secretary of Agriculture for Natural Resources and Environment
those functions under the jurisdiction of the Department that are related
to natural resources and environment (except to the extent those functions
are delegated under section 226).
(2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Natural
Resources and Environment shall perform such other functions and duties
as may be required by law or prescribed by the Secretary.
(d) SUCCESSION- Any official who is serving as Assistant Secretary of Agriculture
for Natural Resources and Environment on the date of the enactment of this
Act and who was appointed by the President, by and with the advice and
consent of the Senate, shall not be required to be reappointed under subsection
(b) to the successor position authorized under subsection (a) if the Secretary
establishes the position, and the official occupies the new position, within
180 days after the date of the enactment of this Act (or such later date
set by the Secretary if litigation delays rapid succession).
(e) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code,
is amended by inserting after the item relating to the Under Secretary
of Agriculture for Food, Nutrition, and Consumer Services (as added by
section 241(e)) the following:
`Under Secretary of Agriculture for Natural Resources and Environment.'.
SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.
(a) ESTABLISHMENT- The Secretary is authorized to establish and maintain
within the Department a Natural Resources Conservation Service.
(b) FUNCTIONS- If the Secretary establishes the Natural Resources Conservation
Service under subsection (a), the Secretary is authorized to assign to
the Service jurisdiction over the following:
(1) The rural environmental conservation program under title X of
the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.).
(2) The Great Plains Conservation Program under section 16(b) of the
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)).
(3) The Water Bank Act (16 U.S.C. 1301 et seq.).
(4) The forestry incentive program under section 4 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103).
(5) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.),
except subchapter B of chapter 1 of subtitle D of such title.
(6) Salinity control program under section 202(c) of the Colorado River
Basin Salinity Control Act (43 U.S.C. 1592(c)).
(7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 note).
(8) Such other functions as the Secretary considers appropriate, except
functions under subchapter B of chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831-3836) and the agricultural
conservation program under the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590g et seq.).
(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNCTIONS- In carrying
out the programs specified in paragraphs (2), (3), (4), and (6) of subsection
(b) and the program under subchapter C of chapter 1 of subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3837-3837f), the Secretary
shall--
(1) acting on the recommendations of the Natural Resources Conservation
Service, with the concurrence of the Consolidated Farm Service Agency,
issue regulations to carry out such programs;
(2) ensure that the Natural Resources Conservation Service, in establishing
policies, priorities, and guidelines for each such program, does so with
the concurrence of the Consolidated Farm Service Agency at national, State,
and local levels;
(3) ensure that, in reaching such concurrence at the local level, the
Natural Resources Conservation Service works in cooperation with Soil and
Water Conservation Districts or similar organizations established under
State law;
(4) ensure that officials of county and area committees established
under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)) meet annually with officials of such Districts or
similar organizations to consider local conservation priorities and guidelines;
and
(5) take steps to ensure that the concurrence process does not interfere
with the effective delivery of such programs.
(d) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES-
(1) USE AUTHORIZED- In the implementation of functions assigned to
the Natural Resources Conservation Service, the Secretary may use interchangeably
in local offices of the Service both Federal employees of the Department
and non-Federal employees of county and area committees established under
section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)(5)).
(2) EXCEPTION- Notwithstanding paragraph (1), no personnel action (as
defined in section 2302(a)(2)(A) of title 5, United States Code) may be
taken with respect to a Federal employee unless such action is taken by
another Federal employee.
(e) SAVINGS PROVISION- For purposes of subsections (c) and (d) of this
section:
(1) A reference to the `Natural Resources Conservation Service' includes
any other office, agency, or administrative unit of the Department assigned
the functions authorized for the Natural Resources Conservation Service
under this section.
(2) A reference to the `Consolidated Farm Service Agency' includes any
other office, agency, or administrative unit of the Department assigned
the functions authorized for the Consolidated Farm Service Agency under
section 226.
(f) CONFORMING AMENDMENTS-
(1) SOIL CONSERVATION SERVICE- Section 5 of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590e) is repealed.
(2) SOIL AND WATER RESOURCES CONSERVATION- The Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2001) is amended--
(A) in section 2(2) (16 U.S.C. 2001(2))--
(i) by striking `created the Soil Conservation Service'; and
(ii) by striking `Department of Agriculture which' and inserting `,
has ensured that the Department of Agriculture';
(B) in section 3(2) (16 U.S.C. 2002(2)), by striking `through the Soil
Conservation Service'; and
(C) in section 6(a) (16 U.S.C. 2005(a)), by striking `Soil Conservation
Service' and inserting `Secretary'.
(3) STATE TECHNICAL COMMITTEES- Section 1262 of the Food Security Act of
1985 (16 U.S.C. 3862) is amended by adding at the end the following new
subsection:
`(e) FACA REQUIREMENTS- The committees established under section 1261 shall
be exempt from the Federal Advisory Committee Act (5 U.S.C. App.).'.
SEC. 247. REORGANIZATION OF FOREST SERVICE.
