Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 112 CONGRESS, SECOND SESSION

E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 112 CONGRESS, SECOND SESSION

Vol. 158 WASHINGTON, MONDAY, JUNE 25, 2012 No. 96 House of Representatives The House met at 2 p.m. and was last day’s proceedings and announces CONGRESS OF THE UNITED STATES, called to order by the Speaker pro tem- to the House his approval thereof. HOUSE OF REPRESENTATIVES, pore (Mr. HARRIS). Pursuant to clause 1, rule I, the Jour- Washington, DC, June 22, 2012. nal stands approved. Hon. JOHN BOEHNER, f Speaker of the House, The Capitol, Washington, DESIGNATION OF THE SPEAKER DC. f DEAR SPEAKER BOEHNER: I am writing to PRO TEMPORE inform you that I am taking a leave of ab- The SPEAKER pro tempore laid be- PLEDGE OF ALLEGIANCE sence from the House Armed Services Com- mittee, effective immediately. fore the House the following commu- The SPEAKER pro tempore. The nication from the Speaker: Should you have any questions or con- Chair will lead the House in the Pledge cerns, please contact my Chief of Staff, Ms. WASHINGTON, DC, of Allegiance. Tara Oursler. June 25, 2012. The SPEAKER pro tempore led the Sincerely, I hereby appoint the Honorable ANDY HAR- Pledge of Allegiance as follows: C.A. DUTCH RUPPERSBERGER, RIS to act as Speaker pro tempore on this Member of Congress. day. I pledge allegiance to the Flag of the JOHN A. BOEHNER, United States of America, and to the Repub- The SPEAKER pro tempore. Without Speaker of the House of Representatives. lic for which it stands, one nation under God, objection, the resignation is accepted. indivisible, with liberty and justice for all. There was no objection. f f PRAYER f Reverend Aaron Damiani, Church of ADJOURNMENT the Resurrection, Washington, D.C., of- COMMUNICATION FROM THE The SPEAKER pro tempore. Without fered the following prayer: CLERK OF THE HOUSE objection, the House stands adjourned Almighty God, we thank You for es- The SPEAKER pro tempore laid be- until noon tomorrow for morning-hour tablishing the vocation of public serv- fore the House the following commu- debate. ice. On behalf of the men and women of nication from the Clerk of the House of There was no objection. this body, we ask for Your grace to Representatives: Accordingly (at 2 o’clock and 3 min- carry out their work without parti- OFFICE OF THE CLERK, utes p.m.), under its previous order, the ality. May they exercise their author- HOUSE OF REPRESENTATIVES, House adjourned until tomorrow, Tues- ity with wisdom, so that our country Washington, DC, June 21, 2012. day, June 26, 2012, at noon. may be governed in the way of peace. Hon. JOHN A. BOEHNER, Grant each Member of Congress a The Speaker, House of Representatives, Wash- f ington, DC. concern for a rightly ordered public EXECUTIVE COMMUNICATIONS, life, so that justice may roll down like DEAR MR. SPEAKER: Pursuant to the permission granted in Clause 2(h) of Rule II of ETC. waters, and righteousness like an ever- the Rules of the U.S. House of Representa- Under clause 2 of rule XIV, executive flowing stream. Strengthen the bonds tives, the Clerk received the following mes- communications were taken from the of trust among the elected officials sage from the Secretary of the Senate on Speaker’s table and referred as follows: gathered here, and the ones serving June 21, 2012 at 5:46 p.m.: throughout this great land. May hon- That the Senate passed H.R. 33. 6575. A letter from the Congressional Re- esty and goodwill define their common With best wishes, I am view Coordinator, Department of Agri- culture, transmitting the Department’s final labor. Sincerely, KAREN L. HAAS. rule — Horse Protection Act; Requiring O God, our help in ages past, do not Horse Industry Organizations To Assess and let our country be overcome by evil, Enforce Minimum Penalties for Violations f but let us overcome evil with good. In [Docket No.: APHIS-2011-0030] (RIN: 0579- the name of the Father and the Son AD43) received June 12, 2012, pursuant to 5 and the Holy Spirit, amen. RESIGNATION AS MEMBER OF U.S.C. 801(a)(1)(A); to the Committee on Ag- COMMITTEE ON ARMED SERVICES riculture. f 6576. A letter from the Acting Congres- The SPEAKER pro tempore laid be- THE JOURNAL sional Review Coordinator, Department of fore the House the following resigna- Agriculture, transmitting the Department’s The SPEAKER pro tempore. The tion as a member of the Committee on final rule — Asian Longhorned Beetle; Quar- Chair has examined the Journal of the Armed Services: antined Areas in Massachusetts, Ohio, and

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H3979

VerDate Mar 15 2010 01:33 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A25JN7.000 H25JNPT1 jbell on DSK7SPTVN1PROD with HOUSE H3980 CONGRESSIONAL RECORD — HOUSE June 25, 2012 New York [Docket No.: APHIS-2012-0003] re- 801(a)(1)(A); to the Committee on Energy and Protection Agency, transmitting the Agen- ceived June 4, 2012, pursuant to 5 U.S.C. Commerce. cy’s final rule — Revisions to the California 801(a)(1)(A); to the Committee on Agri- 6587. A letter from the Acting Assistant State Implementation Plan, South Coast Air culture. General Counsel for Regulatory Affairs, Con- Quality Management District [EPA-R09- 6577. A letter from the Director, Regu- sumer Product Safety Commission, trans- OAR-2012-0236; FRL-9670-8] received June 1, latory Management Division, Environmental mitting the Commission’s final rule — 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to the Protection Agency, transmitting the Agen- Standard for All-Terrain Vehicles [CPSC Committee on Energy and Commerce. cy’s final rule — Fenamidone; Pesticide Tol- Docket No.: CPSC-2011-0047] received May 31, 6598. A letter from the Director, Office of erance; Technical Amendment [EPA-HQ- 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to the Congressional Affairs, Nuclear Regulatory OPP-2006-0848; FRL-9351-5] received June 1, Committee on Energy and Commerce. Commission, transmitting the Commission’s 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to the 6588. A letter from the Secretaries, Depart- final rule — Monitoring the Effectiveness of Committee on Agriculture. ment of Agriculture and Department of Maintenance At Nuclear Power Plants Regu- 6578. A letter from the Director, Defense Health and Human Services, transmitting latory Guide 1.160 received May 29, 2012, pur- Procurement and Acquisition Policy, De- Report to Congress on Thefts, Losses, or Re- suant to 5 U.S.C. 801(a)(1)(A); to the Com- partment of Defense, transmitting the De- leases of Select Agents and Toxins For Cal- mittee on Energy and Commerce. partment’s final rule — Defense Federal Ac- endar Year 2011; to the Committee on Energy 6599. A letter from the Assistant Secretary, quisition Regulation Supplement; Title 41 and Commerce. Legislative Affairs, Department of State, 6589. A letter from the Secretary, Depart- Positive Law Codification-Further Imple- transmitting a six-month periodic report on ment of Energy, transmitting Management mentation (DFARS Case 2012-D003) (RIN: the national emergency with respect to the of Nuclear Construction Projects that Ex- 0750-AH55) received June 8, 2012, pursuant to proliferation of weapons of mass destruction ceed $1 Billion: Impact on Nuclear Safety 5 U.S.C. 801(a)(1)(A); to the Committee on that was declared in Executive Order 12938 of Culture; to the Committee on Energy and Armed Services. November 14, 1994, and continued by the 6579. A letter from the Director, Defense Commerce. President each year, most recently on No- Procurement and Acquisition Policy, De- 6590. A letter from the Associate General vember 9, 2011; to the Committee on Foreign partment of Defense, transmitting the De- Counsel for Legislation, and Regulation and Affairs. partment’s final rule — Defense Federal Ac- Energy Efficiency, Department of Energy, quisition Regulation Supplement; Contrac- transmitting the Department’s final rule — 6600. A letter from the Assistant Secretary, tors Performing Private Security Functions Energy Conservation Program: Energy Con- Legislative Affairs, Department of State, (DFARS Case 2011-D023) (RIN: 0750-AH28) reservation Standards for Residential Dish- transmitting the Department’s report on ceived July 6, 2012, pursuant to 5 U.S.C. washers [Docket Number: EERE-2011-BT- progress toward a negotiated solution of the 801(a)(1)(A); to the Committee on Armed STD-0060] (RIN: 1940-AC64) received May 30, Cyprus question covering the period Feb- Services. 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to the ruary 1, 2012 through March 31, 2012; to the 6580. A letter from the Director, Depart- Committee on Energy and Commerce. Committee on Foreign Affairs. ment of Defense, transmitting the Depart- 6591. A letter from the Secretary, Depart- 6601. A communication from the President ment’s twenty-second annual report for the ment of Health and Human Services, trans- of the United States, transmitting notifica- Pentagon Renovation and Construction Pro- mitting the second progress report of the im- tion that the national emergency declared gram Office (PENREN), pursuant to 10 U.S.C. plementation of Section 3507 of the Patient with respect to the Western Balkans is to 2674; to the Committee on Armed Services. Protection and Affordable Care Act of 2010; continue in effect beyond June 26, 2012, pur- 6581. A letter from the Under Secretary, to the Committee on Energy and Commerce. suant to 50 U.S.C. 1622(d); (H. Doc. No. 112— Department of Defense, transmitting certifi- 6592. A letter from the Secretary, Depart- 118); to the Committee on Foreign Affairs cation that the EP-3E Airborne Reconnais- ment of Health and Human Services, trans- and ordered to be printed. sance Integrated Electronic System and the mitting sixth quarterly report on Progress 6602. A letter from the Administrator, Special Projects Aircraft platforms meet all Toward Promulgating Final Regulations for Agency for International Development, current requirements; to the Committee on the Menu and Vending Machine Labeling transmitting the Agency’s semiannual re- Armed Services. Provisions of the Patient Protection and Af- port from the office of the Inspector General 6582. A letter from the Adjutant General, fordable Care Act of 2010; to the Committee for the period ending March 31, 2012, pursu- Veterans of Foreign Wars of the U.S., trans- on Energy and Commerce. ant to 5 U.S.C. app. (Insp. Gen. Act) section mitting proceedings of the 112th National 6593. A letter from the Secretary, Depart- 5(b); to the Committee on Oversight and Convention of the Veterans of Foreign Wars ment of Health and Human Services, trans- Government Reform. of the United States, held in San Antonio, mitting the annual financial report to Con- 6603. A letter from the Presiding Governor, Texas, August 28 — September 1, 2011, pursu- gress required by the Medical Device User Broadcasting Board of Governors, transmit- ant to 36 U.S.C. 118 and 44 U.S.C. 1332; (H. Fee and Modernization Act of 2002 ting the Board’s semiannual report from the Doc. No. 112—115); to the Committee on Vet- (MDUFMA), covering FY 2012; to the Com- office of the Inspector General for the period erans’ Affairs and ordered to be printed. mittee on Energy and Commerce. October 1, 2011 through March 31, 2012; to the 6583. A letter from the Chief Counsel, De- 6594. A letter from the Director, Regula- Committee on Oversight and Government partment of Homeland Security, transmit- tions Policy and Management Staff, Depart- Reform. ment of Health and Human Services, trans- ting the Department’s final rule — Final 6604. A letter from the Secretary, Depart- mitting the Department’s final rule — Flood Elevation Determinations (Fremont ment of Health and Human Services, trans- Amendments to Sterility Test Requirements County, Colorado et al.) [Docket ID: FEMA- mitting the semiannual report on the activi- for Biological Products; Correction [Docket 2012-0003] received May 29, 2012, pursuant to 5 ties of the Office of Inspector General for the No.: FDA-2011-N-0080] (RIN: 0910-AG16) re- U.S.C. 801(a)(1)(A); to the Committee on Fi- period ending March 31, 2012, pursuant to 5 ceived June 4, 2012, pursuant to 5 U.S.C. nancial Services. U.S.C. app. (Insp. Gen. Act), section 5(b); to 6584. A letter from the Chief Counsel, De- 801(a)(1)(A); to the Committee on Energy and the Committee on Oversight and Govern- partment of Homeland Security, transmit- Commerce. ment Reform. ting the Department’s final rule — Suspen- 6595. A letter from the Director, Regu- sion of Community Eligibility (Township of latory Management Division, Environmental 6605. A letter from the Director, Congres- Annville, Lebanon County, Pennsylvania, et Protection Agency, transmitting the Agen- sional Affairs, Federal Election Commission, al) [Docket ID: FEMA-2012-0003] [Internal cy’s final rule — Approval and Promulgation transmitting the Commission’s semiannual Agency Docket No.: FEMA-8231] received of Air Quality Implementation Plans; Illi- report from the office of the Inspector Gen- May 29, 2012, pursuant to 5 U.S.C. nois; Consumer Products and AIM Rules eral for the period October 1, 2011 through 801(a)(1)(A); to the Committee on Financial [EPA-R05-OAR-2010-0394; FRL-9663-1] re- March 31, 2012, pursuant to 5 U.S.C. app. Services. ceived June 1, 2012, pursuant to 5 U.S.C. (Insp. Gen. Act), section 5(b); to the Com- 6585. A letter from the Acting Assistant 801(a)(1)(A); to the Committee on Energy and mittee on Oversight and Government Re- General Counsel for Regulatory Affairs, Con- Commerce. form. sumer Product Safety Commission, trans- 6596. A letter from the Director, Regu- 6606. A letter from the Chairman, Postal mitting the Commission’s final rule — Safe- latory Management Division, Environmental Service, transmitting the Semiannual Re- ty Standard for Portable Bed Rails: Final Protection Agency, transmitting the Agen- port of the Inspector General for the period Rule [CPSC Docket No.: CPSC-2011-0019] re- cy’s final rule — Regional Haze: Revisions to of October 1,2011 through March 31, 2012, pur- ceived May 31, 2012, pursuant to 5 U.S.C. Provisions Governing Alternatives to suant to 5 U.S.C. app. (Insp. Gen. Act), sec- 801(a)(1)(A); to the Committee on Energy and Source-Specific Best Available Retrofit tion 5(b); to the Committee on Oversight and Commerce. Technology (BART) Determinations, Lim- Government Reform. 6586. A letter from the Acting Assistant ited SIP Disapprovals, and Federal Imple- 6607. A letter from the Sr. VP and Chief Fi- General Counsel for Regulatory Affairs, Con- mentation Plans [EPA-HQ-OAR-2011-0729; nancial Officer, Potomac Electric Power sumer Product Safety Commission, trans- FRL-9672-9] (RIN: 2060-AR05) received June 1, Company, transmitting the Balance Sheet of mitting the Commission’s final rule — Re- 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to the Potomac Electric Power Company as of De- quirements for Consumer Registration of Du- Committee on Energy and Commerce. cember 31, 2011, pursuant to D.C. Code Ann. rable Infant or Toddler Products received 6597. A letter from the Director, Regu- 34-1113 (2001); to the Committee on Oversight May 31, 2012, pursuant to 5 U.S.C. latory Management Division, Environmental and Government Reform.

VerDate Mar 15 2010 00:40 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\L25JN7.000 H25JNPT1 jbell on DSK7SPTVN1PROD with HOUSE June 25, 2012 CONGRESSIONAL RECORD — HOUSE H3981 6608. A letter from the Deputy Assistant [Following report was filed on June 22, 2012] Congress has the power to enact this legis- Secretary — Land and Minerals Manage- Mr. ISSA: Recommending that the House lation pursuant to the following: ment, Department of the Interior, transmit- of Representatives find Eric H. Holder, Jr., Article 1, Section 8, Clause 3 of the Con- ting the Department’s final rule — Produc- Attorney General, U.S. Department of Jus- stitution of the United States grants Con- tion Measurement Documents Incorporated tice, in Contempt of Congress for Refusal to gress the power to enact this law. by Reference; Correction [Docket ID: BSEE- Comply with a Subpoena Duly Issued by the 2012-0003] (RIN: 1014-AA01) received May 31, Committee on Oversight and Government f 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to the Reform (Rept. 112–546). Referred to the House Committee on Natural Resources. Calendar. ADDITIONAL SPONSORS 6609. A letter from the Clerk of the House [Submitted June 25, 2012] of Representatives, transmitting annual Mr. MILLER of Florida: Committee on Under clause 7 of rule XII, sponsors compilation of financial disclosure state- Veterans’ Affairs. Third Quarter Report of were added to public bills and resolu- ments of the members of the Office of Con- the Activities of the Committee on Veterans’ tions as follows: gressional Ethics, pursuant to Rule XXVI, Affairs During the 112th Congress (Rept. 112– clause 3, of the House Rules; (H. Doc. No. H.R. 178: Mr. GRIFFITH of Virginia, Mr. 547). Referred to the Committee of the Whole 112—116); to the Committee on Rules and or- COOPER, and Mrs. BLACKBURN. House on the state of the Union. dered to be printed. H.R. 181: Mr. ROONEY and Mr. TONKO. Mr. SMITH of Texas: Committee on the Ju- 6610. A letter from the Clerk of the House H.R. 186: Mrs. EMERSON. diciary. H.R. 4018. A bill to improve the Pub- of Representatives, transmitting the annual H.R. 1063: Mr. DENT and Mr. CROWLEY. lic Safety Officers’ Benefits Program; with compilation of personal financial disclosure H.R. 1325: Mr. MCDERMOTT. an amendment (Rept. 112–548). Referred to statements and amendments thereto filed H.R. 1332: Mrs. EMERSON. the Committee of the Whole House on the with the Clerk of the House of Representa- H.R. 1489: Mr. FALEOMAVAEGA. state of the Union. tives; (H. Doc. No. 112—117); to the Com- H.R. 2077: Mr. SENSENBRENNER and Mr. Mr. SMITH of Texas: Committee on the Ju- mittee on Rules and ordered to be printed. PETRI. diciary. H.R. 4223. A bill to amend title 18, 6611. A letter from the Director of Regula- H.R. 2267: Mrs. MCMORRIS RODGERS. United States Code, to prohibit theft of med- tion Policy and Management, Office of the H.R. 2775: Mr. CLEAVER. ical products, and for other purposes; with an General Counsel, Department of Veterans Af- H.R. 2861: Ms. SCHAKOWSKY. amendment (Rept. 112–549). Referred to the fairs, transmitting the Department’s final H.R. 2978: Mr. SCALISE. Committee of the Whole House on the state rule — Servicemembers’ Group Life Insur- H.R. 3352: Mr. LOEBSACK. of the Union. ance Traumatic Injury Protection Program H.R. 3861: Mr. CAMP, Mr. CLARKE of Michi- — Genitourinary Losses (RIN: 2900-AO20) re- f gan, and Mr. HUIZENGA of Michigan. H.R. 4018: Mr. HINCHEY. ceived May 31, 2012, pursuant to 5 U.S.C. PUBLIC BILLS AND RESOLUTIONS 801(a)(1)(A); to the Committee on Veterans’ H.R. 4066: Mr. WALDEN. Affairs. Under clause 2 of rule XII, public H.R. 4070: Mr. MICA. 6612. A letter from the Chief, Border Secu- bills and resolutions of the following H.R. 4124: Mr. HINCHEY. rity Regulations Branch, Department of titles were introduced and severally re- H.R. 4367: Mr. MCHENRY, Mr. SMITH of Ne- Homeland Security, transmitting the De- ferred, as follows: braska, Mr. ROYCE, Mr. PETRI, Mr. SHIMKUS, partment’s final rule — Extension of Import Ms. CHU, and Mr. SENSENBRENNER. By Mr. PEARCE (for himself, Mr. HEIN- H.R. 5707: Mr. BLUMENAUER. Restrictions Imposed on Archaeological and ´ RICH, and Mr. LUJAN): H.R. 5738: Mr. KILDEE. Ethnological Materials From Peru (RIN: H.R. 6017. A bill to authorize the Adminis- H.R. 5893: Mr. KING of New York. 1515-AD89) received June 4, 2012, pursuant to trator of the Federal Emergency Manage- H.R. 5942: Mrs. BLACKBURN. 5 U.S.C. 801(a)(1)(A); to the Committee on ment Agency to waive the 30-day waiting pe- H.R. 5953: Mr. GOSAR and Mr. ALEXANDER. Ways and Means. riod for flood insurance policies purchased 6613. A letter from the Assistant Secretary, H. Res. 623: Mr. DOLD, Mr. SCOTT of South for private properties affected by wildfire on Legislative Affairs, Department of State, Carolina, and Mr. TIPTON. Federal lands; to the Committee on Finan- transmitting a report concerning the exten- H. Res. 693: Mr. KUCINICH and Ms. cial Services. sion of waiver authority for Turkmenistan, WASSERMAN SCHULTZ. By Mr. CLEAVER (for himself, Mr. pursuant to Public Law 93-618, section CLAY, Mr. CARNAHAN, Mrs. HARTZLER, 402(d)(1) and 409; to the Committee on Ways f and Mr. LUETKEMEYER): and Means. H. Res. 701. A resolution recognizing the 6614. A letter from the Chief, Publications teams and players of the Negro Baseball AMENDMENTS and Regulations, Internal Revenue Service, Leagues for their achievements, dedication, transmitting the Service’s final rule — Rev- Under clause 8 of rule XVIII, pro- sacrifices, and contributions to both baseball enue Ruling: Discharge of Partnership Ex- and the Nation; to the Committee on Nat- posed amendments were submitted as cess Nonrecourse Indebtedness (Rev. Rul. ural Resources. follows: 2012-14) received May 29, 2012, pursuant to 5 By Mr. CLEAVER (for himself, Mr. H.R. 5972 U.S.C. 801(a)(1)(A); to the Committee on CLAY, Mr. CARNAHAN, Mrs. HARTZLER, Ways and Means. OFFERED BY: MR. NADLER and Mr. LUETKEMEYER): 6615. A letter from the Chief, Publications H. Res. 702. A resolution recognizing Major AMENDMENT NO. 1: Page 71, line 19, after and Regulations, Internal Revenue Service, League Baseball as an important part of the the dollar amount insert ‘‘(reduced by transmitting the Service’s final rule — Ex- cultural history of American society, cele- $2,000,000)’’. tension of Interim Guidance on Modification brating the 2012 Major League Baseball All- Page 72, line 20, after the dollar amount in- of Section 833 Treatment of Certain Health Star Game, and honoring Kansas City, Mis- sert ‘‘(reduced by $2,000,000)’’. Organizations [Notice 2012-37] received May souri, as the host city of the 83rd All-Star Page 88, line 23, after the dollar amount in- 29, 2012, pursuant to 5 U.S.C. 801(a)(1)(A); to Game; to the Committee on Oversight and sert ‘‘(increased by $2,000,000)’’. the Committee on Ways and Means. Government Reform. H.R. 5972 6616. A letter from the Secretary, Depart- OFFERED BY: MR. NADLER ment of Energy, transmitting Naval Petro- f leum Reserves Annual Report of Operations CONSTITUTIONAL AUTHORITY AMENDMENT NO. 2: Page 75, line 7, after the dollar amount, insert ‘‘(increased by for Fiscal Year 2011; jointly to the Commit- STATEMENT tees on Armed Services and Energy and Com- $257,000,000)’’. merce. Pursuant to clause 7 of rule XII of Page 75, line 14, after the dollar amount, insert ‘‘(increased by $257,000,000)’’. f the Rules of the House of Representa- tives, the following statements are sub- Page 104, line 12, after the dollar amount, REPORTS OF COMMITTEES ON mitted regarding the specific powers insert ‘‘(reduced by $71,500,000)’’. PUBLIC BILLS AND RESOLUTIONS Page 104, line 13, after the dollar amount, granted to Congress in the Constitu- insert ‘‘(reduced by $71,500,000)’’. Under clause 2 of rule XIII, reports of tion to enact the accompanying bill or Page 110, line 9, after the dollar amount, committees were delivered to the Clerk joint resolution. insert ‘‘(reduced by $135,500,000)’’. for printing and reference to the proper By Mr. PEARCE: Page 111, line 21, after the dollar amount, calendar, as follows: H.R. 6017. insert ‘‘(reduced by $50,000,000)’’.

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Vol. 158 WASHINGTON, MONDAY, JUNE 25, 2012 No. 96 Senate The Senate met at 2 p.m. and was COONS, a Senator from the State of Dela- gally, even if their only evidence is an called to order by the Honorable CHRIS- ware, to perform the duties of the Chair. accent or maybe the color of their TOPHER A. COONS, a Senator from the DANIEL K. INOUYE, skin. State of Delaware. President pro tempore. Allowing Arizona to keep its ‘‘papers Mr. COONS thereupon assumed the please’’ system of immigration checks PRAYER chair as Acting President pro tempore. invites racial profiling. It gives Ari- The Chaplain, Dr. Barry C. Black, of- f zona officials free rein to detain anyone they suspect of being in Arizona fered the following prayer: RECOGNITION OF THE MAJORITY without documentation. Let us pray. LEADER Eternal Spirit, we are overwhelmed As long as this provision remains, in- by Your majesty and grateful for Your The ACTING PRESIDENT pro tem- nocent American citizens are in danger indescribable love. But we are also pore. The majority leader is recog- of being detained by police unless they overwhelmed by our inadequacies, our nized. carry immigration papers with them at failures, and our sins. Lord, forgive us f all times. However, it is reassuring that the Court left the door open to for the misusing of the talents and SCHEDULE abilities You have given us. Help us to further court challenges of this un- cut through our preoccupation with Mr. REID. Mr. President, we are now sound provision. I say to the Presiding ourselves and become more fully in- considering the motion to proceed to Officer and to anyone within the sound volved in fulfilling Your purposes. the flood insurance bill postcloture. We of my voice, someone with my skin Today, set the hearts of our Senators will begin consideration of that bill color or yours, I do not think we are upon new paths as they acknowledge today. At 5:30, there will be a cloture going to be carrying our immigration that no true peace is possible outside of vote on the motion to concur in the papers with us everyplace we go. Your will. Guide them to produce cre- House message with respect to S. 3187, But if someone is in Arizona and ative legislation that will fulfill Your which is the Food and Drug Adminis- speaks with a little bit of an accent or will on Earth. tration bill. This is an extremely im- their skin color is brown, they better We pray in Your sacred Name. Amen. portant bill. Work has been completed have their papers with them. That is on that. We should be OK tonight and unfortunate. It is reassuring that the f have that as something we look to as Court, though, left the door open to PLEDGE OF ALLEGIANCE having accomplished this week. further court challenges of this very We also need to complete work on unsound provision. I am optimistic The Honorable CHRISTOPHER A. COONS student loans, flood insurance, and that once that portion of the law is im- led the Pledge of Allegiance, as follows: transportation this week. We have lots plemented, it will be discarded. I pledge allegiance to the Flag of the to do and a very short time to do it. Laws that legalize discrimination are United States of America, and to the Repub- lic for which it stands, one nation under God, f not compatible with laws and tradi- indivisible, with liberty and justice for all. tions of equal rights. So it is disturbing IMMIGRATION REFORM that Mitt Romney has called the un- f Mr. REID. Mr. President, today the constitutional Arizona law a model for APPOINTMENT OF ACTING Supreme Court correctly struck down immigration reform. Anyone who PRESIDENT PRO TEMPORE the vast majority of the mean-spirited thinks such an unconstitutional law Arizona law; that is, of course, the im- should serve as a model for national re- The PRESIDING OFFICER. The migration law. While I agree with the form is clearly outside the main- clerk will please read a communication Court’s decision to invalidate three stream. to the Senate from the President pro troubling provisions of Arizona’s The U.S. Supreme Court agreed with tempore (Mr. INOUYE). flawed law, there are actually four pro- that today. Today’s partial victory af- The legislative clerk read the fol- visions. Three were declared unconsti- firms the Obama administration was lowing letter: tutional, one was upheld. right to challenge this awful law, and U.S. SENATE, I am concerned about the section it is a reminder that the ultimate re- PRESIDENT PRO TEMPORE, they upheld. I am surprised they did, sponsibility for fixing our Nation’s bro- Washington, DC, June 25, 2012. To the Senate: but they did. The Justices upheld a ken immigration system rests with Under the provisions of rule I, paragraph 3, measure that allows police to conduct Congress. of the Standing Rules of the Senate, I hereby immigration checks on anyone they Instead of allowing 50 States to have appoint the Honorable CHRISTOPHER A. suspect of being in the country ille- 50 different enforcement mechanisms,

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S4433

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.000 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4434 CONGRESSIONAL RECORD — SENATE June 25, 2012 we need a national solution that con- RESERVATION OF LEADER TIME you spend, the richer you get.’’ That tinues to secure the border, punishes The PRESIDING OFFICER. Under doesn’t meet the commonsense test in unscrupulous employers that exploit the previous order, the leadership time the Midwest of America. It was the ra- immigrants and undercut American is reserved. tionale behind President Obama’s mas- wages, improves our dysfunctional sive $800 billion stimulus bill. The bill legal immigration system, and requires f looked suspiciously like a grab bag of the 11 million people who are undocu- FLOOD INSURANCE REFORM AND pent-up Democratic spending prior- mented to register with the govern- MODERNIZATION ACT—MOTION ities, but we were told that all of this ment, pay fines and taxes, learn TO PROCEED spending was necessary to keep unemployment below 8 percent. Of course, as English, work, stay out of trouble, and The ACTING PRESIDENT pro tem- we all know, unemployment soon go to the end of the line to legalize pore. Under the previous order, the soared well above 8 percent and has their status. Senate will resume consideration of Democrats are ready for this chal- never dipped below 8 percent now more the motion to proceed to S. 1940, which lenge. We have been willing to craft a than 3 years later. commonsense legal solution for a long the clerk will report by title. I would say to all of those across the time, one that is fair, tough, and prac- The legislative clerk read as follows: Atlantic in Europe calling for new tical. As I have indicated, we have been Motion to proceed to Calendar No. 250, S. stimulus spending: We tried it, and it ready to do this for years. We have 1940, a bill to amend the National Flood In- didn’t work. Not only didn’t it work tried on a few occasions. The problem surance Act of 1968, to restore the financial solvency of the flood insurance fund, and for but it made things worse. All of that now and has been, Republicans will not other purposes. government spending crowded out pri- vote for immigration reform—simple vate sector activity that would have Mr. REID. Mr. President, I suggest as that. We have tried. helped the recovery and saddled our the absence of a quorum. The first step would be to pass the economy and our children with even The ACTING PRESIDENT pro tem- DREAM Act, which would create a more debt. Conversely, reining in gov- pore. The clerk will call the roll. pathway to citizenship for children ernment spending will unleash the The legislative clerk proceeded to brought to the country through no power of free enterprise to create call the roll. fault of their own. If upstanding young wealth and grow our economy in ways Mr. GRASSLEY. I ask unanimous people stay out of trouble, work hard no government central planner can consent that the order for the quorum in high school, they should have a ever accomplish. chance to serve their country in the call be rescinded. Despite the clear results of the most military, go to college, and work to- The ACTING PRESIDENT pro tem- recent American experience with stim- ward citizenship. pore. Without objection, it is so or- ulus spending, liberal pundits are now Unfortunately, Mitt Romney said he dered. blaming Europe’s current economic would veto that, the DREAM Act. THE ECONOMY troubles on efforts to reduce govern- President Obama, on the other hand, Mr. GRASSLEY. Mr. President, since ment spending. They say that savage took decisive action in halting depor- the victory of the Socialist candidate cuts by pro-austerity governments in tation of the DREAMers. His directive for the President of France, opponents countries such as Britain, France, and will protect 800,000 young people and of fiscal responsibility have found re- Spain have actually damaged their focus law enforcement resources where newed vigor for their pro-spending ide- economies. So just how deep did these they belong, on deporting criminals. ology—more stimulus, as we might call countries of Europe actually cut? As we all know, though, this is not a it here in this country. There is inter- permanent solution. But President Spain increased spending after the re- est in this country also in more fiscal cession started, then implemented Obama’s decision to defer these depor- stimulus. tations was necessary precisely be- some modest cuts but is still spending The new French President talked cause Republicans have so far refused more than it did before the recession. about choosing growth over austerity. to work with Democrats on a solution. Britain and France have continued to Many liberal pundits and politicians on Congress must consider a long-term increase spending. So much for savage this side of the Atlantic have now resolution to protect the DREAMers spending cuts. It defies common sense, begun to echo this call. When you put and tackle comprehensive immigration but, as you know, in this town smaller it that way, it barely sounds like a reform that addresses all 11 million un- increases in spending than previously choice at all. The term ‘‘austerity’’ documented people living in this coun- planned can qualify somehow as a cut sounds so severe, but almost everybody try. in spending. However, to most Ameri- But that will take cooperation from agrees that economic growth is good. cans, cutting spending actually means my Republican colleagues. That has Just what is this austerity all about? spending less than you were the year not been forthcoming. This week, we In Europe, ‘‘austerity’’ is often used to before. The fact that there have been have a lot to accomplish, and getting it describe an attempt to reduce budget no serious spending cuts in these sup- all done before the July 4 holiday will deficits by reining in unsustainable posedly pro-austerity countries is also take cooperation. By Friday, the spending. In this country, we more enough to dismiss the accusations that Senate must pass flood insurance that often talk about fiscal responsibility. spending cuts are the cause of Europe’s will allow millions of Americans to For Europeans who have grown accus- current troubles. close on new homes or new properties. tomed to generous social benefits, even But there is another part of the story We must send to the President a bill to modest reforms to government pro- that is too often ignored: Governments ease drug shortages. That is the FDA grams are apparently cause to take to that talk about the need to reduce defi- bill. We need to protect 3 millions jobs the streets and demonstrate. But for cits but are too timid to enact nec- with an agreement on transportation the millions of Americans who still be- essary spending cuts invariably turn to legislation, and the deadline to stop lieve in limited government and who tax increases. For instance, since the student loan rates from doubling for 7 do not feel entitled to programs or ben- recession started, Britain has raised million students looms at the end of efits paid for by the earnings of others, the top marginal income tax rate as this week as well. there is nothing austere about govern- well as increased the capital gains tax, I am putting my colleagues on notice ment spending within its means. the national insurance tax, and the that the Senate will stay as long as we So then what about the other aspect value-added tax. Spain has enacted have to, into the weekend if necessary, of it—growth? The implication of the hikes in personal income tax and prop- to complete this substantial workload. supposed choice between growth and erty taxes and seems to be planning We hope there will be cooperation not austerity is that we must accept irre- even more taxes. only in this body but also in the House sponsible levels of spending in order to This year the Spanish Government is of Representatives. I alert everyone, we have that economic growth. Obviously looking to address its deficit with a have a lot to do—extremely important this is absurd. The politically conven- $19.2 billion package of spending reduc- pieces of legislation. We have to com- ient economic theory was summed up tions paired with another $16 billion plete them before we leave this week. by Margaret Thatcher as, ‘‘The more worth of tax increases. Of course, to us

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.012 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4435 here in the United States, that sounds problems. It is possible that the unique Unlike the ‘‘have your cake and eat a lot like what Democrats have been history of the Baltic countries makes it too’’ philosophy that says more gov- calling a balanced approach. And so it it easier for them to break the spend- ernment spending will somehow make is—just like giving a patient an equal ing addiction, but that doesn’t mean it us all richer, the real road to recovery dose of medicine and poison would be a can’t be done here. In fact, I will give requires real leadership and less spend- balanced approach. However, across you an example that is much closer to ing. Europe there has been a lot more em- home—Canada. Earlier in my comments I mentioned phasis on the poison of tax increases In the 1990s Canada was facing the a statement by Margaret Thatcher’s than on the medicine of spending cuts. same problem the United States is contempt for stimulus ideology. When In fact, while government spending now. It suffered a recession and had a she took office, Britain was in deep across the entire European Union fell looming debt crisis. The Canadian Gov- debt and known as ‘‘the sick man of by just 2.6 billion euros between 2010 ernment’s response was to dramati- Europe.’’ In fact, Britain had been and 2011, taxes rose by a staggering 235 cally cut spending. Again, I am not forced to go to the IMF for a bailout billion euros. talking about slowing the rate of and was regularly rocked by massive So while critics of austerity are growth but actual spending cuts. In strikes. In many ways it was the flatout wrong to blame the largely just 2 years, starting in 1995, total non- Greece of the 1970s. When Thatcher mythical spending cuts for Europe’s interest spending fell 10 percent. Cana- began making the difficult decisions economic troubles, they may have dian federal spending as a share of GDP necessary to rescue the British econ- stumbled onto something. To the ex- dropped from 22 percent in 1995 to 15 omy, many people, including some of tent that austerity really means big percent 11 years later. Canada’s federal her own party, pleaded for her to re- tax increases rather than serious debt was at 68 percent of GDP in 1995 turn to the big spending policies of pre- spending cuts, I think it identifies a and is down to just 34 percent today. vious British Governments. Her re- big part of Europe’s fiscal and eco- Now a lesson for America: Compare sponse is applicable to our country nomic problems. that to our national debt, which is today as it was to Britain back then. I These facts notwithstanding, if I more than 70 percent of GDP. Like Es- wish to quote Margaret Thatcher: couldn’t point to an example where tonia, the overwhelming emphasis in If spending money like water was the an- economic growth resulted from spend- Canada was on spending cuts rather swer to our country’s problems, we would ing restraint, my arguments would than tax increases. have no problems now. If ever a nation has ring hollow. I would sound like those Moreover, these cuts included struc- spent, spent, spent and spent again, ours has. radical intellectuals who still refuse to tural reforms. Canada’s Government Today that dream is over. All of that money has got us nowhere but it still has to come accept that Marxism has been totally fixed its version of Social Security, from somewhere. Those who urge us to relax discredited both morally and economi- which is the third rail of American pol- the squeeze, to spend yet more money indis- cally by claiming that it has never itics, as we say here. Unlike Social Se- criminately in the belief that it will help the truly been tried. However, what I am curity, the Canadian pension plan is unemployed and the small businessman, are talking about has been tried. There are solvent for the foreseeable future. not being kind or compassionate or caring. plenty of examples of where bold lead- What is really interesting is that these They are not the friends of the unemployed ership to dramatically rein in govern- reforms were not implemented by some or the small business. They are asking us to ment spending has resulted in eco- rightwing ideologues; these reforms do again the very thing that caused the problem in the first place. nomic growth. There is actually a were all implemented by the Canadian prime example right in Europe and in Liberal Party, which is a center-left I leave with this proposition. Can the euro area—Estonia. party like America’s Democrats. Congress learn from the experiences of In response to the 2008 economic cri- However, when President Bush sug- Estonia, Canada, and Britain’s Thatch- sis, Estonia’s free enterprise-oriented gested fixing Social Security upon his er? If we can, we can turn this U.S. government focused on real spending reelection, the issue was relentlessly economy around—and the economy and cuts, including major structural re- demagogued by Democrats in Congress. jobs are the issue of this Presidential forms. Estonia cut private sector More recently, when PAUL RYAN un- campaign season. wages, raised the pension age, and re- veiled a plan to save Medicare, rather I suggest the absence of a quorum. The ACTING PRESIDENT pro tem- formed health benefits. When it comes than present alternative ideas, liberal pore. The clerk will call the roll. to taxes, Estonia already had a low flat groups depicted him in political adver- The assistant legislative clerk pro- tax and didn’t raise rates. While there tisements pushing grandmother off a ceeded to call the roll. was an increase in the value-added tax, cliff. Ms. MIKULSKI. Mr. President, I ask the overwhelming emphasis was on If our Democrats had shown the same unanimous consent that the order for spending cuts. As a result, the Esto- leadership the Canadian Liberals did, the quorum call be rescinded. nian economy grew at 7.6 percent last we would be in a lot better economic The PRESIDING OFFICER. Without year. And it happens that Estonia is shape right now. Instead, what we get objection, it is so ordered. the only country in the eurozone with from the other side of the aisle are de- Ms. MIKULSKI. What is the pending an actual budget surplus, and the coun- mands for more stimulus spending and business? try has a national debt that is only 6 head-in-the-sand denial about the im- The ACTING PRESIDENT pro tem- percent of GDP. Can you imagine that, pending bankruptcy of Medicare and pore. The motion to proceed to S. 1940. a debt of only 6 percent of GDP? Social Security. Ms. MIKULSKI. Mr. President, I rise Moreover, Estonia had an especially There are a lot of other examples in support of voting for cloture on the deep hole to climb out of. The Estonian where low taxes and spending restraint bill and wish to speak for as much time economy was devastated by the global have led an economic recovery after a as I may consume. financial crisis. It contracted by 18 per- downturn. In fact, a 2009 paper by two The ACTING PRESIDENT pro tem- cent, which is more than Greece. Nev- Harvard economists, Alberto Alesina pore. Without objection, it is so or- ertheless, Estonia’s economy is well on and Silvia Ardagna, reviewed 107 exam- dered. The Senator is recognized. its way back to prerecession levels. ples of fiscal adjustments in industri- FOOD AND DRUG ADMINISTRATION SAFETY AND I should add that in response to the alized countries between 1970 and the INNOVATION ACT spending cuts, Estonians didn’t riot in year 2007. They found that, statis- Ms. MIKULSKI. Mr. President, we the streets. Instead, they reelected tically, tax cuts are more likely to in- have just exchanged some parliamen- their government. crease growth than spending. They also tary lingo to essentially say we are Also, while Estonia is the most im- found that spending cuts without tax going to vote shortly to see if we can pressive example, a similar story also increases are more likely to reduce pass the Food and Drug Administration holds true for the other Baltic coun- deficits and debt than increased taxes. Safety and Innovation Act, and do it tries of Latvia and Lithuania. Perhaps The historical record is clear. We know without a filibuster. I hope we can vote their unhappy experience of Soviet what path leads to economic growth for cloture—not to muzzle, not to have domination has made them extra skep- and prosperity. However, that is not an a gag rule, but so we can move expedi- tical of big government solutions to easy path to follow. tiously on this bill.

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.013 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4436 CONGRESSIONAL RECORD — SENATE June 25, 2012 Every single Member here should be In order to make sure we had the vide health care in a way that is safe proud of what we have accomplished in right perspective, we not only held ex- and efficacious. this FDA Safety and Innovation Act. cellent hearings in the Senate, but I Again, as I said, if we don’t act, thou- We have accomplished three major ob- went out around my own State. I am so sands of FDA people will be laid off. It jectives: No. 1, if the legislation is proud of my State. We are the home of is not about government. If those peo- passed—and it is a conference agree- life sciences. We have NIH there, which ple are laid off, it means the review ment between the House and the Sen- does incredible basic research. We ac- process for every single drug that is ate—we will be able to move pharma- tually have FDA, which reviews food now in the pipeline will come to a halt. ceuticals, biotech products, and med- safety and drug safety. At the same So we are hurting patients, thousands ical devices into clinical practice faster time, we are the home to a robust of people who need new drugs; new while maintaining our ethical stand- group of biotech companies. I wanted ways of helping them, whether it is for ards around public safety. to listen to those biotech companies. that dread C word—cancer—or diabe- No. 2, we can demonstrate we can When I went out, I said to them: Tell tes, which takes so much of our na- work together and we can govern. This me how your government is helping tional budget to manage chronic ill- is the result of the Senate working on you and tell me how your government ness. both sides of the aisle. Now, with the is impeding you. Tell me where you What about the breakthroughs on House, through the conference report, want your government to get out of the this epidemic of Alzheimer’s we have we show we can work between the Sen- way and where do you need a more or autism? We need all the help we can ate and the House. muscular government. Well, we heard develop. If America is going to con- In this time of prickly politics and quite a bit from them. The first thing tinue to be America the exceptional, political posturing when more gets said they told me is they need a Food and we have to do an exceptionally good than done, we can show we cannot only Drug Administration because when job of making sure we produce some of pass legislation but legislation that they are approved for public safety and the newest and most reliable drugs, makes a difference in people’s lives. We efficacy in the United States of Amer- biotech, and medical devices. will also show we can do it in a way ica, they can sell their products any- This is why I think we have good leg- that we will not only have a regulatory where in the world. It often means islation. Is it perfect? No. But is it framework but something in which the countries—small countries, countries pretty close to it for what business and businesses cooperated so we will have of modest means with limited GDP government and providers—the doctors regulation without strangulation. We that could never afford an FDA—know themselves—say we need? Absolutely. will have regulation that acts in the that if the United States of America I urge my colleagues today, when we interest of public safety but does not says it is OK for their citizens, any vote on this motion to proceed on clo- stifle, shackle, or impede good business other country in the world knows it is ture to have in mind—whether a col- practices. Wow. Isn’t this what we have OK for theirs. So it is very good to be league is a Democrat or a Republican— been talking about? able to export these products with con- that we don’t make the perfect the I am very proud of having been a fidence and reliability. This is fan- enemy of the good; rather, we think of member of the Health, Education, tastic, in their minds. all those people to whom we talk every Labor, and Pensions Committee that Second, they said they needed more day. We talk to them at townhall worked on this bill. I am also very help from FDA not only to expedite but meetings and out there with diners, proud of the fact that FDA is in my they wanted better communication. and they say: You know, my little boy State. In a nutshell, we are passing They also needed to be able to has leukemia; my mother has breast something called PDUFA and other incentivize development for those rare cancer; my dear father who stood up UFAs. PDUFA stands for the Prescrip- diseases we often hear about, where for me is facing the ravages of Alz- tion Drug User Fee Act. There will be there are small markets but big invest- heimer’s. We need breakthroughs. We others that we will talk about which ments to achieve in it. They outlined need help, then, for our private sector, relate to bio user fees and medical de- the fact that they needed to be viewed so it can go global and create jobs in vice user fees and generics. not in an adversarial way but a col- this country and well-being in other This bill was originally enacted in laborative way. Well, thanks to busi- 1992, and the reason for that was at countries around the world. We have to ness sitting down with FDA, and busi- be able to do it. that time there was an unduly long ness sitting down with Members of I am also pleased this bill combats wait for patients to have access to new Congress, we have been able to do ex- drug shortages, improves the safety of medicines and new medical devices. It actly that. We have improved effi- the drug supply chain, and makes per- often took close to 3 years to even re- ciency, predictability, the regulatory manent those special considerations view a drug application. So Congress environment, and, at the same time, that require that children’s needs are went to work with then-President Bill insisting on safety and efficacy. being met with both medical devices Clinton to say where the pharmacy This is going to be great for patients. and prescriptions, either in terms of could agree that, first of all, they Millions of Americans rely on drugs dosage or that a device actually fits would pay user fees to support FDA’s and biologics and on medical devices. If them. drug review program. It is a true pub- we are going to improve health care lic-private partnership. When we look and rein in the cost of health care, we I wanted to come to the floor to lay at the funding for FDA, the people who have to use drugs, biotech products, this out. I am very proud of FDA, and make pharmaceuticals, biotech, and and medical devices that improve lives I am very proud of the Congress, in- medical devices pay 60 percent of the and extend lives. cluding Senator HARKIN and Senator FDA budget. That is $712 million. The If we fail to authorize this legisla- ENZI, who pulled us together. We have remainder comes from Federal appro- tion, we are going to be in big trouble. the right legislative framework. Now priations—40 percent, which is $473 mil- How are we going to be in big trouble? let’s act and do it in a way we can all lion. So there is a partnership between Well, first of all, we will have to give be proud of. those businesses that profit—and we notice to FDA that there are going to Mr. President, I yield the floor, and I want them to do so, without profit- be layoffs. That means we would have note the absence of a quorum. eering—and, at the same time, govern- to send out notices in July telling 4,000 The ACTING PRESIDENT pro tem- ment pays its share. people: Look, we know you are the best pore. The clerk will call the roll. Since 1992, this legislation has been and the brightest and we want you to The assistant legislative clerk pro- an enormous success. More than 1,500 have integrity as well as regulatory ceeded to call the roll. new medicines have been approved, in- sensibility and a great deal of sci- Mr. HARKIN. Mr. President, I ask cluding treatments for cancer, infec- entific competence, but we couldn’t get unanimous consent that the order for tious disease, and cardiovascular dis- our act together so you are going to be the quorum call be rescinded. ease. It has decreased review times laid off. The PRESIDING OFFICER (Mr. from more than 3 years to 1 year and a Hello. We want these people out TESTER.) Without objection, it is so or- few months now. there, helping America be able to pro- dered.

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.019 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4437 FOOD AND DRUG ADMINISTRATION SAFETY AND decade alone, from 2001 to 2010, the use But we have had great cooperation INNOVATION ACT of generic drugs saved the U.S. health from all members of our committee on Mr. HARKIN. Mr. President, after care system more than $931 billion. both sides of the aisle. many months of bipartisan negotia- This agreement will ensure that we This legislation has benefited greatly tion, I have high hopes that the Senate continue to see those savings and that from all of the diverse input: from Sen- will vote very shortly to invoke cloture patients have access to cheaper drugs ators, as I said, on both sides of the on the House message to accompany when they need them. aisle, industry stakeholders, consumer the Food and Drug Administration This bill also authorizes a new groups, patient groups, and more re- Safety and Innovation Act of 2012. biosimilars user fee agreement which cently from our colleagues in the I am pleased to report it is the prod- will further spur innovation by the ge- House. The FDA Safety and Innovation uct of excellent bipartisan collabora- neric biologic industry. This chart Act is the result of concerted efforts to tion on the Health, Education, Labor, shows again some of the savings we define our common interests, and these and Pensions Committee, which I will get. The use of generic drugs has interests will directly benefit patients chair, and productive conversations saved over $931 billion over the last and the U.S. biomedical industry. with our colleagues in the House. The decade, $158 billion just in 2010 alone. As you can see from this chart, the House passed the FDA Safety and Inno- So we can see the better we are able to bill modernizes FDA’s authority in sev- vation Act unanimously last week. get generic drugs approved and in the eral critical ways: It authorizes key Now it is our turn to do our part. The pipeline—again, safely—the better off user fee agreements to ensure timely backbone of this legislation is the user we are all going to be and more money approval of medical products. It fee agreement that FDA has negotiated that not only will we save as individ- streamlines the device approval proc- with industry. uals but our entire health care system ess. It modernizes FDA’s global drug I might just add this bill passed this will save. That is almost $1 trillion supply chain authority, which is so im- Chamber about 3 weeks ago on a vote over the last 10 years. portant. It spurs innovation and of 96 to 1. So it has strong bipartisan These agreements again, as I said, incentivizes drug development for life- support. A sizeable part of FDA’s budg- are vital to FDA’s ability to do its job, threatening conditions. It reauthorizes et comes from user fees that industry vital to the stability of the medical and improves incentives for pediatric agrees to pay to allow FDA to more products industry, and most impor- trials. It helps prevent and mitigate quickly weekly review product applica- tantly to the patients who are the pri- drug shortages, and it increases FDA’s tions. We need to authorize FDA to im- mary beneficiaries of this longstanding accountability and transparency. So it plement those agreements if we want and valuable collaboration between addresses the broad array of critical to keep FDA running at full steam, FDA and the industry. issues that we face in today’s global which is critical to preserving jobs at After months of negotiation, FDA economy. both the agency and in the industry and the industry have crafted win-win It is imperative that our regulatory and to ensuring that FDA has the re- agreements they stand behind. They system keep pace with and adapt to sources to get safe medical products to are doing their job. Now it is time for technological and scientific advances patients quickly. us to do ours. and that patient protection remains I want to be clear. These agreements It is absolutely imperative that we strong in this era of dynamic change. affect all of us by helping to maintain authorize these user fee agreements be- Keeping pace with the ever-changing and create jobs in our home States. For fore they expire. If we do not, FDA will biomedical landscape is precisely the example, in my State of Iowa, these lose 60 percent of its drug center budg- aim of the FDA Safety and Innovation agreements will support our bur- et and 20 percent of its device center Act. This bill injects greater trans- geoning bioscience sector which saw budget. They will have to lay off nearly parency into the device approval proc- employment grow by 4.5 percent be- 2,000 employees. That is why it is so ess. It bolsters FDA’s ability to help tween 2007 and 2008. The implementa- critical for us to do this at this time. U.S. manufacturers create innovative tion of these agreements will continue To be sure, the expiration does not and safe devices, while also enhancing to foster biomedical innovation and job happen until late this summer. But the FDA’s ability to determine how the de- growth in all of our States. FDA has told us if they do not get this vices perform in the real world and The bill before us reauthorizes the reauthorization done, they will have to takes appropriate measures to protect prescription drug user fee agreement start sending out pink slips at the be- patients. and the medical device user fee agree- ginning of July. That is why it is so The bill also reauthorizes and im- ment, both commonly known as imperative for us to pass this legisla- proves incentives for pediatric trials. It PDUFA and MDUFA, which will con- tion this week and send it to the Presi- creates incentives for the development tinue and improve the agency’s ability dent for his signature, so they will not of new antibiotics and authorizes new to speed market access to prescription have to go through that process of drug and device provisions to help ex- drugs and medical devices while ensur- sending out pink slips. pedite the approval of important life- ing patient safety. But we can see how important this is. saving drugs and devices without sacri- I just might add that, again, upper- If this were to happen, it would have ficing safety. most, foremost, first is patient safety. devastating consequences for patients In addition, the bill also helps ad- That does not mean we cannot do whose health and lives depend on new dress the national crisis prescription things in a better manner, get products medical treatments. We cannot let that drug shortages. For the past several more readily available, speed up the happen. That is why for more than a years, hospitals across the country and process if we have the personnel and year I worked closely with my colin my State of Iowa have experienced the equipment to do so. That is why league, the ranking member of the an increasing number of shortages of this bill is so important. It provides HELP Committee, Senator ENZI, and life-sustaining prescription drugs. that type of support so we can hire other members of the HELP Com- These shortages directly threaten the more people to make sure we get these mittee. Our aim has been to ensure public health by denying patients ac- products to patients quickly, but to that in addition to the user fee agree- cess to medications that are indispen- make sure they are safe. ments, the other provisions in this leg- sable to their care. This bill requires The bill also authorizes a new generic islation are also the product of con- all manufacturers of certain drugs to drug user fee agreement which is ex- sensus bipartisan policymaking. notify FDA if they expect a manufac- pected to slash review time to one- We have used bipartisan working turing disruption that could lead to a third of current levels, from 30 months groups and an open, transparent proc- shortage because if FDA is aware of a to 10 months, drastically improving the ess to ensure that we had input from potential shortage early, then the speed with which generic products are our members and the stakeholder com- agency can work with manufacturers made available to patients. The new munity at large throughout negotia- and providers to find other ways to get generic user fee agreement will gen- tions on the other titles of this bill. patients the drugs they need. This bill erate significant savings for patients This is quite remarkable. We do not see also addresses drug shortages by ex- and our health care system. In the last much of it in this Congress these days. plicitly allowing FDA to expedite drug

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.021 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4438 CONGRESSIONAL RECORD — SENATE June 25, 2012 establishment inspections and applica- new therapies for pediatric rare dis- With that, I yield the floor. tion reviews when needed to help pre- eases. The PRESIDING OFFICER. The Sen- vent or mitigate a shortage. It estab- Next, it helps make devices for rare ator from Utah. lishes an FDA drug shortage task force diseases more available by modernizing INVOKING THE LEAHY-THURMOND RULE to develop a strategic plan to address provisions relating to custom devices Mr. LEE. Mr. President, I rise today drug shortages and to improve commu- and making it easier for companies to to express my support for the minority nication and outreach to stakeholders make profits on devices for rare dis- leader’s decision to invoke the long- preparing for drug shortages. ease. standing Senate tradition, known as Another significant advance in the Lastly, it reforms the conflict of in- the Leahy-Thurmond rule. Pursuant to bill is the much needed modernization terest rules for advisory committees to this tradition and precedent, the Sen- of the FDA’s authority to ensure the make it easier for the FDA to fill pan- ate will cease confirming nominees to safety of drug products coming into the els, which will have particular impact the Federal courts of appeals until United States from abroad. This bill, regarding rare diseases because those after the Presidential election in No- No. 1, allows FDA to prioritize inspec- panels are sometimes very hard to fill. vember. Many of my colleagues from tions of both domestic and foreign I am very proud of the advances this the other side of the aisle have pre- firms based on the risk they present to legislation represents for patients with viously affirmed the propriety of this patient safety. It requires importers to orphan and rare diseases. rule and enforced its standard. For ex- demonstrate that certain high-risk Not only does the bill support the ample, in the last year of the Bush ad- drugs are safe and compliant before biomedical industry and help patients ministration, the majority leader they can be imported into the United get the medical products they need, it noted that ‘‘in a Presidential election States. It requires manufacturer ac- also reduces the deficit. According to year, it is always very tough for countability and oversight of the qual- the nonpartisan Congressional Budget judges. That is the way it has been for ity and compliance of their drug pro- Office, this legislation will reduce the a long time, and that is why we have ducers and suppliers. It enhances pen- budget deficit by more than $311 mil- the Thurmond rule.’’ The chairman of the Judiciary Com- alties for adulterating and counter- lion in the next decade. So what we mittee, who has cited the Thurmond feiting drugs. It allows FDA to detain have is not only good policy, but it is fiscally responsible by contributing to rule more frequently than any other noncompliant drugs in U.S. commerce Senator, has likewise stated that ‘‘in a to prevent them from reaching pa- deficit reduction. As I have said, well over a year of Presidential election year, after tients. It permits FDA to destroy cer- Spring, no judges go through except by tain illegal drugs at the border instead diligent, bipartisan work has gone into the legislation before us today. Neither the consent of the Republican and of releasing them back into commerce. Democratic leaders.’’ It clarifies FDA’s authority to address Democrats nor Republicans got everything they wanted in this bill. We Statements from several of my criminal conduct that occurs abroad Democratic colleagues likewise con- sought out consensus measures. Where and threatens the safety of U.S. confirm that it is proper to invoke the we could not achieve consensus, we did sumers. Leahy-Thurmond rule at this point in a not allow our differences to distract us An important point to remember Presidential election year. In 2008, for from the critically important goal of about the importance of these safety example, one of my colleagues on the producing a bill everyone could sup- provisions is that weaknesses in our Judiciary Committee argued that for port. As a result, this is a true bipar- pharmaceutical supply chain not only Federal appeals court nominees, once tisan bill, and it is broadly supported affect the health of American patients, ‘‘it comes to June . . . generally every- by the patient groups and industry. In they also affect the health of American thing stops in an election year.’’ In- fact, it has wide support from medical businesses. U.S. companies that source deed, on June 12 of that same year, an- and manufacture drugs in this country associations and also from consumer other Judiciary Committee colleague should not be placed at a competitive groups and manufacturers throughout stated that the Senate was already disadvantage by foreign firms that op- the entire country—a broad base of ‘‘way past the time of the Thurmond erate with less oversight and sell sub- support. In fact, it is unique because it rule.’’ standard ingredients into this country has the full support of manufacturers, History further confirms the pro- at reduced prices. This bill will help the pharmaceutical industry, the de- priety of invoking the Leahy-Thur- ensure that businesses operate on a vice manufacturers, the FDA itself, mond rule at this time. It is extremely level playing field by holding foreign and patients groups—people concerned rare for the Senate to confirm an ap- actors to the same high standards as about patient safety, cost, and avail- peals court nominee after June of a those in the United States. ability of drugs and devices. So it has Presidential election year. In fact, it The last policy provision I will high- a broad base of support. has happened only once in almost two light is a mix of device and drug au- The FDA Safety and Innovation Act decades, when in 2000 the Republican- thorities that together can fairly be de- before us, which we will be voting on in controlled Senate confirmed one of scribed as the most significant advance a little while, authorizes the important President Clinton’s nominees. It is sim- for patients of orphan and rare diseases FDA user fee agreements, and it mod- ply not true, as comments from some since the Orphan Drug Act was passed ernizes our regulatory system to en- of my colleagues have implied, that in nearly 30 years ago. sure safety and to foster innovation in recent Presidential election years we In addition to the significant re- the medical product industry. Our bi- have confirmed appellate court nomi- sources that will be devoted to rare dis- partisan work has produced an excel- nees in July, August, or September. eases under the prescription drug user lent bill. We cannot allow unrelated Moreover, this year we have already fee agreement itself, this bill, No. 1, ex- partisan disagreements or Presi- confirmed five of President Obama’s pands the accelerated approval path- dential-election-year politics to inter- Federal appeals court nominees. This, way to therapies for rare and very rare fere or keep us from completing our incidentally, is the same number of ap- diseases, and it instructs FDA to weigh job. peals court nominees the Senate con- the rarity of a disease as a factor in its I will say it again. We must pass this firmed in 2008, the most recent Presi- approval process. vital legislation now. It is critically dential election year on record. In 2004 Next, it directs resources to prom- important to the agency, to the indus- the Senate confirmed only four such ising therapies for unmet medical try and, most importantly, to patients nominees. Indeed, dating back over 100 needs, which will receive the new that we get this done. Let’s come to- years, from President William Howard ‘‘breakthrough’’ designation. gether, Democrats and Republicans, to Taft to President Obama, the Senate Next, it requires FDA to consult with pass this legislation. Let’s have a re- has confirmed an average of just four outside experts on rare diseases. sounding vote on cloture. Hopefully we appeals court nominees during Presi- Next, it focuses on pediatric rare dis- won’t have to use the 30 hours and we dential election years. This year we eases by requiring a strategic plan re- can get to passage of the bill very rap- have already exceeded the historical garding pediatric rare diseases and cre- idly so that we can get it down to the average and confirmed five of Presi- ating a pilot program to incentivize President for his signature. dent Obama’s appeals court nominees.

