E:\PUBLAW\PUBL224.106

PUBLIC LAW 106–224—JUNE 20, 2000

AGRICULTURE RISK PROTECTION

ACT OF 2000

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114 STAT. 358 PUBLIC LAW 106–224—JUNE 20, 2000

Public Law 106–224

106th Congress

An Act

To amend the Federal Crop Insurance Act to strengthen the safety net for agricul-

tural producers by providing greater access to more affordable risk management

tools and improved protection from production and income loss, to improve the

efficiency and integrity of the Federal crop insurance program.

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) S

HORT

ITLE

.—This Act may be cited as the ‘‘Agricultural

Risk Protection Act of 2000’’.

(b) T

ABLE OF

ONTENTS

.—The table of contents of this Act

is as follows:

TITLE I—CROP INSURANCE COVERAGE

UBTITLE

A—C

ROP

NSURANCE

OVERAGE

Sec. 101. Premium schedule for additional coverage.

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

Sec. 103. Catastrophic risk protection.

Sec. 104. Administrative fee for additional coverage.

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

Sec. 106. Review and adjustment in rating methodologies.

Sec. 107. Quality adjustment.

Sec. 108. Double insurance and prevented planting.

Sec. 109. Noninsured crop disaster assistance program.

UBTITLE

B—I

MPROVING

ROGRAM

NTEGRITY

Sec. 121. Improving program compliance and integrity.

Sec. 122. Protection of confidential information.

Sec. 123. Good farming practices.

Sec. 124. Records and reporting.

UBTITLE

C—R

ESEARCH AND

ILOT

ROGRAMS

Sec. 131. Research and development.

Sec. 132. Pilot programs.

Sec. 133. Education and risk management assistance.

Sec. 134. Options pilot program.

UBTITLE

D—A

DMINISTRATION

Sec. 141. Relation to other laws.

Sec. 142. Management of Corporation.

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

Sec. 144. Electronic availability of crop insurance information.

Sec. 145. Adequate coverage for States.

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

Sec. 147. Funding.

Sec. 148. Standard Reinsurance Agreement.

UBTITLE

E—M

ISCELLANEOUS

Sec. 161. Limitation on revenue coverage for potatoes.

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

7 USC 1501 note.

Agricultural Risk

Protection Act of

2000.

June 20, 2000

[H.R. 2559]

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114 STAT. 359PUBLIC LAW 106–224—JUNE 20, 2000

Sec. 163. Indemnity payments for certain producers.

Sec. 164. Sense of the Congress regarding the Federal crop insurance program.

Sec. 165. Sense of the Congress on rural America, including minority and limited-

resource farmers.

UBTITLE

F—E

FFECTIVE

ATES AND

MPLEMENTATION

Sec. 171. Effective dates.

Sec. 172. Regulations.

Sec. 173. Savings clause.

TITLE II—AGRICULTURAL ASSISTANCE

UBTITLE

A—M

ARKET

OSS

SSISTANCE

Sec. 201. Market loss assistance.

Sec. 202. Oilseeds.

Sec. 203. Specialty crops.

Sec. 204. Other commodities.

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

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

UBTITLE

B—C

ONSERVATION

Sec. 211. Conservation assistance.

Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio.

UBTITLE

C—R

ESEARCH

Sec. 221. Carbon cycle research.

Sec. 222. Tobacco research for medicinal purposes.

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

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

Sec. 225. Improved storage and management of livestock and poultry waste.

Sec. 226. Ethanol research pilot plant.

Sec. 227. Bioinformatics Institute for Model Plant Species.

UBTITLE

D—A

GRICULTURAL

ARKETING

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

UBTITLE

E—N

UTRITION

ROGRAMS

Sec. 241. Calculation of minimum amount of commodities for school lunch require-

ments.

Sec. 242. School lunch data.

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

Sec. 244. Adjustments to WIC program.

UBTITLE

F—O

THER

ROGRAMS

Sec. 251. Authority to provide loan in connection with boll weevil eradication.

Sec. 252. Animal disease control.

Sec. 253. Emergency loans for seed producers.

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

Sec. 255. Farm operating loan eligibility.

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

Sec. 257. Crop and pasture flood compensation program.

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

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

UBTITLE

G—A

DMINISTRATION

Sec. 261. Funding.

Sec. 262. Obligation period.

Sec. 263. Regulations.

Sec. 264. Paygo adjustment.

Sec. 265. Commodity Credit Corporation reimbursement.

TITLE III—BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

Sec. 301. Short title.

Sec. 302. Findings.

Sec. 303. Definitions.

Sec. 304. Cooperation and coordination in biomass research and development.

Sec. 305. Biomass Research and Development Board.

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

Sec. 307. Biomass Research And Development Initiative.

Sec. 308. Administrative support and funds.

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114 STAT. 360 PUBLIC LAW 106–224—JUNE 20, 2000

Sec. 309. Reports.

Sec. 310. Termination of authority.

TITLE IV—PLANT PROTECTION ACT

Sec. 401. Short title.

Sec. 402. Findings.

Sec. 403. Definitions.

UBTITLE

A—P

LANT

ROTECTION

Sec. 411. Regulation of movement of plant pests.

Sec. 412. Regulation of movement of plants, plant products, biological control

organisms, noxious weeds, articles, and means of conveyance.

Sec. 413. Notification and holding requirements upon arrival.

Sec. 414. General remedial measures for new plant pests and noxious weeds.

Sec. 415. Declaration of extraordinary emergency and resulting authorities.

Sec. 416. Recovery of compensation for unauthorized activities.

Sec. 417. Control of grasshoppers and mormon crickets.

Sec. 418. Certification for exports.

UBTITLE

B—I

NSPECTION AND

NFORCEMENT

Sec. 421. Inspections, seizures, and warrants.

Sec. 422. Collection of information.

Sec. 423. Subpoena authority.

Sec. 424. Penalties for violation.

Sec. 425. Enforcement actions of Attorney General.

Sec. 426. Court jurisdiction.

UBTITLE

C—M

ISCELLANEOUS

ROVISIONS

Sec. 431. Cooperation.

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

Sec. 433. Reimbursable agreements.

Sec. 434. Regulations and orders.

Sec. 435. Protection for mail handlers.

Sec. 436. Preemption.

Sec. 437. Severability.

Sec. 438. Repeal of superseded laws.

UBTITLE

D—A

UTHORIZATION OF

PPROPRIATIONS

Sec. 441. Authorization of appropriations.

Sec. 442. Transfer authority.

TITLE V—INSPECTION ANIMALS

Sec. 501. Civil penalty.

Sec. 502. Subpoena authority.

TITLE I—CROP INSURANCE

Subtitle A—Crop Insurance Coverage

SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.

(a) E

XPECTED

ARKET

RICE

.—Section 508(c) of the Federal

Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking para-

graph (5) and inserting the following:

‘‘(5) E

XPECTED MARKET PRICE

.—

‘‘(A) E

STABLISHMENT OR APPROVAL

.—For the purposes

of this title, the Corporation shall establish or approve

the price level (referred to in this title as the ‘expected

market price’) of each agricultural commodity for which

insurance is offered.

‘‘(B) G

ENERAL RULE

.—Except as otherwise provided in

subparagraph (C), the expected market price of an agricul-

tural commodity shall be not less than the projected market

price of the agricultural commodity, as determined by the

Corporation.

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114 STAT. 361PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(C) O

THER AUTHORIZED APPROACHES

.—The expected

market price of an agricultural commodity—

‘‘(i) may be based on the actual market price of

the agricultural commodity at the time of harvest,

as determined by the Corporation;

‘‘(ii) in the case of revenue and other similar plans

of insurance, may be the actual market price of the

agricultural commodity, as determined by the Corpora-

tion;

‘‘(iii) in the case of cost of production or similar

plans of insurance, shall be the projected cost of pro-

ducing the agricultural commodity, as determined by

the Corporation; or

‘‘(iv) in the case of other plans of insurance, may

be an appropriate amount, as determined by the Cor-

poration.’’.

(b) P

REMIUM

MOUNTS

.—Section 508(d) of the Federal Crop

Insurance Act (7 U.S.C. 1508(d)) is amended—

(1) in paragraph (2), by striking subparagraphs (B) and

‘‘(B) In the case of additional coverage equal to or

greater than 50 percent of the recorded or appraised aver-

age yield indemnified at not greater than 100 percent of

the expected market price, or a comparable coverage for

a policy or plan of insurance that is not based on individual

yield, the amount of the premium shall—

‘‘(i) be sufficient to cover anticipated losses and

a reasonable reserve; and

‘‘(ii) include an amount for operating and adminis-

trative expenses, as determined by the Corporation,

on an industry-wide basis as a percentage of the

amount of the premium used to define loss ratio.’’;

and

(2) by adding at the end the following:

‘‘(3) P

ERFORMANCE

BASED DISCOUNT

.—The Corporation may

provide a performance-based premium discount for a producer

of an agricultural commodity who has good insurance or produc-

tion experience relative to other producers of that agricultural

commodity in the same area, as determined by the Corpora-

tion.’’.

AYMENT

CHEDULE

.—Section 508(e)(2) of the Federal Crop

Insurance Act (7 U.S.C. 1508(e)(2)) is amended—

(1) in the matter preceding the subparagraphs, by striking

‘‘The amount’’ and inserting ‘‘Subject to paragraph (4), the

amount’’; and

(2) by striking subparagraphs (B) and (C) and inserting

the following:

‘‘(B) In the case of additional coverage equal to or

greater than 50 percent, but less than 55 percent, of the

recorded or appraised average yield indemnified at not

greater than 100 percent of the expected market price,

or a comparable coverage for a policy or plan of insurance

that is not based on individual yield, the amount shall

be equal to the sum of—

‘‘(i) 67 percent of the amount of the premium estab-

lished under subsection (d)(2)(B)(i) for the coverage

level selected; and

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114 STAT. 362 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(ii) the amount determined under subsection

(d)(2)(B)(ii) for the coverage level selected to cover oper-

ating and administrative expenses.

‘‘(C) In the case of additional coverage equal to or

greater than 55 percent, but less than 65 percent, of the

recorded or appraised average yield indemnified at not

greater than 100 percent of the expected market price,

or a comparable coverage for a policy or plan of insurance

that is not based on individual yield, the amount shall

be equal to the sum of—

‘‘(i) 64 percent of the amount of the premium estab-

lished under subsection (d)(2)(B)(i) for the coverage

level selected; and

‘‘(ii) the amount determined under subsection

(d)(2)(B)(ii) for the coverage level selected to cover oper-

ating and administrative expenses.

‘‘(D) In the case of additional coverage equal to or

greater than 65 percent, but less than 75 percent, of the

recorded or appraised average yield indemnified at not

greater than 100 percent of the expected market price,

or a comparable coverage for a policy or plan of insurance

that is not based on individual yield, the amount shall

be equal to the sum of—

‘‘(i) 59 percent of the amount of the premium estab-

lished under subsection (d)(2)(B)(i) for the coverage

level selected; and

‘‘(ii) the amount determined under subsection

(d)(2)(B)(ii) for the coverage level selected to cover oper-

ating and administrative expenses.

‘‘(E) In the case of additional coverage equal to or

greater than 75 percent, but less than 80 percent, of the

recorded or appraised average yield indemnified at not

greater than 100 percent of the expected market price,

or a comparable coverage for a policy or plan of insurance

that is not based on individual yield, the amount shall

be equal to the sum of—

‘‘(i) 55 percent of the amount of the premium estab-

lished under subsection (d)(2)(B)(i) for the coverage

level selected; and

‘‘(ii) the amount determined under subsection

(d)(2)(B)(ii) for the coverage level selected to cover oper-

ating and administrative expenses.

‘‘(F) In the case of additional coverage equal to or

greater than 80 percent, but less than 85 percent, of the

recorded or appraised average yield indemnified at not

greater than 100 percent of the expected market price,

or a comparable coverage for a policy or plan of insurance

that is not based on individual yield, the amount shall

be equal to the sum of—

‘‘(i) 48 percent of the amount of the premium estab-

lished under subsection (d)(2)(B)(i) for the coverage

level selected; and

‘‘(ii) the amount determined under subsection

(d)(2)(B)(ii) for the coverage level selected to cover oper-

ating and administrative expenses.

‘‘(G) Subject to subsection (c)(4), in the case of addi-

tional coverage equal to or greater than 85 percent of

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114 STAT. 363PUBLIC LAW 106–224—JUNE 20, 2000

the recorded or appraised average yield indemnified at

not greater than 100 percent of the expected market price,

or a comparable coverage for a policy or plan of insurance

that is not based on individual yield, the amount shall

be equal to the sum of—

‘‘(i) 38 percent of the amount of the premium estab-

lished under subsection (d)(2)(B)(i) for the coverage

level selected; and

‘‘(ii) the amount determined under subsection

(d)(2)(B)(ii) for the coverage level selected to cover oper-

ating and administrative expenses.’’.

(d) T

EMPORARY

ROHIBITION ON

ONTINUOUS

OVERAGE

.—Sec-

tion 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))

is amended by striking paragraph (4) and inserting the following:

‘‘(4) T

EMPORARY PROHIBITION ON CONTINUOUS COVERAGE

.—

Notwithstanding paragraph (2), during each of the 2001

through 2005 reinsurance years, additional coverage under sub-

section (c) shall be available only in 5 percent increments

beginning at 50 percent of the recorded or appraised average

yield.’’.

(e) P

REMIUM

AYMENT

ISCLOSURE

.—Section 508(e) of the Fed-

eral Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding

at the end the following:

‘‘(5) P

REMIUM PAYMENT DISCLOSURE

.—Each policy or plan

of insurance under this title shall prominently indicate the

dollar amount of the portion of the premium paid by the Cor-

poration.’’.

(f ) C

ONFORMING

MENDMENT

.—Section 508(g)(2)(D) of the Fed-

eral Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by

striking ‘‘(as provided in subsection (e)(4))’’.

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

(a) P

REMIUM

CHEDULE

.—Section 508(h) of the Federal Crop

Insurance Act (7 U.S.C. 1508(h)) is amended—

(1) in paragraph (2), by striking the second sentence; and

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

‘‘(5) P

REMIUM SCHEDULE

.—

‘‘(A) P

AYMENT BY CORPORATION

.—In the case of a policy

or plan of insurance developed and approved under this

subsection or section 522, or conducted under section 523

(other than a policy or plan of insurance applicable to

livestock), the Corporation shall pay a portion of the pre-

mium of the policy or plan of insurance that is equal

to—

‘‘(i) the percentage, specified in subsection (e) for

a similar level of coverage, of the total amount of

the premium used to define loss ratio; and

‘‘(ii) an amount for administrative and operating

expenses determined in accordance with subsection

(k)(4).

‘‘(B) T

RANSITIONAL SCHEDULE

.—Effective only during

the 2001 reinsurance year, in the case of a policy or plan

of insurance developed and approved under this subsection

or section 522, or conducted under section 523 (other than

a policy or plan of insurance applicable to livestock), and

first approved by the Board after the date of the enactment

of this subparagraph, the payment by the Corporation of

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114 STAT. 364 PUBLIC LAW 106–224—JUNE 20, 2000

a portion of the premium of the policy may not exceed

the dollar amount that would otherwise be authorized

under subsection (e) (consistent with subsection (c)(5), as

in effect on the day before the date of the enactment

of this subparagraph).’’.

(b) R

EIMBURSEMENT

ATE

.—Section 508(k)(4) of the Federal

Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding

at the end the following:

‘‘(C) O

THER REDUCTIONS

.—Beginning with the 2002

reinsurance year, in the case of a policy or plan of insurance

approved by the Board that was not reinsured during the

1998 reinsurance year but, had it been reinsured, would

have received a reduced rate of reimbursement during the

1998 reinsurance year, the rate of reimbursement for

administrative and operating costs established for the

policy or plan of insurance shall take into account the

factors used to determine the rate of reimbursement for

administrative and operating costs during the 1998 reinsur-

ance year, including the expected difference in premium

and actual administrative and operating costs of the policy

or plan of insurance relative to an individual yield policy

or plan of insurance and other appropriate factors, as deter-

mined by the Corporation.’’.

SEC. 103. CATASTROPHIC RISK PROTECTION.

(a) A

LTERNATIVE

OVERAGE

.—Section 508(b) of the Federal

Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking para-

graph (3) and inserting the following:

‘‘(3) A

LTERNATIVE CATASTROPHIC COVERAGE

.—Beginning

with the 2001 crop year, the Corporation shall offer producers

of an agricultural commodity the option of selecting either

of the following:

‘‘(A) The catastrophic risk protection coverage available

under paragraph (2)(A).

‘‘(B) An alternative catastrophic risk protection cov-

erage that—

‘‘(i) indemnifies the producer on an area yield and

loss basis if such a policy or plan of insurance is

offered for the agricultural commodity in the county

in which the farm is located;

‘‘(ii) provides, on a uniform national basis, a higher

combination of yield and price protection than the cov-

erage available under paragraph (2)(A); and

‘‘(iii) the Corporation determines is comparable to

the coverage available under paragraph (2)(A) for pur-

poses of subsection (e)(2)(A).’’.

(b) A

DMINISTRATIVE

.—

(1) R

EVISED FEE

.—Section 508(b)(5) of the Federal Crop

Insurance Act (7 U.S.C. 1508(b)(5)) is amended—

(A) in subparagraph (A), by striking ‘‘$50’’ and

inserting ‘‘$100’’;

(B) by striking subparagraph (B); and

under subparagraphs (A) and (B)’’ and inserting ‘‘adminis-

trative fee required by this paragraph’’.

(2) C

ONFORMING AMENDMENT

.—Section 748 of the Agri-

culture, Rural Development, Food and Drug Administration,

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114 STAT. 365PUBLIC LAW 106–224—JUNE 20, 2000

and Related Agencies Appropriations Act, 1999 (as contained

in section 101(a) of division A of Public Law 105–277; 7 U.S.C.

1508 note), is amended by striking ‘‘$50’’ and inserting ‘‘$100’’.

AYMENT OF

DMINISTRATIVE

EE ON

EHALF OF

DUCERS

.—Section 508(b)(5) of the Federal Crop Insurance Act (7

U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended

by inserting after subparagraph (A) the following:

‘‘(B) P

AYMENT ON BEHALF OF PRODUCERS

.—

‘‘(i) P

AYMENT AUTHORIZED

.—If State law permits

a licensing fee or other payment to be paid by an

insurance provider to a cooperative association or trade

association and rebated to a producer with catastrophic

risk protection or additional coverage, a cooperative

association or trade association located in that State

may pay, on behalf of a member of the association

in that State or a contiguous State who consents to

be insured under such an arrangement, all or a portion

of the administrative fee required by this paragraph

for catastrophic risk protection.

‘‘(ii) T

REATMENT OF LICENSING FEES

.—A licensing

fee or other payment made by an insurance provider

to the cooperative association or trade association in

connection with the issuance of catastrophic risk

protection or additional coverage to members of the

cooperative association or trade association shall be

subject to the laws regarding rebates of the State in

which the fee or other payment is made.

‘‘(iii) S

ELECTION OF PROVIDER

.—Nothing in this

subparagraph limits the option of a producer to select

the licensed insurance agent or other approved insur-

ance provider from whom the producer will purchase

a policy or plan of insurance or to refuse coverage

for which a payment is offered to be made under clause

(i).

‘‘(iv) D

ELIVERY OF INSURANCE

.—A policy or plan

of insurance for which a payment is made under clause

(i) shall be delivered by a licensed insurance agent

or other approved insurance provider.

‘‘(v) A

DDITIONAL COVERAGE ENCOURAGED

.—A

cooperative association or trade association, and any

approved insurance provider with whom a licensing

fee or other arrangement under this subparagraph is

made, shall encourage producer members to purchase

appropriate levels of additional coverage in order to

meet the risk management needs of the member pro-

ducers.

‘‘(vi) R

EPORT

.—Not later than April 1, 2002, the

Secretary shall submit to the Committee on Agriculture

of the House of Representatives and the Committee

on Agriculture, Nutrition, and Forestry of the Senate

a report that evaluates—

‘‘(I) the operation of this subparagraph; and

‘‘(II) the impact of this subparagraph on

participation in the Federal crop insurance pro-

gram, including the impact on levels of coverage

purchased.’’.

Deadline.

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114 STAT. 366 PUBLIC LAW 106–224—JUNE 20, 2000

(d) R

EIMBURSEMENT

ATE

HANGE

.—Section 508(b)(11) of the

Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by

striking ‘‘11 percent’’ and inserting ‘‘8 percent’’.

SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.

Section 508(c) of the Federal Crop Insurance Act (7 U.S.C.

1508(c)) is amended by striking paragraph (10) and inserting the

following:

‘‘(10) A

DMINISTRATIVE FEE

.—

‘‘(A) F

EE REQUIRED

.—If a producer elects to purchase

coverage for a crop at a level in excess of catastrophic

risk protection, the producer shall pay an administrative

fee for the additional coverage of $30 per crop per county.

‘‘(B) U

SE OF FEES

;

WAIVER

.—Subparagraphs (D) and

(E) of subsection (b)(5) shall apply with respect to the

collection and use of administrative fees under this para-

graph.’’.

SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY

ADJUSTMENTS.

(a) A

SSIGNED

IELDS

.—Section 508(g)(2)(B) of the Federal Crop

Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended—

(1) by striking ‘‘assigned a yield’’ and inserting ‘‘assigned—

‘‘(i) a yield’’;

(2) by striking the period at the end and inserting ‘‘; or’’;

and

(3) by adding at the end the following:

‘‘(ii) a yield determined by the Corporation, in the

case of—

‘‘(I) a producer that has not had a share of

the production of the insured crop for more than

two crop years, as determined by the Secretary;

‘‘(II) a producer that produces an agricultural

commodity on land that has not been farmed by

the producer; or

‘‘(III) a producer that rotates a crop produced

on a farm to a crop that has not been produced

on the farm.’’.

(b) A

CTUAL

RODUCTION

ISTORY

DJUSTMENTS

.—Section

508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is

amended by adding at the end the following:

‘‘(4) A

DJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTAB

LISH INSURABLE YIELDS

.—

‘‘(A) A

PPLICATION

.—This paragraph shall apply when-

ever the Corporation uses the actual production records

of the producer to establish the producer’s actual production

history for an agricultural commodity for any of the 2001

and subsequent crop years.

‘‘(B) E

LECTION TO USE PERCENTAGE OF TRANSITIONAL

YIELD

.—If, for one or more of the crop years used to estab-

lish the producer’s actual production history of an agricul-

tural commodity, the producer’s recorded or appraised yield

of the commodity was less than 60 percent of the applicable

transitional yield, as determined by the Corporation, the

Corporation shall, at the election of the producer—

‘‘(i) exclude any of such recorded or appraised yield;

and

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114 STAT. 367PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(ii) replace each excluded yield with a yield equal

to 60 percent of the applicable transitional yield.

‘‘(C) P

REMIUM ADJUSTMENT

.—In the case of a producer

that makes an election under subparagraph (B), the Cor-

poration shall adjust the premium to reflect the risk associ-

ated with the adjustment made in the actual production

history of the producer.

‘‘(5) A

DJUSTMENT TO REFLECT INCREASED YIELDS FROM

SUCCESSFUL PEST CONTROL EFFORTS

.—

‘‘(A) S

ITUATIONS JUSTIFYING ADJUSTMENT

.—The Cor-

poration shall develop a methodology for adjusting the

actual production history of a producer when each of the

following apply:

‘‘(i) The producer’s farm is located in an area where

systematic, area-wide efforts have been undertaken

using certain operations or measures, or the producer’s

farm is a location at which certain operations or meas-

ures have been undertaken, to detect, eradicate, sup-

press, or control, or at least to prevent or retard the

spread of, a plant disease or plant pest, including a

plant pest (as defined in section 102 of the Department

of Agriculture Organic Act of 1944 (7 U.S.C. 147a)).

‘‘(ii) The presence of the plant disease or plant

pest has been found to adversely affect the yield of

the agricultural commodity for which the producer is

applying for insurance.

‘‘(iii) The efforts described in clause (i) have been

effective.

‘‘(B) A

DJUSTMENT AMOUNT

.—The amount by which the

Corporation adjusts the actual production history of a pro-

ducer of an agricultural commodity shall reflect the degree

to which the success of the systematic, area-wide efforts

described in subparagraph (A), on average, increases the

yield of the commodity on the producer’s farm, as deter-

mined by the Corporation.’’.

SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.

Section 508(i) of the Federal Crop Insurance Act (7 U.S.C.

1508(i)) is amended—

(1) by striking ‘‘The Corporation’’ and inserting the fol-

lowing:

‘‘(1) I

N GENERAL

.—The Corporation’’; and

(2) by adding at the end the following:

‘‘(2) R

EVIEW OF RATING METHODOLOGIES

.—To maximize

participation in the Federal crop insurance program and to

ensure equity for producers, the Corporation shall periodically

review the methodologies employed for rating plans of insurance

under this title consistent with section 507(c)(2).

‘‘(3) A

NALYSIS OF RATING AND LOSS HISTORY

.—The Corpora-

tion shall analyze the rating and loss history of approved poli-

cies and plans of insurance for agricultural commodities by

area.

‘‘(4) P

REMIUM ADJUSTMENT

.—If the Corporation makes a

determination that premium rates are excessive for an agricul-

tural commodity in an area relative to the requirements of

subsection (d)(2) for that area, then, for the 2002 crop year

(and as necessary thereafter), the Corporation shall make

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114 STAT. 368 PUBLIC LAW 106–224—JUNE 20, 2000

appropriate adjustments in the premium rates for that area

for that agricultural commodity.’’.

SEC. 107. QUALITY ADJUSTMENT.

Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508)

is amended by striking subsection (m) and inserting the following:

‘‘(m) Q

UALITY

OSS

DJUSTMENT

OVERAGE

.—

‘‘(1) E

FFECT OF COVERAGE

.—If a policy or plan of insurance

offered under this title includes quality loss adjustment cov-

erage, the coverage shall provide for a reduction in the quantity

of production of the agricultural commodity considered produced

during a crop year, or a similar adjustment, as a result of

the agricultural commodity not meeting the quality standards

established in the policy or plan of insurance.

‘‘(2) A

DDITIONAL QUALITY LOSS ADJUSTMENT

.—

‘‘(A) P

RODUCER OPTION

.—Notwithstanding any other

provision of law, in addition to the quality loss adjustment

coverage available under paragraph (1), the Corporation

shall offer producers the option of purchasing quality loss

adjustment coverage on a basis that is smaller than a

unit with respect to an agricultural commodity that satis-

fies each of the following:

‘‘(i) The agricultural commodity is sold on an

identity-preserved basis.

‘‘(ii) All quality determinations are made solely

by the Federal agency designated to grade or classify

the agricultural commodity.

‘‘(iii) All quality determinations are made in

accordance with standards published by the Federal

agency in the Federal Register.

‘‘(iv) The discount schedules that reflect the reduc-

tion in quality of the agricultural commodity are estab-

lished by the Secretary.

‘‘(B) B

ASIS FOR ADJUSTMENT

.—Under this paragraph,

the Corporation shall set the quality standards below which

quality losses will be paid based on the variability of the

grade of the agricultural commodity from the base quality

for the agricultural commodity.

‘‘(3) R

EVIEW OF CRITERIA AND PROCEDURES

.—The Corpora-

tion shall contract with a qualified person to review the quality

loss adjustment procedures of the Corporation so that the proce-

dures more accurately reflect local quality discounts that are

applied to agricultural commodities insured under this title.

Based on the review, the Corporation shall make adjustments

in the procedures, taking into consideration the actuarial sound-

ness of the adjustment and the prevention of fraud, waste,

and abuse.’’.

SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is

amended by inserting after section 508 (7 U.S.C. 1508) the following:

‘‘SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.

‘‘(a) D

EFINITIONS

.—In this section:

‘‘(1) F

IRST CROP

.—The term ‘first crop’ means the first

crop of the first agricultural commodity planted for harvest,

or prevented from being planted, on specific acreage during

a crop year and insured under this title.

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114 STAT. 369PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(2) S

ECOND CROP

.—The term ‘second crop’ means a second

crop of the same agricultural commodity as the first crop,

or a crop of a different agricultural commodity following the

first crop, planted on the same acreage as the first crop for

harvest in the same crop year, except the term does not include

a replanted crop.

‘‘(3) R

EPLANTED CROP

.—The term ‘replanted crop’ means

any agricultural commodity replanted on the same acreage

as the first crop for harvest in the same crop year if the

replanting is required by the terms of the policy of insurance

covering the first crop.

‘‘(b) D

OUBLE

NSURANCE

.—

‘‘(1) O

PTIONS ON LOSS TO FIRST CROP

.—Except as provided

in subsections (d) and (e), if a first crop insured under this

title in a crop year has a total or partial insurable loss, the

producer of the first crop may elect one of the following options:

‘‘(A) N

O SECOND CROP PLANTED

.—The producer may—

‘‘(i) elect to not plant a second crop on the same

acreage for harvest in the same crop year; and

‘‘(ii) collect an indemnity payment that is equal

to 100 percent of the insurable loss for the first crop.