(a) REQUIRED ELEMENTS OF REORGANIZATION PROPOSALS- Reorganization
proposals that are developed by the Secretary to carry out the designation
by the President of the Forest Service as a Reinvention Lab pursuant to
the National Performance Review, dated September 1993, shall include proposals
for--
(1) reorganizing the Service in a manner that is consistent with the
principles of interdisciplinary planning;
(2) redefining and consolidating the mission and roles of, and research
conducted by, employees of the Service in connection with the National
Forest System and State and private forestry to facilitate interdisciplinary
planning and to eliminate functionalism;
(3) reforming the budget structure of the Service to support interdisciplinary
planning, including reducing the number of budget line items;
(4) defining new measures of accountability so that Congress may meet
the constitutional obligation of Congress to oversee the Service;
(5) achieving structural and organizational consolidations;
(6) to the extent practicable, sharing office space, equipment, vehicles,
and electronic systems with other administrative units of the Department
and other Federal field offices, including proposals for using an on-line
system by all administrative units of the Department to maximize administrative
efficiency; and
(7) reorganizing the Service in a manner that will result in a larger
percentage of employees of the Service being retained at organizational
levels below regional offices, research stations, and the area office of
the Service.
(b) REPORT- Not later than March 31, 1995, the Secretary shall submit a
report to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
that describes actions taken to carry out subsection (a), identifies any
disparities in regional funding patterns, and contains the rationale behind
the disparities.
Subtitle F--Research, Education, and Economics
SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION,
AND ECONOMICS.
(a) AUTHORIZATION- The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Research,
Education, and Economics.
(b) CONFIRMATION REQUIRED- If the Secretary establishes the position
of Under Secretary of Agriculture for Research, Education, and Economics
authorized under subsection (a), the Under Secretary shall be appointed
by the President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY-
(1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate
to the Under Secretary of Agriculture for Research, Education, and Economics
those functions and duties under the jurisdiction of the Department that
are related to research, education, and economics.
(2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Research,
Education, and Economics shall perform such other functions and duties
as may be required by law or prescribed by the Secretary.
(d) COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE-
(1) ESTABLISHMENT- There is established in the Department a Cooperative
State Research, Education, and Extension Service.
(2) FUNCTIONS- The Secretary shall delegate to the Cooperative State
Research, Education, and Extension Service functions related to cooperative
State research programs and cooperative extension and education programs
that are under the jurisdiction of the Department.
(3) OFFICER-IN-CHARGE- If the Secretary establishes the position of
Under Secretary of Agriculture for Research, Education, and Economics,
the officer in charge of the Cooperative State Research, Education, and
Extension Service shall report directly to the Under Secretary.
(e) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is
amended by inserting after the item relating to the Under Secretary of
Agriculture for Natural Resources and Environment (as added by section
245(e)) the following:
`Under Secretary of Agriculture for Research, Education, and Economics.'.
SEC. 252. PROGRAM STAFF.
In making the personnel reductions required under section 213, the
Secretary shall reduce the number of Federal research and education personnel
of the Department by a percentage equal to at least the percentage of overall
Department personnel reductions. The Secretary shall achieve such reduction
in research and education personnel in a manner that minimizes duplication
and maximizes coordination between Federal and State research and extension
activities.
Subtitle G--Food Safety
SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.
(a) ESTABLISHMENT- There is established in the Department of Agriculture
the position of Under Secretary of Agriculture for Food Safety. The Under
Secretary shall be appointed by the President, by and with the advice and
consent of the Senate, from among individuals with specialized training
or significant experience in food safety or public health programs.
(b) FUNCTIONS OF UNDER SECRETARY-
(1) PRINCIPAL FUNCTIONS- The Secretary shall delegate to the Under
Secretary of Agriculture for Food Safety those functions and duties under
the jurisdiction of the Department that are primarily related to food safety.
(2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Food
Safety shall perform such other functions and duties as may be required
by law or prescribed by the Secretary.
(c) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is
amended by inserting after the item relating to the Under Secretary of
Agriculture for Research, Education, and Economics (as added by section
251(e)) the following:
`Under Secretary of Agriculture for Food Safety.'.
(d) TECHNICAL AND SCIENTIFIC REVIEW GROUPS- The Secretary, acting through
the Under Secretary for Research, Education, and Economics, may, without
regard to the provisions of title 5, United States Code, governing appointment
in the competitive service, and without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United States Code, relating
to classification and General Schedule pay rates--
(1) establish such technical and scientific review groups as are needed
to carry out the functions of the Department; and
(2) appoint and pay the members of the groups, except that officers
and employees of the United States shall not receive additional compensation
for service as a member of a group.
SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN THE
LEVEL OF ADDITIVES ALLOWED IN ANIMAL DIETS.
(a) CONDITIONS- The Food and Drug Administration shall not implement
or enforce the final rule described in subsection (b) to alter the level
of selenium allowed to be used as a supplement in animal diets unless the
Commissioner of the Food and Drug Administration makes a determination
that--
(1) selenium additives are not essential, at levels authorized in
the absence of such final rule, to maintain animal nutrition and protect
animal health;
(2) selenium at such levels is not safe to the animals consuming the
additive;
(3) selenium at such levels is not safe to individuals consuming edible
portions of animals that receive the additive;
(4) selenium at such levels does not achieve its intended effect of
promoting normal growth and reproduction of livestock and poultry; and
(5) the manufacture and use of selenium at such levels cannot reasonably
be controlled by adherence to current good manufacturing practice requirements.
(b) FINAL RULE DESCRIBED- The final rule referred to in subsection (a)
is the final rule issued by the Food and Drug Administration and published
in the Federal Register on September 13, 1993 (58 Fed. Reg. 47962), in
which the Administration stayed 1987 amendments to the selenium food additive
regulations, and any modification of such rule issued after the date of
the enactment of this Act.
Subtitle H--National Appeals Division
SEC. 271. DEFINITIONS.