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.022 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4439 There is no reason to depart further happen when the President violates the including conservative Justices An- from the historical norm and confirm Constitution’s separation of powers thony Kennedy and John Roberts— additional nominees. and tramples on the Senate’s rightful agreed with the Obama administration The suggestion by some that applica- prerogatives in the advise and consent that a State cannot set up its own im- tion of the Leahy-Thurmond rule some- process. On January 4, 2012, at a time migration enforcement system. how affects court vacancies deemed when the Senate was conducting brief As a result, the Supreme Court ‘‘judicial emergencies’’ is false, and sessions approximately every 72 hours, struck down several parts of the Ari- recklessly so. Of the four judicial emer- President Obama nonetheless bypassed zona law, including the provision that gencies on the Federal court of appeals, the Senate and unilaterally appointed would have made it a crime in Arizona President Obama has nominated only four significant executive branch nomi- to be an undocumented immigrant and one individual, and because that nominees. By asserting the power to make the provision that would have required nation was so recent, even absent the recess appointments, even when the legal immigrants to carry documents Leahy-Thurmond rule, that nominee Senate—according to its own rules— proving their legal status at all times. would not be scheduled for a vote any- was not in recess, the President simply The Supreme Court is right. States time soon. ignored the Senate’s legitimate condo not have the right, under the Con- I also remind my colleagues that stitutional right to advise and consent stitution, to enact immigration laws Democrats enforced the Leahy-Thur- to nominees made by the President. that contradict Federal law. Many of mond rule in June 2008, during a time President Obama’s unconstitutional my colleagues on the other side of the when there were twice as many judicial appointments cut to the very heart of aisle strongly criticized the Obama ad- emergencies in the circuit courts as our Constitution’s separation of powers ministration for even challenging the there are right now. Likewise, the and the institutional prerogatives that Arizona immigration law. There was overall vacancy rate on our circuit rightfully belong right here, in this even an amendment offered to try to courts was much higher in June 2004 body. Accordingly, since the time of block the Justice Department from when President Bush was in the final those appointments, I have sought to pursuing the litigation brought to the year of his term. Yet Democrats did protect the Senate’s interests by op- Supreme Court. Fortunately, the vast not hesitate to block several qualified posing President Obama’s judicial majority of Democrats, joined by two appellate court nominees in the nominees. I have made clear I would do Republicans—Senators Johanns and months leading up to the 2004 Presi- the same were a Republican President Voinovich—blocked that amendment. dential election. to make similarly unconstitutional ap- Now the Supreme Court—including Enforcement of the Leahy-Thurmond pointments under the recess appoint- Chief Justice Roberts and Justice Ken- rule does not currently apply to dis- ments clause. nedy—has sided with the Obama ad- trict court nominees. This year the As the chairman of the Senate Judi- ministration in holding the vast major- Senate has already confirmed 23 of ciary Committee noted at a recent Ju- ity of the Arizona law unconstitu- President Obama’s district court nomi- diciary Committee hearing, I have tional. nees—many more than were confirmed stated my concern with President I am troubled the Supreme Court during comparable years during the Obama’s unconstitutional recess ap- upheld one of the provisions in that President Bush and Clinton Presi- pointments very clearly, but I have law in Arizona—section 2(B)—which re- dencies. And we will continue to con- also been, in his words, extremely requires Arizona police officers to check firm more qualified nominees. Applica- sponsible in my opposition and have the immigration status of suspected tion of the Leahy-Thurmond rule, be- not hindered the work of the Senate. In undocumented immigrants. But it is ginning now, will thus not implicate light of President Obama’s unconstitu- important to understand the Court’s any district court judicial emergencies. tional appointments, it is all the more decision on that section is a narrow The urgency for such vacancies lies proper we invoke the Leahy-Thurmond one. The only question for the Court not in the Senate, which to this day rule now. was whether that section—2(B)—was has acted responsibly on nominees, but I agree with the ranking member of preempted by Federal immigration with President Obama, who to this day the Senate Judiciary Committee that law. The Court said it is open to future has failed to nominate individuals for we should have invoked that rule back challenges once the law goes into ef- many of these seats. in January, at the time of the uncon- There are, I add, other good reasons stitutional appointments. By enforcing fect, and this provision may still be in addition to tradition and historical the Leahy-Thurmond rule now, we will held unconstitutional, as the other pro- precedent to enforce the Leahy-Thur- demonstrate for the historical record visions in the Arizona law. mond rule now rather than waiting the Senate did not acquiesce in Presi- According to law enforcement ex- longer to do so. Doing so now prevents dent Obama’s unconstitutional recess perts, section 2(B) is likely to encour- a particular President from packing appointments and, instead, took action age profiling, which would violate the the courts at the end of his term by ap- to protect the Senate’s institutional Equal Protection Clause of the 14th pointing influential, life-tenured appel- prerogatives. When we have done so, I amendment to the Constitution. Spe- late court judges whose service will will again be in a position to vote in cifically, section 2(B) requires police span numerous other Presidential ad- favor of qualified consensus District officers to check the immigration sta- ministrations. Court nominees. tus of any individual with whom they The Leahy-Thurmond rule also en- But I will always remain vigilant in have lawful contact if they have ‘‘rea- sures that Presidential politics during seeking to protect the Senate against sonable suspicion’’ the person is an unan election season will not overshadow unconstitutional encroachment by the documented immigrant. or interfere with the Senate’s advice executive branch. As Members of this What is the basis for a reasonable and consent role on such judicial nomi- body, we have an institutional respon- suspicion the person they pull over is, nees. sibility to safeguard the Senate’s es- in fact, an undocumented immigrant? The last point bears special empha- sential advise and consent role and to The guidance on the law issued in the sis. The Constitution assigns to the confirm only those nominees who are State of Arizona says police officers Senate the right and the duty to advise properly qualified to serve in the posi- should consider things such as how a and consent to the President’s judicial tions for which they have been right- person is dressed or their ability to and executive branch nominees. It is fully nominated. communicate in English. essential for the Constitution’s separa- I yield the floor. Earlier this year, I held a hearing on tion of powers that the Senate protect The PRESIDING OFFICER. The Sen- racial profiling in the Judiciary’s Sub- its necessary and legitimate role in the ator from Illinois. committee on the Constitution, Civil nominations process against encroach- ARIZONA IMMIGRATION DECISION Rights and Human Rights. It was the ment by the executive branch of gov- Mr. DURBIN. Mr. President, today, first hearing on racial profiling since ernment. the U.S. Supreme Court announced its before 9/11. One of the witnesses at my Earlier this year, we witnessed a decision on S.B. 1070—the controversial hearing was Ron Davis. He is the chief troubling demonstration of what can Arizona immigration law. The Court— of police in East Palo Alto, CA, and

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.023 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4440 CONGRESSIONAL RECORD — SENATE June 25, 2012 Chief Davis, along with 16 other law en- I see it differently and so do many President Obama understands this. forcement officials and the Major Cit- others, including GEN Colin Powell That is why he challenged the Arizona ies Chiefs of Police Association, filed a and former Defense Secretary Robert law, taking the case to the Supreme brief in the Arizona case. In their brief, Gates. They support the DREAM Act Court. That is why earlier this month I the police chiefs say: because it would make America a saluted the President for announcing The statutory standard of ‘‘reasonable sus- stronger country by giving these tal- his administration will no longer de- picion’’ of unlawful presence in the United ented immigrants the chance to serve port people, such as Angelica Her- States will as a practical matter produce a in the military and contribute to the nandez, who would be eligible for the focus on minorities, and specifically Latinos. future of America. DREAM Act. I strongly support Presi- The best way to understand the prob- Two former Arizona attorneys gen- dent Obama’s courage and his decision. eral, joined by 42 other former State lems with the Arizona immigration law It is one of the most historic, humani- attorneys general, filed an amicus brief and the need for the DREAM Act and tarian moments of our time. His deci- in the Arizona case, and they said ‘‘ap- comprehensive immigration law is to sion will give these young immigrants plication of the law requires racial hear the stories of some of the immi- profiling.’’ I agree with these law en- grant students who would be eligible the chance to finally come out of the forcement experts. I am confident sec- for the DREAM Act. They call them- shadows and be part of the only coun- tion 2(B) will eventually be struck selves DREAMers. Almost every week try they have ever called home. It was down as the other provisions of the Ar- in the session I come to the floor of the the right thing to do. izona law were. Senate to tell the story of one of these These students didn’t make the deci- The Arizona law is the wrong ap- young people. Over the years I have sion to come to this country. Angelica proach for America. It is amazing to told stories of several DREAMers from was brought here at the age of 9, and it me how this Nation of immigrants, in the State of Arizona. Under the Ari- is not the American way to punish which we are all part of the family, has zona law, these young people would be children for the wrongdoing of their struggled for so long to deal with the targets for prosecution and incarcer- parents. President Obama’s new depor- whole issue of immigration. I think it ation. Under the DREAM Act, they tation policy will make America better is wrong to treat people as criminals would be future citizens who could by giving these talented immigrants make America and Arizona stronger. simply because of their immigration the chance to contribute. status, and it is not right to make Today, I wish to introduce one of criminals of people who literally go to them from Arizona. Her name is Angel- Studies have found DREAM Act stu- work every day, cooking our food, ica Hernandez. She was brought to dents will literally boost the American cleaning our rooms, and caring for our Phoenix, AZ, when she was 9 years old. economy during their working lives. children in day care centers or caring She started school in the fourth grade, This policy is also clearly legal. for our parents and grandparents in and by the time she reached the sixth Throughout our history, the govern- nursing homes. grade, Angelica no longer took English ment has decided who to prosecute and Here is the reality: Treating immi- as a second language. She was pro- who not to prosecute based on law en- grants as criminals will not help com- ficient in the language of English. forcement priorities and availability bat illegal immigration. Law enforce- At Carl Hayden High School in Phoe- resources. Past administrations of both ment doesn’t have the time or the re- nix, AZ, Angelica served in Junior political parties have used their au- sources to prosecute and incarcerate ROTC and was president of the Na- thority to stop deportation of low-pri- every undocumented immigrant among tional Honor Society. She became a ority cases. The courts have recognized the 10 million or 11 million in this dedicated member of the school’s ro- that. country. Making undocumented immi- botics club, where she found her true grants into criminals simply drives love, engineering. Listen to what the Supreme Court them into the shadows. That is why the Angelica graduated from high school said today in the Arizona immigration Arizona Association of Chiefs of Police with a 4.5 GPA and in 2007 was named law case: opposes the Arizona law considered by Outstanding Young Woman of the Year A principal feature of the removal system the Court today. They say it will make for district 7 in Phoenix. Last year, An- is the broad discretion exercised by immigra- it more difficult for them to make Ari- gelica Hernandez graduated from Ari- tion officials. . . . Discretion in the enforce- zona a safe place. Immigrants are less zona State University—we can see her ment of immigration law embraces imme- likely to cooperate with the police if holding her graduation certificate—as diate human concerns. they fear they are going to get arrested the outstanding senior in the Mechan- The President’s plan is smart and re- ical Engineering Department, with a for even trying to help. alistic. The Department of Homeland 4.1 GPA. Instead of measures that harm law Security has to set priorities. It is not enforcement and promote racial Under the Arizona immigration law, Angelica Hernandez would be a target amnesty; it is simply a decision to profiling, such as the Arizona immigra- focus limited government resources on tion law, we need practical solutions to for prosecution and incarceration. those who have committed serious fix a broken immigration system. That Under the DREAM Act, she would be a crimes and are a threat to public safe- case was before the Supreme Court. future citizen and engineer who could ty, not the DREAM Act students. The Court made its decision today be- contribute her talents to making this a cause this body—the Senate and the better country. What a choice: to take Compare President Obama’s approach House—have failed to accept their re- this woman, who has spent virtually with the Presidential candidate from sponsibility. We have a responsibility, her entire life, as she remembers it, in another party who said the Arizona law if, in fact, immigration is a Federal America, attending our schools, excel- was a ‘‘model’’ for the rest of America. issue, for a Federal response, and we ling in those schools, being acknowl- That other Presidential party can- failed. edged as one of the better students so didate has promised that if he is elect- The first step we should take in pass- her ambition takes her to a great uni- ed President he will veto the DREAM ing comprehensive immigration reform versity, Arizona State University, Act. He has refused to say whether he is to pass the DREAM Act—legislation where she graduated at the top of her would even maintain or rescind Presi- that would allow a select group of im- class in mechanical engineering and, dent Obama’s order banning the depor- some would say, tell her now she must migrant students who grew up in this tation of DREAM Act students. That is leave America, I think is wrong. Angel- country to earn citizenship either by the wrong approach for America. attending college or serving in the ica Hernandez, and people like her, will military. make this a better country. Unlike the The administration’s new policy on Russell Pearce is the author of the Arizona immigration law, the DREAM the DREAM Act is only temporary. I Arizona immigration law. He had this Act is a practical solution to a broken understand that. The burden is still on to say about the DREAM Act: immigration system. The Arizona law us in the Senate and the House to do The DREAM Act is one of the greatest leg- would harm law enforcement and en- something about the many thousands islative threats to America’s sovereignty, courage profiling. The DREAM Act of students across America, just like national security and economic future. would make America stronger. this dynamic young lady in Arizona,

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.024 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4441 who simply want a chance to be a part Have there been improvements? Of Mr. President, I ask unanimous con- of America and its future. Our first course there have been improvements. sent for a colloquy between myself and step: Pass the DREAM Act. Do it and Is it still going on? As long as we have the Senator from Illinois. do it now. guides sitting on mountaintops guiding The PRESIDING OFFICER. Without Justice Kennedy wrote in his opinion drug dealers, we haven’t got a secure objection, it is so ordered. today: border. That is what the people of Ari- The Senator from Illinois. The history of the United States is in part zona not only want but they also de- Mr. DURBIN. Let me say, the Sen- made of the stories, talents, and lasting conserve. ator from Arizona is my friend, and tributions of those who crossed oceans and By the way, Mitt Romney agrees that there are many things we have worked deserts to come here. we have to address this issue in a com- on together, and I respect him very Justice Kennedy is right. Congress prehensive fashion as well as concern much. He knows, as I do, when the should reform our immigration laws so about the plight of the children who DREAM Act was called, we thought the we can once again welcome those who are brought here illegally. But I would introductory may be the easiest part of cross oceans and deserts to revitalize also point out to my friend that part of immigration reform. It was stopped by and strengthen this Nation of immi- the DREAM Act, as proposed by the a Republican filibuster. grants. Senator from Illinois, is 2 years’ serv- Mr. MCCAIN. I don’t dispute that Mr. President, I yield the floor. point, I say to my friend from Illinois. The PRESIDING OFFICER. The Sen- ice in the military. We don’t sign people up for 2 years. Average citizens, in There was no comprehensive immigra- ator from Arizona. tion reform proposal that came over Mr. MCCAIN. Mr. President, I came order to get on a path to a green card from the White House or from the to the floor to discuss another issue. and citizenship, sign up for 4 years. Democrats, as was promised by then- But since my friend from Illinois, with That is just one of the areas that need Senator Obama when running for the whom I share many of his comments, I to be worked out. Presidency. That is a fact. have to comment. The fact is that the So there will be a lot of conversation Mr. DURBIN. I would say to the Sen- irony of the Supreme Court decision about this. But I believe people who ator from Arizona, as part of this col- today said it is a Federal responsibility live inside of our country—no matter loquy, we thought that would be the to ensure our borders and not the whether it is in Arizona or Illinois—de- first step. We couldn’t get past the first States’ responsibility. The State of Ar- serve the right to live in a safe envi- step because of the Republican fili- izona acted because the Federal Gov- ronment. The people who live in the buster. ernment wouldn’t act, because our bor- southern part of our State do not have Mr. MCCAIN. I wish that when then- ders were broken, because the people in that. Senator Obama was running for Presi- the southern part of our State were liv- So I hope we can get our borders se- dent he would have said: But first I am ing in fear, because a rancher was cure and we can move forward with coming over with the DREAM Act. He killed by someone who had crossed our comprehensive immigration. didn’t. He said: My first act will be border illegally, because people are on By the way, then-Senator Obama was comprehensive immigration reform. mountaintops today guiding drug run- one of the key reasons it failed because I was invited over to the White House ners across our border into Arizona he wanted to sunset the guest worker in 2009. We talked about comprehensive with drugs ending up in Phoenix, AZ, program. That is a fact, and you can immigration reform and I said: I will and distributed all over this Nation, look it up, I say to my friend from Illi- await a proposal from the administra- $887 million wasted on a contract for a nois. Although it was killed by people tion on comprehensive immigration re- virtual fence. on this side, it was also a broken prom- form. My phone never rang. Coyotes bring these people across and ise on the part of then-Senator Obama then treat them in the most abomi- Mr. DURBIN. I say to the Senator who assured Senator Kennedy and me from Arizona, perhaps the day will nable fashion, where they are put into that he wouldn’t vote for an amend- drop houses and kept in the worst come in our lifetime when we can see ment that would impair the progress of that, and you and I can work on it to- kinds of conditions and held for ran- comprehensive reform at that time. som. gether again as we once did before. I I look forward to having further dis- Because the Federal Government would look forward to that. would not secure our borders, the State cussions with the Senator from Illinois Mr. MCCAIN. I look forward to it, of Arizona believed they had to act be- as we move forward—sooner or later— and I want to say there has been no cause people in the southern part of with comprehensive immigration re- more passionate advocate in the Sen- our State and even other parts of our form, which is absolutely needed. But ate than the Senator from Illinois. I re- State were living in fear. They are liv- we also have to ensure the security of spect him and admire him for his coming in fear because of the drug dealers all of our citizens and stop the flow of passion and his concern about young who are coming across, because of the drugs across our southern border, people whose lives, as he very well de- coyotes who are mistreating the people which is killing our young Americans. scribed, need to have some kind of as- they were bringing. By the way, I would say to the Sen- surance for their future since it is Of course we want to address the ator from Illinois, the price of an ounce clearly a compelling humanitarian sit- issue of children who weren’t born of cocaine on the streets of Chicago uation. I thank my friend from Illinois. here. But we also have an obligation to today is not one less penny higher than HEALTH CARE RULING have our borders secured. I repeat— it was 10 years ago, which means we Mr. President, later this week the today, I say to my friend from Illi- are not restricting the flow of drugs Supreme Court will issue its ruling on nois—there are people sitting on moun- coming into our country. As we all the health care bill, designed and nego- taintops hired by the drug cartels who know, the majority of it comes across tiated by the White House and rammed are guiding the drug runners across our from our southern border. through Congress during President borders and up to Phoenix. You can ask Finally, I would remind my friend Obama’s first year in office when the the DEA. These drugs are then distrib- from Illinois that then-Senator Obama economy was near its weakest. uted throughout the country from promised in the campaign of 2008 that Instead of focusing on recovery and Phoenix, AZ. People are murdered, and immigration reform would be his first persistent unemployment, the Presi- the violence on the other side of the priority. The Senator had 60 votes over dent and the Democratic majorities border threatens every day to spill over here and an overwhelming majority in controlling Congress squandered the to our side of the border. So I hope, as the House of Representatives in the opportunity and forced the unpopular a result of this decision, the adminis- first 2 years of the Obama administra- and potentially unconstitutional legis- tration will get serious about actually tion. I never saw a proposal come to lation on the American people. securing our border. Every expert the Senate for comprehensive immigra- Today we are voting on final passage agrees that because of the work that tion reform. Now, the DREAM Act did. on the reconciled FDA user fee bill. has been done in California and Texas Comprehensive immigration reform? During Senate consideration of this it has funneled through the State of No. That is what then-Senator Obama bill I offered an amendment to allow Arizona. promised. safe drug importation from legitimate

VerDate Mar 15 2010 03:10 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.026 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4442 CONGRESSIONAL RECORD — SENATE June 25, 2012 Canadian pharmacies. But the pharma- but industry emerged satisfied as well. ‘‘We being negotiated, ‘‘The WHdesignated folks ceutical industry spread misleading got a deal,’’ wrote Bryant Hall, then senior . . . would like us to start to define what and inaccurate information about the vice president of the pharmaceutical group. ’consensus health care reform’ means, and In July, the White House made clear that amendment, as they have done time what it might include. . . . They definitely it wanted supportive ads using the same want us in the game and on the same side.’’ and a time again. As I said then, there characters the industry used to defeat Mr. is no greater example of the influence Clinton’s proposal 15 years earlier. ‘‘Rahm More on the ‘‘WH-designated folks of special interests on this body than asked for Harry and Louise ads thru third . . .’’ in a moment. The June 11 WSJ the failure to enact an amendment party,’’ Mr. Hall wrote.’’ editorial continued: Talks came close to breaking down several that would have allowed drugs from le- In particular, the drug lobby would spend times. In May, the White House was upset $70 million on two 501(c)(4) front groups gitimate Canadian pharmacies so peo- that the industry had not signed onto a joint called Healthy Economy Now and Americans ple could purchase their much needed statement. One industry official wrote that for Stable Quality Care. In July, Mr. Hall medication at sometimes half the cost they should sign: ‘‘Rahm is already furious. wrote that ‘‘Rahm asked for Harry and Lou- of what it is in the United States of The ire will be turned on us.’’ ise ads thru third party. We’ve already con- America. I am embarrassed to this day The e-mails also detail extensive and tacted the agent. that nine of my Republican colleagues direct negotiations with PhRMA, its Other groups like the AMA were also also voted against it. drug company members, the American willing to commit their membership I don’t know if there was a sweet- Medical Association, AARP, the Amer- dollars to advertising in support of the heart deal to protect PhRMA at the ex- ican Hospital Association, unions, and legislation in exchange for their policy pense of American patients from the many more. Members of the alliance priorities. According to the Wall Street vote on my amendment. But we do all participated because they thought Journal: know that PhRMA was protected by they were getting something more val- the White House and Senate Democrats uable—revenue to their organization or ‘‘At least PhRM/I deserves backhanded from provisions they didn’t like in membership because the Federal Gov- credit for the competence of its political ObamaCare only after they offered up ernment was going to force everyone operatives—unlike, say, the American Med- advertising in exchange for more ac- ical Association. A thread running through into some form of government-designed the emails is a hapless AMA lobbyist impor- commodating policies. health insurance coverage—than what From a recent House Energy and tuning Ms. DeParle and Mr. Messina for face- they were going to have to spend on ad- to-face meetings to discuss reforming the Commerce Committee investigation, it vertising to support the legislation. Medicare physician payment formula. The is now confirmed that PhRMA orches- Some reports have the PhRMA adver- AMA supported ObamaCare in return for this trated a grand deal with the White tising commitment as high as $150 mil- ‘‘doc fix,’’ which it never got. House and Senate Democrats to oppose lion, spread out through direct adver- ‘‘We are running out of time,’’ this lob- importation and other policies. I might tising in certain important States and byist, Richard Deem, writes in October 2009. point out then-Senator Obama sup- among groups created to sound like How can he ‘‘tell my colleagues at AMA headquarters to proceed with $2m TV buy’’ ported drug importation. they were looking out for patients or This is how the New York Times de- without a permanent fix? The question an- to tout the economic benefits of scribed the deal that was done in ex- swers itself: It was only $2 million.’’ ObamaCare. change for reportedly $150 million in On June 11, 2012, the Wall Street The emails uncovered by the House advertising to support ObamaCare, Journal described the e-mails about committee also describe potentially se- June 8, 2012: the 2009 negotiations: rious conflicts of interest for senior After weeks of quiet talks, drug industry The joint venture was forged in secret in White House staff, their former busi- lobbyists were growing nervous. If they were spring of 2009 amid an uneasy mix of menace nesses, who was really writing the leg- to cut a deal with the White House on over- and opportunism. The drug makers worried islation—the White House, Congress or hauling health care, they needed to be sure that health-care reform would revert to the affected industries—and questions President Obama would stop a proposal by liberal default of price controls and drug re- his liberal allies intended to bring down about the appearance of the White importation that Mr. Obama campaigned on, medicine prices. House staff orchestrating the outside On June 3, 2009, one of the lobbyists e- but they also understood that a new entitle- advertising campaign. On June 21, 2012 mailed Nancy-Ann DeParle, the president’s ment could be a windfall as taxpayers bought the Wall Street Journal further re- top health care adviser. Ms. DeParle sent a more of their products. . . . Initially, the Obamateers and Senate Fi- ported on the 2009 secret deals: message back reassuring the lobbyists. Al- nance Chairman Max Baucus asked for $100 though Mr. Obama was overseas, she wrote, STRASSEL: AXELROD’S OBAMACARE DOLLARS billion, 90% of it from mandatory ‘‘rebates’’ she and other top officials had ‘‘made a deci- through the Medicare prescription drug ben- (By Kimberly A. Strassel) sion, based on how constructive you guys efit like those that are imposed in Medicaid. Rewind to 2009. The fight over ObamaCare have been, to oppose importation on the The drug makers wheedled them down to $80 is raging, and a few news outlets report that bill.’’ Just like that, Mr. Obama’s staff aban- billion by offsetting cost-sharing for seniors something looks ethically rotten in the doned his support for the reimportation of on Medicare, in an explicit quid pro quo for White House. An outside group funded by in- prescription medicines at lower prices and protection against such rebates and re-im- dustry is paying the former firm of senior with it solidified a growing compact with an portation. presidential adviser David Axelrod to run ads industry he had vilified on the campaign ‘‘Terms were reached in June. . .lead in favor of the bill. That firm, AKPD Mes- trail the year before. PhRMA negotiator Bryant Hall wrote on sage and Media, still owes Mr. Axelrod A president who had promised to air nego- June 12 that Mr. Obama ‘‘knows personally money and employs his son. tiations on C–SPAN cut a closed-door deal about our deal and is pushing no agenda.’’ The story quickly died, but emails recently with the powerful pharmaceutical lobby, sig- But Energy and Commerce Chairman nifying to some disillusioned liberal sup- released by the House Energy and Commerce Henry Waxman then announced that he was Committee ought to resurrect it. The emails porters a loss of innocence, or perhaps even pocketing PhRMA’s concessions and de- the triumph of cynicism. suggest the White House was intimately in- manding more, including re-importation. We volved both in creating this lobby and hiring Still, what distinguishes the Obama-indus- wrote about the double-cross in a July 16, try deal is that he had so strongly rejected Mr. Axelrod’s firm—which is as big an eth- 2009 editorial called ‘‘Big Pharma Gets ical no-no as it gets. that very sort of business as usual. Played,’’ noting that Mr. Tauzin’s ‘‘cor- Mr. Axelrod—who left the White House last Ironically, candidate Obama sang a porate clients and their shareholders may year—started AKPD in 1985. Mr. Axelrod very different tune on the campaign soon pay for his attempt to get cozy with moved to the White House in 2009 and agreed ObamaCare.’’ trail in 2008: to have AKPD buy him out for $2 million. You know, I don’t want to learn how to Mr. Hall forwarded the piece to Ms. DeParle with the subject line, ‘‘This sucks.’’ But AKPD chose to pay Mr. Axelrod in an- play the game better. I want to put an end to nual installments—even as he worked in the the game playing. The White House rode to the rescue. In Sep- tember Mr. Hall informed Mr. Kindler that West Wing. Now, PhRMA is the lobbying group deputy White House chief of staff Jim The White House and industry were work- for the pharmaceutical industry. The Messina ‘‘is working on some very explicit ing hand-in-glove to pass ObamaCare in 2009, New York Times article continued: language on importation to kill it in health and among the vehicles supplying ad support The e-mails, which the House committee care reform. This has to stay quiet.’’ was an outfit named Healthy Economy Now obtained from PhRMA and other groups, doc- ‘‘PhRMA more than repaid the favor, with (HEN). ument a tumultuous negotiation, at times a $150 million advertising campaign coordi- House emails show HEN was in fact born at transactional. . . . nated with the White House political shop. an April 15, 2009 meeting arranged by then- In the end, the White House got the sup- As one of Mr. Hall’s deputies put it earlier in White House aide Jim Messina and a chief of port it needed to pass its broader priority, the minutes of a meeting when the deal was staff for Democratic Sen. Max Baucus. The

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.027 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4443 two politicos met at the Democratic Senato- these negotiations, and what did the White before the June 20 statement, the head of rial Campaign Committee (DSCC) and in- House obtain in exchange? PhRMA promised Messina, ‘‘we will deliver a vited representatives of business and labor. This investigation has produced further in- final yes to you by morning.’’ Meanwhile, The call was from Nick Baldick, a Demo- formation regarding the substance of the Ms. DeParle all but confirmed that half of cratic consultant who had worked on the ‘‘deal’’ between the White House and the the Legislative Branch was shut out in an Obama campaign and for the DSCC. Mr. Pharmaceutical Manufacturers of America email to a PhRMA representative: ‘‘I think Baldick started HEN. The only job of (PhRMA), the details of which have never we should have included the House in the PhRMA and others was to fund it. been fully disclosed to the public. Further, discussions, but maybe we never would have Meanwhile, Mr. Axelrod’s old firm was based on email exchanges and other primary gotten anywhere if we had.’’ hired to run the ads promoting ObamaCare. source material, it appears that deal was Given these facts, it is unclear why the At the time, a HEN spokesman said HEN had reached not solely between PhRMA and the White House did not fully disclose its in- done the hiring. But the emails suggest oth- United States Senate Finance Committee, volvement with outside stakeholders in the erwise. In email after email, the contributors but that top personnel in the White House development of the legislation. Their efforts to HEN refer to four men as the ‘‘White were involved in negotiating and approving are particularly surprising given the Presi- House’’ team running health care. this deal. The following update is based on dent’s repeated promises of transparency. After this Committee initiated its inves- In one email, PhRMA consultant Steve internal records obtained from outside tigation into the potential promises or stakeholders who engaged in negotiations McMahon calls these four the ‘‘WH-des- agreements made between PhRMA, labor outside the public’s view during the develop- ignated folks.’’ He explains to colleagues unions, insurers, medical associations, and ment and passage of PPACA. that Messrs. Grossman, Grisolano and Del other trade and advocacy organizations, the Cecato ‘‘are very close to Axelrod,’’ and that I. WAS THERE A DEAL? White House derided the Committee’s re- ‘‘they have been put in charge of the cam- The existence of an agreement or series of quest for basic information about its legisla- paign to pass health reform.’’ agreements between powerful health care in- tive efforts as ‘‘vast and expensive.’’ The A 2009 PhRMA memo also makes clear that dustry stakeholders and the authors of White House refused to produce any of the AKPD had been chosen before PhRMA joined PPACA is a widely known—albeit poorly un- requested documents and only produced to HEN. It’s also clear that some contributors derstood—aspect of the health care law. the Committee a list of meetings based on didn’t like the conflict of interest. When, in Media accounts dating back to 2009 specu- ‘‘calendar entries and other readily available July 2009, a media outlet prepared to report lated on the existence and details of such information.’’ These calendar entries do not AKPD’s hiring, a PhRMA participant said: deals leading up to the law’s enactment. provide information on the attendees or de- ‘‘This is a big problem.’’ Mr. Baldick advises: However, those accounts have lacked con- tails of discussion. For example, the calendar ‘‘just say, AKPD is not working for crete evidence of exactly what policies the provided by the White House identifies a PhRMA.’’ AKPD and another firm, GMMB, White House accepted or rejected as part of July 7, 2009, event as follows: ‘‘Meeting with would handle $12 million in ad business from these agreements, and what the interest PhRMA representatives.’’ No further infor- HEN and work for a successor 501(c)4. groups delivered in return. Moreover, media mation is provided. This investigation, how- A basic rule of White House ethics is to accounts and public statements from policy- ever, has revealed that this was not only a avoid even the appearance of self-dealing or makers at the time were often conflicting or meeting between representatives of PhRMA nepotism. Could you imagine the press fren- incomplete, failing to provide a clear picture and top White House aides; it was the crit- zy if Karl Rove had done the same after he to the American people about how this law ical meeting to solidify the deal. As a joined the White House? was being written, and by whom. PhRMA representative said at the time: ‘‘It’s Until the White House explains all this, For example, while President Obama re- just to go over the principal elements of the voters can fairly conclude that the Presi- ferred to the agreement in June 2009, reports deal w[ith] Rahm, Messina and DeParle. ’’ dent’s political team took their Chicago at the time also indicated that ‘‘many de- III. WHAT DID THE WHITE HOUSE PROMISE TO DO? brand of ethics into the White House.’’ tails of the . . . deal remained unclear.’’ A Even news stories that indicated that Mr. President, I ask unanimous con- month later, The Wall Street Journal re- there was a potential agreement with the sent to have printed in the RECORD a ported that House Democrats had been told pharmaceutical industry could not report the entirety of the agreement. The August New York Times article, June 8, 2012; a that the Administration ‘‘doesn’t feel bound’’ by the agreement. Because of in- New York Times story that reported White Wall Street Journal article, June 11, creased pressure from the Hill to scuttle the House acknowledgment of the deal ‘‘for the 2012; and June 21 Wall Street Journal agreement, eventually the White House at- first time’’ could not report any specifics editorial, and the memos about the e- tempted to publicly support the deal in early ‘‘beyond an agreed-upon $80 billion’’ in cost mails associated with this report. August when The New York Times reported savings. This investigation will show that There being no objection, the mate- that the drug industry ‘‘. . . successfully de- the agreement between the White House and rial was ordered to be printed in the manded that the White House explicitly ac- the pharmaceutical industry was much more explicit. In the coming weeks the Committee RECORD, as follows: knowledge for the first time it had committed to protect drug makers. . . .’’ Yet, a intends to show what the White House MAY 16, 2012. week later reports still indicated that agreed to do as part of its deal with the phar- To: Energy and Commerce Committee Re- ‘‘[s]ince mid-July, the White House and the maceutical industry and how the full details publican Members drug industry’s lobby, PhRMA, have denied of this agreement were kept from both the From: Subcommittee on Oversight and In- any specific agreement. . . .’’ public and the House of Representatives. vestigations Majority Staff This investigation has confirmed the exist- After two years, the health care law has Re Investigation Update: Closed-Door ence of a deal between the White House and failed to lower costs while only increasing Obamacare Negotiations PhRMA that explicitly bound both parties to its unpopularity with the public. According to a PhRMA official: ‘‘[W]e got a good deal.’’ From: Messina, Jim certain commitments. As the email ex- Sent: Friday, January 15, 2010 6:04 PM The important question to answer is what change at the top of this memorandum dem- did the White House get in return. To: Bryant Hall onstrates, the deal was so clearly understood Subject: FW: TAUZIN EMAIL to be binding that White House Deputy Chief What the hell? This wasn’t part of our deal. MAY 31, 2012. of Staff Jim Messina made direct contact To: Energy and Commerce Committee Re- OVERVIEW with PhRMA’s chief lobbyist for the negotia- publican Members The purpose of this memorandum is to up- tions regarding the deal to express his dis- From: Majority Staff date Republican Members on the Energy and pleasure with an apparent violation of the Re Investigation Update: Closed-Door Commerce Committee on the Committee’s agreement more than two months before the Obamacare Negotiations legislation was given final approval by Con- ongoing investigation into the potential EXECUTIVE SUMMARY agreements made by the White House and gress. The White House negotiated a deal with II. WHY DID THE WHITE HOUSE HIDE ITS health care industry stakeholders prior to the Pharmaceutical Research and Manufac- INVOLVEMENT? passage of the Patient Protection and Af- turers of America (PhRMA) in mid-June 2009. fordable Care Act (PPACA). As reported on On June 20, 2009, the White House issued a After attempting to secure a commitment April 17, 2012, the Committee’s investigation 296-word statement from President Obama from the industry for $100 billion in payment is attempting to answer the following ques- announcing an agreement between the na- cuts, eventually the White House settled for tions: tion’s pharmaceutical companies and the approximately $80 billion in payment reduc- Were ‘‘deals’’ made between the Adminis- Senate. The statement makes no mention of tions through expanded and increased Med- tration and outside stakeholders that ex- White House involvement. icaid rebates and a new health reform fee. changed specific policy outcomes for public The investigation has determined that the PhRMA also had direct input into the actual support of the law? White House, primarily through the Office of legislative policies that produced the $80 bil- Who made these deals, and to what extent Health Reform Director Nancy Ann DeParle lion, including the proposal for closing the was Congress excluded? and Messina, with involvement from Chief of Part D doughnut hole. What specifically was negotiated by the Staff Rahm Emmanuel, was actively engaged Under the deal, ‘‘the White House and Sen- White House and these outside interests? in these negotiations while the role of Con- ator Baucus agreed’’ that neither price con- What policies are now law as a result of gress was limited. For example, three days trols nor a government-run Medicare Part D

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.025 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4444 CONGRESSIONAL RECORD — SENATE June 25, 2012 plan would become law, the White House PhRMA’s chief lobbyist reported that tonight. Rahm will make it clear that would oppose price controls on dual eligible White House Chief of Staff Rahm Emanuel PhRMA needs a direct line of communica- beneficiaries, and that savings from a follow- asked for ‘‘Harry and Louise ads thru third tion, separate and apart from any coalition.’’ on biologics proposal would be applied to the party’’ on July 7, 2009, the same day White Nancy-Ann is Nancy-Ann DeParle, the White total $80 billion commitment. House officials met with PhRMA CEOs. House health reform director, and Rahm is, White House Office of Health Reform Di- PhRMA aired the ad a week later. of course, Rahm. rector Nancy-Ann DeParle told PhRMA’s Public revelations about the hiring of po- Terms were reached in June. Mr. Kindler’s chief lobbyist for negotiating the deal that litical firms close to the White House were chief of staff wrote a memo to her industry the White House would oppose new drug im- perceived to be a ‘‘big problem.’’ Presum- colleagues explaining that ‘‘Jeff would ob- portation policies because of ‘‘how construc- ably, because the firms producing and plac- ject to me telling you that his communica- tive’’ PhRMA had been. According to ing some of PhRMA’s advertising, including tion skills and breadth of knowledge on the PhRMA’s lobbyist, White House Deputy the advertising through both Healthy Econ- issues was very helpful in keeping the meet- Chief of Staff Jim Messina told him that the omy Now and Americans for Stable Quality ing productive.’’ Soon the White House ‘‘WH is working on some very explicit lan- Care, had also received over $340 million to leaked the details to show that reform was guage on importation to kill it in health re- handle advertising for President Obama’s making health-care progress, and lead form.’’ 2008 election campaign. PhRMA negotiator Bryant Hall wrote on According to internal e-mails, PhRMA’s The White House attempted to steer the June 12 that Mr. Obama ‘‘knows personally chief lobbyist believed the White House advertising and advocacy tactics of a number about our deal and is pushing no agenda.’’ eventually cut a deal with the pharma- of organizations, including the AFL-CIO and But Energy and Commerce Chairman ceutical industry during the week of June 20, AARP. Henry Waxman then announced that he was 2009, because the White House had suffered a pocketing PhRMA’s concessions and de- bad week politically. [From the Wall Street Journal, June 11, 2012] manding more, including re-importation. We Despite countless promises of televised ne- OBAMACARE’S SECRET HISTORY—HOW A wrote about the double-cross in a July 16, gotiations and transparent government, the PFIZER CEO AND BIG PHARMA COLLUDED 2009 editorial called ‘‘Big Pharma Gets White House met in private with PhRMA WITH THE WHITE HOUSE AT THE PUBLIC’S Played,’’ noting that Mr. Tauzin’s ‘‘cor- representatives and drug company CEOs in EXPENSE. porate clients and their shareholders may July 2009, ‘‘to look the other side in the eye soon pay for his attempt to get cozy with On Friday House Republicans released and shake their hand on whatever deal we ObamaCare.’’ more documents that expose the collusion work out.’’ Mr. Hall forwarded the piece to Ms. between the health-care industry and the The White House was not above threat- DeParle with the subject line, ‘‘This sucks.’’ White House that produced ObamaCare, and ening PhRMA to get its way. According to The duo commiserated about how unreason- what a story of crony capitalism it is. If the PhRMA’s chief lobbyist, the White House able House Democrats are, unlike Mr. Bau- trove of emails proves anything, it’s that the was going to have President Obama call for cus and the Senators. The full exchange is Tea Party isn’t angry enough. rebating all of Medicare Part D, a policy among the excerpts from the emails printed Over the last year, the Energy and Com- PhRMA staunchly opposed, in his Weekly nearby. merce Committee has taken Nancy Pelosi’s Radio Address unless PhRMA cut a deal with Then New York Times reporter Duff Wil- advice to see what’s in the Affordable Care the White House to support health reform. son wrote to a PhRMA spokesman, ‘‘Tony, Act and how it passed. The White House re- you see the WSJ editorial, ‘Big Pharma Gets fused to cooperate beyond printing out old JUNE 8, 2012. Played’ ’’? I’m doing a story along that line press releases, but a dozen trade groups To: Energy and Commerce Committee Re- for Monday.’’ The drug dealers had a prob- turned over thousands of emails and other publican Members lem. files. A particular focus is the drug lobby, From: Majority Staff The White House rode to the rescue. In President Obama’s most loyal corporate ally Re: Investigation Update: Closed-Door September Mr. Hall informed Mr. Kindler in 2009 and 2010. Obamacare Negotiations that deputy White House chief of staff Jim The business refrain in those days was that Messina ‘‘is working on some very explicit EXECUTIVE SUMMARY if you’re not at the table, you’re on the language on importation to kill it in health As part of its agreement with the White menu. But it turns out Big Pharma was also care reform. This has to stay quiet.’’ House, the Pharmaceutical Research and serving as head chef, maˆ tre d’hotel and dish- PhRMA more than repaid the favor, with a Manufacturers of America (PhRMA) needed washer. Though some parts of the story have $150 million advertising campaign coordi- to undertake a ‘‘significant public cam- been reported before, the emails make clear nated with the White House political shop. paign.’’ PhRMA was willing to spend as that ObamaCare might never have passed As one of Mr. Hall’s deputies put it earlier in much as $150 million on advertising, with without the drug companies. Thank you, the minutes of a meeting when the deal was nearly $70 million spent on two 501(c)(4) Pfizer. being negotiated, ‘‘The WH-designated folks groups that could spend unlimited corporate The joint venture was forged in secret in . . . would like us to start to define what money with little public disclosure: Healthy spring 2009 amid an uneasy mix of menace ‘consensus health care reform’ means, and Economy Now and Americans for Stable and opportunism. The drug makers worried what it might include. . . . They definitely Quality Care. that health-care reform would revert to the want us in the game and on the same side.’’ Healthy Economy Now was created after a liberal default of price controls and drug re- In particular, the drug lobby would spend meeting at the Democratic Senatorial Cam- importation that Mr. Obama campaigned on, $70 million on two 501(c)(4) front groups paign Committee (DSCC) organized in part but they also understood that a new entitle- called Healthy Economy Now and Americans by White House Deputy Chief of Staff Jim ment could be a windfall as taxpayers bought for Stable Quality Care. In July, Mr. Hall Messina. Participants were told that the more of their products. The White House wrote that ‘‘Rahm asked for Harry and Lou- White House wanted to see ads linking the wanted industry financial help and knew ise ads thru third party. We’ve already con- poor economy to the need for health care that determined business opposition could tacted the agent.’’ legislation, with one attendee remarking tank the bill. Mr. Messina—known as ‘‘the fixer’’ in the that ‘‘given who is behind this ask’’ their Initially, the Obamateers and Senate Fi- West Wing—asked on December 15, 2009, group should support the effort. nance Chairman Max Baucus asked for $100 ‘‘Can we get immediate robo calls in Ne- In early June 2009, PhRMA representatives billion, 90% of it from mandatory ‘‘rebates’’ braska urging nelson to vote for cloture?’’ met with ‘‘the team that is working with the through the Medicare prescription drug ben- Ben Nelson was the last Democratic holdout White House on health care reform’’ to learn efit like those that are imposed in Medicaid. toward the Senate’s 60-vote threshold, and, about White House messaging and ‘‘how our The drug makers wheedled them down to $80 as Mr. Messina wrote, ‘‘We are at 59, we have effort can be consistent with that.’’ The billion by offsetting cost-sharing for seniors to have him.’’ They got him. team was a who’s who of Democratic strate- on Medicare, in an explicit quid pro quo for At least PhRMA deserves backhanded cred- gists that included a previous head of the protection against such rebates and re-im- it for the competence of its political DSCC; the producer of the 2008 Democratic portation. As Pfizer’s then-CEO Jeff Kindler operatives—unlike, say, the American Med- National Convention; and two partners at put it, ‘‘our key deal points . . . are, to some ical Association. A thread running through AKPD Message and Media, the advertising extent, as important as the total dollars.’’ the emails is a hapless AMA lobbyist impor- firm founded by then Senior Advisor to the Mr. Kindler played a more influential role tuning Ms. DeParle and Mr. Messina for face- President David Axelrod. than we understood before, as the emails to-face meetings to discuss reforming the When PhRMA’s representative indicated show. Medicare physician payment formula. The that PhRMA was not prepared to run adver- Thus began a close if sometimes dysfunc- AMA supported ObamaCare in return for this tisements before seeing how the health care tional relationship with the Pharmaceutical ‘‘doc fix,’’ which it never got. legislation developed, the White House team Research and Manufacturers of America, or ‘‘We are running out of time,’’ this lob- specifically referred to a meeting the PhRMA, as led by Billy Tauzin, the Lou- byist, Richard Deem, writes in October 2009. PhRMA CEOs had with Jim Messina the day isiana Democrat turned Republican turned How can he ‘‘tell my colleagues at AMA before and to White House efforts on drug lobbyist. As a White House staffer put it in headquarters to proceed with $2m TV buy’’ importation policy which had been commu- May 2009, ‘‘Rahm’s calling Nancy-Ann and without a permanent fix? The question an- nicated to PhRMA’s chief lobbyist that day. knows Billy is going to talk to Nancy-Ann swers itself: It was only $2 million.

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.031 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4445 Mr. Waxman recently put out a rebuttal On June 3, 2009, one of the lobbyists e- ‘‘Throughout his campaign, President memo dismissing these email revelations as mailed Nancy-Ann DeParle, the president’s Obama was clear that he would bring every routine, ‘‘exactly what Presidents have al- top health care adviser. Ms. DeParle sent a stakeholder to the table in order to pass ways done to enact major legislation.’’ message back reassuring the lobbyist. Al- health reform, even longtime opponents like Which is precisely the point—the normality though Mr. Obama was overseas, she wrote, the pharmaceutical industry,’’ Mr. Pfeiffer is the scandal. In 2003 PhRMA took a similar she and other top officials had ‘‘made deci- said. ‘‘He understood correctly that the un- road trip with the Bush Republicans to cre- sion, based on how constructive you guys willingness to work with people on both ate the Medicare drug benefit. That effort in- have been, to oppose importation on the sides of the issue was one of the reasons why cluded building public support by heavily bill.’’ it took a century to pass health reform.’’ funding a shell outfit called Citizens for a Just like that, Mr. Obama’s staff aban- In a statement, PhRMA said that its inter- Better Medicare. doned his support for the reimportation of actions with Mr. Obama’s White House were Of course Democrats claim to be above this prescription medicines at lower prices and part of its mission to ‘‘ensure patient ac- kind of merger of private profits and polit- with it solidified a growing compact with an cess’’ to quality medicine and to advance ical power, as Mr. Obama did as a candidate. industry he had vilified on the campaign medical progress. ‘‘The pharmaceutical industry wrote into trail the year before. Central to Mr. Obama’s ‘‘Before, during and since the health care the prescription drug plan that Medicare drive to overhaul the nation’s health care debate, PhRMA engaged with Congress and could not negotiate with drug companies,’’ system was an unlikely collaboration with the administration to advance these prior- he said in 2008. ‘‘And you know what? The the pharmaceutical industry that forced un- ities,’’ said Matthew Bennett, the group’s chairman of the committee who pushed the appealing trade-offs. senior vice president. law through’’—that would be Mr. Tauzin— The e-mail exchange that day three years Representative Henry Waxman of Cali- ‘‘went to work for the pharmaceutical indus- ago was among a cache of messages obtained fornia, the top Democrat on the House com- try making $2 million a year.’’ from the industry and released in recent mittee and one of those who balked at Mr. Outrage over this kind of cronyism is what weeks by House Republicans—including a Obama’s deal in 2009, now defends it as tradi- animates the Tea Party and Occupy Wall new batch put out on Friday morning detail- tional Washington lawmaking. Street, whose members aren’t powerful ing the industry’s advertising campaign in ‘‘Presidents have routinely sought the sup- enough to get special dispensations from the favor of Mr. Obama’s proposal. The broad port and lobbying clout of private industry government—or even a fair hearing from contours of the president’s dealings with the in passing major legislation,’’ Mr. Waxman’s their putative representatives. drug industry were known in 2009 but the committee staff said in a memo released in In one email, an AARP lobbyist writes the newly public e-mails open a window into the response to the e-mails. ‘‘President Obama’s White House to say ‘‘We really need to talk,’’ compromises underlying a health care over- actions, for example, are no different than noting that calls from seniors are running 14 haul now awaiting the judgment of the Su- those of President Lyndon B. Johnson in en- to one against ObamaCare. But she isn’t call- preme Court. acting Medicare in 1965 or President George ing to say that AARP is withdrawing sup- Mr. Obama’s deal-making in 2009 rep- W. Bush in expanding Medicare to add a pre- port—only that the White House needs to ad- resented a pivotal moment in his young pres- scription drug benefit in 2003.’’ just its messaging. This is how a bill passes idency, a juncture where the heady idealism Still, what distinguishes the Obama-indus- over the objections of most Americans. of the campaign trail collided with the try deal is that he had so strongly rejected The lesson for Republicans if they do end messy reality of Washington policymaking. that very sort of business as usual. During up running the country next year is that A president who had promised to air negotia- his campaign for president, he specifically their job is to restore the free and fair mar- tions on C-Span cut a closed-door deal with singled out the power of the pharmaceutical ket that creates broad-based economic the powerful pharmaceutical lobby, signi- industry and its chief lobbyist, former Rep- growth. The temptation will be to return for fying to some disillusioned liberal supporters resentative Billy Tauzin, a Democrat-turned- the sake of power to the methods of Tom a loss of innocence, or perhaps even the tri- Republican from Louisiana, as examples of DeLay and Jack Abramoff. If they do, voters umph of cynicism. what he wanted to change. will return the GOP to private life as surely But if it was a Faustian bargain for the ‘‘The pharmaceutical industry wrote into as they did the Democrats in 2010. president, it was one he deemed necessary to the prescription drug plan that Medicare The warning to business is also funda- forestall industry opposition that had could not negotiate with drug companies,’’ mental. Crony capitalism undermines public thwarted efforts to cover the uninsured for Mr. Obama said in a campaign advertise- trust in capitalism itself and risks blowback generations. Without the deal, in which the ment, referring to Mr. Bush’s 2003 legisla- that erodes the free market that private industry agreed to provide $80 billion for tion. ‘‘And you know what? The chairman of companies need to prosper and that underlies health reform in exchange for protection the committee who pushed the law through the productivity and competitiveness of the from policies that would cost more, Mr. went to work for the pharmaceutical indus- U.S. economy. The political benefits of cro- Obama and Democratic allies calculated he try making $2 million a year. nyism are inherently temporary, but the might get nowhere. ‘‘Imagine that,’’ Mr. Obama continued. damage it does is far more lasting. ‘‘There was no way we had the votes in ei- ‘‘That’s an example of the same old game As for Big Pharma, the lobby ultimately ther the House or the Senate if PhRMA was playing in Washington. You know, I don’t staved off Mr. Waxman’s revolt and avoided opposed—period,’’ said a senior Democratic want to learn how to play the game better. some truly harmful drug policies—for now. official involved in the talks, referring to the I want to put an end to the game playing.’’ But over the long term their products are far Pharmaceutical Research and Manufacturers After arriving at the White House, though, more vulnerable to the command-and-con- of America, the drug industry trade group. he and his advisers soon determined that one trol central planning that will erode medical Republicans see the deal as hypocritical. reason Mr. Clinton had failed to pass health innovation, and their $80 billion fillip is ‘‘He said it was going to be the most open care reform was the resilient opposition of merely the teaser rate. and honest and transparent administration industry. Led by Rahm Emanuel, his chief of Mr. Kindler resigned from Pfizer in Decem- ever and lobbyists won’t be drafting the staff and a former House leader, and Jim ber 2010 under pressure from directors, its bills,’’ said Representative Michael C. Bur- Messina, his deputy, White House officials stock having lost 35% of its value since he gess of Texas, one of the Republicans on the set out to change that dynamic. became CEO. Mr. Tauzin left PhRMA in Feb- House Energy and Commerce subcommittee The e-mails, which the House committee ruary 2010, with the Affordable Care Act a that is examining the deal. ‘‘Then when it obtained from PhRMA and other groups month from passage. came time, the door closed, the lobbyists after the White House declined to provide The truth is that this destructive legisla- came in and the bills were written.’’ correspondence, document a tumultuous ne- tion wasn’t inevitable and far better reforms Some of the liberals bothered by the deal- gotiation, at times transactional, at others were possible. They still are, though they making in 2009 now find the Republican criti- prickly. Each side suspected the other of be- might have gained more traction in 2009 and cism hard to take given the party’s long- traying trust and operating in bad faith. 2010 with the right support. The miracle is standing ties to the pharmaceutical indus- The White House depicted in the message that, despite this collusion of big govern- try. traffic comes across as deeply involved in ment and big business, ObamaCare has re- ‘‘Republicans trumpeting these e-mails is the give-and-take, and not averse to pressure ceived the public scorn that it deserves. like a fox complaining someone else raided tactics, including having Mr. Obama publicly the chicken coop,’’ said Robert Reich, the assail the industry unless it gave in on key [From the New York Times, June 8, 2012] former labor secretary under President Bill points. In the end, the White House got the LOBBY E-MAILS SHOW DEPTH OF OBAMA TIES Clinton. ‘‘Sad to say, it’s called politics in an support it needed to pass its broader pri- TO DRUG INDUSTRY era when big corporations have an effective ority, but industry emerged satisfied as well. (By Peter Baker) veto over major legislation affecting them ‘‘We got a good deal,’’ wrote Bryant Hall, WASHINGTON.—After weeks of quiet talks, and when the G.O.P. is usually the bene- then senior vice president of the pharma- drug industry lobbyists were growing nerv- ficiary. In this instance, the G.O.P. was out- ceutical group. ous. If they were to cut a deal with the White foxed. Who are they to complain?’’ Mr. Bryant, now head of his own firm, de- House on overhauling health care, they need- Dan Pfeiffer, the White House communica- clined to comment. So did Mr. Emanuel, now ed to be sure President Obama would stop a tions director, said the collaboration with mayor of Chicago; Mr. Messina, now the proposal by his liberal allies intended to industry was in keeping with the president’s president’s campaign manager; and Ms. bring down medicine prices. promise to build consensus. DeParle, now a White House deputy chief of

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.026 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4446 CONGRESSIONAL RECORD — SENATE June 25, 2012 staff. Mr. Tauzin, who has left his post as the agreement somehow passed muster with the Axelrod’s former firm, they contributed to industry’s lobbyist, did not respond to mes- Office of Government Ethics, though the sit- his son’s salary as well as to the ability of sages. uation at the very least should have walled the firm to pay Mr. Axelrod what it still The latest e-mails released on Friday un- off AKPD from working on White-House pri- owed him. Could you imagine the press fren- derscore the detailed discussions the two orities. zy if Karl Rove had done the same after he sides had about an advertising campaign sup- It didn’t. The White House and industry joined the White House? porting Mr. Obama’s health overhaul.‘‘They were working hand-in-glove to pass Messrs. Axelrod and Messina are now in plan to hit up the ‘bad guys’ for most of the ObamaCare in 2009, and among the vehicles Chicago running Mr. Obama’s campaign. Mr. $,’’ a union official wrote after an April supplying ad support was an outfit named Axelrod, the White House and a partner for meeting with Mr. Messina and Senate Demo- Healthy Economy Now (HEN). News stories AKPD didn’t respond to requests for com- cratic aides. ‘‘They want us to just put in at the time described this as a ‘‘coalition’’ ment on their role in HEN, the tapping of enough to be able to put our names in it—he that included the Pharmaceutical Research Mr. Baldick, and the redolent hiring of is thinking @100K.’’ and Manufacturers of America (PhRMA), the AKPD. Until the White House explains all In July, the White House made clear that American Medical Association, and labor this, voters can fairly conclude that the it wanted supportive ads using the same groups—suggesting these entities had start- President’s political team took their Chi- characters the industry used to defeat Mr. ed and controlled it. cago brand of ethics into the White House. Clinton’s proposal 15 years earlier. ‘‘Rahm House emails show HEN was in fact born at Mr. MCCAIN. Mr. President, I know asked for Harry and Louise ads thru third an April 15, 2009 meeting arranged by then- my other colleagues are waiting to party,’’ Mr. Hall wrote. White House aide Jim Messina and a chief of speak, but last month when we voted Industry and Democratic officials said pri- staff for Democratic Sen. Max Baucus. The down this amendment to allow drug re- vately that the advertising campaign was an two politicos met at the Democratic Senato- importation from pharmacies that are outgrowth of the fundamental deal, not the rial Campaign Committee (DSCC) and in- accredited by both the Canadian and vited representatives of business and labor. goal of it. The industry traditionally adver- American Governments, my statement tises in favor of legislation it supports. A Service Employees International Union Either way, talks came close to breaking attendee sent an email to colleagues noting was, and I will repeat it: down several times. In May, the White House she’d been invited by the Baucus staffer, ex- In a normal world, this would probably re- was upset that the industry had not signed plaining: ‘‘Also present was Jim Messina. quire a voice vote. But what we are about to onto a joint statement. One industry official . . . They basically want to see adds linking see is the incredible influence of the special wrote that they should sign: ‘‘Rahm is al- HC reform to the economy . . . there were interests, particularly PhRMA, here in ready furious. The ire will be turned on us.’’ not a lot of details, but we were told that we Washington. By June, it came to a head again. ‘‘Barack would be getting a phone call. Well that call What you are about to see [as I predicted Obama is going to announce in his Saturday came today.’’ just before the vote] is the reason for the radio address support for rebating all of D The call was from Nick Baldick, a Demo- cynicism the American people have about unless we come to a deal,’’ Mr. Hall wrote, cratic consultant who had worked on the the way we do business in Washington. PhRMA—one of the most powerful lobbies in referring to a change in Medicare Part D Obama campaign and for the DSCC. Mr. Washington—will exert its influence again at that would cost the industry. Baldick started HEN. The only job of the expense of average low-income Ameri- In the end, the two sides averted the public PhRMA and others was to fund it. cans who will, again, have to choose between confrontation and negotiated down to $80 bil- Meanwhile, Mr. Axelrod’s old firm was medication and eating. lion from $100 billion. But the industry be- hired to run the ads promoting ObamaCare. lieved the White House was rushing an an- At the time, a HEN spokesman said HEN had In response the Senator from New nouncement to deflect political criticism. done the hiring. But the emails suggest oth- Jersey said, in opposition to my ‘‘It’s pretty clear that the administration erwise. In email after email, the contributors amendment: has had a horrible week on health care re- to HEN refer to four men as the ‘‘White It is not the special interests that have form, and we are now getting jammed to House’’ team running health care. They in- caused the Senate countless times to reject make this announcement so the story takes cluded John Del Cecato and Larry Grisolano this policy. . . . . a positive turn before the Sunday talk shows (partners at AKPD), as well as Andy Gross- This is about the health and security of the beat up on Congress and the White House,’’ man (who once ran the DSCC) and Erik American people. That is why time after wrote Ken Johnson, a senior vice president Smith, who had been a paid adviser to the time the Senate has rejected it. It is why it of the pharmaceutical organization. Obama presidential campaign. should be rejected once again. In the end, House Democrats imposed some In one email, PhRMA consultant Steve He was correct. It was rejected. The additional costs on the industry that by one McMahon calls these four the ‘‘WH-designated folks.’’ He explains to colleagues American people were rejected in favor estimate pushed the cost above $100 billion, of one of the most powerful special in- but the more sweeping policies the firms that Messrs. Grossman, Grisolano and Del wanted to avoid remained out of the legisla- Cecato ‘‘are very close to Axelrod,’’ and that terest lobbies in Washington and it is a tion. Mr. Obama signed the bill in March. He ‘‘they have been put in charge of the cam- shame. had the victory he wanted. paign to pass health reform.’’ Ron Pollack, I suggest the absence of a quorum. whose Families USA was part of the HEN co- The PRESIDING OFFICER (Mr. [From the Wall Street Journal, June 22, 2012] alition, explained to colleagues that ‘‘the MANCHIN). The clerk will call the roll. team that is working with the White House STRASSEL: AXELROD’S OBAMACARE DOLLARS The assistant legislative clerk pro- on health-care reform. . . . [Grossman, ceeded to call the roll. (By Kimberley A. Strassel) Smith, Del Cecato, Grisolano] . . . would Mr. REID. Mr. President, I ask unan- Emails suggest the White House pushed like to get together with us.’’ This would imous consent that the order for the business to the presidential adviser’s former provide ‘‘guidance from the White House quorum call be rescinded. firm to sell the health-care law. about their messaging.’’ The PRESIDING OFFICER. Without Rewind to 2009. The fight over ObamaCare According to White House visitor logs, Mr. is raging, and a few news outlets report that Smith had 28 appointments scheduled be- objection, it is so ordered. something looks ethically rotten in the tween May and August—17 made through Mr. f White House. An outside group funded by in- Messina or his assistant. Mr. Grossman ap- FLOOD INSURANCE REFORM AND dustry is paying the former firm of senior pears in the logs at least 19 times. Messrs. presidential adviser David Axelrod to run ads Del Cecato and Grisolano of AKPD also vis- MODERNIZATION ACT in favor of the bill. That firm, AKPD Mes- ited in the spring and summer, at least twice Mr. REID. Mr. President, I ask unan- sage and Media, still owes Mr. Axelrod with Mr. Axelrod, who was deep in the imous consent that the remaining time money and employs his son. health-care fight. postcloture be yielded back and the The story quickly died, but emails recently A 2009 PhRMA memo also makes clear that Senate adopt the motion to proceed to released by the House Energy and Commerce AKPD had been chosen before PhRMA joined S. 1940. Committee ought to resurrect it. The emails HEN. It’s also clear that some contributors The PRESIDING OFFICER. Is there suggest the White House was intimately in- didn’t like the conflict of interest. When, in volved both in creating this lobby and hiring July 2009, a media outlet prepared to report objection? Mr. Axelrod’s firm—which is as big an eth- AKPD’s hiring, a PhRMA participant said: Without objection, it is so ordered. ical no-no as it gets. ‘‘This is a big problem.’’ Mr. Baldick advises: The motion was agreed to. Mr. Axelrod—who left the White House last ‘‘just say, AKPD is not working for The PRESIDING OFFICER. The year—started AKPD in 1985. The firm earned PhRMA.’’ AKPD and another firm, GMMB, clerk will report the bill by title. millions helping run Barack Obama’s 2008 would handle $12 million in ad business from The assistant legislative clerk read campaign. Mr. Axelrod moved to the White HEN and work for a successor 501(c)4. as follows: House in 2009 and agreed to have AKPD buy A basic rule of White House ethics is to The bill (S. 1940) to amend the National him out for $2 million. But AKPD chose to avoid even the appearance of self-dealing or Flood Insurance Act of 1968, to restore the fi- pay Mr. Axelrod in annual installments— nepotism. If Mr. Axelrod or his West Wing nancial solvency of the flood insurance fund, even as he worked in the West Wing. This chums pushed political business toward Mr. and for other purposes.

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.027 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4447 Mr. REID. Mr. President, I was com- ness of applying the mandatory purchase re- methods, and strategies for making available ing here today to propound a unani- quirements under sections 102 and 202 of the voluntary community-based flood insurance mous consent request on this most im- Flood Disaster Protection Act of 1973 (42 policies through the National Flood Insur- portant piece of legislation dealing U.S.C. 4012a and 4106) to properties located in ance Program. areas of residual risk. (B) CONSIDERATIONS.—The study conducted with flood insurance, but after having (B) AREAS OF STUDY.—In carrying out the under subparagraph (A) shall — had some discussions with various peo- study required under subparagraph (A), the (i) take into consideration and analyze how ple, at this time it would not be of any Comptroller General shall evaluate— voluntary community-based flood insurance benefit. There is no need for me to (i) the regulatory, financial, and economic policies— stand and ask unanimous consent when impact of applying the mandatory purchase (I) would affect communities having vary- I know it is not going to go anyplace. requirements described in subparagraph (A) ing economic bases, geographic locations, So we are going to move this forward to areas of residual risk on— flood hazard characteristics or classifica- (I) the costs of homeownership; a little bit, and hopefully with this we tions, and flood management approaches; (II) the actuarial soundness of the National and can move toward completing this bill Flood Insurance Program; (II) could satisfy the applicable require- at a very early time. (III) the Federal Emergency Management ments under section 102 of the Flood Dis- AMENDMENT NO. 2468 Agency; aster Protection Act of 1973 (42 U.S.C. 4012a); (Purpose: In the nature of a substitute.) (IV) communities located in areas of resid- and ual risk; Mr. REID. Mr. President, on behalf of (ii) evaluate the advisability of making (V) insurance companies participating in available voluntary community-based flood Senator JOHNSON of South Dakota and the National Flood Insurance Program; and insurance policies to communities, subdivi- Senator SHELBY, I have a substitute (VI) the Disaster Relief Fund; sions of communities, and areas of residual amendment at the desk. (ii) the effectiveness of the mandatory pur- risk. The PRESIDING OFFICER. The chase requirements in protecting— (C) CONSULTATION.—In conducting the clerk will report. (I) homeowners and taxpayers in the study required under subparagraph (A), the The assistant legislative clerk read United States from financial loss; and Administrator may consult with the Comp- (II) the financial soundness of the National as follows: troller General of the United States, as the Flood Insurance Program; Administrator determines is appropriate. The Senator from Nevada [Mr. REID], for (iii) the impact on lenders of complying (2) REPORT BY THE ADMINISTRATOR.— Mr. JOHNSON of South Dakota, for himself with or enforcing the mandatory purchase (A) REPORT REQUIRED.—Not later than 18 and Mr. SHELBY, proposes an amendment requirements; months after the date of enactment of this numbered 2468. (iv) the methodology that the Adminis- Act, the Administrator shall submit to the (The amendment is printed in today’s trator uses to adequately estimate the vary- Committee on Banking, Housing, and Urban RECORD under ‘‘Text of Amendments.’’) ing levels of residual risk behind levees and Affairs of the Senate and the Committee on Mr. REID. Mr. President, I ask for other flood control structures; and Financial Services of the House of Rep- (v) the extent to which the risk premium resentatives a report that contains the re- the yeas and nays on that amendment. rates under the National Flood Insurance sults and conclusions of the study conducted The PRESIDING OFFICER. Is there a Program for property in the areas of residual under paragraph (1). sufficient second? risk behind levees adequately account for— (B) CONTENTS.—The report submitted There appears to be a sufficient sec- (I) the design of the levees; under subparagraph (A) shall include rec- (II) the soundness of the levees; ond. ommendations for— (III) the hydrography of the areas of resid- The yeas and nays were ordered. (i) the best manner to incorporate vol- ual risk; and AMENDMENT NO. 2469 TO AMENDMENT NO. 2468 untary community-based flood insurance (IV) any historical flooding in the areas of policies into the National Flood Insurance Mr. REID. Mr. President, on behalf of residual risk. Program; and Senator PRYOR, there is a first-degree (2) REPORTS.— (ii) a strategy to implement voluntary amendment at the desk. (A) INITIAL REPORT.—Not later than 12 community-based flood insurance policies The PRESIDING OFFICER. The months after the date on which the Adminis- trator establishes a definition of the term that would encourage communities to under- clerk will report. take flood mitigation activities, including The assistant legislative clerk read ‘‘area of residual risk’’ under subsection (a)(1), the Comptroller General shall submit the construction, reconstruction, or im- as follows: to Congress a report that— provement of levees, dams, or other flood The Senator from Nevada [Mr. REID], for (i) contains the results of the study re- control structures. Mr. PRYOR, for himself and Mr. HOEVEN, pro- quired under paragraph (1); and (3) REPORT BY COMPTROLLER GENERAL.—Not poses an amendment numbered 2469 to (ii) provides recommendations to the Ad- later than 6 months after the date on which amendment No. 2468. ministrator on improvements that may re- the Administrator submits the report result in more accurate estimates of varying quired under paragraph (2), the Comptroller The amendment is as follows: General of the United States shall— (Purpose: To require the Government Ac- levels of residual risk behind levees and other flood control structures. (A) review the report submitted by the Ad- countability Office to study the effect of ministrator; and applying the mandatory purchase require- (B) UPDATED REPORT.—Not later than 5 years after the date on which the Comp- (B) submit to the Committee on Banking, ments to areas of residual risk, and to re- Housing, and Urban Affairs of the Senate and quire the Administrator to study vol- troller General submits the report under subparagraph (A), the Comptroller General the Committee on Financial Services of the untary community-based flood insurance House of Representatives a report that con- options) shall— (i) update the study conducted under para- tains— Strike section 107 and insert the following: graph (1); and (i) an analysis of the report submitted by SEC. 107. AREAS OF RESIDUAL RISK. (ii) submit to Congress an updated report the Administrator; (a) AREAS OF RESIDUAL RISK.— that— (ii) any comments or recommendations of (1) DEFINITION.—Not later than 18 months (I) contains the results of the updated the Comptroller General relating to the re- after the date of enactment of this Act, the study required under clause (i); and port submitted by the Administrator; and Administrator, in consultation with the (II) provides recommendations to the Ad- (iii) any other recommendations of the Technical Mapping Advisory Council estab- ministrator on improvements that may re- Comptroller General relating to community- lished under section 117, shall establish a def- sult in more accurate estimates of varying based flood insurance policies. inition of the term ‘‘area of residual risk’’, levels of residual risk behind levees and Mr. REID. I ask for the yeas and nays for purposes of the National Flood Insurance other flood control structures. on that amendment. Program, that is limited to areas that are (3) ADJUSTMENT OF METHODOLOGIES.—The not areas having special flood hazards. Administrator shall, to the extent prac- The PRESIDING OFFICER. Is there a (2) THIS SECTION.—In this section, the term ticable, adjust the methodologies used to es- sufficient second? ‘‘area of residual risk’’ has the meaning estimate the varying levels of residual risk be- tablished by the Administrator under para- hind levees and other flood control struc- There appears to be a sufficient sec- graph (1). tures based on the recommendations sub- ond. (b) STUDY AND REPORT ON MANDATORY PUR- mitted by the Comptroller General under The yeas and nays were ordered. CHASE REQUIREMENTS IN AREAS OF RESIDUAL subparagraphs (A)(ii) and (B)(ii)(II). RISK.— (c) STUDY OF VOLUNTARY COMMUNITY-BASED AMENDMENT NO. 2470 TO AMENDMENT NO. 2469 (1) STUDY.— FLOOD INSURANCE OPTIONS.— (A) IN GENERAL.—The Comptroller General (1) STUDY.— Mr. REID. Mr. President, I have a of the United States shall conduct a study (A) STUDY REQUIRED.—The Administrator second-degree amendment, which is assessing the potential impact and effective- shall conduct a study to assess options, also at the desk.

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.035 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4448 CONGRESSIONAL RECORD — SENATE June 25, 2012 The PRESIDING OFFICER. The The assistant legislative clerk read nally have to work together to develop clerk will report. as follows: common standards that will allow ex- The assistant legislative clerk read The Senator from Nevada [Mr. REID] pro- isting Corps levee inspections to meet as follows: poses an amendment numbered 2474 to the FEMA certification criteria. The Senator from Nevada [Mr. REID] pro- instructions of the motion to recommit S. We also lengthened the phase-in pe- poses an amendment numbered 2470 to 1940. riod for homeowners who must pur- amendment No. 2469. The amendment is as follows: chase flood insurance for the first time The amendment is as follows: In the amendment, strike ‘‘3 days’’ and in- as a result of being mapped into a At the end, add the following new section: sert ‘‘2 days’’. floodplain, so that as changes to the SEC. ll. Mr. REID. I ask for the yeas and maps occur, folks are not forced imme- This Act shall become effective 7 days nays. after enactment. The PRESIDING OFFICER. Is there a diately into high-priced premiums. AMENDMENT NO. 2471 sufficient second? This bill takes important steps to Mr. REID. Mr. President, I have an There appears to be a sufficient sec- more closely align risks with pre- amendment at the desk to the lan- ond. miums. It makes changes to protect guage proposed to be stricken. The yeas and nays were ordered. taxpayers, and it puts the program on The PRESIDING OFFICER. The AMENDMENT NO. 2475 TO AMENDMENT NO. 2474 a more solid financial ground. clerk will report. Mr. REID. Mr. President, I have a The House and Senate have never The assistant legislative clerk read second-degree amendment at the desk. produced two flood insurance bills as as follows: The PRESIDING OFFICER. The closely aligned as the bills we have be- The Senator from Nevada [Mr. REID] pro- clerk will report. fore us, and I am not sure we have ever poses amendment numbered 2471 to the lan- The assistant legislative clerk read had the same strong broad support we guage proposed to be stricken by amendment as follows: have now from homeowners, realtors, No. 2468. The Senator from Nevada [Mr. REID] pro- insurers, state insurance regulators, The amendment is as follows: poses an amendment numbered 2475 to and environmental groups. That is a At the end, add the following new section: amendment No. 2474. real testament to my colleagues on the SEC. ll. The amendment is as follows: Banking Committee, and I look for- This title shall become effective 5 days In the amendment, strike ‘‘2 days’’ and in- ward to finally sending a long-term re- after enactment. sert ‘‘1 day’’. authorization and reform bill to the Mr. REID. I ask for the yeas and f President’s desk for his signature. nays. The PRESIDING OFFICER. Is there a SMALL BUSINESS JOBS AND TAX Unfortunately, we have seen the con- sufficient second? RELIEF ACT—MOTION TO PROCEED sequences of reauthorizing this pro- There appears to be a sufficient sec- Mr. REID. Mr. President, I now move gram on a short-term basis, and we ond. to proceed to Calendar No. 341, S. 2237. have seen the consequences of letting The yeas and nays were ordered. The PRESIDING OFFICER. The this program lapse. We have been down AMENDMENT NO. 2472 TO AMENDMENT NO. 2471 clerk will report the motion. that road before and have seen how un- Mr. REID. Mr. President, I have a The assistant legislative clerk read productive and destructive lapses can second-degree amendment at the desk. as follows: be. Past lapses in the program created The PRESIDING OFFICER. The Motion to proceed to Calendar No. 341, S. uncertainty for homeowners and cre- clerk will report. 2237, a bill to provide a temporary income ated significant burdens for those par- The assistant legislative clerk read tax credit for increased payroll and extend ticipating in the Flood Insurance Pro- as follows: bonus depreciation for an additional year, gram. When the program lapsed in 2010, and for other purposes. The Senator from Nevada [Mr. REID] pro- about 1,400 home sales were canceled poses an amendment numbered 2472 to The PRESIDING OFFICER. The Sen- each day during those 53 days the pro- amendment No. 2471. ator from Montana. gram lapsed. At a time when the hous- The amendment is as follows: FLOOD INSURANCE ing market is still fragile, this is some- In the amendment, strike ‘‘5 days’’ and in- Mr. TESTER. Mr. President, I rise in thing we cannot afford. sert ‘‘4 days’’. support of a bill we will take up soon For me this is an issue that hits MOTION TO RECOMMIT WITH AMENDMENT NO. 2473 to reauthorize the Flood Insurance home. The unprecedented flooding in Mr. REID. Mr. President, I have a Program. Nine months ago the Senate the Missouri River basin last year, motion to recommit the bill with in- Banking Committee passed long-term which affected folks throughout cen- structions, which is also at the desk. flood insurance reauthorization with tral and eastern Montana, particularly The PRESIDING OFFICER. The overwhelming bipartisan support. Five in Musselshell and Carbon Counties, clerk will report. months ago Senator VITTER and I, clearly demonstrates the need for reau- The assistant legislative clerk read along with 39 Members of this body, as follows: thorization and for reforms to ensure wrote our leadership urging that the that levees are certified properly and The Senator from Nevada [Mr. REID] moves bill be brought to the floor, but today, efficiently. to recommit the bill, S. 1940, to the Com- this week, we will finally consider this mittee on Banking, Housing, and Urban Af- I also care deeply about this program much needed piece of legislation, and I fairs with instructions to report back forth- because in addition to protecting Mon- thank Senator REID for his willingness with with an amendment numbered 2473. tana homeowners, there are jobs tied to bring it to the Senate floor. The amendment is as follows: directly to the Flood Insurance Pro- I want to first and foremost thank At the end, add the following new section: gram. In Kalispell, MT, two of the na- Chairman JOHNSON and Ranking Mem- SEC. ll. tional servicing organizations employ ber SHELBY for their excellent work in This Act shall become effective 3 days over 500 people—jobs that could be put drafting this bill. I commend them for after enactment. in jeopardy without a long-term agree- their efforts to build consensus on this Mr. REID. I ask for the yeas and nays ment. on that motion. important piece of legislation. The PRESIDING OFFICER. Is there a I thank my colleague Senator VITTER We must offer Americans certainty sufficient second? for his leadership and partnership in in the face of risk. Now, at long last, There appears to be a sufficient sec- working with me to help influence this comprehensive, bipartisan, long-term ond. bill in a way that reflects broad bipar- reauthorization of the National Flood The yeas and nays were ordered. tisan support. Together we added a Insurance Program is within reach. AMENDMENT NO. 2474 number of provisions to improve the Let’s quickly act to provide security Mr. REID. Mr. President, I have an initial draft. These provisions include and piece of mind to the 6 million amendment to the instructions at the one that addresses a critical issue in Americans who rely on the National desk. my State. Flood Insurance Program. The PRESIDING OFFICER. The When this bill is passed, the Army I yield the floor and suggest the ab- clerk will report. Corps of Engineers and FEMA will fi- sence of a quorum.