‘‘(B) S

ECOND CROP PLANTED

.—The producer may—

‘‘(i) plant a second crop on the same acreage for

harvest in the same crop year; and

‘‘(ii) collect an indemnity payment established by

the Corporation for the first crop, but not to exceed

35 percent of the insurable loss for the first crop.

‘‘(2) E

FFECT OF NO LOSS TO SECOND CROP

.—If a producer

makes an election under paragraph (1)(B) and the producer

does not suffer an insurable loss to the second crop, the pro-

ducer may collect an indemnity payment for the first crop

that is equal to—

‘‘(A) 100 percent of the insurable loss for the first

crop; less

‘‘(B) the amount previously collected under paragraph

(1)(B)(ii).

‘‘(3) P

REMIUM FOR FIRST CROP IF SECOND CROP PLANTED

.—

‘‘(A) I

NITIAL PREMIUM

.—If a producer makes an election

under paragraph (1)(B), the producer shall be responsible

for a premium for the first crop that is commensurate

with the indemnity paid under paragraph (1)(B)(ii). The

Corporation shall adjust the total premium for the first

crop to reflect the reduced indemnity.

‘‘(B) E

FFECT OF NO LOSS TO SECOND CROP

.—If the pro-

ducer makes an election under paragraph (1)(B) and the

producer does not suffer an insurable loss to the second

crop, the producer shall be responsible for a premium for

the first crop that is equal to—

‘‘(i) the full premium owed by the producer for

the first crop; less

‘‘(ii) the amount of premium previously paid under

subparagraph (A).

‘‘(c) P

REVENTED

LANTING

OVERAGE

.—

‘‘(1) O

PTIONS ON LOSS TO FIRST CROP

.—Except as provided

in subsections (d) and (e), if a first crop insured under this

title in a crop year is prevented from being planted, the pro-

ducer of the first crop may elect one of the following options:

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114 STAT. 370 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(A) N

O SECOND CROP PLANTED

.—The producer may—

‘‘(i) elect to not plant a second crop on the same

acreage for harvest in the same crop year; and

‘‘(ii) subject to paragraph (4), collect an indemnity

payment that is equal to 100 percent of the prevented

planting guarantee for the acreage for the first crop.

‘‘(B) S

ECOND CROP PLANTED

.—The producer may—

‘‘(i) plant a second crop on the same acreage for

harvest in the same crop year; and

‘‘(ii) subject to paragraphs (4) and (5), collect an

indemnity payment established by the Corporation for

the first crop, but not to exceed 35 percent of the

prevented planting guarantee for the acreage for the

first crop.

‘‘(2) P

REMIUM FOR FIRST CROP IF SECOND PLANTED

.—If the

producer makes an election under paragraph (1)(B), the pro-

ducer shall pay a premium for the first crop that is commensu-

rate with the indemnity paid under paragraph (1)(B)(ii). The

Corporation shall adjust the total premium for the first crop

to reflect the reduced indemnity.

‘‘(3) E

FFECT ON ACTUAL PRODUCTION HISTORY

.—Except in

the case of double cropping described in subsection (d), if a

producer make an election under paragraph (1)(B) for a crop

year, the Corporation shall assign the producer a recorded

yield for that crop year for the first crop equal to 60 percent

of the producer’s actual production history for the agricultural

commodity involved, for purposes of determining the producer’s

actual production history for subsequent crop years.

‘‘(4) A

REA CONDITIONS REQUIRED FOR PAYMENT

.—The Cor-

poration shall limit prevented planting payments for producers

to those situations in which other producers, in the area where

a first crop is prevented from being planted is located, are

also generally affected by the conditions that prevented the

first crop from being planted.

‘‘(5) P

LANTING DATE

.—If a producer plants the second crop

before the latest planting date established by the Corporation

for the first crop, the Corporation shall not make a prevented

planting payment with regard to the first crop.

‘‘(d) E

XCEPTION FOR

STABLISHED

OUBLE

ROPPING

RAC

TICES

.—A producer may receive full indemnity payments on two

or more crops planted for harvest in the same crop year and

insured under this title if each of the following conditions are

met:

‘‘(1) There is an established practice of planting two or

more crops for harvest in the same crop year in the area,

as determined by the Corporation.

‘‘(2) An additional coverage policy or plan of insurance

is offered with respect to the agricultural commodities planted

on the same acreage for harvest in the same crop year in

the area.

‘‘(3) The producer has a history of planting two or more

crops for harvest in the same crop year or the applicable acreage

has historically had two or more crops planted for harvest

in the same crop year.

‘‘(4) The second or more crops are customarily planted

after the first crop for harvest on the same acreage in the

same year in the area.

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114 STAT. 371PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(e) S

UBSEQUENT

ROPS

.—Except in the case of double cropping

described in subsection (d), if a producer elects to plant a crop

(other than a replanted crop) subsequent to a second crop on the

same acreage as the first crop and second crop for harvest in

the same crop year, the producer shall not be eligible for insurance

under this title, or noninsured crop assistance under section 196

of the Agricultural Market Transition Act (7 U.S.C. 7333), for

the subsequent crop.’’.

SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

(a) O

PERATION AND

DMINISTRATION OF

ROGRAM

.—Section

196(a)(2) of the Agricultural Market Transition Act (7 U.S.C.

7333(a)(2)) is amended by adding at the end the following:

‘‘(C) C

OMBINATION OF SIMILAR TYPES OR VARIETIES

.—

At the option of the Secretary, all types or varieties of

a crop or commodity, described in subparagraphs (A) and

(B), may be considered to be a single eligible crop under

this section.’’.

(b) T

IMELY

PPLICATION

.—Section 196(b)(1) of the Agricultural

Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the

second sentence by striking ‘‘at such time as the Secretary may

require’’ and inserting ‘‘not later than 30 days before the beginning

of the coverage period, as determined by the Secretary’’.

ECORDS AND

EPORTS

.—Section 196(b) of the Agricultural

Market Transition Act (7 U.S.C. 7333(b)) is amended—

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

‘‘(2) R

ECORDS

.—To be eligible for assistance under this

section, a producer shall provide annually to the Secretary

records of crop acreage, acreage yields, and production for each

crop, as required by the Secretary.’’; and

(2) in paragraph (3), by inserting ‘‘annual’’ after ‘‘shall

provide’’.

(d) L

OSS

EQUIREMENTS

.—Section 196 of the Agricultural

Market Transition Act (7 U.S.C. 7333) is amended by striking

subsection (c) and inserting the following:

‘‘(c) L

OSS

EQUIREMENTS

.—

‘‘(1) C

AUSE

.—To be eligible for assistance under this section,

a producer of an eligible crop shall have suffered a loss of

a noninsured commodity as the result of a cause described

in subsection (a)(3).

‘‘(2) A

SSISTANCE

.—On making a determination described

in subsection (a)(3), the Secretary shall provide assistance

under this section to producers of an eligible crop that have

suffered a loss as a result of the cause described in subsection

(a)(3).

‘‘(3) P

REVENTED PLANTING

.—Subject to paragraph (1), the

Secretary shall make a prevented planting noninsured crop

disaster assistance payment if the producer is prevented from

planting more than 35 percent of the acreage intended for

the eligible crop because of drought, flood, or other natural

disaster, as determined by the Secretary.

‘‘(4) A

REA TRIGGER

.—The Secretary shall provide assistance

to individual producers without any requirement of an area

loss.’’.

(e) S

ERVICE

.—Section 196 of the Agricultural Market

Transition Act (7 U.S.C. 7333) is amended by adding at the end

the following:

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114 STAT. 372 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(k) S

ERVICE

.—

‘‘(1) I

N GENERAL

.—To be eligible to receive assistance for

an eligible crop for a crop year under this section, a producer

shall pay to the Secretary (at the time at which the producer

submits the application under subsection (b)(1)) a service fee

for the eligible crop in an amount that is equal to the lesser

of—

‘‘(A) $100 per crop per county; or

‘‘(B) $300 per producer per county, but not to exceed

a total of $900 per producer.

‘‘(2) W

AIVER

.—The Secretary shall waive the service fee

required under paragraph (1) in the case of a limited resource

farmer, as defined by the Secretary.

‘‘(3) U

.—The Secretary shall deposit service fees collected

under this subsection in the Commodity Credit Corporation

Fund.’’.

Subtitle B—Improving Program Integrity

SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.

(a) A

DDITIONAL

ETHODS OF

NSURING

ROGRAM

OMPLIANCE

AND

NTEGRITY

.—Section 515 of the Federal Crop Insurance Act

(7 U.S.C. 1514) is amended to read as follows:

‘‘SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.

‘‘(a) P

URPOSE

.—

‘‘(1) I

N GENERAL

.—The purpose of this section is to improve

compliance with, and the integrity of, the Federal crop insur-

ance program.

‘‘(2) R

OLE OF INSURANCE PROVIDERS

.—The Corporation shall

work actively with approved insurance providers to address

program compliance and integrity issues as such issues develop.

‘‘(b) N

OTIFICATION OF

OMPLIANCE

ROBLEMS

.—

‘‘(1) N

OTIFICATION OF ERRORS

OMISSIONS

AND FAILURES

.—

The Corporation shall notify in writing an approved insurance

provider of any error, omission, or failure to follow Corporation

regulations or procedures for which the approved insurance

provider may be responsible and which may result in a debt

owed the Corporation.

‘‘(2) T

IME FOR NOTIFICATION

.—Notice under paragraph (1)

shall be given within 3 years after the end of the insurance

period during which the error, omission, or failure is alleged

to have occurred, except that this time limitation shall not

apply with respect to an error, omission, or procedural violation

that is willful or intentional.

‘‘(3) E

FFECT OF FAILURE TO TIMELY NOTIFY

.—Except as

provided in paragraph (2), the failure to timely provide the

notice required under this subsection shall relieve the approved

insurance provider from the debt owed the Corporation.

‘‘(c) R

ECONCILING

RODUCER

NFORMATION

.—The Secretary

shall develop and implement a coordinated plan for the Corporation

and the Farm Service Agency to reconcile all relevant information

received by the Corporation or the Farm Service Agency from a

producer who obtains crop insurance coverage under this title.

Beginning with the 2001 crop year, the Secretary shall require

that the Corporation and the Farm Service Agency reconcile such

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114 STAT. 373PUBLIC LAW 106–224—JUNE 20, 2000

producer-derived information on at least an annual basis in order

to identify and address any discrepancies.

‘‘(d) I

DENTIFICATION AND

LIMINATION OF

RAUD

, W

ASTE

AND

BUSE

.—

‘‘(1) FSA

MONITORING PROGRAM

.—The Secretary shall

develop and implement a coordinated plan for the Farm Service

Agency to assist the Corporation in the ongoing monitoring

of programs carried out under this title, including—

‘‘(A) at the request of the Corporation or, subject to

paragraph (2), on its own initiative if the Farm Service

Agency has reason to suspect the existence of program

fraud, waste, or abuse, conducting fact finding relative

to allegations of program fraud, waste, or abuse;

‘‘(B) reporting to the Corporation, in writing in a timely

manner, the results of any fact finding conducted pursuant

to subparagraph (A), any allegation of fraud, waste, or

abuse, and any identified program vulnerabilities; and

‘‘(C) assisting the Corporation and approved insurance

providers in auditing a statistically appropriate number

of claims made under any policy or plan of insurance under

this title.

‘‘(2) FSA

INQUIRY

.—If, within five calendar days after

receiving a report submitted under paragraph (1)(B), the Cor-

poration does not provide a written response that describes

the intended actions of the Corporation, the Farm Service

Agency may conduct its own inquiry into the alleged program

fraud, waste, or abuse on approval from the State director

of the Farm Service Agency of the State in which the alleged

fraud, waste, or abuse occurred. If as a result of the inquiry,

the Farm Service Agency concludes further investigation is

warranted, but the Corporation declines to proceed with the

investigation, the Farm Service Agency may refer the matter

to the Inspector General of the Department of Agriculture.

‘‘(3) U

SE OF FIELD INFRASTRUCTURE

.—The plan required

by paragraph (1) shall provide for the use of the field infrastruc-

ture of the Farm Service Agency. The Secretary shall ensure

that relevant Farm Service Agency personnel are appropriately

trained for any responsibilities assigned to the personnel under

the plan. At a minimum, the personnel shall receive the same

level of training and pass the same basic competency tests

as required of loss adjusters of approved insurance providers.

‘‘(4) M

AINTENANCE OF PROVIDER EFFORT

.—

‘‘(A) I

N GENERAL

.—The activities of the Farm Service

Agency under this subsection do not affect the responsi-

bility of approved insurance providers to conduct any audits

of claims or other program reviews required by the Corpora-

tion.

‘‘(B) N

OTIFICATION OF PROVIDERS

.—The Corporation

shall notify the appropriate approved insurance provider

of a report from the Farm Service Agency regarding alleged

program fraud, waste, or abuse, unless the provider is

suspected to be included in, or a party to, the alleged

fraud, waste, or abuse.

‘‘(C) R

ESPONSE

.—An approved insurance provider that

receives a notice under subparagraph (B) shall submit a

report to the Corporation, within an appropriate time

period determined by the Secretary, describing the actions

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114 STAT. 374 PUBLIC LAW 106–224—JUNE 20, 2000

taken by the provider to investigate the allegations of pro-

gram fraud, waste, or abuse contained in the notice.

‘‘(5) C

ORPORATION RESPONSE TO PROVIDER REPORTS

.—

‘‘(A) P

ROMPT RESPONSE

.—If an approved insurance pro-

vider reports to the Corporation that the approved insur-

ance provider suspects intentional misrepresentation,

fraud, waste, or abuse, the Corporation shall make a deter-

mination and provide, within 90 calendar days after

receiving the report, a written response that describes the

intended actions of the Corporation.

‘‘(B) C

OOPERATIVE EFFORT

.—The approved insurance

provider and the Corporation shall take coordinated action

in any case where misrepresentation, fraud, waste, or abuse

is alleged.

‘‘(C) F

AILURE TO TIMELY RESPOND

.—If the Corporation

fails to respond as required by subparagraph (A), an

approved insurance provider may request the Farm Service

Agency to assist the provider in an inquiry into the alleged

program fraud, waste, or abuse.

‘‘(e) C

ONSULTATION WITH

TATE

FSA C

OMMITTEES

.—The Sec-

retary shall establish procedures under which the Corporation shall

consult with the State committee of the Farm Service Agency for

a State with respect to policies, plans of insurance, and material

related to such policies or plans of insurance (including applicable

sales closing dates, assigned yields, and transitional yields) offered

in that State under this title.

‘‘(f ) D

ETECTION OF

ISPARATE

ERFORMANCE

.—

‘‘(1) C

OVERED ACTIVITIES

.—The Secretary shall establish

procedures under which the Corporation will be able to identify

the following:

‘‘(A) Any agent engaged in the sale of coverage offered

under this title where the loss claims associated with such

sales by the agent are equal to or greater than 150 percent

(or an appropriate percentage specified by the Corporation)

of the mean for all loss claims associated with such sales

by all other agents operating in the same area, as deter-

mined by the Corporation.

‘‘(B) Any person performing loss adjustment services

relative to coverage offered under this title where such

loss adjustments performed by the person result in accepted

or denied claims equal to or greater than 150 percent

(or an appropriate percentage specified by the Corporation)

of the mean for accepted or denied claims (as applicable)

for all other persons performing loss adjustment services

in the same area, as determined by the Corporation.

‘‘(2) R

EVIEW

.—

‘‘(A) R

EVIEW REQUIRED

.—The Corporation shall conduct

a review of any agent identified pursuant to paragraph

(1)(A), and any person identified pursuant to paragraph

(1)(B), to determine whether the higher loss claims associ-

ated with the agent or the higher number of accepted

or denied claims (as applicable) associated with the person

are the result of fraud, waste, or abuse.

‘‘(B) R

EMEDIAL ACTION

.—The Corporation shall take

appropriate remedial action with respect to any occurrence

of fraud, waste, or abuse identified in a review conducted

under this paragraph.

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114 STAT. 375PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(3) O

VERSIGHT OF AGENTS AND LOSS ADJUSTERS

.—The Cor-

poration shall develop procedures to require an annual review

by an approved insurance provider of the performance of each

agent and loss adjuster used by the approved insurance pro-

vider. The Corporation shall oversee the conduct of annual

reviews and may consult with an approved insurance provider

regarding any remedial action that is determined to be nec-

essary as a result of the annual review of an agent or loss

adjuster.

‘‘(g) S

UBMISSION OF

NFORMATION TO

ORPORATION TO

UPPORT

OMPLIANCE

FFORTS

.—

‘‘(1) T

YPES OF INFORMATION REQUIRED

.—The Secretary shall

establish procedures under which approved insurance providers

shall submit to the Corporation the following information with

respect to each policy or plan of insurance offered under this

title:

‘‘(A) The name and identification number of the

insured.

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

‘‘(C) The elected coverage level, including the price

election, of the insured.

‘‘(2) T

IME FOR SUBMISSION

.—The information required by

paragraph (1) with respect to a policy or plan of insurance

shall be submitted so as to ensure receipt by the Corporation

not later than the Saturday of the week containing the calendar

day that is 30 days after the applicable sales closing date

for the crop to be insured.

‘‘(h) S

ANCTIONS FOR

ROGRAM

ONCOMPLIANCE AND

RAUD

.—

‘‘(1) F

ALSE INFORMATION

.—A producer, agent, loss adjuster,

approved insurance provider, or other person that willfully

and intentionally provides any false or inaccurate information

to the Corporation or to an approved insurance provider with

respect to a policy or plan of insurance under this title may,

after notice and an opportunity for a hearing on the record,

be subject to one or more of the sanctions described in para-

graph (3).

‘‘(2) C

OMPLIANCE

.—A person may, after notice and an

opportunity for a hearing on the record, be subject to one

or more of the sanctions described in paragraph (3) if the

person is a producer, agent, loss adjuster, approved insurance

provider, or other person that willfully and intentionally fails

to comply with a requirement of the Corporation.

‘‘(3) A

UTHORIZED SANCTIONS

.—If the Secretary determines

that a person covered by this subsection has committed a

material violation under paragraph (1) or (2), the following

sanctions may be imposed:

‘‘(A) C

IVIL FINES

.—A civil fine may be imposed for

each violation in an amount not to exceed the greater

of—

‘‘(i) the amount of the pecuniary gain obtained

as a result of the false or inaccurate information pro-

vided or the noncompliance with a requirement of this

title; or

‘‘(ii) $10,000.

‘‘(B) P

RODUCER DISQUALIFICATION

.—In the case of a

violation committed by a producer, the producer may be

disqualified for a period of up to 5 years from receiving

Deadline.

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114 STAT. 376 PUBLIC LAW 106–224—JUNE 20, 2000

any monetary or nonmonetary benefit provided under each

of the following:

‘‘(i) This title.

‘‘(ii) The Agricultural Market Transition Act (7

U.S.C. 7201 et seq.), including the noninsured crop

disaster assistance program under section 196 of that

Act (7 U.S.C. 7333).

‘‘(iii) The Agricultural Act of 1949 (7 U.S.C. 1421

et seq.).

‘‘(iv) The Commodity Credit Corporation Charter

Act (15 U.S.C. 714 et seq.).

‘‘(v) The Agricultural Adjustment Act of 1938 (7

U.S.C. 1281 et seq.).

‘‘(vi) Title XII of the Food Security Act of 1985

(16 U.S.C. 3801 et seq.).

‘‘(vii) The Consolidated Farm and Rural Develop-

ment Act (7 U.S.C. 1921 et seq.).

‘‘(viii) Any law that provides assistance to a pro-

ducer of an agricultural commodity affected by a crop

loss or a decline in the prices of agricultural commod-

ities.

‘‘(C) D

ISQUALIFICATION OF OTHER PERSONS

.—In the case

of a violation committed by an agent, loss adjuster,

approved insurance provider, or other person (other than

a producer), the violator may be disqualified for a period

of up to 5 years from participating in any program, or

receiving any benefit, under this title.

‘‘(4) A

SSESSMENT OF SANCTION

.—The Secretary shall con-

sider the gravity of the violation of the person covered by

this subsection in determining—

‘‘(A) whether to impose a sanction under this sub-

section; and

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

‘‘(5) D

ISCLOSURE OF SANCTIONS

.—Each policy or plan of

insurance under this title shall provide notice describing the

sanctions prescribed under paragraph (3) for willfully and

intentionally—

‘‘(A) providing false or inaccurate information to the

Corporation or to an approved insurance provider; or

‘‘(B) failing to comply with a requirement of the Cor-

poration.

‘‘(6) I

NSURANCE FUND

.—Any funds collected under this sub-

section shall be deposited into the insurance fund established

under section 516(c).

‘‘(i) A

NNUAL

EPORT ON

ROGRAM

OMPLIANCE AND

NTEGRITY

FFORTS

.—

‘‘(1) R

EPORT REQUIRED

.—The Secretary shall submit to the

Committee on Agriculture of the House of Representatives and

the Committee on Agriculture, Nutrition, and Forestry of the

Senate an annual report describing the operation of this section

during the preceding year and efforts undertaken by the Sec-

retary and the Corporation to carry out this section.

‘‘(2) I

NFORMATION REGARDING FRAUD

WASTE

AND ABUSE

.—

The report shall identify specific occurrences of waste, fraud,

or abuse and contain an outline of actions that have been

or are being taken to eliminate the identified waste, fraud,

or abuse.

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114 STAT. 377PUBLIC LAW 106–224—JUNE 20, 2000

‘‘( j) I

NFORMATION

ANAGEMENT

.—

‘‘(1) S

YSTEMS UPGRADES

.—The Secretary shall upgrade the

information management systems of the Corporation used in

the administration and enforcement and this title. In upgrading

the systems, the Secretary shall ensure that new hardware

and software are compatible with the hardware and software

used by other agencies of the Department to maximize data

sharing and promote the purpose of this section.

‘‘(2) U

SE OF AVAILABLE INFORMATION TECHNOLOGIES

.—The

Secretary shall use the information technologies known as data

mining and data warehousing and other available information

technologies to administer and enforce this title.

‘‘(3) U

SE OF PRIVATE SECTOR

.—The Secretary may enter

into contracts to use private sector expertise and technological

resources in implementing this subsection.

‘‘(k) F

UNDING

.—

‘‘(1) A

VAILABLE FUNDS

.—To carry out this section and sec-

tions 502(c), 506(h), 508(a)(3)(B), and 508(f )(3)(A), the Corpora-

tion may use, from amounts made available from the insurance

fund established under section 516(c), not more than

$23,000,000 during the period of fiscal years 2001 through

2005, of which not more than $9,000,000 shall be available

for fiscal year 2001.

‘‘(2) P

ROHIBITION

.—None of the funds made available under

paragraph (1) may be used to pay the salaries of employees

of the Corporation.’’.

(b) C

ONFORMING

MENDMENT

.—Section 506 of the Federal Crop

Insurance Act (7 U.S.C. 1506) is amended—

(1) by striking subsection (q); and

(2) by redesignating subsections (r) and (s) as subsections

(q) and (r), respectively.

SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.

Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502)

is amended by adding at the end the following:

‘‘(c) P

ROTECTION OF

ONFIDENTIAL

NFORMATION

.—

‘‘(1) G

ENERAL PROHIBITION AGAINST DISCLOSURE

.—Except

as provided in paragraph (2), the Secretary, any other officer

or employee of the Department or an agency thereof, an

approved insurance provider and its employees and contractors,

and any other person may not disclose to the public information

furnished by a producer under this title.

‘‘(2) A

UTHORIZED DISCLOSURE

.—

‘‘(A) D

ISCLOSURE IN STATISTICAL OR AGGREGATE

FORM

.—Information described in paragraph (1) may be dis-

closed to the public if the information has been transformed

into a statistical or aggregate form that does not allow

the identification of the person who supplied particular

information.

‘‘(B) C

ONSENT OF PRODUCER

.—A producer may consent

to the disclosure of information described in paragraph

(1). The participation of the producer in, and the receipt

of any benefit by the producer under, this title or any

other program administered by the Secretary may not be

conditioned on the producer providing consent under this

paragraph.

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114 STAT. 378 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(3) V

IOLATIONS

;

PENALTIES

.—Section 1770(c) of the Food

Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect

to the release of information collected in any manner or for

any purpose prohibited by this subsection.’’.

SEC. 123. GOOD FARMING PRACTICES.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.

1508(a)) is amended by striking paragraph (3) and inserting the

following:

‘‘(3) E

XCLUSION OF LOSSES DUE TO CERTAIN ACTIONS OF

PRODUCER

.—

‘‘(A) E

XCLUSIONS

.—Insurance provided under this sub-

section shall not cover losses due to—

‘‘(i) the neglect or malfeasance of the producer;

‘‘(ii) the failure of the producer to reseed to the

same crop in such areas and under such circumstances

as it is customary to reseed; or

‘‘(iii) the failure of the producer to follow good

farming practices, including scientifically sound

sustainable and organic farming practices.

‘‘(B) G

OOD FARMING PRACTICES

.—

‘‘(i) I

NFORMAL ADMINISTRATIVE PROCESS

.—A pro-

ducer shall have the right to a review of a determina-

tion regarding good farming practices made under

subparagraph (A)(iii) in accordance with an informal

administrative process to be established by the Cor-

poration.

‘‘(ii) A

DMINISTRATIVE REVIEW

.—

‘‘(I) N

O ADVERSE DECISION

.—The determina-

tion shall not be considered an adverse decision

for purposes of subtitle H of the Department of

Agriculture Reorganization Act of 1994 (7 U.S.C.

6991 et seq.).

‘‘(II) R

EVERSAL OR MODIFICATION

.—Except as

provided in clause (i), the determination may not

be reversed or modified as the result of a subse-

quent administrative review.

‘‘(iii) J

UDICIAL REVIEW

.—

‘‘(I) R

IGHT TO REVIEW

.—A producer shall have

the right to judicial review of the determination

without exhausting any right to a review under

clause (i).

‘‘(II) R

EVERSAL OR MODIFICATION

.—The deter-

mination may not be reversed or modified as the

result of judicial review unless the determination

is found to be arbitrary or capricious.’’.

SEC. 124. RECORDS AND REPORTING.

(a) C

ONDITION OF

BTAINING

OVERAGE

.—Section 508(f )(3) of

the Federal Crop Insurance Act (7 U.S.C. 1508(f )(3)) is amended

by striking subparagraph (A) and inserting the following:

‘‘(A) provide annually records acceptable to the Sec-

retary regarding crop acreage, acreage yields, and produc-

tion for each agricultural commodity insured under this

title or accept a yield determined by the Corporation; and’’.

(b) A

DDITIONAL

ENERAL

OWER

.—Section 506 of the Federal

Crop Insurance Act (7 U.S.C. 1506) is amended by striking sub-

section (h) and inserting the following:

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114 STAT. 379PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(h) C

OLLECTION AND

HARING OF

NFORMATION

.—

‘‘(1) S

URVEYS AND INVESTIGATIONS

.—The Corporation may

conduct surveys and investigations relating to crop insurance,

agriculture-related risks and losses, and other issues related

to carrying out this title.

‘‘(2) D

ATA COLLECTION

.—The Corporation shall assemble

data for the purpose of establishing sound actuarial bases for

insurance on agricultural commodities.

‘‘(3) S

HARING OF RECORDS

.—Notwithstanding section 502(c),

records submitted in accordance with this title and section

196 of the Agricultural Market Transition Act (7 U.S.C. 7333)

shall be available to agencies and local offices of the Depart-

ment, appropriate State and Federal agencies and divisions,

and approved insurance providers for use in carrying out this

title, such section 196, and other agricultural programs.’’.

Subtitle C—Research and Pilot Programs

SEC. 131. RESEARCH AND DEVELOPMENT.

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is

amended by adding at the end the following:

‘‘SEC. 522. RESEARCH AND DEVELOPMENT.

‘‘(a) D

EFINITION OF

OLICY

.—In this section, the term ‘policy’

means a policy, plan of insurance, provision of a policy or plan

of insurance, and related materials.

‘‘(b) R

EIMBURSEMENT OF

ESEARCH

, D

EVELOPMENT

AND

AINTENANCE

OSTS

.—

‘‘(1) R

ESEARCH AND DEVELOPMENT REIMBURSEMENT

.—The

Corporation shall provide a payment to reimburse an applicant

for research and development costs directly related to a policy

that is—

‘‘(A) submitted to the Board and approved by the Board

under section 508(h) for reinsurance; and

‘‘(B) if applicable, offered for sale to producers.

‘‘(2) E

XISTING PLANS

.—The Corporation shall reimburse

costs associated with research and development costs directly

related to a policy that was approved by the Board prior to

the date of the enactment of this section.