For purposes of this subtitle:
(1) ADVERSE DECISION- The term `adverse decision' means an administrative
decision made by an officer, employee, or committee of an agency that is
adverse to a participant. The term includes a denial of equitable relief
by an agency or the failure of an agency to issue a decision or otherwise
act on the request or right of the participant. The term does not include
a decision over which the Board of Contract Appeals has jurisdiction.
(2) AGENCY- The term `agency' means any agency of the Department designated
by the Secretary or a successor agency of the Department, except that the
term shall include the following (and any successor to the following):
(A) The Consolidated Farm Service Agency (or other office, agency,
or administrative unit of the Department assigned the functions authorized
for the Consolidated Farm Service Agency under section 226).
(B) The Commodity Credit Corporation, with respect to domestic programs.
(C) The Farmers Home Administration.
(D) The Federal Crop Insurance Corporation.
(E) The Rural Development Administration.
(F) The Natural Resources Conservation Service (or other office, agency,
or administrative unit of the Department assigned the functions authorized
for the Natural Resources Conservation Service under section 246(b)).
(G) A State, county, or area committee established under section 8(b)(5)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
(3) APPELLANT- The term `appellant' means a participant who appeals an
adverse decision in accordance with this subtitle.
(4) CASE RECORD- The term `case record' means all the materials maintained
by the Secretary related to an adverse decision.
(5) DIRECTOR- The term `Director' means the Director of the Division.
(6) DIVISION- The term `Division' means the National Appeals Division
established by this title.
(7) HEARING OFFICER- The term `hearing officer' means an individual
employed by the Division who hears and determines appeals of adverse decisions
by any agency.
(8) IMPLEMENT- The term `implement' refers to those actions necessary
to effectuate fully and promptly a final determination of the Division
not later than 30 calendar days after the effective date of the final determination.
(9) PARTICIPANT- The term `participant' shall have the meaning given
that term by the Secretary by regulation.
SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.
(a) ESTABLISHMENT OF DIVISION- The Secretary shall establish and maintain
an independent National Appeals Division within the Department to carry
out this subtitle.
(b) DIRECTOR-
(1) APPOINTMENT- The Division shall be headed by a Director, appointed
by the Secretary from among persons who have substantial experience in
practicing administrative law. In considering applicants for the position
of Director, the Secretary shall consider persons currently employed outside
Government as well as Government employees.
(2) TERM AND REMOVAL- The Director shall serve for a 6-year term of
office, and shall be eligible for reappointment. The Director shall not
be subject to removal during the term of office, except for cause established
in accordance with law.
(3) POSITION CLASSIFICATION- The position of the Director may not be
a position in the excepted service or filled by a noncareer appointee.
(c) DIRECTION, CONTROL, AND SUPPORT- The Director shall be free from the
direction and control of any person other than the Secretary. The Division
shall not receive administrative support (except on a reimbursable basis)
from any agency other than the Office of the Secretary. The Secretary may
not delegate to any other officer or employee of the Department, other
than the Director, the authority of the Secretary with respect to the Division.
(d) DETERMINATION OF APPEALABILITY OF AGENCY DECISIONS- If an officer,
employee, or committee of an agency determines that a decision is not appealable
and a participant appeals the decision to the Director, the Director shall
determine whether the decision is adverse to the individual participant
and thus appealable or is a matter of general applicability and thus not
subject to appeal. The determination of the Director as to whether a decision
is appealable shall be administratively final.
(e) DIVISION PERSONNEL- The Director shall appoint such hearing officers
and other employees as are necessary for the administration of the Division.
A hearing officer or other employee of the Division shall have no duties
other than those that are necessary to carry out this subtitle.
SEC. 273. TRANSFER OF FUNCTIONS.
There are transferred to the Division all functions exercised and
all administrative appeals pending before the effective date of this subtitle
(including all related functions of any officer or employee) of or relating
to--
(1) the National Appeals Division established by section 426(c) of
the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as in effect on the day
before the date of the enactment of this Act);
(2) the National Appeals Division established by subsections (d) through
(g) of section 333B of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1983b) (as in effect on the day before the date of the enactment
of this Act);
(3) appeals of decisions made by the Federal Crop Insurance Corporation;
and
(4) appeals of decisions made by the Soil Conservation Service (as in
effect on the day before the date of the enactment of this Act).
SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.
Not later than 10 working days after an adverse decision is made that
affects the participant, the Secretary shall provide the participant with
written notice of such adverse decision and the rights available to the
participant under this subtitle or other law for the review of such adverse
decision.
SEC. 275. INFORMAL HEARINGS.
If an officer, employee, or committee of an agency makes an adverse
decision, the agency shall hold, at the request of the participant, an
informal hearing on the decision. With respect to programs carried out
through the Consolidated Farm Service Agency (or other office, agency,
or administrative unit of the Department assigned to carry out the programs
authorized for the Consolidated Farm Service Agency under section 226),
the Secretary shall maintain the informal appeals process applicable to
such programs, as in effect on the date of the enactment of the subtitle.
If a mediation program is available under title V of the Agricultural Credit
Act of 1987 (7 U.S.C. 5101 et seq.) as a part of the informal hearing process,
the participant shall be offered the right to choose such mediation.
SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.
(a) APPEAL TO DIVISION FOR HEARING- Subject to subsection (b), a participant
shall have the right to appeal an adverse decision to the Division for
an evidentiary hearing by a hearing officer consistent with section 277.
(b) TIME FOR APPEAL- To be entitled to a hearing under section 277,
a participant shall request the hearing not later than 30 days after the
date on which the participant first received notice of the adverse decision.