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.036 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4449 The PRESIDING OFFICER. The [Rollcall Vote No. 166 Leg.] In the past 2 years, the availability clerk will call the roll. YEAS—89 and popularity of synthetic drugs like The legislative clerk proceeded to Akaka Feinstein Menendez K2, Spice, Bath Salts, and 2C–E has ex- call the roll. Alexander Franken Merkley ploded. Ayotte Gillibrand Mikulski These drugs are labeled and disguised Mr. CONRAD. Mr. President, I ask Barrasso Graham Moran unanimous consent that the order for Baucus Grassley Murray as legitimate products to circumvent the quorum call be rescinded. Begich Hagan Nelson (NE) the law. Bennet Harkin The PRESIDING OFFICER. Without Nelson (FL) They are easily purchased online, at Bingaman Heller Portman gas stations, in shopping malls and in objection, it is so ordered. Blumenthal Hoeven Pryor other novelty stores. Blunt Hutchison Reed Boozman Inhofe Reid Poison control centers and emer- f Boxer Inouye Risch gency rooms around the country are Brown (MA) Isakson Roberts Brown (OH) Johanns reporting skyrocketing cases of calls Rockefeller FOOD AND DRUG ADMINISTRATION Cantwell Johnson (SD) and visits resulting from synthetic SAFETY AND INNOVATION ACT Cardin Johnson (WI) Schumer Sessions drug use. Carper Kerry The physical effects associated with CLOTURE MOTION Casey Klobuchar Shelby Chambliss Kohl Snowe this use include increased agitation, The PRESIDING OFFICER. Under Stabenow the previous order and pursuant to rule Coats Landrieu elevated heart rate and blood pressure, Cochran Lautenberg Tester hallucinations, and seizures. XXII, the Chair lays before the Senate Thune Collins Leahy A number of people across the coun- the pending cloture motion, which the Conrad Lee Toomey try have acted violently while under clerk will state. Coons Levin Udall (NM) Corker Lieberman Vitter the influence of the drug, dying or in- The assistant legislative clerk read Cornyn Lugar Warner juring themselves and others. as follows: Crapo Manchin Webb DeMint McCain Whitehouse Just a few weeks ago a man in CLOTURE MOTION Durbin McCaskill Wicker Miami, Florida attacked a homeless We, the undersigned Senators, in accord- Enzi McConnell Wyden man and ate nearly half his face before ance with the provisions of rule XXII of the NAYS—3 police had to shoot him to stop him. Standing Rules of the Senate, hereby move Burr Paul Sanders Two weeks ago, police in upstate New to bring to a close debate on the Reid motion York tazered a woman who was chok- to concur in the House amendment to S. 3187, NOT VOTING—8 ing her 3-year-old son after smoking the FDA Safety and Innovation Act. Coburn Kyl Shaheen bath salts. Harry Reid, Tom Harkin, Sheldon White- Hatch Murkowski Udall (CO) house, Kent Conrad, Jack Reed, Chris- Kirk Rubio These ongoing and mounting trage- dies underscore the fact that Congress topher A. Coons, Mark Begich, John F. The PRESIDING OFFICER. On this must take action to stop these drugs Kerry, Charles E. Schumer, Barbara A. vote, the yeas are 89, the nays are 3. Mikulski, Benjamin L. Cardin, Robert from causing further damage to our so- Three-fifths of the Senators duly cho- Menendez, Joseph I. Lieberman, Mary ciety. L. Landrieu, Richard Blumenthal, sen and sworn having voted in the af- I introduced the David Mitchell Patty Murray, Tom Carper. firmative, the motion is agreed to. Rozga Act a year ago last March to ban Mr. GRASSLEY. Mr. President, 2 The PRESIDING OFFICER. By unan- the drugs that comprised K2. years ago a constituent of mine named imous consent, the mandatory quorum My colleagues Senators SCHUMER, David Rozga committed suicide shortly call has been waived. KLOBUCHAR, and PORTMAN have also after smoking a product called K2—a The question is, Is it the sense of the joined me to ban synthetic drugs in- synthetic form of marijuana. cluding bath salts and 2–CE com- Senate that debate on the motion to A week before he passed away David pounds. concur in the House amendment to S. had graduated from Indianola High Today our separate bills are included 3187, a bill to amend the Federal Food, School. as part of the House and Senate agree- Drug, and Cosmetic Act to revise and He was looking forward to attending ment on the FDA User Fee bill we will extend the user-fee programs for pre- my alma mater, the University of be voting on shortly. scription drugs and medical devices, to Northern Iowa, that fall. I thank all who have worked very establish user-fee programs for generic David and his friends spent the week hard to get my bill, as well as the other drugs and biosimilars, and for other after graduation going to parties and bills banning synthetic drugs, through purposes, shall be brought to a close? celebrating their achievements. The yeas and nays are mandatory Some of David’s friends heard about Congress. under the rule. K2 from some other friends who were I especially want to thank Mike and Jan Rozga and their family for their The clerk will call the roll. home from college. tireless efforts to prevent more tragedy The assistant legislative clerk called They were told that if you smoked this product like marijuana you could from befalling other families. the roll. This legislation will drastically help Mr. DURBIN. I announce that the get a high. David and his friends were about to to remove these poisons from the store Senator from New Hampshire (Mrs. shelves and protect our children from SHAHEEN) and the Senator from Colo- go to a concert and thought smoking K2 before would be nothing but harm- becoming more victims. I urge my col- rado (Mr. UDALL) are necessarily ab- leagues to support cloture on this bill. sent. less fun. However, shortly after smoking K2, The PRESIDING OFFICER. The Sen- Mr. THUNE. The following Senators David became highly agitated and ter- ator from Connecticut. are necessarily absent: the Senator rified. NOMINATION OF DONNA MURPHY from Oklahoma (Mr. COBURN), the Sen- His friends tried to calm him down Mr. LIEBERMAN. Madam President, ator from Utah (Mr. HATCH), the Sen- and once he appeared calmer he de- I thank my friend and colleague from ator from Illinois (Mr. KIRK), the Sen- cided to go home instead of going out Washington, Senator MURRAY, for ator from Arizona (Mr. KYL), the Sen- with them. yielding to me for a moment to make a ator from Alaska (Ms. MURKOWSKI), and Tragically, David took his own life unanimous consent request regarding the Senator from Florida (Mr. RUBIO). shortly after returning home—only the nomination of Donna Murphy of Further, if present and voting, the about 90 minutes after smoking K2 for the District of Columbia to be an asso- Senator from Utah (Mr. HATCH) would the first time. ciate judge on the DC Superior Court. have voted ‘‘yea.’’ The only chemicals in his system at This nomination was favorably re- The PRESIDING OFFICER (Mrs. the time of his death were those that ported by the Homeland Security and HAGAN). Are there any other Senators comprised K2. Governmental Affairs Committee on in the Chamber desiring to vote? David’s tragic death is one of the June 29, 2011. That is almost 1 year ago. The yeas and nays resulted—yeas 89, first in what has been a rapidly grow- For that year, this nomination has nays 3, as follows: ing drug abuse trend. been stopped from a vote. I come to the

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.042 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4450 CONGRESSIONAL RECORD — SENATE June 25, 2012 floor today to say it is time for this to sistant for Constitutional Policing for vision’s highest overall award. She has also stop. the LAPD who negotiated the consent received the Division’s highest litigation In fairness to this able nominee, she decree between the LAPD and Depart- award, the Walter W. Barnett Award, in 1995. deserves an up-or-down vote. She would ment of Justice. Mr. Chaleff wrote that In addition, Ms. Murphy has consistently re- bring a wealth of talent and experience ceived performance awards recognizing her during negotiation and implementa- outstanding contributions to the Division’s to the job. tion of the consent decree Ms. Murphy work. Donna Murphy has been a career at- earned the respect and admiration of When I returned to the Civil Rights Divi- torney in the Department of Justice LAPD personnel with whom she dealt. sion in October 2009, I was pleased to find for four administrations—two Demo- Mr. Chaleff also notes that contrary to that Ms. Murphy had remained in the Divi- cratic and two Republican—and has re- the vague and unsubstantiated allega- sion, as I knew she was someone I could rely ceived strong support from senior offi- tions made against her, Ms. Murphy at upon in helping to ensure full and fair en- cials for whom she worked in each one all times acted honorably, ethically, forcement of civil rights laws. I have the of those administrations. highest regard for her abilities and know her and intelligently. to be a person of great character. John Dunne, the Assistant Attorney We have similar letters from law en- General for Civil Rights under Presi- Please do not hesitate to contact me if you forcement officials praising her work have any questions about my experience dent George H.W. Bush praised Ms. negotiating similar consent decrees working with Ms. Murphy. Murphy as ‘‘extremely smart, hard- with the Pittsburgh Bureau of Police, Sincerely, working, and fair-minded.’’ the city of Steubenville, OH, and the THOMAS E. PEREZ, Bill Lee, the Assistant Attorney Gen- New Jersey State Police. Assistant Attorney General. eral for Civil Rights under President It is past time the Senate approve Clinton recalls Ms. Murphy as ‘‘one of LOS ANGELES POLICE DEPARTMENT, this nomination and send this qualified the best lawyers in the Division who Los Angeles, California, July 14, 2011. was known for her fairness, integrity, nominee to the bench and let her serve Re Donna M. Murphy. the city that has been her home for smarts, legal skills, dedication and ex- Hon. JOSEPH I. LIEBERMAN, Chairman, ceedingly hard work.’’ more than 20 years. Senate Homeland Security and Governmental Wan J. Kim, the Deputy Assistant Mr. President, I ask unanimous con- Affairs Committee, Dirksen Senate Office Attorney General and Assistant Attor- sent that these letters, as well as the Building, Washington, DC. ney General for Civil Rights under letters from former Justice Depart- Hon. SUSAN M. COLLINS, Ranking Member, ment officials that I cited earlier, be Senate Homeland Security and Governmental President George W. Bush rec- Affairs Committee, Dirksen Senate Office ommended Ms. Murphy for the D.C. Su- printed in the RECORD. There being no objection, the mate- Building Washington, DC. perior Court believing that she pos- DEAR SENATORS LIEBERMAN AND COLLINS: I sessed the qualities he has seen in ex- rial was ordered to be printed in the write in strong support of the nomination of emplary jurists. Under Mr. Kim, Donna RECORD, as follows: Donna M. Murphy to the Superior Court of Murphy received the division’s highest U.S. DEPARTMENT OF JUSTICE, Washington, D.C. I am a senior police execu- award in 2007, the John Doar Award for CIVIL RIGHTS DIVISION, tive in the Los Angeles Police Department Excellence and Dedication, an award Washington, DC, August 24, 2011. (LAPD). I had a substantial number of deal- Hon. JOSEPH LIEBERMAN, ings with Ms. Murphy in her capacity as that was established under the first Chairman, Senate Homeland Security and Gov- Deputy Chief of the Special Litigation Sec- Bush administration. ernmental Affairs Committee, Washington, tion of the Civil Rights Division of the So there is no rational reason at all DC. United States Department of Justice (DOJ) to continue to deny this nominee an up DEAR MR. CHAIRMAN: I write this letter to in connection with negotiation and imple- or down vote. strongly recommend Donna Murphy to the mentation of a Consent Decree with the A native of Norristown, PA, Ms. Mur- Superior Court of Washington, DC. I started LAPD and the City of Los Angeles, relating phy fell in love with Washington, DC in the Civil Rights Division at the Depart- to the conduct and operation of the police during a visit when she was just 12 ment of Justice as an Honors Program hire department. Ms. Murphy’s and the DOJ ob- years old. She moved here to attend in 1989, where I served as a prosecutor in the jective was to improve the LAPD and she at college at American University, where Criminal Section. I have also served as Dep- all times acted honorably, ethically, and in- uty Assistant Attorney General in the Divi- telligently. She never exhibited prejudice or she received her Bachelor of Science in sion, and I now have the privilege of serving bias or rigidity of position. As a lawyer, I Political Science in 1986. as the Assistant Attorney General. During can ensure you that Ms. Murphy will have an From American University, she went this extensive experience working in the Di- exemplary judicial temperament, is highly to Yale Law School—a decision I natu- vision, I have had the pleasure of working intelligent, and will render equal justice to rally admire—and received her law de- with Ms. Murphy, who joined the Division in all, without bias or favor. Her decisions will gree in 1989. 1990, shortly after I was hired. be firmly based in the law and will be seen Since October 1990, she has worked Ms. Murphy has also held a variety of posi- by all sides as fair and just. for the Justice Department’s Civil tions during her tenure in the Civil Rights I was President of the Los Angeles Board Rights Division on a variety of cases, Division, including serving as both a trial at- of Police Commissioners and a member of including voting rights, discrimination torney and also as a manager. Although she the team that conducted the negotiations began in the Voting Section, she has also with DOJ. These negotiations took six in credit, housing and public accom- served in the Special Litigation Section and months during which Ms. Murphy conducted modations, and allegations of police the Housing and Civil Enforcement Section. herself with professionalism and in the man- misconduct. The breadth and depth of her experience in ner that all attorneys should when in a simi- It is her work on these police cases the Division enforcing many of our nation’s lar situation. After the negotiations con- that has brought about some criticism, most cherished civil rights laws is nearly un- cluded and the decree approved by the court, but not much. paralleled. While working with her over the I returned to private practice. When William Both prior to the Committee’s ap- last two decades, I have witnessed her profes- Bratton was appointed Chief of the Los An- proval of Ms. Murphy’s nomination and sionalism, intellect, and extraordinary judg- geles Police Department (Department), he afterwards, Committee staff inves- ment at work. Ms. Murphy treats everyone requested that I join the Department and as- with respect, and has shown uncommon sist in the Department’s compliance with the tigated the criticism and found no evi- abilities as a leader. Her tactical and analyt- decree. In that capacity I had the oppor- dence to support the charge that she ical legal skills have allowed her to quickly tunity to observe the conduct of Ms. Murphy would be negative to police. master new, and complex, areas of the law. and again found her to be professional, intel- In fact, we have received letters of The breadth of her experience across three ligent and fair. It has been suggested that support for Ms. Murphy from leading different Sections of the Division illustrates because Ms. Murphy worked in the Special police officials, including one group in her extraordinary abilities in this regard. Litigation Section, she is somehow biased Los Angeles, CA, for her work in nego- Her commitment to the Department of against the police. Throughout the Consent tiating and implementing consent de- Justice and to the enforcement of our na- Decree negotiations and implementation, crees regarding allegations that the tion’s promise of equal opportunity has been she manifested a clear understanding of the apparent to me from the beginning of my ex- issues facing the LAPD and, where possible, Los Angeles Police Department had periences working with her, and it has been she suggested resolutions that demonstrated been systematically violating people’s apparent to the leadership of the Division in her understanding of the job of the police civil rights. both Democratic and Republican administra- and the pressures facing the officers per- The Committee received a letter tions. For example, in 2007, she received the forming their duties and never exhibited any from Gerald Chaleff, the Special As- Division’s John Doar Award, which is the Di- indication of prejudice against police officers

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or the Department. She earned the respect WHITEMAN OSTERMAN & HANNA LLP, moving into an area of serious substantive and admiration of the LAPD personnel with Albany, New York, October 7, 2011. change. whom she dealt. As the LAPD’s executive in Re Nomination of Donna Murphy to the Su- There is little doubt that the persistence charge of implementation of the Consent De- perior Court of the District of Columbia. and leadership of Donna Murphy; moreover her patience and understanding of the issues cree, I can assure that as difficult as it was, Hon. JOSEPH LIEBERMAN, Chairman, Ms. Murphy never did anything to cause any- Senate Homeland Security and Governmental and obstacles of concern to the City, and to one to feel anyway other than that she was Affairs Committee, the members of the Police Department, were fair and only trying to assist. U.S. Senate, Washington, DC. the basis for much of the progress made with The Consent Decree was negotiated in per- Decree compliance during her tenure. She Hon. SUSAN COLLINS, Ranking Member, fect good faith by the Special Litigation Sec- consistently sought information to insure Senate Homeland Security and Governmental tion and that the goals and intentions of the she had a clear understanding of the organi- Affairs Committee, Consent Decree were in no way a reflection zational and operational difficulties faced by U.S. Senate, Washington, DC. of anti-police bias. Indeed, the Decree aug- the police and in my opinion, made decisions DEAR CHAIRMAN LIEBERMAN AND SENATOR mented police professionalism, promoted of- that were professional and fair to all con- COLLINS: I write to support the nomination ficer safety, helped to restore public trust cerned. Accordingly, I am pleased to add my of Ms. Donna Murphy to be a Judge on the and confidence, and made the LAPD an even support for her appointment to the Superior Superior Court of the District of Columbia. stronger law enforcement agency. Court of Washington, D.C. Please let me know if you have any ques- From 1990 until 1993 I worked with Ms. Mur- Please let me know if you have any questions about the foregoing. I am available at phy in the Civil Rights Division of the U.S. tions regarding this information. (213) 486–8730. Department of Justice where I served as As- Very truly yours, sistant Attorney General of the Division. Very truly yours, CHARLES D. REYNOLDS, CHARLIE BECK, During that time, Ms. Murphy was an attor- Police Practices Consultant. Chief of Police. ney in the Voting Rights Section and I met GERALD L. CHALEFF, regularly with her, reviewing a number of BLACKS IN LAW ENFORCEMENT Special Assistant for Constitutional Policing. her reports and recommendations concerning OF AMERICA, very complex and sensitive pre-clearance ap- Washington, DC, September 26, 2011. LEWIS, FEINBERG, LEE, plications pursuant to Section 5 of the Vot- Re Ms. Donna M. Murphy. RENAKER & JACKSON, P.C., ing Rights Act. Hon. JOSEPH I. LIEBERMAN, Oakland, California, October 28, 2011. From those personal interactions, I be- Chairman, U.S. Senate Homeland Security and Re Nomination of Ms. Donna Murphy to the came very impressed by her legal intellect Governmental Affairs Committee, Wash- D.C. Superior Court. and her knowledge and commitment to the Division’s mission and work. She is ex- ington, D.C. 20510 Hon. JOSEPH LIEBERMAN, Chairman, tremely smart, hardworking and fair-mind- Hon. SUSAN M. COLLINS, Senate Homeland security and Governmental Ranking Member, U.S. Senate Homeland Secu- Affairs Committee, ed. In 2007, for her significant contributions to rity and Governmental Affairs Committee, U.S. Senate, Washington, DC. the work of the Division, Ms. Murphy re- Washington, DC. Hon. SUSAN COLLINS, Ranking Member, ceived the Division’s highest award—the I am pleased to offer this letter in support Senate Homeland Security and Governmental John Doar Award for Excellence and Dedica- of the nomination of Ms. Donna M. Murphy Affairs Committee, tion. When, as Assistant Attorney General, I to the Superior Court of Washington, D.C. I U.S. Senate, Washington, DC. am a retired D.C. Metropolitan Police Officer initiated that award, I had in mind a recipi- DEAR CHAIRMAN LIEBERMAN AND RANKING and retired Executive Director of the Na- ent with qualities which Ms. Murphy has MEMBER COLLINS: I write in support of the tional Black Police Association (NBPA). The faithfully demonstrated in the various as- nomination of Ms. Donna Murphy to be a NBPA is an advocacy organization estab- signments she has discharged with distinc- judge of the Superior Court of the District of lished to work on behalf of African Ameri- tion. Columbia. I was Assistant Attorney General cans in Law Enforcement involving the pre- I strongly recommend your confirmation for Civil Rights from the end of 1997 to the vention and intervention of police abuse and of her nomination and, if I can be of any as- beginning of 2001 where I became familiar misconduct as well as other criminal justice sistance, would welcome your request. with the work of Ms. Murphy who was an at- policies and practices that have a negative Respectfully, torney in the Voting Rights and the Special impact on people and communities of color. OHN R. DUNNE. Litigation Sections, two Sections that en- J After the establishment of the Special force important civil rights protections. Litigation Section of the Civil Rights Divi- After my time, I understand Ms. Murphy AUGUST 21, 2011. sion, the organization began to work very worked in the Housing and General Litiga- Re: Donna M. Murphy. closely with the section and its staff attor- tion Section, another high profile Section. Hon. JOSEPH I. LIEBERMAN, neys. Ms. Murphy was assigned to work with I recall Ms. Murphy as one of the best law- Chairman, U.S. Senate Homeland Security and a variety of cases involving the investigation yers in the Division who was known for her Governmental Affairs Committee, of police practices in cities that the NBPA fairness, integrity, smarts, legal skills, dedi- Washington, DC. had brought to the attention of the Depart- cation, and exceedingly hard work. Ms. Mur- Hon. SUSAN M. COLLINS, ment of Justice. phy was recognized for her skills and abili- Ranking Member, U.S. Senate Homeland Secu- Ms. Donna M. Murphy and her staff worked ties by being assigned some of the most sig- rity and Governmental Affairs Committee, during that time against a great deal of re- nificant and sensitive investigations and Washington, DC. sistance to the necessary changes needed for cases and for being assigned managerial du- I am pleased to write this letter in support our nations police departments which most ties supervising teams of other lawyers. I of the nomination of Donna M. Murphy to particularly remember her excellent work in were the results of court ordered consent de- the Superior Court of Washington, D.C. I am supervising a team of lawyers who prepared cree. The National Black Police Association a retired police chief and a Past President of and filed a police misconduct case against was honored to work with Ms. Murphy and the International Association of Chiefs of the Los Angeles Police Department. Back found her very dedicated to the creation of Police. Since 1998 I have been working with then the LAPD was a police department rife fairness and justice for all involved the con- with problems that resulted in harm to mi- the Special Litigation Section of the Civil sent decree compliance. nority communities as well as lack of law Rights Division of the United States Depart- So, as a result of the positive and produc- enforcement for those communities. Today ment of Justice (DOJ) in a variety of capac- tive relationships created during my tenure the LAPD is appropriately lauded as a de- ities dealing with police practices and re- as Executive Director of the National Black partment that deals with minority commu- form. It was during one such assignment Police Association, I am please to add my nities with sensitivity and fairness. Much of that I met and worked with Donna Murphy. support to the nomination of Donna M. Mur- the credit for the dramatic difference is at- In 1997, the U.S. DOJ and the City of Steu- phy to the Superior Court of Washington, tributable to the role played by the Division benville, Ohio entered in to a Consent Decree D.C. in the case that Ms. Murphy had so much to regarding police practices. I was appointed Please let me know if there any additional do with both in its beginnings, the negotia- as an agent of the Federal Court to audit questions regarding this correspondence. tion of a pioneering consent decree and the compliance with the Decree. As one can Sincerely, implementation of the decree with LAPD imagine, even though the Decree was nego- RONALD E. HAMPTON, leaders. tiated and agreed upon by the parties (the Director. I am happy to join predecessors and succes- City and DOJ) there was considerable insti- UNANIMOUS CONSENT REQUEST sors as former Assistant Attorneys General tutional resistance to the changes in police Mr. LIEBERMAN. Madam President, for Civil Rights from several different Ad- practices outlined in its several require- I ask unanimous consent that at a time ministrations who have joined together to ments. Donna Murphy was the supervisor to be determined by the majority lead- support Ms. Murphy’s nomination. overseeing line attorneys assigned this mat- If I can be helpful to the Committee, please ter during the period 2000–03, which was a er, in consultation with the Republican feel free to call me. time when there was heightened resistance leader, the Senate proceed to executive Sincerely, to the Decree requirements since the easier session to consider the following nomi- BILL LANN LEE. tasks had been accomplished and we were nations: Calendar No. 231; that there be

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We cannot yielding back of time, the Senate pro- people and products to travel across afford to keep passing the buck with ceed to a vote without intervening ac- the 48 States. these short-term extensions and dis- tion or debate on Calendar No. 231; that In the 1950s, the 1960s, the 1970s, and rupting the ability of businesses to the motion to reconsider be considered the 1980s, we had an infrastructure plan for the future. made and laid upon the table, with no which was the envy of the world—an This past weekend I visited El Meson intervening action or debate; that no infrastructure the likes of which the Restaurante, a family-owned res- further motions be in order, that any world had never seen. Since then, we taurant located near the I–75 mod- related statements be printed in the have not done quite so well. Our Nation ernization project in West Carrollton RECORD, that the President be imme- used our postwar infrastructure boom in Montgomery County, OH, in south- diately notified of the Senate’s action, to become an economic superpower, west Ohio, near Dayton. I spoke with and the Senate then resume legislative similar to how the GI bill helps mil- the owner Bill Castro. I asked him: session. lions of families who take advantage of What happens if the bill expires and The PRESIDING OFFICER. Is there it—soldiers, veterans, and families— this project is delayed? He tells me objection. yet at the same time creating pros- that construction surrounding the res- Mr. MCCONNELL. Madam President, perity for the whole country. Infra- taurant has already cut into El Senator DEMINT has some concerns structure building helps those men and Meson’s profits. I have eaten at that about this nomination. Therefore, at women who are actually doing the con- restaurant three or four times. It has his request, I object. struction, doing the work on the high- always been crowded. The food is good, The PRESIDING OFFICER. Objec- ways and bridges and water and sewer the hospitality is great, and the owners tion is heard. systems, but it also helps the compa- are friendly and embracing. It is a Mr. LIEBERMAN. Madam President, nies and the workers who are manufac- great place. But because of this delay— I am going to keep returning to the turing the steel and the concrete and which happens from time to time, I un- floor of the Senate in fairness on this the glass that goes into infrastructure, derstand, and should—he has had to nomination. She is such a deserving and it also helps the prosperity of soci- scale back his own salary, rather than nominee and at least deserves a vote up ety as a whole. lower his workers’ wages and reduce or down. A truck leaving Toledo, OH, could be the staff. He knows this is good for I yield the floor. in Miami, FL, in less than a day. A Montgomery County, for Dayton, and Mrs. MURRAY. Madam President, I family could drive from one corner of for the Miami Valley, but it is clear if ask unanimous consent that following Ohio—from Conneaut, the county my this project gets delayed it will do seri- my remarks, the Senator from Ohio, wife was born in—to North Bend on the ous damage to his restaurant and to Mr. BROWN, be recognized, and fol- other end of the State in several hours the other small businesses in the area. lowing that, Senator WHITEHOUSE be instead of a whole day. It is clear business owners in my recognized. We know infrastructure investments State are doing their jobs. It is time The PRESIDING OFFICER. Without are forward thinking, with payoffs that the House of Representatives does its objection, it is so ordered. last for decades, yet also benefit our job and works with us to pass this The PRESIDING OFFICER. The Sen- Nation—our small businesses, our highway bill, then get it back to the ator from Washington is recognized. workers—both today and for genera- Senate and the House so we can vote (The remarks of Mrs. MURRAY per- tions to come. So it is unacceptable on it. We know what is at stake: Jobs taining to the introduction of S. 3340 that at a time of still too high unem- created by infrastructure investments are located in today’s RECORD under ployment—even though the unemploy- are almost always good-paying middle- ‘‘Statements on Introduced Bills and ment rate in my State has dropped be- class jobs. Whether they are the con- Joint Resolutions.’’) tween 2 and 3 percent in the last 3 struction jobs or the manufacturing THE HIGHWAY BILL years, it is still too high—Washington jobs producing the products that go Mr. BROWN of Ohio. Madam Presi- politicians, for whatever reason, con- into the construction, these jobs typi- dent, I come to the floor this evening tinue to block progress on this bill. cally provide workers with health care to discuss the bipartisan transpor- No one in this Congress should be and retirement benefits and are the tation jobs bill that has been lingering proud of the condition of our roads or kinds of jobs our neighbors need to cre- since March 14. March 14 was pretty the safety of our bridges. No one in this ate a strong middle class. These jobs early in the construction season. If the Congress should be proud of the fact enable people to buy a home, to save House had moved as quickly as they the world’s newest airports and most for their children’s college education, should have, if the House were not, ap- modern train stations are not in the and plan for the future. parently, held hostage by some tea United States of America, as they were These investments not only create party members who think transpor- in the 1950s, 1960s, the 1970s, and the construction jobs, they improve our tation should be a State issue and the 1980s. They are being built overseas. No Nation’s economic efficiency, obvi- Federal Government shouldn’t be in- one in this Congress should be proud of ously creating more prosperity. This volved, there would have been so many creating new hurdles to progress, of ob- bill is about rebuilding our infrastruc- more jobs created in the Presiding Offi- struction, when the need is so great for ture as much as it is about rebuilding cer’s State of North Carolina and in us to create new jobs. our middle class. It is time for Con- Ohio and elsewhere. Those tea party Historically, infrastructure has been gress to pass the highway bill. There is members should think about President a bipartisan issue. There is no so such simply too much at stake not to. Eisenhower’s legacy when they talk thing as a Democratic or Republican I suggest the absence of a quorum. about transportation being a State and bridge. The most recent extension is The PRESIDING OFFICER. The not a Federal issue. slated to expire Saturday at midnight. clerk will call the roll. The Senate passed this job-creating We can’t afford to keep passing short- The bill clerk proceeded to call the economic development bill more than term extensions. We need to think roll. 100 days ago, but this historically bi- about consequences for businesses that Mr. WHITEHOUSE. Madam Presi- partisan highway bill remains stalled. plan for the long term. Because Con- dent, I ask unanimous consent that the We know investments in infrastructure gress keeps passing inch-by-inch, order for the quorum call be rescinded. mean jobs directly. We know invest- month-by-month extensions, busi- The PRESIDING OFFICER. Without ments in infrastructure mean economic nesses can’t plan, workers can’t plan, objection, it is so ordered. development in the future. President State departments of transportation SUPREME COURT DECISIONS Eisenhower and Congress established can’t plan. It hurts the contractor, who Mr. WHITEHOUSE. Madam Presi- the Interstate Highway System not too is unsure whether she will have the dent, this is the week for the Supreme many years after I was born, in the funds to buy a new bulldozer; the crane Court to release opinions from dozens 1950s. A generation of Americans was operator, who is unsure of where his of cases that it has been considering set to work carving freeways, paving next job will be; and it hurts the small over the past term. In most of these

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.046 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4453 important cases, the Court followed its inside out is the right of free speech, Court of any opportunity to consider a usual practice of allowing the parties and the power structure served is the record. Ordinarily, the Supreme Court to file detailed legal briefs and to vast and unprecedented corporate has a record that comes up to it from present oral arguments to make their power structure that exists today. the court decisions below. But, as my side of the case before the Court Under Citizens United, under this in- colleagues may recall, the parties in reached its decision. In one case, how- side-out right they have created, you Citizens United did not ask the Court ever, it decided an issue vital to the on- now enjoy the free speech right to hear to consider the constitutionality of going function of our democracy, and it as much corporate speech as they want limiting corporate independent expend- decided that case without even allow- to bombard you with. If you are a reg- itures. That was not addressed below. ing the parties the opportunity to ular human, you are on your own. If What happened is that the conservative write legal briefs on the merits and to you are a CEO, you can access your Supreme Court Justices took it upon argue their case before the Court. corporate treasury to drown out the themselves to ask a new question and In the Montana case, American Tra- voices of all of your workers. If you are to answer that question they them- dition Partnership v. Bullock, the a massive multinational corporation or selves had asked. In doing it this way, Court’s five-man conservative bloc if you are a billionaire or a multi- the Justices simply declared, with no doubled down on a historic error they billionaire, you now have a right to factual basis, that massive, inde- made 2 years ago in Citizens United. dominate the paid media airwaves, and pendent corporate expenditures posed Citizens United, I am confident, will we have the free speech right to have no risk of corruption to our elections. mark one of the lowest points in the to listen to all of that. They were wrong, as is obvious to most Supreme Court’s history. At least if you are a billionaire, you people. The case will ultimately stand along- are still a human being. And I don’t The case the Court decided today, side Lochner v. New York and other say this judgmentally; this is a legal American Tradition Partnership, cre- such decisions in the Supreme Court fact. If you are a corporation, you have ated an opportunity for the Court to gallery of horrible decisions. no soul, you have no conscience, you have dug itself out from the colossal A telltale of these horrible court de- have no altruism. You have none of the mistake it made in Citizens United. It is an interesting background in com- cisions is that they create rights of the characteristics that are special to hu- parison to Citizens United because the powerful against the powerless, turning mankind. You are a legal fiction. You case came out of Montana, where there the very concept of ‘‘rights’’ inside out. are a financial mechanism created for is an extensive record within the State Ordinarily, a right is something that the massing and the efficient use of stands against power. That is why it is of Montana of historical evidence of capital. In the economic sphere, the immense corruption created in that carved out as a right; it is because it value of that corporate structure is im- State by corporate influence and cor- offends against the power structure, mense, there is no doubt about it. It porate campaign money dating all the and yet we value it and we defend it. has provided great value to our society. way back to the copper barons who And our courts have as their very pur- But in the political sphere, it is dan- bought and sold Montana State govern- pose in our system of government the gerous. But for these five Justices who ment in the bad old days. The Montana purpose to be the guardians of those constantly support corporate interests, court also found substantial evidence rights, the guardians of those rights to protect the power that comes from that Montana voters believe that cor- against whatever the structure of being able to provide or promise or porate election expenditures lead to power is in our society. That is why we threaten massive anonymous expendi- corruption and that this belief has con- give judges long or lifetime tenure. tures on political attack ads, well, that tributed in Montana to widespread cyn- That is why conflicts of interest in the is just how you see the world. icism and low voter turnout. Those judiciary are so particularly con- One day the Citizens United decision were findings of fact based on an actual cerning. That is why some decisions we will lie next to Lochner on the junk record, and the Montana Supreme take away from officialdom entirely pile of judicial error and prejudice. Court carefully reviewed those findings and give them to a jury of our peers. There is too much wrong with it for it of fact. That is what it is supposed to That is why it is a crime to tamper ultimately to survive. But, sadly, do—not make findings of fact but re- with a jury. We do all of those because today is not that day, and the five con- view them. The Montana court con- we want courtrooms insulated from servative Justices have chosen, instead cluded that the State had a compelling power so that courts can do the essen- of correcting their error, to double- interest justifying the law based on the tial work of protecting rights against down on it. evidence in the record. the predations of power. The central and deeply flawed The corporations then came in and Look at the Lochner decision, for in- premise of Citizens United was the con- asked the U.S. Supreme Court to over- stance, and see how that Court turned servative majority’s declaration that rule the Montana Supreme Court’s de- the whole question of rights inside out. vast corporate independent expendi- cision, arguing that it was inconsistent Seeking to defend the prevailing eco- tures ‘‘do not give rise to corruption or with Citizens United. At that point, I nomic power structure, the Supreme the appearance of corruption.’’ They joined with Senator JOHN MCCAIN, who Court held that bakers had a constitu- had no record on which to make that has long been a national leader on cam- tional right—under a theory of freedom decision. None had ever run in an elec- paign finance issues, in filing a bipar- to contract—to agree to work whatever tion before. They had no basis for mak- tisan amicus brief with the Supreme hours their employers wanted to make ing that decision, but that was the dec- Court. In our brief, Senator MCCAIN them work, without overtime, without laration they issued. and I challenged that central premise rest, a right on the part of the bakers First, whether independent expendi- in Citizens United—that phony premise to enter into a contract where their tures by corporations pose dangers of about the corrupting potential of out- employers could tell them they could corruption or dangers of the appear- side political expenditures being non- make them work whatever they want- ance of corruption is a factual question existent. The extensive factual record ed. Looking back now, that seems al- that depends on the actual workings of developed in Montana and the facts most silly, but if you were a judge af- the electoral system. Supreme courts that have developed since Citizens filiated with an economic structure aren’t supposed to make findings of United on the ground nationally pro- that saw workers as essentially dispos- fact. So one of the first errors in the vided the Court with plenty of evi- able, this question of workers’ rights to Citizens United decision was that they dence—evidence that it lacked because work reasonable hours seems, well, un- drove off the road of proper judicial of the way it had approached Citizens reasonable. And the Lochner decision procedure, across the rumble strip, and United. justifiably lies on the junk pile of judi- they started making findings of fact— Our brief showed that Citizens United cial history, a broken monument to the and they did so in a very dangerous stood on a pair of false and flawed fac- prejudice and error of that Court. way. tual assumptions about our elections. Citizens United and now the Montana The peculiar way the conservative First, the Citizens United decision as- decision join this gallery of judicial Justices brought the Citizens United sumed that outside political expendi- horribles. Here, the right they turned question before the Court deprived the tures were going to be independent,

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It would mean maybe some have a fully developed lower court reveal close coordination between cam- fundraising and bundling by the cor- record to proceed on that happens to paigns and these so-called independent porate executives and by the corporate show how wrong they were, they have expenditures. Wealthy donors, who lobbyists. I suppose that is something a no interest in even looking at that have maxed out their contributions to candidate wouldn’t necessarily want, record. the candidate, now can use candidate- but it is not a very big deal. It happens We need to act now to fix our broken specific super PACs as convenient prox- all the time. And I don’t think it campaign finance system. The Su- ies to make the functional equivalent throws much weight around here. preme Court had the chance to correct of excess campaign contributions. Today, after Citizens United, the its error. These five conservative Jus- Campaigns and their super PACs have threat isn’t of $5,000 and a couple of tices refused to correct their error. closely connected staff, they have fundraisers, the threat is of unlimited, They doubled down on their error. shared consultants, they openly coordi- anonymous corporate spending against They have ignored the evidence of their nate on fundraising, and they work to- you—enough to defeat or elect a can- error that we all see around us, so we gether on advertising, with super PACs didate. And if this threat succeeds, the cannot wait. We know why they are acting, actually, as the successful sur- real danger is that there is no record doing it. We know what is going on. We rogates for the candidates in States whatsoever of the corrupt deal for reg- know it is not going to happen from where the candidate has made few ap- ulators, prosecutors, and media outlets this Supreme Court, not from those pearances or spent little money on ad- to track. five Justices, so we need to fix this on vertising. Indeed, in the Republican Sherlock Holmes famously talked in our own. Americans of all political Presidential primary a candidate-spe- one of his decisions about the dog that stripes, whether you are an occupier or cific super PAC for Senator Santorum didn’t bark. In political corruption, we tea party, they are disgusted by the in- spent millions and won the Minnesota need to be concerned about the ad that fluence of unlimited and anonymous primary for Senator Santorum when didn’t run—the ad that didn’t run be- corporate cash pouring into our elec- the candidate himself had no money to cause the politician obediently did tions, and by campaigns that succeed spend. what he or she was told. or that fail depending on how many bil- These vast expenditures are not just The brief Senator MCCAIN and I au- lionaires support the candidate. coordinated closely with candidates thored laid all of this before the Court. More and more, people in my home and campaigns, they are anonymous, We documented the close coordination State of Rhode Island and around the with the special interests behind the between campaigns and this so-called country believe their government reads keeping themselves secret from the independent spending. We detailed the sponds only to wealthy special inter- American public. As everybody in this tangled web of corporate 501(C) and ests. They see jobs disappear and wages Chamber and every American who has super PAC relationships that allow stagnate and bailouts and special deals a television set knows, the decision in wealthy interests, special interests, to for the big guys and they lose faith Citizens United opened the floodgates hide their spending from the public, that elected officials here in Wash- to unlimited corporate and special in- and we explained the various ways ington are listening to them. (Mr. MERKLEY assumed the Chair.) terest money pouring into our elec- these forms of coordinated identity For now we are left with one weapon tions. Using phony shell corporations, laundering by special interests create in the fight against the overwhelming 501(c) organizations, and super PACs, the real threat of quid pro quo corrup- tide of secret special interest money, outside groups can now spend—or, im- tion. As we said in our brief, ‘‘The cam- and that one weapon is disclosure. Let portantly, they can credibly threaten paign finance system assumed by Citi- the sun shine in. At least let the Amer- to spend because that can have a big ef- zens United is no longer a reality, if it ican public know who is behind these fect in politics—overwhelming ever was.’’ And, frankly, I don’t think massive expenditures. amounts of money in support of or it ever was. Earlier this year I introduced the against a candidate without any pub- Confronted with the actual facts on DISCLOSE Act of 2012. I had immense licly disclosed paper trail. the ground in Montana and nationally, help from the Presiding Officer, Sen- Although the secretive interests be- the Supreme Court’s conservatives de- ator MERKLEY, in doing that work. We hind the anonymous spending may be cided they were going to ignore the evi- call it DISCLOSE 2.0. This legislation hidden from voters, they may be hid- dence. There is a blindfold on Lady will shine a bright light on all of this den from regulators, they may be hid- Justice. But the blindfold on Lady Jus- spending by these powerful special in- den from prosecutors, they may be hid- tice as she holds her scales aloft is sup- terests. den from the media, they will not be posed to be blindness to the parties With this legislation, which now has hidden from the candidate. They will who are before her. It is supposed to be 44 Senators cosponsoring it, every cit- be well known to the candidate. That blindness to what the interests are. It izen will know who is spending these alone allows for an undetectable quid is not supposed to be a considered and great sums of money to get their can- pro quo corruption, as the wealthy out- deliberate blindness to the evidence didates elected and to influence our side interests can award a candidate and the facts. But in this case, that is elections. Passing this law would begin with massive, anonymous spending. the blindness the Supreme Court has to remove the dark cloud of unlimited Worse than that is a type of corrup- deliberately imposed on itself—or at secret money that the Supreme Court tion I touched on a moment ago when least the five conservative Justices has cast over our American elections. I talked about threats—a corruption have. The DISCLOSE Act includes a nar- made possible by the Citizens United This conservative bloc has decided to row and reasonable set of provisions. decision that went completely uncon- perpetuate the error of Citizens United We have trimmed it down so that it sidered by the U.S. Supreme Court. without considering the facts. Montana should have wide support from Demo- They never even mentioned it. That is will not have an opportunity to file crats and Republicans. A great number the ability to threaten large and secret briefs on the merits, explaining the im- of my Republican colleagues in this expenditures without actually having portance of its laws to protect against body are on record that disclosure and to make them. A candidate could be the corruption that is its historic expe- transparency are essential in campaign quietly warned that if they don’t take rience. The attorney general of Mon- finance, so we have made every effort the right position on this issue, if they tana will not have the opportunity to to craft an effective and a fair proposal don’t vote right when the amendment stand before the Justices to defend his while imposing the least possible bur- or the bill comes up, they will be pun- State’s law. Once again, the Court has den on the covered organizations.

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.050 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4455 As Trevor Potter, a Republican, Era,’’ Steven Brill wrote that ‘‘no mat- For 8 years, she served as the first as- former Chairman of the Federal Elec- ter what was added to her plate, or sistant director, in charge of all law tion Commission, said in a statement what she reached out for to put on it enforcement, investigative, regulatory, submitted to the Rules Committee: herself, she seemed to take it in and leadership training at ATF—the Disclose 2.0 is ‘‘appropriately targeted, stride.’’ Despite the grueling 13-hour first woman to hold such a significant narrowly tailored, clearly constitu- days and 6-day weeks, Ms. Rossides post at the bureau. And she was a tional and desperately needed.’’ stayed at TSA for 10 years—with a 1- member of the Board of Directors of The same cannot be said for the con- year hiatus as senior advisor to the the Federal Law Enforcement Training servative majority’s holding in Citizens Under Secretary for Management at Center for 6 years. United, echoed again today in Amer- DHS. I think it is fair to say that today The American people have been for- ican Tradition Partnership. The con- she is one of the department’s most re- tunate that Ms. Rossides has given servative Justices’ desire to maintain spected senior executives. much of her life to the Federal Govern- their error and to keep the corporate Ms. Rossides brought critical man- ment. We are certainly better off be- money flowing represents a sad, sad agement experience to the nascent cause of it. day in the history of the Court. It will, TSA. In the tense period after Sep- f as I said earlier, one day be corrected. tember 11, 2001, she led the team of AGRICULTURE REFORM, FOOD, One day, Citizens United will lie next government and private sector officials AND JOBS ACT to Lochner v. New York and other deci- that trained and certified more than Mr. MCCAIN. Mr. President, I could 50,000 screeners in less than 6 months— sions that have disgraced the Court in not support Senate passage of S. 3240, the largest public mobilization since the past on the junk heap of judicial the ‘‘2012 Farm Bill.’’ CBO estimates history. But until that day, it is up to World War II. She oversaw the debut of the Senate’s Farm Bill will consume a all of us to work together to restore TSA’s federalized screening force at colossal amount of taxpayer dollars— control of our elections, to restore con- Baltimore Washington Airport. And at least $966 billion over 10 years. While trol of our democracy, to put it back in she led the effort to develop and imple- I agree that we need nutrition pro- the hands of the American people, to ment screener technical training and grams to assist low-income families as assure that we continue a government certification standards. well as programs to ensure farmers re- of the people, by the people, and for the Throughout her TSA tenure, Ms. ceive a fair return on their labors, the people—not a government of the big Rossides has fostered collaborative fact remains we are living in an era of corporations, by the big corporations, partnerships with stakeholders; pushed crushing national debt and runaway and for the big corporations. for more intelligence sharing; created government spending. Ultimately, the I yield the floor. leadership development programs; and American people, both farmers and f developed innovative workforce pro- consumers, lose under this bill. grams to encourage communication Farm Bill programs are ripe for re- MORNING BUSINESS and conflict management. Under her form. Unfortunately, we rejected Mr. WHITEHOUSE. Mr. President, I watch, TSA reduced its employee in- amendments to fix USDA’s sugar pro- will take a moment to go through the jury and attrition rates and raised em- grams which cost American consumers closing script, and in doing so I ask ployee morale through innovative solu- $3 billion annually in artificially high unanimous consent the Senate proceed tions like providing benefits to part sugar prices. We created several new to a period of morning business, with time personnel. so-called ‘‘shallow-loss’’ subsidy pro- Senators permitted to speak for up to Ms. Rossides moved steadily up the grams, which could balloon to $14 bil- 10 minutes each. management ladder during her tenure lion each year if crop prices drop from The PRESIDING OFFICER. Without at TSA. She has served as the Asso- today’s record high levels and return to objection, it is so ordered. ciate Administrator/Chief Support Sys- average prices. We implemented a new f tems Officer, been a Senior Advisor to $3 billion cotton program that may ex- the Deputy Secretary and the Under acerbate our ongoing trade dispute at TRIBUTE TO TSA DEPUTY Secretary for Management at DHS, and the World Trade Organization. We ADMINISTRATOR GALE ROSSIDES in 2007 she was appointed acting Dep- could have eliminated the outdated Mr. LIEBERMAN. Mr. President, uty Administrator, a position that be- mohair subsidies, but didn’t, and today I wish to pay tribute to a dedi- came permanent in January 2008. She wound up creating several new and un- cated public servant, a talented admin- has held that position longer than any necessary subsidy programs for prod- istrator, and a tireless warrior for other in the agency’s history. ucts like popcorn and maple syrup. homeland security. Transportation Se- From 2009 to January 2010, she served We’ve made some progress on imposing curity Administration Deputy Admin- as Acting TSA Administrator. As such, stricter payment limits on subsidies istrator and Chief Operating Officer she oversaw the implementation of Se- and we eliminated wasteful and dupli- Gale Rossides is retiring at the end of cure Flight and introduced other key cative USDA programs like the Catfish the month, and her departure will be a security programs, including measures Inspection Office. Unfortunately, much significant loss not just for TSA and implemented to detect and deter im- more remains to be fixed in the Sen- the Department of Homeland Security proved explosives devices that could be ate’s farm bill before I could support it. but for the American people, whom she concealed on terrorists, in the after- f has served so well throughout her 34- math of the attempted Christmas Day ADDITIONAL STATEMENTS year career in the public sector. terrorist attack. As Chairman of the Homeland Secu- This career arc more than justifies rity and Governmental Affairs Com- Steven Brill’s description of her in his TRIBUTE TO IKE LIBBY mittee, I came to understand the cen- book as ‘‘an incurable workaholic’’ who ∑ Ms. SNOWE. Mr. President, today I tral role Ms. Rossides played at TSA. would ‘‘run over or cleverly sidestep al- wish to recognize Mr. Ike Libby, who, In appearances before the Committee, most any obstacle to get to the goal.’’ with his company Hometown Energy, she impressed me as a knowledgeable It is a tribute to her character that she has worked tirelessly to ease the bur- and experienced manager whose dedica- remained universally well-liked while dens of rising home heating costs for tion to the agency helped TSA stay on doing so. the people of my home State. track through a difficult and chaotic Before she was hand-picked to help Founded in 2004 by Ike Libby and start up and develop into a more ma- launch TSA, Ms. Rossides had worked Gene Ellis, who handles the business ture agency as the years progressed. at the Bureau of Alcohol, Tobacco, and aspects of the company and owns a va- Ms. Rossides’ institutional memory, Firearms, within the Justice Depart- riety store next door, Hometown En- alone, will be irreplaceable. She was ment, for 23 years, where she started as ergy of Dixfield, ME, supplies heating one of the original six executives hired an administrative assistant. She was oil to a region that knows just how to build TSA from the ground up in co-chair of a blue ribbon panel to over- cold winter can be. With seven employ- 2001, and in his book ‘‘After: How haul ATF after the 1993 siege of the ees, Hometown Energy is a quintessen- American Confronted the September 12 Branch Davidian ranch in Waco, TX. tial local small business. Known for its

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.051 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4456 CONGRESSIONAL RECORD — SENATE June 25, 2012 long, harsh winter season, Maine’s ties.’’ Kenneth Orville Dunlap, who And, just as Ken’s commitment to heating oil providers not only sell a grew up and lived in and around Wich- his school didn’t end with the school product, they serve as barrier between ita, KS, lived up to the motto. year, his commitment to special edu- Mainers and the biting cold. A little less than 40 years ago, this cation didn’t end in the schoolyard. Relationships and care are at the Nation made a commitment to disabled Ken and his wife Jan devoted countless heart of the Hometown Energy service children—or ‘‘differently able’’ as Ken hours to volunteering with the Special structure, where, in true neighborly liked to say—that we were going to Olympics. They took students on an- spirit, it is more crucial to ensure that provide them the best possible edu- nual camping trips and chaperoned the customers are taken care of than to ad- cation in the least restrictive environ- Chisholm Prom each year. They went here to a stringent payment plan. ment. Some people saw that commit- to students’ weddings and attended Hometown Energy will often waive ment as an obstacle. Ken saw that their funerals. Even after he retired service fees and structure payments to commitment as an opportunity to help from his 37 years in public education, give as much leeway as possible during people live fuller lives. Ken continued to serve on the Sedg- the coldest months when resources are Ken had been a teacher and coach in wick County Physical & Develop- Kansas public schools for a couple of at a premium and ability to pay the mental Disabilities Advisory Board. high costs of energy may be scarce. It years when he decided to fully commit For the last year, Ken has battled is this devotion to a customer-first phi- himself to special education. In the lung cancer and on Saturday, sur- early 1970s, Ken established Wichita losophy that embodies the entrepre- rounded by his family, he took his last Public Schools’ first Adaptive Physical neurial spirit of Maine small busi- breath. This remarkable man’s life was Education curriculum at Levy Special nesses. The flexibility and under- celebrated and remembered this week Education Center. He went on to teach standing exhibited by Hometown En- by family, friends, colleagues and special education for 18 years at Wich- ergy has proven vital to many in these former students. During the visitation ita East High School, where he devel- difficult economic times. on Tuesday at the funeral home, one of oped the first community-based in- Hometown Energy’s efforts to assist the last people to pay their respects to struction program, assisting special Mainers was given national attention students with job readiness and place- Ken was a former student. This young this year when they were featured by ment. man shared with Ken’s family that he the New York Times article ‘‘In Fuel Some folks might have looked at had caused a lot of trouble to Ken when Oil Country, Cold That Cuts To The those accomplishments and called he was a student. Before he left, he Heart,’’ which detailed the difficulties themselves a success. Ken, however, walked over to the casket and put his of home heating during the trying wasn’t done yet. He went on to serve as hand on Ken’s shoulder. He said sim- northern winters. Since the article ran, a special education coordinator for the ply, ‘‘Thank you for everything, Mr. donations have been pouring in to Wichita School District for 5 years and Dunlap,’’ and turned to leave. Then he Hometown Energy to assist in covering as principal of three special education stopped. He asked Jan if he could leave the costs of heating oil. More than programs at Starkey, Ketch, and something behind. Pulling a Special $250,000 in donations have been sent by Heartspring. Olympics Medal from his pocket, he contributors from around the world. Still not finished, in 1996, Ken estab- laid it on Ken’s chest, thanked him The kindhearted response and outreach lished one of the most innovative spe- again and left. has been so great that Hometown En- cial education programs in the coun- We will never know how many lives ergy has developed a Web site specifi- try—the Chisholm Life Skills Center. Ken touched nor the full impact he cally dedicated to receiving these con- Ken had a vision for a school that made—but he leaves behind a great leg- tributions. would serve the community of Wichita, acy and his life stands as an example to For his immeasurable compassion and at the same time teach its stu- us all. His dedication to others is a and commitment to serving the people dents the skills they would need to live powerful reminder of what is most im- of his community, Mr. Libby has been independently. Chisholm students care portant in life—the people around us. recently recognized by Dixfield’s Board for the yards of area seniors on their May we learn from Ken’s example and of Selectmen as Dixfield’s Distin- way to full-time paid jobs with land- make a lasting difference in the lives guished Citizen for 2012. There can be scaping companies. Students cook in of others.∑ no doubt that this honor is well-de- the school cafeteria on their way to a f served by Mr. Libby, who has gener- career in food service. The school itself 75TH ANNIVERSARY OF REPTILE ously given his time, energy, and very contracts with local businesses like GARDENS self. Through his efforts, he has pro- Cessna/Textron Aviation, Intrust Bank foundly touched the lives of so many in and the United Way and students go on ∑ Mr. JOHNSON of South Dakota. Mr. his community. to work at several of those businesses. President, today I wish to recognize a Congratulations to Ike Libby on Chisholm is more than just a school; it very important South Dakota business being named Dixfield’s Distinguished is a bridge for ‘‘differently able’’ kids and visitor attraction that is observing Citizen for 2012. Mr. Libby and every- from education to the workforce and its 75th anniversary this year. Reptile one at Hometown Energy’s kindness community. The staff, faculty and par- Gardens has been a main focal point for and selfless dedication to assisting the ents still strive for every student at Black Hills area residents and the tour- most vulnerable truly warms my heart. Chisholm to be fully equipped with the ing general public since 1937. I extend my most sincere gratitude for skills needed upon graduation to live It all began in 1935 when 19-year-old their steadfast service and offer them the most independent life possible in Earl Brockelsby discovered people’s in- my best wishes for continued success.∑ the local community. terest in snakes. As a young tour guide f In 1999, a Kansas storm put a dif- at a local Rapid City attraction, this ferent obstacle in Ken’s way, when a fearless snake enthusiast would often TRIBUTE TO KEN DUNLAP deadly tornado ripped the roof off of end his tours by removing his hat and ∑ Mr. MORAN. Mr. President, today I Chisholm. Again, Ken saw the oppor- revealing a live rattlesnake coiled on wish to remember a man who had sig- tunity, transitioning from his role as top of his head. nificant impact on the lives of hun- educator and administrator to fore- With the help of some friends, Earl dreds, maybe thousands of Kansans. man. While most educators were enjoy- built an 18-by-24-foot building at the Kansans very rarely live idle lives. ing their summer vacation, Ken was top of a long hill outside of Rapid City We are an active hard-working State, overseeing the cleanup and rebuilding and put a handful of specimens on dis- always in motion, quick to rise to a of the school. He rallied the whole com- play. Even then, the young entre- challenge. The bigger the obstacle, the munity. Teachers, parents and alumni preneur knew the vital importance of faster a Kansan will be there to remove all pitched in, clearing debris, cleaning location, location, location, as back in it. Our Founders seemed to know that and rebuilding Chisholm. The school the 1930s cars would often overheat as would be the case when they chose for today stands as a testament to Ken’s they reached the top of a long hill. our State motto, ‘‘ad astra ad leadership and the whole community’s Earl’s idea was to have the cars stop in aspera’’—‘‘to the stars through difficul- persistence. Reptile Gardens’ parking lot to cool

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.001 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4457 their radiators and maybe stay to see of service to the Black Hills and to The Case SPORE grant will allow the gardens. South Dakota, as well as to the many Case to research gastrointestinal, GI, Admission when the doors opened on workers and specialists who have cancers. GI cancers are a leading cause June 3, 1937, was 10 cents for adults and worked there over the past 75 years. of cancer deaths in men and women as 5 cents for children. That first day of Sons John and Jeff Brockelsby and well as disproportionately affect Afri- operation, Black Hills Reptile Gardens daughters Judee Oldham and Janet Ja- can Americans. African Americans are took in $3.85. For the next 2 days, no cobs have preserved the legacy of Earl more likely to have—and die—from one visited, and on the following 2 and Maude Brockelsby with eye-pop- colon cancer. Additionally, the onset of days, the attraction took in only 40 ping displays, hands-on exhibits, and colon cancer occurs at an earlier age cents and 50 cents respectively. Fortu- shows with a flair for the dramatic, all for African Americans. Of the four nately, business would improve quick- the while educating visitors on the im- projects that would be funded by the ly, and by 1941 the business had 15 em- portance of preservation and care of Case GI SPORE, several include a re- ployees and was showing a profit. various species. I know Reptile Gar- search emphasis on colon cancer in Af- Today, over a quarter million people dens will continue to be one of the rican Americans. visit Reptile Gardens each year. most popular visitor attractions in Case is also the lead center for the Brockelsby was an acute business- South Dakota for many years to come, Barrett’s Esophagus Research Net- man and one of the true tourism pio- and I applaud the Brockelsby family work. This multiple center network al- neers of South Dakota. He was also for their lasting contributions to tour- lows for collaboration to develop a bet- quite the practical joker. One of the ism, education, and species preserva- ter understanding of Barrett’s esoph- many interesting stories prepared by tion.∑ agus disorder and its correlation with Joe Maierhauser of Reptile Gardens in- f esophageal cancer. cludes Earl propping open the mouth of The Ohio State University Com- a dead alligator with the Sunday news- NATIONAL CANCER RESEARCH prehensive Cancer Center, also referred paper inside and setting it outside a MONTH to as ‘‘the James,’’ was the Midwest’s friend’s home. That friend happened to ∑ Mr. BROWN of Ohio. Mr. President, first fully dedicated cancer hospital be the publisher of the Rapid City we recognized May as National Cancer and research institute. Journal. Research Month. This year, more than The James researchers are drawn The attraction would go through a 1.6 million Americans will receive a from 12 of Ohio State’s 18 colleges to move in 1965 with the construction of a cancer diagnosis and more than half a collaborate and study ways to prevent new highway and a modernization that million Americans will lose their bat- and treat cancer, including the ways would give visitors the rare oppor- tle with cancer. However, due to the genetics influences cancer development tunity to walk amongst free-roaming discoveries made by cancer research- and how targeted therapies based on reptiles and birds. It was one of the ers, people are living with cancer molecular genetics can promote treat- first such exhibits in the United longer and, increasingly, are beating it. ment. States. Cancer researchers—world-class sci- Research at the James has expanded Over the many decades, Earl would entists and clinicians—are making in- our knowledge and understanding of become well known for his many trips valuable contributions to our health cancer treatment. Researchers at the to obtain various specimens to show- care knowledge. The National Institute James found that 1 in 35 people with case at his attraction. From a one-man of Health, NIH, and the National Can- colon cancer carry a genetic disease show in 1937, Reptile Gardens has ex- cer Institute, NCI, are the leading called Lynch syndrome. Of the patients panded into a world-renowned team of funders and conductors of biomedical who had this gene mutation, each had animal specialists and conservation- research in the world—including cancer on average three family members with ists. Their goal is to educate the public research. According to Families USA, the mutation. about important environmental issues approximately seven jobs are created Thanks to the outstanding research and work closely with facilities world- per research grant and each dollar of conducted by the James, the early de- wide on the preservation and care of NIH grant money generates about $2.21 tection of the mutation means that rare specimens, not to mention edu- of new business activity. through regular colonoscopies, people cating school-aged children and the In fiscal year 2011, Ohio scientists with Lynch syndrome will never de- visiting public about various species and physicians attracted more than velop colon cancer. This is remark- and how they influence our world. $710 million in grant funding, including able— through genetic advances, peo- From crocodiles and alligators, liz- $104 million dedicated to cancer re- ple can beat cancer before it starts. ards, snakes and spiders, birds, flowers search. OSU scientists are also developing a and tortoises, Reptile Gardens offers a Ohio is on the cutting edge of cancer medicated patch that releases a can- truly educational and entertaining ex- research thanks to world renowned cer-preventing drug onto precancerous perience. Decades of visitors can recall medical institutions, including Ohio’s oral lesions. the facility’s mascot Methuselah, a two NCI-designated cancer centers: the Other scientists are conducting clin- giant Galapagos tortoise that was Case Comprehensive Cancer Center, ical trials for new drugs to treat pa- brought to the facility in 1954 and and the Ohio State University Com- tients with advanced or recurring passed away last summer, as well as prehensive Cancer Center—the James breast, colon, lung, or prostate cancer. Mac the Scarlet Macaw, who had been Cancer Hospital and Solove Research These drugs may offer new hope to pa- at the facility since the mid-1950s and Institute. tients who have exhausted most—if not could recite most of the 20-minute The Case Comprehensive Cancer Cen- all—existing therapeutic options. snake show word for word. ter, CCC, brings together the cancer re- The James and the Ohio State Reptile Gardens has a worldwide rep- search efforts at Case Western Reserve Wexner Medical Center is expanding its utation amongst visitors as well as University, University Hospitals Case cancer research as the result of a $100 among animal specialists. In addition Medical Center, and the Cleveland million grant made available from the to the various shows and specimens on Clinic. Through this collaboration, the health care reform legislation. site that entertain, educate, and in- brightest minds at Case, University The funding has spurred the largest form people of all ages, their workers Hospital, and the Cleveland Clinic construction project in university his- provide important research and preser- partner on cutting-edge cancer re- tory, which will expand the Wexner vation of numerous rare species. search bringing together more than 300 Medical Center, including the James Reptile Gardens continues to be oper- scientists and physicians to work on Cancer Hospital and Solove Research ated by the Brockelsby family, main- research projects supported by more Institute. Slated to be completed by taining the attraction as one of the than $100 million in annual funding. 2014, the expansion includes a new can- must-see sites among the touring pub- Case CCC also was awarded a Special- cer hospital, critical care tower, out- lic in South Dakota. ized Programs of Research Excellence, patient center, research laboratories, I congratulate and commend the SPORE, grant—to promote and classrooms—all designed to ad- Brockelsby family for their many years translational cancer research. vance the medical center’s mission to

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.015 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4458 CONGRESSIONAL RECORD — SENATE June 25, 2012 improve people’s lives through innova- helped ensure the safety of their family band activities. By allowing students tion in patient care, education, and remembers through their actions. They to decide the arrangements they would search. and the dispatchers who helped them like to perform, the drills they want to This project put more than 5,000 serve as a great example of how impor- execute or the trips they want to take, Ohioans to work constructing the facil- tant it is for kids to know what to do Paul gave his band members an impor- ity and is expected to create 10,000 full- when trouble arises. tant opportunity to learn how to lead, time jobs by 2014. The organization, 9–1–1 for Kids, is to make decisions and to become bet- The University of Cincinnati Cancer working to ensure that kids of all ages ter musicians. Paul’s approach also ex- Institute is another Ohio institution understand the importance and proper panded the prospect of band member- making strides in combating cancer. use of 911. It does so by raising aware- ship to every student—from novices to UC’s Division of Experimental Hema- ness through conferences, media out- the classically-trained, from football tology and Cancer Biology is reach, training activities, school players to after-school waiters—giving partnering with the Cancer and Blood events, and by highlighting the stories all Tigers exposure to the power of Diseases Institute at Cincinnati Chil- of kids like Alisha and Matthew. music. dren’s Hospital to explore gene therapy I join all Coloradans in offering our Paul once said in an interview with for the treatment of pediatric cancers gratitude to dispatchers Ashley School Band & Orchestra Magazine and blood disorders. Bettschen and Rhonda Halsey for their that he has two objectives as a band di- I applaud the groundbreaking work service to their communities and con- rector. The first is to make sure his conducted every day in Ohio and across gratulating Alisha and Matthew for students play ‘‘some great music by the country to increase prevention, im- this award as well as their bravery and some great composers.’’ The second is prove treatment, and extend life- ability to remain calm in the face of an that the students recognize that ‘‘there expectancies—for all constituencies. emergency.∑ is only one purpose for music, and that Even though National Cancer Re- is to thrill people. Nobody listens to search Month has come to an end, I f music that doesn’t do something to urge my Senate colleagues to continue TRIBUTE TO PAUL L. PARETS them emotionally.’’ And for the past 36 to support cancer research. While re- ∑ Mr. CARPER. Mr. President, I rise years, our State—and the world—has searchers have made incredible strides today on behalf of Senator CHRIS been thrilled by Paul Parets and his in cancer research, only a mere 5 per- COONS, Congressman JOHN CARNEY and A.I. Tigers. cent of Americans with pancreatic and myself in recognition of Mr. Paul L. Beyond A.I. duPont and Delaware, other cancers have a 5-year survival Parets upon his retirement from 36 the rest of our Nation—and other countries beyond our borders—began taking rate. Now is the time to strengthen the years of exemplary service at A.I. du- notice of Paul Parets and his talented investment in the revolutionary work Pont High School as a nationally-rec- of cancer researchers across the coun- musicians at A.I. duPont years ago. ognized high school band director and try.∑ Since 1989, his bands have received first 46 years as a music educator. His en- place awards in almost every category f thusiasm and leadership over the years of every festival competition they have has won him the respect of educators, TRIBUTE TO YOUNG COLORADANS entered. Paul is the only band director, musicians, community leaders, co- ∑ Mr. BENNET. Mr. President, today I and his Tiger Marching Band is the workers and students alike, and his wish to honor two young heroes from only high school band outside Cali- Colorado who received 9–1-1 for Kids’ passion for teaching music has inspired fornia, ever to be invited to the Pasa- Medal of Honor this week. The medal is generations of Delawareans. dena Tournament of Roses Parade an Growing up in Michigan, Paul Parets bestowed upon young people who dis- unprecedented five times: 1990, 1995, was not raised in a musical family. In tinguish themselves by calling 911 in 1999, 2004, and 2008. The Tigers have ap- fact, his parents expected Paul to be- an emergency and help to save some- peared in the Orange Bowl twice, the one’s life or report a crime. An award come a doctor. But Paul had a keen in- Macy’s Thanksgiving Day Parade, the is also presented to the dispatcher who terest in music from an early age, and Hall of Fame Bowl, the Fiesta Bowl processed the call and provided the ap- once he joined the band in his grade twice, the 6ABC Thanksgiving Day Pa- propriate emergency response. school, he was hooked. Following his rade in Philadelphia every year since Last year, 7-year-old Alisha Fetz and graduation from Melvindale High 1987 and the inaugurations of three 12-year-old Matthew Diaz, both of School in Melvindale, MI, Paul re- U.S. Presidents, the most recent being Thornton, each found themselves in ceived a Bachelor’s of Music Education Barack Obama. difficult situations in which they need- from Central Michigan University and Internationally, Paul’s Tigers have ed to protect their family members. continued his graduate education at represented the First State with honor Alisha called 911 on June 1, 2011 when the University of Michigan and the at the London New Year’s Day Parade her mother was having difficulty University of Maryland. For the first 10 seven times, the Rome New Year’s day breathing. Alisha answered dispatcher years of his career, Paul led the band Parade twice, the St. Patrick’s Day Pa- Ashley Bettschen’s questions clearly at Croswell-Lexington High School in rade in Dublin 4 times, and played for and calmly, even providing her moth- Michigan. Fortunately for those of us two of the world’s most recognizable er’s cell phone number and information in the First State, though, he moved to figures: Queen Elizabeth in London and on her mother’s medical condition. Delaware in 1976 and became the Band Pope Benedict in St. Peter’s Square. Following all of dispatcher Bettschen’s Director at A.I. duPont High School in The talents of his bands have filled the instructions, Alisha ensured that her Greenville. There, over the course of music halls and legendary stages of the mother was treated quickly and effi- the next 4 decades, Paul developed one Ireland National Concert Hall and The ciently. of the foremost high school band pro- Royal Albert Hall in London. On August 15, 2011, Matthew called grams in the country. Paul was named Delaware Teacher of 911 while his house was being burglar- Under Paul’s leadership, band mem- the Year in 1987 and was a recipient of ized. He locked himself and his younger bership rose from 90 students to well the Ruth M. Jewell Outstanding Music sister in a bathroom and managed to over 300, and from one band sprouted Educator Award from the Music Edu- whisper answers to Dispatcher Rhonda five: the Freshman Band, Symphonic cator’s National Conference at Indian- Halsey in a calm and clear manner. Be- Band, Jazz Band, the Symphonic Wind apolis in 1988. In 1989, my friend and cause of his great descriptions of both Ensemble and The Tiger Marching former colleague, then-Governor Mike the burglars and their vehicle, the sus- Band. Castle, conferred on Paul the Order of pects were apprehended only minutes Paul’s unique approach to music edu- the First State, as well. While Paul’s later. The burglars were both prior cation has made the A.I. duPont band accolades have made him legendary in convicted felons, and several other program a standout in Delaware and in the sphere of public education, his leg- open cases were cleared because of America. Through a student-elected acy will undoubtedly remain with the Matthew’s call. executive board for the band, stu- thousands of students—many of whom Both of these kids knew exactly what dents—not teachers—are empowered to are second generation Tigers—that he to do. They didn’t panic, and they make major decisions about music and has taught in his nearly 50-year career.