‘‘(3) M

ARKETABILITY

.—The Corporation shall approve a

reimbursement under paragraph (1) or (2) only after deter-

mining that the policy is marketable based on a reasonable

marketing plan, as determined by the Board.

‘‘(4) M

AINTENANCE PAYMENTS

.—

‘‘(A) R

EQUIREMENT

.—The Corporation shall reimburse

maintenance costs associated with the annual cost of under-

writing for a policy described in paragraphs (1) and (2).

‘‘(B) D

URATION

.—Payments with respect to mainte-

nance costs may be provided for a period of not more

than four reinsurance years subsequent to Board approval

for payment under this subsection.

‘‘(C) O

PTIONS FOR MAINTENANCE

.—On the expiration

of the 4-year period described in subparagraph (B), the

approved insurance provider responsible for maintenance

of the policy may—

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114 STAT. 380 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(i) maintain the policy and charge a fee to

approved insurance providers that elect to sell the

policy under this subsection; or

‘‘(ii) transfer responsibility for maintenance of the

policy to the Corporation.

‘‘(D) F

.—

‘‘(i) A

MOUNT

.—Subject to approval by the Board,

the amount of the fee that is payable by an approved

insurance provider that elects to sell the policy shall

be an amount that is determined by the approved

insurance provider maintaining the policy.

‘‘(ii) A

PPROVAL

.—The Board shall approve the

amount of a fee determined under clause (i) for mainte-

nance of the policy unless the Board determines that

the amount of the fee—

‘‘(I) is unreasonable in relation to the mainte-

nance costs associated with the policy; or

‘‘(II) unnecessarily inhibits the use of the

policy.

‘‘(5) T

REATMENT OF PAYMENT

.—Payments made under this

subsection for a policy shall be considered as payment in full

by the Corporation for the research and development conducted

with regard to the policy and any property rights to the policy.

‘‘(6) R

EIMBURSEMENT AMOUNT

.—The Corporation shall

determine the amount of the payment under this subsection

for an approved policy based on the complexity of the policy

and the size of the area in which the policy or material is

expected to be sold.

‘‘(c) R

ESEARCH AND

EVELOPMENT

ONTRACTING

UTHORITY

.—

‘‘(1) A

UTHORITY

.—The Corporation may enter into contracts

to carry out research and development to—

‘‘(A) increase participation in States in which the Cor-

poration determines that—

‘‘(i) there is traditionally, and continues to be, a

low level of Federal crop insurance participation and

availability; and

‘‘(ii) the State is underserved by the Federal crop

insurance program;

‘‘(B) increase participation in areas that are under-

served by the Federal crop insurance program; and

‘‘(C) increase participation by producers of underserved

agricultural commodities, including specialty crops.

‘‘(2) U

NDERSERVED AGRICULTURAL COMMODITIES AND

AREAS

.—

‘‘(A) A

UTHORITY

.—The Corporation may enter into con-

tracts under procedures prescribed by the Corporation with

qualified persons to carry out research and development

for policies that promote the purposes of paragraph (1).

‘‘(B) C

ONSULTATION

.—Before entering into a contract

under subparagraph (A), the Corporation shall consult with

groups representing producers of agricultural commodities

that would be served by the policies that are the subject

of the research and development.

‘‘(3) Q

UALIFIED PERSONS

.—A person with experience in crop

insurance or farm or ranch risk management (including a col-

lege or university, an approved insurance provider, and a trade

or research organization), as determined by the Corporation,

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114 STAT. 381PUBLIC LAW 106–224—JUNE 20, 2000

shall be eligible to enter into a contract with the Corporation

under this subsection.

‘‘(4) T

YPES OF CONTRACTS

.—A contract under this sub-

section may provide for research and development regarding

new or expanded policies, including policies based on adjusted

gross income, cost-of-production, quality losses, and an inter-

mediate base program with a higher coverage and cost than

catastrophic risk protection.

‘‘(5) U

SE OF RESULTING POLICIES

.—The Corporation may

offer any policy developed under this subsection that is

approved by the Board.

‘‘(6) R

ESEARCH AND DEVELOPMENT PRIORITIES

.—The Cor-

poration shall establish as one of the highest research and

development priorities of the Corporation the development of

a pasture, range, and forage program.

‘‘(7) S

TUDY OF MULTIYEAR COVERAGE

.—

‘‘(A) I

N GENERAL

.—The Corporation shall contract with

a qualified person to conduct a study to determine whether

offering policies that provide coverage for multiple years

would reduce fraud, waste, and abuse by persons that

participate in the Federal crop insurance program.

‘‘(B) R

EPORT

.—Not later than 1 year after the date

of the enactment of this section, the Corporation shall

submit to the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutri-

tion, and Forestry of the Senate a report that describes

the results of the study conducted under subparagraph

(A).

‘‘(8) C

ONTRACT FOR REVENUE COVERAGE PLANS

.—The Cor-

poration shall enter into a contract for research and develop-

ment regarding one or more revenue coverage plans that are

designed to enable producers to take maximum advantage of

fluctuations in market prices and thereby maximize revenue

realized from the sale of an agricultural commodity. A revenue

coverage plan may include the use of existing market

instruments or the development of new market instruments.

Not later than 15 months after the date of the enactment

of this section, the Corporation shall submit to the Committee

on Agriculture of the House of Representatives and the Com-

mittee on Agriculture, Nutrition, and Forestry of the Senate

a report that describes the results of the contract entered

into under this paragraph.

‘‘(9) C

ONTRACT FOR COST OF PRODUCTION POLICY

.—

‘‘(A) A

UTHORITY

.—The Corporation shall enter into a

contract for research and development regarding a cost

of production policy.

‘‘(B) R

ESEARCH AND DEVELOPMENT

.—The research and

development shall—

‘‘(i) take into consideration the differences in the

cost of production on a county-by-county basis; and

‘‘(ii) cover as many commodities as is practicable.

‘‘(10) R

ELATION TO LIMITATIONS

.—A policy developed under

this subsection may be prepared without regard to the limita-

tions of this title, including—

‘‘(A) the requirement concerning the levels of coverage

and rates; and

Deadline.

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114 STAT. 382 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(B) the requirement that the price level for each

insured agricultural commodity must equal the expected

market price for the agricultural commodity, as established

by the Board.

‘‘(d) P

ARTNERSHIPS FOR

ISK

ANAGEMENT

EVELOPMENT AND

MPLEMENTATION

.—

‘‘(1) P

URPOSE

.—The purpose of this subsection is to

authorize the Corporation to enter into partnerships with public

and private entities for the purpose of increasing the avail-

ability of loss mitigation, financial, and other risk management

tools for producers, with a priority given to risk management

tools for producers of agricultural commodities covered by sec-

tion 196 of the Agricultural Market Transition Act (7 U.S.C.

7333), specialty crops, and underserved agricultural commod-

ities.

‘‘(2) A

UTHORITY

.—The Corporation may enter into partner-

ships with the Cooperative State Research, Education, and

Extension Service, the Agricultural Research Service, the

National Oceanic Atmospheric Administration, and other appro-

priate public and private entities with demonstrated capabili-

ties in developing and implementing risk management and

marketing options for producers of specialty crops and under-

served agricultural commodities.

‘‘(3) O

BJECTIVES

.—The Corporation may enter into a part-

nership under paragraph (2)—

‘‘(A) to enhance the notice and timeliness of notice

of weather conditions that could negatively affect crop

yields, quality, and final product use in order to allow

producers to take preventive actions to increase end product

profitability and marketability and to reduce the possibility

of crop insurance claims;

‘‘(B) to develop a multifaceted approach to pest manage-

ment and fertilization to decrease inputs, decrease environ-

mental exposure, and increase application efficiency;

‘‘(C) to develop or improve techniques for planning,

breeding, planting, growing, maintaining, harvesting,

storing, shipping, and marketing that will address quality

and quantity challenges associated with year-to-year and

regional variations;

‘‘(D) to clarify labor requirements and assist producers

in complying with requirements to better meet the phys-

ically intense and time-compressed planting, tending, and

harvesting requirements associated with the production of

specialty crops and underserved agricultural commodities;

‘‘(E) to provide assistance to State foresters or equiva-

lent officials for the prescribed use of burning on private

forest land for the prevention, control, and suppression

of fire;

‘‘(F) to provide producers with training and informa-

tional opportunities so that the producers will be better

able to use financial management, crop insurance, mar-

keting contracts, and other existing and emerging risk

management tools; and

‘‘(G) to develop other risk management tools to further

increase economic and production stability.

‘‘(e) F

UNDING

.—

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114 STAT. 383PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(1) R

EIMBURSEMENTS

.—Of the amounts made available

from the insurance fund established under section 516(c), the

Corporation may use to provide reimbursements under sub-

section (b) not more than $10,000,000 for each of fiscal years

2001 and 2002 and not more than $15,000,000 for fiscal year

2003 and each subsequent fiscal year.

‘‘(2) C

ONTRACTING

.—

‘‘(A) A

UTHORITY

.—Of the amounts made available from

the insurance fund established under section 516(c), the

Corporation may use to carry out contracting and partner-

ships under subsections (c) and (d) not more than

$20,000,000 for each of fiscal years 2001 through 2003

and not more than $25,000,000 for fiscal year 2004 and

each subsequent fiscal year.

‘‘(B) U

NDERSERVED STATES

.—Of the amount made

available under subparagraph (A) for a fiscal year, the

Corporation shall use not more than $5,000,000 for the

fiscal year to carry out contracting for research and develop-

ment to carry out the purpose described in subsection

(c)(1)(A).

‘‘(3) U

NUSED FUNDING

.—If the Corporation determines that

the amount available to provide either reimbursement pay-

ments or contract payments under this section for a fiscal

year is not needed for such purposes, the Corporation may

use the excess amount to carry out another function authorized

under this section.

‘‘(4) P

ROHIBITED RESEARCH AND DEVELOPMENT BY CORPORA

TION

.—

‘‘(A) N

EW POLICIES

.—Notwithstanding subsection (d),

on and after October 1, 2000, the Corporation shall not

conduct research and development for any new policy for

an agricultural commodity offered under this title.

‘‘(B) E

XISTING POLICIES

.—Any policy developed by the

Corporation under this title before that date may continue

to be offered for sale to producers.’’.

SEC. 132. PILOT PROGRAMS.

(a) A

UTHORITY

.—The Federal Crop Insurance Act (7 U.S.C.

1501 et seq.), as amended by section 131, is amended by adding

at the end the following:

‘‘SEC. 523. PILOT PROGRAMS.

‘‘(a) G

ENERAL

ROVISIONS

.—

‘‘(1) A

UTHORITY

.—Except as otherwise provided in this sec-

tion, the Corporation may conduct a pilot program submitted

to and approved by the Board under section 508(h), or that

is developed under subsection (b) or section 522, to evaluate

whether a proposal or new risk management tool tested by

the pilot program is suitable for the marketplace and addresses

the needs of producers of agricultural commodities.

‘‘(2) P

RIVATE COVERAGE

.—Under this section, the Corpora-

tion shall not conduct any pilot program that provides insurance

protection against a risk if insurance protection against the

risk is generally available from private companies.

‘‘(3) C

OVERED ACTIVITIES

.—The pilot programs described

in paragraph (1) may include pilot programs providing insur-

ance protection against losses involving—

7 USC 1523.

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114 STAT. 384 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(A) reduced forage on rangeland caused by drought

or insect infestation;

‘‘(B) livestock poisoning and disease;

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

‘‘(D) unique special risks related to fruits, nuts, vegeta-

bles, and specialty crops in general, aquacultural species,

and forest industry needs (including appreciation);

‘‘(E) after October 1, 2001, wild salmon, except that—

‘‘(i) any pilot program with regard to wild salmon

may be carried out without regard to the limitations

of this title; and

‘‘(ii) the Corporation shall conduct all wild salmon

programs under this title so that, to the maximum

extent practicable, all costs associated with conducting

the programs are not expected to exceed $1,000,000

for fiscal year 2002 and each subsequent fiscal year.

‘‘(4) S

COPE OF PILOT PROGRAMS

.—The Corporation may—

‘‘(A) approve a pilot program under this section to

be conducted on a regional, State, or national basis after

considering the interests of affected producers and the

interests of, and risks to, the Corporation;

‘‘(B) operate the pilot program, including any modifica-

tions of the pilot program, for a period of up to 4 years;

‘‘(C) extend the time period for the pilot program for

additional periods, as determined appropriate by the Cor-

poration; and

‘‘(D) provide pilot programs that would allow

producers—

‘‘(i) to receive a reduced premium for using whole

farm units or single crop units of insurance; and

‘‘(ii) to cross State and county boundaries to form

insurable units.

‘‘(5) E

VALUATION

.—

‘‘(A) R

EQUIREMENT

.—After the completion of any pilot

program under this section, the Corporation shall evaluate

the pilot program and submit to the Committee on Agri-

culture of the House of Representatives and the Committee

on Agriculture, Nutrition, and Forestry of the Senate a

report on the operations of the pilot program.

‘‘(B) E

VALUATION AND RECOMMENDATIONS

.—The report

shall include an evaluation by the Corporation of the pilot

program and the recommendations of the Corporation with

respect to implementing the program on a national basis.

‘‘(b) L

IVESTOCK

ILOT

ROGRAMS

.—

‘‘(1) D

EFINITION OF LIVESTOCK

.—In this subsection, the

term ‘livestock’ includes, but is not limited to, cattle, sheep,

swine, goats, and poultry.

‘‘(2) P

ROGRAMS REQUIRED

.—Subject to paragraph (7), the

Corporation shall conduct two or more pilot programs to

evaluate the effectiveness of risk management tools for livestock

producers, including the use of futures and options contracts

and policies and plans of insurance that protect the interests

of livestock producers and that provide—

‘‘(A) livestock producers with reasonable protection

from the financial risks of price or income fluctuations

inherent in the production and marketing of livestock; or

‘‘(B) protection for production losses.

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114 STAT. 385PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(3) P

URPOSE OF PROGRAMS

.—To the maximum extent prac-

ticable, the Corporation shall evaluate the greatest number

and variety of pilot programs described in paragraph (2) to

determine which of the offered risk management tools are best

suited to protect livestock producers from the financial risks

associated with the production and marketing of livestock.

‘‘(4) T

IMING

.—The Corporation shall begin conducting live-

stock pilot programs under this subsection during fiscal year

2001.

‘‘(5) R

ELATION TO OTHER LIMITATIONS

.—Any policy or plan

of insurance offered under this subsection may be prepared

without regard to the limitations of this title.

‘‘(6) A

SSISTANCE

.—As part of a pilot program under this

subsection, the Corporation may provide reinsurance for policies

or plans of insurance and subsidize the purchase of futures

and options contracts or policies and plans of insurance offered

under the pilot program.

‘‘(7) P

RIVATE INSURANCE

.—No action may be undertaken

with respect to a risk under this subsection if the Corporation

determines that insurance protection for livestock producers

against the risk is generally available from private companies.

‘‘(8) L

OCATION

.—The Corporation shall conduct the live-

stock pilot programs under this subsection in a number of

counties that is determined by the Corporation to be adequate

to provide a comprehensive evaluation of the feasibility,

effectiveness, and demand among producers for the risk

management tools evaluated in the pilot programs.

‘‘(9) E

LIGIBLE PRODUCERS

.—Any producer of a type of live-

stock covered by a pilot program under this subsection that

owns or operates a farm or ranch in a county selected as

a location for that pilot program shall be eligible to participate

in that pilot program.

‘‘(10) L

IMITATION ON EXPENDITURES

.—The Corporation shall

conduct all livestock programs under this title so that, to the

maximum extent practicable, all costs associated with con-

ducting the livestock programs (other than research and

development costs covered by section 522) are not expected

to exceed the following:

‘‘(A) $10,000,000 for each of fiscal years 2001 and 2002.

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

‘‘(C) $20,000,000 for fiscal year 2004 and each subse-

quent fiscal year.

‘‘(c) R

EVENUE

NSURANCE

ILOT

ROGRAM

.—

‘‘(1) I

N GENERAL

.—Subject to section 522(e)(4), the Sec-

retary shall carry out a pilot program in a limited number

of counties, as determined by the Secretary, for crop years

1997 through 2001, under which a producer of wheat, feed

grains, soybeans, or such other commodity as the Secretary

considers appropriate may elect to receive insurance against

loss of revenue, as determined by the Secretary.

‘‘(2) A

DMINISTRATION

.—Revenue insurance under this sub-

section shall—

‘‘(A) be offered through reinsurance arrangements with

private insurance companies;

‘‘(B) offer at least a minimum level of coverage that

is an alternative to catastrophic crop insurance;

‘‘(C) be actuarially sound; and

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114 STAT. 386 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(D) require the payment of premiums and administra-

tive fees by an insured producer.

‘‘(d) P

REMIUM

ATE

EDUCTION

ILOT

ROGRAM

.—

‘‘(1) P

URPOSE

.—The purpose of the pilot program estab-

lished under this subsection is to determine whether approved

insurance providers will compete to market policies or plans

of insurance with reduced rates of premium, in a manner

that maintains the financial soundness of approved insurance

providers and is consistent with the integrity of the Federal

crop insurance program.

‘‘(2) E

STABLISHMENT

.—

‘‘(A) I

N GENERAL

.—Beginning with the 2002 crop year,

the Corporation shall establish a pilot program under which

approved insurance providers may propose for approval

by the Board policies or plans of insurance with reduced

rates of premium—

‘‘(i) for one or more agricultural commodities; and

‘‘(ii) within a limited geographic area, as proposed

by the approved insurance provider and approved by

the Board.

‘‘(B) D

ETERMINATION BY BOARD

.—The Board shall

approve a policy or plan of insurance proposed under this

subsection that involves a premium reduction if the Board

determines that—

‘‘(i) the interests of producers are adequately pro-

tected within the pilot area;

‘‘(ii) rates of premium are actuarially appropriate,

as determined by the Board;

‘‘(iii) the size of the proposed pilot area is adequate;

‘‘(iv) the proposed policy or plan of insurance would

not unfairly discriminate among producers within the

proposed pilot area;

‘‘(v) if the proposed policy or plan of insurance

were available in a geographic area larger than the

proposed pilot area, the proposed policy or plan of

insurance would—

‘‘(I) not have a significant adverse impact on

the crop insurance delivery system;

‘‘(II) not result in a reduction of program

integrity;

‘‘(III) be actuarially appropriate; and

‘‘(IV) not place an additional financial burden

on the Federal Government; and

‘‘(vi) the proposed policy or plan of insurance meets

other requirements of this title determined appropriate

by the Board.

‘‘(C) T

IME LIMITATIONS AND PROCEDURES

.—The time

limitations and procedures of the Board established under

section 508(h) shall apply to a proposal submitted under

this subsection.’’.

(b) C

ONFORMING

MENDMENTS

.—Section 518 of the Federal

Crop Insurance Act (7 U.S.C. 1518) is amended—

(1) by striking ‘‘livestock and’’ after ‘‘commodity, excluding’’;

and

(2) by striking ‘‘under subsection (a) or (m) of section 508

of this title’’.

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114 STAT. 387PUBLIC LAW 106–224—JUNE 20, 2000

SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as

amended by section 132(a), is amended by adding at the end the

following:

‘‘SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

‘‘(a) E

DUCATION

SSISTANCE

.—

‘‘(1) I

N GENERAL

.—Subject to the amounts made available

under paragraph (4)—

‘‘(A) the Corporation shall carry out the program estab-

lished under paragraph (2); and

‘‘(B) the Secretary, acting through the Cooperative

State Research, Education, and Extension Service, shall

carry out the program established under paragraph (3).

‘‘(2) E

DUCATION AND INFORMATION

.—The Corporation shall

establish a program under which crop insurance education

and information is provided to producers in States in which

(as determined by the Secretary)—

‘‘(A) there is traditionally, and continues to be, a low

level of Federal crop insurance participation and avail-

ability; and

‘‘(B) producers are underserved by the Federal crop

insurance program.

‘‘(3) P

ARTNERSHIPS FOR RISK MANAGEMENT EDUCATION

.—

‘‘(A) A

UTHORITY

.—The Secretary, acting through the

Cooperative State Research, Education, and Extension

Service, shall establish a program under which competitive

grants are made to qualified public and private entities

(including land grant colleges, cooperative extension serv-

ices, and colleges or universities), as determined by the

Secretary, for the purpose of educating agricultural pro-

ducers about the full range of risk management activities,

including futures, options, agricultural trade options, crop

insurance, cash forward contracting, debt reduction,

production diversification, farm resources risk reduction,

and other risk management strategies.

‘‘(B) B

ASIS FOR GRANTS

.—A grant under this paragraph

shall be awarded on the basis of merit and shall be subject

to peer or merit review.

‘‘(C) O

BLIGATION PERIOD

.—Funds for a grant under

this paragraph shall be available to the Secretary for

obligation for a 2-year period.

‘‘(D) A

DMINISTRATIVE COSTS

.—The Secretary may use

not more than 4 percent of the funds made available for

grants under this paragraph for administrative costs

incurred by the Secretary in carrying out this paragraph.

‘‘(4) F

UNDING

.—From the insurance fund established under

section 516(c), there is transferred—

‘‘(A) for the education and information program estab-

lished under paragraph (2), $5,000,000 for fiscal year 2001

and each subsequent fiscal year; and

‘‘(B) for the partnerships for risk management edu-

cation program established under paragraph (3), $5,000,000

for fiscal year 2001 and each subsequent fiscal year.

‘‘(b) A

GRICULTURAL

ANAGEMENT

SSISTANCE

.—

7 USC 1524.

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114 STAT. 388 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(1) A

UTHORITY

.—The Secretary shall provide cost share

assistance to producers, in a manner determined by the Sec-

retary, in not less than 10, nor more than 15, States in which

participation in the Federal crop insurance program is histori-

cally low, as determined by the Secretary.

‘‘(2) U

SES

.—A producer may use cost share assistance pro-

vided under this subsection to—

‘‘(A) construct or improve—

‘‘(i) watershed management structures; or

‘‘(ii) irrigation structures;

‘‘(B) plant trees to form windbreaks or to improve

water quality;

‘‘(C) mitigate financial risk through production diver-

sification or resource conservation practices, including—

‘‘(i) soil erosion control;

‘‘(ii) integrated pest management; or

‘‘(iii) transition to organic farming;

‘‘(D) enter into futures, hedging, or options contracts

in a manner designed to help reduce production, price,

or revenue risk;

‘‘(E) enter into agricultural trade options as a hedging

transaction to reduce production, price, or revenue risk;

‘‘(F) conduct any other activity related to the activities

described in subparagraphs (A) through (E), as determined

by the Secretary.

‘‘(2) P

AYMENT LIMITATION

.—The total amount of payments

made to a person (as defined in section 1001(5) of the Food

Security Act (7 U.S.C. 1308(5))) under this subsection for any

year may not exceed $50,000.

‘‘(3) C

OMMODITY CREDIT CORPORATION

.—

‘‘(A) I

N GENERAL

.—The Secretary shall carry out this

subsection through the Commodity Credit Corporation.

‘‘(B) F

UNDING

.—The Commodity Credit Corporation

shall make available to carry out this subsection

$10,000,000 for fiscal year 2001 and each subsequent fiscal

year.’’.

SEC. 134. OPTIONS PILOT PROGRAM.

Section 191 of the Agricultural Market Transition Act (7 U.S.C.

7331) is amended—

(1) in the first sentence of subsection (b), by striking ‘‘100

counties, except that not more than 6’’ and inserting ‘‘300

counties, except that not more than 25’’;

(2) in subsection (c)(2), by inserting before the semicolon

the following: ‘‘during any calendar year in which a county

in which the farm of the producer is located is included in

the pilot program’’; and

(3) in the first sentence of subsection (h), by inserting

before the period at the end the following: ‘‘, except that the

amount of Commodity Credit Corporation funds used to carry

out this section shall not exceed, to the maximum extent prac-

ticable, $9,000,000 for fiscal year 2001, $15,000,000 for fiscal

year 2002, and $2,000,000 for fiscal year 2003’’.

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114 STAT. 389PUBLIC LAW 106–224—JUNE 20, 2000

Subtitle D—Administration

SEC. 141. RELATION TO OTHER LAWS.

Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502),

as amended by section 122, is amended by adding at the end

the following:

‘‘(d) R

ELATION TO

THER

AWS

.—

‘‘(1) T

ERMS AND CONDITIONS OF POLICIES AND PLANS

.—The

terms and conditions of any policy or plan of insurance offered

under this title that is reinsured by the Corporation shall

not—

‘‘(A) be subject to the jurisdiction of the Commodity

Futures Trading Commission or the Securities and

Exchange Commission; or

‘‘(B) be considered to be accounts, agreements

(including any transaction that is of the character of, or

is commonly known to the trade as, an ‘option’, ‘privilege’,

‘indemnity’, ‘bid’, ‘offer’, ‘put’, ‘call’, ‘advance guaranty’, or

‘decline guaranty’), or transactions involving contracts of

sale of a commodity for future delivery, traded or executed

on a contract market for the purposes of the Commodity

Exchange Act (7 U.S.C. 1 et seq.).

‘‘(2) E

FFECT ON CFTC AND COMMODITY EXCHANGE ACT

.—

Nothing in this title affects the jurisdiction of the Commodity

Futures Trading Commission or the applicability of the Com-

modity Exchange Act (7 U.S.C. 1 et seq.) to any transaction

conducted on a contract market under that Act by an approved

insurance provider to offset the approved insurance provider’s

risk under a plan or policy of insurance under this title.’’.

SEC. 142. MANAGEMENT OF CORPORATION.

(a) B

OARD OF

IRECTORS OF

ORPORATION

.—

(1) C

HANGE IN COMPOSITION

.—Section 505 of the Federal

Crop Insurance Act (7 U.S.C. 1505) is amended by striking

the section heading, ‘‘S

. 505.’’, and subsection (a) and

inserting the following:

‘‘SEC. 505. MANAGEMENT OF CORPORATION.

‘‘(a) B

OARD OF

IRECTORS

.—

‘‘(1) E

STABLISHMENT

.—The management of the Corporation

shall be vested in a Board of Directors subject to the general

supervision of the Secretary.

‘‘(2) C

OMPOSITION

.—The Board shall consist of only the

following members:

‘‘(A) The manager of the Corporation, who shall serve

as a nonvoting ex officio member.

‘‘(B) The Under Secretary of Agriculture responsible

for the Federal crop insurance program.

‘‘(C) One additional Under Secretary of Agriculture

(as designated by the Secretary).

‘‘(D) The Chief Economist of the Department of Agri-

culture.

‘‘(E) One person experienced in the crop insurance

business.

‘‘(F) One person experienced in reinsurance or the regu-

lation of insurance.

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114 STAT. 390 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(G) Four active producers who are policy holders, are

from different geographic areas of the United States, and

represent a cross-section of agricultural commodities grown

in the United States, including at least one specialty crop

producer.

‘‘(3) A

PPOINTMENT OF PRIVATE SECTOR MEMBERS

.—The

members of the Board described in subparagraphs (E), (F),

and (G) of paragraph (2)—

‘‘(A) shall be appointed by, and hold office at the

pleasure of, the Secretary;

‘‘(B) shall not be otherwise employed by the Federal

Government;

‘‘(C) shall be appointed to staggered 4-year terms, as

determined by the Secretary; and

‘‘(D) shall serve not more than two consecutive terms.

‘‘(4) C

HAIRPERSON

.—The Board shall select a member of

the Board to serve as Chairperson.’’.

(2) I

MPLEMENTATION

.—The initial members of the Board

of Directors of the Federal Crop Insurance Corporation required

to be appointed under section 505(a)(3) of the Federal Crop

Insurance Act (as amended by paragraph (1)) shall be appointed

during the period beginning February 1, 2001, and ending

April 1, 2001.

(3) E

FFECT ON EXISTING BOARD

.—A member of the Board

of Directors of the Federal Crop Insurance Corporation on

the date of the enactment of this Act may continue to serve

as a member of the Board until the members referred to in

paragraph (2) are first appointed.

(b) E

XPERT

EVIEW OF

OLICIES

, P

LANS OF

NSURANCE

AND

ELATED

ATERIAL

.—Section 505 of the Federal Crop Insurance

Act (7 U.S.C. 1505) is amended by adding at the end the following:

‘‘(e) E

XPERT

EVIEW OF

OLICIES

, P

LANS OF

NSURANCE

AND

ELATED

ATERIAL

.—

‘‘(1) R

EVIEW BY EXPERTS

.—The Board shall establish proce-

dures under which any policy or plan of insurance, as well

as any related material or modification of such a policy or

plan of insurance, to be offered under this title shall be subject

to independent reviews by persons experienced as actuaries

and in underwriting, as determined by the Board.