SEC. 277. DIVISION HEARINGS.
(a) GENERAL POWERS OF DIRECTOR AND HEARING OFFICERS-
(1) ACCESS TO CASE RECORD- The Director and hearing officer shall
have access to the case record of any adverse decision appealed to the
Division for a hearing.
(2) ADMINISTRATIVE PROCEDURES- The Director and hearing officer shall
have the authority to require the attendance of witnesses, and the production
of evidence, by subpoena and to administer oaths and affirmations. Except
to the extent required for the disposition of ex parte matters as authorized
by law--
(A) an interested person outside the Division shall not make or knowingly
cause to be made to the Director or a hearing officer who is or may reasonably
be expected to be involved in the evidentiary hearing or review of an adverse
decision, an ex parte communication (as defined in section 551(14) of title
5, United States Code) relevant to the merits of the proceeding;
(B) the Director and such hearing officer shall not make or knowingly
cause to be made to any interested person outside the Division an ex parte
communication relevant to the merits of the proceeding.
(b) TIME FOR HEARING- Upon a timely request for a hearing under section
276(b), an appellant shall have the right to have a hearing by the Division
on the adverse decision within 45 days after the date of the receipt of
the request for the hearing.
(c) LOCATION AND ELEMENTS OF HEARING-
(1) LOCATION- A hearing on an adverse decision shall be held in the
State of residence of the appellant or at a location that is otherwise
convenient to the appellant and the Division.
(2) EVIDENTIARY HEARING- The evidentiary hearing before a hearing officer
shall be in person, unless the appellant agrees to a hearing by telephone
or by a review of the case record. The hearing officer shall not be bound
by previous findings of fact by the agency in making a determination.
(3) INFORMATION AT HEARING- The hearing officer shall consider information
presented at the hearing without regard to whether the evidence was known
to the agency officer, employee, or committee making the adverse decision
at the time the adverse decision was made. The hearing officer shall leave
the record open after the hearing for a reasonable period of time to allow
the submission of information by the appellant or the agency after the
hearing to the extent necessary to respond to new facts, information, arguments,
or evidence presented or raised by the agency or appellant.
(4) BURDEN OF PROOF- The appellant shall bear the burden of proving
that the adverse decision of the agency was erroneous.
(d) DETERMINATION NOTICE- The hearing officer shall issue a notice of the
determination on the appeal not later than 30 days after a hearing or after
receipt of the request of the appellant to waive a hearing, except that
the Director may establish an earlier or later deadline. If the determination
is not appealed to the Director for review under section 278, the notice
provided by the hearing officer shall be considered to be a notice of an
administratively final determination.
(e) EFFECTIVE DATE- The final determination shall be effective as of
the date of filing of an application, the date of the transaction or event
in question, or the date of the original adverse decision, whichever is
applicable.
SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING OFFICERS.
(a) REQUESTS FOR DIRECTOR REVIEW-
(1) TIME FOR REQUEST BY APPELLANT- Not later than 30 days after the
date on which an appellant receives the determination of a hearing officer
under section 277, the appellant shall submit a written request to the
Director for review of the determination in order to be entitled to a review
by the Director of the determination.
(2) TIME FOR REQUEST BY AGENCY HEAD- Not later than 15 business days
after the date on which an agency receives the determination of a hearing
officer under section 277, the head of the agency may make a written request
that the Director review the determination.
(b) DETERMINATION OF DIRECTOR- The Director shall conduct a review of the
determination of the hearing officer using the case record, the record
from the evidentiary hearing under section 277, the request for review,
and such other arguments or information as may be accepted by the Director.
Based on such review, the Director shall issue a final determination notice
that upholds, reverses, or modifies the determination of the hearing officer.
However, if the Director determines that the hearing record is inadequate,
the Director may remand all or a portion of the determination for further
proceedings to complete the hearing record or, at the option of the Director,
to hold a new hearing. The Director shall complete the review and either
issue a final determination or remand the determination not later than--
(1) 10 business days after receipt of the request for review, in the
case of a request by the head of an agency for review; or
(2) 30 business days after receipt of the request for review, in the
case of a request by an appellant for review.
(c) BASIS FOR DETERMINATION- The determination of the hearing officer and
the Director shall be based on information from the case record, laws applicable
to the matter at issue, and applicable regulations published in the Federal
Register and in effect on the date of the adverse decision or the date
on which the acts that gave rise to the adverse decision occurred, whichever
date is appropriate.
(d) EQUITABLE RELIEF- Subject to regulations issued by the Secretary,
the Director shall have the authority to grant equitable relief under this
section in the same manner and to the same extent as such authority is
provided to the Secretary under section 326 of the Food and Agriculture
Act of 1962 (7 U.S.C. 1339a) and other laws. Notwithstanding the administrative
finality of a final determination of an appeal by the Division, the Secretary
shall have the authority to grant equitable or other types of relief to
the appellant after an administratively final determination is issued by
the Division.
(e) EFFECTIVE DATE- A final determination issued by the Director shall
be effective as of the date of filing of an application, the date of the
transaction or event in question, or the date of the original adverse decision,
whichever is applicable.
SEC. 279. JUDICIAL REVIEW.
A final determination of the Division shall be reviewable and enforceable
by any United States district court of competent jurisdiction in accordance
with chapter 7 of title 5, United States Code.
SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF DIVISION.