VerDate Mar 15 2010 05:28 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.007 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4459 It is not hard to see the span of influ- Shiloh is a graduate of Highmore TRIBUTE TO SHELBY SCHOON ence Paul has had on his students, who High School in Highmore, SD. Cur- ∑ Mr. THUNE. Mr. President, today I are now scattered across the globe. He rently, she is attending the University recognize Shelby Schoon, an intern in has nearly 2,000 Facebook friends, of South Dakota, where she is majoring my Washington, DC, office, for all of mainly made up of past and current in political science. She is a hard work- the hard work she has done for me, my students. A quick Internet search of er who has been dedicated to getting staff, and the State of South Dakota his name will turn up blog post after the most out of her internship experi- over the past several weeks. blog post of former students stating ence. Shelby was home schooled and is a that Paul—or ‘‘Mr. Parets’’—‘‘changed I extend my sincere thanks and ap- native of Brandon, SD. Currently, she my life,’’ ‘‘made a difference,’’ and that preciation to Shiloh for all of the fine is a graduate of Northwestern College A.I. will ‘‘never be the same’’ without work she has done and wish her contin- where she majored in business adminis- him. I think all of us who have experi- ∑ ued success in the years to come. tration and biology health profes- enced the thrills of any of the A.I. du- sionals. She is a hard worker who has Pont bands echo these sentiments. As f been dedicated to getting the most out they say at A.I., ‘‘You cannot hide that TRIBUTE TO KELLY HERRMANN of her internship experience. Tiger Pride,’’ and I know I share that I extend my sincere thanks and ap- feeling of pride every time I turn on ∑ Mr. THUNE. Mr. President, today I preciation to Shelby for all of the fine my TV and see the A.I. duPont Tigers wish to recognize Kelly Herrmann, an work she has done and wish her contin- marching down the streets of Pasa- intern in my Sioux Falls, SD, office, ued success in the years to come.∑ dena, London or New York. Up and for all of the hard work she has done down Delaware, we certainly can’t hide for me, my staff, and the State of f South Dakota over the past several our overwhelming pride for Paul MESSAGES FROM THE PRESIDENT Parets, nor will we be able to hide our weeks. heartbreak when he is not on the direc- Kelly is a graduate of Stevens High Messages from the President of the tor’s podium this fall. School in Rapid City, SD. Currently, United States were communicated to Upon Paul’s retirement, he will leave she is attending South Dakota State the Senate by Mr. Pate, one of his sec- behind a legacy that is a testament to University, where she is majoring in retaries. the importance of music in public edu- political science. She is a hard worker f who has been dedicated to getting the cation and the pure joy—and thrill—of EXECUTIVE MESSAGES REFERRED music. His lessons inside and outside of most out of her internship experience. the classroom will remain with his stu- I would like to extend my sincere As in executive session the Presiding dents, our community, and with future thanks and appreciation to Kelly for Officer laid before the Senate messages generations of A.I. duPont band mem- all of the fine work she has done and from the President of the United bers. I thank him for his contribution wish her continued success in the years States submitting sundry nominations to music education and for his commit- to come.∑ which were referred to the appropriate ment to public service through years as committees. f an elected member to the Delaware (The messages received today are City Council. I also thank him for the TRIBUTE TO REBECCA REITER printed at the end of the Senate pro- pride he has brought to the First State ceedings.) ∑ Mr. THUNE. Mr. President, today I and for the generations of musicians he f has nurtured—a gift that will give time recognize Rebecca Reiter, an intern in and time again. I wish him, his chil- my Washington, DC, office, for all of MESSAGE FROM THE HOUSE dren, Tim and Meredith, and two the hard work she has done for me, my At 3:11 p.m., a message from the grandchildren, Aaron and Abigail, and staff, and the State of South Dakota House of Representatives, delivered by the rest of his family only the very over the past several weeks. Mr. Novotny, one of its reading clerks, best in all that lies ahead for each of Rebecca is a graduate of Watertown announced that the House has passed them. As we say in the Navy, ‘‘Bravo High School in Watertown, SD. Cur- the following bill, in which it requests Zulu!’’ to Paul Parets. You are one of a rently, she is attending the University the concurrence of the Senate: of South Dakota, where she is majoring kind, and we are blessed to have known H.R. 4480. An act to provide for the devel- you all of these years.∑ in political science and criminal jus- opment of a plan to increase oil and gas ex- tice. She is a hard worker who has been f ploration, development, and production dedicated to getting the most out of under oil and gas leases of Federal lands TRIBUTE TO SCOTT BLANCHARD her internship experience. under the jurisdiction of the Secretary of ∑ Mr. THUNE. Mr. President, today I I extend my sincere thanks and ap- Agriculture, the Secretary of Energy, the recognize Scott Blanchard, an intern in preciation to Rebecca for all of the fine Secretary of the Interior, and the Secretary my Washington, DC, office, for all of work she has done and wish her contin- of Defense in response to a drawdown of pe- ued success in the years to come.∑ troleum reserves from the Strategic Petro- the hard work he has done for me, my leum Reserve. staff, and the State of South Dakota f over the past several weeks. f Scott is a graduate of Aberdeen Cen- TRIBUTE TO KEVIN ROBB MEASURES REFERRED tral High School in Aberdeen, SD. Cur- ∑ The following bill was read the first rently, he is attending Northern State Mr. THUNE. Mr. President, today I University, where he is majoring in po- recognize Kevin Robb, an intern in my and the second times by unanimous litical science. He is a hard worker who Washington, DC, office, for all of the consent, and referred as indicated: has been dedicated to getting the most hard work he has done for me, my H.R. 4480. An act to provide for the devel- out of his internship experience. staff, and the State of South Dakota opment of a plan to increase oil and gas ex- I extend my sincere thanks and ap- over the past several weeks. ploration, development, and production Kevin is a graduate of St. Thomas under oil and gas leases of Federal lands preciation to Scott for all of the fine under the jurisdiction of the Secretary of work he has done and wish him contin- More High School in Rapid City, SD. Currently, he is attending the Univer- Agriculture, the Secretary of Energy, the ued success in the years to come.∑ Secretary of the Interior, and the Secretary sity of South Dakota, where he is ma- f of Defense in response to a drawdown of pe- joring in political science and philos- troleum reserves from the Strategic Petro- TRIBUTE TO SHILOH DAY ophy. He is a hard worker who has been leum Reserve; to the Committee on Energy ∑ Mr. THUNE. Mr. President, today I dedicated to getting the most out of and Natural Resources. recognize Shiloh Day, an intern in my his internship experience. f Rapid City, SD, office, for all of the I extend my sincere thanks and ap- hard work she has done for me, my preciation to Kevin for all of the fine REPORTS OF COMMITTEES staff, and the State of South Dakota work he has done and wish him contin- The following reports of committees over the past couple of months. ued success in the years to come.∑ were submitted:

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.032 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4460 CONGRESSIONAL RECORD — SENATE June 25, 2012 By Mr. LIEBERMAN, from the Committee ADDITIONAL COSPONSORS Carolina (Mr. GRAHAM), the Senator on Homeland Security and Governmental Af- S. 697 from North Carolina (Mrs. HAGAN), the fairs, with an amendment: Senator from New Jersey (Mr. LAUTEN- S. 1379. A bill to amend title 11, District of At the request of Mr. CASEY, the Columbia Official Code, to revise certain ad- name of the Senator from New Jersey BERG), the Senator from Michigan (Mr. LEVIN), the Senator from West Virginia ministrative authorities of the District of (Mr. MENENDEZ) was added as a cospon- Columbia courts, and to authorize the Dis- sor of S. 697, a bill to amend the Inter- (Mr. MANCHIN), the Senator from trict of Columbia Public Defender Service to nal Revenue Code of 1986 to allow a Vermont (Mr. SANDERS) and the Sen- provide professional liability insurance for credit against income tax for amounts ator from New Hampshire (Mrs. SHA- officers and employees of the Service for HEEN) were added as cosponsors of S. claims relating to services furnished within paid by a spouse of a member of the Armed Services for a new State license 1929, a bill to require the Secretary of the scope of employment with the Service the Treasury to mint coins in com- (Rept. No. 112–178). or certification required by reason of a memoration of Mark Twain. f permanent change in the duty station of such member to another State. S. 1956 INTRODUCTION OF BILLS AND S. 703 At the request of Mr. THUNE, the JOINT RESOLUTIONS At the request of Mr. BARRASSO, the name of the Senator from Kansas (Mr. The following bills and joint resolu- name of the Senator from New Mexico ROBERTS) was added as a cosponsor of tions were introduced, read the first (Mr. BINGAMAN) was added as a cospon- S. 1956, a bill to prohibit operators of and second times by unanimous consor of S. 703, a bill to amend the Long- civil aircraft of the United States from sent, and referred as indicated: Term Leasing Act, and for other pur- participating in the European Union’s By Mr. PAUL: poses. emissions trading scheme, and for S. 3337. A bill to amend title XVIII of the other purposes. S. 1299 Social Security Act to provide for the elimi- S. 2103 nation of the Medicare sustainable growth At the request of Mr. MORAN, the rate (SGR) formula to ensure access to phy- name of the Senator from North Caro- At the request of Mr. LEE, the name sicians’ services for Medicare beneficiaries; lina (Mrs. HAGAN) was added as a co- of the Senator from Oklahoma (Mr. to the Committee on Finance. sponsor of S. 1299, a bill to require the INHOFE) was added as a cosponsor of S. By Mr. WICKER (for himself, Mr. ENZI, Secretary of the Treasury to mint 2103, a bill to amend title 18, United and Mr. HARKIN): coins in commemoration of the centen- States Code, to protect pain-capable S. 3338. A bill to amend the Public Health nial of the establishment of Lions unborn children in the District of Co- Service Act and title XVIII of the Social Se- lumbia, and for other purposes. curity Act to make the provision of tech- Clubs International. nical services for medical imaging examina- S. 1616 S. 2189 tions and radiation therapy treatments At the request of Mr. MENENDEZ, the At the request of Mr. HARKIN, the safer, more accurate, and less costly; to the name of the Senator from Connecticut name of the Senator from Massachu- Committee on Health, Education, Labor, and (Mr. LIEBERMAN) was added as a co- setts (Mr. BROWN) was added as a co- Pensions. sponsor of S. 1616, a bill to amend the sponsor of S. 2189, a bill to amend the By Mr. LAUTENBERG: Age Discrimination in Employment S. 3339. A bill to allow certain Indonesian Internal Revenue Code of 1986 to ex- citizens to file a motion to reopen their asy- empt certain stock of real estate in- Act of 1967 and other laws to clarify ap- lum claims; to the Committee on the Judici- vestment trusts from the tax on for- propriate standards for Federal anti- ary. eign investments in United States real discrimination and antiretaliation By Mrs. MURRAY: property interests, and for other pur- claims, and for other purposes. S. 3340. A bill to improve and enhance the poses. S. 2239 programs and activities of the Department of Defense and the Department of Veterans Af- S. 1744 At the request of Mr. NELSON of Flor- fairs regarding suicide prevention and resil- At the request of Ms. KLOBUCHAR, the ida, the names of the Senator from ience and behavioral health disorders for name of the Senator from Texas (Mr. Maryland (Ms. MIKULSKI) and the Sen- members of the Armed Forces and veterans, CORNYN) was added as a cosponsor of S. ator from Alaska (Mr. BEGICH) were and for other purposes; to the Committee on 1744, a bill to provide funding for State added as cosponsors of S. 2239, a bill to Veterans’ Affairs. courts to assess and improve the han- direct the head of each agency to treat f dling of proceedings relating to adult relevant military training as sufficient SUBMISSION OF CONCURRENT AND guardianship and conservatorship, to to satisfy training or certification re- SENATE RESOLUTIONS authorize the Attorney General to quirements for Federal licenses. S. 2250 The following concurrent resolutions carry out a pilot program for the con- and Senate resolutions were read, and duct of background checks on individ- At the request of Ms. STABENOW, the referred (or acted upon), as indicated: uals to be appointed as guardians or names of the Senator from Rhode Is- conservators, and to promote the wide- land (Mr. WHITEHOUSE), the Senator By Mr. JOHNSON of South Dakota (for from Vermont (Mr. SANDERS) and the himself and Mr. KIRK): spread adoption of information tech- S. Res. 503. A resolution designating June nology to better monitor, report, and Senator from Massachusetts (Mr. 2012 as ‘‘National Aphasia Awareness Month’’ audit conservatorships of protected BROWN) were added as cosponsors of S. and supporting efforts to increase awareness persons. 2250, a bill to prevent homeowners from of aphasia; considered and agreed to. S. 1806 being forced to pay taxes on forgiven By Mrs. GILLIBRAND (for herself, Mr. At the request of Mrs. BOXER, the mortgage loan debt. RUBIO, Mr. BLUMENTHAL, Mr. KIRK, S. 2342 Mr. SCHUMER, Mr. MENENDEZ, Mr. names of the Senator from Delaware INHOFE, Mr. KOHL, Mr. RISCH, Mr. (Mr. COONS) and the Senator from At the request of Mr. TESTER, the LIEBERMAN, Mr. BROWN of Massachu- Maryland (Ms. MIKULSKI) were added as name of the Senator from New Jersey setts, Mr. WYDEN, Mrs. BOXER, Mr. cosponsors of S. 1806, a bill to amend (Mr. MENENDEZ) was added as a cospon- CARDIN, Ms. MIKULSKI, Mr. LEVIN, Mr. the Internal Revenue Code of 1986 to sor of S. 2342, a bill to reform the Na- BEGICH, Ms. SNOWE, Mr. BROWN of allow taxpayers to designate overpay- tional Association of Registered Ohio, Mr. MORAN, Mrs. HUTCHISON, ments of tax as contributions to the Agents and Brokers, and for other pur- Mr. NELSON of Florida, Mr. GRASS- homeless veterans assistance fund. poses. LEY, Mr. LEE, Ms. LANDRIEU, Mr. BARRASSO, Ms. STABENOW, Mr. DUR- S. 1929 S. 2347 BIN, Mr. BLUNT, Mrs. FEINSTEIN, Ms. At the request of Mr. BLUMENTHAL, At the request of Mr. CARDIN, the AYOTTE, Mr. ROBERTS, Mr. CASEY, the names of the Senator from Hawaii name of the Senator from Minnesota and Mr. BOOZMAN): (Mr. AKAKA), the Senator from New (Ms. KLOBUCHAR) was added as a co- S. Res. 504. A resolution expressing support Hampshire (Ms. AYOTTE), the Senator sponsor of S. 2347, a bill to amend title for the International Olympic Committee to recognize with a minute of silence at the 2012 from Colorado (Mr. BENNET), the Sen- XVIII of the Social Security Act to en- Olympics Opening Ceremony the athletes ator from Georgia (Mr. CHAMBLISS), the sure the continued access of Medicare and others killed at the 1972 Munich Olym- Senator from Minnesota (Mr. beneficiaries to diagnostic imaging pics; considered and agreed to. FRANKEN), the Senator from South services.

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.051 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4461 S. 2371 kota (Mr. JOHNSON) was added as a co- United States military and intelligence At the request of Mr. RUBIO, the sponsor of S. 3318, a bill to amend title plans, programs, and operations. name of the Senator from North Da- 38, United States Code, to prohibit the S. RES. 490 kota (Mr. HOEVEN) was added as a co- use of the phrases GI Bill and Post-9/11 At the request of Mrs. BOXER, the sponsor of S. 2371, a bill to amend the GI Bill to give a false impression of ap- name of the Senator from Connecticut National Labor Relations Act to per- proval or endorsement by the Depart- (Mr. BLUMENTHAL) was added as a co- mit employers to pay higher wages to ment of Veterans Affairs, and for other sponsor of S. Res. 490, a resolution des- their employees. purposes. ignating the week of September 16, S. 2620 S. 3322 2012, as ‘‘Mitochondrial Disease Aware- At the request of Mr. GRASSLEY, the At the request of Mr. BROWN of Ohio, ness Week’’, reaffirming the impor- name of the Senator from Maine (Ms. the name of the Senator from Min- tance of an enhanced and coordinated COLLINS) was added as a cosponsor of S. nesota (Ms. KLOBUCHAR) was added as a research effort on mitochondrial dis- 2620, a bill to amend title XVIII of the cosponsor of S. 3322, a bill to strength- eases, and commending the National Social Security Act to provide for an en enforcement and clarify certain pro- Institutes of Health for its efforts to extension of the Medicare-dependent visions of the Servicemembers Civil improve the understanding of hospital (MDH) program and the in- Relief Act, the Uniformed and Overseas mitochondrial diseases. creased payments under the Medicare Citizens Absentee Voting Act, and S. RES. 494 low-volume hospital program. chapter 43 of title 38, United States At the request of Mr. CORNYN, the S. 3204 Code, and to reconcile, restore, clarify, name of the Senator from Arkansas At the request of Mr. JOHANNS, the and conform similar provisions in (Mr. BOOZMAN) was added as a cospon- name of the Senator from Oregon (Mr. other related civil rights statutes, and sor of S. Res. 494, a resolution con- WYDEN) was added as a cosponsor of S. for other purposes. demning the Government of the Rus- 3204, a bill to address fee disclosure re- S. 3326 sian Federation for providing weapons quirements under the Electronic Fund At the request of Mr. BAUCUS, the to the regime of President Bashar al- Transfer Act, and for other purposes. names of the Senator from Massachu- Assad of Syria. S. 3221 setts (Mr. KERRY), the Senator from AMENDMENT NO. 2310 At the request of Mr. RUBIO, the Mississippi (Mr. WICKER) and the Sen- At the request of Mr. SANDERS, the name of the Senator from North Da- ator from California (Mrs. FEINSTEIN) name of the Senator from Alaska (Mr. kota (Mr. HOEVEN) was added as a co- were added as cosponsors of S. 3326, a BEGICH) was added as a cosponsor of sponsor of S. 3221, a bill to amend the bill to amend the African Growth and amendment No. 2310 proposed to S. National Labor Relations Act to per- Opportunity Act to extend the third- 3240, an original bill to reauthorize ag- mit employers to pay higher wages to country fabric program and to add ricultural programs through 2017, and their employees. South Sudan to the list of countries el- for other purposes. S. 3237 igible for designation under that Act, f At the request of Mr. WHITEHOUSE, to make technical corrections to the STATEMENTS ON INTRODUCED the names of the Senator from New Harmonized Tariff Schedule of the BILLS AND JOINT RESOLUTIONS Jersey (Mr. MENENDEZ) and the Sen- United States relating to the textile ator from Alaska (Mr. BEGICH) were and apparel rules of origin for the Do- By Mrs. MURRAY: added as cosponsors of S. 3237, a bill to minican Republic-Central America- S. 3340. A bill to improve and enhance provide for the establishment of a United States Free Trade Agreement, the programs and activities of the De- Commission to Accelerate the End of to approve the renewal of import re- partment of Defense and the Depart- Breast Cancer. strictions contained in the Burmese ment of Veterans Affairs regarding sui- S. 3263 Freedom and Democracy Act of 2003, cide prevention and resilience and behavioral health disorders for members At the request of Mrs. BOXER, the and for other purposes. of the Armed Forces and veterans, and name of the Senator from New York S. 3328 for other purposes; to the Committee (Mr. SCHUMER) was added as a cospon- At the request of Mr. LAUTENBERG, sor of S. 3263, a bill to require the Sec- the name of the Senator from Hawaii on Veterans’ Affairs. Mrs. MURRAY. Madam President, retary of Transportation to modify the (Mr. INOUYE) was added as a cosponsor last February, in my office in Seattle, final rule relating to flightcrew mem- of S. 3328, a bill to provide grants for I sat down with an Iraq and Afghani- ber duty and rest requirements for pas- juvenile mentoring. stan war veteran named Stephen Davis senger operations of air carriers to S.J. RES. 45 and his wife Kim. Stephen and Kim apply to all-cargo operations of air car- At the request of Mrs. HUTCHISON, the were there to talk to me about their riers, and for other purposes. name of the Senator from Arkansas experiences since he returned home and S. 3274 (Mr. PRYOR) was added as a cosponsor about the invisible wounds of war they ERRY of S.J. Res. 45, a joint resolution At the request of Mr. K , the were struggling with together every amending title 36, United States Code, name of the Senator from Missouri single day. (Mr. BLUNT) was added as a cosponsor to designate June 19 as ‘‘Juneteenth At the meeting Kim did most of the of S. 3274, a bill to direct the Secretary Independence Day’’. talking. She told me about the night- of Commerce, in coordination with the S. CON. RES. 48 mares. She told me about the lack of heads of other relevant Federal depart- At the request of Mr. LEAHY, the sleep. She talked about the confusion ments and agencies, to produce a re- name of the Senator from Ohio (Mr. and the anxiety that was now a con- port on enhancing the competitiveness BROWN) was added as a cosponsor of S. stant in their lives. But it was the way of the United States in attracting for- Con. Res. 48, a concurrent resolution she summed up her experience since eign direct investment, and for other recognizing 375 years of service of the Stephen returned home that struck me purposes. National Guard and affirming congres- hardest. S. 3308 sional support for a permanent Oper- She said her husband still hadn’t re- At the request of Mr. HELLER, the ational Reserve as a component of the turned home. She said the husband she name of the Senator from Massachu- Armed Forces. had been married to for nearly two dec- setts (Mr. BROWN) was added as a co- S. RES. 489 ades—although he was sitting directly sponsor of S. 3308, a bill to amend title At the request of Mr. JOHANNS, his next to her—was still not back from 38, United States Code, to improve the name was added as a cosponsor of S. the war. furnishing of benefits for homeless vet- Res. 489, a resolution expressing the Do you know what. Despite the fact erans who are women or who have de- sense of the Senate on the appointment that we often refer to these wounds as pendents, and for other purposes. by the Attorney General of an outside invisible, you could see it. When it S. 3318 special counsel to investigate certain came time for Stephen to describe to At the request of Mrs. BOXER, the recent leaks of apparently classified me his experiences, he shook as he ex- name of the Senator from South Da- and highly sensitive information on plained how difficult the transition

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.053 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4462 CONGRESSIONAL RECORD — SENATE June 25, 2012 home has been for him, his wife, and It went on to quote a former Army throughout this entire Department of for their family. psychologist named David Rudd, who Defense and the VA. Too often they are The Davis family’s story is no dif- said: entangled in a web of bureaucracy and, ferent than what thousands of other Each diagnosis is an acknowledgement frankly, too often this makes them dif- families have faced. But their story that psychiatric casualties are a huge price ficult to address in legislation. does have a tragic and frustrating tag of this war. It is easiest to dismiss these In crafting this bill I identified crit- twist. You see, Sergeant Davis knew casualties because you can’t see the wounds. ical changes that need to be made at when he returned home that he had a If they change the diagnosis, they can dis- both the Department of Defense and miss you at a substantially decreased rate. problem with post-traumatic stress, the VA, and I set up a checklist of leg- and he was courageous enough to reach Madam President, I also had my own islative changes needed to do just that. out for help. He sought care and he was staff launch an investigation into how Some provisions in the bill will likely diagnosed with PTSD. the military and the VA were diag- be addressed in my Veterans Com- nosing mental health conditions at But just a few months later, after a mittee. Others will need to be ad- other bases across our country, and I visit to Madigan Army Medical Base in dressed through Defense bills and work was very troubled by what I found. my State of Washington, he was told with the chairs of those committees. It became clear that there were other something that shocked and appalled But all of these provisions are critical, cases where doctors accused soldiers of him and his wife. After just a 10- and today I want to share with you exaggerating symptoms without any minute meeting and a written ques- some of the most important ones. documentation of appropriate inter- tionnaire, Sergeant Davis was told he High atop the list of changes this bill view techniques. They encountered in- was exaggerating his symptoms and he makes is addressing military suicides adequate VA medical examinations, es- didn’t have PTSD. He was told, in ef- which, as we all know, is an epidemic pecially in relation to traumatic brain fect, that despite serving in two war that now outpaces combat deaths in injury. They found that many VA rat- zones, despite being involved in three this country. My bill will require the ing decisions contained errors, which separate IED incidents, and despite his Pentagon to create comprehensive in some cases complicated the level of repeated deployments, he was making standardized suicide prevention pro- benefits that veterans should have re- it all up. grams. It would also require the De- ceived. partment to better oversee mental He was then sent home with a diag- Now, to their credit, the Army did nosis of adjustment disorder and told health services for servicemembers. not run and hide as the questions about It will expand eligibility for a variety his disability rating would be lowered other bases continued to mount. In and that the benefits he and his family of VA mental health services to family fact, they have now taken two impor- members so we can help families and would receive would ultimately be di- tant steps. First, in April, they issued minished. If this sounds like an iso- spouses to cope with the stress of de- a new policy for diagnosing PTSD that ployment and strengthen the support lated, shocking incident, here is some- criticized the methods being used at thing you will find even more shock- network that is critical to servicemem- Madigan and pointed out to health offi- bers who are returning from deploy- ing. Sergeant Davis was one of literally cials throughout the entire system hundreds of patients at that Army hos- ment. that it was unlikely that soldiers were Third, my bill will improve training pital who were told the exact same faking these symptoms. Then, in May, and education for our health care pro- thing. the Army went further and announced viders. Oftentimes our servicemembers Soldiers who had been diagnosed with they would review all mental health di- seek out help from chaplains, medics, PTSD—not just once but several agnoses across the country dating back or others who may be unprepared to times—had their diagnosis taken away. to 2001. That, in turn, has led Secretary offer counseling. This bill will help pre- In many instances these soldiers were Panetta to announce just last week pare them through continuing edu- told they were embellishing or even that all branches of the military are cation programs. outright lying about their symptoms. now going to undergo a similar review. Fourth, my bill will create more In fact, so many soldiers were being ac- Without question, these are historic peer-to-peer counseling opportunities. cused of making up symptoms by doc- steps in our efforts to right a decade of It would do it by requiring VA to offer tors at that hospital I began to get let- inconsistencies in how the invisible peer support services at all medical ters and phone calls from them to my wounds of war have been evaluated. centers and by supporting opportuni- office. Servicemembers, veterans, and their ties to train vets to provide peer serv- Soon after that, documents came to families should never have to wade ices. light showing that the doctors diag- through an unending bureaucratic Finally, this bill will require VA to nosing these soldiers were being en- process. Because of this outcry from establish accurate and reliable meas- couraged to consider not just the best veterans and servicemembers alike, the ures for mental health services. This diagnosis for their patients but also Pentagon now has an extraordinary op- will help ensure that the VA under- the cost of care. These revelations have portunity to go back and correct the stands the problems they face so that led to a series of internal investiga- mistakes of the past. veterans can get into the care we know tions that are still underway today. We have to make sure these mistakes they can provide. Even more important, they have led to are never repeated. We still need to All of these are critical steps at a these soldiers now, thankfully, being fundamentally change a system that pivotal time, because the truth is, reevaluated, and today hundreds of Secretary Panetta admitted to me last right now the Department of Defense these soldiers, including Sergeant week has ‘‘huge gaps’’ in it. and the VA are losing the battle Davis, have had their proper PTSD di- That is why I am here this evening. against the mental and behavioral agnosis restored. Today, I am introducing the Mental wounds of these wars. This, too, could be viewed as an iso- Health ACCESS Act of 2012. It is a bill To see that, you don’t need to look lated incident. In fact, when I first that seeks to make improvements to any farther than the tragic fact that raised concerns, the problems we saw make sure that those who have served already this year over 150 active-duty at Madigan could be happening at have access to consistent, quality be- servicemembers have taken their own other bases across the country, that is havioral health care. lives or the fact that one veteran com- exactly what I was told—it was an iso- It is a bill that strengthens oversight mits suicide in this country every 80 lated incident at one base, at one hos- of military mental health care and im- minutes. And while we all know there pital. But I knew better. proves the integrated disability evalua- are a number of factors that contribute I remembered back to this Salon ar- tion system on which we rely. As any- to suicide—repeated deployments, lack ticle that ran a few years ago. In that one who understands these issues of employment security, isolation in article, a doctor from Fort Carson in knows well, this is not an easy task. their communities, and difficulty Colorado talked about how he was The mental health care, suicide pre- transitioning back to their families— ‘‘under a lot of pressure to not diag- vention, and counseling programs we not having access to quality and time- nose PTSD.’’ provide our servicemembers are spread ly mental health care is vital.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4463 When our veterans cannot get the mittee and for what Senator MURRAY tions for people experiencing aphasia and care they need, they often self-medi- has done. their caregivers; cate. When they wait endlessly for a I remember when I was presiding (5) supports efforts to make the voices of proper diagnosis, they lose hope. Last some years ago, and she was talking on people with aphasia heard, because people the Senate Floor about her dad, who is with aphasia are often unable to commu- year at this time, I held a hearing in nicate with others; and my veterans committee on the mental a veteran, and I know that is a big part (6) encourages all people in the United health disability system this bill seeks of why she does what she does. States to observe National Aphasia Aware- to strengthen, and I heard two stories I thank the Senator from Washington ness Month with appropriate events and ac- that illustrate that despair. State. tivities. Andrea Sawyer, the wife of Army f f SGT Lloyd Sawyer, testified about her SUBMITTED RESOLUTIONS SENATE RESOLUTION 504—EX- husband, who is an Iraq veteran and PRESSING SUPPORT FOR THE spent years searching for care. To- INTERNATIONAL OLYMPIC COM- gether, they hit barriers and they hit SENATE RESOLUTION 503—DESIG- MITTEE TO RECOGNIZE WITH A redtape so often that at one point, she NATING JUNE 2012 AS ‘‘NATIONAL MINUTE OF SILENCE AT THE 2012 said, he held a knife to his throat in APHASIA AWARENESS MONTH’’ OLYMPICS OPENING CEREMONY front of both her and an Army psychia- AND SUPPORTING EFFORTS TO THE ATHLETES AND OTHERS trist before being talked out of it. INCREASE AWARENESS OF KILLED AT THE 1972 MUNICH Later, in that very same hearing, APHASIA OLYMPICS Daniel Williams, an Iraq combat vet- Mr. JOHNSON of South Dakota (for Mrs. GILLIBRAND (for herself, Mr. eran, testified about how his struggle himself and Mr. KIRK) submitted the to find care led him to stick the gun in following resolution; which was consid- RUBIO, Mr. BLUMENTHAL, Mr. KIRK, Mr. his mouth while his wife begged him to ered and agreed to: SCHUMER, Mr. MENENDEZ, Mr. INHOFE, Mr. KOHL, Mr. RISCH, Mr. LIEBERMAN, stop, only to see his gun misfire. S. RES. 503 Mr. BROWN of Massachusetts, Mr. Those are the stories that define this Whereas aphasia is a communication im- WYDEN, Mrs. BOXER, Mr. CARDIN, Ms. problem. These are men and women we pairment caused by brain damage that typi- must be there for. They have served cally results from a stroke; MIKULSKI, Mr. LEVIN, Mr. BEGICH, Ms. and sacrificed and done everything this Whereas aphasia can also occur with other SNOWE, Mr. BROWN of Ohio, Mr. MORAN, country has asked of them. They have neurological disorders, such as a brain Mrs. HUTCHISON, Mr. NELSON of Florida, left their families, left their homes. tumor; Mr. GRASSLEY, Mr. LEE, Ms. LANDRIEU, They have served multiple times and Whereas many people with aphasia also Mr. BARRASSO, Ms. STABENOW, Mr. protected our Nation’s interests at have weakness or paralysis in the right leg DURBIN, Mr. BLUNT, Mrs. FEINSTEIN, and right arm, usually due to damage to the Ms. AYOTTE, Mr. ROBERTS, Mr. CASEY, home and abroad. This bill will make a left hemisphere of the brain, which controls difference for them, but we have to and Mr. BOOZMAN) submitted the fol- language and movement on the right side of lowing resolution; which was consid- make these changes now. the body; Today I am asking Members of the Whereas the effects of aphasia may include ered and agreed to: Senate from both sides of the aisle to a loss of, or reduction in, the ability to S. RES. 504 please join me in this effort. We owe speak, comprehend, read, and write, but the Whereas, in September 1972, in the midst of our veterans a medical evaluation sys- intelligence of a person with aphasia re- the Munich Olympics, the core spirit of the tem that treats them fairly, that gives mains intact; Olympics was violated when members of the them the proper diagnosis, and that Whereas, according to the National Insti- Black September Palestinian terrorist group tute of Neurological Disorders and Stroke murdered eleven members of the Israeli provides access to the mental health (referred to in this preamble as the Olympic Team consisting of athletes, coach- care they have earned and they de- ‘‘NINDS’’), strokes are the third-leading es, and referees; serve. We need to join together to get cause of death in the United States, ranking Whereas one West German police officer this legislation passed, and I ask every behind heart disease and cancer; was also killed in the terrorist attack; Member of the Senate to help me get Whereas strokes are a leading cause of se- Whereas the international community was this through. It is critical, as thou- rious, long-term disability in the United deeply touched by the brutal murders at the sands of men and women come home States; Munich Olympics and memorials have been today and thousands of them are wait- Whereas the NINDS estimates that there placed around the world, including in Rock- are approximately 5,000,000 stroke survivors land County, New York, United States; Man- ing on care. in the United States; chester, United Kingdom; Tel Aviv, Israel; Madam President, I yield the floor. Whereas the NINDS estimates that people and Munich, Germany; The PRESIDING OFFICER. The Sen- in the United States suffer approximately Whereas the International Olympic Com- ator from Ohio. 750,000 strokes per year, with about 1⁄3 of the mittee has an obligation and the ability to Mr. BROWN of Ohio. Madam Presi- strokes resulting in aphasia; fully and publicly promote the ideals em- dent, let me begin by thanking the Whereas, according to the NINDS, aphasia bodied in the Olympic Charter, which states, chair of the Senate veterans com- affects at least 1,000,000 people in the United ‘‘The goal of Olympism is to place sport at mittee for her incredible leadership on States; the service of the harmonious development one of the most tragic issues of our Whereas the NINDS estimates that more of humankind, with a view to promoting a than 200,000 people in the United States ac- peaceful society concerned with the preser- times—the suicide rate among active- quire aphasia each year; vation of human dignity.’’ duty personnel in our Armed Forces, Whereas the people of the United States Whereas no opening ceremonies of any and especially among veterans. should strive to learn more about aphasia Olympics since 1972 have marked an official Last week I spoke to the Disabled and to promote research, rehabilitation, and recognition of the terrorist attack that bru- American Veterans in Columbus. I hear support services for people with aphasia and tally betrayed the vision of the Olympic these same issues all the time, particu- aphasia caregivers throughout the United Games; and larly among men and women who are States; and Whereas the London Olympic Games in sent for their second, third, fourth, and Whereas people with aphasia and their 2012 will mark four decades since this act of caregivers envision a world that recognizes terror took place without a full and public fifth deployments. One veteran, active the ‘‘silent’’ disability of aphasia and pro- commemoration of the gravity of this tragic in the DAV, told me about an Ohio sol- vides opportunity and fulfillment for people event for all Olympians and all humankind: dier who has had a seventh deploy- affected by aphasia: Now, therefore, be it Now, therefore, be it ment. That is not what we should be Resolved, That the Senate— Resolved, That the Senate— doing, and so I appreciate Senator (1) designates June 2012 as ‘‘National Apha- (1) should observe a minute of silence to MURRAY’s leadership. sia Awareness Month’’; commemorate the 40th anniversary of the I am a member of that committee— (2) supports efforts to increase awareness 1972 Munich Olympics terrorist attack and the first Ohioan to ever serve on the of aphasia; remember those who lost their lives; (3) recognizes that strokes, a primary (2) urges the International Olympic Com- veterans committee for a full term— cause of aphasia, are the third-largest cause mittee to take the opportunity afforded by and I am on this committee because of of death and disability in the United States; the 40th anniversary of the 1972 Munich these problems. So I am thankful for (4) acknowledges that aphasia deserves Olympics terrorist attack to remind the the leadership we have on that com- more attention and study to find new solu- world that the Olympics were established to

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.031 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4464 CONGRESSIONAL RECORD — SENATE June 25, 2012 send a message of hope and peace through Sec. 102. Findings. TITLE III—ALTERNATIVE LOSS sport and athletic competition; and Sec. 103. Definitions. ALLOCATION (3) urges the International Olympic Com- Sec. 104. Extension of National Flood Insur- Sec. 301. Short title. ance Program. mittee to recognize with a minute of silence Sec. 302. Assessing and modeling named Sec. 105. Availability of insurance for multi- at the 2012 Olympics Opening Ceremony storms over coastal States. those who lost their lives at the 1972 Munich family properties. Sec. 303. Alternative loss allocation system Olympics in an effort to reject and repudiate Sec. 106. Reform of premium rate structure. for indeterminate claims. terrorism as antithetical to the Olympic Sec. 107. Areas of residual risk. goal of peaceful competition. Sec. 108. Premium adjustment. TITLE I—FLOOD INSURANCE REFORM Sec. 109. State chartered financial institu- AND MODERNIZATION f tions. SEC. 101. SHORT TITLE. Sec. 110. Enforcement. AMENDMENTS SUBMITTED AND This title may be cited as the ‘‘Flood In- PROPOSED Sec. 111. Escrow of flood insurance payments. surance Reform and Modernization Act of SA 2468. Mr. REID (for Mr. JOHNSON of Sec. 112. Minimum deductibles for claims 2012’’. South Dakota (for himself and Mr. SHELBY)) under the National Flood Insur- SEC. 102. FINDINGS. proposed an amendment to the bill S. 1940, to ance Program. Congress finds that— amend the National Flood Insurance Act of Sec. 113. Considerations in determining (1) the flood insurance claims resulting 1968, to restore the financial solvency of the chargeable premium rates. from the hurricane season of 2005 exceeded flood insurance fund, and for other purposes. Sec. 114. Reserve fund. all previous claims paid by the National SA 2469. Mr. REID (for Mr. PRYOR (for him- Sec. 115. Repayment plan for borrowing au- Flood Insurance Program; self and Mr. HOEVEN)) proposed an amend- thority. (2) in order to pay the legitimate claims of ment to amendment SA 2468 proposed by Mr. Sec. 116. Payment of condominium claims. policyholders from the hurricane season of REID (for Mr. JOHNSON of South Dakota (for Sec. 117. Technical mapping advisory coun- 2005, the Federal Emergency Management himself and Mr. SHELBY)) to the bill S. 1940, cil. Agency has borrowed $19,000,000,000 from the supra. Sec. 118. National flood mapping program. Treasury; SA 2470. Mr. REID proposed an amendment Sec. 119. Scope of appeals. (3) the interest alone on this debt has been to amendment SA 2469 proposed by Mr. REID Sec. 120. Scientific Resolution Panel. as high as $800,000,000 annually, and that the (for Mr. PRYOR (for himself and Mr. HOEVEN)) Sec. 121. Removal of limitation on State Federal Emergency Management Agency has to the amendment SA 2468 proposed by Mr. contributions for updating indicated that it will be unable to pay back REID (for Mr. JOHNSON of South Dakota (for flood maps. this debt; himself and Mr. SHELBY)) to the bill S. 1940, Sec. 122. Coordination. (4) the flood insurance program must be supra. Sec. 123. Interagency coordination study. strengthened to ensure it can pay future SA 2471. Mr. REID proposed an amendment Sec. 124. Nonmandatory participation. claims; to the bill S. 1940, supra. Sec. 125. Notice of flood insurance avail- (5) while flood insurance is mandatory in SA 2472. Mr. REID proposed an amendment ability under RESPA. the 100-year floodplain, substantial flooding to amendment SA 2471 proposed by Mr. REID Sec. 126. Participation in State disaster occurs outside of existing special flood haz- to the bill S. 1940, supra. claims mediation programs. ard areas; SA 2473. Mr. REID proposed an amendment Sec. 127. Additional authority of FEMA to (6) events throughout the country involv- to the bill S. 1940, supra. collect information on claims ing areas behind flood control structures, SA 2474. Mr. REID proposed an amendment payments. known as ‘‘residual risk’’ areas, have pro- to amendment SA 2473 proposed by Mr. REID Sec. 128. Oversight and expense reimburse- duced catastrophic losses; to the bill S. 1940, supra. ments of insurance companies. (7) although such flood control structures Sec. 129. Mitigation. SA 2475. Mr. REID proposed an amendment produce an added element of safety and Sec. 130. Flood Protection Structure Accred- to amendment SA 2474 proposed by Mr. REID therefore lessen the probability that a dis- itation Task Force. to the amendment SA 2473 proposed by Mr. aster will occur, they are nevertheless sus- Sec. 131. Flood in progress determinations. REID to the bill S. 1940, supra. ceptible to catastrophic loss, even though Sec. 132. Clarification of residential and SA 2476. Mr. LEE submitted an amendment such areas at one time were not included commercial coverage limits. intended to be proposed by him to the bill S. within the 100-year floodplain; and 1940, supra; which was ordered to lie on the Sec. 133. Local data requirement. Sec. 134. Eligibility for flood insurance for (8) voluntary participation in the National table. Flood Insurance Program has been minimal SA 2477. Mr. MERKLEY (for himself and persons residing in communities that have made adequate and many families residing outside the 100- Ms. LANDRIEU) submitted an amendment in- year floodplain remain unaware of the poten- tended to be proposed by him to the bill S. progress on the construction, reconstruction, or improvement tial risk to their lives and property. 1940, supra; which was ordered to lie on the SEC. 103. DEFINITIONS. table. of a flood protection system. Sec. 135. Studies and reports. (a) IN GENERAL.—In this title, the fol- SA 2478. Mr. MERKLEY (for himself and Sec. 136. Reinsurance. lowing definitions shall apply: Mrs. BOXER) submitted an amendment in- Sec. 137. GAO study on business interruption (1) 100-YEAR FLOODPLAIN.—The term ‘‘100- tended to be proposed by him to the bill S. and additional living expenses year floodplain’’ means that area which is 1940, supra; which was ordered to lie on the coverages. subject to inundation from a flood having a table. Sec. 138. Policy disclosures. 1-percent chance of being equaled or exceed- SA 2479. Mr. PAUL submitted an amend- Sec. 139. Report on inclusion of building ed in any given year. ment intended to be proposed by him to the codes in floodplain manage- (2) 500-YEAR FLOODPLAIN.—The term ‘‘500- bill S. 1940, supra; which was ordered to lie ment criteria. year floodplain’’ means that area which is on the table. Sec. 140. Study of participation and afford- subject to inundation from a flood having a f ability for certain policy- 0.2-percent chance of being equaled or ex- holders. TEXT OF AMENDMENTS ceeded in any given year. Sec. 141. Study and report concerning the (3) ADMINISTRATOR.—The term ‘‘Adminis- SA 2468. Mr. REID (for Mr. JOHNSON participation of Indian tribes trator’’ means the Administrator of the Fed- of South Dakota (for himself and Mr. and members of Indian tribes in eral Emergency Management Agency. SHELBY)) proposed an amendment to the National Flood Insurance (4) NATIONAL FLOOD INSURANCE PROGRAM.— the bill S. 1940, to amend the National Program. The term ‘‘National Flood Insurance Pro- Sec. 142. Technical corrections. Flood Insurance Act of 1968, to restore gram’’ means the program established under Sec. 143. Private flood insurance policies. the National Flood Insurance Act of 1968 (42 the financial solvency to the flood in- TITLE II—COMMISSION ON NATURAL CA- U.S.C. 4011 et seq.). surance fund, and for other purposes; TASTROPHE RISK MANAGEMENT AND (5) WRITE YOUR OWN.—The term ‘‘Write as follows: INSURANCE Your Own’’ means the cooperative under- Strike all after the enacting clause and in- Sec. 201. Short title. taking between the insurance industry and sert the following: Sec. 202. Findings. the Federal Insurance Administration which SECTION 1. TABLE OF CONTENTS. Sec. 203. Establishment. allows participating property and casualty The table of contents for this Act is as fol- Sec. 204. Membership. insurance companies to write and service lows: Sec. 205. Duties of the commission. standard flood insurance policies. Sec. 206. Report. (b) COMMON TERMINOLOGY.—Except as oth- Sec. 1. Table of contents. Sec. 207. Powers of the commission. erwise provided in this title, any terms used TITLE I—FLOOD INSURANCE REFORM Sec. 208. Commission personnel matters. in this title shall have the meaning given to AND MODERNIZATION Sec. 209. Termination. such terms under section 1370 of the National Sec. 101. Short title. Sec. 210. Authorization of appropriations. Flood Insurance Act of 1968 (42 U.S.C. 4121).

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.059 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4465 SEC. 104. EXTENSION OF NATIONAL FLOOD IN- aster Relief and Emergency Assistance Act and fees for flood insurance as set forth SURANCE PROGRAM. (42 U.S.C. 5122); or under section 102 of the Flood Disaster Pro- (a) FINANCING.—Section 1309(a) of the Na- ‘‘(B) in connection with— tection Act of 1973 (42 U.S.C. 4012a) with the tional Flood Insurance Act of 1968 (42 U.S.C. ‘‘(i) a repetitive loss property; or option of paying their premiums either an- 4016(a)) is amended by striking ‘‘July 31, ‘‘(ii) a severe repetitive loss property. nually or in more frequent installments.’’. 2012’’ and inserting ‘‘September 30, 2017’’. ‘‘(h) DEFINITION.—In this section, the term (e) RULE OF CONSTRUCTION.—Nothing in (b) PROGRAM EXPIRATION.—Section 1319 of ‘severe repetitive loss property’ has the fol- this section or the amendments made by this the National Flood Insurance Act of 1968 (42 lowing meaning: section may be construed to affect the re- U.S.C. 4026) is amended by striking ‘‘July 31, ‘‘(1) SINGLE-FAMILY PROPERTIES.—In the quirement under section 2(c) of the Act enti- 2012’’ and inserting ‘‘September 30, 2017’’. case of a property consisting of 1 to 4 resi- tled ‘‘An Act to extend the National Flood SEC. 105. AVAILABILITY OF INSURANCE FOR dences, such term means a property that— Insurance Program, and for other purposes’’, MULTIFAMILY PROPERTIES. ‘‘(A) is covered under a contract for flood approved May 31, 2012 (Public Law 112–123), Section 1305 of the National Flood Insur- insurance made available under this title; that the first increase in chargeable risk pre- ance Act of 1968 (42 U.S.C. 4012) is amended— and mium rates for residential properties which (1) in subsection (b)(2)(A), by inserting ‘‘(B) has incurred flood-related damage— are not the primary residence of an indi- ‘‘not described in subsection (a) or (d)’’ after ‘‘(i) for which 4 or more separate claims vidual take effect on July 1, 2012. ‘‘properties’’; and payments have been made under flood insur- SEC. 107. AREAS OF RESIDUAL RISK. (2) by adding at the end the following: ance coverage under this chapter, with the ‘‘(d) AVAILABILITY OF INSURANCE FOR MUL- (a) IN GENERAL.—Chapter III of the Na- amount of each such claim exceeding $5,000, tional Flood Insurance Act of 1968 (42 U.S.C. TIFAMILY PROPERTIES.— and with the cumulative amount of such ‘‘(1) IN GENERAL.—The Administrator shall 4101 et seq.) is amended by adding at the end claims payments exceeding $20,000; or the following: make flood insurance available to cover resi- ‘‘(ii) for which at least 2 separate claims ‘‘SEC. 1368. AREAS OF RESIDUAL RISK. dential properties of 5 or more residences. payments have been made under such cov- ‘‘(a) DEFINITIONS.— Notwithstanding any other provision of law, erage, with the cumulative amount of such ‘‘(1) AREA OF RESIDUAL RISK.—Not later the maximum coverage amount that the Ad- claims exceeding the value of the property. ministrator may make available under this than 18 months after the date of enactment ‘‘(2) MULTIFAMILY PROPERTIES.—In the case of the Flood Insurance Reform and Mod- subsection to such residential properties of a property consisting of 5 or more resi- ernization Act of 2012, the Administrator shall be equal to the coverage amount made dences, such term shall have such meaning shall establish a definition of the term ‘area available to commercial properties. as the Director shall by regulation provide.’’. ‘‘(2) RULE OF CONSTRUCTION.—Nothing in of residual risk’ for purposes of the national (2) EFFECTIVE DATE.—The amendments flood insurance program that is limited to this subsection shall be construed to limit made by paragraph (1) shall become effective areas that— the ability of individuals residing in residen- 90 days after the date of enactment of this ‘‘(A) the Administrator determines are lo- tial properties of 5 or more residences to ob- Act. cated— tain insurance for the contents and personal (b) ESTIMATES OF PREMIUM RATES.—Sec- articles located in such residences.’’. tion 1307(a)(1)(B) of the National Flood Insur- ‘‘(i) behind a levee or near a dam or other SEC. 106. REFORM OF PREMIUM RATE STRUC- ance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) is flood control structure; and TURE. amended— ‘‘(ii) in an unimpeded 100-year floodplain; (a) TO EXCLUDE CERTAIN PROPERTIES FROM (1) in clause (ii), by striking ‘‘and’’ at the and RECEIVING SUBSIDIZED PREMIUM RATES.— end; ‘‘(B) are not areas having special flood haz- (1) IN GENERAL.—Section 1307 of the Na- (2) in clause (iii), by adding ‘‘and’’ at the ards. tional Flood Insurance Act of 1968 (42 U.S.C. end; and ‘‘(2) OTHER DEFINITIONS.—In this section— 4014) is amended— (3) by inserting after clause (iii) the fol- ‘‘(A) the term ‘hydrographic subdivision’ (A) in subsection (a)(2), by striking ‘‘for lowing: means a subdivision of an area of residual any residential property which is not the pri- ‘‘(iv) all costs, as prescribed by principles risk that is determined based on unique hy- mary residence of an individual; and’’ and in- and standards of practice in ratemaking drographic characteristics; and serting the following: ‘‘for— adopted by the American Academy of Actu- ‘‘(B) the term ‘unimpeded 100-year flood- ‘‘(A) any residential property which is not aries and the Casualty Actuarial Society, in- plain’ means that area which, if no levee, the primary residence of an individual; cluding— dam, or other flood control structure were ‘‘(B) any severe repetitive loss property; ‘‘(I) an estimate of the expected value of present, would be subject to inundation from ‘‘(C) any property that has incurred flood- future costs, a flood having a 1-percent chance of being related damage in which the cumulative ‘‘(II) all costs associated with the transfer equaled or exceeded in any given year. amounts of payments under this title of risk, and ‘‘(b) TREATMENT OF AREAS OF RESIDUAL equaled or exceeded the fair market value of ‘‘(III) the costs associated with an indi- RISK.—Except as otherwise provided in this such property; vidual risk transfer with respect to risk section, this title, the Flood Disaster Protec- ‘‘(D) any business property; or classes, as defined by the Administrator,’’. tion Act of 1973 (42 U.S.C. 4002 et seq.), and ‘‘(E) any property which on or after the (c) INCREASE IN ANNUAL LIMITATION ON PRE- the Flood Insurance Reform and Moderniza- date of enactment of the Flood Insurance Re- MIUM INCREASES.—Section 1308(e) of the Na- tion Act of 2012 shall apply to an area of reform and Modernization Act of 2012 has expe- tional Flood Insurance Act of 1968 (42 U.S.C. sidual risk as if it were an area having spe- rienced or sustained— 4015(e)) is amended— cial flood hazards. ‘‘(i) substantial damage exceeding 50 per- (1) in the matter preceding paragraph (1)— ‘‘(c) EXEMPTION FROM FLOODPLAIN MANAGE- cent of the fair market value of such prop- (A) by striking ‘‘or (3)’’; and MENT REQUIREMENTS.—A State or local gov- erty; or (B) by inserting ‘‘any properties’’ after ernment with jurisdiction of an area of resid- ‘‘(ii) substantial improvement exceeding 30 ‘‘under this title for’’; ual risk (or subdivision thereof) shall not be percent of the fair market value of such (2) in paragraph (1)— required to adopt land use and control meas- property; and’’; and (A) by striking ‘‘any properties within any ures in the area of residual risk (or subdivi- (B) by adding at the end the following: single’’ and inserting ‘‘within any single’’; sion thereof) that are consistent with the ‘‘(g) NO EXTENSION OF SUBSIDY TO NEW and comprehensive criteria for land management POLICIES OR LAPSED POLICIES.—The Adminis- (B) by striking ‘‘10 percent’’ and inserting and use developed by the Administrator trator shall not provide flood insurance to ‘‘15 percent’’; and under section 1361. prospective insureds at rates less than those (3) by striking paragraph (2) and inserting ‘‘(d) PRICING IN AREAS OF RESIDUAL RISK.— estimated under subsection (a)(1), as re- the following: In carrying out section 102 of the Flood Dis- quired by paragraph (2) of that subsection, ‘‘(2) described in subparagraphs (A) aster Protection Act of 1973 (42 U.S.C. 4012a), for— through (E) of section 1307(a)(2) shall be in- the Administrator shall ensure that the risk ‘‘(1) any property not insured by the flood creased by 25 percent each year, until the av- premium rate for flood insurance policies for insurance program as of the date of enact- erage risk premium rate for such properties a hydrographic subdivision does not exceed a ment of the Flood Insurance Reform and is equal to the average of the risk premium rate that adequately reflects— Modernization Act of 2012; rates for properties described under para- ‘‘(1) the level of flood protection provided ‘‘(2) any policy under the flood insurance graph (1).’’. to the hydrographic subdivision by any program that has lapsed in coverage, as a re- (d) PREMIUM PAYMENT FLEXIBILITY FOR levee, dam, or other flood control structure, sult of the deliberate choice of the holder of NEW AND EXISTING POLICYHOLDERS.—Section regardless of the certification status of the such policy; or 1308 of the National Flood Insurance Act of flood control structure; and ‘‘(3) any prospective insured who refuses to 1968 (42 U.S.C. 4015) is amended by adding at ‘‘(2) any historical flooding event in the accept any offer for mitigation assistance by the end the following: area. the Administrator (including an offer to re- ‘‘(g) FREQUENCY OF PREMIUM COLLECTION.— ‘‘(e) WAIVER OF MANDATORY PURCHASE RE- locate), including an offer of mitigation as- With respect to any chargeable premium QUIREMENTS FOR DE MINIMIS RISK.—The resistance— rate prescribed under this section, the Ad- quirements under sections 102 and 202 of the ‘‘(A) following a major disaster, as defined ministrator shall provide policyholders that Flood Disaster Protection Act of 1973 (42 in section 102 of the Robert T. Stafford Dis- are not required to escrow their premiums U.S.C. 4012a and 4106) shall not apply to any

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.065 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4466 CONGRESSIONAL RECORD — SENATE June 25, 2012 property in an area of residual risk for which (v) the extent to which the risk premium sults and conclusions of the study conducted the risk premium, as established in accord- rates under the National Flood Insurance under paragraph (1). ance with subsection (d), is less than the Program for property in the areas of residual (B) CONTENTS.—The report submitted equivalent of $1 per day, as determined by risk behind levees adequately account for— under subparagraph (A) shall include rec- the Administrator. (I) the design of the levees; ommendations for— ‘‘(f) DECERTIFICATION.—Upon decertifica- (II) the soundness of the levees; (i) the best manner to incorporate vol- tion of any levee, dam, or flood control (III) the hydrography of the areas of resid- untary community-based flood insurance structure under the jurisdiction of the ual risk; and policies into the National Flood Insurance United States Army Corps of Engineers, the (IV) any historical flooding in the areas of Program; and Chief of Engineers shall immediately provide residual risk. (ii) a strategy to implement voluntary notice to the Administrator.’’. (2) REPORTS.— community-based flood insurance policies (b) DEFINITION.—In this section, the term (A) INITIAL REPORT.—Not later than 12 that would encourage communities to under- ‘‘area of residual risk’’ has the meaning months after the effective date described in take flood mitigation activities, including given that term under section 1368 of the Na- subsection (c), the Comptroller General shall the construction, reconstruction, or im- tional Flood Insurance Act of 1968, as added submit to Congress a report that— provement of levees, dams, or other flood by this section. (i) contains the results of the study re- control structures. (c) EFFECTIVE DATE FOR MANDATORY PUR- quired under paragraph (1); and (3) REPORT BY COMPTROLLER GENERAL.—Not CHASE REQUIREMENT.—The requirements under sections 102 and 202 of the Flood Dis- (ii) provides recommendations to the Ad- later than 6 months after the date on which aster Protection Act of 1973 (42 U.S.C. 4012a ministrator on improvements that may re- the Administrator submits the report re- and 4106) shall not apply to any area of resid- sult in more accurate estimates of varying quired under paragraph (2), the Comptroller ual risk, until— levels of residual risk behind levees and General of the United States shall— (1) the Administrator submits to Congress other flood control structures. (A) review the report submitted by the Ad- a certification that the Administrator has (B) UPDATED REPORT.—Not later than 5 ministrator; and completed a study of levels of flood risk that years after the date on which the Comp- (B) submit to the Committee on Banking, provides adequate methodologies for the Ad- troller General submits the report under sub- Housing, and Urban Affairs of the Senate and ministrator to estimate varying levels of paragraph (A), the Comptroller General the Committee on Financial Services of the flood risk for areas of residual risk; shall— House of Representatives a report that con- (2) the mapping of all areas of residual risk (i) update the study conducted under para- tains— in the United States that are essential in graph (1); and (i) an analysis of the report submitted by order to administer the National Flood In- (ii) submit to Congress an updated report the Administrator; surance Program, as required under section that— (ii) any comments or recommendations of 118 of this Act, is in the maintenance phase; (I) contains the results of the updated the Comptroller General relating to the re- and study required under clause (i); and port submitted by the Administrator; and (3) in the case of areas of residual risk be- (II) provides recommendations to the Ad- (iii) any other recommendations of the hind levees, the Administrator submits to ministrator on improvements that may re- Comptroller General relating to community- Congress a certification that the Adminis- sult in more accurate estimates of varying based flood insurance policies. trator is able to adequately estimate varying levels of residual risk behind levees and SEC. 108. PREMIUM ADJUSTMENT. levels of residual risk behind levees based other flood control structures. Section 1308 of the National Flood Insur- on— (3) ADJUSTMENT OF METHODOLOGIES.—The ance Act of 1968 (42 U.S.C. 4015), as amended (A) the design of the levees; Administrator shall, to the extent prac- by section 106, is further amended by adding (B) the soundness of the levees; ticable, adjust the methodologies used to es- at the end the following: (C) the hydrography of the areas of resid- timate the varying levels of residual risk be- ‘‘(h) PREMIUM ADJUSTMENT TO REFLECT ual risk; and hind levees and other flood control struc- CURRENT RISK OF FLOOD.—Notwithstanding (D) appropriate consideration of historical tures based on the recommendations sub- subsection (f), upon the effective date of any flooding events in the areas of residual risk. mitted by the Comptroller General under revised or updated flood insurance rate map (d) STUDY AND REPORT ON MANDATORY PUR- subparagraphs (A)(ii) and (B)(ii)(II). under this Act, the Flood Disaster Protec- CHASE REQUIREMENTS IN RESIDUAL RISK (e) STUDY OF VOLUNTARY COMMUNITY-BASED tion Act of 1973, or the Flood Insurance Re- AREAS.— FLOOD INSURANCE OPTIONS.— form and Modernization Act of 2012, any (1) STUDY.— (1) STUDY.— property located in an area that is partici- (A) IN GENERAL.—The Comptroller General (A) STUDY REQUIRED.—The Administrator pating in the national flood insurance proof the United States shall conduct a study shall conduct a study to assess options, gram shall have the risk premium rate assessing the impact and effectiveness of ap- methods, and strategies for making available charged for flood insurance on such property plying the mandatory purchase requirements voluntary community-based flood insurance adjusted to accurately reflect the current under sections 102 and 202 of the Flood Dis- policies through the National Flood Insur- risk of flood to such property, subject to any aster Protection Act of 1973 (42 U.S.C. 4012a ance Program. other provision of this Act. Any increase in and 4106) to properties located in areas of re- (B) CONSIDERATIONS.—The study conducted the risk premium rate charged for flood in- sidual risk. under subparagraph (A) shall — surance on any property that is covered by a (B) AREAS OF STUDY.—In carrying out the (i) take into consideration and analyze how flood insurance policy on the effective date study required under subparagraph (A), the voluntary community-based flood insurance of such an update that is a result of such up- Comptroller General shall evaluate— policies— dating shall be phased in over a 4-year pe- (i) the regulatory, financial, and economic (I) would affect communities having vary- riod, at the rate of 40 percent for the first impact of applying the mandatory purchase ing economic bases, geographic locations, year following such effective date and 20 per- requirements described in subparagraph (A) flood hazard characteristics or classifica- cent for each of the second, third, and fourth to areas of residual risk on— tions, and flood management approaches; years following such effective date. In the (I) the costs of homeownership; and case of any area that was not previously des- (II) the actuarial soundness of the National (II) could satisfy the applicable require- ignated as an area having special flood haz- Flood Insurance Program; ments under section 102 of the Flood Dis- ards and that, pursuant to any issuance, re- (III) the Federal Emergency Management aster Protection Act of 1973 (42 U.S.C. 4012a); vision, updating, or other change in a flood Agency; and insurance map, becomes designated as such (IV) communities located in areas of resid- (ii) evaluate the advisability of making an area, the chargeable risk premium rate ual risk; available voluntary community-based flood for flood insurance under this title that is (V) insurance companies participating in insurance policies to communities, subdivi- purchased on or after the date of enactment the National Flood Insurance Program; and sions of communities, and areas of residual of this subsection with respect to any prop- (VI) the Disaster Relief Fund; risk. erty that is located within such area shall be (ii) the effectiveness of the mandatory pur- (C) CONSULTATION.—In conducting the phased in over a 4-year period, at the rate of chase requirements in protecting— study required under subparagraph (A), the 40 percent for the first year following the ef- (I) homeowners and taxpayers in the Administrator may consult with the Comp- fective date of such issuance, revision, up- United States from financial loss; and troller General of the United States, as the dating, or change and 20 percent for each of (II) the financial soundness of the National Administrator determines is appropriate. the second, third, and fourth years following Flood Insurance Program; (2) REPORT BY THE ADMINISTRATOR.— such effective date.’’. (iii) the impact on lenders of complying (A) REPORT REQUIRED.—Not later than 18 SEC. 109. STATE CHARTERED FINANCIAL INSTI- with or enforcing the mandatory purchase months after the date of enactment of this TUTIONS. requirements; Act, the Administrator shall submit to the Section 1305(c) of the National Flood Insur- (iv) the methodology that the Adminis- Committee on Banking, Housing, and Urban ance Act of 1968 (42 U.S.C. 4012(c)) is amend- trator uses to adequately estimate the vary- Affairs of the Senate and the Committee on ed— ing levels of residual risk behind levees and Financial Services of the House of Rep- (1) in paragraph (1), by striking ‘‘, and’’ and other flood control structures; and resentatives a report that contains the re- inserting a semicolon;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.065 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4467 (2) in paragraph (2), by striking the period tate or a mobile home, shall be paid to the or substantial improvement occurred on or at the end and inserting ‘‘; and’’; regulated lending institution or servicer for before December 31, 1974, or before the effec- (3) by redesignating paragraphs (1) and (2) any loan secured by the improved real estate tive date of an initial flood insurance rate as subparagraphs (A) and (B), respectively; or mobile home, with the same frequency as map published by the Administrator under (4) by inserting after subparagraph (B), as payments on the loan are made, for the dura- section 1360 for the area in which such struc- so redesignated, the following: tion of the loan. Except as provided in sub- ture is located, the minimum annual deduct- ‘‘(C) given satisfactory assurance that by paragraph (C), upon receipt of any premiums ible for damage to such structure shall be— the date that is 6 months after the date of or fees, the regulated lending institution or ‘‘(A) $1,500, if the flood insurance coverage enactment of the Flood Insurance Reform servicer shall deposit such premiums and for such structure covers loss of, or physical and Modernization Act of 2012, State lending fees in an escrow account on behalf of the damage to, such structure in an amount institutions, as defined in section 3 of the borrower. Upon receipt of a notice from the equal to or less than $100,000; and Flood Disaster Protection Act of 1973 (42 Administrator or the provider of the flood ‘‘(B) $2,000, if the flood insurance coverage U.S.C. 4003), shall be subject to regulations insurance that insurance premiums are due, for such structure covers loss of, or physical by that State that are consistent with the the premiums deposited in the escrow ac- damage to, such structure in an amount requirements of section 102 of the Flood Dis- count shall be paid to the provider of the greater than $100,000. aster Protection Act of 1973 (42 U.S.C. flood insurance. ‘‘(2) POST-FIRM PROPERTIES.—For any 4012a).’’; ‘‘(B) STATE ENTITIES RESPONSIBLE FOR structure which is covered by flood insur- (5) in the matter preceding subparagraph LENDING REGULATIONS.—In order to continue ance under this title, and on which construc- (A), as so redesignated, by striking ‘‘The Di- to participate in the flood insurance pro- tion or substantial improvement occurred rector’’ and inserting the following: gram, each State shall direct that its State after December 31, 1974, or after the effective ‘‘(1) IN GENERAL.—The Administrator’’; and entity for lending regulation require that date of an initial flood insurance rate map (6) by adding at the end the following: premiums and fees for flood insurance under published by the Administrator under sec- ‘‘(2) SHORT-TERM WAIVERS.— the National Flood Insurance Act of 1968, for tion 1360 for the area in which such structure ‘‘(A) IN GENERAL.—The Administrator may, improved real estate or a mobile home shall is located, the minimum annual deductible upon the request of a State, not later than 6 be paid to the State lending institution or for damage to such structure shall be— months after the date of enactment of this servicer for any loan secured by the im- ‘‘(A) $1,000, if the flood insurance coverage paragraph, grant a temporary waiver of the proved real estate or mobile home, with the for such structure covers loss of, or physical requirements under paragraph (1)(C) with re- same frequency as payments on the loan are damage to, such structure in an amount spect to a State entity for lending regula- made, for the duration of the loan. Except as equal to or less than $100,000; and tion, as defined in section 3 of the Flood Dis- provided in subparagraph (C), upon receipt of ‘‘(B) $1,250, if the flood insurance coverage aster Protection Act of 1973, that does not any premiums or fees, the State lending infor such structure covers loss of, or physical have the authority under State law to com- stitution or servicer shall deposit such pre- damage to, such structure in an amount ply with paragraph (1)(C). miums and fees in an escrow account on be- greater than $100,000.’’. ‘‘(B) CONSIDERATIONS.—In determining the half of the borrower. Upon receipt of a notice SEC. 113. CONSIDERATIONS IN DETERMINING length of time a waiver under subparagraph from the Administrator or the provider of CHARGEABLE PREMIUM RATES. (A) will be in effect, the Administrator shall the flood insurance that insurance premiums Section 1308 of the National Flood Insur- consider the time anticipated for— are due, the premiums deposited in the es- ance Act of 1968 (42 U.S.C. 4015), as amended ‘‘(i) the State to enact a law to grant the crow account shall be paid to the provider of by this Act, is amended— authority necessary to comply with para- the flood insurance. (1) in subsection (a), by striking ‘‘, after graph (1)(C); and ‘‘(C) LIMITATION.—Except as may be re- consultation with’’ and all that follows ‘‘(ii) the State entity for lending regula- quired under applicable State law, neither a through ‘‘by regulation’’ and inserting ‘‘pre- tion to issue regulations necessary to com- Federal entity for lending regulation nor a scribe, after providing notice’’; ply with paragraph (1)(C).’’. State entity for lending regulation may di- (2) in subsection (b)— (A) in paragraph (1), by striking the period SEC. 110. ENFORCEMENT. rect or require a regulated lending institu- at the end and inserting a semicolon; Section 102(f)(5) of the Flood Disaster Pro- tion or State lending institution to deposit (B) in paragraph (2), by striking the tection Act of 1973 (42 U.S.C. 4012a(f)(5)) is premiums or fees for flood insurance under comma at the end and inserting a semicolon; amended— the National Flood Insurance Act of 1968 in (C) in paragraph (3), by striking ‘‘, and’’ (1) in the first sentence, by striking ‘‘$350’’ an escrow account on behalf of a borrower and inserting a semicolon; and inserting ‘‘$2,000’’; and under subparagraph (A) or (B), if— (D) in paragraph (4), by striking the period (2) by striking the second sentence. ‘‘(i) the regulated lending institution or State lending institution has total assets of at the end and inserting ‘‘; and’’; and SEC. 111. ESCROW OF FLOOD INSURANCE PAY- (E) by adding at the end the following: MENTS. less than $1,000,000,000; and ‘‘(5) adequate, on the basis of accepted ac- (a) IN GENERAL.— ‘‘(ii) on or before the date of enactment of tuarial principles, to cover the average his- (1) DEFINITIONS.—Section 3 of the Flood the Flood Insurance Reform and Moderniza- torical loss year obligations incurred by the Disaster Protection Act of 1973 (42 U.S.C. tion Act of 2012, the regulated lending insti- National Flood Insurance Fund.’’; and 4003) is amended— tution or State lending institution— (3) by adding at the end the following: (A) in paragraph (10), by striking ‘‘and’’ at ‘‘(I) in the case of a loan secured by residential improved real estate or a mobile ‘‘(i) RULE OF CONSTRUCTION.—For purposes the end; of this section, the calculation of an ‘average (B) in paragraph (11), by striking the pe- home, was not required under Federal or State law to deposit taxes, insurance pre- historical loss year’— riod at the end and inserting a semicolon; ‘‘(1) includes catastrophic loss years; and and miums, fees, or any other charges in an escrow account for the entire term of the loan; ‘‘(2) shall be computed in accordance with (C) by adding at the end the following: generally accepted actuarial principles.’’. ‘‘(12) ‘State entity for lending regulation’ and ‘‘(II) did not have a policy of consistently SEC. 114. RESERVE FUND. means the State entity or agency with pri- Chapter I of the National Flood Insurance mary responsibility for the supervision or and uniformly requiring the deposit of taxes, insurance premiums, fees, or any other Act of 1968 (42 U.S.C. 4011 et seq.) is amended regulation of State lending institutions in a by inserting after section 1310 (42 U.S.C. 4017) State; and charges in an escrow account for loans secured by residential improved real estate or the following: ‘‘(13) ‘State lending institution’ means any ‘‘SEC. 1310A. RESERVE FUND. bank, savings and loan association, credit a mobile home.’’. (b) APPLICABILITY.—The amendment made ‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In union, farm credit bank, production credit by subsection (a)(2) shall apply to any mort- carrying out the flood insurance program au- association, or similar lending institution gage outstanding or entered into on or after thorized by this chapter, the Administrator subject to the supervision or regulation of a the expiration of the 2-year period beginning shall establish in the Treasury of the United State entity for lending regulation.’’. on the date of enactment of this Act. States a National Flood Insurance Reserve (2) ESCROW REQUIREMENTS.—Paragraph (1) SEC. 112. MINIMUM DEDUCTIBLES FOR CLAIMS Fund (in this section referred to as the ‘Re- of section 102(d) of the Flood Disaster Pro- UNDER THE NATIONAL FLOOD IN- serve Fund’) which shall— tection Act of 1973 (42 U.S.C. 4012a(d)) is SURANCE PROGRAM. ‘‘(1) be an account separate from any other amended to read as follows: Section 1312 of the National Flood Insur- accounts or funds available to the Adminis- ‘‘(1) REGULATED LENDING INSTITUTIONS AND ance Act of 1968 (42 U.S.C. 4019) is amended— trator; and STATE LENDING INSTITUTIONS.— (1) by striking ‘‘The Director is’’ and in- ‘‘(2) be available for meeting the expected ‘‘(A) FEDERAL ENTITIES RESPONSIBLE FOR serting the following: future obligations of the flood insurance pro- LENDING REGULATIONS.—Each Federal entity ‘‘(a) IN GENERAL.—The Administrator is’’; gram. for lending regulation (after consultation and ‘‘(b) RESERVE RATIO.—Subject to the phase- and coordination with the Federal Financial (2) by adding at the end the following: in requirements under subsection (d), the Re- Institutions Examination Council) shall, by ‘‘(b) MINIMUM ANNUAL DEDUCTIBLE.— serve Fund shall maintain a balance equal regulation, direct that all premiums and fees ‘‘(1) PRE-FIRM PROPERTIES.—For any struc- to— for flood insurance under the National Flood ture which is covered by flood insurance ‘‘(1) 1 percent of the sum of the total po- Insurance Act of 1968, for improved real es- under this title, and on which construction tential loss exposure of all outstanding flood