‘‘(2) R

EVIEW OF CORPORATION POLICIES AND PLANS

.—Except

as provided in paragraph (3), the Board shall contract with

at least five persons to each conduct a review of the policy

or plan of insurance, of whom—

‘‘(A) not more than one person may be employed by

the Federal Government; and

‘‘(B) at least one person must be designated by

approved insurance providers pursuant to procedures deter-

mined by the Board.

‘‘(3) R

EVIEW OF PRIVATE SUBMISSIONS

.—If the reviews under

paragraph (1) cover a policy or plan of insurance, or any related

material or modification of a policy or plan of insurance, sub-

mitted under section 508(h)—

‘‘(A) the Board shall contract with at least five persons

to each conduct a review of the policy or plan of insurance,

of whom—

‘‘(i) not more than one person may be employed

by the Federal Government; and

7 USC 1505 note.

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114 STAT. 391PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(ii) none may be employed by an approved insur-

ance provider; and

‘‘(B) each review must be completed and submitted

to the Board not later than 30 days prior to the end

of the 120-day period described in section 508(h)(4)(D).

‘‘(4) C

ONSIDERATION OF REVIEWS

.—The Board shall include

reviews conducted under this subsection as part of the consider-

ation of any policy or plan or insurance, or any related material

or modification of a policy or plan of insurance, proposed to

be offered under this title.

‘‘(5) F

UNDING OF REVIEWS

.—Each contract to conduct a

review under this subsection shall be funded from amounts

made available under section 516(b)(2)(A)(ii).

‘‘(6) R

ELATION TO OTHER AUTHORITY

.—The contract

authority provided in this subsection is in addition to any

other contracting authority that may be exercised by the Board

under section 506(l).’’.

SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE.

Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C.

1507(c)(2)) is amended—

(1) by striking ‘‘actuarial, loss adjustment,’’ and inserting

‘‘actuarial services, services relating to loss adjustment and

rating plans of insurance,’’; and

(2) by inserting after ‘‘private sector’’ the following: ‘‘and

to enable the Corporation to concentrate on regulating the

provision of insurance under this title and evaluating new

products and materials submitted under section 508(h) or 523’’.

SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMA-

TION.

Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C.

1508(a)(5)) is amended—

(1) by redesignating subparagraphs (A) and (B) as clauses

(i) and (ii), respectively, and moving such clauses 2 ems to

the right;

(2) by striking ‘‘The Corporation’’ and inserting the fol-

lowing:

‘‘(A) A

VAILABLE INFORMATION

.—The Corporation’’; and

(3) by adding at the end the following:

‘‘(B) U

SE OF ELECTRONIC METHODS

.—

‘‘(i) D

ISSEMINATION BY CORPORATION

.—The Cor-

poration shall make the information described in

subparagraph (A) available electronically to producers

and approved insurance providers.

‘‘(ii) S

UBMISSION TO CORPORATION

.—To the max-

imum extent practicable, the Corporation shall allow

producers and approved insurance providers to use

electronic methods to submit information required by

the Corporation.’’.

SEC. 145. ADEQUATE COVERAGE FOR STATES.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.

1508(a)) is amended by adding at the end the following:

‘‘(7) A

DEQUATE COVERAGE FOR STATES

.—

Deadline.

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114 STAT. 392 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(A) D

EFINITION OF ADEQUATELY SERVED

.—In this para-

graph, the term ‘adequately served’ means having a partici-

pation rate that is at least 50 percent of the national

average participation rate.

‘‘(B) R

EVIEW

.—The Board shall review the policies and

plans of insurance that are offered by approved insurance

providers under this title to determine if each State is

adequately served by the policies and plans of insurance.

‘‘(C) R

EPORT

.—

‘‘(i) I

N GENERAL

.—Not later than 30 days after

completion of the review under subparagraph (B), the

Board shall submit to Congress a report on the results

of the review.

‘‘(ii) R

ECOMMENDATIONS

.—The report shall include

recommendations to increase participation in States

that are not adequately served by the policies and

plans of insurance.’’.

SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD.

(a) P

ERSONS

UTHORIZED

UBMIT

.—Section 508(h)(1) of the

Federal Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by

inserting after ‘‘a person’’ the following: ‘‘(including an approved

insurance provider, a college or university, a cooperative or trade

association, or any other person)’’.

(b) S

ALE BY

PPROVED

NSURANCE

ROVIDERS

.—Section

508(h)(3) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(3))

is amended in the first sentence by inserting after ‘‘for sale’’ the

following: ‘‘by approved insurance providers’’.

UIDELINES FOR

UBMISSION AND

EVIEW

.—Section

508(h)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(4))

is amended—

(1) by striking subparagraph (A) and inserting the fol-

lowing:

‘‘(A) C

ONFIDENTIALITY

.—

‘‘(i) I

N GENERAL

.—A proposal submitted to the

Board under this subsection (including any information

generated from the proposal) shall be considered to

be confidential commercial or financial information for

the purposes of section 552(b)(4) of title 5, United

States Code.

‘‘(ii) S

TANDARD OF CONFIDENTIALITY

.—If informa-

tion concerning a proposal could be withheld by the

Secretary under the standard for privileged or con-

fidential information pertaining to trade secrets and

commercial or financial information under section

552(b)(4) of title 5, United States Code, the information

shall not be released to the public.

‘‘(iii) A

PPLICATION

.—This subparagraph shall apply

with respect to a proposal only during the period pre-

ceding any approval of the proposal by the Board.’’;

(2) in subparagraph (B), by inserting ‘‘P

ERSONAL PRESEN

TATION

.—’’ before ‘‘The’’; and

(3) by striking subparagraphs (C) and (D) and inserting

the following:

‘‘(C) N

OTIFICATION OF INTENT TO DISAPPROVE

.—

‘‘(i) T

IME PERIOD

.—The Board shall provide an

applicant with notification of intent to disapprove a

Deadline.

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114 STAT. 393PUBLIC LAW 106–224—JUNE 20, 2000

proposal not later than 30 days prior to making the

disapproval.

‘‘(ii) M

ODIFICATION OF APPLICATION

.—

‘‘(I) A

UTHORITY

.—An applicant that receives

the notification may modify the application, and

such application, as modified, shall be considered

by the Board in the manner provided in subpara-

graph (D) within the 30-day period beginning on

the date the modified application is submitted.

‘‘(II) T

IME PERIOD

.—Clause (i) shall not apply

to the Board’s consideration of the modified

application.

‘‘(iii) E

XPLANATION

.—Any notification of intent to

disapprove a policy or other material submitted under

this subsection shall be accompanied by a complete

explanation as to the reasons for the Board’s intention

to deny approval.

‘‘(D) D

ETERMINATION TO APPROVE OR DISAPPROVE

POLICIES OR MATERIALS

.—

‘‘(i) T

IME PERIOD

.—Not later than 120 days after

a policy or other material is submitted under this

subsection, the Board shall make a determination to

approve or disapprove the policy or material.

‘‘(ii) E

XPLANATION

.—Any determination by the

Board to disapprove any policy or other material shall

be accompanied by a complete explanation of the rea-

sons for the Board’s decision to deny approval.

‘‘(iii) F

AILURE TO MEET DEADLINE

.—Notwith-

standing any other provision of this title, if the Board

fails to make a determination within the prescribed

time period, the submitted policy or other material

shall be deemed approved by the Board for the initial

reinsurance year designated for the policy or material,

unless the Board and the applicant agree to an exten-

sion.’’.

(d) T

ECHNICAL

MENDMENTS

.—Section 508(h) of the Federal

Crop Insurance Act (7 U.S.C. 1508(h)) is amended—

(1) by striking paragraphs (6), (8), (9), and (10); and

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

SEC. 147. FUNDING.

(a) A

UTHORIZATION OF

PPROPRIATIONS

.—Section 516(a)(2) of

the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended—

(1) by striking ‘‘years—’’ and inserting ‘‘years the fol-

lowing:’’;

(2) by capitalizing the first letter of the first word of each

subparagraph;

(3) by striking ‘‘; and’’ at the end of subparagraph (A)

and inserting a period; and

(4) by adding at the end the following:

‘‘(C) Costs associated with the conduct of livestock and

wild salmon pilot programs carried out under section 523,

subject to the limitations in subsections (a)(3)(E)(ii) and

(b)(10) of section 523.

‘‘(D) Costs associated with the reimbursement, con-

tracting, and partnerships for research and development

under section 522.’’.

Deadline.

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114 STAT. 394 PUBLIC LAW 106–224—JUNE 20, 2000

(b) P

AYMENT OF

ENERAL

ORPORATION

XPENSES

ROM

NSUR

ANCE

UND

.—Section 516(b)(1) of the Federal Crop Insurance Act

(7 U.S.C. 1516(b)(1)) is amended—

(1) by striking ‘‘including—’’ and inserting ‘‘including the

following:’’;

(2) by capitalizing the first letter of the first word of each

subparagraph;

(3) by striking the semicolon at the end of subparagraph

(A) and inserting a period;

(4) by striking ‘‘; and’’ at the end of subparagraph (B)

and inserting a period; and

(5) by adding at the end the following:

‘‘(D) Costs associated with the conduct of livestock

and wild salmon pilot programs carried out under section

523, subject to the limitations in subsections (a)(3)(E)(ii)

and (b)(10) of section 523.

‘‘(E) Costs associated with the reimbursement, con-

tracting, and partnerships for research and development

under section 522.’’.

XPEDITED

ONSIDERATION AND

MPLEMENTATION OF

OLI

CIES

, P

LANS OF

NSURANCE

AND

ELATED

ATERIALS

.—Section

516(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2))

is amended—

(1) by striking ‘‘R

ESEARCH AND DEVELOPMENT EX

PENSES

.—’’ and inserting ‘‘P

OLICY CONSIDERATION AND

IMPLEMENTATION

.—’’;

(2) in subparagraph (A)—

(A) by striking ‘‘may pay from’’ and inserting ‘‘may

use’’;

(B) by striking ‘‘research and development expenses

of the Corporation’’; and

the following: ‘‘, to pay the following:

‘‘(i) Costs associated with the consideration and

implementation of policies, plans of insurance, and

related materials submitted under section 508(h) or

developed under section 522 or 523.

‘‘(ii) Costs to contract for the review of policies,

plans of insurance, and related materials under section

505(e) and to contract for other assistance in consid-

ering policies, plans of insurance, and related mate-

rials.’’; and

(3) in subparagraph (B), by striking ‘‘research and develop-

ment’’.

(d) D

EPOSITS TO

NSURANCE

UND

.—Section 516(c)(1) of the

Federal Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended—

(1) by striking ‘‘income and’’ and inserting ‘‘income,’’; and

(2) by inserting ‘‘, and civil fines collected under section

515(h)’’ after ‘‘(a)(2)’’.

SEC. 148. STANDARD REINSURANCE AGREEMENT.

Notwithstanding section 536 of the Agricultural Research,

Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note;

Public Law 105–185), the Federal Crop Insurance Corporation may

renegotiate the Standard Reinsurance Agreement once during the

2001 through 2005 reinsurance years.

7 USC 1506 note.

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114 STAT. 395PUBLIC LAW 106–224—JUNE 20, 2000

Subtitle E—Miscellaneous

SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES.

Section 508(a)(3) of the Federal Crop Insurance Act (7 U.S.C.

1508(a)(3)), as amended by section 123, is amended by adding

at the end the following:

‘‘(C) L

IMITATION ON REVENUE COVERAGE FOR POTA

TOES

.—No policy or plan of insurance provided under this

title (including a policy or plan of insurance approved by

the Board under subsection (h)) shall cover losses due

to a reduction in revenue for potatoes except as covered

under a whole farm policy or plan of insurance, as deter-

mined by the Corporation.’’.

SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.

1508(a)), as amended by 145, is amended by adding at the end

the following:

‘‘(8) S

PECIAL PROVISIONS FOR COTTON AND RICE

.—Notwith-

standing any other provision of this title, beginning with the

2001 crops of upland cotton, extra long staple cotton, and

rice, the Corporation shall offer plans of insurance, including

prevented planting coverage and replanting coverage, under

this title that cover losses of upland cotton, extra long staple

cotton, and rice resulting from failure of irrigation water sup-

plies due to drought and saltwater intrusion.’’.

SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS.

(a) I

ENERAL

.—Except as otherwise provided in this section,

notwithstanding section 508(c)(5) of the Federal Crop Insurance

Act (7 U.S.C. 1508(c)(5)), a producer that purchased a 1999 Crop

Revenue Coverage policy for a commodity covered by Bulletin MGR–

99–004 (as in effect before being voided by subsection (d)) by the

sales closing date prescribed in the actuarial documents in the

county where the policy was sold shall receive an indemnity pay-

ment in accordance with the policy.

(b) B

ASE AND

ARVEST

RICES

.—The base price and harvest

price under the policy for a commodity described in subsection

(a) shall be determined in accordance with the Commodity Exchange

Endorsement published by the Federal Crop Insurance Corporation

on July 14, 1998 (63 Fed. Reg. 37829).

EINSURANCE

.—Subject to subsection (b), notwithstanding

section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C.

1508(c)(5)), the Corporation shall provide reinsurance with respect

to the policy in accordance with the Standard Reinsurance Agree-

ment.

(d) V

OIDING OF

ULLETIN

.—Bulletin MGR–99–004, issued by

the Administrator of the Risk Management Agency of the Depart-

ment of Agriculture, is void.

(e) E

FFECTIVE

ATE

.—This section takes effect on October 1,

2000.

SEC. 164. SENSE OF THE CONGRESS REGARDING THE FEDERAL CROP

INSURANCE PROGRAM.

It is the sense of the Congress that—

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114 STAT. 396 PUBLIC LAW 106–224—JUNE 20, 2000

(1) farmer-owned cooperatives play a valuable role in

achieving the purposes of the Federal Crop Insurance Act (7

U.S.C. 1501 et seq.) by—

(A) encouraging producer participation in the Federal

crop insurance program;

(B) improving the delivery system for crop insurance;

and

products;

(2) the Risk Management Agency, through its regulatory

activities, should encourage efforts by farmer-owned coopera-

tives to promote appropriate risk management strategies among

their membership;

(3) partnerships between approved insurance providers and

farmer-owned cooperatives provide opportunity for agricultural

producers to obtain needed insurance coverage on a more

competitive basis and at a lower cost;

(4) the Risk Management Agency is following an appro-

priate regulatory process to ensure the continued participation

by farmer-owned cooperatives in the delivery of crop insurance;

(5) efforts by the Risk Management Agency to finalize

regulations that would incorporate the currently approved busi-

ness practices of cooperatives participating in the Federal crop

insurance program should be commended; and

(6) not later than 180 days after the date of the enactment

of this Act, the Federal Crop Insurance Corporation should

complete promulgation of the proposed rule entitled ‘‘General

Administrative Regulations; Premium Reductions; Payment of

Rebates, Dividends, and Patronage Refunds; and Payments

to Insured-Owned and Record-Controlling Entities’’, published

by the Federal Crop Insurance Corporation on May 12, 1999

(64 Fed. Reg. 25464), in a manner that—

(A) effectively responds to comments received from the

public during the rulemaking process;

(B) provides an effective opportunity for farmer-owned

cooperatives to assist the members of the cooperatives to

obtain crop insurance and participate most effectively in

the Federal crop insurance program;

tices of farmer-owned cooperatives participating in the Fed-

eral crop insurance program; and

(D) protects the interests of agricultural producers.

SEC. 165. SENSE OF THE CONGRESS ON RURAL AMERICA, INCLUDING

MINORITY AND LIMITED-RESOURCE FARMERS.

It is the sense of the Congress that—

(1) rural America, including minority and limited resource

farmers, has not experienced this recent period of economic

prosperity;

(2) as a result of sustained low commodity prices, they

face significant challenges, including—

(A) a depressed farm economy;

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

(D) a loss of independent farmers;

(3) Congress applauds American farmers and rural advo-

cates, including the organizers of the Rally for Rural America,

Deadline.

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114 STAT. 397PUBLIC LAW 106–224—JUNE 20, 2000

for their efforts in calling this situation to the public’s attention;

and

(4) Congress is committed to responding to the concerns

of rural America and pledges to devote full attention to making

necessary changes to Federal agricultural programs in a

manner that will—

(A) alleviate the agricultural price crisis;

(B) ensure competitive markets by empowering farm

families;

limited-resource farmers, participate fully in the benefits

of those programs;

(D) invest in rural education and health;

(E) increase resources for outreach and technical

farming assistance;

(F) conserve our natural resources for future genera-

tions; and

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

Subtitle F—Effective Dates and

Implementation

SEC. 171. EFFECTIVE DATES.

(a) I

ENERAL

.—Except as provided in subsection (b), this

Act and the amendments made by this Act take effect on the

date of the enactment of this Act.

(b) E

XCEPTIONS

.—

(1) 2001

FISCAL YEAR

.—The following provisions and the

amendments made by the provisions take effect on October

1, 2000:

(A) Subtitle C.

(B) Section 146.

(2) 2001

CROP YEAR

.—The amendments made by the fol-

lowing provisions apply beginning with the 2001 crop of an

agricultural commodity:

(A) Subsections (a), (b), and (c) of section 101.

(B) Section 102(a).

(D) Section 104.

(E) Section 105(b).

(F) Section 108.

(G) Section 109.

(H) Section 162.

(3) 2001

REINSURANCE YEAR

.—The amendments made by

the following provisions apply beginning with the 2001 reinsur-

ance year:

(A) Section 101(d).

(B) Section 102(b).

SEC. 172. REGULATIONS.

Not later than 120 days after the date of the enactment of

this Act, the Secretary of Agriculture shall promulgate regulations

to carry out this Act and the amendments made by this Act.

Deadline.

7 USC 1501 note.

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114 STAT. 398 PUBLIC LAW 106–224—JUNE 20, 2000

SEC. 173. SAVINGS CLAUSE.

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and

section 196 of the Federal Agriculture Improvement and Reform

Act of 1996 (7 U.S.C. 7333), as in effect on day before the date

of the enactment of this Act, shall—

(1) continue to apply with respect to the 1999 crop year;

and

(2) apply with respect to the 2000 crop year, to the extent

the application of an amendment made by this Act is delayed

under section 171(b) or by the terms of the amendment.

TITLE II—AGRICULTURAL ASSISTANCE

Subtitle A—Market Loss Assistance

SEC. 201. MARKET LOSS ASSISTANCE.

(a) I

ENERAL

.—The Secretary of Agriculture (referred to

in this title as the ‘‘Secretary’’) shall use funds of the Commodity

Credit Corporation to provide assistance in the form of a market

loss assistance payment to owners and producers on a farm that

are eligible for a final payment for fiscal year 2000 under a produc-

tion flexibility contract for the farm under the Agricultural Market

Transition Act (7 U.S.C. 7201 et seq.).

(b) A

MOUNT AND

ANNER

.—In providing payments under this

section, the Secretary shall—

(1) use the same contract payment rates as are used under

section 802(b) of the Agriculture, Rural Development, Food

and Drug Administration, and Related Agencies Appropriations

Act, 2000 (7 U.S.C. 1421 note; Public Law 106–78); and

(2) provide the payments in a manner that is consistent

with section 802(c) of that Act.

IMING

.—The Secretary shall make the payments required

by this section not earlier than September 1, 2000, and not later

than September 30, 2000.

SEC. 202. OILSEEDS.

(a) I

ENERAL

.—The Secretary shall use $500,000,000 of funds

of the Commodity Credit Corporation to make payments to pro-

ducers of the 2000 crop of oilseeds that are eligible to obtain

a marketing assistance loan under section 131 of the Agricultural

Market Transition Act (7 U.S.C. 7231).

(b) C

OMPUTATION

.—A payment to producers on a farm under

this section for an oilseed shall be equal to the product obtained

by multiplying—

(1) a payment rate determined by the Secretary;

(2) the acreage of the producers on the farm for the oilseed,

as determined under subsection (c); and

(3) the yield of the producers on the farm for the oilseed,

as determined under subsection (d).

CREAGE

.—

(1) I

N GENERAL

.—Except as provided in paragraph (2), the

acreage of the producers on the farm for an oilseed under

subsection (b)(2) shall be equal to the number of acres planted

to the oilseed by the producers on the farm during the 1997,

1998, or 1999 crop year, whichever is greatest, as reported

7 USC 1421 note.

Deadline.

7 USC 1421 note.

7 USC 1501 note.

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114 STAT. 399PUBLIC LAW 106–224—JUNE 20, 2000

by the producers on the farm to the Secretary (including any

acreage reports that are filed late).

(2) N

EW PRODUCERS

.—In the case of producers on a farm

that planted acreage to an oilseed during the 2000 crop year

but not the 1997, 1998, or 1999 crop year, the acreage of

the producers for the oilseed under subsection (b)(2) shall be

equal to the number of acres planted to the oilseed by the

producers on the farm during the 2000 crop year, as reported

by the producers on the farm to the Secretary (including any

acreage reports that are filed late).

(d) Y

IELD

.—

(1) S

OYBEANS

.—Except as provided in paragraph (3), in

the case of soybeans, the yield of the producers on a farm

under subsection (b)(3) shall be equal to the greatest of—

(A) the average county yield per harvested acre for

each of the 1995 through 1999 crop years, excluding the

crop year with the highest yield per harvested acre and

the crop year with the lowest yield per harvested acre;

(B) the actual yield of the producers on the farm for

the 1997, 1998, or 1999 crop year.

(2) O

THER OILSEEDS

.—Except as provided in paragraph

(3), in the case of oilseeds other than soybeans, the yield of

the producers on a farm under subsection (b)(3) shall be equal

to the greatest of—

(A) the average national yield per harvested acre for

each of the 1995 through 1999 crop years, excluding the

crop year with the highest yield per harvested acre and

the crop year with the lowest yield per harvested acre;

(B) the actual yield of the producers on the farm for

the 1997, 1998, or 1999 crop year.

(3) N

EW PRODUCERS

.—In the case of producers on a farm

that planted acreage to an oilseed during the 2000 crop year

but not the 1997, 1998, or 1999 crop year, the yield of the

producers on a farm under subsection (b)(3) shall be equal

to the greater of—

(A) the average county yield per harvested acre for

each of the 1995 through 1999 crop years, excluding the

crop year with the highest yield per harvested acre and

the crop year with the lowest yield per harvested acre;

(B) the actual yield of the producers on the farm for

the 2000 crop.

(4) D

ATA SOURCE

.—To the maximum extent available, the

Secretary shall use data provided by the National Agricultural

Statistics Service to carry out this subsection.

SEC. 203. SPECIALTY CROPS.

(a) R

EPLENISHMENT OF

ERISHABLE

GRICULTURAL

OMMOD

ITIES

UND

.—Of the amount made available under section

261(a)(2), $30,450,000 shall—

(1) be deposited in the Perishable Agricultural Commodities

Act Fund established by section 3(b)(5) of the Perishable Agri-

cultural Commodities Act, 1930 (7 U.S.C. 499c(b)(5));

(2) be merged with other amounts in the Perishable Agri-

cultural Commodities Act Fund; and

7 USC 1421 note.

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114 STAT. 400 PUBLIC LAW 106–224—JUNE 20, 2000

(3) be available for the same purposes and for the same

time period as other amounts in the Perishable Agricultural

Commodities Act Fund.

(b) R

EPLENISHMENT OF

RUST

UNDS FOR

ERVICES UNDER

GRICULTURAL

ARKETING

CT OF

1946.—Of the amount made

available under section 261(a)(2), $29,000,000 shall—

(1) be deposited in the trust fund account established to

cover the cost of inspection, certification, and identification

services provided under section 203(h) of the Agricultural Mar-

keting Act of 1946 (7 U.S.C. 1622(h));

(2) be merged with other amounts in the trust fund account;

and

(3) be available for the same purposes and for the same

time period as other amounts in the trust fund account.

NSPECTION

ERVICES

MPROVEMENTS

.—Of the amount made

available under section 261(a)(2), $11,550,000 shall be used by

the Secretary to improve the infrastructure and system used for

inspecting fruits and vegetables, including improving—

(1) the program used to train inspectors, including the

establishment of an inspector training center;

(2) the technological resources used by inspectors;

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

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

(d) S

URPLUS

ROP

URCHASES

.—

(1) P

URCHASES

.—Of the amount made available under sec-

tion 261(a)(2), $200,000,000 shall be used by the Secretary

to purchase specialty crops that have experienced low prices

during the 1998 or 1999 crop years, including apples, black-

eyed peas, cherries, citrus, cranberries, onions, melons, peaches,

and potatoes.

(2) D

ISPLACEMENT

.—The Secretary shall ensure that pur-

chases of specialty crops under this subsection will not displace

purchases by the Secretary under any other law.

(e) G

ROWER

OMPENSATION

.—

(1) C

OMPENSATION

.—Of the amount made available under

section 261(a)(2), $25,000,000 shall be used by the Secretary

to compensate—

(A) growers covered by the Secretary’s Declaration of

Extraordinary Emergency published on March 2, 2000 (65

Fed. Reg. 11280), regarding the plum pox virus;

(B) growers for losses due to Pierce’s disease; and

canker.

(2) R

EPORT

.—Not later than July 19, 2000, the Secretary,

in coordination with the Inspector General of the Department

of Agriculture, shall submit to the Committee on Agriculture

of the House of Representatives and the Committee on Agri-

culture, Nutrition, and Forestry of the Senate a report that

analyzes—

(A) the economic losses to the produce industry as

a result of allegations of false inspection certificates pre-

pared by graders of the Department of Agriculture at Hunts

Point Terminal Market, Bronx, New York; and

(B) the restitution by the Secretary for persons dam-

aged as a result of losses described in subparagraph (A).

(f ) A

PPLE

OANS

.—

Deadline.

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114 STAT. 401PUBLIC LAW 106–224—JUNE 20, 2000

(1) R

EQUIREMENT

.—The Secretary, acting through the

Farm Service Agency, shall use funds of the Commodity Credit

Corporation to make loans to producers of apples that are

suffering economic loss as the result of low prices for apples.

(2) T

ERM

.—The term of a loan made under this subsection

shall be not more than 3 years.

(3) I

NTEREST RATE

.—The interest rate for a loan made

under this subsection shall be at a rate equal to the then

current cost of money to the Government of the United States

for loans of similar maturity.

(4) S

ECURITY

.—The Secretary may require a loan made

under this subsection to be secured by real property or such

other collateral as the Secretary considers appropriate and

protects the interests of the Federal Government.

(5) L

IMITATION

.—The cost of all loans made under this

subsection shall not exceed $5,000,000.

SEC. 204. OTHER COMMODITIES.

(a) P

EANUTS

.—

(1) I

N GENERAL

.—The Secretary shall use funds of the

Commodity Credit Corporation to provide payments to pro-

ducers of quota peanuts or additional peanuts to partially com-

pensate the producers for continuing low commodity prices,

and increasing costs of production, for the 2000 crop year.

(2) A

MOUNT

.—The amount of a payment made to producers

on a farm of quota peanuts or additional peanuts under para-

graph (1) shall be equal to the product obtained by

multiplying—

(A) the quantity of quota peanuts or additional peanuts

produced or considered produced by the producers; and

(B) a payment rate equal to—

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

and

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

ton.

(b) T

OBACCO

.—

(1) D

EFINITIONS

.—In this subsection:

(A) E

LIGIBLE PERSON

.—The term ‘‘eligible person’’

means a person that owns or operates, or produces eligible

tobacco on, a farm—

(i) for which the quantity of quota of eligible

tobacco allotted to the farm under part I of subtitle

B of title III of the Agricultural Adjustment Act of

1938 (7 U.S.C. 1311 et seq.) was reduced from the

1999 crop year to the 2000 crop year; and

(ii) that is used for the production of eligible

tobacco during the 2000 crop year.

(B) E

LIGIBLE TOBACCO

.—The term ‘‘eligible tobacco’’

means each of the following kinds of tobacco:

(i) Flue-cured tobacco, comprising types 11, 12,

13, and 14.

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

(iii) Burley tobacco, comprising type 31.

(iv) Cigar-filler and cigar-binder tobacco, com-

prising types 42, 43, 44, 54, and 55.

7 USC 1421 note.

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114 STAT. 402 PUBLIC LAW 106–224—JUNE 20, 2000

(2) P

AYMENTS

.—Effective beginning October 1, 2000, the

Secretary shall use $340,000,000 of funds of the Commodity

Credit Corporation to make payments to eligible persons.

(3) A

LLOCATION OF FUNDS AMONG STATES

.—The funds made

available for eligible persons under paragraph (2) shall be allo-

cated among States in the following dollar amounts:

Alabama ............................................................................................ $100,000

Arkansas ........................................................................................... $1,000

Florida ............................................................................................... $2,500,000

Georgia .............................................................................................. $13,000,000

Indiana .............................................................................................. $5,400,000

Kansas ............................................................................................... $23,000

Kentucky ........................................................................................... $140,000,000

Missouri ............................................................................................. $2,000,000

North Carolina .................................................................................. $100,000,000

Ohio ................................................................................................... $6,000,000

Oklahoma .......................................................................................... $1,000

South Carolina .................................................................................. $15,000,000

Tennessee .......................................................................................... $35,000,000

Virginia ............................................................................................. $19,000,000

Wisconsin .......................................................................................... $675,000

West Virginia .................................................................................... $1,300,000.