On the return of a case to an agency pursuant to the final determination
of the Division, the head of the agency shall implement the final determination
not later than 30 days after the effective date of the notice of the final
determination.
SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS
DIVISION.
(a) DECISIONS OF STATE, COUNTY, AND AREA COMMITTEES-
(1) APPLICATION OF SUBSECTION- This subsection shall apply only with
respect to functions of the Consolidated Farm Service Agency or the Commodity
Credit Corporation that are under the jurisdiction of a State, county,
or area committee established under section 8(b)(5) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an employee of such
a committee.
(2) FINALITY- Each decision of a State, county, or area committee (or
an employee of such a committee) covered by paragraph (1) that is made
in good faith in the absence of misrepresentation, false statement, fraud,
or willful misconduct shall be final not later than 90 days after the date
of filing of the application for benefits, unless the decision is--
(A) appealed under this subtitle; or
(B) modified by the Administrator of the Consolidated Farm Service Agency
or the Executive Vice President of the Commodity Credit Corporation.
(3) RECOVERY OF AMOUNTS- If the decision of the State, county, or area
committee has become final under paragraph (2), no action may be taken
by the Consolidated Farm Service Agency, the Commodity Credit Corporation,
or a State, county, or area committee to recover amounts found to have
been disbursed as a result of a decision in error unless the participant
had reason to believe that the decision was erroneous.
(4) SAVINGS PROVISION- For purposes of this subsection, a reference
to the `Consolidated Farm Service Agency' includes any other office, agency,
or administrative unit of the Department assigned the functions authorized
for the Consolidated Farm Service Agency under section 226.
(b) AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE- Section 426 of
the Agricultural Act of 1949 (7 U.S.C. 1433e) is repealed.
(c) FARMERS HOME ADMINISTRATION- Section 333B of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1983b) is repealed.
SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION PROGRAMS.
(a) EXPANSION OF MEDIATION PROGRAMS- Section 501 of the Agricultural
Credit Act of 1987 (7 U.S.C. 5101) is amended--
(1) in subsection (a), by striking `an agricultural loan mediation
program' and inserting `a mediation program';
(2) in subsection (b), by striking `agricultural loan'; and
(3) by striking subsection (c) and inserting the following new subsection:
`(c) REQUIREMENTS OF STATE MEDIATION PROGRAMS-
`(1) ISSUES COVERED- To be certified as a qualifying State, the mediation
program of the State must provide mediation services for the persons described
in paragraph (2) who are involved in agricultural loans or agricultural
loans and one or more of the following issues under the jurisdiction of
the Department of Agriculture:
`(A) Wetlands determinations.
`(B) Compliance with farm programs, including conservation programs.
`(C) Agricultural credit.
`(D) Rural water loan programs.
`(E) Grazing on National Forest System lands.
`(F) Pesticides.
`(G) Such other issues as the Secretary considers appropriate.
`(2) PERSONS ELIGIBLE FOR MEDIATION- The persons referred to in paragraph
(1) are producers, their creditors (if applicable), and other persons directly
affected by actions of the Department of Agriculture.
`(3) CERTIFICATION CONDITIONS- The Secretary shall certify a State as
a qualifying State with respect to the issues proposed to be covered by
the mediation program of the State if the mediation program--
`(A) provides for mediation services that, if decisions are reached,
result in mediated, mutually agreeable decisions between the parties to
the mediation;
`(B) is authorized or administered by an agency of the State government
or by the Governor of the State;
`(C) provides for the training of mediators;
`(D) provides that the mediation sessions shall be confidential;
`(E) ensures, in the case of agricultural loans, that all lenders and
borrowers of agricultural loans receive adequate notification of the mediation
program; and
`(F) ensures, in the case of other issues covered by the mediation program,
that persons directly affected by actions of the Department of Agriculture
receive adequate notification of the mediation program.'.
(b) PARTICIPATION OF DEPARTMENT- Section 503 of such Act (7 U.S.C. 5103)
is amended--
(1) by striking `agricultural loan' each place it appears;
(2) in the matter preceding subparagraph (A) of subsection (a)(1)--
(A) by inserting `or agency' after `program'; and
(B) by striking `that makes, guarantees, or insures agricultural loans';
(3) in subsection (a)(1)(A)--
(A) by inserting `or agency' after `such program'; and
(B) by inserting `certified under section 501' after `mediation program';
(4) in subsection (a)(1)(B)--
(A) by striking `, effective beginning on the date of the enactment
of this Act,'; and
(B) by inserting `certified under section 501' after `mediation programs';
and
(5) in subsection (a)(1)(C)--
(A) in clause (i), by striking `described in' and inserting `certified
under'; and
(B) in clause (ii), by inserting `if applicable,' before `present'.
(c) REGULATIONS- Section 504 of such Act (7 U.S.C. 5104) is amended--
(1) by striking `Within 150 days after the date of the enactment of
this Act, the' and inserting `The'; and
(2) by adding at the end the following new sentence: `The regulations
prescribed by the Secretary shall require qualifying States to adequately
train mediators to address all of the issues covered by the mediation program
of the State.'.
(d) REPORT- Section 505 of such Act (7 U.S.C. 5105) is amended by striking
`1990' and inserting `1998'.
(e) AUTHORIZATION OF APPROPRIATIONS- Section 506 of such Act (7 U.S.C.
5106) is amended by striking `1995' and inserting `2000'.