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.065 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4468 CONGRESSIONAL RECORD — SENATE June 25, 2012 insurance policies in force in the prior fiscal ‘‘(3) the Committee on Financial Services (xiii) a member of a recognized risk man- year; or of the House of Representatives. agement association or organization; and ‘‘(2) such higher percentage as the Admin- ‘‘(d) In connection with any funds bor- (xiv) a State mitigation officer. istrator determines to be appropriate, taking rowed by the Administrator under the au- (2) QUALIFICATIONS.—Members of the Coun- into consideration any circumstance that thority established in subsection (a), the Ad- cil shall be appointed based on their dem- may raise a significant risk of substantial ministrator, beginning 6 months after the onstrated knowledge and competence regard- future losses to the Reserve Fund. date on which such funds are borrowed, and ing surveying, cartography, remote sensing, ‘‘(c) MAINTENANCE OF RESERVE RATIO.— continuing every 6 months thereafter until geographic information systems, or the tech- ‘‘(1) IN GENERAL.—The Administrator shall such borrowed funds are fully repaid, shall nical aspects of preparing and using flood in- have the authority to establish, increase, or submit a report on the progress of such re- surance rate maps. decrease the amount of aggregate annual in- payment to— (c) DUTIES.—The Council shall— surance premiums to be collected for any fis- ‘‘(1) the Secretary of the Treasury; (1) recommend to the Administrator how cal year necessary— ‘‘(2) the Committee on Banking, Housing, to improve in a cost-effective manner the— ‘‘(A) to maintain the reserve ratio required and Urban Affairs of the Senate; and (A) accuracy, general quality, ease of use, under subsection (b); and ‘‘(3) the Committee on Financial Services and distribution and dissemination of flood ‘‘(B) to achieve such reserve ratio, if the of the House of Representatives.’’. insurance rate maps and risk data; and actual balance of such reserve is below the SEC. 116. PAYMENT OF CONDOMINIUM CLAIMS. (B) performance metrics and milestones re- amount required under subsection (b). Section 1312 of the National Flood Insur- quired to effectively and efficiently map ‘‘(2) CONSIDERATIONS.—In exercising the au- ance Act of 1968 (42 U.S.C. 4019), as amended flood risk areas in the United States; thority granted under paragraph (1), the Ad- by section 112, is amended by adding at the (2) recommend to the Administrator map- ministrator shall consider— end the following: ping standards and guidelines for— ‘‘(A) the expected operating expenses of the ‘‘(c) PAYMENT OF CLAIMS TO CONDOMINIUM (A) flood insurance rate maps; and Reserve Fund; OWNERS.—The Administrator may not deny (B) data accuracy, data quality, data cur- payment for any damage to or loss of prop- ‘‘(B) the insurance loss expenditures under rency, and data eligibility; erty which is covered by flood insurance to the flood insurance program; (3) recommend to the Administrator how condominium owners who purchased such ‘‘(C) any investment income generated to maintain, on an ongoing basis, flood in- flood insurance separate and apart from the under the flood insurance program; and surance rate maps and flood risk identifica- flood insurance purchased by the condo- ‘‘(D) any other factor that the Adminis- tion; minium association in which such owner is a trator determines appropriate. (4) recommend procedures for delegating member, based solely, or in any part, on the ‘‘(3) LIMITATIONS.—In exercising the au- mapping activities to State and local map- flood insurance coverage of the condo- thority granted under paragraph (1), the Ad- ping partners; minium association or others on the overall ministrator shall be subject to all other pro- (5) recommend to the Administrator and property owned by the condominium associa- visions of this Act, including any provisions other Federal agencies participating in the tion.’’. relating to chargeable premium rates or an- Council— SEC. 117. TECHNICAL MAPPING ADVISORY COUN- nual increases of such rates. (A) methods for improving interagency and CIL. intergovernmental coordination on flood ‘‘(d) PHASE-IN REQUIREMENTS.—The phase- (a) ESTABLISHMENT.—There is established a in requirements under this subsection are as mapping and flood risk determination; and council to be known as the Technical Map- (B) a funding strategy to leverage and co- follows: ping Advisory Council (in this section re- ‘‘(1) IN GENERAL.—Beginning in fiscal year ordinate budgets and expenditures across ferred to as the ‘‘Council’’). Federal agencies; and 2013 and not ending until the fiscal year in (b) MEMBERSHIP.— (6) submit an annual report to the Admin- which the ratio required under subsection (b) (1) IN GENERAL.—The Council shall consist istrator that contains— is achieved, in each such fiscal year the Ad- of— (A) a description of the activities of the ministrator shall place in the Reserve Fund (A) the Administrator (or the designee Council; an amount equal to not less than 7.5 percent thereof); (B) an evaluation of the status and per- of the reserve ratio required under sub- (B) the Secretary of the Interior (or the formance of flood insurance rate maps and section (b). designee thereof); mapping activities to revise and update flood ‘‘(2) AMOUNT SATISFIED.—As soon as the (C) the Secretary of Agriculture (or the insurance rate maps, as required under sec- ratio required under subsection (b) is designee thereof); tion 118; and achieved, and except as provided in para- (D) the Under Secretary of Commerce for (C) a summary of recommendations made graph (3), the Administrator shall not be re- Oceans and Atmosphere (or the designee by the Council to the Administrator. quired to set aside any amounts for the Re- thereof); and (d) FUTURE CONDITIONS RISK ASSESSMENT serve Fund. (E) 14 additional members appointed by the AND MODELING REPORT.— ‘‘(3) EXCEPTION.—If at any time after the Administrator or the designee of the Admin- ratio required under subsection (b) is (1) IN GENERAL.—The Council shall consult istrator, who shall be— with scientists and technical experts, other achieved, the Reserve Fund falls below the (i) a member of a recognized professional required ratio under subsection (b), the Ad- Federal agencies, States, and local commu- surveying association or organization; nities to— ministrator shall place in the Reserve Fund (ii) a member of a recognized professional for that fiscal year an amount equal to not (A) develop recommendations on how to— mapping association or organization; (i) ensure that flood insurance rate maps less than 7.5 percent of the reserve ratio re- (iii) a member of a recognized professional quired under subsection (b). incorporate the best available climate engineering association or organization; science to assess flood risks; and ‘‘(e) LIMITATION ON RESERVE RATIO.—In any (iv) a member of a recognized professional given fiscal year, if the Administrator deter- (ii) ensure that the Federal Emergency association or organization representing Management Agency uses the best available mines that the reserve ratio required under flood hazard determination firms; subsection (b) cannot be achieved, the Ad- methodology to consider the impact of— (v) a representative of the United States (I) the rise in the sea level; and ministrator shall submit a report to Con- Geological Survey; gress that— (II) future development on flood risk; and (vi) a representative of a recognized profes- (B) not later than 1 year after the date of ‘‘(1) describes and details the specific con- sional association or organization rep- cerns of the Administrator regarding the enactment of this Act, prepare written rec- resenting State geographic information; ommendations in a future conditions risk as- consequences of the reserve ratio not being (vii) a representative of State national achieved; sessment and modeling report and to submit flood insurance coordination offices; such recommendations to the Administrator. ‘‘(2) demonstrates how such consequences (viii) a representative of the Corps of Engi- (2) RESPONSIBILITY OF THE ADMINIS- would harm the long-term financial sound- neers; ness of the flood insurance program; and TRATOR.—The Administrator, as part of the (ix) a member of a recognized regional ongoing program to review and update Na- ‘‘(3) indicates the maximum attainable re- flood and storm water management organi- serve ratio for that particular fiscal year.’’. tional Flood Insurance Program rate maps zation; under section 118, shall incorporate any fu- SEC. 115. REPAYMENT PLAN FOR BORROWING (x) a representative of a State agency that ture risk assessment submitted under para- AUTHORITY. has entered into a cooperating technical graph (1)(B) in any such revision or update. Section 1309 of the National Flood Insur- partnership with the Administrator and has (e) CHAIRPERSON.—The members of the ance Act of 1968 (42 U.S.C. 4016) is amended demonstrated the capability to produce flood Council shall elect 1 member to serve as the by adding at the end the following: insurance rate maps; chairperson of the Council (in this section ‘‘(c) Upon the exercise of the authority es- (xi) a representative of a local government referred to as the ‘‘Chairperson’’). tablished under subsection (a), the Adminis- agency that has entered into a cooperating (f) COORDINATION.—To ensure that the trator shall transmit a schedule for repay- technical partnership with the Adminis- Council’s recommendations are consistent, ment of such amounts to— trator and has demonstrated the capability to the maximum extent practicable, with na- ‘‘(1) the Secretary of the Treasury; to produce flood insurance rate maps; tional digital spatial data collection and ‘‘(2) the Committee on Banking, Housing, (xii) a member of a recognized floodplain management standards, the Chairperson and Urban Affairs of the Senate; and management association or organization; shall consult with the Chairperson of the

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.065 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4469 Federal Geographic Data Committee (estab- (C) use, in identifying, reviewing, updating, may result from the mapping program relished pursuant to Office of Management and maintaining, or publishing any National quired under this section; and Budget Circular A–16). Flood Insurance Program rate map required (ii) that any such changes may have on (g) COMPENSATION.—Members of the Coun- under this section or under the National flood insurance purchase requirements; and cil shall receive no additional compensation Flood Insurance Act of 1968 (42 U.S.C. 4011 et (B) engage with local communities to en- by reason of their service on the Council. seq.), the most accurate topography and ele- hance communication and outreach to the (h) MEETINGS AND ACTIONS.— vation data available. residents of such communities on the mat- (1) IN GENERAL.—The Council shall meet (2) MAPPING ELEMENTS.—Each map updated ters described under subparagraph (A). not less frequently than twice each year at under this section shall— (2) REQUIRED ACTIVITIES.—The communica- the request of the Chairperson or a majority (A) assess the accuracy of current ground tion and outreach activities required under of its members, and may take action by a elevation data used for hydrologic and hy- paragraph (1) shall include— vote of the majority of the members. draulic modeling of flooding sources and (A) notifying property owners when their (2) INITIAL MEETING.—The Administrator, mapping of the flood hazard and wherever properties become included in, or when they or a person designated by the Administrator, necessary acquire new ground elevation data are excluded from, an area covered by the shall request and coordinate the initial utilizing the most up-to-date geospatial mandatory flood insurance purchase require- meeting of the Council. technologies in accordance with guidelines ment under section 102 of the Flood Disaster (i) OFFICERS.—The Chairperson may ap- and specifications of the Federal Emergency Protection Act of 1973 (42 U.S.C. 4012a); point officers to assist in carrying out the Management Agency; and (B) educating property owners regarding duties of the Council under subsection (c). (B) develop National Flood Insurance Pro- the flood risk and reduction of this risk in (j) STAFF.— gram flood data on a watershed basis— their community, including the continued (1) STAFF OF FEMA.—Upon the request of (i) to provide the most technically effec- flood risks to areas that are no longer sub- the Chairperson, the Administrator may de- tive and efficient studies and hydrologic and ject to the flood insurance mandatory pur- tail, on a nonreimbursable basis, personnel hydraulic modeling; and chase requirement; of the Federal Emergency Management (ii) to eliminate, to the maximum extent (C) educating property owners regarding Agency to assist the Council in carrying out possible, discrepancies in base flood ele- the benefits and costs of maintaining or ac- its duties. vations between adjacent political subdivi- quiring flood insurance, including, where ap- (2) STAFF OF OTHER FEDERAL AGENCIES.— sions. plicable, lower-cost preferred risk policies Upon request of the Chairperson, any other (3) OTHER INCLUSIONS.—In updating maps under the National Flood Insurance Act of Federal agency that is a member of the under this section, the Administrator shall 1968 (42 U.S.C. 4011 et seq.) for such prop- Council may detail, on a nonreimbursable include— erties and the contents of such properties; basis, personnel to assist the Council in car- (A) any relevant information on coastal in- (D) educating property owners about flood rying out its duties. undation from— map revisions and the process available to (k) POWERS.—In carrying out this section, such owners to appeal proposed changes in the Council may hold hearings, receive evi- (i) an applicable inundation map of the Corps of Engineers; and flood elevations through their community; dence and assistance, provide information, and and conduct research, as it considers appro- (ii) data of the National Oceanic and At- mospheric Administration relating to storm (E) encouraging property owners to main- priate. tain or acquire flood insurance coverage. surge modeling; (l) REPORT TO CONGRESS.—The Adminis- (e) AUTHORIZATION OF APPROPRIATIONS.— trator, on an annual basis, shall report to (B) any relevant information of the United There is authorized to be appropriated to the the Committee on Banking, Housing, and States Geological Survey on stream flows, Administrator to carry out this section Urban Affairs of the Senate, the Committee watershed characteristics, and topography $400,000,000 for each of fiscal years 2013 on Financial Services of the House of Rep- that is useful in the identification of flood through 2017. hazard areas, as determined by the Adminis- resentatives, and the Office of Management SEC. 119. SCOPE OF APPEALS. and Budget on the— trator; Section 1363 of the National Flood Insur- (1) recommendations made by the Council; (C) any relevant information on land sub- ance Act of 1968 (42 U.S.C. 4104) is amended— (2) actions taken by the Federal Emer- sidence, coastal erosion areas, and other (1) in subsection (a)— gency Management Agency to address such flood-related hazards; (A) by inserting ‘‘and designating areas recommendations to improve flood insurance (D) any relevant information or data of the having special flood hazards’’ after ‘‘flood rate maps and flood risk data; and National Oceanic and Atmospheric Adminis- elevations’’; and (3) any recommendations made by the tration and the United States Geological (B) by striking ‘‘such determinations’’ and Council that have been deferred or not acted Survey relating to the best available climate inserting ‘‘such determinations and designa- upon, together with an explanatory state- science and the potential for future inunda- tions’’; and ment. tion from sea level rise, increased precipita- (2) in subsection (b)— SEC. 118. NATIONAL FLOOD MAPPING PROGRAM. tion, and increased intensity of hurricanes (A) in the first sentence, by inserting ‘‘and (a) REVIEWING, UPDATING, AND MAINTAINING due to global warming; and designations of areas having special flood MAPS.—The Administrator, in coordination (E) any other relevant information as may hazards’’ after ‘‘flood elevation determina- with the Technical Mapping Advisory Coun- be recommended by the Technical Mapping tions’’; and cil established under section 117, shall estab- Advisory Committee. (B) by amending the third sentence to read lish an ongoing program under which the Ad- (c) STANDARDS.—In updating and maintain- as follows: ‘‘The sole grounds for appeal shall ministrator shall review, update, and maining maps under this section, the Adminis- be the possession of knowledge or informa- tain National Flood Insurance Program rate trator shall— tion indicating that (1) the elevations being maps in accordance with this section. (1) establish standards to— proposed by the Administrator with respect (b) MAPPING.— (A) ensure that maps are adequate for— to an identified area having special flood (1) IN GENERAL.—In carrying out the pro- (i) flood risk determinations; and hazards are scientifically or technically ingram established under subsection (a), the (ii) use by State and local governments in correct, or (2) the designation of an identi- Administrator shall— managing development to reduce the risk of fied special flood hazard area is scientifically (A) identify, review, update, maintain, and flooding; and or technically incorrect.’’. publish National Flood Insurance Program (B) facilitate identification and use of con- SEC. 120. SCIENTIFIC RESOLUTION PANEL. rate maps with respect to— sistent methods of data collection and anal- (a) ESTABLISHMENT.—Chapter III of the Na- (i) all populated areas and areas of possible ysis by the Administrator, in conjunction tional Flood Insurance Act of 1968 (42 U.S.C. population growth located within the 100- with State and local governments, in devel- 4101 et seq.) is amended by inserting after year floodplain; oping maps for communities with similar section 1363 (42 U.S.C. 4104) the following: (ii) all populated areas and areas of pos- flood risks, as determined by the Adminis- ‘‘SEC. 1363A. SCIENTIFIC RESOLUTION PANEL. sible population growth located within the trator; and ‘‘(a) AVAILABILITY.— 500-year floodplain; (2) publish maps in a format that is— ‘‘(1) IN GENERAL.—Pursuant to the author- (iii) areas of residual risk, including areas (A) digital geospatial data compliant; ity provided under section 1363(e), the Ad- that are protected by levees, dams, and other (B) compliant with the open publishing and ministrator shall make available an inde- flood control structures; data exchange standards established by the pendent review panel, to be known as the (iv) areas that could be inundated as a re- Open Geospatial Consortium; and Scientific Resolution Panel, to any commu- sult of the failure of a levee, dam, or other (C) aligned with official data defined by nity— flood control structure; and the National Geodetic Survey. ‘‘(A) that has— (v) the level of protection provided by flood (d) COMMUNICATION AND OUTREACH.— ‘‘(i) filed a timely map appeal in accord- control structures; (1) IN GENERAL.—The Administrator shall— ance with section 1363; (B) establish or update flood-risk zone data (A) work to enhance communication and ‘‘(ii) completed 60 days of consultation in all such areas, and make estimates with outreach to States, local communities, and with the Federal Emergency Management respect to the rates of probable flood caused property owners about the effects— Agency on the appeal; and loss for the various flood risk zones for each (i) of any potential changes to National ‘‘(iii) not allowed more than 120 days, or such area; and Flood Insurance Program rate maps that such longer period as may be provided by the

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Administrator by waiver, to pass since the ‘‘(B) WRITTEN JUSTIFICATION NOT TO EN- tion data and digital elevation models, in- end of the appeal period; or FORCE.—If the Administrator elects not to cluding any planned interagency or intra- ‘‘(B) that has received an unsatisfactory implement the determination of the Sci- agency transfers; and ruling under the map revision process estab- entific Resolution Panel pursuant to sub- (B) describes how the efforts aligned with lished pursuant to section 1360(f). paragraph (A), then not later than 60 days such sections complement one another. ‘‘(2) APPEALS BY OWNERS AND LESSEES.—If a after the issuance of the determination, the (b) DUTIES OF THE ADMINISTRATOR.—In car- community and an owner or lessee of real Administrator shall issue a written justifica- rying out sections 117 and 118, the Adminis- property within the community appeal a pro- tion explaining such election. trator shall— posed determination of a flood elevation ‘‘(C) APPEAL OF DETERMINATION NOT TO EN- (1) participate, pursuant to section 216 of under section 1363(b), upon the request of the FORCE.—If the Administrator elects not to the E–Government Act of 2002 (44 U.S.C. 3501 community— implement the determination of the Sci- note), in the establishment of such standards ‘‘(A) the owner or lessee shall submit scientific Resolution Panel pursuant to sub- and common protocols as are necessary to entific and technical data relating to the ap- paragraph (A), the community may appeal assure the interoperability of geospatial data peals to the Scientific Resolution Panel; and the determination of the Administrator as for all users of such information; ‘‘(B) the Scientific Resolution Panel shall provided for under section 1363(g). (2) coordinate with, seek assistance and co- make a determination with respect to the ‘‘(d) MAPS USED FOR INSURANCE AND MAN- operation of, and provide a liaison to the appeals in accordance with subsection (c). DATORY PURCHASE REQUIREMENTS.—With re- Federal Geographic Data Committee pursu- ‘‘(3) DEFINITION.—For purposes of para- spect to any community that has a dispute ant to the Office of Management and Budget graph (1)(B), an ‘unsatisfactory ruling’ that is being considered by the Scientific Circular A–16 and Executive Order 12906 (43 means that a community— Resolution Panel formed pursuant to this U.S.C. 1457 note; relating to the National ‘‘(A) received a revised Flood Insurance subsection, the Federal Emergency Manage- Spatial Data Infrastructure) for the imple- Rate Map from the Federal Emergency Man- ment Agency shall ensure that for each such mentation of and compliance with such agement Agency, via a Letter of Final Deter- community that— standards; mination, after September 30, 2008, and prior ‘‘(1) the Flood Insurance Rate Map de- (3) integrate with, leverage, and coordinate to the date of enactment of this section; scribed in the most recently issued Letter of funding of, to the maximum extent prac- ‘‘(B) has subsequently applied for a Letter Final Determination shall be in force and ef- ticable, the current flood mapping activities of Map Revision or Physical Map Revision fect with respect to such community; and of each unit of State and local government; with the Federal Emergency Management ‘‘(2) flood insurance shall continue to be (4) integrate with, leverage, and coordi- Agency; and made available to the property owners and nate, to the maximum extent practicable, ‘‘(C) has received an unfavorable ruling on residents of the participating community.’’. the current geospatial activities of other their request for a map revision. (b) CONFORMING AMENDMENTS.— Federal agencies and units of State and local ‘‘(b) MEMBERSHIP.—The Scientific Resolu- (1) ADMINISTRATIVE REVIEW.—Section government; and tion Panel made available under subsection 1363(e) of the National Flood Insurance Act (5) develop a funding strategy to leverage (a) shall consist of 5 members with expertise of 1968 (42 U.S.C. 4104(e)) is amended, in the and coordinate budgets and expenditures, that relates to the creation and study of second sentence, by striking ‘‘an inde- and to maintain or establish joint funding flood hazard maps and flood insurance. The pendent scientific body or appropriate Fed- and other agreement mechanisms with other Scientific Resolution Panel may include rep- eral agency for advice’’ and inserting ‘‘the Federal agencies and units of State and local resentatives from Federal agencies not in- Scientific Resolution Panel provided for in government to share in the collection and volved in the mapping study in question and utilization of geospatial data among all gov- from other impartial experts. Employees of section 1363A’’. the Federal Emergency Management Agency (2) JUDICIAL REVIEW.—The first sentence of ernmental users. may not serve on the Scientific Resolution section 1363(g) of the National Flood Insur- SEC. 123. INTERAGENCY COORDINATION STUDY. Panel. ance Act of 1968 (42 U.S.C. 4104(g)) is amended (a) IN GENERAL.—The Administrator shall ‘‘(c) DETERMINATION.— by striking ‘‘Any appellant’’ and inserting enter into a contract with the National ‘‘(1) IN GENERAL.—Following deliberations, ‘‘Except as provided in section 1363A, any ap- Academy of Public Administration to con- and not later than 90 days after its forma- pellant’’. duct a study on how the Federal Emergency tion, the Scientific Resolution Panel shall SEC. 121. REMOVAL OF LIMITATION ON STATE Management Agency— issue a determination of resolution of the CONTRIBUTIONS FOR UPDATING (1) should improve interagency and inter- dispute. Such determination shall set forth FLOOD MAPS. governmental coordination on flood map- recommendations for the base flood ele- Section 1360(f)(2) of the National Flood In- ping, including a funding strategy to lever- vation determination or the designation of surance Act of 1968 (42 U.S.C. 4101(f)(2)) is age and coordinate budgets and expendi- an area having special flood hazards that amended by striking ‘‘, but which may not tures; and shall be reflected in the Flood Insurance exceed 50 percent of the cost of carrying out (2) can establish joint funding mechanisms Rate Maps. the requested revision or update’’. with other Federal agencies and units of ‘‘(2) BASIS.—The determination of the Sci- SEC. 122. COORDINATION. State and local government to share the col- entific Resolution Panel shall be based on— (a) INTERAGENCY BUDGET CROSSCUT AND CO- lection and utilization of data among all ‘‘(A) data previously provided to the Ad- ORDINATION REPORT.— governmental users. ministrator by the community, and, in the (1) IN GENERAL.—The Secretary of Home- (b) TIMING.—A contract entered into under case of a dispute submitted under subsection land Security, the Administrator, the Direc- subsection (a) shall require that, not later (a)(2), an owner or lessee of real property in tor of the Office of Management and Budget, than 180 days after the date of enactment of the community; and and the heads of each Federal department or this title, the National Academy of Public ‘‘(B) data provided by the Administrator. agency carrying out activities under sections Administration shall report the findings of ‘‘(3) NO ALTERNATIVE DETERMINATIONS PER- 117 and 118 shall work together to ensure the study required under subsection (a) to— MISSIBLE.—The Scientific Resolution Panel— that flood risk determination data and (1) the Committee on Banking, Housing, ‘‘(A) shall provide a determination of reso- geospatial data are shared among Federal and Urban Affairs of the Senate; lution of a dispute that— agencies in order to coordinate the efforts of (2) the Committee on Financial Services of ‘‘(i) is either in favor of the Administrator the Nation to reduce its vulnerability to the House of Representatives; or in favor of the community on each dis- flooding hazards. (3) the Committee on Appropriations of the tinct element of the dispute; or (2) REPORT.—Not later than 30 days after Senate; and ‘‘(ii) in the case of a dispute submitted the submission of the budget of the United (4) the Committee on Appropriations of the under subsection (a)(2), is in favor of the Ad- States Government by the President to Con- House of Representatives. ministrator, in favor of the community, or in gress, the Director of the Office of Manage- SEC. 124. NONMANDATORY PARTICIPATION. favor of the owner or lessee of real property ment and Budget, in coordination with the (a) NONMANDATORY PARTICIPATION IN NA- in the community on each distinct element Federal Emergency Management Agency, TIONAL FLOOD INSURANCE PROGRAM FOR 500- of the dispute; and the United States Geological Survey, the Na- YEAR FLOODPLAIN.—Any area that is within ‘‘(B) may not offer as a resolution any tional Oceanic and Atmospheric Administra- the 500-year floodplain and is not an area other alternative determination. tion, the Corps of Engineers, and other Fed- having special flood hazards shall not be sub- ‘‘(4) EFFECT OF DETERMINATION.— eral agencies, as appropriate, shall submit to ject to the mandatory purchase require- ‘‘(A) BINDING.—The recommendations of the appropriate authorizing and appro- ments of sections 102 or 202 of the Flood Dis- the Scientific Resolution Panel shall be priating committees of the Senate and the aster Protection Act of 1973 (42 U.S.C. 4012a binding on all appellants and not subject to House of Representatives an interagency and 4106). further judicial review unless the Adminis- budget crosscut and coordination report, cer- (b) NOTICE.— trator determines that implementing the de- tified by the Secretary or head of each such (1) BY ADMINISTRATOR.—In carrying out the termination of the panel would— agency, that— National Flood Insurance Program, the Ad- ‘‘(i) pose a significant threat due to failure (A) contains an interagency budget cross- ministrator shall provide notice to any com- to identify a substantial risk of special flood cut report that displays relevant sections of munity located in an area that is within the hazards; or the budget proposed for each of the Federal 500-year floodplain and is not an area having ‘‘(ii) violate applicable law. agencies working on flood risk determina- special flood hazards.

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(2) TIMING OF NOTICE.—The notice required National Flood Insurance Program, whether ‘‘(f) LIABILITY, RIGHTS, OR OBLIGATIONS NOT under paragraph (1) shall be made not later or not the real estate is located in an area AFFECTED.—Participation in State-sponsored than 6 months after the date of completion having special flood hazards.’’. mediation, as described in this section does of the initial mapping of the 500-year flood- SEC. 126. PARTICIPATION IN STATE DISASTER not— plain, as required under section 118. CLAIMS MEDIATION PROGRAMS. ‘‘(1) affect or expand the liability of any (3) LENDER REQUIRED NOTICE.— Chapter I of the National Flood Insurance party in contract or in tort; or (A) REGULATED LENDING INSTITUTIONS.— Act of 1968 (42 U.S.C. 4011 et seq.) is amended ‘‘(2) affect the rights or obligations of the (i) FEDERAL LENDING INSTITUTIONS.—Each by inserting after section 1313 (42 U.S.C. 4020) parties, as established— Federal entity for lending regulation (after the following: ‘‘(A) in any regulation issued by the Ad- consultation and coordination with the Fed- ‘‘SEC. 1314. PARTICIPATION IN STATE DISASTER ministrator, including any regulation relat- eral Financial Institutions Examination CLAIMS MEDIATION PROGRAMS. ing to a standard flood insurance policy; Council) shall, by regulation, require regu- ‘‘(a) REQUIREMENT TO PARTICIPATE.—In the ‘‘(B) under this title; and lated lending institutions, as a condition of case of the occurrence of a major disaster, as ‘‘(C) under any other provision of Federal making, increasing, extending, or renewing defined in section 102 of the Robert T. Staf- law. any loan secured by property located in an ford Disaster Relief and Emergency Assist- ‘‘(g) EXCLUSIVE FEDERAL JURISDICTION.— area that is within the 500-year floodplain ance Act (42 U.S.C. 5122), that may have re- Participation in State-sponsored mediation and is not an area having special flood haz- sulted in flood damage covered under the na- shall not alter, change, or modify the origi- ards, to notify the purchaser or lessee (or ob- tional flood insurance program established nal exclusive jurisdiction of United States tain satisfactory assurances that the seller under this title and other personal lines resi- courts, as set forth in this title. or lessor has notified the purchaser or lessee) dential property insurance coverage offered ‘‘(h) COST LIMITATION.—Nothing in this sec- and the servicer of the loan that such prop- by a State regulated insurer, upon a request tion shall be construed to require the Admin- erty is located in an area that is within the made by the insurance commissioner of a istrator or a representative of the Adminis- 500-year floodplain, in a manner that is con- State (or such other official responsible for trator to pay additional mediation fees relat- sistent with, and substantially identical to, regulating the business of insurance in the ing to flood insurance claims associated with the notice required under section 1364(a)(1) of State) for the participation of representa- a State-sponsored mediation program in the National Flood Insurance Act of 1968 (42 tives of the Administrator in a program which such representative of the Adminis- U.S.C. 4104a(a)(1)). sponsored by such State for nonbinding me- trator participates. (ii) STATE LENDING INSTITUTIONS.—In order diation of insurance claims resulting from a ‘‘(i) EXCEPTION.—In the case of the occur- to continue to participate in the flood insur- major disaster, the Administrator shall rence of a major disaster that results in ance program, each State shall direct that cause representatives of the national flood flood damage claims under the national flood its State entity for lending regulation reinsurance program to participate in such a insurance program and that does not result quire State lending institutions (as such State program where claims under the na- in any loss covered by a personal lines residential property insurance policy— terms are defined in section 3 of the Flood tional flood insurance program are involved ‘‘(1) this section shall not apply; and Disaster Protection Act of 1973 (42 U.S.C. to expedite settlement of flood damage ‘‘(2) the provisions of the standard flood in- 4003)), as a condition of making, increasing, claims resulting from such disaster. extending, or renewing any loan secured by ‘‘(b) EXTENT OF PARTICIPATION.—In satis- surance policy under the national flood in- property located in an area that is within fying the requirements of subsection (a), the surance program and the appeals process es- the 500-year floodplain and is not an area Administrator shall require that each rep- tablished under section 205 of the Bunning- having special flood hazards, to notify the resentative of the Administrator— Bereuter-Blumenauer Flood Insurance Re- purchaser or lessee (or obtain satisfactory ‘‘(1) be certified for purposes of the na- form Act of 2004 (42 U.S.C. 4011 note) and the assurances that the seller or lessor has noti- tional flood insurance program to settle regulations issued pursuant to such section fied the purchaser or lessee) and the servicer claims against such program resulting from shall apply exclusively. ‘‘(j) REPRESENTATIVES OF THE ADMINIS- of the loan that such property is located in such disaster in amounts up to the limits of TRATOR.—For purposes of this section, the an area that is within the 500-year flood- policies under such program; term ‘representatives of the Administrator’ plain, in a manner that is consistent with, ‘‘(2) attend State-sponsored mediation means representatives of the national flood and substantially identical to, the notice re- meetings regarding flood insurance claims insurance program who participate in the ap- quired under section 1364(a)(1) of the Na- resulting from such disaster at such times peals process established under section 205 of tional Flood Insurance Act of 1968 (42 U.S.C. and places as may be arranged by the State; the Bunning-Bereuter-Blumenauer Flood In- 4104a(a)(1)). ‘‘(3) participate in good-faith negotiations surance Reform Act of 2004 (42 U.S.C. 4011 (B) FEDERAL AND STATE AGENCY LENDERS.— toward the settlement of such claims with note).’’. (i) FEDERAL AGENCY LENDERS.—Each Fed- policyholders of coverage made available SEC. 127. ADDITIONAL AUTHORITY OF FEMA TO eral agency lender shall, by regulation, re- under the national flood insurance program; COLLECT INFORMATION ON CLAIMS quire notification in the same manner as and PAYMENTS. provided under subparagraph (A) with re- ‘‘(4) finalize the settlement of such claims (a) IN GENERAL.—The Administrator shall spect to any loan that is made by a Federal on behalf of the national flood insurance pro- collect, from property and casualty insur- agency lender and secured by property lo- gram with such policyholders. ance companies that are authorized by the cated in an area that is within the 500-year ‘‘(c) COORDINATION.—Representatives of the Administrator to participate in the Write floodplain and is not an area having special Administrator shall at all times coordinate Your Own program, any information and flood hazards. their activities with insurance officials of data needed to determine the accuracy of the (ii) STATE AGENCY LENDERS.—In order to the State and representatives of insurers for resolution of flood claims filed on any prop- continue to participate in the flood insur- the purposes of consolidating and expediting erty insured with a standard flood insurance ance program, each State shall require any settlement of claims under the national policy obtained under the program that was State agency lender to provide notification flood insurance program resulting from such subject to a flood. in the same manner as provided under sub- disaster. (b) TYPE OF INFORMATION TO BE COL- paragraph (A) with respect to any loan that ‘‘(d) QUALIFICATIONS OF MEDIATORS.—Each LECTED.—The information and data to be col- is made by the State agency lender and se- State mediator participating in State-spon- lected under subsection (a) may include— cured by property located in an area that is sored mediation under this section shall be— (1) any adjuster estimates made as a result within the 500-year floodplain and is not an ‘‘(1)(A) a member in good standing of the of flood damage, and if the insurance com- area having special flood hazards. State bar in the State in which the medi- pany also insures the property for wind dam- (C) PENALTY FOR NONCOMPLIANCE.—Any ation is to occur with at least 2 years of age— regulated lending institution or Federal or practical experience; and (A) any adjuster estimates for both wind State agency lender that fails to comply ‘‘(B) an active member of such bar for at and flood damage; with the notice requirements established by least 1 year prior to the year in which such (B) the amount paid to the property owner this paragraph shall be subject to the pen- mediator’s participation is sought; or for wind and flood claims; and alties prescribed under section 102(f)(5) of the ‘‘(2) a retired trial judge from any United (C) the total amount paid to the policy- Flood Disaster Protection Act of 1973 (42 States jurisdiction who was a member in holder for damages as a result of the event U.S.C. 4012a(f)(5)). good standing of the bar in the State in that caused the flooding and other losses; SEC. 125. NOTICE OF FLOOD INSURANCE AVAIL- which the judge presided for at least 5 years (2) any amounts paid to the policyholder ABILITY UNDER RESPA. prior to the year in which such mediator’s by the insurance company for damages to Section 5(b) of the Real Estate Settlement participation is sought. the insured property other than flood dam- Procedures Act of 1974 (12 U.S.C. 2604(b)), as ‘‘(e) MEDIATION PROCEEDINGS AND DOCU- ages; and amended by section 1450 of the Dodd-Frank MENTS PRIVILEGED.—As a condition of par- (3) the total amount paid to the policy- Wall Street Reform and Consumer Protec- ticipation, all statements made and docu- holder by the insurance company for all tion Act (Public Law 111–203; 124 Stat. 2174), ments produced pursuant to State-sponsored damages incurred to the insured property as is amended by adding at the end the fol- mediation involving representatives of the a result of the flood. lowing: Administrator shall be deemed privileged SEC. 128. OVERSIGHT AND EXPENSE REIMBURSE- ‘‘(14) An explanation of flood insurance and and confidential settlement negotiations MENTS OF INSURANCE COMPANIES. the availability of flood insurance under the made in anticipation of litigation. (a) SUBMISSION OF BIENNIAL REPORTS.—

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(1) TO THE ADMINISTRATOR.—Not later than (e) REPORT OF THE ADMINISTRATOR.—Not nity in which such a structure is located has 20 days after the date of enactment of this later than 60 days after the effective date of the capacity to manage such grants.’’; Act, each property and casualty insurance the final rule issued pursuant to subsection (4) in subsection (b), as so redesignated, in company participating in the Write Your (d), the Administrator shall submit to the the first sentence— Own program shall submit to the Adminis- Committee on Banking, Housing, and Urban (A) by striking ‘‘and provides protection trator any biennial report required by the Affairs of the Senate and the Committee on against’’ and inserting ‘‘provides for reduc- Federal Emergency Management Agency to Financial Services of the House of Rep- tion of’’; and be prepared in the prior 5 years by such com- resentatives a report containing— (B) by inserting before the period at the pany. (1) the specific rationale and purposes of end the following: ‘‘, and may be included in (2) TO GAO.—Not later than 10 days after such rule; a multihazard mitigation plan’’; the submission of the biennial reports under (2) the reasons for the adoption of the poli- (5) in subsection (c), as so redesignated— paragraph (1), the Administrator shall sub- cies contained in such rule; and (A) in paragraph (1), by striking ‘‘(1) USE mit all such reports to the Comptroller Gen- (3) the degree to which such rule accu- OF AMOUNTS.—’’ and all that follows through eral of the United States. rately represents the true operating costs the end of the first sentence and inserting (3) NOTICE TO CONGRESS OF FAILURE TO COM- and expenses of property and casualty insur- the following: PLY.—The Administrator shall notify and re- ance companies participating in the Write ‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP- port to the Committee on Banking, Housing, Your Own program. PROVED MITIGATION PLAN.—Amounts provided and Urban Affairs of the Senate and the (f) GAO STUDY AND REPORT ON EXPENSES OF under this section may be used only for miti- Committee on Financial Services of the WRITE YOUR OWN PROGRAM.— gation activities that are consistent with House of Representatives on any property (1) STUDY.—Not later than 180 days after mitigation plans that are approved by the and casualty insurance company partici- the effective date of the final rule issued pur- Administrator and identified under para- pating in the Write Your Own program that suant to subsection (d), the Comptroller Gen- graph (4).’’; failed to submit its biennial reports as re- eral of the United States shall— (B) by striking paragraphs (2), (3), and (4) quired under paragraph (1). (A) conduct a study on the efficacy, ade- and inserting the following new paragraphs: (4) FAILURE TO COMPLY.—A property and quacy, and sufficiency of the final rules ‘‘(2) REQUIREMENTS OF TECHNICAL FEASI- casualty insurance company participating in issued pursuant to subsection (d); and BILITY, COST EFFECTIVENESS, AND INTEREST OF the Write Your Own program which fails to (B) report to the Committee on Banking, NFIF.—The Administrator may approve only comply with the reporting requirement Housing, and Urban Affairs of the Senate and mitigation activities that the Administrator under this subsection or the requirement the Committee on Financial Services of the determines are technically feasible and cost under section 62.23(j)(1) of title 44, Code of House of Representatives on the findings of effective and in the interest of, and represent Federal Regulations (relating to biennial the study conducted under subparagraph (A). savings to, the National Flood Insurance audit of the flood insurance financial state- Fund. In making such determinations, the (2) GAO AUTHORITY.—In conducting the ments) shall be subject to a civil penalty in study and report required under paragraph Administrator shall take into consideration an amount equal to $1,000 per day for each (1), the Comptroller General— recognized ancillary benefits. day that the company remains in noncompli- (A) may use any previous findings, studies, ‘‘(3) PRIORITY FOR MITIGATION ASSISTANCE.— In providing grants under this section for ance with either such requirement. or reports that the Comptroller General pre- (b) METHODOLOGY TO DETERMINE REIM- mitigation activities, the Administrator viously completed on the Write Your Own BURSED EXPENSES.—Not later than 180 days shall give priority for funding to activities program; after the date of enactment of this Act, the that the Administrator determines will re- (B) shall determine if— Administrator shall develop a methodology sult in the greatest savings to the National (i) the final rule issued pursuant to sub- for determining the appropriate amounts Flood Insurance Fund, including activities section (d) allows the Federal Emergency that property and casualty insurance compa- for— Management Agency to access adequate in- nies participating in the Write Your Own ‘‘(A) severe repetitive loss structures; formation regarding the actual expenses of program should be reimbursed for selling, ‘‘(B) repetitive loss structures; and property and casualty insurance companies writing, and servicing flood insurance poli- ‘‘(C) other subsets of structures as the Ad- cies and adjusting flood insurance claims on participating in the Write Your Own pro- ministrator may establish.’’; behalf of the National Flood Insurance Pro- gram; and (C) by redesignating paragraph (5) as para- gram. The methodology shall be developed (ii) the actual reimbursements paid out graph (4); using actual expense data for the flood insur- under the final rule issued pursuant to sub- (D) in paragraph (4), as so redesignated— ance line and can be derived from— section (d) accurately reflect the expenses (i) in the matter preceding subparagraph (1) flood insurance expense data produced reported by property and casualty insurance (A), by striking ‘‘The Director’’ and all that by the property and casualty insurance com- companies participating in the Write Your follows through ‘‘Such activities may’’ and panies; Own program, including the standard busi- inserting ‘‘Eligible activities under a mitiga- (2) flood insurance expense data collected ness costs and operating expenses of such tion plan may’’; by the National Association of Insurance companies; and (ii) by striking subparagraphs (E) and (H); Commissioners; or (C) shall analyze the effect of the final rule (iii) by redesignating subparagraphs (D), (3) a combination of the methodologies de- issued pursuant to subsection (d) on the level (F), and (G) as subparagraphs (E), (G), and scribed in paragraphs (1) and (2). of participation of property and casualty in- (H), respectively; (c) SUBMISSION OF EXPENSE REPORTS.—To surers in the Write Your Own program. (iv) by inserting after subparagraph (C) the develop the methodology established under SEC. 129. MITIGATION. following new subparagraph: subsection (b), the Administrator may re- (a) MITIGATION ASSISTANCE GRANTS.—Sec- ‘‘(D) elevation, relocation, or floodproofing quire each property and casualty insurance tion 1366 of the National Flood Insurance Act of utilities (including equipment that serves company participating in the Write Your of 1968 (42 U.S.C. 4104c) is amended— structures);’’; Own program to submit a report to the Ad- (1) by striking subsections (b), (d), (f), (g), (v) by inserting after subparagraph (E), as ministrator, in a format determined by the (h), (k), and (m); so redesignated, the following new subpara- Administrator and within 60 days of the re- (2) by redesignating subsections (c), (e), (i), graph: quest, that details the expense levels of each and (j) as subsections (b), (c), (e), and (f), re- ‘‘(F) the development or update of mitiga- such company for selling, writing, and serv- spectively; tion plans by a State or community which icing standard flood insurance policies and (3) in subsection (a), by striking the last meet the planning criteria established by the adjusting and servicing claims. sentence and inserting the following: ‘‘Such Administrator, except that the amount from (d) FEMA RULEMAKING ON REIMBURSEMENT financial assistance shall be made avail- grants under this section that may be used OF EXPENSES UNDER THE WRITE YOUR OWN able— under this subparagraph may not exceed PROGRAM.—Not later than 12 months after the date of enactment of this Act, the Ad- ‘‘(1) to States and communities in the form $50,000 for any mitigation plan of a State or ministrator shall issue a rule to formulate of grants under this section for carrying out $25,000 for any mitigation plan of a commu- revised expense reimbursements to property mitigation activities; nity;’’; and casualty insurance companies partici- ‘‘(2) to States and communities in the form (vi) in subparagraph (H); as so redesig- pating in the Write Your Own program for of grants under this section for carrying out nated, by striking ‘‘and’’ at the end; and their expenses (including their operating and mitigation activities that reduce flood dam- (vii) by adding at the end the following administrative expenses for adjustment of age to severe repetitive loss structures; and new subparagraphs: claims) in selling, writing, and servicing ‘‘(3) to property owners in the form of di- ‘‘(I) other mitigation activities not de- standard flood insurance policies, including rect grants under this section for carrying scribed in subparagraphs (A) through (G) or how such companies shall be reimbursed in out mitigation activities that reduce flood the regulations issued under subparagraph both catastrophic and noncatastrophic damage to individual structures for which 2 (H), that are described in the mitigation plan years. Such reimbursements shall be struc- or more claim payments for losses have been of a State or community; and tured to ensure reimbursements track the made under flood insurance coverage under ‘‘(J) without regard to the requirements actual expenses, including standard business this title if the Administrator, after con- under paragraphs (1) and (2) of subsection (d), costs and operating expenses, of such compa- sultation with the State and community, de- and if the State applied for and was awarded nies as closely as practicably possible. termines that neither the State nor commu- at least $1,000,000 in grants available under

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Levee Safety’’ means the Committee on paragraph: (b) ELIMINATION OF GRANTS PROGRAM FOR Levee Safety established under section 9003 ‘‘(5) ELIGIBILITY OF DEMOLITION AND RE- REPETITIVE INSURANCE CLAIMS PROPERTIES.— of the National Levee Safety Act of 2007 (33 BUILDING OF PROPERTIES.—The Administrator Chapter I of the National Flood Insurance U.S.C. 3302); and shall consider as an eligible activity the Act of 1968 is amended by striking section (3) the term ‘‘task force’’ means the Flood demolition and rebuilding of properties to at 1323 (42 U.S.C. 4030). Protection Structure Accreditation Task least base flood elevation or greater, if re- (c) ELIMINATION OF PILOT PROGRAM FOR Force established under subsection (b). quired by the Administrator or if required by MITIGATION OF SEVERE REPETITIVE LOSS (b) ESTABLISHMENT.— any State regulation or local ordinance, and PROPERTIES.—Chapter III of the National (1) IN GENERAL.—The Administrator and in accordance with criteria established by Flood Insurance Act of 1968 is amended by the Secretary of the Army, acting through the Administrator.’’; and striking section 1361A (42 U.S.C. 4102a). the Chief of Engineers, in cooperation with (6) by inserting after subsection (c), as so (d) NATIONAL FLOOD INSURANCE FUND.— the National Committee on Levee Safety, redesignated, the following new subsection: Section 1310(a) of the National Flood Insur- shall jointly establish a Flood Protection ‘‘(d) MATCHING REQUIREMENT.—The Admin- ance Act of 1968 (42 U.S.C. 4017(a)) is amend- Structure Accreditation Task Force. istrator may provide grants for eligible miti- ed— (2) DUTIES.— gation activities as follows: (1) in paragraph (6), by inserting ‘‘and’’ (A) DEVELOPING PROCESS.—The task force ‘‘(1) SEVERE REPETITIVE LOSS STRUC- after the semicolon; shall develop a process to better align the in- TURES.—In the case of mitigation activities (2) in paragraph (7), by striking the semi- formation and data collected by or for the to severe repetitive loss structures, in an colon and inserting a period; and Corps of Engineers under the Inspection of amount up to 100 percent of all eligible costs. (3) by striking paragraphs (8) and (9). Completed Works Program with the flood ‘‘(2) REPETITIVE LOSS STRUCTURES.—In the (e) NATIONAL FLOOD MITIGATION FUND.— protection structure accreditation require- case of mitigation activities to repetitive Section 1367 of the National Flood Insurance ments so that— loss structures, in an amount up to 90 per- Act of 1968 (42 U.S.C. 4104d) is amended— (i) information and data collected for ei- cent of all eligible costs. (1) in subsection (b)— ther purpose can be used interchangeably; ‘‘(3) OTHER MITIGATION ACTIVITIES.—In the (A) by striking paragraph (1) and inserting and case of all other mitigation activities, in an the following new paragraph: (ii) information and data collected by or amount up to 75 percent of all eligible ‘‘(1) in each fiscal year, amounts from the for the Corps of Engineers under the Inspec- costs.’’; National Flood Insurance Fund not to exceed tion of Completed Works Program is suffi- (7) in subsection (e)(2), as so redesignated— $90,000,000 and to remain available until ex- cient to satisfy the flood protection struc- (A) by striking ‘‘certified under subsection pended, of which— ture accreditation requirements. (g)’’ and inserting ‘‘required under sub- ‘‘(A) not more than $40,000,000 shall be (B) GATHERING RECOMMENDATIONS.—The section (d)’’; and available pursuant to subsection (a) of this task force shall gather, and consider in the (B) by striking ‘‘3 times the amount’’ and section for assistance described in section process developed under subparagraph (A), inserting ‘‘the amount’’; 1366(a)(1); recommendations from interested persons in (8) in subsection (f), as so redesignated, by ‘‘(B) not more than $40,000,000 shall be each region relating to the information, striking ‘‘Riegle Community Development available pursuant to subsection (a) of this data, and accreditation requirements de- and Regulatory Improvement Act of 1994’’ section for assistance described in section scribed in subparagraph (A). and inserting ‘‘Flood Insurance Reform and 1366(a)(2); and (3) CONSIDERATIONS.—In developing the Modernization Act of 2012’’; and ‘‘(C) not more than $10,000,000 shall be process under paragraph (2), the task force (9) by adding at the end the following new available pursuant to subsection (a) of this shall consider changes to— subsections: section for assistance described in section (A) the information and data collected by ‘‘(g) FAILURE TO MAKE GRANT AWARD WITH- 1366(a)(3);’’; and or for the Corps of Engineers under the In- IN 5 YEARS.—For any application for a grant (B) in paragraph (3), by striking ‘‘section spection of Completed Works Program; and under this section for which the Adminis- 1366(i)’’ and inserting ‘‘section 1366(e)’’; (B) the flood protection structure accredi- trator fails to make a grant award within 5 (2) in subsection (c), by striking ‘‘sections tation requirements. years of the date of the application, the 1366 and 1323’’ and inserting ‘‘section 1366’’; (4) RULE OF CONSTRUCTION.—Nothing in this grant application shall be considered to be (3) by redesignating subsections (d) and (e) section shall be construed to require a reduc- denied and any funding amounts allocated as subsections (f) and (g), respectively; and tion in the level of public safety and flood for such grant applications shall remain in (4) by inserting after subsection (c) the fol- control provided by accredited levees, as de- the National Flood Mitigation Fund under lowing new subsections: termined by the Administrator for purposes section 1367 of this title and shall be made ‘‘(d) PROHIBITION ON OFFSETTING COLLEC- of this section. available for grants under this section. TIONS.—Notwithstanding any other provision (c) IMPLEMENTATION.—The Administrator ‘‘(h) DEFINITIONS.—For purposes of this sec- of this title, amounts made available pursu- and the Secretary of the Army, acting tion, the following definitions shall apply: ant to this section shall not be subject to off- through the Chief of Engineers, shall imple- ‘‘(1) COMMUNITY.—The term ‘community’ setting collections through premium rates ment the process developed by the task force means— for flood insurance coverage under this title. under subsection (b). ‘‘(A) a political subdivision that— ‘‘(e) CONTINUED AVAILABILITY AND RE- (d) REPORTS.—The Administrator and the ‘‘(i) has zoning and building code jurisdic- ALLOCATION.—Any amounts made available Secretary of the Army, acting through the tion over a particular area having special pursuant to subparagraph (A), (B), or (C) of Chief of Engineers, in cooperation with the flood hazards; and subsection (b)(1) that are not used in any fis- National Committee on Levee Safety, shall ‘‘(ii) is participating in the national flood cal year shall continue to be available for jointly submit to the Committee on Bank- insurance program; or the purposes specified in the subparagraph of ing, Housing, and Urban Affairs and the ‘‘(B) a political subdivision of a State, or subsection (b)(1) pursuant to which such Committee on Environment and Public other authority, that is designated by polit- amounts were made available, unless the Ad- Works of the Senate and the Committee on ical subdivisions, all of which meet the re- ministrator determines that reallocation of Financial Services, the Committee on Trans- quirements of subparagraph (A), to admin- such unused amounts to meet demonstrated portation and Infrastructure, and the Com- ister grants for mitigation activities for such need for other mitigation activities under mittee on Natural Resources of the House of political subdivisions. section 1366 is in the best interest of the Na- Representatives reports concerning the ac- ‘‘(2) REPETITIVE LOSS STRUCTURE.—The tional Flood Insurance Fund.’’. tivities of the task force and the implemen- term ‘repetitive loss structure’ has the (f) INCREASED COST OF COMPLIANCE COV- tation of the process developed by the task meaning given such term in section 1370. ERAGE.—Section 1304(b)(4) of the National force under subsection (b), including— ‘‘(3) SEVERE REPETITIVE LOSS STRUCTURE.— Flood Insurance Act of 1968 (42 U.S.C. (1) an interim report, not later than 180 The term ‘severe repetitive loss structure’ 4011(b)(4)) is amended— days after the date of enactment of this Act; means a structure that— (1) by striking subparagraph (B); and and ‘‘(A) is covered under a contract for flood (2) by redesignating subparagraphs (C), (D), (2) a final report, not later than 1 year insurance made available under this title; and (E) as subparagraphs (B), (C), and (D), re- after the date of enactment of this Act. and spectively. (e) TERMINATION.—The task force shall ter- ‘‘(B) has incurred flood-related damage— SEC. 130. FLOOD PROTECTION STRUCTURE AC- minate on the date of submission of the re- ‘‘(i) for which 4 or more separate claims CREDITATION TASK FORCE. port under subsection (d)(2). payments have been made under flood insur- (a) DEFINITIONS.—In this section— SEC. 131. FLOOD IN PROGRESS DETERMINA- ance coverage under this title, with the (1) the term ‘‘flood protection structure ac- TIONS. amount of each such claim exceeding $5,000, creditation requirements’’ means the re- (a) REPORT.—

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(1) REVIEW.—The Administrator shall re- (B) by striking ‘‘shall be made available to (i) calculate the difference between the review— every insured upon renewal and every appli- duced risk premium rate and the risk pre- (A) the processes and procedures for deter- cant for insurance, in respect to any single mium rate paid by a policyholder with re- mining that a flood event has commenced or structure, up to a total amount (including spect to the property during the period— is in progress for purposes of flood insurance such limit specified in subparagraph (B) or (I) beginning on the date on which the Na- coverage made available under the National (C) of paragraph (1), as applicable) of $500,000 tional Flood Insurance Program rate map in Flood Insurance Program; for each structure and $500,000 for any con- effect for the area on the date of enactment (B) the processes and procedures for pro- tents related to each structure’’ and insert- of this Act took effect; and viding public notification that such a flood ing ‘‘shall be made available with respect to (II) ending on the date on which the re- event has commenced or is in progress; any single such building, up to an aggregate vised or updated National Flood Insurance (C) the processes and procedures regarding liability (including such limits specified in Program rate map takes effect; and the timing of public notification of flood in- subparagraph (B) or (C) of paragraph (1), as (ii) reimburse the policyholder an amount surance requirements and availability; and applicable) of $500,000, and coverage shall be equal to such difference. (D) the effects and implications that made available up to a total of $500,000 ag- (B) FUNDING.—Notwithstanding section weather conditions, including rainfall, snow- gregate liability for contents owned by the 1310 of the National Flood Insurance Act of fall, projected snowmelt, existing water lev- building owner and $500,000 aggregate liabil- 1968 (42 U.S.C. 4017), there shall be available els, and other conditions, have on the deter- ity for each unit within the building for con- to the Administrator from premiums depos- mination that a flood event has commenced tents owned by the tenant’’. ited in the National Flood Insurance Fund or is in progress. SEC. 133. LOCAL DATA REQUIREMENT. pursuant to subsection (d) of such section (2) REPORT.—Not later than 6 months after (a) IN GENERAL.—Notwithstanding any 1310, of amounts not otherwise obligated, the the date of enactment of this Act, the Ad- other provision of this title, no area or com- amount necessary to carry out this para- ministrator shall submit a report to Con- munity participating in the National Flood graph. gress that describes— Insurance Program that is or includes a com- (c) TERMINATION.— (A) the results and conclusions of the re- munity that is identified by the Adminis- (1) IN GENERAL.—Except as provided in view under paragraph (1); and trator as Community Identification Number paragraph (2), this section shall cease to (B) any actions taken, or proposed actions 360467 and impacted by the Jamaica Bay have effect on the effective date of a Na- to be taken, by the Administrator to provide flooding source or identified by the Adminis- tional Flood Insurance Program rate map re- for more precise and technical processes and trator as Community Identification Number vised and updated under subsection (b)(1). procedures for determining that a flood 360495 may be or become designated as an (2) REIMBURSEMENTS.—Subsection (b)(4) event has commenced or is in progress. area having special flood hazards for pur- shall cease to have effect on the date on (b) EFFECTIVE DATE OF POLICIES COVERING poses of the National Flood Insurance Pro- which the Administrator has made all reim- PROPERTIES AFFECTED BY FLOODING OF THE gram, unless the designation is made on the bursements required under subsection (b)(4). MISSOURI RIVER IN 2011.— basis of— SEC. 134. ELIGIBILITY FOR FLOOD INSURANCE LIGIBLE COVERAGE (1) E .—For purposes of (1) flood hazard analyses of hydrologic, hy- FOR PERSONS RESIDING IN COMMU- this subsection, the term ‘‘eligible coverage’’ draulic, or coastal flood hazards that have NITIES THAT HAVE MADE ADEQUATE means coverage under a new contract for been properly calibrated and validated, and PROGRESS ON THE CONSTRUCTION, flood insurance coverage under the National are specific and directly relevant to the geo- RECONSTRUCTION, OR IMPROVE- Flood Insurance Program, or a modification graphic area being studied; and MENT OF A FLOOD PROTECTION to coverage under an existing flood insur- (2) ground elevation information of suffi- SYSTEM. ance contract, for property damaged by the cient accuracy and precision to meet the (a) ELIGIBILITY FOR FLOOD INSURANCE COV- flooding of the Missouri River that com- guidelines of the Administration for accu- ERAGE.— menced on June 1, 2011, that was purchased racy at the 95 percent confidence level. (1) IN GENERAL.—Notwithstanding any or made during the period beginning May 1, (b) REMAPPING.— other provision of law (including section 2011, and ending June 6, 2011. (1) REMAPPING REQUIRED.—If the Adminis- 1307(e) of the National Flood Insurance Act (2) EFFECTIVE DATES.—Notwithstanding trator determines that an area described in of 1968 (42 U.S.C. 4014(e))), a person residing section 1306(c) of the National Flood Insur- subsection (a) has been designated as an area in a community that the Administrator de- ance Act of 1968 (42 U.S.C. 4013(c)), or any of special flood hazard on the basis of infor- termines has made adequate progress on the other provision of law, any eligible coverage mation that does not comply with the re- reconstruction or improvement of a flood shall— quirements under subsection (a), the Admin- protection system that will afford flood pro- (A) be deemed to take effect on the date istrator shall revise and update any National tection for a 100-year floodplain (without re- that is 30 days after the date on which all ob- Flood Insurance Program rate map for the gard to the level of Federal funding of or par- ligations for the eligible coverage (including area— ticipation in the construction, reconstruc- completion of the application and payment (A) using information that complies with tion, or improvement), shall be eligible for of any initial premiums owed) are satisfac- the requirements under subsection (a); and flood insurance coverage under the National torily completed; and (B) in accordance with the procedures es- Flood Insurance Program— (B) cover damage to property occurring tablished under section 1363 of the National (A) if the person resides in a community after the effective date described in subpara- Flood Insurance Act of 1968 (42 U.S.C. 4104) that is a participant in the National Flood graph (A) that resulted from the flooding of for flood elevation determinations. Insurance Program; and the Missouri River that commenced on June (2) INTERIM PERIOD.—A National Flood In- (B) at a risk premium rate that does not 1, 2011, if the property did not suffer damage surance Program rate map in effect on the exceed the risk premium rate that would be or loss as a result of such flooding before the date of enactment of this Act for an area for chargeable if the flood protection system effective date described in subparagraph (A). which the Administrator has made a deter- had been completed. SEC. 132. CLARIFICATION OF RESIDENTIAL AND mination under paragraph (1) shall continue (2) ADEQUATE PROGRESS.— COMMERCIAL COVERAGE LIMITS. in effect with respect to the area during the (A) RECONSTRUCTION OR IMPROVEMENT.—For Section 1306(b) of the National Flood Insur- period— purposes of paragraph (1), the Administrator ance Act of 1968 (42 U.S.C. 4013(b)) is amend- (A) beginning on the date of enactment of shall determine that a community has made ed— this Act; and adequate progress on the reconstruction or (1) in paragraph (2)— (B) ending on the date on which the Ad- improvement of a flood protection system (A) by striking ‘‘in the case of any residen- ministrator determines that the require- if— tial property’’ and inserting ‘‘in the case of ments under section 1363 of the National (i) 100 percent of the project cost has been any residential building designed for the oc- Flood Insurance Act of 1968 (42 U.S.C. 4104) authorized; cupancy of from 1 to 4 families’’; and for flood elevation determinations have been (ii) not less than 60 percent of the project (B) by striking ‘‘shall be made available to met with respect to a revision and update cost has been secured or appropriated; every insured upon renewal and every appli- under paragraph (1) of a National Flood In- (iii) not less than 50 percent of the flood cant for insurance so as to enable such insurance Program rate map for the area. protection system has been assessed as being sured or applicant to receive coverage up to (3) DEADLINE.—The Administrator shall without deficiencies; and a total amount (including such limits speci- issue a preliminary National Flood Insur- (iv) the reconstruction or improvement has fied in paragraph (1)(A)(i)) of $250,000’’ and ance Program rate map resulting from a re- a project schedule that does not exceed 5 inserting ‘‘shall be made available, with revision and update required under paragraph years, beginning on the date on which the respect to any single such building, up to an (1) not later than 1 year after the date of en- construction or construction of the improve- aggregate liability (including such limits actment of this Act. ment commences. specified in paragraph (1)(A)(i)) of $250,000’’; (4) RISK PREMIUM RATE CLARIFICATION.— (B) CONSIDERATIONS.—In determining and (A) IN GENERAL.—If a revision and update whether a flood protection system has been (2) in paragraph (4)— required under paragraph (1) results in a re- assessed as being without deficiencies, the (A) by striking ‘‘in the case of any nonresi- duction in the risk premium rate for a prop- Administrator shall consider the require- dential property, including churches,’’ and erty in an area for which the Administrator ments under section 65.10 of chapter 44, Code inserting ‘‘in the case of any nonresidential has made a determination under paragraph of Federal Regulations, or any successor building, including a church,’’; and (1), the Administrator shall— thereto.