(4) A

LLOCATION OF FUNDS AMONG FARMS IN A STATE

.—

The Secretary shall divide the amount allocated to a State

under paragraph (3) among farms in the State based on the

quota of eligible tobacco available to each farm of an eligible

person for the 2000 crop year.

(5) D

IVISION OF FARM PAYMENTS AMONG ELIGIBLE PERSONS

IN A STATE

.—Not later than October 20, 2000, the Secretary

shall divide amounts made available to farms in a State under

paragraph (4) among eligible persons who are quota owners,

quota lessees, and tobacco producers on farms in the State,

and make payments to the eligible persons, on the basis of—

(A) in the case of a State that is a party to the National

Tobacco Grower Settlement Trust, the formula in the Trust

used to allocate funds among quota owners, quota lessees,

and tobacco producers on farms in the State, with such

adjustments as the Secretary determines are necessary

to enable the payments to be made by October 20, 2000;

(B) in the case of a State that is not a party to the

National Tobacco Grower Settlement Trust, a formula

established by the Secretary.

(6) P

AYMENTS TO ELIGIBLE PERSONS IN GEORGIA

.—The Sec-

retary shall use the amount allocated to the State of Georgia

under paragraph (3) to make payments to eligible persons

in Georgia only if the State of Georgia agrees to use an equal

amount (not to exceed $13,000,000) to make payments at the

same time, or subsequently, to the same eligible persons in

the same manner as provided for the Federal payment under

paragraphs (4) and (5).

(7) U

SE FOR ADMINISTRATIVE COSTS

.—None of the funds

made available under paragraphs (1) through (7) may be used

to pay administrative costs incurred in carrying out those para-

graphs.

(8) T

RANSFER OF ALLOTMENTS

.—Section 318 of the Agricul-

tural Adjustment Act of 1938 (7 U.S.C. 1314d) is amended

by striking subsection (g) and inserting the following:

Deadline.

Effective date.

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114 STAT. 403PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(g) T

RANSFER OF

LLOTMENTS

.—Under this section, the total

acreage allotted to any farm after any transfer shall not exceed

50 percent of the acreage of cropland on the farm.’’.

(9) B

URLEY TOBACCO INVENTORIES OF PRODUCER ASSOCIA

TIONS

.—Section 319(c)(3) of the Agricultural Adjustment Act

of 1938 (7 U.S.C. 1314e(c)(3)) is amended—

(A) in subparagraph (B), by striking ‘‘In’’ and inserting

‘‘Except as provided in subparagraph (D), in’’; and

(B) by adding at the end the following:

‘‘(D) N

ONAPPLICABILITY OF DOWNWARD ADJUSTMENT

.—

If the Secretary determines for any of the 2001 or subse-

quent crop years that noncommitted pool stocks of Burley

tobacco are equal to or less than the reserve stock level

established under this paragraph, subparagraph (B) shall

not apply to the crop year for which the determination

is made and all subsequent crop years.’’.

(10) L

IMITATIONS ON BURLEY TOBACCO QUOTA ADJUST

MENTS

.—

(A) C

ARRY FORWARD ADJUSTMENT

.—Section 319(e) of

the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(e))

is amended in the fifth sentence—

(i) by striking ‘‘: Provided, That’’ and inserting

‘‘, except that (1)’’; and

(ii) by inserting before the period at the end the

following: ‘‘, and (2) the aggregate of such increases

for all farms for any crop year may not exceed 10

percent of the national basic quota for the preceding

crop year’’.

(B) L

EASE AND TRANSFER OF QUOTA DUE TO NATURAL

DISASTERS

.—Section 319(k) of the Agricultural Adjustment

Act of 1938 (7 U.S.C. 1314e(k)) is amended by adding

at the end the following:

‘‘(3) L

IMITATION

.—The total quantity of quota leased or

transferred to a farm during a crop year under this subsection

may not exceed 15 percent of the quota on the farm that

existed prior to any such lease or transfer for the crop year.’’.

(11) L

EASE AND TRANSFER OF BURLEY TOBACCO QUOTA

.—

Section 319 of the Agricultural Adjustment Act of 1938 (7

U.S.C. 1314e) is amended by striking subsection (l) and

inserting the following:

‘‘(l) L

EASE AND

RANSFER OF

URLEY

OBACCO

UOTA

.—

‘‘(1) A

PPROVAL BY PRODUCERS

.—Notwithstanding any other

provision of this section, the Secretary may permit the lease

and transfer of a Burley tobacco quota from one farm in a

State to any other farm in the State if, in a State-wide ref-

erendum conducted by the Secretary, a majority of the active

Burley tobacco producers voting in the referendum approve

the use of that type of lease and transfer.

‘‘(2) A

PPLICATION

.—This subsection shall apply only to the

States of Tennessee, Ohio, Indiana, Kentucky, and Virginia.’’.

(12) R

ECORDKEEPING AND SALE OF BURLEY TOBACCO QUOTA

AND ACREAGE

.—Section 319 of the Agricultural Adjustment Act

of 1938 (7 U.S.C. 1314e) is amended by adding at the end

the following:

‘‘(m) C

OMPUTERIZED

ECORDKEEPING

YSTEM FOR

URLEY

OBACCO

UOTA AND

CREAGE

.—

State listing.

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114 STAT. 404 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(1) P

RODUCER REPORTS

.—Each person that owns a farm

for which a Burley tobacco marketing quota is established

under this Act shall annually file with the Secretary a report

describing the acreage planted to Burley tobacco on the farm.

‘‘(2) C

OMPUTERIZED RECORDKEEPING SYSTEM

.—Not later

than 180 days after the date of the enactment of this subsection,

the Secretary shall establish a computerized recordkeeping

system that contains all information reported under paragraph

(1) and related records, as determined by the Secretary.

‘‘(n) S

ALE OF

URLEY

OBACCO

UOTA

.—Notwithstanding any

other provision of this section, if a person that owns a farm for

which a Burley tobacco marketing quota is established under this

Act sells all or part of the acreage on the farm to a buyer, the

Secretary shall permit the seller and buyer of the acreage to deter-

mine the percentage of the quota that is transferred with the

acreage sold.’’.

ONEY

.—

(1) I

N GENERAL

.—The Secretary shall use funds of the

Commodity Credit Corporation to make available recourse loans

to producers of the 2000 crop of honey on fair and reasonable

terms and conditions, as determined by the Secretary.

(2) L

OAN RATE

.—The loan rate for a loan under paragraph

(1) shall be equal to 85 percent of the average price of honey

during the 5-crop year period preceding the 2000 crop year,

excluding the crop year in which the average price of honey

was the highest and the crop year in which the average price

of honey was the lowest in the period.

(d) W

OOL AND

OHAIR

.—

(1) I

N GENERAL

.—The Secretary shall use funds of the

Commodity Credit Corporation to make payments to producers

of wool, and producers of mohair, for the 1999 marketing year.

(2) P

AYMENT RATE

.—The payment rate for payments made

to producers under paragraph (1) shall be equal to—

(A) in the case of wool, 20 cents per pound; and

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

(e) C

OTTONSEED

.—The Secretary shall use $100,000,000 of

funds of the Commodity Credit Corporation to provide assistance

to producers and first-handlers of the 2000 crop of cottonseed.

SEC. 205. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS.

(a) E

LIGIBLE

RODUCERS

.—Effective for the 2001 crop year,

in the case of a producer that would be eligible for a loan deficiency

payment under section 135 of the Agricultural Market Transition

Act (7 U.S.C. 7235) for wheat, barley, or oats, but that elects

to use acreage planted to the wheat, barley, or oats for the grazing

of livestock, the Secretary shall make a payment to the producer

under this section if the producer enters into an agreement with

the Secretary to forgo any other harvesting of the wheat, barley,

or oats on that acreage.

(b) P

AYMENT

MOUNT

.—The amount of a payment made to

a producer on a farm under this section shall be equal to the

amount determined by multiplying—

(1) the loan deficiency payment rate determined under

section 135(c) of the Agricultural Market Transition Act (7

U.S.C. 7235(c)) in effect, as of the date of the agreement,

for the county in which the farm is located; by

(2) the payment quantity determined by multiplying—

7 USC 1421 note.

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114 STAT. 405PUBLIC LAW 106–224—JUNE 20, 2000

(A) the quantity of the grazed acreage on the farm

with respect to which the producer elects to forgo har-

vesting of wheat, barley, or oats; and

(B) the greater of—

(i) the established yield for the crop on the

farm; or

(ii) the average county yield per harvested acre

of the crop, as determined by the Secretary.

IME

, M

ANNER

AND

VAILABILITY OF

AYMENT

.—

(1) T

IME AND MANNER

.—A payment under this section shall

be made at the same time and in the same manner as loan

deficiency payments are made under section 135 of the Agricul-

tural Market Transition Act (7 U.S.C. 7235), except that the

payment shall be made not later than September 30, 2001.

(2) A

VAILABILITY

.—The Secretary shall establish an avail-

ability period for the payment authorized by this section that

is consistent with the availability period for wheat, barley,

and oats established by the Secretary for marketing assistance

loans authorized by subtitle C of the Agricultural Market

Transition Act (7 U.S.C. 7231 et seq.).

(d) R

EGULATIONS

.—The Secretary shall promulgate under sec-

tion 263 such regulations as are necessary to administer the pay-

ments authorized by this section in a fair and equitable manner

with respect to producers of wheat and feed grains that do not

receive a payment under this section.

(e) F

UNDING

.—The Secretary shall use funds of the Commodity

Credit Corporation to carry out this section.

SEC. 206. EXPANSION OF PRODUCERS ELIGIBLE FOR LOAN DEFI-

CIENCY PAYMENTS.

(a) E

LIGIBLE

RODUCERS

.—Section 135(a) of the Agricultural

Market Transition Act (7 U.S.C. 7235(a)) is amended—

(1) by striking ‘‘to producers’’ and inserting ‘‘to—

‘‘(1) producers’’;

(2) by striking the period at the end and inserting ‘‘; and’’;

and

(3) by adding at the end the following:

‘‘(2) effective only for the 2000 crop year, producers that,

although not eligible to obtain such a marketing assistance

loan under section 131, produce a contract commodity.’’.

(b) C

ALCULATION

.—Section 135(b)(2) of the Agricultural Market

Transition Act (7 U.S.C. 7235(b)(2)) is amended by striking ‘‘that

the producers’’ and all that follows through the period at the end

and inserting the following: ‘‘produced by the eligible producers,

excluding any quantity for which the producers obtain a loan under

section 131.’’.

RANSITION

; B

ENEFICIAL

NTEREST

.—Section 135 of the Agri-

cultural Market Transition Act (7 U.S.C. 7235) is amended by

adding at the end the following:

‘‘(e) T

RANSITION

.—A payment to a producer eligible for a pay-

ment under subsection (a)(2) that harvested a commodity on or

before the date that is 30 days after the promulgation of the

regulations implementing subsection (a)(2) shall be determined as

the date the producer lost beneficial interest in the commodity,

as determined by the Secretary.

‘‘(f ) B

ENEFICIAL

NTEREST

.—Subject to subsection (e), a producer

shall be eligible for a payment under this section only if the producer

7 USC 1421 note.

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114 STAT. 406 PUBLIC LAW 106–224—JUNE 20, 2000

has a beneficial interest in the commodity, as determined by the

Secretary.’’.

Subtitle B—Conservation

SEC. 211. CONSERVATION ASSISTANCE.

(a) F

ARMLAND

ROTECTION

.—For the purposes described in sec-

tion 388 of the Federal Agriculture Improvement and Reform Act

of 1996 (16 U.S.C. 3830 note; Public Law 104–127), the Secretary

shall use $10,000,000 of funds of the Commodity Credit Corporation

to make payments to—

(1) any agency of any State or local government, or federally

recognized Indian tribe, including farmland protection boards

and land resource councils established under State law; and

(2) any organization that—

(A) is organized for, and at all times since the formation

of the organization has been operated principally for, one

or more of the conservation purposes specified in clause

(i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Rev-

enue Code of 1986;

(B) is an organization described in section 501(c)(3)

of that Code that is exempt from taxation under section

501(a) of that Code;

(D) is described in section 509(a)(3) of that Code and

is controlled by an organization described in section

509(a)(2) of that Code.

(b) S

OIL AND

ATER

ONSERVATION

SSISTANCE

.—

(1) E

STABLISHMENT

.—The Secretary shall use $40,000,000

of funds of the Commodity Credit Corporation to provide finan-

cial assistance to farmers and ranchers to—

(A) address threats to soil, water, and related natural

resources, including grazing land, wetland, and wildlife

habitat;

(B) comply with Federal and State environmental laws;

and

systems, grazing management, manure, nutrient, pest, or

irrigation management, land uses, or other measures

needed to conserve and improve soil, water, and related

natural resources.

(2) T

YPE OF ASSISTANCE

.—Assistance under this subsection

may be made in the form of cost share payments or incentive

payments, as determined by the Secretary.

(3) A

REAS

.—The Secretary shall provide assistance under

this subsection to areas that are not designated under section

1230(c) of the Food Security Act of 1985 (16 U.S.C. 3830(c)).

SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL

WILDLIFE REFUGE, OHIO.

The Secretary of the Interior, acting through the Director of

the United States Fish and Wildlife Service, shall prepare an

environmental impact statement pursuant to the National Environ-

mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) before proceeding

with any further development of the Little Darby National Wildlife

Refuge in Madison and Union Counties, Ohio.

16 USC 3830

note.

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114 STAT. 407PUBLIC LAW 106–224—JUNE 20, 2000

Subtitle C—Research

SEC. 221. CARBON CYCLE RESEARCH.

(a) I

ENERAL

.—Of the amount made available under section

261(a)(2), the Secretary shall use $15,000,000 to provide a grant

to the Consortium for Agricultural Soils Mitigation of Greenhouse

Gases, acting through Kansas State University, to develop, analyze,

and implement, through the land grant universities described in

subsection (b), carbon cycle research at the national, regional, and

local levels.

(b) L

AND

RANT

NIVERSITIES

.—The land grant universities

referred to in subsection (a) are the following:

(1) Colorado State University.

(2) Iowa State University.

(3) Kansas State University.

(4) Michigan State University.

(5) Montana State University.

(6) Purdue University.

(7) Ohio State University.

(8) Texas A&M University.

(9) University of Nebraska.

.—Land grant universities described in subsection (b)

shall use funds made available under this section—

(1) to conduct research to improve the scientific basis of

using land management practices to increase soil carbon seques-

tration, including research on the use of new technologies to

increase carbon cycle effectiveness, such as biotechnology and

nanotechnology;

(2) to enter into partnerships to identify, develop, and

evaluate agricultural best practices, including partnerships

between—

(A) Federal, State, or private entities; and

(B) the Department of Agriculture;

(3) to develop necessary computer models to predict and

assess the carbon cycle;

(4) to estimate and develop mechanisms to measure carbon

levels made available as a result of—

(A) voluntary Federal conservation programs;

(B) private and Federal forests; and

(5) to develop outreach programs, in coordination with

Extension Services, to share information on carbon cycle and

agricultural best practices that is useful to agricultural pro-

ducers; and

(6) to collaborate with the Great Plains Regional Earth

Science Application Center to develop a space-based carbon

cycle remote sensing technology program to—

(A) provide, on a near-continual basis, a real-time and

comprehensive view of vegetation conditions;

(B) assess and model agricultural carbon sequestration;

and

(d) A

DMINISTRATIVE

OSTS

.—Not more than 3 percent of the

funds made available under subsection (a) may be used by the

Secretary to pay administrative costs incurred in carrying out this

section.

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114 STAT. 408 PUBLIC LAW 106–224—JUNE 20, 2000

SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES.

(a) A

SSISTANCE

.—Of the amount made available under section

261(a)(2), the Secretary, acting through the Cooperative State

Research, Education, and Extension Service, shall use $3,000,000

to provide a grant jointly to Georgetown University and North

Carolina State University to conduct research regarding the extrac-

tion and purification of proteins from genetically altered tobacco

that may be used as a vaccine for cervical cancer.

(b) R

ELATION TO

THER

.—The Secretary may make the

grant described in subsection (a) notwithstanding any general

prohibition on the use of appropriated funds to carry out research

related to the production, processing, or marketing of tobacco or

tobacco products.

SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH MANAGE-

MENT.

Of the amount made available under section 261(a)(2), the

Secretary shall use $10,000,000 to provide a grant to the University

of Nebraska in Lincoln, Nebraska, for laboratories and equipment

for research on soil science and forest health and management.

SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK PRODUC-

TION.

Of the amount made available under section 261(a)(2), the

Secretary shall use $3,500,000 to expand current research related

to technologies for—

(1) reducing, modifying, recycling, and using waste streams

from livestock production; and

(2) eliminating associated air, water, and soil quality

problems.

SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND

POULTRY WASTE.

(a) A

SSISTANCE

.—Of the amount made available under section

261(a)(2), the Secretary shall use $5,000,000—

(1) to review and assess the actual or potential failure

of waste storage and handling systems used in livestock or

poultry production and the environmental damages associated

with the failure of the systems; and

(2) to study and demonstrate appropriate market-oriented

mechanisms to assist livestock producers and poultry producers

to prevent the failure of the systems and rectify environmental

damages associated with the failure of the systems.

(b) I

MPLEMENTATION

.—The Secretary shall carry out this sec-

tion through grants, contracts, and cooperative agreements with

livestock producers, poultry producers, associations of such pro-

ducers, and foundations supported by such producers.

SEC. 226. ETHANOL RESEARCH PILOT PLANT.

Of the amount made available under section 261(a)(2), the

Secretary shall use $14,000,000 to provide a grant to the State

of Illinois to complete the construction of a corn-based ethanol

research pilot plant (Agreement No. 59–3601–7–078) at Southern

Illinois University, Edwardsville, Illinois.

SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES.

(a) E

STABLISHMENT AND

URPOSE

.—The Secretary, acting

through the Agricultural Research Service, may enter into a

Grants.

Contracts.

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114 STAT. 409PUBLIC LAW 106–224—JUNE 20, 2000

cooperative agreement with the National Center for Genome

Resources in Santa Fe, New Mexico, New Mexico State University,

and Iowa State University, for the establishment and operation

of an institute (to be known as the ‘‘Bioinformatics Institute for

Model Plant Species’’) in Santa Fe, New Mexico, for the purpose

of enhancing the accessibility and utility of genomic information

for plant genetic research.

(b) A

UTHORIZATION OF

PPROPRIATIONS

.—There are authorized

to be appropriated to carry out this section—

(1) $3,000,000 for the purpose of establishing the Institute

under subsection (a); and

(2) such sums as may be necessary for each fiscal year

to carry out the cooperative agreement authorized by subsection

(a).

Subtitle D—Agricultural Marketing

SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOP-

MENT GRANTS.

(a) G

RANT

ROGRAM

.—

(1) E

STABLISHMENT AND PURPOSES

.—Of the amount made

available under section 261(a)(2), $15,000,000 shall be used

by the Secretary to award competitive grants to eligible inde-

pendent producers (as determined by the Secretary) of value-

added agricultural commodities and products of agricultural

commodities to assist an eligible producer—

(A) to develop a business plan for viable marketing

opportunities for a value-added agricultural commodity or

product of an agricultural commodity; or

(B) to develop strategies for the ventures that are

intended to create marketing opportunities for the pro-

ducers.

(2) A

MOUNT OF GRANT

.—The total amount provided under

this subsection to a grant recipient may not exceed $500,000.

(3) P

RODUCER STRATEGIES

.—A producer that receives a

grant under paragraph (1) shall use the grant—

(A) to develop a business plan or perform a feasibility

study to establish a viable marketing opportunity for a

value-added agricultural commodity or product of an agri-

cultural commodity; or

(B) to provide capital to establish alliances or business

ventures that allow the producer to better compete in

domestic or international markets.

(b) A

GRICULTURAL

ARKETING

ESOURCE

ENTER

ILOT

ROJECT

.—

(1) E

STABLISHMENT

.—Notwithstanding the limitation on

grants in subsection (a)(2), the Secretary shall not use more

than $5,000,000 of the funds made available under subsection

(a) to establish a pilot project (to be known as the ‘‘Agricultural

Marketing Resource Center’’) at an eligible institution described

in paragraph (2) that will—

(A) develop a resource center with electronic capabili-

ties to coordinate and provide to independent producers

and processors (as determined by the Secretary) of value-

7 USC 1621 note.

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114 STAT. 410 PUBLIC LAW 106–224—JUNE 20, 2000

added agricultural commodities and products of agricul-

tural commodities information regarding research, busi-

ness, legal, financial, or logistical assistance; and

(B) develop a strategy to establish a nationwide market

information and coordination system.

(2) E

LIGIBLE INSTITUTION

.—To be eligible to receive funding

to establish the Agricultural Marketing Resource Center, an

applicant shall demonstrate to the Secretary—

(A) the capacity and technical expertise to provide

the services described in paragraph (1)(A);

(B) an established plan outlining support of the

applicant in the agricultural community; and

of definite value to sustain the Center following establish-

ment.

ATCHING

UNDS

.—A recipient of funds under subsection

(a) or (b) shall contribute an amount of non-Federal funds that

is at least equal to the amount of Federal funds received.

(d) L

IMITATION

.—Funds provided under this section may not

be used for—

(1) planning, repair, rehabilitation, acquisition, or construc-

tion of a building or facility (including a processing facility);

(2) the purchase, rental, or installation of fixed equipment.

Subtitle E—Nutrition Programs

SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR

SCHOOL LUNCH REQUIREMENTS.

(a) F

ISCAL

EAR

2000.—Notwithstanding any other provision

of law, in addition to any assistance provided under any other

provision of law, of the amount made available under section

261(a)(1), the Secretary shall use $34,000,000 in fiscal year 2000

to purchase commodities of the type provided under section 6 of

the Richard B. Russell National School Lunch Act (42 U.S.C. 1755)

for distribution to schools participating in the school lunch program

established under that Act (42 U.S.C. 1751 et seq.).

(b) F

ISCAL

EAR

2001.—Section 6(e)(1)(B) of the Richard B.

Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is

amended by striking ‘‘2000’’ and inserting ‘‘2001’’.

DDITIONAL

OMMODITIES IN

ISCAL

EAR

2001.—Notwith-

standing any other provision of law, in addition to any assistance

provided under any other provision of law (including the amendment

made by subsection (b)), of the amount made available under section

261(a)(2), the Secretary shall use $21,000,000 in fiscal year 2001

to purchase commodities of the type provided under section 6 of

the Richard B. Russell National School Lunch Act (42 U.S.C. 1755)

for distribution to schools participating in the school lunch program

established under that Act (42 U.S.C. 1751 et seq.).

(d) D

ISTRIBUTION TO

CHOOLS

.—The commodities purchased

under subsections (a) and (c) shall, to the maximum extent prac-

ticable, be distributed in the same manner as commodities are

distributed under section 6 of the Richard B. Russell National

School Lunch Act (42 U.S.C. 1755).

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114 STAT. 411PUBLIC LAW 106–224—JUNE 20, 2000

SEC. 242. SCHOOL LUNCH DATA.

(a) L

IMITED

AIVER OF

ONFIDENTIALITY

EQUIREMENT

.—

(1) I

N GENERAL

.—Section 9(b)(2)(C)(iii) of the Richard B.

Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii))

is amended—

(A) in subclause (II), by striking ‘‘and’’ at the end;

(B) in subclause (III), by striking the period at the

end and inserting ‘‘; and’’; and

‘‘(IV) a person directly connected with the

administration of the State medicaid program

under title XIX of the Social Security Act (42

U.S.C. 1396 et seq.) or the State children’s health

insurance program under title XXI of that Act

(42 U.S.C. 1397aa et seq.) solely for the purpose

of identifying children eligible for benefits under,

and enrolling children in, such programs, except

that this subclause shall apply only to the extent

that the State and the school food authority so

elect.’’.

(2) C

ERTIFICATION AND NOTIFICATION

.—Section 9(b)(2)(C)

of the Richard B. Russell National School Lunch Act (42 U.S.C.

1758(b)(2)(C)) is amended by adding at the end the following:

‘‘(vi) R

EQUIREMENTS FOR WAIVER OF CONFIDEN

TIALITY

.—A State that elects to exercise the option

described in clause (iii)(IV) shall ensure that any school

food authority acting in accordance with that option—

‘‘(I) has a written agreement with the State

or local agency or agencies administering health

insurance programs for children under titles XIX

and XXI of the Social Security Act (42 U.S.C. 1396

et seq. and 1397aa et seq.) that requires the health

agencies to use the information obtained under

clause (iii) to seek to enroll children in those health

insurance programs; and

‘‘(II)(aa) notifies each household, the informa-

tion of which shall be disclosed under clause (iii),

that the information disclosed will be used only

to enroll children in health programs referred to

in clause (iii)(IV); and

‘‘(bb) provides each parent or guardian of a

child in the household with an opportunity to elect

not to have the information disclosed.

‘‘(vii) U

SE OF DISCLOSED INFORMATION

.—A person

to which information is disclosed under clause (iii)(IV)

shall use or disclose the information only as necessary

for the purpose of enrolling children in health programs

referred to in clause (iii)(IV).’’.

(b) D

EMONSTRATION

ROJECT

.—

(1) I

N GENERAL

.—Section 17 of the Child Nutrition Act

of 1966 (42 U.S.C. 1786) is amended by adding at the end

the following:

‘‘(r) D

EMONSTRATION

ROJECT

ELATING TO

SE OF THE

WIC

ROGRAM FOR

DENTIFICATION AND

NROLLMENT OF

HILDREN IN

ERTAIN

EALTH

ROGRAMS

.—

‘‘(1) I

N GENERAL

.—In accordance with paragraph (2), the

Secretary shall establish a demonstration project in at least

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114 STAT. 412 PUBLIC LAW 106–224—JUNE 20, 2000

20 local agencies in one State under which costs of nutrition

services and administration (as defined in subsection (b)(4))

shall include the costs of identification of children eligible for

benefits under, and the provision of enrollment assistance for

children in—

‘‘(A) the State medicaid program under title XIX of

the Social Security Act (42 U.S.C. 1396 et seq.); and

‘‘(B) the State children’s health insurance program

under title XXI of that Act (42 U.S.C. 1397aa et seq.).

‘‘(2) S

TATE

RELATED REQUIREMENTS

.—The State in which

a demonstration project is established under paragraph (1)—

‘‘(A) shall operate not fewer than 20 pilot site locations;

‘‘(B) as of the date of establishment of the demonstra-

tion project—

‘‘(i) with respect to the programs referred to in

subparagraphs (A) and (B) of paragraph (1)—

‘‘(I) shall have in use a simplified application

form with a length of not more than two pages;

‘‘(II) shall accept mail-in applications; and

‘‘(III) shall permit enrollment in the program

in a variety of locations; and

‘‘(ii) shall have served as an original pilot site

for the program under this section; and

‘‘(C) as of December 31, 1998, shall have had—

‘‘(i) an infant mortality rate that is above the

national average; and

‘‘(ii) an overall rate of age-appropriate immuniza-

tions against vaccine-preventable diseases that is below

80 percent.

‘‘(3) T

ERMINATION OF AUTHORITY

.—The authority provided

by this subsection terminates September 30, 2003.’’.

(2) T

ECHNICAL AMENDMENTS

.—Section 17 of the Child

Nutrition Act of 1966 (42 U.S.C. 1786) is amended—

(A) in subsection (b)(4), by striking ‘‘(4)’’ and all that

follows through ‘‘means’’ and inserting ‘‘(4) ‘Costs of nutri-

tion services and administration’ or ‘nutrition services and

administration’ means’’; and

(B) in subsection (h)(1)(A), by striking ‘‘costs incurred

by State and local agencies for nutrition services and

administration’’ and inserting ‘‘costs of nutrition services

and administration incurred by State and local agencies’’.

(3) G

RANT FOR DEMONSTRATION PROJECT

.—Section 12 of

the Richard B. Russell National School Lunch Act (42 U.S.C.

1760) is amended by adding at the end the following:

‘‘(p) G

RANT FOR

EMONSTRATION

ROJECT

.—

‘‘(1) U

SE OF FUNDS FOR WIC DEMONSTRATION PROJECT

.—

‘‘(A) I

N GENERAL

.—The Secretary shall make grants

of funds under this subsection to a State—

‘‘(i) for purposes that include carrying out the dem-

onstration project under section 17(r) of the Child

Nutrition Act of 1966 (42 U.S.C. 1786(r)); and

‘‘(ii) for the purpose described in clause (i), in

amounts not to exceed $10,000 for each fiscal year

for each site in the State.