(f) CONFORMING AMENDMENTS-
(1) REFERENCES TO AGRICULTURAL LOANS- Subtitle A of title V of such
Act is amended--
(A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), by striking
`agricultural loan' each place it appears; and
(B) in section 505(3) (7 U.S.C. 5105(3)), by striking `an agricultural
loan mediation' and inserting `a mediation'.
(2) WAIVER OF FARM CREDIT SYSTEM MEDIATION RIGHTS BY BORROWERS- Section
4.14E of the Farm Credit Act of 1971 (12 U.S.C. 2202e) is amended by striking
`agricultural loan'.
(3) WAIVER OF FMHA MEDIATION RIGHTS BY BORROWERS- Section 358 of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2006) is amended
by striking `agricultural loan'.
SEC. 283. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary
to carry out the activities of the Division.
Subtitle I--Miscellaneous Reorganization Provisions
SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING UNITS
AND EXCLUSIVE REPRESENTATIVES.
(a) VOLUNTARY AGREEMENT-
(1) IN GENERAL- If the exercise of the Secretary's authority under
this title results in changes to an existing bargaining unit that has been
certified under chapter 71 of title 5, United States Code, the affected
parties shall attempt to reach a voluntary agreement on a new bargaining
unit and an exclusive representative for such unit.
(2) CRITERIA- In carrying out the requirements of this subsection, the
affected parties shall use criteria set forth in--
(A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 of title 5,
United States Code, relating to determining an exclusive representative;
and
(B) section 7112 of title 5, United States Code (disregarding subsections
(b)(5) and (d) thereof), relating to determining appropriate units.
(b) EFFECT OF AN AGREEMENT-
(1) IN GENERAL- If the affected parties reach agreement on the appropriate
unit and the exclusive representative for such unit under subsection (a),
the Federal Labor Relations Authority shall certify the terms of such agreement,
subject to paragraph (2)(A). Nothing in this subsection shall be considered
to require the holding of any hearing or election as a condition for certification.
(2) RESTRICTIONS-
(A) CONDITIONS REQUIRING NONCERTIFICATION- The Federal Labor Relations
Authority may not certify the terms of an agreement under paragraph (1)
if--
(i) it determines that any of the criteria referred to in subsection
(a)(2) (disregarding section 7112(a) of title 5, United States Code) have
not been met; or
(ii) after the Secretary's exercise of authority and before certification
under this section, a valid election under section 7111(b) of title 5,
United States Code, is held covering any employees who would be included
in the unit proposed for certification.
(B) TEMPORARY WAIVER OF PROVISION THAT WOULD BAR AN ELECTION AFTER A COLLECTIVE
BARGAINING AGREEMENT IS REACHED- Nothing in section 7111(f)(3) of title
5, United States Code, shall prevent the holding of an election under section
7111(b) of such title that covers employees within a unit certified under
paragraph (1), or giving effect to the results of such an election (including
a decision not to be represented by any labor organization), if the election
is held before the end of the 12-month period beginning on the date such
unit is so certified.
(C) CLARIFICATION- The certification of a unit under paragraph (1) shall
not, for purposes of the last sentence of section 7111(b) of title 5, United
States Code, or section 7111(f)(4) of such title, be treated as if it had
occurred pursuant to an election.
(3) DELEGATION-
(A) IN GENERAL- The Federal Labor Relations Authority may delegate
to any regional director (as referred to in section 7105(e) of title 5,
United States Code) its authority under the preceding provisions of this
subsection.
(B) REVIEW- Any action taken by a regional director under subparagraph
(A) shall be subject to review under the provisions of section 7105(f)
of title 5, United States Code, in the same manner as if such action had
been taken under section 7105(e) of such title, except that in the case
of a decision not to certify, such review shall be required if application
therefor is filed by an affected party within the time specified in such
provisions.
(c) DEFINITION- For purposes of this section, the term `affected party'
means--
(1) with respect to an exercise of authority by the Secretary under
this title, any labor organization affected thereby; and
(2) the Department of Agriculture.
SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.
(a) SENSE OF CONGRESS- It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products purchased using
funds made available pursuant to this title should be American-made.
(b) NOTICE REQUIREMENT- In providing financial assistance to, or entering
into any contract with, any entity using funds made available pursuant
to this title, the Secretary, to the greatest extent practicable, shall
provide to such entity a notice describing the statement made in subsection
(a) by the Congress.
SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.
(a) UNITED STATES GRAIN STANDARDS ACT- The United States Grain Standards
Act (7 U.S.C. 71 et seq.) is amended--
(1) in section 3 (7 U.S.C. 75)--
(A) by inserting `and' at the end of subsection (y);
(B) by striking subsections (z) and (aa); and
(C) by redesignating subsection (bb) as subsection (z);
(2) by striking section 3A (7 U.S.C. 75a);
(3) in section 5(b) (7 U.S.C. 77(b)), by striking `Service employees'
and inserting `employees of the Secretary';
(4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and 79a(l)(2)),
by striking `supervision by Service personnel of its field office personnel'
in the first sentence of both sections and inserting `supervision by the
Secretary of the Secretary's field office personnel';
(5) in section 12(c) (7 U.S.C. 87a(c)), by striking `or Administrator';
(6) in section 12(d) (7 U.S.C. 87a(d)), by striking `or the Administrator';
(7) except as otherwise provided in this subsection, by striking `Administrator'
each place it appears and inserting `Secretary'; and
(8) except as otherwise provided in this subsection, by striking `Service'
each place it appears and inserting `Secretary'.