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(b) TERMINATION OF ELIGIBILITY.— (1) the number of flood insurance policy total cost expended to purchase such prop- (1) ADEQUATE CONTINUING PROGRESS.—The holders currently insuring— erties; Administrator shall issue rules to establish a (A) a residential structure up to the max- (F) the estimate of the Administrator as to method of determining whether a commu- imum available coverage amount, as estab- the average historical loss year, and the nity has made adequate continuing progress lished in section 61.6 of title 44, Code of Fed- basis for that estimate; on the reconstruction or improvement of a eral Regulations, of— (G) the estimate of the Administrator as to flood protection system that includes— (i) $250,000 for the structure; and the maximum amount of claims that the Na- (A) a requirement that the Administrator (ii) $100,000 for the contents of such struc- tional Flood Insurance Program would have shall— ture; or to expend in the event of a catastrophic (i) consult with the owner of the flood pro- (B) a commercial structure up to the max- year; tection system— imum available coverage amount, as estab- (H) the average— (I) 6 months after the date of a determina- lished in section 61.6 of title 44, Code of Fed- (i) amount of insurance carried per flood tion under subsection (a); eral Regulations, of $500,000; insurance policy; (II) 18 months after the date of a deter- (2) the increased losses the National Flood (ii) premium per flood insurance policy; mination under subsection (a); and Insurance Program would have sustained and (III) 36 months after the date of a deter- during the 2004 and 2005 hurricane season if (iii) loss per flood insurance policy; and mination under subsection (a); and the National Flood Insurance Program had (I) the number of claims involving damages (ii) after each consultation under clause insured all policyholders up to the maximum in excess of the maximum amount of flood (i), determine whether the reconstruction or conforming loan limit for fiscal year 2006 of insurance available under the National Flood improvement is reasonably likely to be com- $417,000, as established under section 302(b)(2) Insurance Program and the sum of the pleted in accordance with the project sched- of the Federal National Mortgage Associa- amount of all damages in excess of such ule described in subsection (a)(2)(A)(iv); and tion Charter Act (12 U.S.C. 1717(b)(2)); amount. (B) a requirement that, if the Adminis- (3) the availability in the private market- (c) GAO STUDY ON PRE-FIRM STRUC- trator makes a determination under sub- place of flood insurance coverage in amounts TURES.—Not later than 1 year after the date paragraph (A)(ii) that reconstruction or im- that exceed the current limits of coverage of enactment of this Act, the Comptroller General of the United States shall conduct a provement is not reasonably likely to be amounts established in section 61.6 of title study and submit a report to the Committee completed in accordance with the project 44, Code of Federal Regulations; and on Banking, Housing, and Urban Affairs of schedule, the Administrator shall— (4) what effect, if any— the Senate and the Committee on Financial (i) not later than 30 days after the date of (A) raising the current limits of coverage the determination, notify the owner of the Services of the House of Representatives, on amounts established in section 61.6 of title the— flood protection system of the determination 44, Code of Federal Regulations, would have and provide the rationale and evidence for (1) composition of the remaining pre-FIRM on the ability of private insurers to continue structures that are explicitly receiving dis- the determination; and providing flood insurance coverage; and (ii) provide the owner of the flood protec- counted premium rates under section 1307 of (B) reducing the current limits of coverage the National Flood Insurance Act of 1968 (42 tion system the opportunity to appeal the amounts established in section 61.6 of title determination. U.S.C. 4014), including the historical basis for 44, Code of Federal Regulations, would have (2) TERMINATION.—The Administrator shall the receipt of such subsidy and the extent to on the ability of private insurers to provide terminate the eligibility for flood insurance which pre-FIRM structures are currently sufficient flood insurance coverage to effec- coverage under the National Flood Insurance owned by the same owners of the property at tively replace the current level of flood in- Program of persons residing in a community the time of the original National Flood In- surance coverage being provided under the with respect to which the Administrator surance Program rate map; National Flood Insurance Program. made a determination under subsection (a) (2) number and fair market value of such if— (b) REPORT OF THE ADMINISTRATOR ON AC- structures; (A) the Administrator determines that the TIVITIES UNDER THE NATIONAL FLOOD INSUR- (3) respective income level of the owners of community has not made adequate con- ANCE PROGRAM.— such structures; tinuing progress; or (1) IN GENERAL.—The Administrator shall, (4) number of times each such structure (B) on the date that is 5 years after the on an annual basis, submit a full report on has been sold since 1968, including specific date on which the reconstruction or con- the operations, activities, budget, receipts, dates, sales price, and any other information struction of the improvement commences, and expenditures of the National Flood In- the Secretary determines appropriate; the project has not been completed. surance Program for the preceding 12-month (5) total losses incurred by such structures (3) WAIVER.—A person whose eligibility period to the Committee on Banking, Hous- since the establishment of the National would otherwise be terminated under para- ing, and Urban Affairs of the Senate and the Flood Insurance Program compared to the graph (2)(B) shall continue to be eligible to Committee on Financial Services of the total losses incurred by all structures that purchase flood insurance coverage described House of Representatives. are charged a nondiscounted premium rate; in subsection (a) if the Administrator deter- (2) TIMING.—Each report required under (6) total cost of foregone premiums since mines— paragraph (1) shall be submitted to the com- the establishment of the National Flood In- (A) the community has made adequate con- mittees described in paragraph (1) not later surance Program, as a result of the subsidies tinuing progress on the reconstruction or than 3 months following the end of each fis- provided to such structures; improvement of a flood protection system; cal year. (7) annual cost as a result of the subsidies and (3) CONTENTS.—Each report required under provided to such structures; (B) there is a reasonable expectation that paragraph (1) shall include— (8) the premium income collected and the the reconstruction or improvement of the (A) the current financial condition and in- losses incurred by the National Flood Insur- flood protection system will be completed come statement of the National Flood Insur- ance Program as a result of such explicitly not later than 1 year after the date of the de- ance Fund established under section 1310 of subsidized structures compared to the pre- termination under this paragraph. the National Flood Insurance Act of 1968 (42 mium income collected and the losses in- (4) RISK PREMIUM RATE.—If the Adminis- U.S.C. 4017), including— curred by such Program as a result of struc- trator terminates the eligibility of persons (i) premiums paid into such Fund; tures that are charged a nondiscounted pre- residing in a community to purchase flood (ii) policy claims against such Fund; and mium rate, on a State-by-State basis; and insurance coverage described in subsection (iii) expenses in administering such Fund; (9) the options for eliminating the subsidy (a), the Administrator shall establish an ap- (B) the number and face value of all poli- to such structures. propriate risk premium rate for flood insur- cies issued under the National Flood Insur- (d) GAO REVIEW OF FEMA CONTRACTORS.— ance coverage under the National Flood In- ance Program that are in force; The Comptroller General of the United surance Program for persons residing in the (C) a description and summary of the States, in conjunction with the Office of the community that purchased flood insurance losses attributable to repetitive loss struc- Inspector General of the Department of coverage before the date on which the termi- tures; Homeland Security, shall— nation of eligibility takes effect, taking into (D) a description and summary of all losses (1) conduct a review of the 3 largest con- consideration the then-current state of the incurred by the National Flood Insurance tractors the Administrator uses in admin- flood protection system. Program due to— istering the National Flood Insurance Pro- SEC. 135. STUDIES AND REPORTS. (i) hurricane related damage; and gram; and (a) REPORT ON EXPANDING THE NATIONAL (ii) nonhurricane related damage; (2) not later than 18 months after the date FLOOD INSURANCE PROGRAM.—Not later than (E) the amounts made available by the Ad- of enactment of this Act, submit a report on 1 year after the date of enactment of this ministrator for mitigation assistance under the findings of such review to the Adminis- Act, the Comptroller General of the United section 1366(c)(4) of the National Flood Insur- trator, the Committee on Banking, Housing, States shall conduct a study and submit a ance Act of 1968 (42 U.S.C. 4104c(c)(4)), as so and Urban Affairs of the Senate, and the report to the Committee on Banking, Hous- redesignated by this Act, for the purchase of Committee on Financial Services of the ing, and Urban Affairs of the Senate and the properties substantially damaged by flood House of Representatives. Committee on Financial Services of the for that fiscal year, and the actual number of SEC. 136. REINSURANCE. House of Representatives, on— flood damaged properties purchased and the (a) REINSURANCE ASSESSMENT.—

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(1) PRIVATE MARKET PRICING ASSESSMENT.— (E) by redesignating paragraph (4) as para- (5) the fiscal impact such optional cov- Not later than 12 months after the date of graph (5); erage would have upon the National Flood enactment of this Act, the Administrator (F) in paragraph (5), as so redesignated, by Insurance Fund if such optional coverage shall submit to Congress a report that— striking ‘‘otherwise’’ and inserting ‘‘Other- were included in the National Flood Insur- (A) assesses the capacity of the private re- wise’’; and ance Program, as described in paragraph (2), insurance, capital, and financial markets to (G) by inserting after paragraph (3) the fol- at the price described in paragraph (3). assist communities, on a voluntary basis, in lowing new paragraph: (b) REPORT.—Not later than 1 year after managing the full range of financial risks as- ‘‘(4) Placing reinsurance coverage on insur- the date of enactment of this Act, the Comp- sociated with flooding by requesting pro- ance provided by such program.’’; and troller General shall submit to the Com- posals to assume a portion of the insurance (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), mittee on Banking, Housing, and Urban Af- risk of the National Flood Insurance Pro- by striking ‘‘include any’’ and all that fol- fairs of the Senate and the Committee on Fi- gram; lows and inserting the following: ‘‘include nancial Services of the House of Representa- (B) describes any responses to the request any organization or person that is author- tives a report containing the results of the for proposals under subparagraph (A); ized to engage in the business of insurance study under subsection (a). (C) assesses whether the rates and terms under the laws of any State, subject to the SEC. 138. POLICY DISCLOSURES. contained in any proposals received by the reporting requirements of the Securities Ex- (a) IN GENERAL.—Notwithstanding any Administrator are— change Act of 1934 pursuant to section 13(a) other provision of law, in addition to any (i) reasonable and appropriate; and or 15(d) of such Act (15 U.S.C. 78m(a) and other disclosures that may be required, each (ii) in an amount sufficient to maintain 78o(d)), or authorized by the Administrator policy under the National Flood Insurance the ability of the National Flood Insurance to assume reinsurance on risks insured by Program shall state all conditions, exclu- Program to pay claims; the flood insurance program;’’. sions, and other limitations pertaining to (D) describes the extent to which carrying (c) ASSESSMENT OF CLAIMS-PAYING ABIL- coverage under the subject policy, regardless out the proposals received by the Adminis- ITY.— of the underlying insurance product, in plain trator would minimize the likelihood that (1) ASSESSMENT.— English, in boldface type, and in a font size the Administrator would use the borrowing (A) ASSESSMENT REQUIRED.— that is twice the size of the text of the body authority under section 1309 of the National (i) IN GENERAL.—Not later than September of the policy. Flood Insurance Act of 1968 (42 U.S.C. 4016); 30 of each year, the Administrator shall con- (E) describes fluctuations in historical re- (b) VIOLATIONS.—The Administrator may duct an assessment of the ability of the Na- impose a civil penalty of not more than insurance rates; and tional Flood Insurance Program to pay (F) includes an economic cost-benefit anal- $50,000 on any person that fails to comply claims. ysis of the impact on the National Flood In- with subsection (a). (ii) PRIVATE MARKET REINSURANCE.—The assurance Program if the Administrator were SEC. 139. REPORT ON INCLUSION OF BUILDING sessment under this paragraph for any year to exercise the authority under section CODES IN FLOODPLAIN MANAGE- in which the Administrator exercises the au- 1335(a)(2) of the National Flood Insurance MENT CRITERIA. thority under section 1335(a)(2) of the Na- Act of 1968 (42 U.S.C. 4055(a)(2)), as added by Not later than 6 months after the date of tional Flood Insurance Act of 1968 (42 U.S.C. this section, to secure reinsurance of cov- enactment of this Act, the Administrator of 4055(a)(2)), as added by this section, to secure erage provided by the National Flood Insur- the Federal Emergency Management Agency reinsurance of coverage provided by the Na- ance Program from the private market. shall conduct a study and submit a report to tional Flood Insurance Program from the (2) PROTOCOL FOR RELEASE OF DATA.—The the Committee on Banking, Housing, and Administrator shall develop a protocol, in- private market shall include information re- Urban Affairs of the Senate and the Com- cluding adequate privacy protections, to pro- lating the use of private sector reinsurance mittee on Financial Services of the House of vide for the release of data sufficient to con- and reinsurance equivalents by the Adminis- Representatives regarding the impact, effec- duct the assessment required under para- trator, whether or not the Administrator tiveness, and feasibility of amending section graph (1). used the borrowing authority under section 1361 of the National Flood Insurance Act of (b) REINSURANCE.—The National Flood In- 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) to include widely used surance Act of 1968 (42 U.S.C. 4001 et seq.) is 1968 (42 U.S.C. 4016). and nationally recognized building codes as amended— (iii) FIRST ASSESSMENT.—The Adminis- part of the floodplain management criteria (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), trator shall conduct the first assessment re- developed under such section, and shall de- by inserting ‘‘, including as reinsurance of quired under this paragraph not later than termine— coverage provided by the flood insurance September 30, 2012. (1) the regulatory, financial, and economic program’’ before ‘‘, on such terms’’; (B) CONSIDERATIONS.—In conducting an as- impacts of such a building code requirement (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), sessment under subparagraph (A), the Ad- on homeowners, States and local commu- by inserting ‘‘or reinsurance’’ after ‘‘flood ministrator shall take into consideration re- nities, local land use policies, and the Fed- insurance coverage’’; gional concentrations of coverage written by eral Emergency Management Agency; (3) in section 1335(a) (42 U.S.C. 4055(a))— the National Flood Insurance Program, peak (2) the resources required of State and (A) by striking ‘‘The Director’’ and insert- flood zones, and relevant mitigation meas- local communities to administer and enforce ing the following: ures. such a building code requirement; ‘‘(1) IN GENERAL.—The Administrator’’; and (2) ANNUAL REPORT OF THE ADMINISTRATOR (3) the effectiveness of such a building code (B) by adding at the end the following: OF ACTIVITIES UNDER THE NATIONAL FLOOD IN- requirement in reducing flood-related dam- ‘‘(2) PRIVATE REINSURANCE.—The Adminis- SURANCE PROGRAM.—The Administrator age to buildings and contents; trator is authorized to secure reinsurance of shall— (4) the impact of such a building code re- coverage provided by the flood insurance (A) include the results of each assessment quirement on the actuarial soundness of the program from the private market at rates in the report required under section 135(b); National Flood Insurance Program; and on terms determined by the Adminis- and (5) the effectiveness of nationally recog- trator to be reasonable and appropriate, in (B) not later than 30 days after the date on nized codes in allowing innovative materials an amount sufficient to maintain the ability which the Administrator completes an as- and systems for flood-resistant construction; of the program to pay claims.’’; sessment required under paragraph (1), make (6) the feasibility and effectiveness of pro- (4) in section 1346(a) (42 U.S.C. 4082(a))— the results of the assessment available to the viding an incentive in lower premium rates (A) in the matter preceding paragraph (1), public. for flood insurance coverage under such Act by inserting after ‘‘for the purpose of’’ the SEC. 137. GAO STUDY ON BUSINESS INTERRUP- for structures meeting whichever of such following: ‘‘securing reinsurance of insur- TION AND ADDITIONAL LIVING EX- widely used and nationally recognized build- ance coverage provided by the program or for PENSES COVERAGES. ing codes or any applicable local building the purpose of’’; (a) STUDY.—The Comptroller General of codes provides greater protection from flood (B) in paragraph (1)— the United States shall conduct a study con- damage; (i) by striking ‘‘estimating’’ and inserting cerning— (7) the impact of such a building code re- ‘‘Estimating’’; and (1) the availability of additional living ex- quirement on rural communities with dif- (ii) by striking the semicolon at the end penses and business interruption coverage in ferent building code challenges than urban and inserting a period; the private marketplace for flood insurance; communities; and (C) in paragraph (2)— (2) the feasibility of allowing the National (8) the impact of such a building code re- (i) by striking ‘‘receiving’’ and inserting Flood Insurance Program to offer such cov- quirement on Indian reservations. ‘‘Receiving’’; and erage at the option of the consumer; SEC. 140. STUDY OF PARTICIPATION AND AF- (ii) by striking the semicolon at the end (3) the estimated cost to consumers if the FORDABILITY FOR CERTAIN POLICY- and inserting a period; National Flood Insurance Program priced HOLDERS. (D) in paragraph (3)— such optional coverage at true actuarial (a) FEMA STUDY.—The Administrator (i) by striking ‘‘making’’ and inserting rates; shall conduct a study of— ‘‘Making’’; and (4) the impact such optional coverage (1) methods to encourage and maintain (ii) by striking ‘‘ ‘; and’ ’’ and inserting a would have on consumer participation in the participation in the National Flood Insur- period; National Flood Insurance Program; and ance Program;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.065 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4477 (2) methods to educate consumers about (3) identifies any legislative changes that quirements under section 102 of the Flood the National Flood Insurance Program and would encourage participation by Indian Disaster Protection Act of 1973 (42 U.S.C. the flood risk associated with their property; tribes and members of Indian tribes in the 4012a). (3) methods for establishing an afford- National Flood Insurance Program. (2) TO LENDERS.—The Administrator and ability framework for the National Flood In- SEC. 142. TECHNICAL CORRECTIONS. each Federal entity for lending regulation surance Program, including methods to aid (a) FLOOD DISASTER PROTECTION ACT OF shall include the notification required under individuals to afford risk-based premiums 1973.—The Flood Disaster Protection Act of paragraph (1) in any edition of a publication under the National Flood Insurance Program 1973 (42 U.S.C. 4002 et seq.) is amended— that the Administrator or Federal entity for through targeted assistance rather than gen- (1) by striking ‘‘Director’’ each place that lending regulation provides to lenders that is erally subsidized rates, including means- term appears, except in section 102(f)(3) (42 published after the date of enactment of this tested vouchers; and U.S.C. 4012a(f)(3)), and inserting ‘‘Adminis- Act. (4) the implications for the National Flood trator’’; and (d) TRAINING.—Not later than 60 days after Insurance Program and the Federal budget (2) in section 201(b) (42 U.S.C. 4105(b)), by the date on which the Administrator makes of using each such method. striking ‘‘Director’s’’ and inserting ‘‘Admin- the notification under subsection (c), the (b) NATIONAL ACADEMY OF SCIENCES ECO- istrator’s’’. Federal entities for lending regulation shall NOMIC ANALYSIS.—To inform the Adminis- (b) NATIONAL FLOOD INSURANCE ACT OF train each employee having responsibility trator in the conduct of the study under sub- 1968.—The National Flood Insurance Act of for compliance audits to implement the section (a), the Administrator shall enter 1968 (42 U.S.C. 4001 et seq.) is amended— amendments to the Guidelines under sub- into a contract under which the National (1) by striking ‘‘Director’’ each place that section (b). Academy of Sciences, in consultation with term appears and inserting ‘‘Administrator’’; TITLE II—COMMISSION ON NATURAL CA- the Comptroller General of the United (2) in section 1363 (42 U.S.C. 4104), by strik- TASTROPHE RISK MANAGEMENT AND States, shall conduct and submit to the Ad- ing ‘‘Director’s’’ each place that term ap- INSURANCE ministrator an economic analysis of the pears and inserting ‘‘Administrator’s’’; and costs and benefits to the Federal Govern- SEC. 201. SHORT TITLE. (3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)), This title may be cited as the ‘‘Commis- ment of a flood insurance program with full by striking ‘‘the Office of Thrift Super- risk-based premiums, combined with means- sion on Natural Catastrophe Risk Manage- vision,’’. ment and Insurance Act of 2012’’. tested Federal assistance to aid individuals (c) FEDERAL FLOOD INSURANCE ACT OF who cannot afford coverage, through an in- 1956.—Section 15(e) of the Federal Flood In- SEC. 202. FINDINGS. surance voucher program. The analysis shall surance Act of 1956 (42 U.S.C. 2414(e)) is Congress finds that— compare the costs of a program of risk-based amended by striking ‘‘Director’’ each place (1) Hurricanes Katrina, Rita, and Wilma, rates and means-tested assistance to the cur- that term appears and inserting ‘‘Adminis- which struck the United States in 2005, rent system of subsidized flood insurance trator’’. caused, by some estimates, in excess of $200,000,000,000 in total economic losses; rates and federally funded disaster relief for SEC. 143. PRIVATE FLOOD INSURANCE POLICIES. (2) many meteorologists predict that the people without coverage. (a) DEFINITIONS.—In this section the fol- United States is in a period of increased hur- (c) REPORT.—Not later than 270 days after lowing definitions shall apply: the date of enactment of this Act, the Ad- ricane activity; (1) GUIDELINES.—The term ‘‘Guidelines’’ (3) the Federal Government and State gov- ministrator shall submit to the Committee means the Mandatory Purchase of Flood In- ernments have provided billions of dollars to on Banking, Housing, and Urban Affairs of surance Guidelines issued by the Adminis- pay for losses from natural catastrophes, in- the Senate and the Committee on Financial trator. Services of the House of Representatives a cluding hurricanes, earthquakes, volcanic (2) STATE ENTITY FOR LENDING REGULA- report that contains the results of the study eruptions, tsunamis, tornados, flooding, TION.—The term ‘‘State entity for lending wildfires, droughts, and other natural catas- and analysis under this section. regulation’’ means, with respect to a State, (d) FUNDING.—Notwithstanding section 1310 trophes; the entity or agency with primary responsi- of the National Flood Insurance Act of 1968 (4) many Americans are finding it increas- bility for the supervision of lending institu- (42 U.S.C. 4017), there shall be available to ingly difficult to obtain and afford property tions chartered by the State and not insured the Administrator from the National Flood and casualty insurance coverage; by the Federal Deposit Insurance Corpora- Insurance Fund, of amounts not otherwise (5) some insurers are not renewing insur- tion or the National Credit Union Adminis- obligated, not more than $750,000 to carry ance policies, are excluding certain risks, tration. out this section. such as wind damage, and are increasing (b) AMENDMENTS REQUIRED.— SEC. 141. STUDY AND REPORT CONCERNING THE rates and deductibles in some markets; (1) IN GENERAL.—Not later than 120 days PARTICIPATION OF INDIAN TRIBES (6) the inability of property and business after the date of enactment of this Act, the AND MEMBERS OF INDIAN TRIBES IN owners in vulnerable areas to obtain and af- Administrator shall amend the Guidelines to THE NATIONAL FLOOD INSURANCE ford property and casualty insurance cov- clarify that a lender or a lending institution PROGRAM. erage endangers the national economy and chartered by a State and not insured by the (a) DEFINITION.—In this section, the term public health and safety; Federal Deposit Insurance Corporation or ‘‘Indian tribe’’ has the meaning given that (7) almost every State in the United States the National Credit Union Administration term in section 4 of the Indian Self-Deter- is at risk of a natural catastrophe, including may accept a private primary flood insur- mination and Education Assistance Act (25 hurricanes, earthquakes, volcanic eruptions, ance policy in lieu of a National Flood Insur- U.S.C. 450b). tsunamis, tornados, flooding, wildfires, ance Program flood policy to satisfy the (b) FINDINGS.—Congress finds that partici- droughts, and other natural catastrophes; mandatory purchase requirements under sec- pation by Indian tribes in the National Flood (8) building codes and land use regulations tion 102 of the Flood Disaster Protection Act Insurance Program is low. Only 45 of 565 In- play an indispensable role in managing ca- of 1973 (42 U.S.C. 4012a), if the private pri- dian tribes participate in the National Flood tastrophe risks, by preventing building in mary flood insurance policy— Insurance Program. high risk areas and ensuring that appro- (c) STUDY.—The Comptroller General of the (A) is available for sale under the laws of priate mitigation efforts are completed United States, in coordination and consulta- the State in which the private primary flood where building has taken place; tion with Indian tribes and members of In- insurance policy is to be written; (9) several proposals have been introduced dian tribes throughout the United States, (B) meets the minimum requirements for in Congress to address the affordability and shall carry out a study that examines— flood insurance coverage under subsections availability of natural catastrophe insurance (1) the factors contributing to the current (a) and (b) of such section 102; and across the United States, but there is no con- rates of participation by Indian tribes and (C) meets any applicable Federal regula- sensus on what, if any, role the Federal Gov- members of Indian tribes in the National tions. ernment should play; and Flood Insurance Program; and (2) STATE LAW CONSIDERATIONS.—Neither (10) an efficient and effective approach to (2) methods of encouraging participation the Guidelines nor the amendments made assessing natural catastrophe risk manage- by Indian tribes and members of Indian under paragraph (1) shall preempt any State ment and insurance is to establish a non- tribes in the National Flood Insurance Pro- insurance law, regulation, or guidance. partisan commission to study the manage- gram. (c) NOTIFICATION.— ment of natural catastrophe risk, and to re- (d) REPORT.—Not later than 6 months after (1) TO FEDERAL AND STATE ENTITIES FOR quire such commission to timely report to the date of enactment of this Act, the Comp- LENDING REGULATION.—Not later than 30 days Congress on its findings. troller General shall submit to Congress a after the date on which the Administrator report that— amends the Guidelines under subsection (b), SEC. 203. ESTABLISHMENT. (1) contains the results of the study carried the Administrator shall notify the Federal There is established a nonpartisan Com- out under subsection (c); entities for lending regulation and the State mission on Natural Catastrophe Risk Man- (2) describes the steps that the Adminis- entities for lending regulation of the amend- agement and Insurance (in this title referred trator should take to increase awareness and ment, in order to encourage the acceptance to as the ‘‘Commission’’). encourage participation by Indian tribes and of private primary flood insurance in lieu of SEC. 204. MEMBERSHIP. members of Indian tribes in the National a National Flood Insurance Program flood (a) APPOINTMENT.—The Commission shall Flood Insurance Program; and policy to satisfy the mandatory purchase re- be composed of 16 members, of whom—

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REPORT. ing mechanism designed to provide adequate from among persons who— (a) IN GENERAL.—Not later than 9 months (A) have expertise in insurance, reinsur- insurance coverage and increased under- after the date of enactment of this Act, the ance, insurance regulation, policyholder con- writing capacity to insurers and reinsurers, Commission shall submit to the Committee cerns, emergency management, risk manage- including private-public partnerships to in- on Banking, Housing, and Urban Affairs of ment, public finance, financial markets, ac- crease insurance capacity in constrained the Senate and the Committee on Financial tuarial analysis, flood mapping and plan- markets; Services of the House of Representatives a ning, structural engineering, building stand- (8) methods to promote public or private final report containing— ards, land use planning, natural catas- insurance policies to reduce losses caused by (1) a detailed statement of the findings and trophes, meteorology, seismology, environ- natural catastrophes in the uninsured sec- assessments conducted by the Commission tors of the American population; mental issues, or other pertinent qualifica- pursuant to section 205; and (9) approaches for implementing a public tions or experience; and (2) any recommendations for legislative, or private insurance scheme for low-income (B) are not officers or employees of the regulatory, administrative, or other actions communities, in order to promote risk re- United States Government or of any State or at the Federal, State, or local levels that the duction and insurance coverage in such com- local government. Commission considers appropriate, in ac- munities; (2) DIVERSITY.—In making appointments to cordance with the requirements of section (10) the impact of Federal and State laws, the Commission— 205. regulations, and policies (including rate reg- (A) every effort shall be made to ensure (b) EXTENSION OF TIME.—The Commission ulation, market access requirements, rein- that the members are representative of a may request Congress to extend the period of surance regulations, accounting and tax poli- time for the submission of the report re- broad cross section of perspectives within cies, State residual markets, and State ca- the United States; and quired under subsection (a) for an additional tastrophe funds) on— 3 months. (B) each member of Congress described in (A) the affordability and availability of ca- SEC. 207. POWERS OF THE COMMISSION. subsection (a) shall appoint not more than 1 tastrophe insurance; (a) MEETINGS; HEARINGS.—The Commission person from any single primary area of ex- (B) the capacity of the private insurance may hold such hearings, sit and act at such pertise described in paragraph (1)(A) of this market to cover losses inflicted by natural times and places, take such testimony, and subsection. catastrophes; receive such evidence as the Commission (c) PERIOD OF APPOINTMENT.— (C) the commercial and residential devel- considers necessary to carry out the pur- (1) IN GENERAL.—Each member of the Com- opment of high-risk areas; and poses of this title. Members may attend mission shall be appointed for the duration (D) the costs of natural catastrophes to meetings of the Commission and vote in per- of the Commission. Federal and State taxpayers; son, via telephone conference, or via video (2) VACANCIES.—A vacancy on the Commis- (11) the present and long-term financial conference. sion shall not affect its powers, but shall be condition of State residual markets and ca- (b) AUTHORITY OF MEMBERS OR AGENTS OF filled in the same manner as the original ap- tastrophe funds in high-risk regions, includ- pointment. THE COMMISSION.—Any member or agent of ing the likelihood of insolvency following a the Commission may, if authorized by a vote (d) QUORUM.— natural catastrophe, the concentration of (1) MAJORITY.—A majority of the members of the Commission, take any action which risks within such funds, the reliance on post- the Commission is authorized to take by this of the Commission shall constitute a event assessments and State funding, and quorum, but a lesser number, as determined title. the adequacy of rates; (c) OBTAINING OFFICIAL DATA.— by the Commission, may hold hearings. (12) the role that innovation in financial (1) AUTHORITY.—Notwithstanding any pro- (2) APPROVAL ACTIONS.—All recommenda- services could play in improving the afford- vision of section 552a of title 5, United States tions and reports of the Commission required ability and availability of natural catas- Code, the Commission may secure directly by this title shall be approved only by a ma- trophe insurance, specifically addressing from any department or agency of the jority vote of all of the members of the Com- measures that would foster the development United States any information necessary to mission. of financial products designed to cover nat- enable the Commission to carry out this (e) CHAIRPERSON.—The Commission shall, ural catastrophe risk, such as risk-linked se- title. by majority vote of all of the members, securities; (2) PROCEDURE.—Upon the request of the lect 1 member to serve as the Chairperson of (13) the need for strengthened land use reg- Chairperson, the head of such department or the Commission (in this title referred to as ulations and building codes in States at high agency shall furnish to the Commission the the ‘‘Chairperson’’). risk for natural catastrophes, and methods information requested. (f) MEETINGS.—The Commission shall meet to strengthen the risk assessment and en- (d) POSTAL SERVICES.—The Commission at the call of its Chairperson or a majority of forcement of structural mitigation and vul- may use the United States mails in the same the members. nerability reduction measures, such as zon- manner and under the same conditions as SEC. 205. DUTIES OF THE COMMISSION. ing and building code compliance; other departments and agencies of the Fed- The Commission shall examine the risks (14) the benefits and costs of proposed Fed- eral Government. posed to the United States by natural catas- eral natural catastrophe insurance programs (e) ADMINISTRATIVE SUPPORT SERVICES.— trophes, and means for mitigating those (including the Federal Government’s provi- Upon the request of the Commission, the Ad- risks and for paying for losses caused by nat- sion of reinsurance to State catastrophe ministrator of General Services shall provide ural catastrophes, including assessing— funds, private insurers, or other entities), to the Commission, on a reimbursable basis, (1) the condition of the property and cas- specifically addressing the costs to tax- any administrative support services nec- ualty insurance and reinsurance markets payers, tax equity considerations, and the essary for the Commission to carry out its prior to and in the aftermath of Hurricanes record of other government insurance pro- responsibilities under this title.

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(f) ACCEPTANCE OF GIFTS.—The Commission SEC. 209. TERMINATION. ‘‘(10) STATE.—The term ‘State’ means a may accept, hold, administer, and utilize The Commission shall terminate 90 days State of the United States, the District of gifts, donations, and bequests of property, after the date on which the Commission sub- Columbia, the Commonwealth of Puerto both real and personal, for the purposes of mits its report under section 206. Rico, and any other territory or possession aiding or facilitating the work of the Com- SEC. 210. AUTHORIZATION OF APPROPRIATIONS. of the United States. mission. The Commission shall issue inter- There are authorized to be appropriated to ‘‘(b) NAMED STORM EVENT MODEL AND nal guidelines governing the receipt of dona- the Commission, such sums as may be nec- POST-STORM ASSESSMENT.— tions of services or property. essary to carry out this title, to remain ‘‘(1) ESTABLISHMENT OF NAMED STORM (g) VOLUNTEER SERVICES.—Notwith- available until expended. EVENT MODEL.— standing the provisions of section 1342 of TITLE III—ALTERNATIVE LOSS ‘‘(A) IN GENERAL.—Not later than 540 days title 31, United States Code, the Commission ALLOCATION after the date of the enactment of the Con- sumer Option for an Alternative System to may accept and utilize the services of volun- SEC. 301. SHORT TITLE. teers serving without compensation. The Allocate Losses Act of 2012, the Adminis- This title may be cited as the ‘‘Consumer trator shall develop by regulation the Named Commission may reimburse such volunteers Option for an Alternative System to Allo- for local travel and office supplies, and for Storm Event Model. cate Losses Act of 2012’’ or the ‘‘COASTAL ‘‘(B) ACCURACY.—The Named Storm Event other travel expenses, including per diem in Act of 2012’’. lieu of subsistence, as authorized by section Model shall be designed to generate post- SEC. 302. ASSESSING AND MODELING NAMED storm assessments, as provided in paragraph 5703 of title 5, United States Code. STORMS OVER COASTAL STATES. (h) FEDERAL PROPERTY AND ADMINISTRA- (2), that have a degree of accuracy of not less Subtitle C of title XII of the Omnibus Pub- than 90 percent for every indeterminate loss TIVE SERVICES ACT OF 1949.—Subject to the lic Land Management Act of 2009 (33 U.S.C. Federal Property and Administrative Serv- for which a post-storm assessment is uti- 3601 et seq.) (also known as the ‘‘Integrated lized. ices Act of 1949, the Commission may enter Coastal and Ocean Observation System Act into contracts with Federal and State agen- ‘‘(2) POST-STORM ASSESSMENT.— of 2009’’) is amended by adding at the end the ‘‘(A) IDENTIFICATION OF NAMED STORMS cies, private firms, institutions, and individ- following: uals for the conduct of activities necessary THREATENING COASTAL STATES.—After the es- ‘‘SEC. 12312. ASSESSING AND MODELING NAMED tablishment of the COASTAL Formula, the to the discharge of its duties and responsibil- STORMS OVER COASTAL STATES. ities. Administrator shall, in consultation with ‘‘(a) DEFINITIONS.—In this section: the Secretary of Homeland Security, iden- (i) LIMITATION ON CONTRACTS.—A contract ‘‘(1) COASTAL FORMULA.—The term tify named storms that may reasonably con- or other legal agreement entered into by the ‘COASTAL Formula’ has the meaning given stitute a threat to any portion of a coastal Commission may not extend beyond the date the term in section 1337(a) of the National State. of the termination of the Commission. Flood Insurance Act of 1968. ‘‘(B) POST-STORM ASSESSMENT REQUIRED.— SEC. 208. COMMISSION PERSONNEL MATTERS. ‘‘(2) COASTAL STATE.—The term ‘coastal Upon identification of a named storm under (a) TRAVEL EXPENSES.—The members of State’ has the meaning given the term subparagraph (A), the Administrator shall the Commission shall be allowed travel ex- ‘coastal state’ in section 304 of the Coastal develop a post-storm assessment for such penses, including per diem in lieu of subsist- Zone Management Act of 1972 (16 U.S.C. named storm using the Named Storm Event ence, at rates authorized for employees of 1453). Model and covered data collected for such agencies under subchapter I of chapter 57 of ‘‘(3) COASTAL WATERS.—The term ‘coastal named storm pursuant to the protocol estab- title 5, United States Code, while away from waters’ has the meaning given the term in lished under subsection (c)(1). their homes or regular places of business in such section. ‘‘(C) SUBMITTAL OF POST-STORM ASSESS- the performance of services for the Commis- ‘‘(4) COVERED DATA.—The term ‘covered MENT.—Not later than 90 days after an iden- sion. data’ means, with respect to a named storm tification of a named storm is made under (b) SUBCOMMITTEES.—The Commission may identified by the Administrator under sub- subparagraph (A), the Administrator shall establish subcommittees and appoint mem- section (b)(2)(A), empirical data that are— submit to the Secretary of Homeland Secu- bers of the Commission to such subcommit- ‘‘(A) collected before, during, or after such rity the post-storm assessment developed for tees as the Commission considers appro- storm; and such storm under subparagraph (B). priate. ‘‘(B) necessary to determine magnitude ‘‘(3) ACCURACY.—The Administrator shall (c) STAFF.—Subject to such policies as the and timing of wind speeds, rainfall, the baro- ensure, to the greatest extent practicable, Commission may prescribe, the Chairperson metric pressure, river flows, the extent, that each post-storm assessment developed may appoint and fix the pay of such addi- height, and timing of storm surge, topo- under paragraph (2) has a degree of accuracy tional personnel as the Chairperson con- graphic and bathymetric data, and other of not less than 90 percent. siders appropriate to carry out the duties of measures required to accurately model and ‘‘(4) CERTIFICATION.—For each post-storm the Commission. The Commission shall con- assess damage from such storm. assessment carried out under paragraph (2), firm the appointment of the executive direc- ‘‘(5) INDETERMINATE LOSS.—The term ‘inde- the Administrator shall— tor by majority vote of all of the members of terminate loss’ has the meaning given the ‘‘(A) certify the degree of accuracy for such the Commission. term in section 1337(a) of the National Flood assessment, including specific reference to (d) APPLICABILITY OF CERTAIN CIVIL SERV- Insurance Act of 1968. any segments or geographic areas for which ICE LAWS.—Staff of the Commission may be— ‘‘(6) NAMED STORM.—The term ‘named the assessment is less than 90 percent accu- (1) appointed without regard to the provi- storm’ means any organized weather system rate; and sions of title 5, United States Code, gov- with a defined surface circulation and max- ‘‘(B) report such certification to the Sec- erning appointments in the competitive imum winds of at least 39 miles per hour retary of Homeland Security for the pur- service; and which the National Hurricane Center of the poses of use with indeterminate loss claims (2) paid without regard to the provisions of United States National Weather Service under section 1337 of the National Flood In- chapter 51 and subchapter III of chapter 53 of names as a tropical storm or a hurricane. surance Act of 1968. that title relating to classification and Gen- ‘‘(7) NAMED STORM EVENT MODEL.—The term ‘‘(5) FINALITY OF DETERMINATIONS.—A cer- eral Schedule pay rates, except that an indi- ‘Named Storm Event Model’ means the offi- tification of the degree of accuracy of a post- vidual so appointed may not receive pay in cial meteorological and oceanographic com- storm assessment under this subsection by excess of the annual rate of basic pay pre- puterized model, developed by the Adminis- the Administrator shall be final and shall scribed for GS–15 of the General Schedule trator under subsection (b)(1)(A), which uti- not be subject to judicial review. under section 5332 of that title. lizes covered data to replicate the mag- ‘‘(6) AVAILABILITY.—The Administrator (e) EXPERTS AND CONSULTANTS.—In car- nitude, timing, and spatial variations of shall make available to the public the rying out its objectives, the Commission winds, rainfall, and storm surges associated Named Storm Event Model and any post- may procure temporary and intermittent with named storms that threaten any por- storm assessment developed under this sub- services of consultants and experts under tion of a coastal State. section. section 3109(b) of title 5, United States Code, ‘‘(8) PARTICIPANT.—The term ‘participant’ ‘‘(c) ESTABLISHMENT OF A PROTOCOL FOR at rates for individuals which do not exceed means a Federal, State, or private entity POST-STORM ASSESSMENT.— the daily equivalent of the annual rate of that chooses to cooperate with the Adminis- ‘‘(1) IN GENERAL.—Not later than 540 days basic pay prescribed for GS–15 of the General trator in carrying out the provisions of this after the date of the enactment of the Con- Schedule under section 5332 of that title. section by collecting, contributing, and sumer Option for an Alternative System to (f) DETAIL OF GOVERNMENT EMPLOYEES.— maintaining covered data. Allocate Losses Act of 2012, the Adminis- Upon request of the Chairperson, any Fed- ‘‘(9) POST-STORM ASSESSMENT.—The term trator shall establish a protocol, based on eral Government employee may be detailed ‘post-storm assessment’ means a scientific the plan submitted under subsection (d)(3), to the Commission to assist in carrying out assessment produced and certified by the Ad- to collect and assemble all covered data re- the duties of the Commission— ministrator to determine the magnitude, quired by the Administrator to produce post- (1) on a reimbursable basis; and timing, and spatial variations of winds, rain- storm assessments required by subsection (2) such detail shall be without interrup- fall, and storm surges associated with a spe- (b), including assembling data collected by tion or loss of civil service status or privi- cific named storm to be used in the COAST- participants and stored in the database es- lege. AL Formula. tablished under subsection (f) and from such

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ALTERNATIVE LOSS ALLOCATION SYS- data as part of the protocol established ered data necessary to develop the Named TEM FOR INDETERMINATE CLAIMS. under paragraph (1), the Administrator may Storm Event Model and post-storm assess- acquire such sensors and structures for the ment required by subsection (b) that address- Part A of chapter II of the National Flood placement of sensors as may be necessary to es any gaps identified in paragraph (2). Insurance Act of 1968 (42 U.S.C. 4051 et seq.) obtain such data. ‘‘(e) COORDINATION OF COVERED DATA COL- is amended by adding at the end the fol- ‘‘(3) USE OF FEDERAL ASSETS.—If the pro- LECTION AND MAINTENANCE BY PARTICI- lowing: tocol requires placement of a sensor to de- PANTS.— ‘‘SEC. 1337. ALTERNATIVE LOSS ALLOCATION SYS- velop assessments pursuant to subsection ‘‘(1) IN GENERAL.—The Administrator shall, TEM FOR INDETERMINATE CLAIMS. (b), the Administrator shall, to the extent in consultation with the Office of the Fed- ‘‘(a) DEFINITIONS.—In this section: practicable, use Federal assets for the place- eral Coordinator for Meteorology, coordinate ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- ment of such sensors. the collection and maintenance of covered trator’ means the Administrator of the Fed- ‘‘(4) USE OF ACQUIRED STRUCTURES.— data by participants under this section— eral Emergency Management Agency. ‘‘(A) to streamline the process of collecting ‘‘(A) IN GENERAL.—If the Administrator ac- ‘‘(2) COASTAL FORMULA.—The term quires a structure for the placement of a sen- covered data in accordance with the protocol ‘COASTAL Formula’ means the formula es- sor for purposes of such protocol, the Admin- established under subsection (c)(1); and tablished under subsection (b). ‘‘(B) to maintain transparency of such istrator shall to the extent practical permit ‘‘(3) COASTAL STATE.—The term ‘coastal other public and private entities to place process and the database established under State’ has the meaning given the term sensors on such structure to collect— subsection (f). ‘coastal state’ in section 304 of the Coastal ‘‘(2) SHARING INFORMATION.—The Adminis- ‘‘(i) meteorological data; Zone Management Act of 1972 (16 U.S.C. trator shall establish a process for sharing ‘‘(ii) national security-related data; 1453). among participants information relevant to ‘‘(iii) navigation-related data; ‘‘(4) INDETERMINATE LOSS.— ‘‘(iv) hydrographic data; or collecting and using covered data for— ‘‘(A) IN GENERAL.—The term ‘indetermi- ‘‘(A) academic research; ‘‘(v) such other data as the Administrator nate loss’ means, as determined by an insur- ‘‘(B) private sector use; considers appropriate. ance claims adjuster certified under the na- ‘‘(C) public outreach; and ‘‘(B) RECEIPT OF CONSIDERATION.—The Ad- tional flood insurance program and in con- ‘‘(D) such other purposes as the Adminis- ministrator may receive consideration for sultation with an engineer as appropriate, a the placement of a sensor on a structure trator considers appropriate. loss resulting from physical damage to, or under subparagraph (A). ‘‘(3) CONSULTATION.—In carrying out para- loss of, property located in any coastal State ‘‘(C) IN-KIND CONSIDERATION.—Consider- graphs (1) and (2), the Administrator shall arising from the combined perils of flood and ation received under subparagraph (B) may consult with the following: wind associated with a named storm. be received in-kind. ‘‘(A) The Commanding General of the ‘‘(B) REQUIREMENTS.—An insurance claims ‘‘(D) USE OF CONSIDERATION.—To the extent United States Army Corps of Engineers. adjuster certified under the national flood practicable, consideration received under ‘‘(B) The Administrator of the Federal insurance program shall only determine that subparagraph (B) shall be used for the main- Emergency Management Agency. a loss is an indeterminate loss if the claims tenance of sensors used to collect covered ‘‘(C) The Commandant of the Coast Guard. adjuster determines that— data. ‘‘(D) The Director of the United States Ge- ‘‘(i) no material remnant of physical build- ‘‘(5) COORDINATED DEPLOYMENTS AND DATA ological Survey. ings or man-made structures remain except COLLECTION PRACTICES.—The Administrator ‘‘(E) The Office of the Federal Coordinator building foundations for the specific prop- shall, in consultation with the Office of the for Meteorology. erty for which the claim is made; and Federal Coordinator for Meteorology, coordi- ‘‘(F) The Director of the National Science ‘‘(ii) there is insufficient or no tangible nate the deployment of sensors as part of the Foundation. evidence created, yielded, or otherwise left protocol established under paragraph (1) and ‘‘(G) The Administrator of the National behind of the specific property for which the related data collection carried out by Fed- Aeronautics and Space Administration. claim is made as a result of the named eral, State, academic, and private entities ‘‘(H) Such public, private, and academic storm. who choose to cooperate with the Adminis- sector entities as the Administrator con- ‘‘(5) NAMED STORM.—The term ‘named trator in carrying out this subsection. siders appropriate for purposes of carrying storm’ means any organized weather system ‘‘(6) PRIORITY ACQUISITION AND DEPLOY- out the provisions of this section. with a defined surface circulation and max- MENT.—The Administrator shall give priority ‘‘(f) ESTABLISHMENT OF COASTAL WIND AND imum winds of not less than 39 miles per in the acquisition for and deployment of sen- WATER EVENT DATABASE.— hour which the National Hurricane Center of sors under the protocol required by para- ‘‘(1) IN GENERAL.—Not later than 1 year graph (1) to areas of coastal States that have after the date of the enactment of the Con- the United States National Weather Service the highest risk of being harmed by named sumer Option for an Alternative System to names as a tropical storm or a hurricane. storms. Allocate Losses Act of 2012, the Adminis- ‘‘(6) POST-STORM ASSESSMENT.—The term ‘‘(d) ASSESSMENT OF SYSTEMS AND EFFORTS trator shall establish a database for the col- ‘post-storm assessment’ means the post- TO COLLECT COVERED DATA.— lection and compilation of covered data— storm assessment developed under section ‘‘(1) IDENTIFICATION OF SYSTEMS AND EF- ‘‘(A) to support the protocol established 12312(b) of the Omnibus Public Land Manage- FORTS TO COLLECT COVERED DATA.—Not later under subsection (c)(1); and ment Act of 2009. than 180 days after the date of the enactment ‘‘(B) for the purposes listed in subsection ‘‘(7) STATE.—The term ‘State’ means a of the Consumer Option for an Alternative (e)(2). State of the United States, the District of Columbia, the Commonwealth of Puerto System to Allocate Losses Act of 2012, the ‘‘(2) DESIGNATION.—The database estab- Administrator shall, in consultation with lished under paragraph (1) shall be known as Rico, and any other territory or possession the Office of the Federal Coordinator for Me- the ‘Coastal Wind and Water Event Data- of the United States. teorology— base’. ‘‘(8) SECRETARY.—The term ‘Secretary’ ‘‘(A) carry out a survey to identify all Fed- ‘‘(g) COMPTROLLER GENERAL STUDY.—Not means the Secretary of Homeland Security. eral and State efforts and systems that are later than 1 year after the date of the enact- ‘‘(9) STANDARD INSURANCE POLICY.—The capable of collecting covered data; and ment of the Consumer Option for an Alter- term ‘standard insurance policy’ means any ‘‘(B) consult with private and academic native System to Allocate Losses Act of 2012, insurance policy issued under the national sector entities to identify domestic private the Comptroller General of the United States flood insurance program that covers loss or and academic systems that are capable of shall— damage to property resulting from water collecting covered data. ‘‘(1) complete an audit of Federal efforts to peril. ‘‘(2) IDENTIFICATION OF GAPS.—The Admin- collect covered data for purposes of the Con- ‘‘(10) PROPERTY.—The term ‘property’ istrator shall, in consultation with the Office sumer Option for an Alternative System to means real or personal property that is in- of the Federal Coordinator for Meteorology Allocate Losses Act of 2012, which audit sured under a standard insurance policy for and individuals and entities consulted under shall— loss or damage to structure or contents. subsection (e)(3), assess the systems identi- ‘‘(A) examine duplicated Federal efforts to ‘‘(11) UNDER SECRETARY.—The term ‘Under fied under paragraph (1) and identify which collect covered data; and Secretary’ means the Under Secretary of systems meet the needs of the National Oce- ‘‘(B) determine the cost effectiveness of Commerce for Oceans and Atmosphere, in anic and Atmospheric Administration for the such efforts; and the Under Secretary’s capacity as Adminis- collection of covered data, including with re- ‘‘(2) submit to the Committee on Banking, trator of the National Oceanic and Atmos- spect to the accuracy requirement for post- Housing, and Urban Affairs and the Com- pheric Administration. storm assessment under subsection (b)(3). merce, Science, and Transportation of the ‘‘(b) ESTABLISHMENT OF FLOOD LOSS ALLO- ‘‘(3) PLAN.—Not later than 270 days after Senate and the Committee on Financial CATION FORMULA FOR INDETERMINATE the date of the enactment of the Consumer Services and the Committee on Science, CLAIMS.—

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‘‘(1) IN GENERAL.—Not later than 180 days ‘‘(i) EVALUATION.—Upon the issuance of the ‘‘(5) the Office of the Federal Coordinator after the date on which the protocol is estab- rule establishing the COASTAL Formula, for Meteorology; lished under section 12312(c)(1) of the Omni- and each time the Administrator modifies ‘‘(6) State insurance regulators of coastal bus Public Land Management Act of 2009, the the COASTAL Formula, the National Acad- States; and Secretary, acting through the Administrator emy of Sciences shall— ‘‘(7) such public, private, and academic sec- and in consultation with the Under Sec- ‘‘(I) evaluate the expected financial impact tor entities as the Secretary considers appro- retary, shall establish by rule a standard for- on the national flood insurance program of priate for purposes of carrying out such sub- mula to determine and allocate wind losses the use of the COASTAL Formula as so es- sections. and flood losses for claims involving indeter- tablished or modified; and ‘‘(f) RECORDKEEPING.—Each consideration minate losses. ‘‘(II) evaluate the validity of the scientific and measure the Administrator determines ‘‘(2) CONTENTS.—The standard formula es- assumptions upon which the formula is based necessary to carry out subsection (b) may be tablished under paragraph (1) shall— and determine whether the COASTAL for- required, with advanced approval of the Ad- ‘‘(A) incorporate data available from the mula can achieve a degree of accuracy of not ministrator, to be provided for on the Na- Coastal Wind and Water Event Database es- less than 90 percent in allocating flood losses tional Flood Insurance Program Elevation tablished under section 12312(f) of the Omni- for indeterminate losses. Certificate, or maintained otherwise on bus Public Land Management Act of 2009; ‘‘(ii) REPORT.—The National Academy of record if approved by the Administrator, for ‘‘(B) use relevant data provided on the Na- Sciences shall submit a report containing any property that qualifies for the COAST- tional Flood Insurance Program Elevation the results of each evaluation under clause AL Formula under subsection (c). Certificate for each indeterminate loss for (i) to the Administrator, the Committee on ‘‘(g) CIVIL PENALTY.— which the formula is used; Banking, Housing, and Urban Affairs and the ‘‘(1) IN GENERAL.—If an insurance claims ‘‘(C) consider any sufficient and credible Committee on Commerce, Science, and adjuster knowingly and willfully makes a evidence, approved by the Administrator, of Transportation of the Senate, and the Com- false or inaccurate determination relating to the pre-event condition of a specific prop- mittee on Financial Services and the Com- an indeterminate loss, the Administrator erty, including the findings of any policy- mittee on Science, Space, and Technology of may, after notice and opportunity for hear- holder or insurance claims adjuster in con- the House of Representatives. ing, impose on the insurance claims adjuster nection with the indeterminate loss to that ‘‘(B) EFFECTIVE DATE AND APPLICABILITY.— a civil penalty of not more than $1,000. specific property; ‘‘(i) EFFECTIVE DATE.—Paragraphs (1) and ‘‘(2) DEPOSIT.—Notwithstanding section ‘‘(D) include other measures, as the Admin- (2) of this subsection shall not take effect 3302 of title 31, United States Code, or any istrator considers appropriate, required to unless the report under subparagraph (A) re- other law relating to the crediting of money, determine and allocate by mathematical for- lating to the establishment of the COASTAL the Administrator shall deposit in the Na- mula the property damage caused by flood or Formula concludes that the use of the tional Flood Insurance Fund any amounts storm surge associated with a named storm; COASTAL Formula for purposes of para- received under this subsection, which shall and graph (1) and (2) would not have an adverse remain available until expended and be ‘‘(E) subject to paragraph (3), for each inde- financial impact on the national flood insur- available to the Administrator for purposes terminate loss, use the post-storm assess- ance program and that the COASTAL For- authorized for the National Flood Insurance ment to allocate water damage (flood or mula is based on valid scientific assumptions Fund without further appropriation. storm surge) associated with a named storm. that would allow a degree of accuracy of not ‘‘(h) RULE OF CONSTRUCTION.—Nothing in ‘‘(3) DEGREE OF ACCURACY REQUIRED.—The less than 90 percent to be achieved in allo- this subsection shall be construed to require standard formula established under para- cating flood losses for indeterminate losses. the Administrator to make any payment graph (1) shall specify that the Adminis- ‘‘(ii) EFFECT OF MODIFICATIONS.—Unless the under the national flood insurance program, trator may only use the post-storm assess- report under subparagraph (A) relating to a or an insurance company to make any payment for purposes of the formula if the modification of the COASTAL Formula con- ment, for an indeterminate loss based upon Under Secretary certifies that the post- cludes that the use of the COASTAL For- post-storm assessment or the COASTAL For- storm assessment has a degree of accuracy of mula, as so modified, for purposes of para- mula. not less than 90 percent in connection with graphs (1) and (2) would not have an adverse ‘‘(i) APPLICABILITY.—Subsection (c) shall the specific indeterminate loss for which the financial impact on the national flood insur- apply with respect to an indeterminate loss assessment and formula are used. associated with a named storm that occurs ‘‘(c) AUTHORIZED USE OF POST-STORM AS- ance program and that the COASTAL For- after the date on which the Administrator SESSMENT AND COASTAL FORMULA.— mula is based on valid scientific assumptions issues the rule establishing the COASTAL ‘‘(1) IN GENERAL.—Subject to paragraph (3), that would allow a degree of accuracy of not the Administrator may use the post-storm less than 90 percent to be achieved in allo- Formula under subsection (b). ‘‘(j) RULE OF CONSTRUCTION.—Nothing in assessment and the COASTAL Formula to— cating flood losses for indeterminate losses this subsection shall be construed to negate, ‘‘(A) review flood loss payments for inde- the Administrator may not use the COAST- set aside, or void any policy limit, including terminate losses, including as part of the AL Formula, as so modified, for purposes of any loss limitation, set forth in a standard quality assurance reinspection program of paragraphs (1) and (2). insurance policy.’’. the Federal Emergency Management Agency ‘‘(C) FUNDING.—Notwithstanding section for claims under the national flood insurance 1310 of the National Flood Insurance Act of Mr. REID (for Mr. PRYOR program and any other process approved by 1968 (42 U.S.C. 4017), there shall be available SA 2469. the Administrator to review and validate to the Administrator from the National (for himself and Mr. HOEVEN)) proposed payments under the national flood insurance Flood Insurance Fund, of amounts not other- an amendment to amendment SA 2468 program for indeterminate losses following a wise obligated, not more than $750,000 to proposed by Mr. REID (for Mr. JOHNSON named storm; and carry out this paragraph. of South Dakota (for himself and Mr. ‘‘(B) assist the national flood insurance ‘‘(d) DISCLOSURE OF COASTAL FORMULA.— SHELBY)) to the bill S. 1940, to amend program to— Not later than 30 days after the date on the National Flood Insurance Act of ‘‘(i) properly cover qualified flood loss for which a post-storm assessment is submitted 1968, to restore the financial solvency to the Secretary under section 12312(b)(2)(C) claims for indeterminate losses; and of the flood insurance fund, and for ‘‘(ii) avoid paying for any loss or damage of the Omnibus Public Land Management to property caused by any peril (including Act of 2009, for each indeterminate loss for other purposes; as follows: wind), other than flood or storm surge, that which the COASTAL Formula is used pursu- Strike section 107 and insert the following: is not covered under a standard policy under ant to subsection (c)(2), the Administrator SEC. 107. AREAS OF RESIDUAL RISK. the national flood insurance program. shall disclose to the policyholder that makes (a) AREAS OF RESIDUAL RISK.— ‘‘(2) FEDERAL DISASTER DECLARATION.—Sub- a claim relating to the indeterminate loss— (1) DEFINITION.—Not later than 18 months ject to paragraph (3), in order to expedite ‘‘(1) that the Administrator used the after the date of enactment of this Act, the claims and reduce costs to the national flood COASTAL Formula with respect to the inde- Administrator, in consultation with the insurance program, following any major dis- terminate loss; and Technical Mapping Advisory Council estab- aster declared by the President under section ‘‘(2) a summary of the results of the use of lished under section 117, shall establish a def- 401 of the Robert T. Stafford Disaster Relief the COASTAL Formula. inition of the term ‘‘area of residual risk’’, and Emergency Assistance Act (42 U.S.C. ‘‘(e) CONSULTATION.—In carrying out sub- for purposes of the National Flood Insurance 5170) relating to a named storm in a coastal sections (b) and (c), the Secretary shall con- Program, that is limited to areas that are State, the Administrator may use the sult with— not areas having special flood hazards. COASTAL Formula to determine and pay for ‘‘(1) the Under Secretary for Oceans and (2) THIS SECTION.—In this section, the term any flood loss covered under a standard in- Atmosphere; ‘‘area of residual risk’’ has the meaning es- surance policy under the national flood in- ‘‘(2) the Director of the National Institute tablished by the Administrator under para- surance program, if the loss is an indetermi- of Standards and Technology; graph (1). nate loss. ‘‘(3) the Chief of Engineers of the United (b) STUDY AND REPORT ON MANDATORY PUR- ‘‘(3) NATIONAL ACADEMY OF SCIENCES EVAL- States Army Corps of Engineers; CHASE REQUIREMENTS IN AREAS OF RESIDUAL UATION.— ‘‘(4) the Director of the United States Geo- RISK.— ‘‘(A) EVALUATION REQUIRED.— logical Survey; (1) STUDY.—

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.065 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4482 CONGRESSIONAL RECORD — SENATE June 25, 2012 (A) IN GENERAL.—The Comptroller General (1) STUDY.— surance fund, and for other purposes; of the United States shall conduct a study (A) STUDY REQUIRED.—The Administrator as follows: assessing the potential impact and effective- shall conduct a study to assess options, At the end, add the following new section: ness of applying the mandatory purchase re- methods, and strategies for making available quirements under sections 102 and 202 of the voluntary community-based flood insurance SEC. ll. Flood Disaster Protection Act of 1973 (42 policies through the National Flood Insur- This Act shall become effective 7 days U.S.C. 4012a and 4106) to properties located in ance Program. after enactment. areas of residual risk. (B) CONSIDERATIONS.—The study conducted (B) AREAS OF STUDY.—In carrying out the under subparagraph (A) shall— SA 2471. Mr. REID proposed an study required under subparagraph (A), the (i) take into consideration and analyze how amendment to the bill S. 1940, to Comptroller General shall evaluate— voluntary community-based flood insurance amend the National Flood Insurance (i) the regulatory, financial, and economic policies— Act of 1968, to restore the financial sol- impact of applying the mandatory purchase (I) would affect communities having vary- vency of the flood insurance fund, and requirements described in subparagraph (A) ing economic bases, geographic locations, for other purposes; as follows: to areas of residual risk on— flood hazard characteristics or classifica- At the end, add the following new section: (I) the costs of homeownership; tions, and flood management approaches; (II) the actuarial soundness of the National and SEC. ll. Flood Insurance Program; (II) could satisfy the applicable require- This title shall become effective 5 days (III) the Federal Emergency Management ments under section 102 of the Flood Dis- after enactment. Agency; aster Protection Act of 1973 (42 U.S.C. 4012a); (IV) communities located in areas of resid- and SA 2472. Mr. REID proposed an ual risk; (ii) evaluate the advisability of making amendment to the amendment SA 2471 (V) insurance companies participating in available voluntary community-based flood proposed by Mr. REID to the bill S. 1940, the National Flood Insurance Program; and insurance policies to communities, subdivi- to amend the National Flood Insurance (VI) the Disaster Relief Fund; sions of communities, and areas of residual Act of 1968, to restore the financial sol- (ii) the effectiveness of the mandatory pur- risk. chase requirements in protecting— vency of the flood insurance fund, and (C) CONSULTATION.—In conducting the for other purposes; as follows: (I) homeowners and taxpayers in the study required under subparagraph (A), the United States from financial loss; and Administrator may consult with the Comp- In the amendment, strike ‘‘5 days’’ and in- (II) the financial soundness of the National troller General of the United States, as the sert ‘‘4 days’’. Flood Insurance Program; Administrator determines is appropriate. (iii) the impact on lenders of complying (2) REPORT BY THE ADMINISTRATOR.— SA 2473. Mr. REID proposed an with or enforcing the mandatory purchase (A) REPORT REQUIRED.—Not later than 18 amendment to the bill S. 1940, to requirements; months after the date of enactment of this amend the National Flood Insurance (iv) the methodology that the Adminis- Act, the Administrator shall submit to the Act of 1968, to restore the financial sol- trator uses to adequately estimate the vary- Committee on Banking, Housing, and Urban ing levels of residual risk behind levees and vency of the flood insurance fund, and Affairs of the Senate and the Committee on other flood control structures; and for other purposes; as follows: Financial Services of the House of Rep- (v) the extent to which the risk premium At the end, add the following new section: resentatives a report that contains the re- rates under the National Flood Insurance sults and conclusions of the study conducted SEC. ll. Program for property in the areas of residual under paragraph (1). This Act shall become effective 3 days risk behind levees adequately account for— (B) CONTENTS.—The report submitted after enactment. (I) the design of the levees; under subparagraph (A) shall include rec- (II) the soundness of the levees; ommendations for— SA 2474. Mr. REID proposed an (III) the hydrography of the areas of resid- (i) the best manner to incorporate vol- amendment to amendment SA 2473 pro- ual risk; and (IV) any historical flooding in the areas of untary community-based flood insurance posed by Mr. REID to the bill S. 1940, to residual risk. policies into the National Flood Insurance amend the National Flood Insurance Program; and (2) REPORTS.— Act of 1968, to restore the financial sol- (ii) a strategy to implement voluntary (A) INITIAL REPORT.—Not later than 12 vency of the flood insurance fund, and months after the date on which the Adminis- community-based flood insurance policies for other purposes; as follows: trator establishes a definition of the term that would encourage communities to undertake flood mitigation activities, including In the amendment, strike ‘‘3 days’’ and in- ‘‘area of residual risk’’ under subsection sert ‘‘2 days’’. (a)(1), the Comptroller General shall submit the construction, reconstruction, or im- to Congress a report that— provement of levees, dams, or other flood control structures. SA 2475. Mr. REID proposed an (i) contains the results of the study re- amendment to amendment SA 2474 pro- quired under paragraph (1); and (3) REPORT BY COMPTROLLER GENERAL.—Not (ii) provides recommendations to the Ad- later than 6 months after the date on which posed by Mr. REID to the amendment ministrator on improvements that may re- the Administrator submits the report re- SA 2473 proposed by Mr. REID to the sult in more accurate estimates of varying quired under paragraph (2), the Comptroller bill S. 1940, to amend the National levels of residual risk behind levees and General of the United States shall— Flood Insurance Act of 1968, to restore other flood control structures. (A) review the report submitted by the Ad- the financial solvency of the flood in- ministrator; and (B) UPDATED REPORT.—Not later than 5 (B) submit to the Committee on Banking, surance fund, and for other purposes; years after the date on which the Comp- as follows: troller General submits the report under sub- Housing, and Urban Affairs of the Senate and paragraph (A), the Comptroller General the Committee on Financial Services of the In the amendment, strike ‘‘2 days’’ and in- shall— House of Representatives a report that con- sert ‘‘1 day’’. (i) update the study conducted under para- tains— graph (1); and (i) an analysis of the report submitted by SA 2476. Mr. LEE submitted an (ii) submit to Congress an updated report the Administrator; amendment intended to be proposed by that— (ii) any comments or recommendations of him to the bill S. 1940, to amend the (I) contains the results of the updated the Comptroller General relating to the re- National Flood Insurance Act of 1968, port submitted by the Administrator; and study required under clause (i); and to restore the financial solvency of the (II) provides recommendations to the Ad- (iii) any other recommendations of the Comptroller General relating to community- flood insurance fund, and for other pur- ministrator on improvements that may re- poses; which was ordered to lie on the sult in more accurate estimates of varying based flood insurance policies. levels of residual risk behind levees and table; as follows: other flood control structures. SA 2470. Mr. REID proposed an At the end of title I, add the following: (3) ADJUSTMENT OF METHODOLOGIES.—The amendment to amendment SA 2469 pro- SEC. 1ll. PRIORITIZATION OF PRIVATE FLOOD Administrator shall, to the extent prac- posed by Mr. REID (for Mr. PRYOR (for INSURANCE. ticable, adjust the methodologies used to es- himself and Mr. HOEVEN)) to the Section 1304 of the National Flood Insur- timate the varying levels of residual risk be- amendment SA 2468 proposed by Mr. ance Act of 1968 (42 U.S.C. 4011), as amended by this Act, is amended by adding at the end hind levees and other flood control struc- REID (for Mr. JOHNSON of South Dakota tures based on the recommendations sub- the following: (for himself and Mr. SHELBY)) to the mitted by the Comptroller General under ‘‘(d) PRIORITIZATION OF PRIVATE FLOOD IN- subparagraphs (A)(ii) and (B)(ii)(II). bill S. 1940, to amend the National SURANCE.— (c) STUDY OF VOLUNTARY COMMUNITY-BASED Flood Insurance Act of 1968, to restore ‘‘(1) DEFINITIONS.—In this subsection— FLOOD INSURANCE OPTIONS.— the financial solvency of the flood in- ‘‘(A) the term ‘private flood insurance’—

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‘‘(i) means a contract for flood insurance ‘‘(B) in which the chief executive of the (2) STATE.—The term ‘‘State’’ used in the coverage allowed for sale under the laws of State or local government agrees to reim- 14th article of amendment to the Constitu- any State; and burse the Corps for all costs associated with tion of the United States and other applica- ‘‘(ii) does not include flood insurance pro- the performance of the services; and ble provisions of the Constitution includes vided or funded under any program of the ‘‘(2) the Secretary ensures that the re- the District of Columbia, the Commonwealth Federal Emergency Management Agency, in- quirements under paragraph (1) are met with of Puerto Rico, and each other territory or cluding the national flood insurance pro- regard to any request for services submitted possession of the United States. gram; and under paragraph (1) before the Secretary en- ‘‘(B) the term ‘State insurance regulator’ ters into an agreement to perform the serv- f has the meaning given the term in section ices.’’. NOTICE OF HEARING 313(r) of title 31, United States Code. (b) ACTUAL PROTECTION PROVIDED BY FLOOD ‘‘(2) MINIMUM STANDARDS FOR PRIVATE CONTROL STRUCTURES.—Section 1360 of the COMMITTEE ON INDIAN AFFAIRS FLOOD INSURANCE.— National Flood Insurance Act of 1968 (42 Mr. AKAKA. Mr. President, I would ‘‘(A) STATE-SPECIFIC STANDARDS.—For pur- U.S.C. 4101) is amended by adding at the end like to announce that the Committee poses of this subsection, a State insurance the following: on Indian Affairs will meet during the ‘‘(k) ACTUAL PROTECTION PROVIDED BY regulator may establish minimum standards session of the Senate on June 28, 2012, for private flood insurance in the State that FLOOD CONTROL STRUCTURES.—The Adminis- take into account price, scope of coverage, trator may not issue a flood insurance rate in room SD–628 of the Dirksen Senate and any other factors that the State insur- map or an update to a flood insurance rate Office Building, at 2:15 p.m., to conduct ance regulator determines are appropriate. map for an area unless the flood insurance a business meeting to consider the fol- ‘‘(B) DEFAULT STANDARDS.—The Adminis- rate map or update adequately reflects the lowing: protection provided by any levee, dam, or trator shall establish minimum standards for H.R. 443, To provide for the conveyance of other flood control structure in the area.’’. private flood insurance that take into ac- certain property from the United States to count price, scope of coverage, and any other SA 2478. Mr. MERKLEY (for himself the Maniilaq Association located in factors that the Administrator determines Kotzebue, Alaska; H.R. 1560, To amend the and Mrs. BOXER) submitted an amend- are appropriate for States in which the State Ysleta del Sur Pueblo and Alabama and insurance regulator does not establish min- ment intended to be proposed by him Coushatta Indian Tribes of Texas Restora- imum standards under subparagraph (A). to the bill S. 1940, to amend the Na- tion Act to allow the Ysleta del Sur Pueblo ‘‘(3) PRIORITIZATION OF PRIVATE FLOOD IN- tional Flood Insurance Act of 1968, to Tribe to determine blood quantum require- SURANCE.— restore the financial solvency of the ment for membership in that tribe; H.R. 1272, ‘‘(A) IN GENERAL.—Notwithstanding any flood insurance fund, and for other pur- To provide for the use and distribution of the other provision of law, the Administrator poses; which was ordered to lie on the funds awarded to the Minnesota Chippewa may not provide flood insurance under the table; as follows: Tribe, et al, by the United States Court of national flood insurance program to a person Federal Claims in Docket Numbers 19 and On page 15, strike line 20 and insert the fol- for real property or personal property unless 188, and for other purposes; S. 134, A bill to lowing: the person demonstrates that there is no pri- authorize the Mescalero Apache Tribe to ‘‘(f) EXEMPTION FROM MANDATORY PUR- vate flood insurance available for the prop- lease adjudicated water rights; S. 1065, A bill CHASE REQUIREMENT FOR PRE-REFORM HOME- erty that meets— to settle land claims within the Fort Hall OWNERS.—The requirements under sections ‘‘(i) the standards established under para- Reservation; S. 2389, A bill to deem the sub- graph (2)(A) for the State in which the prop- 102 and 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a and 4106) shall not mission of certain claims to an Indian erty is located; or Health Service contracting officer as timely; ‘‘(ii) if standards have not been established apply with respect to a residential property located in an area of residual risk until the and S. 3193, A bill to make technical correc- under paragraph (2)(A) for the State in which tions to the legal description of certain land the property is located, the standards estab- date on which ownership of the property changes for the first time after the date on to be held in trust for the Barona Band of lished under paragraph (2)(B). Mission Indians, and for other purposes. ‘‘(B) DEMONSTRATION OF LACK OF PRIVATE which such requirements begin to apply to FLOOD INSURANCE.—The Administrator shall areas of residual risk, as determined under Those wishing additional information establish a procedure by which a person section 107(c) of the Flood Insurance Reform may contact the Indian Affairs Com- seeking to purchase flood insurance under and Modernization Act of 2012. mittee at (202) 224–2251. the national flood insurance program for real ‘‘(g) DECERTIFICATION.—Upon decertifica- f property or personal property may dem- tion of any onstrate that there is no private flood insur- SA 2479. Mr. PAUL submitted an PRIVILEGES OF THE FLOOR ance available for the property that meets the applicable standards established under amendment intended to be proposed by Mr. HARKIN. Mr. President, I ask paragraph (2).’’. him to the bill S. 1940, to amend the unanimous consent that Bill National Flood Insurance Act of 1968, McConogha, Lindsey Love, Bryan SA 2477. Mr. MERKLEY (for himself to restore the financial solvency of the Rodriguez, and Tiffany Monreal of my and Ms. LANDRIEU) submitted an flood insurance fund, and for other pur- staff be granted floor privileges for the amendment intended to be proposed by poses; which was ordered to lie on the duration of today’s proceedings. him to the bill S. 1940, to amend the table; as follows: The PRESIDING OFFICER. Without National Flood Insurance Act of 1968, At the appropriate place, insert the fol- objection, it is so ordered. to restore the financial solvency of the lowing: flood insurance fund, and for other pur- SEC. lll. LIFE AT CONCEPTION ACT. f poses; which was ordered to lie on the (a) SHORT TITLE.—This section may be AGRICULTURE REFORM, FOOD, table; as follows: cited as the ‘‘Life at Conception Act’’. AND JOBS ACT OF 2012 At the end of title I, add the following: (b) RIGHT TO LIFE.—To implement equal protection for the right to life of each born SEC. 1ll. LEVEE SYSTEMS; FLOOD CONTROL On Thursday, June 21, 2012, the Sen- STRUCTURES. and preborn human person, and pursuant to ate passed S. 3240, as amended, as fol- (a) CERTIFICATION OF FLOOD CONTROL the duty and authority of the Congress, in- lows: STRUCTURES BY CORPS OF ENGINEERS.—Sec- cluding Congress’ power under article I, section 211 of the Water Resources Development tion 8, to make necessary and proper laws, S. 3240 and Congress’ power under section 5 of the Act of 2000 (31 U.S.C. 6505 note) is amended Be it enacted by the Senate and House of Rep- by adding at the end the following: 14th article of amendment to the Constitu- resentatives of the United States of America in ‘‘(f) CERTIFICATION OR EVALUATION OF tion of the United States, the Congress here- Congress assembled, LEVEE SYSTEMS.—Notwithstanding sub- by declares that the right to life guaranteed sections (b) and (c), the Corps may provide by the Constitution is vested in each human SECTION 1. SHORT TITLE; TABLE OF CONTENTS. specialized or technical services to a State being. (a) IN GENERAL.—This Act may be cited as or local government under section 6505 of (c) DEFINITIONS.—For purposes of this sec- the ‘‘Agriculture Reform, Food, and Jobs Act title 31, United States Code, relating to the tion: of 2012’’. certification or evaluation of a levee system (1) HUMAN PERSON; HUMAN BEING.—The (b) TABLE OF CONTENTS.—The table of con- for purposes of the National Flood Insurance terms ‘‘human person’’ and ‘‘human being’’ tents for this Act is as follows: Program if— include each and every member of the spe- Sec. 1. Short title; table of contents. ‘‘(1) the chief executive of the State or cies homo sapiens at all stages of life, in- Sec. 2. Definition of Secretary. local government submits to the Secretary a cluding, but not limited to, the moment of TITLE I—COMMODITY PROGRAMS written request— fertilization, cloning, and other moment at ‘‘(A) that describes the scope of the serv- which an individual member of the human Subtitle A—Repeals and Reforms ices to be performed; and species comes into being. Sec. 1101. Repeal of direct payments.