‘‘(B) A

PPORTIONMENT

.—A State that receives a grant

under subparagraph (A) shall apportion the funds received

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114 STAT. 413PUBLIC LAW 106–224—JUNE 20, 2000

to ensure that each site in the State receives not more

than $10,000 for any fiscal year.

‘‘(2) E

VALUATIONS OF DEMONSTRATION PROJECT

.—The Sec-

retary shall conduct an evaluation of the demonstration project

and grant program for identification and enrollment efforts

funded under this subsection that include a determination of—

‘‘(A) the number of children enrolled as a result of

the enactment of this subsection;

‘‘(B) the income levels of the families of enrolled chil-

dren;

‘‘(C) the cost of identification and enrollment assistance

services provided under the project or grant program;

‘‘(D) the effect on the caseloads of local agencies that

carry out the special supplemental nutrition program for

woman, infants, and children established under section

17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786);

and

‘‘(E) such other factors as the Secretary determines

to be appropriate.

‘‘(3) F

UNDING

.—

‘‘(A) I

N GENERAL

.—Out of any moneys in the Treasury

not otherwise appropriated, the Secretary of the Treasury

shall provide to the Secretary to carry out this subsection

$1,000,000 for the period of fiscal years 2001 through 2004,

to remain available until expended but not later than Sep-

tember 30, 2004.

‘‘(B) R

ECEIPT AND ACCEPTANCE

.—The Secretary shall

be entitled to receive the funds and shall accept the funds

provided under subparagraph (A), without further appro-

priation.’’.

FFECTIVE

ATE

.—The amendments made by this section

take effect on October 1, 2000.

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

(a) D

EFINITION OF

NSTITUTION

; E

XCLUSION OF

ERIOUSLY

EFI

CIENT

NSTITUTIONS

.—Section 17(a) of the Richard B. Russell

National School Lunch Act (42 U.S.C. 1766(a)) is amended—

(1) by striking ‘‘(a) The Secretary’’ and inserting the

following:

‘‘(a) G

RANT

UTHORITY AND

NSTITUTION

LIGIBILITY

.—

‘‘(1) G

RANT AUTHORITY

.—The Secretary’’;

(2) by striking the second and third sentences and inserting

the following:

‘‘(2) D

EFINITION OF INSTITUTION

.—In this section, the term

‘institution’ means—

‘‘(A) any public or private nonprofit organization pro-

viding nonresidential child care or day care outside school

hours for school children, including any child care center,

settlement house, recreational center, Head Start center,

and institution providing child care facilities for children

with disabilities;

‘‘(B) any other private organization providing nonresi-

dential child care or day care outside school hours for

school children for which the organization receives com-

pensation from amounts granted to the States under title

XX of the Social Security Act (42 U.S.C. 1397 et seq.)

(but only if the organization receives compensation under

42 USC 1758

note.

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114 STAT. 414 PUBLIC LAW 106–224—JUNE 20, 2000

that title for at least 25 percent of its enrolled children

or 25 percent of its licensed capacity, whichever is less);

‘‘(C) any public or private nonprofit organization acting

as a sponsoring organization for one or more of the

organizations described in subparagraph (A) or (B) or for

an adult day care center (as defined in subsection (o)(2));

‘‘(D) any other private organization acting as a spon-

soring organization for, and that is part of the same legal

entity as, one or more organizations that are—

‘‘(i) described in subparagraph (B); or

‘‘(ii) proprietary title XIX or title XX centers (as

defined in subsection (o)(2));

‘‘(E) any public or private nonprofit organization acting

as a sponsoring organization for one or more family or

group day care homes; and

‘‘(F) any emergency shelter (as defined in subsection

(t)).’’;

(3) by striking ‘‘Except as provided in subsection (r),’’ and

inserting the following:

‘‘(3) A

GE LIMIT

.—Except as provided in subsection (r),’’;

(4) by striking ‘‘The Secretary may establish separate

guidelines’’ and inserting the following:

‘‘(4) A

DDITIONAL GUIDELINES

.—The Secretary may establish

separate guidelines’’;

(5) by striking ‘‘For purposes of determining’’ and all that

follows through ‘‘an institution’’ and inserting the following:

‘‘(5) L

ICENSING

.—In order to be eligible, an institution’’;

and

(6) by striking ‘‘standards; and’’ and inserting ‘‘standards.’’;

(7) by striking ‘‘(2) no institution’’ and inserting the fol-

lowing:

‘‘(6) E

LIGIBILITY CRITERIA

.—No institution’’; and

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

(A) in subparagraph (B), by inserting ‘‘, or has not

been determined to be ineligible to participate in any other

publicly funded program by reason of violation of the

requirements of the program’’ before ‘‘, for a period’’;

(B) in subparagraph (C)—

(i) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

(ii) by adding at the end the following:

‘‘(ii) in the case of a sponsoring organization, the

organization shall employ an appropriate number of moni-

toring personnel based on the number and characteristics

of child care centers and family or group day care homes

sponsored by the organization, as approved by the State

(in accordance with regulations promulgated by the Sec-

retary), to ensure effective oversight of the operations of

the child care centers and family or group day care homes;

and’’;

inserting a semicolon; and

(D) by adding at the end the following:

‘‘(E) in the case of a sponsoring organization, the

organization has in effect a policy that restricts other

employment by employees that interferes with the respon-

sibilities and duties of the employees of the organization

with respect to the program; and

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114 STAT. 415PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(F) in the case of a sponsoring organization that

applies for initial participation in the program on or after

the date of the enactment of this subparagraph and that

operates in a State that requires such institutions to be

bonded under State law, regulation, or policy, the institu-

tion is bonded in accordance with such law, regulation,

or policy.’’.

(b) I

NSTITUTION

PPROVAL AND

PPLICATIONS

.—

(1) I

N GENERAL

.—Section 17(d) of the Richard B. Russell

National School Lunch Act (42 U.S.C. 1766(d)) is amended

by striking the subsection designation and all that follows

through the end of paragraph (1) and inserting the following:

‘‘(d) I

NSTITUTION

PPROVAL AND

PPLICATIONS

.—

‘‘(1) I

NSTITUTION APPROVAL

.—

‘‘(A) A

DMINISTRATIVE CAPABILITY

.—Subject to subpara-

graph (B) and except as provided in subparagraph (C),

the State agency shall approve an institution that meets

the requirements of this section for participation in the

child and adult care food program if the State agency

determines that the institution—

‘‘(i) is financially viable;

‘‘(ii) is administratively capable of operating the

program (including whether the sponsoring organiza-

tion has business experience and management plans

appropriate to operate the program) described in the

application of the institution; and

‘‘(iii) has internal controls in effect to ensure pro-

gram accountability.

‘‘(B) A

PPROVAL OF PRIVATE INSTITUTIONS

.—

‘‘(i) I

N GENERAL

.—In addition to the requirements

established by subparagraph (A) and subject to clause

(ii), the State agency shall approve a private institution

that meets the requirements of this section for partici-

pation in the child and adult care food program only

if—

‘‘(I) the State agency conducts a satisfactory

visit to the institution before approving the partici-

pation of the institution in the program; and

‘‘(II) the institution—

‘‘(aa) has tax exempt status under the

Internal Revenue Code of 1986;

‘‘(bb) is operating a Federal program

requiring nonprofit status to participate in the

program; or

‘‘(cc) is described in subsection (a)(2)(B).

‘‘(ii) E

XCEPTION FOR FAMILY OR GROUP DAY CARE

HOMES

.—Clause (i) shall not apply to a family or group

day care home.

‘‘(C) E

XCEPTION FOR CERTAIN SPONSORING ORGANIZA

TIONS

.—

‘‘(i) I

N GENERAL

.—The State agency may approve

an eligible institution acting as a sponsoring organiza-

tion for one or more family or group day care homes

or centers that, at the time of application, is not partici-

pating in the child and adult care food program only

if the State agency determines that—

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114 STAT. 416 PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(I) the institution meets the requirements

established by subparagraphs (A) and (B); and

‘‘(II) the participation of the institution will

help to ensure the delivery of benefits to otherwise

unserved family or group day care homes or cen-

ters or to unserved children in an area.

‘‘(ii) C

RITERIA FOR SELECTION

.—The State agency

shall establish criteria for approving an eligible institu-

tion acting as a sponsoring organization for one or

more family or group day care homes or centers that,

at the time of application, is not participating in the

child and adult care food program for the purpose

of determining if the participation of the institution

will help ensure the delivery of benefits to otherwise

unserved family or group day care homes or centers

or to unserved children in an area.

‘‘(D) N

OTIFICATION TO APPLICANTS

.—Not later than 30

days after the date on which an applicant institution files

a completed application with the State agency, the State

agency shall notify the applicant institution whether the

institution has been approved or disapproved to participate

in the child and adult care food program.’’.

(2) S

ITE VISITS

.—Section 17(d)(2)(A) of the Richard B.

Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(A))

is amended—

(A) in clause (i), by striking ‘‘; and’’ and inserting

a semicolon;

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

‘‘(ii)(I) requires periodic unannounced site visits at not less

than 3-year intervals to sponsored child care centers and family

or group day care homes to identify and prevent management

deficiencies and fraud and abuse under the program;

‘‘(II) requires at least one scheduled site visit each year

to sponsored child care centers and family or group day care

homes to identify and prevent management deficiencies and

fraud and abuse under the program and to improve program

operations; and

‘‘(III) requires at least one scheduled site visit at not less

than 3-year intervals to sponsoring organizations and nonspon-

sored child care centers to identify and prevent management

deficiencies and fraud and abuse under the program and to

improve program operations; and’’.

(3) C

ONFORMING AMENDMENT

.—Section 17(d)(2)(B) of the

Richard B. Russell National School Lunch Act (42 U.S.C.

1766(d)(2)(B)) is amended by striking ‘‘subsection (a)(1)’’ and

inserting ‘‘subsection (a)(5)’’.

(4) P

ROGRAM INFORMATION

.—

(A) I

N GENERAL

.—Section 17(d) of the Richard B.

Russell National School Lunch Act (42 U.S.C. 1766(d))

is amended by adding at the end the following:

‘‘(3) P

ROGRAM INFORMATION

.—

‘‘(A) I

N GENERAL

.—On enrollment of a child in a spon-

sored child care center or family or group day care home

participating in the program, the center or home (or its

sponsoring organization) shall provide to the child’s parents

or guardians—

Deadline.

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114 STAT. 417PUBLIC LAW 106–224—JUNE 20, 2000

‘‘(i) information that describes the program and

its benefits; and

‘‘(ii) the name and telephone number of the spon-

soring organization of the center or home and the

State agency involved in the operation of the program.

‘‘(B) F

ORM

.—The information described in subpara-

graph (A) shall be in a form and, to the maximum extent

practicable, language easily understandable by the child’s

parents or guardians.’’.

(B) E

FFECTIVE DATE

.—In the case of a child that is

enrolled in a sponsored child care center or family or group

day care home participating in the child and adult care

food program under section 17 of the Richard B. Russell

National School Lunch Act (42 U.S.C. 1766) before the

date of the enactment of this Act, the center or home

shall provide information to the child’s parents or guard-

ians pursuant to section 17(d)(3) of that Act, as added

by subparagraph (A), not later than 90 days after the

date of the enactment of this Act.

(5) A

LLOWABLE ADMINISTRATIVE EXPENSES FOR SPONSORING

ORGANIZATIONS

.—Section 17(d) of the Richard B. Russell

National School Lunch Act (42 U.S.C. 1766(d)), as amended

by paragraph (4)(A), is amended by adding at the end the

following:

‘‘(4) A

LLOWABLE ADMINISTRATIVE EXPENSES FOR SPONSORING

ORGANIZATIONS

.—In consultation with State agencies and spon-

soring organizations, the Secretary shall develop, and provide

for the dissemination to State agencies and sponsoring

organizations of, a list of allowable reimbursable administrative

expenses for sponsoring organizations under the program.’’.

ERMINATION OR

USPENSION OF

ARTICIPATING

RGANIZA

TIONS

.—Section 17(d) of the Richard B. Russell National School

Lunch Act (42 U.S.C. 1766(d)), as amended by subsection (b)(5),

is amended by adding at the end the following:

‘‘(5) T

ERMINATION OR SUSPENSION OF PARTICIPATING

ORGANIZATIONS

.—

‘‘(A) I

N GENERAL

.—The Secretary shall establish proce-

dures for the termination of participation by institutions

and family or group day care homes under the program.

‘‘(B) S

TANDARDS

.—Procedures established pursuant to

subparagraph (A) shall include standards for terminating

the participation of an institution or family or group day

care home that—

‘‘(i) engages in unlawful practices, falsifies informa-

tion provided to the State agency, or conceals a

criminal background; or

‘‘(ii) substantially fails to fulfill the terms of its

agreement with the State agency.

‘‘(C) C

ORRECTIVE ACTION

.—Procedures established

pursuant to subparagraph (A)—

‘‘(i) shall require an entity described in subpara-

graph (B) to undertake corrective action; and

‘‘(ii) may require the immediate suspension of oper-

ation of the program by an entity described in subpara-

graph (B), without the opportunity for corrective action,

if the State agency determines that there is imminent

threat to the health or safety of a participant at the

Procedures.

Deadline.

42 USC 1766

note.

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114 STAT. 418 PUBLIC LAW 106–224—JUNE 20, 2000

entity or the entity engages in any activity that poses

a threat to public health or safety.

‘‘(D) H

EARING

.—An institution or family or group day

care home shall be provided a fair hearing in accordance

with subsection (e)(1) prior to any determination to termi-

nate participation by the institution or family or group

day care home under the program.

‘‘(E) L

IST OF DISQUALIFIED INSTITUTIONS AND INDIVID

UALS

.—

‘‘(i) I

N GENERAL

.—The Secretary shall maintain

a list of institutions, sponsored family or group day

care homes, and individuals that have been terminated

or otherwise disqualified from participation in the pro-

gram.

‘‘(ii) A

VAILABILITY

.—The Secretary shall make the

list available to State agencies for use in approving

or renewing applications by institutions, sponsored

family or group day care homes, and individuals for

participation in the program.’’.

(d) R

ECOVERY OF

MOUNTS

ROM

NSTITUTIONS

.—Section

17(f )(1) of the Richard B. Russell National School Lunch Act (42

U.S.C. 1766(f )(1)) is amended—

(1) by striking ‘‘(f )(1) Funds paid’’ and inserting the fol-

lowing:

‘‘(f ) S

TATE

ISBURSEMENTS TO

NSTITUTIONS

.—

‘‘(1) I

N GENERAL

.—

‘‘(A) R

EQUIREMENT

.—Funds paid’’; and

(2) by adding at the end the following:

‘‘(B) F

RAUD OR ABUSE

.—

‘‘(i) I

N GENERAL

.—The State may recover funds

disbursed under subparagraph (A) to an institution

if the State determines that the institution has engaged

in fraud or abuse with respect to the program or has

submitted an invalid claim for reimbursement.

‘‘(ii) P

AYMENT

.—Amounts recovered under clause

(i)—

‘‘(I) may be paid by the institution to the State

over a period of one or more years; and

‘‘(II) shall not be paid from funds used to pro-

vide meals and supplements.

‘‘(iii) H

EARING

.—An institution shall be provided

a fair hearing in accordance with subsection (e)(1) prior

to any determination to recover funds under this

subparagraph.’’.

(e) L

IMITATION ON

DMINISTRATIVE

XPENSES FOR

ERTAIN

PONSORING

RGANIZATIONS

.—Section 17(f )(2) of the Richard B.

Russell National School Lunch Act (42 U.S.C. 1766(f )(2)) is amended

by adding at the end the following:

‘‘(C) L

IMITATION ON ADMINISTRATIVE EXPENSES FOR

CERTAIN SPONSORING ORGANIZATIONS

.—

‘‘(i) I

N GENERAL

.—Except as provided in clause

(ii), a sponsoring organization of a day care center

may reserve not more than 15 percent of the funds

provided under paragraph (1) for the administrative

expenses of the organization.

‘‘(ii) W

AIVER

.—A State may waive the requirement

in clause (i) with respect to a sponsoring organization

Records.

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114 STAT. 419PUBLIC LAW 106–224—JUNE 20, 2000

if the organization provides justification to the State

that the organization requires funds in excess of 15

percent of the funds provided under paragraph (1)

to pay the administrative expenses of the organiza-

tion.’’.

(f ) L

IMITATIONS ON

BILITY OF

AMILY OR

ROUP

ARE

OMES TO

RANSFER

PONSORING

RGANIZATIONS

.—Section 17(f )(3)

of the Richard B. Russell National School Lunch Act (42 U.S.C.

1766(f )(3)) is amended by striking subparagraph (D) and inserting

the following:

‘‘(D) L

IMITATIONS ON ABILITY OF FAMILY OR GROUP DAY

CARE HOMES TO TRANSFER SPONSORING ORGANIZATIONS

.—

‘‘(i) I

N GENERAL

.—Subject to clause (ii), a State

agency shall limit the ability of a family or group

day care home to transfer from a sponsoring organiza-

tion to another sponsoring organization more fre-

quently than once a year.

‘‘(ii) G

OOD CAUSE

.—The State agency may permit

or require a family or group day care home to transfer

from a sponsoring organization to another sponsoring

organization more frequently than once a year for good

cause (as determined by the State agency), including

circumstances in which the sponsoring organization

of the family or group day care home ceases to partici-

pate in the child and adult care food program.’’.

(g) S

TATE

WIDE

EMONSTRATION

ROJECTS

NVOLVING

RIVATE

-P

ROFIT

RGANIZATIONS

HAT

ROVIDE

ONRESIDENTIAL

ARE

ERVICES

.—

(1) I

N GENERAL

.—Section 17(p) of the Richard B. Russell

National School Lunch Act (42 U.S.C. 1766(p)) is amended—

(A) in the first sentence of paragraph (1), by striking

‘‘2 statewide demonstration projects’’ and inserting ‘‘State-

wide demonstration projects in three States’’; and

(B) in paragraph (3)—

(i) by inserting ‘‘in’’ after ‘‘subsection’’;

(ii) in subparagraph (A), by striking ‘‘and’’ at the

end;

(iii) in subparagraph (B), by striking the period

at the end and inserting ‘‘; and’’; and

(iv) by adding at the end the following:

‘‘(C) one other State—

‘‘(i) with fewer than 60,000 children below 5 years

of age;

‘‘(ii) that serves more than the national average propor-

tion of children potentially eligible for assistance provided

under the Child Care and Development Fund (as indicated

in data published by the Department of Health and Human

Services in October 1999);

‘‘(iii) that exempts all families from cost sharing

requirements under programs funded by the Child Care

and Development Fund; and

‘‘(iv) in which State spending represents more than

50 percent of total expenditures made under the Child

Care and Development Fund.’’.

(2) E

FFECTIVE DATE

.—The Secretary may carry out dem-

onstration projects in the State described in section 17(p)(3)(C)

of the Richard B. Russell National School Lunch Act, as added

42 USC 1766

note.

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114 STAT. 420 PUBLIC LAW 106–224—JUNE 20, 2000

by paragraph (1)(B)(iv), beginning not earlier than October

1, 2001.

(h) T

ECHNICAL AND

RAINING

SSISTANCE FOR

DENTIFICATION

AND

REVENTION OF

RAUD AND

BUSE

.—Section 17(q) of the

Richard B. Russell National School Lunch Act (42 U.S.C. 1766(q))

is amended—

(1) by redesignating paragraph (2) as paragraph (3); and

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

‘‘(2) T

ECHNICAL AND TRAINING ASSISTANCE FOR IDENTIFICA

TION AND PREVENTION OF FRAUD AND ABUSE

.—As part of

training and technical assistance provided under paragraph

(1), the Secretary shall provide training on a continuous basis

to State agencies, and shall ensure that such training is pro-

vided to sponsoring organizations, for the identification and

prevention of fraud and abuse under the program and to

improve management of the program.’’.

(i) P

ROGRAM FOR

-R

ISK

CHOOL

HILDREN

.—Section 17(r)

of the Richard B. Russell National School Lunch Act (42 U.S.C.

1766(r)) is amended—

(1) in paragraph (2), by inserting ‘‘meals or’’ before ‘‘supple-

ments’’;

(2) in paragraph (4)—

(A) in the heading, by striking ‘‘S

UPPLEMENT

’’ and

inserting ‘‘M

EAL AND SUPPLEMENT

’’;

(B) in subparagraph (A)—

(i) by striking ‘‘only for’’ and all that follows

through ‘‘(i) a supplement’’ and inserting ‘‘only for one

meal per child per day and one supplement per child

per day’’;

(ii) by striking ‘‘; and’’ and inserting a period;

and

(iii) by striking clause (ii);

ATE

.—A supple-

ment’’ and inserting the following: ‘‘R

ATES

.—

‘‘(i) M

EALS

.—A meal shall be reimbursed under

this subsection at the rate established for free meals

under subsection (c).

‘‘(ii) S

UPPLEMENTS

.—A supplement’’; and

(D) in subparagraph (C), by inserting ‘‘meal or’’ before

‘‘supplement’’; and

(3) by adding at the end the following:

‘‘(5) L

IMITATION

.—The Secretary shall limit reimbursement

under this subsection for meals served under a program to

institutions located in six States, of which four States shall

be Pennsylvania, Missouri, Delaware, and Michigan and two

States shall be approved by the Secretary through a competitive

application process.’’.

( j) W

ITHHOLDING OF

UNDS FOR

AILURE TO

ROVIDE

UFFI

CIENT

RAINING

, T

ECHNICAL

SSISTANCE

AND

ONITORING

.—Sec-

tion 7(a)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C.

1776(a)(9)(A)) is amended by inserting after ‘‘the Richard B. Russell

National School Lunch Act (42 U.S.C. 1751 et seq.)’’ the following:

‘‘(including any requirement to provide sufficient training, technical

assistance, and monitoring of the child and adult care food program

under section 17 of that Act (42 U.S.C. 1766))’’.

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114 STAT. 421PUBLIC LAW 106–224—JUNE 20, 2000

SEC. 244. ADJUSTMENTS TO WIC PROGRAM.

(a) D

EFINITION

.—Section 17(b) of the Child Nutrition Act of

1966 (42 U.S.C. 1786(b)) is amended by adding at the end the

following:

‘‘(21) R

EMOTE INDIAN OR NATIVE VILLAGE

.—The term

‘remote Indian or Native village’ means an Indian or Native

village that—

‘‘(A) is located in a rural area;

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

and

‘‘(C) is not accessible year-around by means of a public

road (as defined in section 101 of title 23, United States

Code).’’.

(b) C

OST

-L

IVING

LLOWANCES FOR

EMBERS OF

NIFORMED

ERVICES

.—Section 17(d)(2)(B) of the Child Nutrition Act of 1966

(42 U.S.C. 1786(d)(2)(B)) is amended—

(1) by striking ‘‘income any’’ and inserting ‘‘income—

‘‘(i) any’’;

(2) by striking ‘‘quarters’’ and inserting ‘‘housing’’;

(3) by striking the period at the end and inserting ‘‘; and’’;

and

(4) by adding at the end the following:

‘‘(ii) any cost-of-living allowance provided under section

405 of title 37, United States Code, to a member of a uniformed

service who is on duty outside the continental United States.’’.

ROOF OF

ESIDENCY

.—Section 17(d)(3) of the Child Nutri-

tion Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at

the end the following:

‘‘(F) P

ROOF OF RESIDENCY

.—An individual residing in

a remote Indian or Native village or an individual served

by an Indian tribal organization and residing on a reserva-

tion or pueblo may, under standards established by the

Secretary, establish proof of residency under this section

by providing to the State agency the mailing address of

the individual and the name of the remote Indian or Native

village.’’.

(d) A

DJUSTMENT OF

RANT

.—Section 17(h)(1)(B) of the Child

Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(B)) is amended—

(1) in clause (i), by striking ‘‘the fiscal year 1987’’ and

inserting ‘‘the preceding fiscal year’’; and

(2) in clause (ii)—

(A) by striking ‘‘the fiscal year 1987’’ and inserting

‘‘the preceding fiscal year’’; and

(B) by striking subclause (I) and inserting the fol-

lowing:

‘‘(I) the value of the index for State and local government

purchases, as published by the Bureau of Economic Analysis

of the Department of Commerce, for the 12-month period ending

June 30 of the second preceding fiscal year; and’’.

(e) A

LLOCATION OF

UNDS

.—Section 17(h)(5) of the Child Nutri-

tion Act of 1966 (42 U.S.C. 1786(h)(5)) is amended by adding at

the end the following:

‘‘(D) R

EMOTE INDIAN OR NATIVE VILLAGES

.—For non-

contiguous States containing a significant number of

remote Indian or Native villages, a State agency may con-

vert amounts allocated for food benefits for a fiscal year

to the costs of nutrition services and administration to

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114 STAT. 422 PUBLIC LAW 106–224—JUNE 20, 2000

the extent that the conversion is necessary to cover

expenditures incurred in providing services (including the

full cost of air transportation and other transportation)

to remote Indian or Native villages and to provide

breastfeeding support in remote Indian or Native villages.’’.

(f ) E

FFECTIVE

ATES

.—

(1) I

N GENERAL

.—Except as provided in paragraph (2), the

amendments made by this section take effect on the date of

the enactment of this Act.

(2) A

LLOCATION OF FUNDS

.—The amendments made by sub-

sections (d) and (e) take effect on October 1, 2000.

Subtitle F—Other Programs

SEC. 251. AUTHORITY TO PROVIDE LOAN IN CONNECTION WITH BOLL

WEEVIL ERADICATION.

(a) L

OAN

UTHORITY

.—Notwithstanding any other provision of

law, the Secretary, acting through the Farm Service Agency, shall

use $10,000,000 of funds of the Commodity Credit Corporation

to make a loan to the Texas Boll Weevil Eradication Foundation,

Inc., to enable the Foundation to retire certain debt associated

with boll weevil eradication zones which have ended their participa-

tion, in whole or in part, in the federally funded boll weevil eradi-

cation program.

(b) R

EPAYMENT

ERMS AND

ONDITIONS

.—The loan provided

under subsection (a) shall be subject to the following terms and

conditions:

(1) Repayment shall be scheduled to begin on January

1 of the year following the first year during which the boll

weevil eradication zone, or any part thereof, responsible for

the debt retired using the loan resumes participation in any

federally funded boll weevil eradication program.

(2) No interest shall be charged.

IMITATION

.—The cost of the loan made under this section

shall not exceed the loan subsidy sufficient to make the loan.

SEC. 252. ANIMAL DISEASE CONTROL.

(a) P

SEUDORABIES

.—Of the amount made available under sec-

tion 261(a)(2), the Secretary shall use $7,000,000 to cover

pseudorabies vaccination costs incurred by pork producers.

(b) B

OVINE

UBERCULOSIS

.—Of the amount made available

under section 261(a)(2), the Secretary shall use $6,000,000 to

respond to bovine tuberculosis in the State of Michigan. The funds

shall be available for the following purposes:

(1) The surveillance and testing of cattle and wildlife.

(2) Research regarding bovine tuberculosis, to be conducted

by the Agricultural Research Service and Michigan State

University.

(3) The provision of increased indemnity payments to

encourage the depopulation of infected herds.

(4) The performance of diagnostic testing and treatment

of humans affected by bovine tuberculosis.

(5) Slaughter surveillance.

(6) The control and prevention of the exposure of livestock

to infected wildlife, including the installation of fencing to mini-

mize contact between livestock and wildlife.

Texas.

42 USC 1786

note.

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114 STAT. 423PUBLIC LAW 106–224—JUNE 20, 2000

(7) The distribution of information regarding the risk and

control of bovine tuberculosis, including technological improve-

ments to enhance communication.

SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS.

(a) I

ENERAL

.—Of the amount made available under section

261(a)(2), the Secretary shall use $35,000,000, plus $200,000 for

payment of administrative costs, to make no-interest loans to pro-

ducers of the 1999 crop of grass, forage, vegetable, and sorghum

seed that have not received payments from AgriBiotech for the

seed as a result of bankruptcy proceedings involving AgriBiotech

(referred to in this section as the ‘‘bankruptcy proceedings’’).

(b) L

OANS

.—

(1) I

N GENERAL

.—The amount of the loan made to a seed

producer under this section shall be not more than 65 percent

of the amount owed by AgriBiotech to the seed producer for

the 1999 seed crop, as determined by the Secretary.

(2) E

LIGIBILITY

.—To be eligible for a loan under this section,

the claim of a seed producer in the bankruptcy proceedings

must have arisen from a contract to grow seeds in the United

States.

(3) C

ONTROL

.—In determining the amount owed by

AgriBiotech to a seed producer under paragraph (1), the Sec-

retary shall consider whether the seed producer has relin-

quished control of the seed to AgriBiotech or has the seed

in inventory waiting to be sold.