(b) PACKERS AND STOCKYARDS ACT, 1921- Section 407 of the Packers and Stockyards
Act, 1921 (7 U.S.C. 228), is amended--
(1) by striking subsection (b);
(2) by redesignating subsections (c), (d), (e), and (f), as subsections
(b), (c), (d), and (e), respectively; and
(3) in subsection (e) (as so redesignated), by striking `subsection
(e)' and inserting `subsection (d)'.
SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS.
Section 5316 of title 5, United States Code, is amended--
(1) by striking `Administrator, Agricultural Marketing Service, Department
of Agriculture.';
(2) by striking `Administrator, Agricultural Research Service, Department
of Agriculture.';
(3) by striking `Administrator, Agricultural Stabilization and Conservation
Service, Department of Agriculture.';
(4) by striking `Administrator, Farmers Home Administration.';
(5) by striking `Administrator, Foreign Agricultural Service, Department
of Agriculture.';
(6) by striking `Administrator, Rural Electrification Administration,
Department of Agriculture.';
(7) by striking `Administrator, Soil Conservation Service, Department
of Agriculture.';
(8) by striking `Chief Forester of the Forest Service, Department of
Agriculture.';
(9) by striking `Director of Science and Education, Department of Agriculture.';
(10) by striking `Administrator, Animal and Plant Health Inspection
Service, Department of Agriculture.'; and
(11) by striking `Administrator, Federal Grain Inspection Service, Department
of Agriculture.'.
SEC. 295. PROPOSED CONFORMING AMENDMENTS.
Not later than 180 days after the date of the enactment of this Act,
the Secretary shall submit to Congress recommended legislation containing
additional technical and conforming amendments to Federal laws that are
required as a result of the enactment of this title.
SEC. 296. TERMINATION OF AUTHORITY.
(a) IN GENERAL- Subject to subsection (b), the authority delegated
to the Secretary by this title to reorganize the Department shall terminate
on the date that is 2 years after the date of enactment of this Act.
(b) FUNCTIONS- Subsection (a) shall not affect--
(1) the authority of the Secretary to continue to carry out a function
that the Secretary performs on the date that is 2 years after the date
of enactment of this Act;
(2) the authority delegated to the Secretary under Reorganization Plan
No. 2 of 1953 (5 U.S.C. App.; 7 U.S.C. 2201 note); or
(3) the authority of an agency, office, officer, or employee of the
Department to continue to perform all functions delegated or assigned to
the entity or person as of that termination date.
TITLE III--MISCELLANEOUS
SEC. 301. POULTRY LABELING.
It is the sense of Congress that--
(1) the United States Department of Agriculture should--
(A) carry out the plans of the Department to hold public hearings
for the purpose of receiving public input on issues related to the conditions
under which poultry sold in the United States may be labeled `fresh'; and
(B) finalize and publish a decision on the issues as expeditiously as
possible after holding the hearings; and
(2) no person serving on the expert advisory committee established to advise
the Secretary of Agriculture on the issues should stand to profit, or represent
any interest that would stand to profit, from the decision of the Department
on the issues.
SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED
STATES DEPARTMENT OF AGRICULTURE.
Notwithstanding any other provision of law, no employee of the United
States Department of Agriculture shall be peremptorily removed, on or after
February 15, 1994, from the position of the employee without an opportunity
for a public or nonpublic hearing, at the option of the employee, because
of remarks made during personal time in opposition to policies, or proposed
policies, of the Department, including policies or proposed policies regarding
homosexuals. Any employee removed on or after February 15, 1994, without
the opportunity for such a hearing shall be reinstated to the position
of the employee pending such a hearing.
SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.
(a) IN GENERAL- Section 3(o)(11) of the Food Stamp Act of 1977 (7
U.S.C. 2012(o)(11)) is amended by inserting `and (in the case of households
residing in Alaska) on October 1, 1994,' after `1992,'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall be effective
beginning on September 30, 1994.
SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.
(a) OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS- The Secretary
of Agriculture shall establish in the Department of Agriculture an Office
of Risk Assessment and Cost-Benefit Analysis, which shall be under the
direction of a Director appointed by the Secretary.
(b) FUNCTIONS- The Director shall ensure that any regulatory analysis
that is conducted under this section includes a risk assessment and cost-benefit
analysis that is performed consistently and uses reasonably obtainable
and sound scientific, technical, economic, and other data.
(1) IN GENERAL- Effective six months after the date of enactment of
this Act, the Secretary of Agriculture shall publish in the Federal Register,
for each proposed major regulation the primary purpose of which is to regulate
issues of human health, human safety, or the environment that is promulgated
by the Department after the enactment of this Act, an analysis with as
much specificity as practicable, of--
(A) the risk, including the effect of the risk, to human health, human
safety, or the environment, and any combination thereof, addressed by the
regulation, including, where applicable and practicable, the health and
safety risks to persons who are disproportionately exposed or particularly
sensitive;
(B) the costs associated with the implementation of, and compliance
with, the regulation;
(C) where appropriate and meaningful, a comparison of that risk relative
to other similar risks regulated by the Department or other Federal Agency,
resulting from comparable activities and exposure pathways (such comparisons
should consider relevant distinctions among risks, such as the voluntary
or involuntary nature of risks and the preventability or nonpreventability
of risks); and
(D) the quantitative and qualitative benefits of the regulation, including
the reduction or prevention of risk expected from the regulation.
Where such a regulatory analysis is not practicable because of compelling
circumstances, the Director shall provide an explanation in lieu of conducting
an analysis under this section.