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Sec. 1102. Repeal of counter-cyclical pay- PART III—REPEAL OR REAUTHORIZATION OF Subtitle F—Other Conservation Programs ments. OTHER DAIRY-RELATED PROVISIONS Sec. 2501. Conservation of private grazing Sec. 1103. Repeal of average crop revenue Sec. 1471. Repeal of dairy product price sup- land. election program. port and milk income loss con- Sec. 2502. Grassroots source water protec- Sec. 1104. Definitions. tract programs. tion program. Sec. 1105. Agriculture risk coverage. Sec. 1472. Repeal of dairy export incentive Sec. 2503. Voluntary public access and habi- Sec. 1106. Producer agreement required as program. tat incentive program. condition of provision of pay- Sec. 1473. Extension of dairy forward pricing Sec. 2504. Agriculture conservation experi- ments. program. enced services program. Sec. 1107. Period of effectiveness. Sec. 1474. Extension of dairy indemnity pro- Sec. 2505. Small watershed rehabilitation Sec. 1108. Adjusted gross income limitation gram. program. for conservation programs. Sec. 1475. Extension of dairy promotion and Sec. 2506. Terminal lakes assistance. Subtitle B—Marketing Assistance Loans and research program. Subtitle G—Funding and Administration Loan Deficiency Payments Sec. 1476. Extension of Federal Milk Mar- Sec. 2601. Funding. keting Order Review Commis- Sec. 1201. Availability of nonrecourse mar- Sec. 2602. Technical assistance. sion. Sec. 2603. Regional equity. keting assistance loans for loan Sec. 2604. Reservation of funds to provide as- commodities. PART IV—FEDERAL MILK MARKETING ORDER sistance to certain farmers or Sec. 1202. Loan rates for nonrecourse mar- REFORM ranchers for conservation ac- keting assistance loans. Sec. 1481. Federal milk marketing orders. cess. Sec. 1203. Term of loans. PART V—EFFECTIVE DATE Sec. 2605. Annual report on program enroll- Sec. 1204. Repayment of loans. Sec. 1491. Effective date. ments and assistance. Sec. 1205. Loan deficiency payments. Sec. 2606. Administrative requirements for Sec. 1206. Payments in lieu of loan defi- Subtitle E—Supplemental Agricultural Disaster Assistance Programs conservation programs. ciency payments for grazed Sec. 2607. Rulemaking authority. acreage. Sec. 1501. Supplemental agricultural dis- Sec. 2608. Standards for State technical Sec. 1207. Special marketing loan provisions aster assistance programs. committees. for upland cotton. Subtitle F—Administration Sec. 2609. Highly erodible land and wetland Sec. 1208. Special competitive provisions for Sec. 1601. Administration generally. conservation for crop insur- extra long staple cotton. Sec. 1602. Suspension of permanent price ance. Sec. 1209. Availability of recourse loans for support authority. Subtitle H—Repeal of Superseded Program high moisture feed grains and Sec. 1603. Payment limitations. Authorities and Transitional Provisions seed cotton. Sec. 1604. Payments limited to active farm- Sec. 2701. Comprehensive conservation en- Sec. 1210. Adjustments of loans. ers. hancement program. Subtitle C—Sugar Sec. 1605. Adjusted gross income limitation. Sec. 2702. Emergency forestry conservation Sec. 1301. Sugar program. Sec. 1606. Geographically disadvantaged reserve program. farmers and ranchers. Sec. 2703. Wetlands reserve program. Subtitle D—Dairy Sec. 1607. Personal liability of producers for Sec. 2704. Farmland protection program and PART I—DAIRY PRODUCTION MARGIN PROTEC- deficiencies. farm viability program. TION AND DAIRY MARKET STABILIZATION Sec. 1608. Prevention of deceased individuals Sec. 2705. Grassland reserve program. PROGRAMS receiving payments under farm Sec. 2706. Agricultural water enhancement Sec. 1401. Definitions. commodity programs. program. Sec. 1402. Calculation of average feed cost Sec. 1609. Appeals. Sec. 2707. Wildlife habitat incentive pro- and actual dairy production Sec. 1610. Technical corrections. gram. margins. Sec. 1611. Assignment of payments. Sec. 2708. Great Lakes basin program. Sec. 1612. Tracking of benefits. Sec. 2709. Chesapeake Bay watershed pro- SUBPART A—DAIRY PRODUCTION MARGIN Sec. 1613. Signature authority. gram. PROTECTION PROGRAM Sec. 1614. Implementation. Sec. 2710. Cooperative conservation partner- Sec. 1411. Establishment of dairy production ship initiative. TITLE II—CONSERVATION margin protection program. Sec. 2711. Environmental easement program. Sec. 1412. Participation of dairy operations Subtitle A—Conservation Reserve Program Sec. 2712. Technical amendments. in production margin protec- Sec. 2001. Extension and enrollment require- TITLE III—TRADE tion program. ments of conservation reserve Subtitle A—Food for Peace Act program. Sec. 1413. Production history of partici- Sec. 3001. Set-aside for support for organiza- Sec. 2002. Farmable wetland program. pating dairy operations. tions through which non- Sec. 2003. Duties of owners and operators. Sec. 1414. Basic production margin protec- emergency assistance is pro- Sec. 2004. Duties of the Secretary. tion. vided. Sec. 2005. Payments. Sec. 1415. Supplemental production margin Sec. 3002. Food aid quality. protection. Sec. 2006. Contract requirements. Sec. 3003. Minimum levels of assistance. Sec. 1416. Effect of failure to pay adminis- Sec. 2007. Conversion of land subject to con- Sec. 3004. Reauthorization of Food Aid Con- tration fees or premiums. tract to other conserving uses. sultative Group. Sec. 2008. Effective date. SUBPART B—DAIRY MARKET STABILIZATION Sec. 3005. Oversight, monitoring, and eval- PROGRAM Subtitle B—Conservation Stewardship uation of Food for Peace Act Program Sec. 1431. Establishment of dairy market programs. Sec. 3006. Assistance for stockpiling and stabilization program. Sec. 2101. Conservation stewardship pro- rapid transportation, delivery, Sec. 1432. Threshold for implementation and gram. and distribution of shelf-stable reduction in dairy payments. Subtitle C—Environmental Quality prepackaged foods. Sec. 1433. Milk marketings information. Incentives Program Sec. 3007. Limitation on total volume of Sec. 1434. Calculation and collection of re- Sec. 2201. Purposes. commodities monetized. duced dairy operation pay- Sec. 2202. Definitions. Sec. 3008. Flexibility. ments. Sec. 2203. Establishment and administra- Sec. 3009. Procurement, transportation, Sec. 1435. Remitting funds to the Secretary tion. testing, and storage of agricul- and use of funds. Sec. 2204. Evaluation of applications. tural commodities for Sec. 1436. Suspension of reduced payment re- Sec. 2205. Duties of producers. prepositioning in the United quirement. Sec. 2206. Limitation on payments. States and foreign countries. Sec. 1437. Enforcement. Sec. 2207. Conservation innovation grants Sec. 3010. Deadline for agreements to fi- Sec. 1438. Audit requirements. and payments. nance sales or to provide other Sec. 1439. Study; report. Sec. 2208. Effective date. assistance. SUBPART C—ADMINISTRATION Subtitle D—Agricultural Conservation Sec. 3011. Minimum level of nonemergency Sec. 1451. Duration. Easement Program food assistance. Sec. 1452. Administration and enforcement. Sec. 2301. Agricultural Conservation Ease- Sec. 3012. Coordination of foreign assistance ment Program. programs report. PART II—DAIRY MARKET TRANSPARENCY Sec. 3013. Micronutrient fortification pro- Sec. 1461. Dairy product mandatory report- Subtitle E—Regional Conservation grams. ing. Partnership Program Sec. 3014. John Ogonowski and Doug Bereu- Sec. 1462. Federal milk marketing order in- Sec. 2401. Regional Conservation Partner- ter Farmer-to-Farmer Pro- formation. ship Program. gram.

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Subtitle B—Miscellaneous Subtitle C—Other Agricultural Trade Laws Sec. 7205. National Genetics Resources Pro- Sec. 3201. Food for Progress Act of 1985. Sec. 5101. State agricultural mediation program. Sec. 3202. Bill Emerson Humanitarian Trust. grams. Sec. 7206. National Agricultural Weather In- Sec. 3203. Promotion of agricultural exports Sec. 5102. Loans to purchasers of highly formation System. to emerging markets. fractionated land. Sec. 7207. High-priority research and exten- Sec. 3204. McGovern-Dole International Sec. 5103. Removal of duplicative appraisals. sion initiatives. Food for Education and Child TITLE VI—RURAL DEVELOPMENT Sec. 7208. Organic agriculture research and Nutrition Program. Subtitle A—Reorganization of the Consoli- extension initiative. Sec. 3205. Technical assistance for specialty dated Farm and Rural Development Act Sec. 7209. Farm business management. crops. Sec. 6001. Reorganization of the Consoli- Sec. 7210. Regional centers of excellence. Sec. 3206. Global Crop Diversity Trust. dated Farm and Rural Develop- Sec. 7211. Assistive technology program for Sec. 3207. Local and regional food aid pro- ment Act. farmers with disabilities. curement projects. Sec. 6002. Conforming amendments. Sec. 7212. National rural information center clearinghouse. Sec. 3208. Donald Payne Horn of Africa food Subtitle B—Rural Electrification resilience program. Subtitle C—Agricultural Research, Sec. 6101. Definition of rural area. Sec. 3209. Agricultural trade enhancement Sec. 6102. Guarantees for bonds and notes Extension, and Education Reform Act of 1998 study. issued for electrification or Sec. 7301. Relevance and merit of agricul- TITLE IV—NUTRITION telephone purposes. tural research, extension, and Subtitle A—Supplemental Nutrition Sec. 6103. Expansion of 911 access. education funded by the De- Assistance Program Sec. 6104. Access to broadband telecommuni- partment. Sec. 7302. Integrated research, education, Sec. 4001. Food distribution program on In- cations services in rural areas. and extension competitive dian reservations. Subtitle C—Miscellaneous grants program. Sec. 4002. Standard utility allowances based Sec. 6201. Distance learning and telemedi- Sec. 7303. Support for research regarding on the receipt of energy assist- cine. diseases of wheat, triticale, and ance payments. Sec. 6202. Rural energy savings program. barley caused by Fusarium Sec. 4003. Eligibility disqualifications. Sec. 6203. Funding of pending rural develop- graminearum or by Tilletia Sec. 4004. Ending supplemental nutrition as- ment loan and grant applica- indica. sistance program benefits for tions. Sec. 7304. Grants for youth organizations. lottery or gambling winners. Sec. 6204. Study of rural transportation issues. Sec. 7305. Specialty crop research initiative. Sec. 4005. Retail food stores. Sec. 7306. Food animal residue avoidance Sec. 4006. Improving security of food assist- Sec. 6205. Agricultural transportation policy. database program. ance. Sec. 7307. Office of pest management policy. TITLE VII—RESEARCH, EXTENSION, AND Sec. 4007. Technology modernization for re- Sec. 7308. Authorization of regional inte- RELATED MATTERS tail food stores. grated pest management cen- Sec. 4008. Use of benefits for purchase of Subtitle A—National Agricultural Research, ters. community-supported agri- Extension, and Teaching Policy Act of 1977 Subtitle D—Other Laws culture share. Sec. 7101. National Agricultural Research, Sec. 4009. Restaurant meals program. Extension, Education, and Eco- Sec. 7401. Critical Agricultural Materials Sec. 4010. Quality control error rate deter- nomics Advisory Board. Act. mination. Sec. 7102. Specialty crop committee. Sec. 7402. Equity in Educational Land-Grant Sec. 4011. Performance bonus payments. Sec. 7103. Veterinary services grant pro- Status Act of 1994. Sec. 4012. Authorization of appropriations. gram. Sec. 7403. Research Facilities Act. Sec. 4013. Assistance for community food Sec. 7104. Grants and fellowships for food Sec. 7404. Competitive, Special, and Facili- projects. and agriculture sciences edu- ties Research Grant Act. Sec. 4014. Emergency food assistance. cation. Sec. 7405. Enhanced use lease authority pilot Sec. 4015. Nutrition education. Sec. 7105. Agricultural and food policy re- program under Department of Sec. 4016. Retail food store and recipient search centers. Agriculture Reorganization Act trafficking. Sec. 7106. Education grants to Alaska Native of 1994. Sec. 4017. Technical and conforming amend- serving institutions and Native Sec. 7406. Renewable Resources Extension ments. Hawaiian serving institutions. Act of 1978. Sec. 7107. Nutrition education program. Sec. 7407. National Aquaculture Act of 1980. Subtitle B—Commodity Distribution Sec. 7408. Beginning farmer and rancher de- Programs Sec. 7108. Continuing animal health and disease research programs. velopment program under Farm Sec. 4101. Commodity distribution program. Sec. 7109. Grants to upgrade agricultural Security and Rural Investment Sec. 4102. Commodity supplemental food and food sciences facilities at Act of 2002. program. 1890 land-grant colleges, includ- Subtitle E—Food, Conservation, and Energy Sec. 4103. Distribution of surplus commod- ing Tuskegee University. Act of 2008 ities to special nutrition Sec. 7110. Grants to upgrade agricultural PART I—AGRICULTURAL SECURITY projects. and food sciences facilities and Sec. 4104. Technical and conforming amend- equipment at insular area land- Sec. 7501. Agricultural biosecurity commu- ments. grant institutions. nication center. Subtitle C—Miscellaneous Sec. 7111. Hispanic-serving institutions. Sec. 7502. Assistance to build local capacity in agricultural biosecurity Sec. 4201. Purchase of fresh fruits and vege- Sec. 7112. Competitive grants for international agricultural science planning, preparation, and re- tables for distribution to sponse. schools and service institu- and education programs. Sec. 7113. University research. Sec. 7503. Research and development of agri- tions. Sec. 7114. Extension service. cultural countermeasures. Sec. 4202. Seniors farmers’ market nutrition Sec. 7115. Supplemental and alternative Sec. 7504. Agricultural biosecurity grant program. crops. program. Sec. 4203. Nutrition information and aware- Sec. 7116. Capacity building grants for PART II—MISCELLANEOUS ness pilot program. NLGCA institutions. Sec. 4204. Whole grain products. Sec. 7511. Grazinglands research laboratory. Sec. 7117. Aquaculture assistance programs. Sec. 7512. Budget submission and funding. Sec. 4205. Hunger-free communities. Sec. 7118. Rangeland research programs. Sec. 7513. Natural products research pro- Sec. 4206. Healthy Food Financing Initia- Sec. 7119. Special authorization for biosecu- gram. tive. rity planning and response. Sec. 4207. Pulse crop products. Sec. 7120. Distance education and resident Sec. 7514. Sun grant program. Sec. 4208. Dietary Guidelines for Americans. instruction grants program for Subtitle F—Miscellaneous Sec. 4209. Purchases of locally produced insular area institutions of Sec. 7601. Foundation for Food and Agri- foods. higher education. culture Research.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0655 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4486 CONGRESSIONAL RECORD — SENATE June 25, 2012 Sec. 7602. Objective and scholarly agricul- TITLE XI—CROP INSURANCE Sec. 12209. Sense of the Senate. tural and food law research and Sec. 11001. Supplemental coverage option. Sec. 12210. Acer Access and Development information. Sec. 11002. Premium amounts for cata- Program. TITLE VIII—FORESTRY strophic risk protection. Sec. 12211. Definition of rural area for purposes of the Housing Act of Subtitle A—Repeal of Certain Forestry Sec. 11003. Permanent enterprise unit. 1949. Programs Sec. 11004. Enterprise units for irrigated and nonirrigated crops. Sec. 12212. Animal welfare. Sec. 8001. Forest land enhancement pro- Sec. 11005. Data collection. Sec. 12213. Prohibition on attending an ani- gram. Sec. 11006. Adjustment in actual production mal fight or causing a minor to Sec. 8002. Watershed forestry assistance pro- history to establish insurable attend an animal fight; enforce- gram. yields. ment of animal fighting provi- Sec. 8003. Expired cooperative national for- Sec. 11007. Submission and review of poli- sions. est products marketing pro- cies. Sec. 12214. Prohibiting use of presidential gram. Sec. 11008. Board review and approval. election campaign funds for Sec. 8004. Hispanic-serving institution agri- Sec. 11009. Consultation. party conventions. cultural land national re- Sec. 11010. Budget limitations on renegoti- Sec. 12215. Reports on effects of defense and sources leadership program. ation of the standard reinsur- nondefense budget sequestra- Sec. 8005. Tribal watershed forestry assistance agreement. tion. ance program. Sec. 11011. Stacked income protection plan SEC. 2. DEFINITION OF SECRETARY. Subtitle B—Reauthorization of Cooperative for producers of upland cotton. In this Act, the term ‘‘Secretary’’ means Forestry Assistance Act of 1978 Programs Sec. 11012. Peanut revenue crop insurance. the Secretary of Agriculture. Sec. 8101. State-wide assessment and strate- Sec. 11013. Authority to correct errors. TITLE I—COMMODITY PROGRAMS gies for forest resources. Sec. 11014. Implementation. Subtitle A—Repeals and Reforms Sec. 8102. Forest stewardship program. Sec. 11015. Approval of costs for research Sec. 8103. Forest Legacy Program. and development. SEC. 1101. REPEAL OF DIRECT PAYMENTS. Sec. 8104. Community forest and open space Sec. 11016. Whole farm risk management in- (a) REPEAL.—Sections 1103 and 1303 of the conservation program. surance. Food, Conservation, and Energy Act of 2008 Sec. 8105. Urban and community forestry as- Sec. 11017. Study of food safety insurance. (7 U.S.C. 8713, 8753) are repealed. sistance. Sec. 11018. Crop insurance for livestock. (b) CONTINUED APPLICATION FOR 2012 CROP Subtitle C—Reauthorization of Other Sec. 11019. Margin coverage for catfish. YEAR.—Sections 1103 and 1303 of the Food, Forestry-related Laws Sec. 11020. Poultry business disruption in- Conservation, and Energy Act of 2008 (7 surance policy. U.S.C. 8713, 8753), as in effect on the day be- Sec. 8201. Rural revitalization technologies. Sec. 11021. Crop insurance for organic crops. fore the date of enactment of this Act, shall Sec. 8202. Office of International Forestry. Sec. 11022. Research and development. continue to apply through the 2012 crop year Sec. 8203. Insect infestations and related dis- Sec. 11023. Pilot programs. with respect to all covered commodities (as eases. Sec. 11024. Index-based weather insurance defined in section 1001 of that Act (7 U.S.C. Sec. 8204. Stewardship end result con- pilot program. 8702)) (except pulse crops) and peanuts on a tracting projects. Sec. 11025. Enhancing producer self-help Sec. 8205. Healthy forests reserve program. farm. through farm financial SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAY- Subtitle D—Miscellaneous Provisions benchmarking. MENTS. Sec. 8301. McIntire-Stennis Cooperative For- Sec. 11026. Beginning farmer and rancher (a) REPEAL.—Sections 1104 and 1304 of the estry Act. provisions. Food, Conservation, and Energy Act of 2008 Sec. 8302. Revision of strategic plan for for- Sec. 11027. Agricultural management assist- (7 U.S.C. 8714, 8754) are repealed. est inventory and analysis. ance, risk management edu- (b) CONTINUED APPLICATION FOR 2012 CROP TITLE IX—ENERGY cation, and organic certifi- YEAR.—Sections 1104 and 1304 of the Food, Sec. 9001. Definition of renewable chemical. cation cost share assistance. Conservation, and Energy Act of 2008 (7 Sec. 9002. Biobased markets program. Sec. 11028. Crop production on native sod. U.S.C. 8714, 8754), as in effect on the day be- Sec. 9003. Biorefinery, renewable chemical, Sec. 11029. Technical amendments. fore the date of enactment of this Act, shall and biobased product manufac- Sec. 11030. Greater accessibility for crop in- continue to apply through the 2012 crop year turing assistance. surance. with respect to all covered commodities (as Sec. 9004. Repeal of repowering assistance Sec. 11031. GAO crop insurance fraud report. defined in section 1001 of that Act (7 U.S.C. program and transfer of re- Sec. 11032. Limitation on premium subsidy 8702)) and peanuts on a farm. maining funds. based on average adjusted gross SEC. 1103. REPEAL OF AVERAGE CROP REVENUE Sec. 9005. Bioenergy program for advanced income. ELECTION PROGRAM. biofuels. TITLE XII—MISCELLANEOUS (a) REPEAL.—Section 1105 of the Food, Con- Sec. 9006. Biodiesel fuel education program. Subtitle A—Socially Disadvantaged servation, and Energy Act of 2008 (7 U.S.C. Sec. 9007. Rural Energy for America Pro- Producers and Limited Resource Producers 8715) is repealed. gram. Sec. 12001. Outreach and assistance for so- (b) CONTINUED APPLICATION FOR 2012 CROP Sec. 9008. Biomass research and develop- cially disadvantaged farmers YEAR.—Section 1105 of the Food, Conserva- ment. and ranchers and veteran farm- tion, and Energy Act of 2008 (7 U.S.C. 8715), Sec. 9009. Feedstock flexibility program for ers and ranchers. as in effect on the day before the date of en- bioenergy producers. Sec. 12002. Office of Advocacy and Outreach. actment of this Act, shall continue to apply Sec. 9010. Biomass Crop Assistance Program. through the 2012 crop year with respect to all Sec. 9011. Repeal of forest biomass for en- Subtitle B—Livestock covered commodities (as defined in section ergy. Sec. 12101. Wildlife reservoir zoonotic dis- 1001 of that Act (7 U.S.C. 8702)) and peanuts Sec. 9012. Community wood energy program. ease initiative. on a farm for which the irrevocable election Sec. 9013. Repeal of renewable fertilizer Sec. 12102. Trichinae certification program. under section 1105 of that Act is made before study. Sec. 12103. National Aquatic Animal Health the date of enactment of this Act. TITLE X—HORTICULTURE Plan. SEC. 1104. DEFINITIONS. Sec. 12104. Sheep production and marketing Sec. 10001. Specialty crops market news al- In this subtitle, subtitle B, and subtitle F: grant program. location. (1) ACTUAL CROP REVENUE.—The term ‘‘ac- Sec. 12105. Feral swine eradication pilot pro- Sec. 10002. Repeal of grant program to im- tual crop revenue’’, with respect to a covered gram. prove movement of specialty commodity for a crop year, means the crops. Subtitle C—Other Miscellaneous Provisions amount determined by the Secretary under Sec. 10003. Farmers market and local food Sec. 12201. Military veterans agricultural li- section 1105(c)(3). promotion program. aison. (2) AGRICULTURE RISK COVERAGE GUAR- Sec. 10004. Study on local food production Sec. 12202. Information gathering. ANTEE.—The term ‘‘agriculture risk coverage and program evaluation. Sec. 12203. Grants to improve supply, sta- guarantee’’, with respect to a covered com- Sec. 10005. Organic agriculture. bility, safety, and training of modity for a crop year, means the amount Sec. 10006. Food safety education initiatives. agricultural labor force. determined by the Secretary under section Sec. 10007. Coordinated plant management Sec. 12204. Noninsured crop assistance pro- 1105(c)(4). program. gram. (3) AGRICULTURE RISK COVERAGE PAYMENT.— Sec. 10008. Specialty crop block grants. Sec. 12205. Regional economic and infra- The term ‘‘agriculture risk coverage pay- Sec. 10009. Recordkeeping, investigations, structure development. ment’’ means a payment under section and enforcement. Sec. 12206. Canada geese removal. 1105(c). Sec. 10010. Report on honey. Sec. 12207. Office of Tribal Relations. (4) AVERAGE INDIVIDUAL YIELD.—The term Sec. 10011. Effective date. Sec. 12208. Repeal of duplicative program. ‘‘average individual yield’’ means the yield

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reported by a producer for purposes of sub- (D) EXCLUSION.—The term ‘‘eligible acres’’ applicable premiums for comparable inter- title A of the Federal Crop Insurance Act (7 does not include any crop subsequently national qualities. U.S.C. 1501 et seq.), to the maximum extent planted during the same crop year on the SEC. 1105. AGRICULTURE RISK COVERAGE. practicable. same land for which the first crop is eligible (a) PAYMENTS REQUIRED.—If the Secretary (5) COUNTY COVERAGE.—For the purposes of for payments under this subtitle, unless the determines that payments are required agriculture risk coverage under section 1105, crop was planted in an area approved for under subsection (c), the Secretary shall the term ‘‘county coverage’’ means coverage double cropping, as determined by the Sec- make payments for each covered commodity determined using the total quantity of all retary. available to producers in accordance with acreage in a county of the covered com- (8) EXTRA LONG STAPLE COTTON.—The term this section. modity that is planted or prevented from ‘‘extra long staple cotton’’ means cotton (b) COVERAGE ELECTION.— that— being planted for harvest by a producer with (1) IN GENERAL.—For the period of crop the yield determined by the average county (A) is produced from pure strain varieties years 2013 through 2017, the producers shall yield described in subsection (c) of that sec- of the Barbadense species or any hybrid of make a 1-time, irrevocable election to re- tion. the species, or other similar types of extra ceive— long staple cotton, designated by the Sec- (6) COVERED COMMODITY.— (A) individual coverage under this section, retary, having characteristics needed for (A) IN GENERAL.—The term ‘‘covered com- as determined by the Secretary; or various end uses for which United States up- modity’’ means wheat, corn, grain sorghum, (B) in the case of a county with sufficient land cotton is not suitable and grown in irri- barley, oats, long grain rice, medium grain data (as determined by the Secretary), coun- gated cotton-growing regions of the United rice, pulse crops, soybeans, other oilseeds, ty coverage under this section. States designated by the Secretary or other and peanuts. (2) EFFECT OF ELECTION.—The election areas designated by the Secretary as suitable (B) POPCORN.—The Secretary— made under paragraph (1) shall be binding on for the production of the varieties or types; (i) shall study the feasibility of including the producers making the election, regard- and popcorn as a covered commodity by 2014; and less of covered commodities planted, and ap- (B) is ginned on a roller-type gin or, if au- (ii) if the Secretary determines it to be fea- plicable to all acres under the operational thorized by the Secretary, ginned on another sible, shall designate popcorn as a covered control of the producers, in a manner that— type gin for experimental purposes. commodity. (A) acres brought under the operational (9) INDIVIDUAL COVERAGE.—For purposes of (7) ELIGIBLE ACRES.— agriculture risk coverage under section 1105, control of the producers after the election (A) IN GENERAL.—Except as provided in the term ‘‘individual coverage’’ means cov- are included; and subparagraphs (B) through (D), the term ‘‘el- erage determined using the total quantity of (B) acres no longer under the operational igible acres’’ means all acres planted or pre- all acreage in a county of the covered com- control of the producers after the election vented from being planted to all covered modity that is planted or prevented from are no longer subject to the election of the commodities on a farm in any crop year. being planted for harvest by a producer with producers but become subject to the election (B) MAXIMUM.—Except as provided in (C), the yield determined by the average indi- of the subsequent producers. the total quantity of eligible acres on a farm vidual yield of the producer described in sub- (3) DUTIES OF THE SECRETARY.—The Sec- determined under subparagraph (A) shall not section (c) of that section. retary shall ensure that producers are pre- exceed the average total acres planted or (10) MEDIUM GRAIN RICE.—The term ‘‘me- cluded from taking any action, including re- prevented from being planted to covered dium grain rice’’ includes short grain rice. constitution, transfer, or other similar ac- commodities and upland cotton on the farm (11) MIDSEASON PRICE.—The term tion, that would have the effect of altering for the 2009 through 2012 crop years, as deter- ‘‘midseason price’’ means the applicable na- or reversing the election made under para- mined by the Secretary. tional average market price received by pro- graph (1). (C) ADJUSTMENT.—The Secretary shall producers for the first 5 months of the applica- (c) AGRICULTURE RISK COVERAGE.— vide for an adjustment, as appropriate, in ble marketing year, as determined by the (1) PAYMENTS.—The Secretary shall make the eligible acres for covered commodities Secretary. agriculture risk coverage payments avail- for a farm if any of the following cir- (12) OTHER OILSEED.—The term ‘‘other oil- able under this subsection for each of the cumstances occurs: seed’’ means a crop of sunflower seed, 2013 through 2017 crop years if the Secretary (i) If a conservation reserve contract for a rapeseed, canola, safflower, flaxseed, mus- determines that— farm in a county entered into under section tard seed, crambe, sesame seed, or any oil- (A) the actual crop revenue for the crop 1231 of the Food Security Act of 1985 (16 seed designated by the Secretary. year for the covered commodity; is less than U.S.C. 3831) expires or is voluntarily termi- (13) PRODUCER.— (B) the agriculture risk coverage guarantee nated or cropland is released from coverage (A) IN GENERAL.—The term ‘‘producer’’ for the crop year for the covered commodity. under a conservation reserve contract, the means an owner, operator, landlord, tenant, (2) TIME FOR PAYMENTS.—If the Secretary Secretary shall provide for an adjustment, as or sharecropper that shares in the risk of determines under this subsection that agri- appropriate, in the eligible acres for the producing a crop and is entitled to share in culture risk coverage payments are required farm to a total quantity that is the higher the crop available for marketing from the to be made for the covered commodity, the of— farm, or would have shared had the crop been agriculture risk coverage payments shall be (I) the total base acreage for the farm, less produced. made as soon as practicable thereafter. any upland cotton base acreage, that was (B) HYBRID SEED.—In determining whether (3) ACTUAL CROP REVENUE.—The amount of suspended during the conservation reserve a grower of hybrid seed is a producer, the the actual crop revenue for a crop year of a contract; or Secretary shall— covered commodity shall be equal to the (II) the product obtained by multiplying— (i) not take into consideration the exist- product obtained by multiplying— (aa) the average proportion that— ence of a hybrid seed contract; and (A)(i) in the case of individual coverage, (AA) the total number of acres planted to (ii) ensure that program requirements do the actual average individual yield for the covered commodities and upland cotton in not adversely affect the ability of the grower covered commodity, as determined by the the county for crop years 2009 through 2012; to receive a payment under this title. Secretary; or bears to (14) PULSE CROP.—The term ‘‘pulse crop’’ (ii) in the case of county coverage, the ac- (BB) the total number of all acres of cov- means dry peas, lentils, small chickpeas, and tual average yield for the county for the covered commodities, grassland, and upland cot- large chickpeas. ered commodity, as determined by the Sec- ton acres in the county for the same crop (15) STATE.—The term ‘‘State’’ means— retary; and years; by (A) a State; (B) the higher of— (bb) the total acres for which coverage has (B) the District of Columbia; (i) the midseason price; or expired, voluntarily terminated, or been re- (C) the Commonwealth of Puerto Rico; and (ii) if applicable, the national marketing leased under the conservation reserve con- (D) any other territory or possession of the assistance loan rate for the covered com- tract. United States. modity under subtitle B. (ii) The producer has eligible oilseed acre- (16) TRANSITIONAL YIELD.—The term ‘‘tran- (4) AGRICULTURE RISK COVERAGE GUAR- age as the result of the Secretary desig- sitional yield’’ has the meaning given the ANTEE.— nating additional oilseeds, which shall be de- term in section 502(b) of the Federal Crop In- (A) IN GENERAL.—The agriculture risk cov- termined in the same manner as eligible oil- surance Act (7 U.S.C. 1502(b)). erage guarantee for a crop year for a covered seed acreage under section 1101(a)(1)(D) of (17) UNITED STATES.—The term ‘‘United commodity shall equal 89 percent of the the Food, Conservation, and Energy Act of States’’, when used in a geographical sense, benchmark revenue. 2008 (7 U.S.C. 8711(a)(1)(D)). means all of the States. (B) BENCHMARK REVENUE.— (iii) The producer has any acreage not (18) UNITED STATES PREMIUM FACTOR.—The (i) IN GENERAL.—The benchmark revenue cropped during the 2009 through 2012 crop term ‘‘United States Premium Factor’’ shall be the product obtained by multi- years, but placed into an established rota- means the percentage by which the dif- plying— tion practice for the purposes of enriching ference in the United States loan schedule (I)(aa) in the case of individual coverage, land or conserving moisture for subsequent premiums for Strict Middling (SM) 11⁄8-inch subject to clause (ii), the average individual crop years, including summer fallow, as de- upland cotton and for Middling (M) 13⁄32-inch yield, as determined by the Secretary, for termined by the Secretary. upland cotton exceeds the difference in the the most recent 5 crop years, excluding each

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4488 CONGRESSIONAL RECORD — SENATE June 25, 2012 of the crop years with the highest and lowest year for the covered commodity on the basis report unless the producers on the farm yields; or of the yield history of representative farms knowingly and willfully falsified the acreage (bb) in the case of county coverage, the av- in the State, region, or crop reporting dis- or production report. erage county yield, as determined by the trict, as determined by the Secretary, if the (4) DATA REPORTING.—To the maximum ex- Secretary, for the most recent 5 crop years, Secretary cannot establish the yield as de- tent practicable, the Secretary shall use excluding each of the crop years with the termined under paragraph (3)(A)(ii) or data reported by the producer pursuant to highest and lowest yields; and (4)(B)(i) or if the yield determined under requirements under the Federal Crop Insur- (II) subject to clause (iii), the average na- paragraph (3)(A)(ii) or (4) is an unrepresenta- ance Act (7 U.S.C. 1501 et seq.) to meet the tional marketing year average price for the tive average yield for the covered com- obligations described in paragraphs (1) and most recent 5 crop years, excluding each of modity as determined by the Secretary. (2), without additional submissions to the the crop years with the highest and lowest SEC. 1106. PRODUCER AGREEMENT REQUIRED AS Department. prices. CONDITION OF PROVISION OF PAY- (d) TENANTS AND SHARECROPPERS.—In car- (ii) USE OF TRANSITIONAL YIELDS.—If the MENTS. rying out this subtitle, the Secretary shall yield determined under clause (i)(I)(aa)— (a) COMPLIANCE WITH CERTAIN REQUIRE- provide adequate safeguards to protect the (I) for the 2012 crop year or any prior crop MENTS.— interests of tenants and sharecroppers. year, is less than 60 percent of the applicable (1) REQUIREMENTS.—Before the producers SEC. 1107. PERIOD OF EFFECTIVENESS. transitional yield, the Secretary shall use 60 on a farm may receive agriculture risk cov- percent of the applicable transitional yield erage payments, the producers shall agree, Sections 1104 through 1106 shall be effec- for that crop year; and during the crop year for which the payments tive beginning with the 2013 crop year of (II) for the 2013 crop year and any subse- are made and in exchange for the payments— each covered commodity through the 2017 quent crop year, is less than 70 percent of the (A) to comply with applicable conservation crop year. applicable transitional yield, the Secretary requirements under subtitle B of title XII of SEC. 1108. ADJUSTED GROSS INCOME LIMITA- shall use 70 percent of the applicable transi- the Food Security Act of 1985 (16 U.S.C. 3811 TION FOR CONSERVATION PRO- tional yield for that crop year. et seq.); GRAMS. (iii) SPECIAL RULE FOR RICE AND PEANUTS.— (B) to comply with applicable wetland pro- Section 1001D(b)(2)(A) of the Food Security If the national marketing year average price tection requirements under subtitle C of Act of 1985 (7 U.S.C. 1308–3a(b)(2)(A)) is under clause (i)(II) for any of the applicable title XII of that Act (16 U.S.C. 3821 et seq.); amended— crop years is lower than the price for the (C) to use the land on the farm for an agri- (1) by striking ‘‘LIMITS.—’’ and all that fol- covered commodity listed below, the Sec- cultural or conserving use in a quantity lows through ‘‘clause (ii),’’ and inserting retary shall use the following price for that equal to the attributable eligible acres of the ‘‘LIMITS.—Notwithstanding any other provi- crop year: farm, and not for a nonagricultural commer- sion of law,’’; and (I) For long grain rice, $13.00 per hundred- cial, industrial, or residential use, as deter- (2) by striking clause (ii). mined by the Secretary; and weight. Subtitle B—Marketing Assistance Loans and (D) to effectively control noxious weeds (II) For medium grain rice, $13.00 per hun- Loan Deficiency Payments dredweight. and otherwise maintain the land in accord- (III) For peanuts, $530.00 per ton. ance with sound agricultural practices, as SEC. 1201. AVAILABILITY OF NONRECOURSE MAR- KETING ASSISTANCE LOANS FOR (5) PAYMENT RATE.—The payment rate for determined by the Secretary, if the agricul- LOAN COMMODITIES. each covered commodity shall be equal to tural or conserving use involves the noncul- the lesser of— tivation of any portion of the land referred (a) DEFINITION OF LOAN COMMODITY.—In (A) the amount that— to in subparagraph (C). this subtitle, the term ‘‘loan commodity’’ means wheat, corn, grain sorghum, barley, (i) the agriculture risk coverage guarantee (2) COMPLIANCE.—The Secretary may issue for the covered commodity; exceeds such rules as the Secretary considers nec- oats, upland cotton, extra long staple cotton, (ii) the actual crop revenue for the crop essary to ensure producer compliance with long grain rice, medium grain rice, peanuts, year of the covered commodity; or the requirements of paragraph (1). soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, len- (B) 10 percent of the benchmark revenue (3) MODIFICATION.—At the request of the for the crop year of the covered commodity. transferee or owner, the Secretary may mod- tils, small chickpeas, and large chickpeas. (6) PAYMENT AMOUNT.—If agriculture risk ify the requirements of this subsection if the (b) NONRECOURSE LOANS AVAILABLE.— coverage payments under this subsection are modifications are consistent with the objec- (1) IN GENERAL.—For each of the 2013 required to be paid for any of the 2013 tives of this subsection, as determined by the through 2017 crops of each loan commodity, through 2017 crop years of a covered com- Secretary. the Secretary shall make available to pro- modity, the amount of the agriculture risk (b) TRANSFER OR CHANGE OF INTEREST IN ducers on a farm nonrecourse marketing as- coverage payment for the crop year shall be FARM.— sistance loans for loan commodities pro- equal to the product obtained by multi- (1) TERMINATION.— duced on the farm. plying— (A) IN GENERAL.—Except as provided in (2) TERMS AND CONDITIONS.—The marketing (A) the payment rate under paragraph (5); paragraph (2), a transfer of (or change in) the assistance loans shall be made under terms and interest of the producers on a farm for which and conditions that are prescribed by the (B)(i) in the case of individual coverage the agriculture risk coverage payments are Secretary and at the loan rate established sum of— made shall result in the termination of the under section 1202 for the loan commodity. (I) 65 percent of the planted eligible acres agriculture risk coverage payments, unless (c) ELIGIBLE PRODUCTION.—The producers of the covered commodity; and the transferee or owner of the acreage agrees on a farm shall be eligible for a marketing (II) 45 percent of the eligible acres that to assume all obligations under subsection assistance loan under subsection (b) for any were prevented from being planted to the (a). quantity of a loan commodity produced on covered commodity; or (B) EFFECTIVE DATE.—The termination the farm. (ii) in the case of county coverage— shall take effect on the date determined by (d) COMPLIANCE WITH CONSERVATION AND (I) 80 percent of the planted eligible acres the Secretary. WETLANDS REQUIREMENTS.— of the covered commodity; and (2) EXCEPTION.—If a producer entitled to an (1) REQUIREMENTS.—Before the producers (II) 45 percent of the eligible acres that agriculture risk coverage payment dies, be- on a farm may receive a marketing assist- were prevented from being planted to the comes incompetent, or is otherwise unable to ance loan or any other payment or benefit covered commodity. receive the payment, the Secretary shall under this subtitle, the producers shall (7) DUTIES OF THE SECRETARY.—In carrying make the payment, in accordance with rules agree, for the crop year for which the pay- out the program under this subsection, the issued by the Secretary. ments are made and in exchange for the pay- Secretary shall— (c) REPORTS.— ments— (A) to the maximum extent practicable, (1) ACREAGE REPORTS.—As a condition on (A) to comply with applicable conservation use all available information and analysis to the receipt of any benefits under this sub- requirements under subtitle B of title XII of check for anomalies in the determination of title or subtitle B, the Secretary shall re- the Food Security Act of 1985 (16 U.S.C. 3811 payments under the program; quire producers on a farm to submit to the et seq.); (B) to the maximum extent practicable, Secretary annual acreage reports with re- (B) to comply with applicable wetland pro- calculate a separate actual crop revenue and spect to all cropland on the farm. tection requirements under subtitle C of agriculture risk coverage guarantee for irri- (2) PRODUCTION REPORTS.—As a condition title XII of that Act (16 U.S.C. 3821 et seq.); gated and nonirrigated covered commodities; on the receipt of any benefits under section (C) to use the land on the farm for an agri- (C) differentiate by type or class the na- 1105, the Secretary shall require producers cultural or conserving use in a quantity tional average price of— on a farm to submit to the Secretary annual equal to the attributable eligible acres of the (i) sunflower seeds; production reports with respect to all cov- farm, and not for a nonagricultural commer- (ii) barley, using malting barley values; ered commodities produced on the farm. cial, industrial, or residential use, as deter- and (3) PENALTIES.—No penalty with respect to mined by the Secretary; and (iii) wheat; and benefits under this subtitle or subtitle B (D) to effectively control noxious weeds (D) assign a yield for each acre planted or shall be assessed against the producers on a and otherwise maintain the land in accord- prevented from being planted for the crop farm for an inaccurate acreage or production ance with sound agricultural practices, as

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4489 determined by the Secretary, if the agricul- vailing world price for the 2 immediately (C) minimize the cost incurred by the Fed- tural or conserving use involves the noncul- preceding marketing years, as determined by eral Government in storing the commodity; tivation of any portion of the land referred the Secretary and announced October 1 pre- (D) allow the commodity produced in the to in subparagraph (C). ceding the next domestic plantings, but in no United States to be marketed freely and (2) COMPLIANCE.—The Secretary may issue case less than $0.47 per pound or more than competitively, both domestically and inter- such rules as the Secretary considers nec- $0.52 per pound. nationally; and essary to ensure producer compliance with (7) In the case of extra long staple cotton, (E) minimize discrepancies in marketing paragraph (1). $0.7977 per pound. loan benefits across State boundaries and (3) MODIFICATION.—At the request of a (8) In the case of long grain rice, $6.50 per across county boundaries. transferee or owner, the Secretary may mod- hundredweight. (b) REPAYMENT RATES FOR UPLAND COTTON, ify the requirements of this subsection if the (9) In the case of medium grain rice, $6.50 LONG GRAIN RICE, AND MEDIUM GRAIN RICE.— modifications are consistent with the pur- per hundredweight. The Secretary shall permit producers to poses of this subsection, as determined by (10) In the case of soybeans, $5.00 per bush- repay a marketing assistance loan under sec- the Secretary. el. tion 1201 for upland cotton, long grain rice, (e) SPECIAL RULES FOR PEANUTS.— (11) In the case of other oilseeds, $10.09 per and medium grain rice at a rate that is the (1) IN GENERAL.—This subsection shall hundredweight for each of the following lesser of— apply only to producers of peanuts. kinds of oilseeds: (1) the loan rate established for the com- (2) OPTIONS FOR OBTAINING LOAN.—A mar- (A) Sunflower seed. modity under section 1202, plus interest (de- keting assistance loan under this section, (B) Rapeseed. termined in accordance with section 163 of and loan deficiency payments under section (C) Canola. the Federal Agriculture Improvement and 1205, may be obtained at the option of the (D) Safflower. Reform Act of 1996 (7 U.S.C. 7283)); or producers on a farm through— (E) Flaxseed. (2) the prevailing world market price for (A) a designated marketing association or (F) Mustard seed. the commodity, as determined and adjusted marketing cooperative of producers that is (G) Crambe. by the Secretary in accordance with this sec- approved by the Secretary; or (H) Sesame seed. tion. (B) the Farm Service Agency. (I) Other oilseeds designated by the Sec- (c) REPAYMENT RATES FOR EXTRA LONG (3) STORAGE OF LOAN PEANUTS.—As a condi- retary. STAPLE COTTON.—Repayment of a marketing tion on the approval by the Secretary of an (12) In the case of dry peas, $5.40 per hun- assistance loan for extra long staple cotton individual or entity to provide storage for dredweight. shall be at the loan rate established for the peanuts for which a marketing assistance (13) In the case of lentils, $11.28 per hun- commodity under section 1202, plus interest loan is made under this section, the indi- dredweight. (determined in accordance with section 163 of vidual or entity shall agree— (14) In the case of small chickpeas, $7.43 per the Federal Agriculture Improvement and (A) to provide the storage on a nondiscrim- hundredweight. Reform Act of 1996 (7 U.S.C. 7283)). (d) PREVAILING WORLD MARKET PRICE.—For inatory basis; and (15) In the case of large chickpeas, $11.28 purposes of this section and section 1207, the (B) to comply with such additional require- per hundredweight. Secretary shall prescribe by regulation— ments as the Secretary considers appropriate (16) In the case of graded wool, $1.15 per (1) a formula to determine the prevailing to accomplish the purposes of this section pound. world market price for each of upland cot- and promote fairness in the administration (17) In the case of nongraded wool, $0.40 per ton, long grain rice, and medium grain rice; of the benefits of this section. pound. and (4) STORAGE, HANDLING, AND ASSOCIATED (18) In the case of mohair, $4.20 per pound. (2) a mechanism by which the Secretary COSTS.— (19) In the case of honey, $0.69 per pound. shall announce periodically those prevailing (A) IN GENERAL.—To ensure proper storage (20) In the case of peanuts, $355 per ton. world market prices. of peanuts for which a loan is made under (b) SINGLE COUNTY LOAN RATE FOR OTHER (e) ADJUSTMENT OF PREVAILING WORLD this section, the Secretary shall pay han- OILSEEDS.—The Secretary shall establish a dling and other associated costs (other than single loan rate in each county for each kind MARKET PRICE FOR UPLAND COTTON, LONG storage costs) incurred at the time at which of other oilseeds described in subsection GRAIN RICE, AND MEDIUM GRAIN RICE.— the peanuts are placed under loan, as deter- (a)(11). (1) RICE.—The prevailing world market price for long grain rice and medium grain mined by the Secretary. SEC. 1203. TERM OF LOANS. rice determined under subsection (d) shall be (B) REDEMPTION AND FORFEITURE.—The (a) TERM OF LOAN.—In the case of each Secretary shall— loan commodity, a marketing assistance adjusted to United States quality and loca- (i) require the repayment of handling and loan under section 1201 shall have a term of tion. other associated costs paid under subpara- 9 months beginning on the first day of the (2) COTTON.—The prevailing world market graph (A) for all peanuts pledged as collat- first month after the month in which the price for upland cotton determined under eral for a loan that is redeemed under this loan is made. subsection (d)— section; and (b) EXTENSIONS PROHIBITED.—The Sec- (A) shall be adjusted to United States qual- (ii) pay storage, handling, and other associ- retary may not extend the term of a mar- ity and location, with the adjustment to in- ated costs for all peanuts pledged as collat- keting assistance loan for any loan com- clude— eral that are forfeited under this section. modity. (i) a reduction equal to any United States (5) MARKETING.—A marketing association SEC. 1204. REPAYMENT OF LOANS. Premium Factor for upland cotton of a qual- 3 or cooperative may market peanuts for (a) GENERAL RULE.—The Secretary shall ity higher than Middling (M) 1 ⁄32-inch; and which a loan is made under this section in permit the producers on a farm to repay a (ii) the average costs to market the com- any manner that conforms to consumer marketing assistance loan under section 1201 modity, including average transportation needs, including the separation of peanuts by for a loan commodity (other than upland costs, as determined by the Secretary; and type and quality. cotton, long grain rice, medium grain rice, (B) may be further adjusted, during the pe- (6) REIMBURSABLE AGREEMENTS AND PAY- extra long staple cotton, peanuts and confec- riod beginning on the date of enactment of MENT OF ADMINISTRATIVE EXPENSES.—The tionery and each other kind of sunflower this Act and ending on July 31, 2018, if the Secretary may implement any reimbursable seed (other than oil sunflower seed)) at a Secretary determines the adjustment is nec- agreements or provide for the payment of ad- rate that is the lesser of— essary— ministrative expenses under this subsection (1) the loan rate established for the com- (i) to minimize potential loan forfeitures; only in a manner that is consistent with modity under section 1202, plus interest (de- (ii) to minimize the accumulation of those activities in regard to other loan com- termined in accordance with section 163 of stocks of upland cotton by the Federal Gov- modities. the Federal Agriculture Improvement and ernment; SEC. 1202. LOAN RATES FOR NONRECOURSE MAR- Reform Act of 1996 (7 U.S.C. 7283)); (iii) to ensure that upland cotton produced KETING ASSISTANCE LOANS. (2) a rate (as determined by the Secretary) in the United States can be marketed freely (a) IN GENERAL.—For purposes of each of that— and competitively, both domestically and the 2013 through 2017 crop years, the loan (A) is calculated based on average market internationally; and rate for a marketing assistance loan under prices for the loan commodity during the (iv) to ensure an appropriate transition be- section 1201 for a loan commodity shall be preceding 30-day period; and tween current-crop and forward-crop price equal to the following: (B) will minimize discrepancies in mar- quotations, except that the Secretary may (1) In the case of wheat, $2.94 per bushel. keting loan benefits across State boundaries use forward-crop price quotations prior to (2) In the case of corn, $1.95 per bushel. and across county boundaries; or July 31 of a marketing year only if— (3) In the case of grain sorghum, $1.95 per (3) a rate that the Secretary may develop (I) there are insufficient current-crop price bushel. using alternative methods for calculating a quotations; and (4) In the case of barley, $1.95 per bushel. repayment rate for a loan commodity that (II) the forward-crop price quotation is the (5) In the case of oats, $1.39 per bushel. the Secretary determines will— lowest such quotation available. (6) In the case of base quality of upland (A) minimize potential loan forfeitures; (3) GUIDELINES FOR ADDITIONAL ADJUST- cotton, for the 2013 and each subsequent crop (B) minimize the accumulation of stocks of MENTS.—In making adjustments under this year, the simple average of the adjusted pre- the commodity by the Federal Government; subsection, the Secretary shall establish a

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mechanism for determining and announcing (b) COMPUTATION.—A loan deficiency pay- elects to forgo harvesting of wheat, barley, the adjustments in order to avoid undue dis- ment for a loan commodity or commodity or oats; and ruption in the United States market. referred to in subsection (a)(2) shall be equal (ii)(I) the yield in effect for the calculation (f) REPAYMENT RATES FOR CONFECTIONERY to the product obtained by multiplying— of agriculture risk coverage payments under AND OTHER KINDS OF SUNFLOWER SEEDS.—The (1) the payment rate determined under sub- subtitle A with respect to that loan com- Secretary shall permit the producers on a section (c) for the commodity; by modity on the farm; or farm to repay a marketing assistance loan (2) the quantity of the commodity pro- (II) in the case of a farm without a pay- under section 1201 for confectionery and each duced by the eligible producers, excluding ment yield for that loan commodity, an ap- other kind of sunflower seed (other than oil any quantity for which the producers obtain propriate yield established by the Secretary. sunflower seed) at a rate that is the lesser a marketing assistance loan under section (2) GRAZING OF TRITICALE ACREAGE.—The of— 1201. amount of a payment made under this sec- (1) the loan rate established for the com- (c) PAYMENT RATE.— tion to a producer on a farm described in modity under section 1202, plus interest (de- (1) IN GENERAL.—In the case of a loan com- subsection (a)(2) shall be equal to the termined in accordance with section 163 of modity, the payment rate shall be the amount determined by multiplying— the Federal Agriculture Improvement and amount by which— (A) the loan deficiency payment rate deter- (A) the loan rate established under section Reform Act of 1996 (7 U.S.C. 7283)); or mined under section 1205(c) in effect for 1202 for the loan commodity; exceeds (2) the repayment rate established for oil wheat, as of the date of the agreement, for (B) the rate at which a marketing assist- sunflower seed. the county in which the farm is located; by ance loan for the loan commodity may be re- (g) PAYMENT OF COTTON STORAGE COSTS.— (B) the payment quantity determined by paid under section 1204. Effective for each of the 2013 through 2017 multiplying— (2) UNSHORN PELTS.—In the case of unshorn crop years, the Secretary shall make cotton (i) the quantity of the grazed acreage on pelts, the payment rate shall be the amount storage payments available in the same the farm with respect to which the producer by which— manner, and at the same rates as the Sec- elects to forgo harvesting of triticale; and (A) the loan rate established under section retary provided storage payments for the (ii)(I) the yield in effect for the calculation 1202 for ungraded wool; exceeds 2006 crop of cotton, except that the rates of agriculture risk coverage payments under shall be reduced by 20 percent. (B) the rate at which a marketing assistance loan for ungraded wool may be repaid subtitle A with respect to wheat on the farm; (h) REPAYMENT RATE FOR PEANUTS.—The under section 1204. or Secretary shall permit producers on a farm (II) in the case of a farm without a pay- (3) HAY AND SILAGE.—In the case of hay or to repay a marketing assistance loan for pea- silage derived from a loan commodity, the ment yield for wheat, an appropriate yield nuts under subsection (a) at a rate that is payment rate shall be the amount by established by the Secretary in a manner the lesser of— which— consistent with section 1102 of the Food, (1) the loan rate established for peanuts (A) the loan rate established under section Conservation, and Energy Act of 2008 (7 under subsection (b), plus interest (deter- 1202 for the loan commodity from which the U.S.C. 8712). mined in accordance with section 163 of the hay or silage is derived; exceeds (c) TIME, MANNER, AND AVAILABILITY OF Federal Agriculture Improvement and Re- (B) the rate at which a marketing assist- form Act of 1996 (7 U.S.C. 7283)); or PAYMENT.— ance loan for the loan commodity may be re- (1) TIME AND MANNER.—A payment under (2) a rate that the Secretary determines paid under section 1204. will— this section shall be made at the same time (d) EXCEPTION FOR EXTRA LONG STAPLE and in the same manner as loan deficiency (A) minimize potential loan forfeitures; COTTON.—This section shall not apply with (B) minimize the accumulation of stocks of payments are made under section 1205. respect to extra long staple cotton. (2) AVAILABILITY.— peanuts by the Federal Government; (e) EFFECTIVE DATE FOR PAYMENT RATE DE- (A) IN GENERAL.—The Secretary shall es- (C) minimize the cost incurred by the Fed- TERMINATION.—The Secretary shall deter- tablish an availability period for the pay- eral Government in storing peanuts; and mine the amount of the loan deficiency payments authorized by this section. (D) allow peanuts produced in the United ment to be made under this section to the ERTAIN COMMODITIES.—In the case of States to be marketed freely and competi- producers on a farm with respect to a quan- (B) C tively, both domestically and internation- tity of a loan commodity or commodity re- wheat, barley, and oats, the availability pe- ally. ferred to in subsection (a)(2) using the pay- riod shall be consistent with the availability period for the commodity established by the (i) AUTHORITY TO TEMPORARILY ADJUST RE- ment rate in effect under subsection (c) as of Secretary for marketing assistance loans au- PAYMENT RATES.— the date the producers request the payment. thorized by this subtitle. (1) ADJUSTMENT AUTHORITY.—In the event SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFI- of a severe disruption to marketing, trans- CIENCY PAYMENTS FOR GRAZED (d) PROHIBITION ON CROP INSURANCE INDEM- ACREAGE. portation, or related infrastructure, the Sec- NITY OR NONINSURED CROP ASSISTANCE.—A (a) ELIGIBLE PRODUCERS.— retary may modify the repayment rate oth- 2013 through 2017 crop of wheat, barley, oats, erwise applicable under this section for mar- (1) IN GENERAL.—Effective for the 2013 through 2017 crop years, in the case of a pro- or triticale planted on acreage that a pro- keting assistance loans under section 1201 for ducer elects, in the agreement required by a loan commodity. ducer that would be eligible for a loan defi- subsection (a), to use for the grazing of live- (2) DURATION.—Any adjustment made ciency payment under section 1205 for wheat, under paragraph (1) in the repayment rate barley, or oats, but that elects to use acre- stock in lieu of any other harvesting of the for marketing assistance loans for a loan age planted to the wheat, barley, or oats for crop shall not be eligible for an indemnity commodity shall be in effect on a short-term the grazing of livestock, the Secretary shall under a policy or plan of insurance author- and temporary basis, as determined by the make a payment to the producer under this ized under the Federal Crop Insurance Act (7 Secretary. section if the producer enters into an agree- U.S.C. 1501 et seq.) or noninsured crop assist- ment with the Secretary to forgo any other ance under section 196 of the Federal Agri- SEC. 1205. LOAN DEFICIENCY PAYMENTS. harvesting of the wheat, barley, or oats on (a) AVAILABILITY OF LOAN DEFICIENCY PAY- that acreage. culture Improvement and Reform Act of 1996 MENTS.— (2) GRAZING OF TRITICALE ACREAGE.—Effec- (7 U.S.C. 7333). (1) IN GENERAL.—Except as provided in sub- tive for the 2013 through 2017 crop years, section (d), the Secretary may make loan de- SEC. 1207. SPECIAL MARKETING LOAN PROVI- with respect to a producer on a farm that SIONS FOR UPLAND COTTON. ficiency payments available to producers on uses acreage planted to triticale for the graz- a farm that, although eligible to obtain a ing of livestock, the Secretary shall make a (a) SPECIAL IMPORT QUOTA.— marketing assistance loan under section 1201 payment to the producer under this section (1) DEFINITION OF SPECIAL IMPORT QUOTA.— with respect to a loan commodity, agree to if the producer enters into an agreement In this subsection, the term ‘‘special import forgo obtaining the loan for the commodity with the Secretary to forgo any other har- quota’’ means a quantity of imports that is in return for loan deficiency payments under vesting of triticale on that acreage. not subject to the over-quota tariff rate of a this section. (b) PAYMENT AMOUNT.— tariff-rate quota. (2) UNSHORN PELTS, HAY, AND SILAGE.— (1) IN GENERAL.—The amount of a payment (2) ESTABLISHMENT.— (A) MARKETING ASSISTANCE LOANS.—Sub- made under this section to a producer on a (A) IN GENERAL.—The President shall carry ject to subparagraph (B), nongraded wool in farm described in subsection (a)(1) shall be out an import quota program during the pe- the form of unshorn pelts and hay and silage equal to the amount determined by multi- riod beginning on August 1, 2013, and ending derived from a loan commodity are not eligi- plying— on July 31, 2018, as provided in this sub- ble for a marketing assistance loan under (A) the loan deficiency payment rate deter- section. section 1201. mined under section 1205(c) in effect, as of (B) PROGRAM REQUIREMENTS.—Whenever (B) LOAN DEFICIENCY PAYMENT.—Effective the date of the agreement, for the county in the Secretary determines and announces for the 2013 through 2017 crop years, the Sec- which the farm is located; by that for any consecutive 4-week period, the retary may make loan deficiency payments (B) the payment quantity determined by Friday through Thursday average price available under this section to producers on multiplying— quotation for the lowest-priced United a farm that produce unshorn pelts or hay and (i) the quantity of the grazed acreage on States growth, as quoted for Middling (M) silage derived from a loan commodity. the farm with respect to which the producer 13⁄32-inch cotton, delivered to a definable and

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4491 significant international market, as deter- there shall immediately be in effect a lim- (1) to maintain and expand the domestic mined by the Secretary, exceeds the pre- ited global import quota subject to the fol- use of extra long staple cotton produced in vailing world market price, there shall im- lowing conditions: the United States; mediately be in effect a special import (A) QUANTITY.—The quantity of the quota (2) to increase exports of extra long staple quota. shall be equal to 21 days of domestic mill cotton produced in the United States; and (3) QUANTITY.—The quota shall be equal to consumption of upland cotton at the season- (3) to ensure that extra long staple cotton the consumption during a 1-week period of ally adjusted average rate of the most recent produced in the United States remains com- cotton by domestic mills at the seasonally 3 months for which official data of the De- petitive in world markets. adjusted average rate of the most recent 3 partment of Agriculture are available or as (b) PAYMENTS UNDER PROGRAM; TRIGGER.— months for which official data of the Depart- estimated by the Secretary. Under the program, the Secretary shall ment of Agriculture or other data are avail- (B) QUANTITY IF PRIOR QUOTA.—If a quota make payments available under this section able. has been established under this subsection whenever— (4) APPLICATION.—The quota shall apply to during the preceding 12 months, the quantity (1) for a consecutive 4-week period, the upland cotton purchased not later than 90 of the quota next established under this sub- world market price for the lowest priced days after the date of the Secretary’s an- section shall be the smaller of 21 days of do- competing growth of extra long staple cotton nouncement under paragraph (2) and entered mestic mill consumption calculated under (adjusted to United States quality and loca- into the United States not later than 180 subparagraph (A) or the quantity required to tion and for other factors affecting the com- days after that date. increase the supply to 130 percent of the de- petitiveness of such cotton), as determined (5) OVERLAP.—A special quota period may mand. by the Secretary, is below the prevailing be established that overlaps any existing (C) PREFERENTIAL TARIFF TREATMENT.—The United States price for a competing growth quota period if required by paragraph (2), ex- quantity under a limited global import quota of extra long staple cotton; and cept that a special quota period may not be shall be considered to be an in-quota quan- (2) the lowest priced competing growth of established under this subsection if a quota tity for purposes of— extra long staple cotton (adjusted to United period has been established under subsection (i) section 213(d) of the Caribbean Basin States quality and location and for other (b). Economic Recovery Act (19 U.S.C. 2703(d)); factors affecting the competitiveness of such (6) PREFERENTIAL TARIFF TREATMENT.—The (ii) section 204 of the Andean Trade Pref- cotton), as determined by the Secretary, is quantity under a special import quota shall erence Act (19 U.S.C. 3203); less than 134 percent of the loan rate for be considered to be an in-quota quantity for (iii) section 503(d) of the Trade Act of 1974 extra long staple cotton. purposes of— (19 U.S.C. 2463(d)); and (c) ELIGIBLE RECIPIENTS.—The Secretary (A) section 213(d) of the Caribbean Basin (iv) General Note 3(a)(iv) to the Har- shall make payments available under this Economic Recovery Act (19 U.S.C. 2703(d)); monized Tariff Schedule. section to domestic users of extra long staple (B) section 204 of the Andean Trade Pref- (D) QUOTA ENTRY PERIOD.—When a quota is cotton produced in the United States and ex- erence Act (19 U.S.C. 3203); established under this subsection, cotton porters of extra long staple cotton produced (C) section 503(d) of the Trade Act of 1974 may be entered under the quota during the in the United States that enter into an (19 U.S.C. 2463(d)); and 90-day period beginning on the date the agreement with the Commodity Credit Cor- (D) General Note 3(a)(iv) to the Har- quota is established by the Secretary. poration to participate in the program under monized Tariff Schedule. (3) NO OVERLAP.—Notwithstanding para- this section. (7) LIMITATION.—The quantity of cotton en- graph (2), a quota period may not be estab- (d) PAYMENT AMOUNT.—Payments under tered into the United States during any mar- lished that overlaps an existing quota period this section shall be based on the amount of keting year under the special import quota or a special quota period established under the difference in the prices referred to in established under this subsection may not subsection (a). subsection (b)(1) during the fourth week of exceed the equivalent of 10 week’s consump- (c) ECONOMIC ADJUSTMENT ASSISTANCE TO the consecutive 4-week period multiplied by tion of upland cotton by domestic mills at USERS OF UPLAND COTTON.— the amount of documented purchases by do- the seasonally adjusted average rate of the 3 (1) IN GENERAL.—Subject to paragraph (2), mestic users and sales for export by export- months immediately preceding the first spe- the Secretary shall, on a monthly basis, ers made in the week following such a con- cial import quota established in any mar- make economic adjustment assistance avail- secutive 4-week period. keting year. able to domestic users of upland cotton in SEC. 1209. AVAILABILITY OF RECOURSE LOANS (b) LIMITED GLOBAL IMPORT QUOTA FOR UP- the form of payments for all documented use FOR HIGH MOISTURE FEED GRAINS LAND COTTON.— of that upland cotton during the previous AND SEED COTTON. (1) DEFINITIONS.—In this subsection: monthly period regardless of the origin of (a) HIGH MOISTURE FEED GRAINS.— (A) DEMAND.—The term ‘‘demand’’ means— the upland cotton. (1) DEFINITION OF HIGH MOISTURE STATE.—In (i) the average seasonally adjusted annual (2) VALUE OF ASSISTANCE.—Effective begin- this subsection, the term ‘‘high moisture rate of domestic mill consumption of cotton ning on August 1, 2012, the value of the as- state’’ means corn or grain sorghum having during the most recent 3 months for which sistance provided under paragraph (1) shall a moisture content in excess of Commodity official data of the Department of Agri- be 3 cents per pound. Credit Corporation standards for marketing culture (as determined by the Secretary) are (3) ALLOWABLE PURPOSES.—Economic ad- assistance loans made by the Secretary available; and justment assistance under this subsection under section 1201. (ii) the larger of— shall be made available only to domestic (2) RECOURSE LOANS AVAILABLE.—For each (I) average exports of upland cotton during users of upland cotton that certify that the of the 2013 through 2017 crops of corn and the preceding 6 marketing years; or assistance shall be used only to acquire, con- grain sorghum, the Secretary shall make (II) cumulative exports of upland cotton struct, install, modernize, develop, convert, available recourse loans, as determined by plus outstanding export sales for the mar- or expand land, plant, buildings, equipment, the Secretary, to producers on a farm that— keting year in which the quota is estab- facilities, or machinery. (A) normally harvest all or a portion of lished. (4) REVIEW OR AUDIT.—The Secretary may their crop of corn or grain sorghum in a high (B) LIMITED GLOBAL IMPORT QUOTA.—The conduct such review or audit of the records moisture state; term ‘‘limited global import quota’’ means a of a domestic user under this subsection as (B) present— quantity of imports that is not subject to the the Secretary determines necessary to carry (i) certified scale tickets from an in- over-quota tariff rate of a tariff-rate quota. out this subsection. spected, certified commercial scale, includ- (C) SUPPLY.—The term ‘‘supply’’ means, (5) IMPROPER USE OF ASSISTANCE.—If the ing a licensed warehouse, feedlot, feed mill, using the latest official data of the Depart- Secretary determines, after a review or audit distillery, or other similar entity approved ment of Agriculture— of the records of the domestic user, that eco- by the Secretary, pursuant to regulations (i) the carryover of upland cotton at the nomic adjustment assistance under this sub- issued by the Secretary; or beginning of the marketing year (adjusted to section was not used for the purposes speci- (ii) field or other physical measurements of 480-pound bales) in which the quota is estab- fied in paragraph (3), the domestic user shall the standing or stored crop in regions of the lished; be— United States, as determined by the Sec- (ii) production of the current crop; and (A) liable for the repayment of the assist- retary, that do not have certified commer- (iii) imports to the latest date available ance to the Secretary, plus interest, as de- cial scales from which certified scale tickets during the marketing year. termined by the Secretary; and may be obtained within reasonable prox- (2) PROGRAM.—The President shall carry (B) ineligible to receive assistance under imity of harvest operation; out an import quota program that provides this subsection for a period of 1 year fol- (C) certify that the producers on the farm that whenever the Secretary determines and lowing the determination of the Secretary. were the owners of the feed grain at the time announces that the average price of the base SEC. 1208. SPECIAL COMPETITIVE PROVISIONS of delivery to, and that the quantity to be quality of upland cotton, as determined by FOR EXTRA LONG STAPLE COTTON. placed under loan under this subsection was the Secretary, in the designated spot mar- (a) COMPETITIVENESS PROGRAM.—Notwith- in fact harvested on the farm and delivered kets for a month exceeded 130 percent of the standing any other provision of law, during to, a feedlot, feed mill, or commercial or on- average price of the quality of cotton in the the period beginning on the date of enact- farm high-moisture storage facility, or to a markets for the preceding 36 months, not- ment of this Act through July 31, 2018, the facility maintained by the users of corn and withstanding any other provision of law, Secretary shall carry out a program— grain sorghum in a high moisture state; and

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4492 CONGRESSIONAL RECORD — SENATE June 25, 2012 (D) comply with deadlines established by (iv) a mechanism to ensure that no pre- Subtitle D—Dairy the Secretary for harvesting the corn or mium or discount is established that exceeds PART I—DAIRY PRODUCTION MARGIN grain sorghum and submit applications for the premium or discount associated with a PROTECTION AND DAIRY MARKET STA- loans under this subsection within deadlines leaf grade that is 1 better than the applicable BILIZATION PROGRAMS established by the Secretary. color grade. SEC. 1401. DEFINITIONS. (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— (C) DISCRETIONARY REVISIONS.—Revisions In this part: A loan under this subsection shall be made under subparagraph (A) may include— (1) ACTUAL DAIRY PRODUCTION MARGIN.—The on a quantity of corn or grain sorghum of (i) the use of non-spot market price data, term ‘‘actual dairy production margin’’ the same crop acquired by the producer in addition to spot market price data, that means the difference between the all-milk equivalent to a quantity determined by mul- would enhance the accuracy of the price in- price and the average feed cost, as calculated tiplying— formation used in determining quality ad- under section 1402. (A) the acreage of the corn or grain sor- justments under this subsection; (2) ALL-MILK PRICE.—The term ‘‘all-milk ghum in a high moisture state harvested on (ii) adjustments in the premiums or dis- price’’ means the average price received, per the farm of the producer; by counts associated with upland cotton with a hundredweight of milk, by dairy operations (B) the lower of the actual average yield staple length of 33 or above due to for all milk sold to plants and dealers in the used to make payments under subtitle A or micronaire with the goal of eliminating any United States, as determined by the Sec- the actual yield on a field, as determined by unnecessary artificial splits in the calcula- retary. the Secretary, that is similar to the field tions of the premiums or discounts; and (3) ANNUAL PRODUCTION HISTORY.—The term from which the corn or grain sorghum was (iii) such other adjustments as the Sec- ‘‘annual production history’’ means the pro- obtained. retary determines appropriate, after con- duction history determined for a partici- (b) RECOURSE LOANS AVAILABLE FOR SEED sultations conducted in accordance with pating dairy operation under section 1413(b) COTTON.—For each of the 2013 through 2017 paragraph (3). whenever the participating dairy operation crops of upland cotton and extra long staple (3) CONSULTATION WITH PRIVATE SECTOR.— purchases supplemental production margin cotton, the Secretary shall make available (A) PRIOR TO REVISION.—In making adjust- protection. recourse seed cotton loans, as determined by ments to the loan rate for cotton (including (4) AVERAGE FEED COST.—The term ‘‘aver- the Secretary, on any production. any review of the adjustments) as provided age feed cost’’ means the average cost of feed (c) REPAYMENT RATES.—Repayment of a rein this subsection, the Secretary shall con- used by a dairy operation to produce a hun- course loan made under this section shall be sult with representatives of the United dredweight of milk, determined under sec- at the loan rate established for the com- States cotton industry. tion 1402 using the sum of the following: modity by the Secretary, plus interest (de- (B) INAPPLICABILITY OF FEDERAL ADVISORY (A) The product determined by multiplying termined in accordance with section 163 of COMMITTEE ACT.—The Federal Advisory Com- 1.0728 by the price of corn per bushel. the Federal Agriculture Improvement and mittee Act (5 U.S.C. App.) shall not apply to (B) The product determined by multiplying Reform Act of 1996 (7 U.S.C. 7283)). consultations under this subsection. 0.00735 by the price of soybean meal per ton. SEC. 1210. ADJUSTMENTS OF LOANS. (4) REVIEW OF ADJUSTMENTS.—The Sec- (C) The product determined by multiplying (a) ADJUSTMENT AUTHORITY.—Subject to retary may review the operation of the up- 0.0137 by the price of alfalfa hay per ton. subsection (e), the Secretary may make ap- land cotton quality adjustments imple- (5) BASIC PRODUCTION HISTORY.—The term propriate adjustments in the loan rates for mented pursuant to this subsection and may ‘‘basic production history’’ means the pro- any loan commodity (other than cotton) for make further revisions to the administration duction history determined for a partici- differences in grade, type, quality, location, of the loan program for upland cotton, by— pating dairy operation under section 1413(a) and other factors. (A) revoking or revising any actions taken for provision of basic production margin pro- (b) MANNER OF ADJUSTMENT.—The adjust- under paragraph (2)(B); or tection. ments under subsection (a) shall, to the max- (B) revoking or revising any actions taken (6) CONSECUTIVE 2-MONTH PERIOD.—The imum extent practicable, be made in such a or authorized to be taken under paragraph term ‘‘consecutive 2-month period’’ refers to manner that the average loan level for the (2)(C). the 2-month period consisting of the months commodity will, on the basis of the antici- (e) RICE.—The Secretary shall not make of January and February, March and April, pated incidence of the factors, be equal to adjustments in the loan rates for long grain May and June, July and August, September the level of support determined in accord- rice and medium grain rice, except for dif- and October, or November and December, re- ance with this subtitle and subtitles C ferences in grade and quality (including mill- spectively. through E. ing yields). (7) DAIRY OPERATION.— (c) ADJUSTMENT ON COUNTY BASIS.— Subtitle C—Sugar (A) IN GENERAL.—The term ‘‘dairy oper- (1) IN GENERAL.—The Secretary may estab- ation’’ means, as determined by the Sec- lish loan rates for a crop for producers in in- SEC. 1301. SUGAR PROGRAM. retary, 1 or more dairy producers that dividual counties in a manner that results in (a) CONTINUATION OF CURRENT PROGRAM produce and market milk as a single dairy the lowest loan rate being 95 percent of the AND LOAN RATES.— operation in which each dairy producer— national average loan rate, if those loan (1) SUGARCANE.—Section 156(a)(5) of the (i) shares in the pooling of resources and a rates do not result in an increase in outlays. Federal Agriculture Improvement and Re- common ownership structure; (2) PROHIBITION.—Adjustments under this form Act of 1996 (7 U.S.C. 7272(a)(5)) is (ii) is at risk in the production of milk on subsection shall not result in an increase in amended by striking ‘‘the 2012 crop year’’ the dairy operation; and the national average loan rate for any year. and inserting ‘‘each of the 2012 through 2017 (iii) contributes land, labor, management, (d) ADJUSTMENT IN LOAN RATE FOR COT- crop years’’. equipment, or capital to the dairy operation. TON.— (2) SUGAR BEETS.—Section 156(b)(2) of the (B) ADDITIONAL OWNERSHIP STRUCTURES.— (1) IN GENERAL.—The Secretary may make Federal Agriculture Improvement and Re- The Secretary shall determine additional appropriate adjustments in the loan rate for form Act of 1996 (7 U.S.C. 7272(b)(2)) is ownership structures to be covered by the cotton for differences in quality factors. amended by striking ‘‘2012’’ and inserting definition of dairy operation. (2) REVISIONS TO QUALITY ADJUSTMENTS FOR ‘‘2017’’. (8) HANDLER.— UPLAND COTTON.— (3) EFFECTIVE PERIOD.—Section 156(i) of the (A) IN GENERAL.—The term ‘‘handler’’ (A) IN GENERAL.—Not later than 180 days Federal Agriculture Improvement and Re- means the initial individual or entity mak- after the date of enactment of this Act, the form Act of 1996 (7 U.S.C. 7272(i)) is amended ing payment to a dairy operation for milk Secretary shall implement revisions in the by striking ‘‘2012’’ and inserting ‘‘2017’’. produced in the United States and marketed administration of the marketing assistance (b) FLEXIBLE MARKETING ALLOTMENTS FOR for commercial use. loan program for upland cotton to more ac- SUGAR.— (B) PRODUCER-HANDLER.—The term in- curately and efficiently reflect market val- (1) SUGAR ESTIMATES.—Section 359b(a)(1) of cludes a ‘‘producer-handler’’ when the pro- ues for upland cotton. the Agricultural Adjustment Act of 1938 (7 ducer satisfies the definition in subpara- (B) MANDATORY REVISIONS.—Revisions U.S.C. 1359bb(a)(1)) is amended by striking graph (A). under subparagraph (A) shall include— ‘‘2012’’ and inserting ‘‘2017’’. (9) PARTICIPATING DAIRY OPERATION.—The (i) the elimination of warehouse location (2) SUGAR IMPORT QUOTA ADJUSTMENT term ‘‘participating dairy operation’’ means differentials; DATE.—Section 359k(b) of the Agricultural a dairy operation that— (ii) the establishment of differentials for Adjustment Act of 1938 (7 U.S.C. 1359kk(b)) is (A) signs up under section 1412 to partici- the various quality factors and staple amended— pate in the production margin protection lengths of cotton based on a 3-year, weighted (A) by striking ‘‘APRIL 1’’ each place it ap- program under subpart A; and moving average of the weighted designated pears and inserting ‘‘FEBRUARY 1’’; and (B) as a result, also participates in the sta- spot market regions, as determined by re- (B) by striking ‘‘April 1’’ each place it ap- bilization program under subpart B. gional production; pears and inserting ‘‘February 1’’. (10) PRODUCTION MARGIN PROTECTION PRO- (iii) the elimination of any artificial split (3) EFFECTIVE PERIOD.—Section 359l(a) of GRAM.—The term ‘‘production margin protec- in the premium or discount between upland the Agricultural Adjustment Act of 1938 (7 tion program’’ means the dairy production cotton with a 32 or 33 staple length due to U.S.C. 1359ll(a)) is amended by striking margin protection program required by sub- micronaire; and ‘‘2012’’ and inserting ‘‘2017’’. part A.