(4) S

ECURITY

.—A loan to a seed producer under this section

shall be secured in part by the claim of the seed producer

in the bankruptcy proceedings.

(5) R

EPAYMENT

.—Each seed producer shall repay to the

Secretary, for deposit in the Treasury, the amount of the loan

made to the seed producer on the earlier of—

(A) the date of settlement of, completion of, or final

distribution of assets in the bankruptcy proceedings

involving AgriBiotech; or

(B) the date that is 18 months after the date on which

the loan was made to the seed producer.

DDITIONAL

ERMS

.—

(1) S

HORTFALL IN AMOUNT RECEIVED FROM BANKRUPTCY

PROCEEDINGS

.—If the amount that the seed producer receives

as a result of the proceedings described in subsection (b)(5)(A)

is less than the amount of the loan made to the seed producer

under subsection (b)(1), the seed producer shall be eligible

to have the balance of the loan converted, but not refinanced,

to a loan that has the same terms and conditions as an oper-

ating loan under subtitle B of the Consolidated Farm and

Rural Development Act (7 U.S.C. 1941 et seq.).

(2) L

ENGTHY BANKRUPTCY PROCEEDINGS

.—If a seed pro-

ducer is required to repay a loan under subsection (b)(5)(B),

the seed producer shall be eligible to have the balance of

the loan converted, but not refinanced, to a loan that has

the same terms and conditions as an operating loan under

subtitle B of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1941 et seq.).

(d) L

IMITATION

.—The cost of all loans made under this section

shall not exceed $15,000,000.

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114 STAT. 424 PUBLIC LAW 106–224—JUNE 20, 2000

SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CER-

TAIN OFFICES.

(a) S

USPENSION

.—During the period beginning on the date of

the enactment of this Act and ending on June 1, 2001, the Secretary

may not combine or take any action to combine, at the State

level, offices of the agencies specified in subsection (b) unless the

offices are located in the same county as of the date of the enactment

of this Act.

(b) C

OVERED

FFICES

.—Subsection (a) applies to an office of

any of the following agencies:

(1) The Farm Service Agency.

(2) The Natural Resources Conservation Service.

(3) The Rural Utilities Service.

(4) The Rural Housing Service.

(5) The Rural Business-Cooperative Service.

EPORT

.—Not later than April 1, 2001, the Secretary shall

submit to the Committee on Agriculture of the House of Representa-

tives and the Committee on Agriculture, Nutrition, and Forestry

of the Senate a report describing any proposed combination of

offices specified in subsection (b) that includes a certification that

the proposed combination would result in the lowest cost to the

Federal Government over the long term.

SEC. 255. FARM OPERATING LOAN ELIGIBILITY.

During the period beginning on the date of the enactment

of this Act and ending on December 31, 2002—

(1) sections 311(c) and 319 of the Consolidated Farm and

Rural Development Act (7 U.S.C. 1941(c), 1949) shall have

no force or effect; and

(2) in making direct loans under subtitle B of that Act

(7 U.S.C. 1941 et seq.), the Secretary shall give priority to

a qualified beginning farmer or rancher who has not operated

a farm or ranch, or who has operated a farm or ranch for

not more than 5 years.

SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN

ALASKA.

Section 306D of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926d) is amended by striking subsection (d) and

inserting the following:

‘‘(d) A

UTHORIZATION OF

PPROPRIATIONS

.—

‘‘(1) I

N GENERAL

.—There are authorized to be appropriated

to carry out this section $30,000,000 for each of fiscal years

2001 and 2002.

‘‘(2) T

RAINING AND TECHNICAL ASSISTANCE

.—Not more than

2 percent of the amount made available under paragraph (1)

for a fiscal year may be used by the State of Alaska for training

and technical assistance programs relating to the operation

and management of water and waste disposal services in rural

and Native villages.

‘‘(3) A

VAILABILITY

.—Funds appropriated pursuant to the

authorization of appropriations in paragraph (1) shall be avail-

able until expended.’’.

SEC. 257. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.

(a) D

EFINITION OF

OVERED

AND

.—In this section:

(1) I

N GENERAL

.—The term ‘‘covered land’’ means land

that—

7 USC 1421 note.

Effective date.

Termination

date.

Deadline.

7 USC 1941 note.

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114 STAT. 425PUBLIC LAW 106–224—JUNE 20, 2000

(A) was unusable for agricultural production during

the 2000 crop year as the result of flooding;

(B) was used for agricultural production during at least

one of the 1992 through 1999 crop years;

and

(D) is located in a county in which producers were

eligible for assistance under the 1998 Flood Compensation

Program established under part 1439 of title 7, Code of

Federal Regulations.

(2) E

XCLUSIONS

.—The term ‘‘covered land’’ excludes any

land for which a producer is insured, enrolled, or assisted

during the 2000 crop year under—

(A) a policy or plan of insurance authorized under

the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);

(B) the noninsured crop assistance program operated

under section 196 of the Agricultural Market Transition

Act (7 U.S.C. 7333);

crop year;

(D) the conservation reserve program established under

subchapter B of chapter 1 of subtitle D of the Food Security

Act of 1985 (16 U.S.C. 3831 et seq.);

(E) the wetlands reserve program established under

subchapter C of chapter 1 of subtitle D of the Food Security

Act of 1985 (16 U.S.C. 3837 et seq.);

(F) any emergency watershed protection program or

Federal easement program that prohibits crop production

or grazing; or

(G) any other Federal or State water storage program,

as determined by the Secretary.

(b) C

OMPENSATION

.—The Secretary shall use not more than

$24,000,000 of funds of the Commodity Credit Corporation to com-

pensate producers with covered land described with respect to losses

from long-term flooding.

AYMENT

ATE

.—The payment rate for compensation pro-

vided to a producer under this section shall equal the average

county cash rental rate per acre established by the National Agricul-

tural Statistics Service for the 2000 crop year.

(d) P

AYMENT

IMITATION

.—The total amount of payments made

to a person (as defined in section 1001(5) of the Food Security

Act (7 U.S.C. 1308(5))) under this section may not exceed $40,000.

(e) C

ONFORMING

MENDMENT

.—H.R. 3425 of the 106th Con-

gress (as enacted into law by section 1000(a)(5) of Public Law

106–113 (113 Stat. 1535) and included as Appendix E of that

Public Law (113 Stat. 1501A–289)) is amended in section 207 (113

Stat. 1501A–294) by inserting ‘‘or Lake’’ after ‘‘Harney’’.

SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA.

(a) R

EQUIREMENT

.—Subject to subsection (b), as soon as prac-

ticable after the date of the enactment of this Act, with respect

to land and property described in the Flood Mitigation Study and

Project Implementation Plan for the Missouri River near Pierre,

South Dakota, prepared by the Omaha District Corps of Engineers,

dated August 12, 1999, the Secretary of the Army shall—

(1) acquire the land and property from willing sellers;

and

7 USC 1421 note.

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114 STAT. 426 PUBLIC LAW 106–224—JUNE 20, 2000

(2)(A) floodproof the land;

(B) relocate individuals located on the land;

(D) take other measures determined by the Secretary.

(b) R

ELEASES

.—

(1) I

N GENERAL

.—The Secretary shall not proceed with

full wintertime Oahe Powerplant releases until the Secretary

amends the economic analysis in effect on the date of the

enactment of this Act to include an assumption that the Federal

Government is responsible for mitigating any existing ground

water flooding to the land and property described in subsection

(a).

(2) R

EDUCTION

.—To the extent the Secretary identifies

benefits of mitigating any existing ground water flooding, full

wintertime Oahe Powerplant releases shall be reduced con-

sistent with the economic analysis described in paragraph (1).

(3) M

INIMUM LEVEL

.—This subsection shall not permit

Oahe Powerplant releases to be reduced below existing oper-

ational levels.

SEC. 259. RESTORATION OF ELIGIBILITY FOR CROP LOSS ASSISTANCE.

(a) E

FFECT OF

HANGE IN

EGAL

TRUCTURE

.—In the case

of an individual or entity that was not eligible for a payment

pursuant to subsection (c) of section 1102 of the Agriculture, Rural

Development, Food and Drug Administration, and Related Agencies

Appropriations Act, 1999 (as contained in section 101(a) of division

A of Public Law 105–277; 7 U.S.C. 1421 note), solely because

the individual or entity changed the legal structure of the individ-

ual’s or entity’s farming operation, the individual or entity shall

be eligible for the payment the individual or entity would have

received pursuant to that subsection had the individual or entity

not changed the legal structure, less the amount of any payment

received by the individual or entity pursuant to subsection (b)

of that section.

(b) M

ULTIPLE

ARMING

PERATIONS

.—

(1) E

LIGIBLE INDIVIDUALS

.—In the case of an individual

not described in subsection (a) that farmed acreage as a pro-

ducer as a part of more than one farming operation, none

of which received a payment pursuant to subsection (c) of

section 1102 of the Agriculture, Rural Development, Food and

Drug Administration, and Related Agencies Appropriations Act,

1999, the individual shall be eligible for a payment pursuant

to that subsection for losses that the Secretary determines

would have been eligible for compensation with respect to that

acreage based on the individual’s interest in the production

from that acreage.

(2) R

EDUCTION

.—A payment made pursuant to paragraph

(1) to an individual shall be reduced by the amount of a pay-

ment made pursuant to subsection (b) of that section 1102

attributed directly or indirectly to the individual with respect

to the acreage described in paragraph (1).

7 USC 1421 note.

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114 STAT. 427PUBLIC LAW 106–224—JUNE 20, 2000

Subtitle G—Administration

SEC. 261. FUNDING.

(a) P

AYMENT

.—Out of any moneys in the Treasury not otherwise

appropriated, the Secretary of the Treasury shall provide to the

Secretary the following:

(1) $34,000,000 for fiscal year 2000 to carry out section

241(a).

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

following:

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

(B) Subtitle C.

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

(E) Sections 252 and 253.

(b) A

CCEPTANCE

.—The Secretary shall be entitled to receive

the funds and shall accept the funds, without further appropriation.

SEC. 262. OBLIGATION PERIOD.

Except as otherwise provided in this title, the Secretary and

the Commodity Credit Corporation shall obligate and expend—

(1) funds made available under section 261(a)(1) only

during fiscal year 2000; and

(2) funds made available under section 261(a)(2), and funds

of the Commodity Credit Corporation made available under

this title, only during fiscal year 2001.

SEC. 263. REGULATIONS.

(a) P

ROMULGATION

.—As soon as practicable after the date of

the enactment of this Act, the Secretary and the Commodity Credit

Corporation, as appropriate, shall promulgate such regulations as

are necessary to implement this title and the amendments made

by this title. The promulgation of the regulations and administration

of this title shall be made without regard to—

(1) the notice and comment provisions of section 553 of

title 5, United States Code;

(2) the Statement of Policy of the Secretary of Agriculture

effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices

of proposed rulemaking and public participation in rulemaking;

and

(3) chapter 35 of title 44, United States Code (commonly

known as the ‘‘Paperwork Reduction Act’’).

(b) C

ONGRESSIONAL

EVIEW OF

GENCY

ULEMAKING

.—In car-

rying out this section, the Secretary shall use the authority provided

under section 808 of title 5, United States Code.

SEC. 264. PAYGO ADJUSTMENT.

The Director of the Office of Management and Budget shall

not make any estimates of changes in direct spending outlays

and receipts under section 252(d) of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)) resulting

from enactment of this title.

SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT.

Out of any moneys in the Treasury not otherwise appropriated,

the Secretary of the Treasury shall use such sums as may be

necessary to reimburse the Commodity Credit Corporation for net

7 USC 1421 note.

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114 STAT. 428 PUBLIC LAW 106–224—JUNE 20, 2000

realized losses sustained, but not previously reimbursed, under

this title.

TITLE III—BIOMASS RESEARCH AND

DEVELOPMENT ACT OF 2000

SEC. 301. SHORT TITLE.

This title may be cited as the ‘‘Biomass Research and Develop-

ment Act of 2000’’.

SEC. 302. FINDINGS.

Congress finds that—

(1) conversion of biomass into biobased industrial products

offers outstanding potential for benefit to the national interest

through—

(A) improved strategic security and balance of pay-

ments;

(B) healthier rural economies;

(D) near-zero net greenhouse gas emissions;

(E) technology export; and

(F) sustainable resource supply;

(2) the key technical challenges to be overcome in order

for biobased industrial products to be cost-competitive are

finding new technology and reducing the cost of technology

for converting biomass into desired biobased industrial prod-

ucts;

(3) biobased fuels, such as ethanol, have the clear potential

to be sustainable, low cost, and high performance fuels that

are compatible with both current and future transportation

systems and provide near-zero net greenhouse gas emissions;

(4) biobased chemicals have the clear potential for environ-

mentally benign product life cycles;

(5) biobased power can—

(A) provide environmental benefits;

(B) promote rural economic development; and

(6) many biomass feedstocks suitable for industrial proc-

essing show the clear potential for sustainable production, in

some cases resulting in improved soil fertility and carbon

sequestration;

(7)(A) grain processing mills are biorefineries that produce

a diversity of useful food, chemical, feed, and fuel products;

and

(B) technologies that result in further diversification of

the range of value-added biobased industrial products can meet

a key need for the grain processing industry;

(8)(A) cellulosic feedstocks are attractive because of their

low cost and widespread availability; and

(B) research resulting in cost-effective technology to over-

come the recalcitrance of cellulosic biomass would allow bio-

refineries to produce fuels and bulk chemicals on a very large

scale, with a commensurately large realization of the benefit

described in paragraph (1);

(9) research into the fundamentals to understand important

mechanisms of biomass conversion can be expected to accelerate

7 USC 7624 note.

Biomass

Research and

Development Act

of 2000.

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114 STAT. 429PUBLIC LAW 106–224—JUNE 20, 2000

the application and advancement of biomass processing tech-

nology by—

(A) increasing the confidence and speed with which

new technologies can be scaled up; and

(B) giving rise to processing innovations based on new

knowledge;

(10) the added utility of biobased industrial products devel-

oped through improvements in processing technology would

encourage the design of feedstocks that would meet future

needs more effectively;

(11) the creation of value-added biobased industrial prod-

ucts would create new jobs in construction, manufacturing,

and distribution, as well as new higher-valued exports of prod-

ucts and technology;

(12)(A) because of the relatively short-term time horizon

characteristic of private sector investments, and because many

benefits of biomass processing are in the national interest,

it is appropriate for the Federal Government to provide

precommercial investment in fundamental research and

research-driven innovation in the biomass processing area; and

(B) such an investment would provide a valuable com-

plement to ongoing and past governmental support in the bio-

mass processing area; and

(13) several prominent studies, including studies by the

President’s Committee of Advisors on Science and Technology

and the National Research Council—

(A) support the potential for large research-driven

advances in technologies for production of biobased indus-

trial products as well as associated benefits; and

(B) document the need for a focused, integrated, and

innovation-driven research effort to provide the appropriate

progress in a timely manner.

SEC. 303. DEFINITIONS.

In this title:

(1) A

DVISORY COMMITTEE

.—The term ‘‘Advisory Committee’’

means the Biomass Research and Development Technical

Advisory Committee established by section 306.

(2) B

IOBASED INDUSTRIAL PRODUCT

.—The term ‘‘biobased

industrial product’’ means fuels, chemicals, building materials,

or electric power or heat produced from biomass.

(3) B

IOMASS

.—The term ‘‘biomass’’ means any organic

matter that is available on a renewable or recurring basis,

including agricultural crops and trees, wood and wood wastes

and residues, plants (including aquatic plants), grasses, resi-

dues, fibers, and animal wastes, municipal wastes, and other

waste materials.

(4) B

OARD

.—The term ‘‘Board’’ means the Biomass

Research and Development Board established by section 305.

(5) I

NITIATIVE

.—The term ‘‘Initiative’’ means the Biomass

Research and Development Initiative established under section

307.

(6) I

NSTITUTION OF HIGHER EDUCATION

.—The term ‘‘institu-

tion of higher education’’ has the meaning given the term

in section 102(a) of the Higher Education Act of 1965 (20

U.S.C. 1002(a)).

7 USC 7624 note.

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114 STAT. 430 PUBLIC LAW 106–224—JUNE 20, 2000

(7) N

ATIONAL LABORATORY

.—The term ‘‘national laboratory’’

has the meaning given the term ‘‘laboratory’’ in section 12(d)

of the Stevenson-Wydler Technology Innovation Act of 1980

(15 U.S.C. 3710a(d)).

(8) P

OINT OF CONTACT

.—The term ‘‘point of contact’’ means

a point of contact designated under section 304(d).

(9) P

ROCESSING

.—The term ‘‘processing’’ means the deriva-

tion of biobased industrial products from biomass, including—

(A) feedstock production;

(B) harvest and handling;

(D) fermentation;

(E) catalytic processing;

(F) product recovery; and

(G) coproduct production.

(10) R

ESEARCH AND DEVELOPMENT

.—The term ‘‘research

and development’’ means research, development, and dem-

onstration.

SEC. 304. COOPERATION AND COORDINATION IN BIOMASS RESEARCH

AND DEVELOPMENT.

(a) I

ENERAL

.—The Secretary of Agriculture and the Sec-

retary of Energy shall cooperate with respect to, and coordinate,

policies and procedures that promote research and development

leading to the production of biobased industrial products.

(b) P

URPOSES

.—The purposes of the cooperation and coordina-

tion shall be—

(1) to understand the key mechanisms underlying the recal-

citrance of biomass for conversion into biobased industrial prod-

ucts;

(2) to develop new and cost-effective technologies that

would result in large-scale commercial production of low cost

and sustainable biobased industrial products;

(3) to ensure that biobased industrial products are devel-

oped in a manner that enhances their economic, energy security,

and environmental benefits; and

(4) to promote the development and use of agricultural

and energy crops for conversion into biobased industrial prod-

ucts.

REAS

.—In carrying out this title, the Secretary of Agri-

culture and the Secretary of Energy, in consultation with heads

of appropriate departments and agencies, shall promote research

and development—

(1) to advance the availability and widespread use of energy

efficient, economically competitive, and environmentally sound

biobased industrial products in a manner that is consistent

with the goals of the United States relating to sustainable

and secure supplies of food, chemicals, and fuel;

(2) to ensure full consideration of Federal land and land

management programs as potential feedstock resources for

biobased industrial products; and

(3) to assess the environmental, economic, and social impact

of production of biobased industrial products from biomass on

a large scale.

(d) P

OINTS OF

ONTACT

.—

7 USC 7624 note.

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114 STAT. 431PUBLIC LAW 106–224—JUNE 20, 2000

(1) I

N GENERAL

.—To coordinate research and development

programs and activities relating to biobased industrial products

that are carried out by their respective Departments—

(A) the Secretary of Agriculture shall designate, as

the point of contact for the Department of Agriculture,

an officer of the Department of Agriculture appointed by

the President to a position in the Department before the

date of the designation, by and with the advice and consent

of the Senate; and

(B) the Secretary of Energy shall designate, as the

point of contact for the Department of Energy, an officer

of the Department of Energy appointed by the President

to a position in the Department before the date of the

designation, by and with the advice and consent of the

Senate.

(2) D

UTIES

.—The points of contact shall jointly—

(A) assist in arranging interlaboratory and site-specific

supplemental agreements for research and development

projects relating to biobased industrial products;

(B) serve as cochairpersons of the Board;

(D) respond in writing to each recommendation of the

Advisory Committee made under section 306(c).

SEC. 305. BIOMASS RESEARCH AND DEVELOPMENT BOARD.

(a) E

STABLISHMENT

.—There is established the Biomass

Research and Development Board, which shall supersede the Inter-

agency Council on Biobased Products and Bioenergy established

by Executive Order No. 13134, to coordinate programs within and

among departments and agencies of the Federal Government for

the purpose of promoting the use of biobased industrial products

by—

(1) maximizing the benefits deriving from Federal grants

and assistance; and

(2) bringing coherence to Federal strategic planning.

(b) M

EMBERSHIP

.—The Board shall consist of—

(1) the point of contact of the Department of Energy des-

ignated under section 304(d)(1)(B), who shall serve as cochair-

person of the Board;

(2) the point of contact of the Department of Agriculture

designated under section 304(d)(1)(A), who shall serve as

cochairperson of the Board;

(3) a senior officer of each of the Department of the Interior,

the Environmental Protection Agency, the National Science

Foundation, and the Office of Science and Technology Policy,

each of whom shall—

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

and

(B) have a rank that is equivalent to the rank of

the points of contact; and

(4) at the option of the Secretary of Agriculture and the

Secretary of Energy, other members appointed by the Secre-

taries (after consultation with the members described in para-

graphs (1) through (3)).

UTIES

.—The Board shall—

(1) coordinate research and development activities relating

to biobased industrial products—

7 USC 7624 note.

Government

organization.

President.

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114 STAT. 432 PUBLIC LAW 106–224—JUNE 20, 2000

(A) between the Department of Agriculture and the

Department of Energy; and

(B) with other departments and agencies of the Federal

Government; and

(2) provide recommendations to the points of contact con-

cerning administration of this title.

(d) F

UNDING

.—Each agency represented on the Board is encour-

aged to provide funds for any purpose under this title.

(e) M

EETINGS

.—The Board shall meet at least quarterly to

enable the Board to carry out the duties of the Board under sub-

section (c).

SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL

ADVISORY COMMITTEE.

(a) E

STABLISHMENT

.—There is established the Biomass

Research and Development Technical Advisory Committee, which

shall supersede the Advisory Committee on Biobased Products and

Bioenergy established by Executive Order No. 13134—

(1) to advise the Secretary of Energy, the Secretary of

Agriculture, and the points of contact concerning—

(A) the technical focus and direction of requests for

proposals issued under the Initiative; and

(B) procedures for reviewing and evaluating the pro-

posals;

(2) to facilitate consultations and partnerships among

Federal and State agencies, agricultural producers, industry,

consumers, the research community, and other interested

groups to carry out program activities relating to the Initiative;

and

(3) to evaluate and perform strategic planning on program

activities relating to the Initiative.

(b) M

EMBERSHIP

.—

(1) I

N GENERAL

.—The Advisory Committee shall consist

of—

(A) an individual affiliated with the biobased industrial

products industry;

(B) an individual affiliated with an institution of higher

education who has expertise in biobased industrial prod-

ucts;

ment or academia who have expertise in biobased industrial

products;

(D) an individual affiliated with a commodity trade

association;

(E) an individual affiliated with an environmental or

conservation organization;

(F) an individual associated with State government

who has expertise in biobased industrial products;

(G) an individual with expertise in energy analysis;

(H) an individual with expertise in the economics of

biobased industrial products;

(I) an individual with expertise in agricultural

economics; and

(J) at the option of the points of contact, other mem-

bers.

(2) A

PPOINTMENT

.—The members of the Advisory Com-

mittee shall be appointed by the points of contact.

7 USC 7624 note.

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114 STAT. 433PUBLIC LAW 106–224—JUNE 20, 2000

UTIES

.—The Advisory Committee shall—

(1) advise the points of contact with respect to the Initia-

tive; and

(2) evaluate whether, and make recommendations in

writing to the Board to ensure that—

(A) funds authorized for the Initiative are distributed

and used in a manner that is consistent with the goals

of the Initiative;

(B) the points of contact are funding proposals under

this title that are selected on the basis of merit, as deter-

mined by an independent panel of scientific and technical

peers; and

ance with this title.

(d) C

OORDINATION

.—To avoid duplication of effort, the Advisory

Committee shall coordinate its activities with those of other Federal

advisory committees working in related areas.

(e) M

EETINGS

.—The Advisory Committee shall meet at least

quarterly to enable the Advisory Committee to carry out the duties

of the Advisory Committee under subsection (c).

(f ) T

ERMS

.—Members of the Advisory Committee shall be

appointed for a term of 3 years, except that—

(1) one-third of the members initially appointed shall be

appointed for a term of 1 year; and

(2) one-third of the members initially appointed shall be

appointed for a term of 2 years.

SEC. 307. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

(a) I

ENERAL

.—The Secretary of Agriculture and the Sec-

retary of Energy, acting through their respective points of contact

and in consultation with the Board, shall establish and carry out

a Biomass Research and Development Initiative under which

competitively awarded grants, contracts, and financial assistance

are provided to, or entered into with, eligible entities to carry

out research on biobased industrial products.

(b) P

URPOSES

.—The purposes of grants, contracts, and assist-

ance under this section shall be—

(1) to stimulate collaborative activities by a diverse range

of experts in all aspects of biomass processing for the purpose

of conducting fundamental and innovation-targeted research

and technology development;

(2) to enhance creative and imaginative approaches toward

biomass processing that will serve to develop the next genera-

tion of advanced technologies making possible low cost and

sustainable biobased industrial products;

(3) to strengthen the intellectual resources of the United

States through the training and education of future scientists,

engineers, managers, and business leaders in the field of bio-

mass processing; and

(4) to promote integrated research partnerships among col-

leges, universities, national laboratories, Federal and State

research agencies, and the private sector as the best means

of overcoming technical challenges that span multiple research

and engineering disciplines and of gaining better leverage from

limited Federal research funds.

LIGIBLE

NTITIES

.—

Grants.

Contracts.

7 USC 7624 note.

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114 STAT. 434 PUBLIC LAW 106–224—JUNE 20, 2000

(1) I

N GENERAL

.—To be eligible for a grant, contract, or

assistance under this section, an applicant shall be—

(A) an institution of higher education;

(B) a national laboratory;

(D) a State research agency;

(E) a private sector entity;

(F) a nonprofit organization; or

(G) a consortium of two or more entities described

in subparagraphs (A) through (F).

(2) A

DMINISTRATION

.—After consultation with the Board,

the points of contact shall—

(A) publish annually one or more joint requests for

proposals for grants, contracts, and assistance under this

section;

(B) establish a priority in grants, contracts, and assist-

ance under this section for research that—

(i) demonstrates potential for significant advances

in biomass processing;

(ii) demonstrates potential to substantially further

scale-sensitive national objectives such as—

(I) sustainable resource supply;

(II) reduced greenhouse gas emissions;

(III) healthier rural economies; and

(IV) improved strategic security and trade bal-

ances; and

(iii) would improve knowledge of important bio-

mass processing systems that demonstrate potential

for commercial applications;

this section be awarded competitively, on the basis of merit,

after the establishment of procedures that provide for sci-

entific peer review by an independent panel of scientific

and technical peers; and

(D) give preference to applications that—

(i) involve a consortia of experts from multiple

institutions; and

(ii) encourage the integration of disciplines and

application of the best technical resources.

(d) U

SES OF

RANTS

, C

ONTRACTS

AND

SSISTANCE

.—A grant,

contract, or assistance under this section may be used to conduct—

(1) research on process technology for overcoming the recal-

citrance of biomass, including research on key mechanisms,

advanced technologies, and demonstration test beds for—

(A) feedstock pretreatment and hydrolysis of cellulose

and hemicellulose, including new technologies for—

(i) enhanced sugar yields;

(ii) lower overall chemical use;

(iii) less costly materials; and

(iv) cost reduction;

(B) development of novel organisms and other

approaches to substantially lower the cost of cellulase

enzymes and enzymatic hydrolysis, including dedicated cel-

lulase production and consolidated bioprocessing strategies;

and

overcoming the recalcitrance of cellulosic biomass;

Publication.

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114 STAT. 435PUBLIC LAW 106–224—JUNE 20, 2000

(2) research on technologies for diversifying the range of

products that can be efficiently and cost-competitively produced

from biomass, including research on—

(A) metabolic engineering of biological systems

(including the safe use of genetically modified crops) to

produce novel products, especially commodity products, or

to increase product selectivity and tolerance, with a

research priority for the development of biobased industrial

products that can compete in performance and cost with

fossil-based products;

(B) catalytic processing to convert intermediates of bio-

mass processing into products of interest;

recovery and purification;

(D) approaches other than metabolic engineering and

catalytic conversion of intermediates of biomass processing;

(E) advanced biomass gasification technologies,

including coproduction of power and heat as an integrated

component of biomass processing, with the possibility of

generating excess electricity for sale; and

(F) related research in advanced turbine and stationary

fuel cell technology for production of electricity from bio-

mass; and

(3) research aimed at ensuring the environmental perform-

ance and economic viability of biobased industrial products

and their raw material input of biomass when considered as

an integrated system, including research on—

(A) the analysis of, and strategies to enhance, the

environmental performance and sustainability of biobased

industrial products, including research on—

(i) accurate measurement and analysis of green-

house gas emissions, carbon sequestration, and carbon

cycling in relation to the life cycle of biobased industrial

products and feedstocks with respect to other alter-

natives;

(ii) evaluation of current and future biomass

resource availability;

(iii) development and analysis of land management

practices and alternative biomass cropping systems

that ensure the environmental performance and

sustainability of biomass production and harvesting;

(iv) the land, air, water, and biodiversity impacts

of large-scale biomass production, processing, and use

of biobased industrial products relative to other alter-

natives; and

(v) biomass gasification and combustion to produce

electricity;

(B) the analysis of, and strategies to enhance, the

economic viability of biobased industrial products, including

research on—

(i) the cost of the required process technology;

(ii) the impact of coproducts, including food, animal

feed, and fiber, on biobased industrial product price

and large-scale economic viability; and

(iii) interactions between an emergent biomass

refining industry and the petrochemical refining infra-

structure; and

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114 STAT. 436 PUBLIC LAW 106–224—JUNE 20, 2000

stock production with the interrelated goals of enhancing

the sustainability, increasing productivity, and decreasing

the cost of biomass processing, including research on—

(i) altering biomass to make biomass easier and

less expensive to process;

(ii) existing and new agricultural and energy crops

that provide a sustainable resource for conversion to

biobased industrial products while simultaneously

serving as a source for coproducts such as food, animal

feed, and fiber;

(iii) improved technologies for harvest, collection,

transport, storage, and handling of crop and residue

feedstocks; and

(iv) development of economically viable cropping

systems that improve the conservation and restoration

of marginal land; or

(4) any research and development in technologies or proc-

esses determined by the Secretary of Agriculture and the Sec-

retary of Energy, acting through their respective points of con-

tact and in consultation with the Board, to be consistent with

the purposes described in subsection (b) and the priority

described in subsection (c)(2)(B).