(2) EVALUATION- The regulatory analysis referred to in paragraph (1)
should also contain a statement that the Secretary of Agriculture evaluated--
(A) whether the regulation will advance the purpose of protecting
against the risk referred to in paragraph (1)(A); and
(B) whether the regulation will produce benefits and reduce risks to
human health, human safety, or the environment, and any combination thereof,
in a cost-effective manner as a result of the implementation of and compliance
with the regulation, by local, State, and Federal Government and other
public and private entities, as estimated in paragraph (1)(B).
(3) This section shall not be construed to amend, modify, or alter any
statute and shall not be subject to judicial review. This section shall
not be construed to grant a cause of action to any person. The Secretary
of Agriculture shall perform the analyses required in this section in such
a manner that does not delay the promulgation or implementation of regulations
mandated by statute or judicial order.
(c) DEFINITION- As used in this section, the term `major regulation' means
any regulation that the Secretary of Agriculture estimates is likely to
have an annual impact on the economy of the United States of $100,000,000
in 1994 dollars.
SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED
PRODUCERS.
(a) FAIR CROP ACREAGE BASES AND FARM PROGRAM PAYMENT YIELDS- If the
Secretary of Agriculture determines that crop acreage bases or farm program
payment yields established for farms owned or operated by socially disadvantaged
producers are not established in accordance with title V of the Agricultural
Act of 1949 (7 U.S.C. 1461 et seq.), the Secretary shall adjust the bases
and yields to conform to the requirements of such title and make available
any appropriate commodity program benefits.
(b) FAIR APPLICATION OF CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
If the Secretary of Agriculture determines that application of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) with respect to
socially disadvantaged producers is not consistent with the requirements
of such Act, the Secretary shall make such changes in the administration
of such Act as the Secretary considers necessary to provide for the fair
and equitable treatment of socially disadvantaged producers under such
Act.
(c) REPORT ON TREATMENT OF SOCIALLY DISADVANTAGED PRODUCERS-
(1) REPORT REQUIRED- The Comptroller General of the United States
shall prepare a report to determine--
(A) whether socially disadvantaged producers are underrepresented
on State, county, area, or local committees established under section 8(b)(5)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5))
or local review committees established under section 363 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1363) because of racial, ethnic, or gender
prejudice; and
(B) if such underrepresentation exists, whether it inhibits or interferes
with the participation of socially disadvantaged producers in programs
of the Department of Agriculture.
(2) SUBMISSION OF REPORT- Not later than February 1, 1995, the Comptroller
General shall submit the report required by this subsection to the Committee
on Agriculture of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
(d) DEFINITION- For purposes of this section, the term `socially disadvantaged
producer' means a producer who is a member of a group whose members have
been subjected to racial, ethnic, or gender prejudice because of their
identity as members of a group without regard to their individual qualities.
SEC. 306. AVIATION INSPECTIONS.
(a) STUDY OF AIRCRAFT INSPECTIONS-
(1) INTENT OF STUDY- The intent of the study required by this subsection
is to examine the cost efficiencies of conducting inspections of aircraft
and pilots by one Federal agency without reducing aircraft, passenger,
or pilot safety standards or lowering mission preparedness.
(2) STUDY REQUIRED- The Secretary of Agriculture and the Secretary of
Transportation shall jointly conduct a study of the inspection specifications
and procedures by which aircraft and pilots contracted by the Department
are certified to determine the cost efficiencies of eliminating duplicative
Department inspection requirements and transferring some or all inspection
requirements to the Federal Aviation Administration, while ensuring that
neither aircraft, passenger, nor pilot safety is reduced and that mission
preparedness is maintained.
(3) SPECIAL CONSIDERATIONS- In conducting the study, the Secretaries
shall evaluate current inspection specifications and procedures mandated
by the Department and the Forest Service, taking into consideration the
unique requirements and risks of particular Department and Forest Service
missions that may require special inspection specifications and procedures
to ensure the safety of Department and Forest Service personnel and their
contractees.
(4) MAINTENANCE OF STANDARDS AND PREPAREDNESS- In making recommendations
to transfer inspection authority or otherwise change Department inspection
specifications and procedures, the Secretaries shall ensure that the implementation
of any such recommendations does not lower aircraft or pilot standards
or preparedness for Department or Forest Service missions.
(5) SUBMISSION OF RESULTS- Not later than 180 days after the date of
the enactment of this Act, the Secretaries shall submit to Congress the
results of the study, including any recommendations to transfer inspection
authority or otherwise change Department inspection specifications and
procedures and a cost-benefit analysis of such recommendations.
(b) REVIEW OF RECENTLY ADOPTED AIRCRAFT POLICY-
(1) REVIEW REQUIRED- The Secretaries shall review the policy initiated
by the Secretary of Agriculture on July 1, 1994, to accept Federal Aviation
Administration inspections on aircraft and pilots that provide `airport
to airport' service for the Forest Service. The policy is currently being
cooperatively developed by the Department and the Federal Aviation Administration
and is intended to reduce duplicative inspections and to reduce Government
costs, while maintaining aircraft, passenger, and pilot safety standards,
specifications and procedures currently required by the Department and
the Forest Service.
(2) EXPANSION OF POLICY- As part of the review, the Secretaries shall
examine the feasibility and desirability of applying this policy on a Government-wide
basis.
(3) SUBMISSION OF RESULTS- Not later than one year after the date of
the implementation of the policy, the Secretary of Agriculture shall submit
to Congress the results of the review, including any recommendations that
the Secretary considers appropriate.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.