(e) T

ECHNOLOGY AND

NFORMATION

RANSFER TO

GRICULTURAL

SERS

.—

(1) I

N GENERAL

.—The Administrator of the Cooperative

State Research, Education, and Extension Service and the Chief

of the Natural Resources Conservation Service shall ensure

that applicable research results and technologies from the Ini-

tiative are adapted, made available, and disseminated through

their respective services, as appropriate.

(2) R

EPORT

.—Not later than 5 years after the date of the

enactment of this Act, the Administrator of the Cooperative

State Research, Education, and Extension Service and the Chief

of the Natural Resources Conservation Service shall submit

to the committees of Congress with jurisdiction over the Initia-

tive a report on the activities conducted by the services under

this subsection.

(f ) A

UTHORIZATION OF

PPROPRIATIONS

.—In addition to funds

appropriated for biomass research and development under the gen-

eral authority of the Secretary of Energy to conduct research and

development programs (which may also be used to carry out this

title), there are authorized to be appropriated to the Department

of Agriculture to carry out this title $49,000,000 for each of fiscal

years 2000 through 2005.

SEC. 308. ADMINISTRATIVE SUPPORT AND FUNDS.

(a) I

ENERAL

.—To the extent administrative support and

funds are not provided by other agencies under subsection (b),

the Secretary of Energy and the Secretary of Agriculture may

provide such administrative support and funds of the Department

of Energy and the Department of Agriculture to the Board and

the Advisory Committee as are necessary to enable the Board

and the Advisory Committee to carry out their duties under this

title.

(b) O

THER

GENCIES

.—The heads of the agencies referred to

in section 305(b)(3), and the other members appointed under section

7 USC 7624 note.

Deadline.

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114 STAT. 437PUBLIC LAW 106–224—JUNE 20, 2000

305(b)(4), may, and are encouraged to, provide administrative sup-

port and funds of their respective agencies to the Board and the

Advisory Committee.

IMITATION

.—Not more than 4 percent of the amount appro-

priated for each fiscal year under section 307(f ) may be used to

pay the administrative costs of carrying out this title.

SEC. 309. REPORTS.

(a) I

NITIAL

EPORT

.—Not later than 180 days after the date

of the enactment of this Act, the Secretary of Energy and the

Secretary of Agriculture shall jointly submit to Congress a report

that—

(1) identifies the points of contact, the members of the

Board, and the members of the Advisory Committee;

(2) describes the status of current biobased industrial

product research and development efforts in both the Federal

Government and private sector;

(3) includes a section prepared by the Board that estab-

lishes a set of criteria to assess the potential of biobased indus-

trial products, which shall include for both biomass production

and transformation into biobased industrial products—

(A) an energy accounting;

(B) an environmental impact assessment; and

(4) describes the research and development goals of the

Initiative, including how funds will be allocated in order to

accomplish those goals.

(b) A

NNUAL

EPORTS

.—For each fiscal year for which funds

are made available to carry out this title, the Secretary of Energy

and the Secretary of Agriculture shall jointly submit to Congress

a detailed report on—

(1) the status and progress of the Initiative, including

a report from the Advisory Committee on whether funds appro-

priated for the Initiative have been distributed and used in

a manner that—

(A) is consistent with the purposes described in section

307(b);

(B) uses the set of criteria established under subsection

(a)(3); and

been made by the Advisory Committee;

(2) the general status of cooperation and research and

development efforts carried out at each agency with respect

to biobased industrial products, including a report from the

Advisory Committee on whether the points of contact are

funding proposals that are selected under section 307(c)(2)(C);

and

(3) the plans of the Secretary of Energy and the Secretary

of Agriculture for addressing concerns raised in the report,

including concerns raised by the Advisory Committee.

SEC. 310. TERMINATION OF AUTHORITY.

The authority provided under this title shall terminate on

December 31, 2005.

7 USC 7624 note.

Deadline.

7 USC 7624 note.

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114 STAT. 438 PUBLIC LAW 106–224—JUNE 20, 2000

TITLE IV—PLANT PROTECTION ACT

SEC. 401. SHORT TITLE.

This title may be cited as the ‘‘Plant Protection Act’’.

SEC. 402. FINDINGS.

Congress finds that—

(1) the detection, control, eradication, suppression, preven-

tion, or retardation of the spread of plant pests or noxious

weeds is necessary for the protection of the agriculture, environ-

ment, and economy of the United States;

(2) biological control is often a desirable, low-risk means

of ridding crops and other plants of plant pests and noxious

weeds, and its use should be facilitated by the Department

of Agriculture, other Federal agencies, and States whenever

feasible;

(3) it is the responsibility of the Secretary to facilitate

exports, imports, and interstate commerce in agricultural prod-

ucts and other commodities that pose a risk of harboring plant

pests or noxious weeds in ways that will reduce, to the extent

practicable, as determined by the Secretary, the risk of dissemi-

nation of plant pests or noxious weeds;

(4) decisions affecting imports, exports, and interstate

movement of products regulated under this title shall be based

on sound science;

(5) the smooth movement of enterable plants, plant prod-

ucts, biological control organisms, or other articles into, out

of, or within the United States is vital to the United State’s

economy and should be facilitated to the extent possible;

(6) export markets could be severely impacted by the

introduction or spread of plant pests or noxious weeds into

or within the United States;

(7) the unregulated movement of plant pests, noxious

weeds, plants, certain biological control organisms, plant prod-

ucts, and articles capable of harboring plant pests or noxious

weeds could present an unacceptable risk of introducing or

spreading plant pests or noxious weeds;

(8) the existence on any premises in the United States

of a plant pest or noxious weed new to or not known to be

widely prevalent in or distributed within and throughout the

United States could constitute a threat to crops and other

plants or plant products of the United States and burden inter-

state commerce or foreign commerce; and

(9) all plant pests, noxious weeds, plants, plant products,

articles capable of harboring plant pests or noxious weeds regu-

lated under this title are in or affect interstate commerce or

foreign commerce.

SEC. 403. DEFINITIONS.

In this title:

(1) A

RTICLE

.—The term ‘‘article’’ means any material or

tangible object that could harbor plant pests or noxious weeds.

(2) B

IOLOGICAL CONTROL ORGANISM

.—The term ‘‘biological

control organism’’ means any enemy, antagonist, or competitor

used to control a plant pest or noxious weed.

7 USC 7702.

7 USC 7701.

7 USC 7701 note.

Plant Protection

Act.

Commerce and

trade.

Exports and

imports.

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114 STAT. 439PUBLIC LAW 106–224—JUNE 20, 2000

(3) E

NTER AND ENTRY

.—The terms ‘‘enter’’ and ‘‘entry’’

mean to move into, or the act of movement into, the commerce

of the United States.

(4) E

XPORT AND EXPORTATION

.—The terms ‘‘export’’ and

‘‘exportation’’ mean to move from, or the act of movement

from, the United States to any place outside the United States.

(5) I

MPORT AND IMPORTATION

.—The terms ‘‘import’’ and

‘‘importation’’ mean to move into, or the act of movement into,

the territorial limits of the United States.

(6) I

NTERSTATE

.—The term ‘‘interstate’’ means—

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

(B) within the District of Columbia, Guam, the Virgin

Islands of the United States, or any other territory or

possession of the United States.

(7) I

NTERSTATE COMMERCE

.—The term ‘‘interstate com-

merce’’ means trade, traffic, or other commerce—

(A) between a place in a State and a point in another

State, or between points within the same State but through

any place outside that State; or

(B) within the District of Columbia, Guam, the Virgin

Islands of the United States, or any other territory or

possession of the United States.

(8) M

EANS OF CONVEYANCE

.—The term ‘‘means of convey-

ance’’ means any personal property used for or intended for

use for the movement of any other personal property.

(9) M

OVE AND RELATED TERMS

.—The terms ‘‘move’’,

‘‘moving’’, and ‘‘movement’’ mean—

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

(B) to aid, abet, cause, or induce the carrying, entering,

importing, mailing, shipping, or transporting;

port;

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

transport;

(E) to release into the environment; or

(F) to allow any of the activities described in a pre-

ceding subparagraph.

(10) N

OXIOUS WEED

.—The term ‘‘noxious weed’’ means any

plant or plant product that can directly or indirectly injure

or cause damage to crops (including nursery stock or plant

products), livestock, poultry, or other interests of agriculture,

irrigation, navigation, the natural resources of the United

States, the public health, or the environment.

(11) P

ERMIT

.—The term ‘‘permit’’ means a written or oral

authorization, including by electronic methods, by the Secretary

to move plants, plant products, biological control organisms,

plant pests, noxious weeds, or articles under conditions pre-

scribed by the Secretary.

(12) P

ERSON

.—The term ‘‘person’’ means any individual,

partnership, corporation, association, joint venture, or other

legal entity.

(13) P

LANT

.—The term ‘‘plant’’ means any plant (including

any plant part) for or capable of propagation, including a tree,

a tissue culture, a plantlet culture, pollen, a shrub, a vine,

a cutting, a graft, a scion, a bud, a bulb, a root, and a seed.

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114 STAT. 440 PUBLIC LAW 106–224—JUNE 20, 2000

(14) P

LANT PEST

.—The term ‘‘plant pest’’ means any living

stage of any of the following that can directly or indirectly

injure, cause damage to, or cause disease in any plant or

plant product:

(A) A protozoan.

(B) A nonhuman animal.

(D) A bacterium.

(E) A fungus.

(F) A virus or viroid.

(G) An infectious agent or other pathogen.

(H) Any article similar to or allied with any of the

articles specified in the preceding subparagraphs.

(15) P

LANT PRODUCT

.—The term ‘‘plant product’’ means—

(A) any flower, fruit, vegetable, root, bulb, seed, or

other plant part that is not included in the definition

of plant; or

(B) any manufactured or processed plant or plant part.

(16) S

ECRETARY

.—The term ‘‘Secretary’’ means the Sec-

retary of Agriculture.

(17) S

TATE

.—The term ‘‘State’’ means any of the several

States of the United States, the Commonwealth of the Northern

Mariana Islands, the Commonwealth of Puerto Rico, the Dis-

trict of Columbia, Guam, the Virgin Islands of the United

States, or any other territory or possession of the United States.

(18) S

YSTEMS APPROACH

.—For the purposes of section

412(e), the term ‘‘systems approach’’ means a defined set of

phytosanitary procedures, at least two of which have an inde-

pendent effect in mitigating pest risk associated with the move-

ment of commodities.

(19) T

HIS TITLE

.—Except when used in this section, the

term ‘‘this title’’ includes any regulation or order issued by

the Secretary under the authority of this title.

(20) U

NITED STATES

.—The term ‘‘United States’’ means all

of the States.

Subtitle A—Plant Protection

SEC. 411. REGULATION OF MOVEMENT OF PLANT PESTS.

(a) P

ROHIBITION OF

NAUTHORIZED

OVEMENT OF

LANT

ESTS

.—Except as provided in subsection (c), no person shall import,

enter, export, or move in interstate commerce any plant pest, unless

the importation, entry, exportation, or movement is authorized

under general or specific permit and is in accordance with such

regulations as the Secretary may issue to prevent the introduction

of plant pests into the United States or the dissemination of plant

pests within the United States.

(b) R

EQUIREMENTS FOR

ROCESSES

.—The Secretary shall ensure

that the processes used in developing regulations under subsection

(a) governing consideration of import requests are based on sound

science and are transparent and accessible.

UTHORIZATION OF

OVEMENT OF

LANT

ESTS BY

EGULA

TION

.—

(1) E

XCEPTION TO PERMIT REQUIREMENT

.—The Secretary

may issue regulations to allow the importation, entry, expor-

tation, or movement in interstate commerce of specified plant

7 USC 7711.

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114 STAT. 441PUBLIC LAW 106–224—JUNE 20, 2000

pests without further restriction if the Secretary finds that

a permit under subsection (a) is not necessary.

(2) P

ETITION TO ADD OR REMOVE PLANT PESTS FROM REGULA

TION

.—Any person may petition the Secretary to add a plant

pest to, or remove a plant pest from, the regulations issued

by the Secretary under paragraph (1).

(3) R

ESPONSE TO PETITION BY THE SECRETARY

.—In the case

of a petition submitted under paragraph (2), the Secretary

shall act on the petition within a reasonable time and notify

the petitioner of the final action the Secretary takes on the

petition. The Secretary’s determination on the petition shall

be based on sound science.

(d) P

ROHIBITION OF

NAUTHORIZED

AILING OF

LANT

ESTS

.—

(1) I

N GENERAL

.—Any letter, parcel, box, or other package

containing any plant pest, whether sealed as letter-rate postal

matter or not, is nonmailable and shall not knowingly be con-

veyed in the mail or delivered from any post office or by

any mail carrier, unless the letter, parcel, box, or other package

is mailed in compliance with such regulations as the Secretary

may issue to prevent the dissemination of plant pests into

the United States or interstate.

(2) A

PPLICATION OF POSTAL LAWS AND REGULATIONS

.—

Nothing in this subsection authorizes any person to open any

mailed letter or other mailed sealed matter except in accordance

with the postal laws and regulations.

(e) R

EGULATIONS

.—Regulations issued by the Secretary to

implement subsections (a), (c), and (d) may include provisions

requiring that any plant pest imported, entered, to be exported,

moved in interstate commerce, mailed, or delivered from any post

office—

(1) be accompanied by a permit issued by the Secretary

prior to the importation, entry, exportation, movement in inter-

state commerce, mailing, or delivery of the plant pest;

(2) be accompanied by a certificate of inspection issued

(in a manner and form required by the Secretary) by appro-

priate officials of the country or State from which the plant

pest is to be moved;

(3) be raised under post-entry quarantine conditions by

or under the supervision of the Secretary for the purposes

of determining whether the plant pest—

(A) may be infested with other plant pests;

(B) may pose a significant risk of causing injury to,

damage to, or disease in any plant or plant product; or

(4) be subject to remedial measures the Secretary deter-

mines to be necessary to prevent the spread of plant pests.

SEC. 412. REGULATION OF MOVEMENT OF PLANTS, PLANT PRODUCTS,

BIOLOGICAL CONTROL ORGANISMS, NOXIOUS WEEDS,

ARTICLES, AND MEANS OF CONVEYANCE.

(a) I

ENERAL

.—The Secretary may prohibit or restrict the

importation, entry, exportation, or movement in interstate com-

merce of any plant, plant product, biological control organism, nox-

ious weed, article, or means of conveyance, if the Secretary deter-

mines that the prohibition or restriction is necessary to prevent

the introduction into the United States or the dissemination of

a plant pest or noxious weed within the United States.

7 USC 7712.

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114 STAT. 442 PUBLIC LAW 106–224—JUNE 20, 2000

(b) P

OLICY

.—The Secretary shall ensure that processes used

in developing regulations under this section governing consideration

of import requests are based on sound science and are transparent

and accessible.

EGULATIONS

.—The Secretary may issue regulations to

implement subsection (a), including regulations requiring that any

plant, plant product, biological control organism, noxious weed,

article, or means of conveyance imported, entered, to be exported,

or moved in interstate commerce—

(1) be accompanied by a permit issued by the Secretary

prior to the importation, entry, exportation, or movement in

interstate commerce;

(2) be accompanied by a certificate of inspection issued

(in a manner and form required by the Secretary) by appro-

priate officials of the country or State from which the plant,

plant product, biological control organism, noxious weed, article,

or means of conveyance is to be moved;

(3) be subject to remedial measures the Secretary deter-

mines to be necessary to prevent the spread of plant pests

or noxious weeds; and

(4) with respect to plants or biological control organisms,

be grown or handled under post-entry quarantine conditions

by or under the supervision of the Secretary for the purposes

of determining whether the plant or biological control organism

may be infested with plant pests or may be a plant pest

or noxious weed.

(d) N

OTICE

.—Not later than 1 year after the date of the enact-

ment of this Act, the Secretary shall publish for public comment

a notice describing the procedures and standards that govern the

consideration of import requests. The notice shall—

(1) specify how public input will be sought in advance

of and during the process of promulgating regulations necessi-

tating a risk assessment in order to ensure a fully transparent

and publicly accessible process; and

(2) include consideration of the following:

(A) Public announcement of import requests that will

necessitate a risk assessment.

(B) A process for assigning major/nonroutine or minor/

routine status to such requests based on current state

of supporting scientific information.

(D) Guidelines for seeking relevant scientific and eco-

nomic information in advance of initiating informal rule-

making.

(E) Guidelines for ensuring availability and trans-

parency of assumptions and uncertainties in the risk

assessment process including applicable risk mitigation

measures relied upon individually or as components of

a system of mitigative measures proposed consistent with

the purposes of this title.

(e) S

TUDY AND

EPORT ON

YSTEMS

PPROACH

.—

(1) S

TUDY

.—The Secretary shall conduct a study of the

role for and application of systems approaches designed to

guard against the introduction of plant pathogens into the

United States associated with proposals to import plants or

plant products into the United States.

Deadline.

Publication.

Public

information.

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114 STAT. 443PUBLIC LAW 106–224—JUNE 20, 2000

(2) P

ARTICIPATION BY SCIENTISTS

.—In conducting the study

the Secretary shall ensure participation by scientists from State

departments of agriculture, colleges and universities, the pri-

vate sector, and the Agricultural Research Service.

(3) R

EPORT

.—Not later than 2 years after the date of the

enactment of this Act, the Secretary shall submit a report

on the results of the study conducted under this section to

the Committee on Agriculture, Nutrition, and Forestry of the

Senate and the Committee on Agriculture of the House of

Representatives.

(f ) N

OXIOUS

EEDS

.—

(1) R

EGULATIONS

.—In the case of noxious weeds, the Sec-

retary may publish, by regulation, a list of noxious weeds

that are prohibited or restricted from entering the United States

or that are subject to restrictions on interstate movement within

the United States.

(2) P

ETITION TO ADD OR REMOVE PLANTS FROM REGULA

TION

.—Any person may petition the Secretary to add a plant

species to, or remove a plant species from, the regulations

issued by the Secretary under this subsection.

(3) D

UTIES OF THE SECRETARY

.—In the case of a petition

submitted under paragraph (2), the Secretary shall act on the

petition within a reasonable time and notify the petitioner

of the final action the Secretary takes on the petition. The

Secretary’s determination on the petition shall be based on

sound science.

(g) B

IOLOGICAL

ONTROL

RGANISMS

.—

(1) R

EGULATIONS

.—In the case of biological control orga-

nisms, the Secretary may publish, by regulation, a list of orga-

nisms whose movement in interstate commerce is not prohibited

or restricted. Any listing may take into account distinctions

between organisms such as indigenous, nonindigenous, newly

introduced, or commercially raised.

(2) P

ETITION TO ADD OR REMOVE BIOLOGICAL CONTROL ORGA

NISMS FROM THE REGULATIONS

.—Any person may petition the

Secretary to add a biological control organism to, or remove

a biological control organism from, the regulations issued by

the Secretary under this subsection.

(3) D

UTIES OF THE SECRETARY

.—In the case of a petition

submitted under paragraph (2), the Secretary shall act on the

petition within a reasonable time and notify the petitioner

of the final action the Secretary takes on the petition. The

Secretary’s determination on the petition shall be based on

sound science.

SEC. 413. NOTIFICATION AND HOLDING REQUIREMENTS UPON

ARRIVAL.

(a) D

UTY OF

ECRETARY OF THE

REASURY

.—

(1) N

OTIFICATION

.—The Secretary of the Treasury shall

promptly notify the Secretary of Agriculture of the arrival of

any plant, plant product, biological control organism, plant

pest, or noxious weed at a port of entry.

(2) H

OLDING

.—The Secretary of the Treasury shall hold

a plant, plant product, biological control organism, plant pest,

or noxious weed for which notification is made under paragraph

(1) at the port of entry until the plant, plant product, biological

control organism, plant pest, or noxious weed—

7 USC 7713.

Deadline.

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114 STAT. 444 PUBLIC LAW 106–224—JUNE 20, 2000

(A) is inspected and authorized for entry into or transit

movement through the United States; or

(B) is otherwise released by the Secretary of Agri-

culture.

(3) E

XCEPTIONS

.—Paragraphs (1) and (2) shall not apply

to any plant, plant product, biological control organism, plant

pest, or noxious weed that is imported from a country or region

of a country designated by the Secretary of Agriculture, pursu-

ant to regulations, as exempt from the requirements of such

paragraphs.

(b) D

UTY OF

ESPONSIBLE

ARTIES

.—

(1) N

OTIFICATION

.—The person responsible for any plant,

plant product, biological control organism, plant pest, noxious

weed, article, or means of conveyance required to have a permit

under section 411 or 412 shall provide the notification described

in paragraph (3) as soon as possible after the arrival of the

plant, plant product, biological control organism, plant pest,

noxious weed, article, or means of conveyance at a port of

entry and before the plant, plant product, biological control

organism, plant pest, noxious weed, article, or means of convey-

ance is moved from the port of entry.

(2) S

UBMISSION

.—The notification shall be provided to the

Secretary, or, at the Secretary’s direction, to the proper official

of the State to which the plant, plant product, biological control

organism, plant pest, noxious weed, article, or means of convey-

ance is destined, or both, as the Secretary may prescribe.

(3) E

LEMENTS OF NOTIFICATION

.—The notification shall con-

sist of the following:

(A) The name and address of the consignee.

(B) The nature and quantity of the plant, plant product,

biological control organism, plant pest, noxious weed,

article, or means of conveyance proposed to be moved.

product, biological control organism, plant pest, noxious

weed, article, or means of conveyance was grown, produced,

or located.

ROHIBITION ON

OVEMENT OF

TEMS

ITHOUT

UTHORIZA

TION

.—No person shall move from a port of entry or interstate

any imported plant, plant product, biological control organism, plant

pest, noxious weed, article, or means of conveyance unless the

imported plant, plant product, biological control organism, plant

pest, noxious weed, article, or means of conveyance—

(1) is inspected and authorized for entry into or transit

movement through the United States; or

(2) is otherwise released by the Secretary.

SEC. 414. GENERAL REMEDIAL MEASURES FOR NEW PLANT PESTS

AND NOXIOUS WEEDS.

(a) A

UTHORITY

OLD

, T

REAT

ESTROY

TEMS

.—If the

Secretary considers it necessary in order to prevent the dissemina-

tion of a plant pest or noxious weed that is new to or not known

to be widely prevalent or distributed within and throughout the

United States, the Secretary may hold, seize, quarantine, treat,

apply other remedial measures to, destroy, or otherwise dispose

of any plant, plant pest, noxious weed, biological control organism,

plant product, article, or means of conveyance that—

7 USC 7714.

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114 STAT. 445PUBLIC LAW 106–224—JUNE 20, 2000

(1) is moving into or through the United States or inter-

state, or has moved into or through the United States or inter-

state, and—

(A) the Secretary has reason to believe is a plant

pest or noxious weed or is infested with a plant pest or

noxious weed at the time of the movement; or

(B) is or has been otherwise in violation of this title;

(2) has not been maintained in compliance with a post-

entry quarantine requirement; or

(3) is the progeny of any plant, biological control organism,

plant product, plant pest, or noxious weed that is moving into

or through the United States or interstate, or has moved into

the United States or interstate, in violation of this title.

(b) A

UTHORITY

RDER AN

WNER

REAT OR

ESTROY

.—

(1) I

N GENERAL

.—The Secretary may order the owner of

any plant, biological control organism, plant product, plant

pest, noxious weed, article, or means of conveyance subject

to action under subsection (a), or the owner’s agent, to treat,

apply other remedial measures to, destroy, or otherwise dispose

of the plant, biological control organism, plant product, plant

pest, noxious weed, article, or means of conveyance, without

cost to the Federal Government and in the manner the Sec-

retary considers appropriate.

(2) F

AILURE TO COMPLY

.—If the owner or agent of the

owner fails to comply with the Secretary’s order under this

subsection, the Secretary may take an action authorized by

subsection (a) and recover from the owner or agent of the

owner the costs of any care, handling, application of remedial

measures, or disposal incurred by the Secretary in connection

with actions taken under subsection (a).

LASSIFICATION

YSTEM

.—

(1) D

EVELOPMENT REQUIRED

.—To facilitate control of nox-

ious weeds, the Secretary may develop a classification system

to describe the status and action levels for noxious weeds.

The classification system may include the current geographic

distribution, relative threat, and actions initiated to prevent

introduction or distribution.

(2) M

ANAGEMENT PLANS

.—In conjunction with the classi-

fication system, the Secretary may develop integrated manage-

ment plans for noxious weeds for the geographic region or

ecological range where the noxious weed is found in the United

States.

(d) A

PPLICATION OF

EAST

RASTIC

CTION

.—No plant,

biological control organism, plant product, plant pest, noxious weed,

article, or means of conveyance shall be destroyed, exported, or

returned to the shipping point of origin, or ordered to be destroyed,

exported, or returned to the shipping point of origin under this

section unless, in the opinion of the Secretary, there is no less

drastic action that is feasible and that would be adequate to prevent

the dissemination of any plant pest or noxious weed new to or

not known to be widely prevalent or distributed within and through-

out the United States.

SEC. 415. DECLARATION OF EXTRAORDINARY EMERGENCY AND

RESULTING AUTHORITIES.

(a) A

UTHORITY

ECLARE

.—If the Secretary determines that

an extraordinary emergency exists because of the presence of a

7 USC 7715.

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114 STAT. 446 PUBLIC LAW 106–224—JUNE 20, 2000

plant pest or noxious weed that is new to or not known to be

widely prevalent in or distributed within and throughout the United

States and that the presence of the plant pest or noxious weed

threatens plants or plant products of the United States, the Sec-

retary may—

(1) hold, seize, quarantine, treat, apply other remedial

measures to, destroy, or otherwise dispose of, any plant,

biological control organism, plant product, article, or means

of conveyance that the Secretary has reason to believe is

infested with the plant pest or noxious weed;

(2) quarantine, treat, or apply other remedial measures

to any premises, including any plants, biological control orga-

nisms, plant products, articles, or means of conveyance on

the premises, that the Secretary has reason to believe is

infested with the plant pest or noxious weed;

(3) quarantine any State or portion of a State in which

the Secretary finds the plant pest or noxious weed or any

plant, biological control organism, plant product, article, or

means of conveyance that the Secretary has reason to believe

is infested with the plant pest or noxious weed; and

(4) prohibit or restrict the movement within a State of

any plant, biological control organism, plant product, article,

or means of conveyance when the Secretary determines that

the prohibition or restriction is necessary to prevent the

dissemination of the plant pest or noxious weed or to eradicate

the plant pest or noxious weed.

(b) R

EQUIRED

INDING OF

MERGENCY

.—The Secretary may

take action under this section only upon finding, after review and

consultation with the Governor or other appropriate official of the

State affected, that the measures being taken by the State are

inadequate to eradicate the plant pest or noxious weed.

OTIFICATION

ROCEDURES

.—

(1) I

N GENERAL

.—Except as provided in paragraph (2),

before any action is taken in any State under this section,

the Secretary shall notify the Governor or other appropriate

official of the State affected, issue a public announcement,

and file for publication in the Federal Register a statement

of—

(A) the Secretary’s findings;

(B) the action the Secretary intends to take;

(D) where practicable, an estimate of the anticipated

duration of the extraordinary emergency.

(2) T

IME SENSITIVE ACTIONS

.—If it is not possible to file

for publication in the Federal Register prior to taking action,

the filing shall be made within a reasonable time, not to exceed

10 business days, after commencement of the action.