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(11) SECRETARY.—The term ‘‘Secretary’’ if purchased by a participating dairy oper- (2) NOTICE OF AVAILABILITY.—Not later means the Secretary of Agriculture. ation. than 30 days after the date of enactment of (12) STABILIZATION PROGRAM.—The term SEC. 1412. PARTICIPATION OF DAIRY OPER- this Act, the Secretary shall publish a notice ‘‘stabilization program’’ means the dairy ATIONS IN PRODUCTION MARGIN in the Federal Register to inform dairy oper- market stabilization program required by PROTECTION PROGRAM. ations of the availability of basic production subpart B for all participating dairy oper- (a) ELIGIBILITY.—All dairy operations in margin protection and supplemental produc- ations. the United States shall be eligible to partici- tion margin protection, including the terms (13) STABILIZATION PROGRAM BASE.—The pate in the production margin protection of the protection and information about the term ‘‘stabilization program base’’, with re- program, except that a participating dairy option of dairy operations during the transi- spect to a participating dairy operation, operation shall be required to register with tion period to make an election described in means the stabilization program base cal- the Secretary before the participating dairy paragraph (3). culated for the participating dairy operation operation may receive— (3) ELECTION.—Except as provided in para- under section 1431(b). (1) basic production margin protection pro- graph (4), a dairy operation may elect to par- (14) UNITED STATES.—The term ‘‘United gram payments under section 1414; and ticipate in either the milk income loss pro- States’’, in a geographical sense, means the (2) if the participating dairy operation pur- gram established under section 1506 of the 50 States, the District of Columbia, Amer- chases supplemental production margin pro- Food, Conservation, and Energy Act of 2008 ican Samoa, Guam, the Commonwealth of tection under section 1415, supplemental pro- (7 U.S.C. 8773) or the production margin pro- the Northern Mariana Islands, the Common- duction margin protection program pay- tection program under this subtitle for the wealth of Puerto Rico, the Virgin Islands of ments under such section. duration of the transition period. the United States, and any other territory or (b) REGISTRATION PROCESS.— (4) TRANSFER TO PRODUCTION MARGIN PRO- possession of the United States. (1) IN GENERAL.—The Secretary shall speci- TECTION.—A dairy operation that elects to SEC. 1402. CALCULATION OF AVERAGE FEED fy the manner and form by which a partici- participate in the milk income loss program COST AND ACTUAL DAIRY PRODUC- established under section 1506 of the Food, TION MARGINS. pating dairy operation may register to participate in the production margin protection Conservation, and Energy Act of 2008 (7 (a) CALCULATION OF AVERAGE FEED COST.— U.S.C. 8773) during the transition period The Secretary shall calculate the national program. may, at any time, make a permanent trans- average feed cost for each month using the (2) TREATMENT OF MULTIPRODUCER DAIRY fer to the production margin protection pro- following data: OPERATIONS.—If a participating dairy oper- (1) The price of corn for a month shall be ation is operated by more than 1 dairy program. the price received during that month by ducer, all of the dairy producers of the par- (e) ADMINISTRATION FEE.— farmers in the United States for corn, as re- ticipating dairy operation shall be treated as (1) ADMINISTRATION FEE REQUIRED.—Except ported in the monthly Agricultural Prices a single dairy operation for purposes of— as provided in paragraph (5), a participating report by the Secretary. (A) registration to receive basic production dairy operation shall— (2) The price of soybean meal for a month margin protection and election to purchase (A) pay an administration fee under this shall be the central Illinois price for soybean supplemental production margin protection; subsection to register to participate in the meal, as reported in the Market News– (B) payment of the participation fee under production margin protection program; and Monthly Soybean Meal Price Report by the subsection (d) and producer premiums under (B) pay the administration fee annually Secretary. section 1415; and thereafter to continue to participate in the (3) The price of alfalfa hay for a month (C) participation in the stabilization pro- production margin protection program. shall be the price received during that month gram under subtitle B. (2) FEE AMOUNT.—The administration fee by farmers in the United States for alfalfa (3) TREATMENT OF PRODUCERS WITH MUL- for a participating dairy operation for a cal- hay, as reported in the monthly Agricultural TIPLE DAIRY OPERATIONS.—If a dairy producer endar year shall be based on the pounds of Prices report by the Secretary. operates 2 or more dairy operations, each milk (in millions) marketed by the partici- (b) CALCULATION OF ACTUAL DAIRY PRODUC- dairy operation of the producer shall sepa- pating dairy operation in the previous cal- TION MARGINS.— rately register to receive basic production endar year, as follows: (1) PRODUCTION MARGIN PROTECTION PRO- margin protection and purchase supple- GRAM.—For use in the production margin mental production margin protection and protection program under subpart A, the only those dairy operations so registered less than 1 $100 Secretary shall calculate the actual dairy shall be covered by the stabilization pro- 1 to 5 $250 production margin for each consecutive 2- gram. more than 5 to 10 $350 month period by subtracting— (c) TIME FOR REGISTRATION.— more than 10 to 40 $1,000 (A) the average feed cost for that consecu- (1) EXISTING DAIRY OPERATIONS.—During more than 40 $2,500 tive 2-month period, determined in accord- the 15-month period beginning on the date of ance with subsection (a); from the initiation of the registration period for (3) DEPOSIT OF FEES.—All administration (B) the all-milk price for that consecutive the production margin protection program, a fees collected under this subsection shall be 2-month period. dairy operation that is actively engaged as credited to the fund or account used to cover (2) STABILIZATION PROGRAM.—For use in the of such date may register with the Sec- the costs incurred to administer the produc- stabilization program under subpart B, the retary— tion margin protection program and the sta- Secretary shall calculate each month the ac- (A) to receive basic production margin pro- bilization program and shall be available to tual dairy production margin for the pre- tection; and the Secretary, without further appropriation ceding month by subtracting— (B) if the dairy operation elects, to pur- and until expended, for use or transfer as (A) the average feed cost for that preceding chase supplemental production margin pro- provided in paragraph (4). month, determined in accordance with sub- tection. (4) USE OF FEES.—The Secretary shall use section (a); from (2) NEW ENTRANTS.—A dairy producer that administration fees collected under this sub- (B) the all-milk price for that preceding has no existing interest in a dairy operation section— month. as of the date of the initiation of the reg- (A) to cover administrative costs of the (3) TIME FOR CALCULATIONS.—The calcula- istration period for the production margin production margin protection program and tions required by paragraphs (1) and (2) shall protection program, but that, after such stabilization program; and be made as soon as practicable using the full date, establishes a new dairy operation, may (B) to cover costs of the Department of Ag- month price of the applicable reference register with the Secretary during the 1-year riculture relating to reporting of dairy mar- month. period beginning on the date on which the ket news, carrying out the amendments Subpart A—Dairy Production Margin dairy operation first markets milk commer- made by section 1476, and carrying out sec- Protection Program cially— tion 273 of the Agricultural Marketing Act of (A) to receive basic production margin pro- SEC. 1411. ESTABLISHMENT OF DAIRY PRODUC- 1946 (7 U.S.C. 1637b)), to the extent funds re- TION MARGIN PROTECTION PRO- tection; and main available after operation of subpara- GRAM. (B) if the dairy operation elects, to pur- graph (A). Effective not later than 120 days after the chase supplemental production margin pro- (5) WAIVER.—The Secretary shall waive or effective date of this subtitle, the Secretary tection. reduce the administration fee required under shall establish and administer a dairy pro- (d) TRANSITION FROM MILC TO PRODUCTION paragraph (1) in the case of a limited-reduction margin protection program under MARGIN PROTECTION.— source dairy operation, as defined by the which participating dairy operations are (1) DEFINITION OF TRANSITION PERIOD.—In Secretary. paid— this subsection, the term ‘‘transition period’’ (f) LIMITATION.—A dairy operation may (1) basic production margin protection pro- means the period during which the milk ingram payments under section 1414 when ac- come loss program established under section only participate in the production margin tual dairy production margins are less than 1506 of the Food, Conservation, and Energy protection program or the livestock gross the threshold levels for such payments; and Act of 2008 (7 U.S.C. 8773) and the production margin for dairy program under the Federal (2) supplemental production margin pro- margin protection program under this sub- Crop Insurance Act (7 U.S.C. 1501 et seq.), but tection program payments under section 1415 title are both in existence. not both.

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SEC. 1413. PRODUCTION HISTORY OF PARTICI- (2) COVERAGE LEVEL.— mental production margin protection for a PATING DAIRY OPERATIONS. (A) BASIC PRODUCTION MARGIN PROTEC- year shall elect a percentage of coverage (a) PRODUCTION HISTORY FOR BASIC PRODUC- TION.—A purchaser or lessee to whom the equal to not more than 90 percent, nor less TION MARGIN PROTECTION.— Secretary transfers a basic production his- than 25 percent, of the annual production (1) DETERMINATION REQUIRED.—For pur- tory under this subsection shall not obtain a history of the participating dairy operation. poses of providing basic production margin different level of basic production margin (d) PREMIUMS FOR SUPPLEMENTAL PRODUC- protection, the Secretary shall determine protection than the basic production margin TION MARGIN PROTECTION.— the basic production history of a partici- protection coverage held by the seller or les- (1) PREMIUMS REQUIRED.—A participating pating dairy operation. sor from whom the transfer was obtained. dairy operation that purchases supplemental (2) CALCULATION.—Except as provided in (B) SUPPLEMENTAL PRODUCTION MARGIN production margin protection shall pay an paragraph (3), the basic production history of PROTECTION.—A purchaser or lessee to whom annual premium equal to the product ob- a participating dairy operation for basic pro- the Secretary transfers an annual production tained by multiplying— duction margin protection is equal to the history under this subsection shall not ob- (A) the coverage percentage elected by the highest annual milk marketings of the par- tain a different level of supplemental produc- participating dairy operation under sub- ticipating dairy operation during any 1 of tion margin protection coverage than the section (c); the 3 calendar years immediately preceding supplemental production margin protection (B) the annual production history of the the calendar year in which the participating coverage in effect for the seller or lessor participating dairy operation; and dairy operation first signed up to participate from whom the transfer was obtained for the (C) the premium per hundredweight of in the production margin protection pro- calendar year in which the transfer was milk, as specified in the applicable table gram. made. under paragraph (2) or (3). (3) ELECTION BY NEW DAIRY OPERATIONS.—In (e) MOVEMENT AND TRANSFER OF PRODUC- (2) PREMIUM PER HUNDREDWEIGHT FOR FIRST the case of a participating dairy operation TION HISTORY.— 4 MILLION POUNDS OF PRODUCTION.—For the that has been in operation for less than a (1) MOVEMENT AND TRANSFER AUTHORIZED.— first 4,000,000 pounds of milk marketings in- year, the participating dairy operation shall Subject to paragraph (2), if a participating cluded in the annual production history of a elect 1 of the following methods for the Sec- dairy operation moves from 1 location to an- participating dairy operation, the premium retary to determine the basic production his- other location, the participating dairy oper- per hundredweight corresponding to each tory of the participating dairy operation: ation may transfer the basic production his- coverage level specified in the following (A) The volume of the actual milk mar- tory and annual production history associ- table is as follows: ketings for the months the participating ated with the participating dairy operation. dairy operation has been in operation extrap- (2) NOTIFICATION REQUIREMENT.—A partici- $4.50 $0.01 olated to a yearly amount. pating dairy operation shall notify the Sec- $5.00 $0.02 (B) An estimate of the actual milk mar- retary of any move of a participating dairy $5.50 $0.035 ketings of the participating dairy operation operation under paragraph (1). $6.00 $0.045 based on the herd size of the participating (3) SUBSEQUENT OCCUPATION OF VACATED LO- $6.50 $0.09 dairy operation relative to the national roll- CATION.—A party subsequently occupying a $7.00 $0.40 ing herd average data published by the Sec- participating dairy operation location va- $7.50 $0.60 retary. cated as described in paragraph (1) shall have $8.00 $0.95 (4) NO CHANGE IN PRODUCTION HISTORY FOR no interest in the basic production history or BASIC PRODUCTION MARGIN PROTECTION.—Once annual production history previously associ- (3) PREMIUM PER HUNDREDWEIGHT FOR PRO- the basic production history of a partici- ated with the participating dairy operation DUCTION IN EXCESS OF 4 MILLION POUNDS.—For pating dairy operation is determined under at such location. milk marketings in excess of 4,000,000 pounds paragraph (2) or (3), the basic production his- SEC. 1414. BASIC PRODUCTION MARGIN PROTEC- included in the annual production history of tory shall not be subsequently changed for TION. a participating dairy operation, the premium purposes of determining the amount of any (a) PAYMENT THRESHOLD.—The Secretary per hundredweight corresponding to each basic production margin protection pay- shall make a payment to participating dairy coverage level is as follows: ments for the participating dairy operation operations in accordance with subsection (b) made under section 1414. whenever the average actual dairy produc- $4.50 $0.02 (b) ANNUAL PRODUCTION HISTORY FOR SUP- tion margin for a consecutive 2-month period $5.00 $0.04 PLEMENTAL PRODUCTION MARGIN PROTEC- is less than $4.00 per hundredweight of milk. $5.50 $0.10 TION.— (b) BASIC PRODUCTION MARGIN PROTECTION $6.00 $0.15 (1) DETERMINATION REQUIRED.—For pur- PAYMENT.—The basic production margin proposes of providing supplemental production tection payment for a participating dairy op- $6.50 $0.29 margin protection for a participating dairy eration for a consecutive 2-month period $7.00 $0.62 $7.50 $0.83 operation that purchases supplemental pro- shall be equal to the product obtained by $8.00 $1.06 duction margin protection for a year under multiplying— section 1415, the Secretary shall determine (1) the difference between the average ac- the annual production history of the partici- tual dairy production margin for the con- (4) TIME FOR PAYMENT.—In promulgating pating dairy operation under paragraph (2). secutive 2-month period and $4.00, except the rules to initiate the production margin (2) CALCULATION.—The annual production that, if the difference is more than $4.00, the protection program, the Secretary shall pro- history of a participating dairy operation for Secretary shall use $4.00; by vide more than 1 method by which a partici- a year is equal to the actual milk mar- (2) the lesser of— pating dairy operation that purchases sup- ketings of the participating dairy operation (A) 80 percent of the production history of plemental production margin protection for during the preceding calendar year. the participating dairy operation, divided by a calendar year may pay the premium under (3) NEW DAIRY OPERATIONS.—Subsection 6; or this subsection for that year in any manner (a)(3) shall apply with respect to determining (B) the actual quantity of milk marketed that maximizes participating dairy oper- the annual production history of a partici- by the participating dairy operation during ation payment flexibility and program integ- pating dairy operation that has been in oper- the consecutive 2-month period. rity. (e) PREMIUM OBLIGATIONS.— ation for less than a year. SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN (c) REQUIRED INFORMATION.—A partici- PROTECTION. (1) PRO-RATION OF PREMIUM FOR NEW DAIRY OPERATIONS pating dairy operation shall provide all in- (a) ELECTION OF SUPPLEMENTAL PRODUC- .—A participating dairy oper- formation that the Secretary may require in TION MARGIN PROTECTION.—A participating ation described in section 1412(c)(2) that pur- order to establish— dairy operation may annually purchase sup- chases supplemental production margin pro- (1) the basic production history of the par- plemental production margin protection to tection for a calendar year after the start of ticipating dairy operation under subsection protect, during the calendar year for which the calendar year shall pay a pro-rated pre- (a); and purchased, a higher level of the income of a mium for that calendar year based on the (2) the production history of the partici- participating dairy operation than the in- portion of the calendar year for which the pating dairy operation whenever the partici- come level guaranteed by basic production participating dairy operation purchases the pating dairy operation purchases supple- margin protection under section 1414. coverage. mental production margin protection under (b) SELECTION OF PAYMENT THRESHOLD.—A (2) LEGAL OBLIGATION.—A participating section 1415. participating dairy operation purchasing dairy operation that purchases supplemental (d) TRANSFER OF PRODUCTION HISTORIES.— supplemental production margin protection production margin protection for a calendar (1) TRANSFER BY SALE OR LEASE.—In pro- for a year shall elect a coverage level that is year shall be legally obligated to pay the ap- mulgating the rules to initiate the produc- higher, in any increment of $0.50, than the plicable premium for that calendar year, ex- tion margin protection program, the Sec- payment threshold for basic production mar- cept that the Secretary may waive that obli- retary shall specify the conditions under gin protection specified in section 1414(a), gation, under terms and conditions deter- which and the manner by which the produc- but not to exceed $8.00. mined by the Secretary, for 1 or more pro- tion history of a participating dairy oper- (c) COVERAGE PERCENTAGE.—A partici- ducers in any participating dairy operation ation may be transferred by sale or lease. pating dairy operation purchasing supple- in the case of death, retirement, permanent

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4495 dissolution of a participating dairy oper- stabilization program base calculation meth- weight of milk for 2 consecutive months, the ation, or other circumstances as the Sec- od to be used for a calendar year by noti- handler shall make payments to a partici- retary considers appropriate to ensure the fying the Secretary of the change not later pating dairy operation for a month based on integrity of the program. than a date determined by the Secretary. the greater of the following: (f) SUPPLEMENTAL PAYMENT THRESHOLD.—A (3) CALCULATION METHODS.—A participating (A) 98 percent of the stabilization program participating dairy operation with supple- dairy operation may elect either of the fol- base of the participating dairy operation. mental production margin protection shall lowing methods for calculation of the sta- (B) 94 percent of the marketings of milk receive a supplemental production margin bilization program base for the participating for the month by the participating dairy op- protection payment whenever the average dairy operation: eration. actual dairy production margin for a con- (A) The volume of the average monthly (2) REDUCTION REQUIREMENT 2.—If the Sec- secutive 2-month period is less than the cov- milk marketings of the participating dairy retary determines that the average actual erage level threshold selected by the partici- operation for the 3 months immediately pre- dairy production margin has been less than pating dairy operation under subsection (b). ceding the announcement by the Secretary $5.00 but greater than $4.00 for 2 consecutive (g) SUPPLEMENTAL PRODUCTION MARGIN that the stabilization program will become months, the handler shall make payments to PROTECTION PAYMENTS.— effective. a participating dairy operation for a month (1) IN GENERAL.—The supplemental produc- (B) The volume of the monthly milk mar- based on the greater of the following: tion margin protection payment for a par- ketings of the participating dairy operation (A) 97 percent of the stabilization program ticipating dairy operation is in addition to for the same month in the preceding year as base of the participating dairy operation. the basic production margin protection pay- the month for which the Secretary has an- (B) 93 percent of the marketings of milk ment. nounced the stabilization program will be- for the month by the participating dairy op- (2) AMOUNT OF PAYMENT.—The supple- come effective. eration. (3) REDUCTION REQUIREMENT 3.—If the Sec- mental production margin protection pay- SEC. 1432. THRESHOLD FOR IMPLEMENTATION ment for the participating dairy operation AND REDUCTION IN DAIRY PAY- retary determines that the average actual shall be determined as follows: MENTS. dairy production margin has been $4.00 or (A) The Secretary shall calculate the dif- (a) WHEN STABILIZATION PROGRAM RE- less for any 1 month, the handler shall make ference between the coverage level threshold QUIRED.—Except as provided in subsection payments to a participating dairy operation selected by the participating dairy operation (b), the Secretary shall announce that the for a month based on the greater of the fol- under subsection (b) and the greater of— stabilization program is in effect and order lowing: (i) the average actual dairy production reduced payments by handlers to partici- (A) 96 percent of the stabilization program margin for the consecutive 2-month period; pating dairy operations that exceed the ap- base of the participating dairy operation. or plicable percentage of the participating (B) 92 percent of the marketings of milk (ii) $4.00. dairy operation’s stabilization program base for the month by the participating dairy op- (B) The amount determined under subpara- whenever— eration. (c) CONTINUATION OF REDUCTIONS.—The graph (A) shall be multiplied by the percent- (1) the actual dairy production margin has largest level of payment reduction required age selected by the participating dairy oper- been $6.00 or less per hundredweight of milk under paragraph (1), (2), or (3) of subsection ation under subsection (c) and by the lesser for each of the immediately preceding 2 (b) shall be continued for each month until of the following: months; or the Secretary suspends the stabilization pro- (i) The annual production history of the (2) the actual dairy production margin has gram and terminates payment reductions in participating dairy operation, divided by 6. been $4.00 or less per hundredweight of milk accordance with section 1436. (ii) The actual amount of milk marketed for the immediately preceding month. (d) PAYMENT REDUCTION EXCEPTION.—Not- by the participating dairy operation during (b) EXCEPTION.—If any of the conditions de- withstanding any preceding subsection of the consecutive 2-month period. scribed in section 1436(b) have been met dur- this section, a handler shall make no pay- SEC. 1416. EFFECT OF FAILURE TO PAY ADMINIS- ing the 2-month period immediately pre- ment reductions for a participating dairy op- TRATION FEES OR PREMIUMS. ceding the month in which the announce- eration for a month if the participating (a) LOSS OF BENEFITS.—A participating ment under subsection (a) would otherwise dairy operation’s milk marketings for the dairy operation that fails to pay the required be made by the Secretary in the absence of month are equal to or less than the percent- administration fee under section 1412 or is in this exception, the Secretary shall— age of the stabilization program base appli- arrears on premium payments for supple- (1) suspend the stabilization program; cable to the participating dairy operation mental production margin protection under (2) refrain from making the announcement under paragraph (1), (2), or (3) of subsection section 1415— under subsection (a) to implement order the (b). (1) remains legally obligated to pay the ad- stabilization payment; or SEC. 1435. REMITTING FUNDS TO THE SEC- ministration fee or premiums, as the case (3) order reduced payments. RETARY AND USE OF FUNDS. may be; and (c) EFFECTIVE DATE FOR IMPLEMENTATION (a) REMITTING FUNDS.—As soon as prac- (2) may not receive basic production mar- OF PAYMENT REDUCTIONS.—Reductions in ticable after the end of each month during gin protection payments or supplemental dairy payments shall commence beginning which payment reductions are in effect production margin protection payments on the first day of the month immediately under the stabilization program, each han- until the fees or premiums are fully paid. following the date of the announcement by dler shall remit to the Secretary an amount (b) ENFORCEMENT.—The Secretary may the Secretary under subsection (a). equal to the amount by which payments to participating dairy operations are reduced take such action as necessary to collect ad- SEC. 1433. MILK MARKETINGS INFORMATION. by the handler under section 1434. ministration fees and premium payments for (a) COLLECTION OF MILK MARKETING supplemental production margin protection. (b) DEPOSIT OF REMITTED FUNDS.—All funds DATA.—The Secretary shall establish, by reg- received under subsection (a) shall be avail- Subpart B—Dairy Market Stabilization ulation, a process to collect from partici- able to the Secretary, without further appro- Program pating dairy operations and handlers such priation and until expended, for use or trans- SEC. 1431. ESTABLISHMENT OF DAIRY MARKET information that the Secretary considers fer as provided in subsection (c). STABILIZATION PROGRAM. necessary for each month during which the (c) USE OF FUNDS.— (a) PROGRAM REQUIRED; PURPOSE.—Effec- stabilization program is in effect. (1) AVAILABILITY FOR CERTAIN COMMODITY tive not later than 120 days after the effec- (b) REDUCE REGULATORY BURDEN.—When DONATIONS.—Not later than 90 days after the tive date of this subtitle, the Secretary shall implementing the process under subsection funds described in subsection (a) are due as establish and administer a dairy market sta- (a), the Secretary shall minimize the regu- determined by the Secretary, the Secretary bilization program applicable to partici- latory burden on participating dairy oper- shall obligate the funds for the purpose of— pating dairy operations for the purpose of as- ations and handlers. (A) purchasing dairy products for donation sisting in balancing the supply of milk with SEC. 1434. CALCULATION AND COLLECTION OF to food banks and other programs that the demand when participating dairy operations REDUCED DAIRY OPERATION PAY- Secretary determines appropriate; and are experiencing low or negative operating MENTS. (B) expanding consumption and building margins. (a) REDUCED PARTICIPATING DAIRY OPER- demand for dairy products. (b) ELECTION OF STABILIZATION PROGRAM ATION PAYMENTS REQUIRED.—During any (2) NO DUPLICATION OF EFFORT.—The Sec- BASE CALCULATION METHOD.— month in which payment reductions are in retary shall ensure that expenditures under (1) ELECTION.—When a dairy operation effect under the stabilization program, each paragraph (1) are compatible with, and do signs up under section 1412 to participate in handler shall reduce payments to each par- not duplicate, programs supported by the the production margin protection program, ticipating dairy operation from whom the dairy research and promotion activities con- the dairy operation shall inform the Sec- handler receives milk. ducted under the Dairy Production Stabiliza- retary of the method by which the stabiliza- (b) REDUCTIONS BASED ON ACTUAL DAIRY tion Act of 1983 (7 U.S.C. 4501 et seq.). tion program base for the participating dairy PRODUCTION MARGIN.— (3) ACCOUNTING.—The Secretary shall keep operation will be calculated under paragraph (1) REDUCTION REQUIREMENT 1.—If the Sec- an accurate account of all funds expended (3). retary determines that the average actual under paragraph (1). (2) CHANGE IN CALCULATION METHOD.—A par- dairy production margin has been less than (d) ANNUAL REPORT.—Not later than De- ticipating dairy operation may change the $6.00 but greater than $5.00 per hundred- cember 31 of each year that the stabilization

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December 31, 2017. ing the preceding fiscal year under sub- (a) UNLAWFUL ACT.—It shall be unlawful section (a); and a violation of the this subpart for any SEC. 1452. ADMINISTRATION AND ENFORCEMENT. (2) all expenditures made by the Secretary person subject to the stabilization program (a) IN GENERAL.—The Secretary shall pro- under subsection (b) during the preceding fis- to willfully fail or refuse to provide, or delay mulgate regulations to address administra- cal year; and the timely reporting of, accurate informa- tive and enforcement issues involved in car- (3) the impact of the stabilization program tion and remittance of funds to the Sec- rying out the production margin protection, on dairy markets. retary in accordance with this subpart. supplemental production margin protection, (e) ENFORCEMENT.—If a participating dairy (b) ORDER.—After providing notice and op- and market stabilization programs. operation or handler fails to remit or collect portunity for a hearing to an affected person, (b) RECONSTITUTION AND ELIGIBILITY the amounts by which payments to partici- the Secretary may issue an order against ISSUES.— pating dairy operations are reduced under any person to cease and desist from con- (1) RECONSTITUTION.—Using authorities section 1434, the participating dairy oper- tinuing any violation of this subpart. under section 1001(f) and 1001B of the Food ation or handler responsible for the failure (c) APPEAL.—An order of the Secretary Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), shall be liable to the Secretary for the under subsection (b) shall be final and con- the Secretary shall promulgate regulations amount that should have been remitted or clusive unless an affected person files an ap- to prohibit a dairy producer from reconsti- collected, plus interest. In addition to the peal of the order of the Secretary in United tuting a dairy operation for the sole purpose enforcement authorities available under sec- States district court not later than 30 days of the dairy producer— tion 1437, the Secretary may enforce this after the date of the issuance of the order. A (A) receiving basic margin protection; subsection in the courts of the United finding of the Secretary in the order shall be (B) purchasing supplemental margin pro- States. set aside only if the finding is not supported tection; or SEC. 1436. SUSPENSION OF REDUCED PAYMENT by substantial evidence. (C) avoiding participation in the market REQUIREMENT. (d) NONCOMPLIANCE WITH ORDER.—If a per- stabilization program. (a) DETERMINATION OF PRICES.—For pur- son subject to this subpart fails to obey an (2) ELIGIBILITY ISSUES.—Using authorities poses of this section: order issued under subsection (b) after the under section 1001(f) and 1001B of the Food (1) The price in the United States for ched- order has become final and unappealable, or Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), dar cheese and nonfat dry milk shall be de- after the appropriate United States district the Secretary shall promulgate regulations— termined by the Secretary. court has entered a final judgment in favor (A) to prohibit a scheme or device; (2) The world price of cheddar cheese and of the Secretary, the United States may (B) to provide for equitable relief; and skim milk powder shall be determined by the apply to the appropriate United States dis- (C) to provide for other issues affecting eli- Secretary. trict court for enforcement of the order. If gibility and liability issues. (b) SUSPENSION THRESHOLDS.—The sta- the court determines that the order was law- (3) ADMINISTRATIVE APPEALS.—Using au- bilization program shall be suspended or the fully made and duly served and that the per- thorities under section 1001(h) of the Food Secretary shall refrain from making the an- son violated the order, the court shall en- Security Act of 1985 (7 U.S.C. 1308(h)) and nouncement under section 1432(a) if the Sec- subtitle H of the Department of Agriculture retary determines that— force the order. SEC. 1438. AUDIT REQUIREMENTS. Reorganization Act (7 U.S.C. 6991 et seq.), the (1) the actual dairy production margin is Secretary shall promulgate regulations to (a) AUDITS OF DAIRY OPERATION AND HAN- greater than $6.00 per hundredweight of milk provide for administrative appeals of deci- DLER COMPLIANCE.— for 2 consecutive months; sions of the Secretary that are adverse to (2) the actual dairy production margin is (1) AUDITS AUTHORIZED.—If determined by the Secretary to be necessary to ensure com- participants of the programs described in equal to or less than $6.00 (but greater than subsection (a). $5.00) for 2 consecutive months, and during pliance by participating dairy operations and the same 2 consecutive months— handlers with the stabilization program, the PART II—DAIRY MARKET TRANSPARENCY (A) the price in the United States for ched- Secretary may conduct periodic audits of SEC. 1461. DAIRY PRODUCT MANDATORY RE- dar cheese is equal to or greater than the participating dairy operations and handlers. PORTING. world price of cheddar cheese; or (2) SAMPLE OF DAIRY OPERATIONS.—Any (a) DEFINITIONS.—Section 272(1)(A) of the (B) the price in the United States for non- audit conducted under this subsection shall Agricultural Marketing Act of 1946 (7 U.S.C. fat dry milk is equal to or greater than the include, at a minimum, investigation of a 1637a(1)(A)) is amended by inserting ‘‘, or any world price of skim milk powder; statistically valid and random sample of par- other products that may significantly aid (3) the actual dairy production margin is ticipating dairy operations. price discovery in the dairy markets, as de- equal to or less than $5.00 (but greater than (b) SUBMISSION OF RESULTS.—The Sec- termined by the Secretary’’ after ‘‘of 1937’’. $4.00) for 2 consecutive months, and during retary shall submit the results of any audit (b) MANDATORY REPORTING FOR DAIRY the same 2 consecutive months— conducted under subsection (a) to the Com- PRODUCTS.—Section 273(b) of the Agricul- (A) the price in the United States for ched- mittee on Agriculture of the House of Rep- tural Marketing Act of 1946 (7 U.S.C. dar cheese is more than 5 percent above the resentatives and the Committee on Agri- 1637b(b)) is amended— world price of cheddar cheese; or culture, Nutrition, and Forestry of the Sen- (1) by striking paragraph (1) and inserting (B) the price in the United States for non- ate and include such recommendations as the following new paragraph: fat dry milk is more than 5 percent above the Secretary considers appropriate regard- ‘‘(1) IN GENERAL.—In establishing the pro- the world price of skim milk powder; or ing the stabilization program. gram, the Secretary shall only— (4) the actual dairy production margin is SEC. 1439. STUDY; REPORT. ‘‘(A)(i) subject to the conditions described equal to or less than $4.00 for 2 consecutive (a) IN GENERAL.—The Secretary shall di- in paragraph (2), require each manufacturer months, and during the same 2 consecutive rect the Office of the Chief Economist to to report to the Secretary, more frequently months— conduct a study of the impacts of the pro- than once per month, information con- (A) the price in the United States for ched- gram established under section 1431(a). cerning the price, quantity, and moisture dar cheese is more than 7 percent above the (b) CONSIDERATIONS.—The study conducted content of dairy products sold by the manu- world price of cheddar cheese; or under subsection (a) shall consider— facturer and any other product characteris- (B) the price in the United States for non- (1) the economic impact of the program tics that may significantly aid price dis- fat dry milk is more than 7 percent above throughout the dairy product value chain, covery in the dairy markets, as determined the world price of skim milk powder. including the impact on producers, proc- by the Secretary; and (c) IMPLEMENTATION BY HANDLERS.—Effec- essors, domestic customers, export cus- ‘‘(ii) modify the format used to provide the tive on the day after the date of the an- tomers, actual market growth and potential information on the day before the date of en- nouncement by the Secretary under sub- market growth, farms of different sizes, and actment of this subtitle to ensure that the section (b) of the suspension of the stabiliza- different regions and States; and information can be readily understood by tion program, the handler shall cease reduc- (2) the impact of the program on the com- market participants; and ing payments to participating dairy oper- petitiveness of the United States dairy in- ‘‘(B) require each manufacturer and other ations under the stabilization program. dustry in international markets. person storing dairy products (including (d) CONDITION ON RESUMPTION OF STABILIZA- (c) REPORT.—Not later than December 1, dairy products in cold storage) to report to TION PROGRAM.—Upon the announcement by 2016, the Office of the Chief Economist shall the Secretary, more frequently than once per the Secretary under subsection (b) that the submit to the Committee on Agriculture of month, information on the quantity of dairy stabilization program has been suspended, the House of Representatives and the Com- products stored.’’; and the stabilization program may not be imple- mittee on Agriculture, Nutrition, and For- (2) in paragraph (2), by inserting ‘‘or those mented again until, at the earliest— estry of the Senate a report that describes that may significantly aid price discovery in

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the dairy markets’’ after ‘‘Federal milk mar- (B) in subparagraph (B), by striking ‘‘Au- (1) ELIGIBLE PRODUCER ON A FARM.— keting order’’ each place it appears in sub- gust 31, 2012, 45 percent; and’’ and inserting (A) IN GENERAL.—The term ‘‘eligible pro- paragraphs (A), (B), and (C). ‘‘June 30, 2013, 45 percent.’’; and ducer on a farm’’ means an individual or en- SEC. 1462. FEDERAL MILK MARKETING ORDER IN- (C) by striking subparagraph (C). tity described in subparagraph (B) that, as FORMATION. (2) EXTENSION.—Section 1506(h)(1) of the determined by the Secretary, assumes the (a) INFORMATION CLEARINGHOUSE.— Food, Conservation, and Energy Act of 2008 production and market risks associated with (1) IN GENERAL.—The Secretary shall, on (7 U.S.C. 8773(h)(1)) is amended by striking the agricultural production of crops or live- behalf of each milk marketing order issued ‘‘September 30, 2012’’ and inserting ‘‘June 30, stock. under the Agricultural Adjustment Act (7 2013’’. (B) DESCRIPTION.—An individual or entity U.S.C. 601 et seq.), reenacted with amend- (3) REPEAL.—Effective July 1, 2013, section referred to in subparagraph (A) is— ments by the Agricultural Marketing Agree- 1506 of the Food, Conservation, and Energy (i) a citizen of the United States; ment Act of 1937, establish an information Act of 2008 (7 U.S.C. 8773) is repealed. (ii) a resident alien; clearinghouse for the purposes of educating SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE (iii) a partnership of citizens of the United the public about the Federal milk marketing PROGRAM. States; or order system and any marketing order (a) REPEAL.—Section 153 of the Food Secu- (iv) a corporation, limited liability cor- referenda, including proposal information rity Act of 1985 (15 U.S.C. 713a–14) is repealed. poration, or other farm organizational struc- and timelines that shall be kept current and (b) CONFORMING AMENDMENTS.—Section ture organized under State law. 902(2) of the Trade Sanctions Reform and Ex- updated as information becomes available. (2) FARM.— port Enhancement Act of 2000 (22 U.S.C. (2) REQUIREMENTS.—Information under (A) IN GENERAL.—The term ‘‘farm’’ means, 7201(2)) is amended— paragraph (1) shall include— in relation to an eligible producer on a farm, (1) by striking subparagraph (D); and (A) information on procedures by which co- the total of all crop acreage in all counties (2) by redesignating subparagraphs (E) and operatives vote; that is planted or intended to be planted for (F) as subparagraphs (D) and (E), respec- (B) if applicable, information on the man- harvest, for sale, or on-farm livestock feed- tively. ner by which producers may cast an indi- ing (including native grassland intended for vidual ballot; SEC. 1473. EXTENSION OF DAIRY FORWARD PRIC- haying) by the eligible producer. ING PROGRAM. (B) AQUACULTURE.—In the case of aqua- (C) in applicable, instructions on the man- Section 1502(e) of the Food, Conservation, ner in which to vote online; and Energy Act of 2008 (7 U.S.C. 8772(e)) is culture, the term ‘‘farm’’ means, in relation (D) due dates for each specific referendum; amended— to an eligible producer on a farm, all fish (E) the text of each referendum question (1) in paragraph (1), by striking ‘‘2012’’ and being produced in all counties that are in- under consideration; inserting ‘‘2017’’; and tended to be harvested for sale by the eligi- (F) a description in plain language of the (2) in paragraph (2), by striking ‘‘2015’’ and ble producer. question; inserting ‘‘2020’’. (C) HONEY.—In the case of honey, the term (G) any relevant background information ‘‘farm’’ means, in relation to an eligible pro- SEC. 1474. EXTENSION OF DAIRY INDEMNITY to the question; and PROGRAM. ducer on a farm, all bees and beehives in all (H) any other information that increases Section 3 of Public Law 90–484 (7 U.S.C. counties that are intended to be harvested Federal milk marketing order transparency. 450l) is amended by striking ‘‘2012’’ and infor a honey crop for sale by the eligible pro- (b) NOTIFICATION LIST FOR UPCOMING REF- serting ‘‘2017’’. ducer. ERENDUM.—Each Federal milk marketing SEC. 1475. EXTENSION OF DAIRY PROMOTION (3) FARM-RAISED FISH.—The term ‘‘farm- order shall— AND RESEARCH PROGRAM. raised fish’’ means any aquatic species that (1) make available the information de- Section 113(e)(2) of the Dairy Production is propagated and reared in a controlled en- scribed in subsection (b) through an Internet Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) vironment. site; and is amended by striking ‘‘2012’’ and inserting (4) LIVESTOCK.—The term ‘‘livestock’’ in- (2) publicize the information in major agri- ‘‘2017’’. cludes— culture and dairy-specific publications on SEC. 1476. EXTENSION OF FEDERAL MILK MAR- (A) cattle (including dairy cattle); upcoming referenda. KETING ORDER REVIEW COMMIS- (B) bison; (c) STUDY.— SION. (C) poultry; (1) IN GENERAL.—The Secretary shall con- Section 1509(a) of the Food, Conservation, (D) sheep; duct a study of the feasibility of establishing and Energy Act of 2008 (Public Law 110–246; (E) swine; 2 classes of milk, a fluid class and a manu- 122 Stat. 1726) is amended by inserting ‘‘or (F) horses; and facturing class, to replace the 4–class system other funds’’ after ‘‘Subject to the avail- (G) other livestock, as determined by the in effect on the date of enactment of this Act ability of appropriations’’. Secretary. in administering Federal milk marketing or- PART IV—FEDERAL MILK MARKETING (b) LIVESTOCK INDEMNITY PAYMENTS.— ders. ORDER REFORM (1) PAYMENTS.—For each of fiscal years (2) FEDERAL MILK MARKET ORDER REVIEW SEC. 1481. FEDERAL MILK MARKETING ORDERS. 2012 through 2017, the Secretary shall use COMMISSION.—The Secretary may elect to use (a) AMENDMENTS.—The Secretary shall pro- such sums as are necessary of the funds of the Federal Milk Market Order Review Com- vide an analysis on the effects of amending the Commodity Credit Corporation to make mission established under section 1509(a) of each Federal milk marketing order issued livestock indemnity payments to eligible the Food, Conservation, and Energy Act of under section 8c of the Agricultural Adjust- producers on farms that have incurred live- 2008 (Public Law 110–246; 122 Stat. 1726), or ment Act (7 U.S.C. 608c), reenacted with stock death losses in excess of the normal documents of the Commission, to conduct all amendments by the Agricultural Marketing mortality, as determined by the Secretary, or part of the study. Agreement Act of 1937 (in this part referred due to— (3) REPORT.—Not later than 180 days after to as a ‘‘milk marketing order’’), as required (A) attacks by animals reintroduced into the date of enactment of this Act, the Sec- by this section. the wild by the Federal Government or pro- retary shall submit to the Committee on Ag- (b) USE OF END-PRODUCT PRICE FOR- tected by Federal law, including wolves; or riculture of the House of Representatives MULAS.—In carrying out subsection (a), the (B) adverse weather, as determined by the and the Committee on Agriculture, Nutri- Secretary shall— Secretary, during the calendar year, includ- tion, and Forestry of the Senate a report (1) consider replacing the use of end-prod- ing losses due to hurricanes, floods, bliz- that describes the results of the study re- uct price formulas with other pricing alter- zards, disease, wildfires, extreme heat, and quired under this subsection, including any natives; and extreme cold. recommendations. (2) submit to the Committee on Agri- (2) PAYMENT RATES.—Indemnity payments culture of the House of Representatives and PART III—REPEAL OR REAUTHORIZATION to an eligible producer on a farm under para- the Committee on Agriculture, Nutrition, OF OTHER DAIRY-RELATED PROVISIONS graph (1) shall be made at a rate of 65 per- and Forestry of the Senate a report describ- SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE cent of the market value of the applicable ing the findings of the Secretary on the im- livestock on the day before the date of death SUPPORT AND MILK INCOME LOSS pact of the action considered under para- CONTRACT PROGRAMS. of the livestock, as determined by the Sec- graph (1). (a) REPEAL OF DAIRY PRODUCT PRICE SUP- retary. PORT PROGRAM.—Section 1501 of the Food, PART V—EFFECTIVE DATE (3) SPECIAL RULE FOR PAYMENTS MADE DUE Conservation, and Energy Act of 2008 (7 SEC. 1491. EFFECTIVE DATE. TO DISEASE.—The Secretary shall ensure that U.S.C. 8771) is repealed. Except as otherwise provided in this sub- payments made to an eligible producer under (b) REPEAL OF MILK INCOME LOSS CONTRACT title, this subtitle and the amendments made paragraph (1) are not made for the same live- PROGRAM.— by this subtitle take effect on October 1, stock losses for which compensation is pro- (1) PAYMENTS UNDER MILK INCOME LOSS CON- 2012. vided pursuant to section 10407(d) of the Ani- TRACT PROGRAM.—Section 1506(c)(3) of the Subtitle E—Supplemental Agricultural mal Health Protection Act (7 U.S.C. 8306(d)). Food, Conservation, and Energy Act of 2008 Disaster Assistance Programs (c) LIVESTOCK FORAGE DISASTER PRO- (7 U.S.C. 8773(c)(3)) is amended— SEC. 1501. SUPPLEMENTAL AGRICULTURAL DIS- GRAM.— (A) in subparagraph (A), by inserting ASTER ASSISTANCE PROGRAMS. (1) ESTABLISHMENT.—There is established a ‘‘and’’ after the semicolon; (a) DEFINITIONS.—In this section: livestock forage disaster program to provide

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4498 CONGRESSIONAL RECORD — SENATE June 25, 2012 1 source for livestock forage disaster assist- grazing land owned by another person on a (I) in the case of an adult beef cow, 15.7 ance for weather-related forage losses, as de- rate-of-gain basis. pounds of corn per day; or termined by the Secretary, by combining— (E) NORMAL CARRYING CAPACITY.—The term (II) in the case of any other type of weight (A) the livestock forage assistance func- ‘‘normal carrying capacity’’, with respect to of livestock, an amount determined by the tions of— each type of grazing land or pastureland in a Secretary that represents the average num- (i) the noninsured crop disaster assistance county, means the normal carrying capacity, ber of pounds of corn per day necessary to program established by section 196 of the as determined under paragraph (4)(D)(i), that feed the livestock. Federal Agriculture Improvement and Re- would be expected from the grazing land or (iii) CORN PRICE PER POUND.—For purposes form Act of 1996 (7 U.S.C. 7333); and pastureland for livestock during the normal of clause (i)(III), the corn price per pound (ii) the emergency assistance for livestock, grazing period, in the absence of an eligible shall equal the quotient obtained by divid- honey bees, and farm-raised fish program forage loss that diminishes the production of ing— under section 531(e) of the Federal Crop In- the grazing land or pastureland. (I) the higher of— surance Act (7 U.S.C. 1531(e)) (as in existence (F) NORMAL GRAZING PERIOD.—The term (aa) the national average corn price per on the day before the date of enactment of ‘‘normal grazing period’’, with respect to a bushel for the 12-month period immediately this Act); and county, means the normal grazing period preceding March 1 of the year for which the (B) the livestock forage disaster program during the calendar year for the county, as disaster assistance is calculated; or under section 531(d) of the Federal Crop In- determined under paragraph (4)(D)(i). (bb) the national average corn price per surance Act (7 U.S.C. 1531(d)) (as in existence (3) PROGRAM.—For each of fiscal years 2012 bushel for the 24-month period immediately through 2017, the Secretary shall use such preceding that March 1; by on the day before the date of enactment of sums as are necessary of the funds of the (II) 56. this Act). Commodity Credit Corporation to provide (D) NORMAL GRAZING PERIOD AND DROUGHT (2) DEFINITIONS.—In this subsection: compensation under paragraphs (4) through MONITOR INTENSITY.— (A) COVERED LIVESTOCK.— (6), as determined by the Secretary for eligi- (i) FSA COUNTY COMMITTEE DETERMINA- (i) IN GENERAL.—Except as provided in ble forage losses affecting covered livestock TIONS.— clause (ii), the term ‘‘covered livestock’’ of eligible livestock producers. (I) IN GENERAL.—The Secretary shall deter- means livestock of an eligible livestock pro- (4) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES mine the normal carrying capacity and nor- ducer that, during the 60 days prior to the DUE TO DROUGHT CONDITIONS.— mal grazing period for each type of grazing beginning date of an eligible forage loss, as (A) ELIGIBLE FORAGE LOSSES.— land or pastureland in the county served by determined by the Secretary, the eligible (i) IN GENERAL.—An eligible livestock pro- the applicable Farm Service Agency com- livestock producer— ducer of covered livestock may receive as- mittee. (I) owned; sistance under this paragraph for eligible (II) CHANGES.—No change to the normal (II) leased; forage losses that occur due to drought on carrying capacity or normal grazing period (III) purchased; land that— established for a county under subclause (I) (IV) entered into a contract to purchase; (I) is native or improved pastureland with shall be made unless the change is requested (V) was a contract grower; or permanent vegetative cover; or by the appropriate State and county Farm (VI) sold or otherwise disposed of due to an (II) is planted to a crop planted specifically Service Agency committees. eligible forage loss during— for the purpose of providing grazing for cov- (ii) DROUGHT INTENSITY.— (aa) the current production year; or ered livestock. (I) D2.—An eligible livestock producer that (bb) subject to paragraph (4)(B)(ii), 1 or (ii) EXCLUSIONS.—An eligible livestock pro- owns or leases grazing land or pastureland both of the 2 production years immediately ducer may not receive assistance under this that is physically located in a county that is preceding the current production year. paragraph for eligible forage losses that rated by the U.S. Drought Monitor as having (ii) EXCLUSION.—The term ‘‘covered live- occur on land used for haying or grazing a D2 (severe drought) intensity in any area stock’’ does not include livestock that were under the conservation reserve program es- of the county for at least 8 consecutive or would have been in a feedlot, on the begin- tablished under subchapter B of chapter 1 of weeks during the normal grazing period for ning date of the eligible forage loss, as a part subtitle D of title XII of the Food Security the county, as determined by the Secretary, of the normal business operation of the eligi- Act of 1985 (16 U.S.C. 3831 et seq.), unless the shall be eligible to receive assistance under ble livestock producer, as determined by the land is grassland eligible for the conserva- this paragraph in an amount equal to 1 Secretary. tion reserve program under section 1231(d)(2) monthly payment using the monthly pay- (B) DROUGHT MONITOR.—The term ‘‘drought of the Food Security Act of 1985 (16 U.S.C. ment rate determined under subparagraph monitor’’ means a system for classifying 3831(d)(2)) (as amended by section 2001 of this (B). drought severity according to a range of ab- Act). (II) D3.—An eligible livestock producer normally dry to exceptional drought, as de- (B) MONTHLY PAYMENT RATE.— that owns or leases grazing land or fined by the Secretary. (i) IN GENERAL.—Except as provided in pastureland that is physically located in a (C) ELIGIBLE FORAGE LOSS.—The term ‘‘eli- clause (ii), the payment rate for assistance county that is rated by the U.S. Drought gible forage loss’’ means 1 or more forage for 1 month under this paragraph shall, in Monitor as having at least a D3 (extreme losses that occur due to weather-related con- the case of drought, be equal to 60 percent of drought) intensity in any area of the county ditions, including drought, flood, blizzard, the lesser of— at any time during the normal grazing pe- hail, excessive moisture, hurricane, and fire, (I) the monthly feed cost for all covered riod for the county, as determined by the occurring during the normal grazing period, livestock owned or leased by the eligible Secretary, shall be eligible to receive assist- as determined by the Secretary, if the for- livestock producer, as determined under sub- ance under this paragraph— age— paragraph (C); or (aa) in an amount equal to 3 monthly pay- (i) is grown on land that is native or im- (II) the monthly feed cost calculated by ments using the monthly payment rate de- proved pastureland with permanent vegeta- using the normal carrying capacity of the el- termined under subparagraph (B); tive cover; or igible grazing land of the eligible livestock (bb) if the county is rated as having a D3 (ii) is a crop planted specifically for the producer. (extreme drought) intensity in any area of purpose of providing grazing for covered live- (ii) PARTIAL COMPENSATION.—In the case of the county for at least 4 weeks during the stock of an eligible livestock producer. an eligible livestock producer that sold or normal grazing period for the county, or is (D) ELIGIBLE LIVESTOCK PRODUCER.— otherwise disposed of covered livestock due rated as having a D4 (exceptional drought) (i) IN GENERAL.—The term ‘‘eligible live- to drought conditions in 1 or both of the 2 intensity in any area of the county at any stock producer’’ means an eligible producer production years immediately preceding the time during the normal grazing period, in an on a farm that— current production year, as determined by amount equal to 4 monthly payments using (I) is an owner, cash or share lessee, or con- the Secretary, the payment rate shall be 80 the monthly payment rate determined under tract grower of covered livestock that pro- percent of the payment rate otherwise cal- subparagraph (B); or vides the pastureland or grazing land, includ- culated in accordance with clause (i). (cc) if the county is rated as having a D4 ing cash-leased pastureland or grazing land, (C) MONTHLY FEED COST.— (exceptional drought) intensity in any area for the covered livestock; (i) IN GENERAL.—The monthly feed cost of the county for at least 4 weeks during the (II) provides the pastureland or grazing shall equal the product obtained by multi- normal grazing period, in an amount equal land for covered livestock, including cash- plying— to 5 monthly payments using the monthly leased pastureland or grazing land that is (I) 30 days; rate determined under subparagraph (B). physically located in a county affected by an (II) a payment quantity that is equal to (iii) ANNUAL PAYMENT BASED ON DROUGHT eligible forage loss; the feed grain equivalent, as determined CONDITIONS DETERMINED BY MEANS OTHER (III) certifies the eligible forage loss; and under clause (ii); and THAN THE U.S. DROUGHT MONITOR.— (IV) meets all other eligibility require- (III) a payment rate that is equal to the (I) IN GENERAL.—An eligible livestock pro- ments established under this subsection. corn price per pound, as determined under ducer that owns grazing land or pastureland (ii) EXCLUSION.—The term ‘‘eligible live- clause (iii). that is physically located in a county that stock producer’’ does not include an owner, (ii) FEED GRAIN EQUIVALENT.—For purposes has experienced on average, over the pre- cash or share lessee, or contract grower of of clause (i)(II), the feed grain equivalent ceding calendar year, precipitation levels livestock that rents or leases pastureland or shall equal— that are 50 percent or more below normal

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4499 levels, according to sufficient documentation sistance for eligible forage losses under ei- replant trees as a result of damage or tree as determined by the Secretary, may be eli- ther paragraph (4), (5), or (6), if applicable, mortality due to a natural disaster, as deter- gible, subject to a determination by the Sec- but may not receive assistance under more mined by the Secretary, in excess of 15 per- retary, to receive assistance under this para- than 1 of those paragraphs for the same loss, cent damage or mortality (adjusted for nor- graph in an amount equal to not more than as determined by the Secretary. mal tree damage and mortality). 1 monthly payment using the monthly pay- (8) DETERMINATIONS BY SECRETARY.—A de- (4) LIMITATIONS ON ASSISTANCE.— ment rate under subparagraph (B). termination made by the Secretary under (A) DEFINITIONS OF LEGAL ENTITY AND PER- (II) NO DUPLICATE PAYMENT.—A producer this subsection shall be final and conclusive. SON.—In this paragraph, the terms ‘‘legal en- may not receive a payment under both (d) EMERGENCY ASSISTANCE FOR LIVESTOCK, tity’’ and ‘‘person’’ have the meaning given clause (ii) and this clause. HONEY BEES, AND FARM-RAISED FISH.— those terms in section 1001(a) of the Food Se- (5) ASSISTANCE FOR LOSSES DUE TO FIRE ON (1) IN GENERAL.—For each of fiscal years curity Act of 1985 (7 U.S.C. 1308(a)). PUBLIC MANAGED LAND.— 2012 through 2017, the Secretary shall use not (B) AMOUNT.—The total amount of pay- (A) IN GENERAL.—An eligible livestock pro- more than $5,000,000 of the funds of the Com- ments received, directly or indirectly, by a ducer may receive assistance under this modity Credit Corporation to provide emer- person or legal entity (excluding a joint ven- paragraph only if— gency relief to eligible producers of live- ture or general partnership) under this sub- (i) the eligible forage losses occur on stock, honey bees, and farm-raised fish to aid section may not exceed $100,000 for any crop rangeland that is managed by a Federal in the reduction of losses due to disease, ad- year, or an equivalent value in tree seed- agency; and verse weather, or other conditions, such as lings. (ii) the eligible livestock producer is pro- blizzards and wildfires, as determined by the (C) ACRES.—The total quantity of acres hibited by the Federal agency from grazing Secretary, that are not covered under sub- planted to trees or tree seedlings for which a the normal permitted livestock on the man- section (b) or (c). person or legal entity shall be entitled to re- aged rangeland due to a fire. (2) USE OF FUNDS.—Funds made available ceive payments under this subsection may (B) PAYMENT RATE.—The payment rate for under this subsection shall be used to reduce not exceed 500 acres. assistance under this paragraph shall be losses caused by feed or water shortages, dis- (f) PAYMENTS.— equal to 50 percent of the monthly feed cost ease, or other factors as determined by the (1) PAYMENT LIMITATIONS.— for the total number of livestock covered by Secretary. (A) DEFINITIONS OF LEGAL ENTITY AND PER- VAILABILITY OF FUNDS the Federal lease of the eligible livestock (3) A .—Any funds SON.—In this subsection, the terms ‘‘legal en- producer, as determined under paragraph made available under this subsection shall tity’’ and ‘‘person’’ have the meanings given (4)(C). remain available until expended. those terms in section 1001(a) of the Food Se- (e) TREE ASSISTANCE PROGRAM.— (C) PAYMENT DURATION.— curity Act of 1985 (7 U.S.C. 1308(a)). (1) DEFINITIONS.—In this subsection: (i) IN GENERAL.—Subject to clause (ii), an (B) AMOUNT.—The total amount of disaster (A) ELIGIBLE ORCHARDIST.—The term ‘‘eli- eligible livestock producer shall be eligible assistance payments received, directly or in- gible orchardist’’ means a person that pro- to receive assistance under this paragraph directly, by a person or legal entity (exclud- duces annual crops from trees for commer- for the period— ing a joint venture or general partnership) cial purposes. (I) beginning on the date on which the Fed- under this section (excluding payments re- eral agency excludes the eligible livestock (B) NATURAL DISASTER.—The term ‘‘natural disaster’’ means plant disease, insect infesta- ceived under subsection (e)) may not exceed producer from using the managed rangeland $100,000 for any crop year. for grazing; and tion, drought, fire, freeze, flood, earthquake, (C) DIRECT ATTRIBUTION.—Subsections (d) (II) ending on the last day of the Federal lightning, or other occurrence, as determined by the Secretary. and (e) of section 1001 of the Food Security lease of the eligible livestock producer. Act of 1985 (7 U.S.C. 1308) or any successor IMITATION.—An eligible livestock pro- (C) NURSERY TREE GROWER.—The term (ii) L provisions relating to direct attribution ducer may only receive assistance under this ‘‘nursery tree grower’’ means a person who shall apply with respect to assistance pro- paragraph for losses that occur on not more produces nursery, ornamental, fruit, nut, or vided under this section. than 180 days per year. Christmas trees for commercial sale, as de- (2) PAYMENT DELIVERY.—The Secretary (6) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES termined by the Secretary. shall make payments under this section DUE TO OTHER THAN DROUGHT OR FIRE.— (D) TREE.—The term ‘‘tree’’ includes a after October 1, 2013, for losses incurred in (A) ELIGIBLE FORAGE LOSSES.— tree, bush, and vine. the 2012 and 2013 fiscal years, and as soon as (i) IN GENERAL.—Subject to subparagraph (2) ELIGIBILITY.— practicable for losses incurred in any year (B), an eligible livestock producer of covered (A) LOSS.—Subject to subparagraph (B), for thereafter. livestock may receive assistance under this each of fiscal years 2012 through 2017, the paragraph for eligible forage losses that Secretary shall use such sums as are nec- Subtitle F—Administration occur due to weather-related conditions essary of the funds of the Commodity Credit SEC. 1601. ADMINISTRATION GENERALLY. other than drought or fire on land that— Corporation to provide assistance— (a) USE OF COMMODITY CREDIT CORPORA- (I) is native or improved pastureland with (i) under paragraph (3) to eligible orchard- TION.—The Secretary shall use the funds, fa- permanent vegetative cover; or ists and nursery tree growers that planted cilities, and authorities of the Commodity (II) is planted to a crop planted specifically trees for commercial purposes but lost the Credit Corporation to carry out this title. for the purpose of providing grazing for cov- trees as a result of a natural disaster, as de- (b) DETERMINATIONS BY SECRETARY.—A de- ered livestock. termined by the Secretary; and termination made by the Secretary under (ii) EXCLUSIONS.—An eligible livestock pro- (ii) under paragraph (3)(B) to eligible or- this title shall be final and conclusive. ducer may not receive assistance under this chardists and nursery tree growers that have (c) REGULATIONS.— paragraph for eligible forage losses that a production history for commercial pur- (1) IN GENERAL.—Except as otherwise pro- occur on land used for haying or grazing poses on planted or existing trees but lost vided in this subsection, not later than 90 under the conservation reserve program es- the trees as a result of a natural disaster, as days after the date of enactment of this Act, tablished under subchapter B of chapter 1 of determined by the Secretary. the Secretary and the Commodity Credit subtitle D of title XII of the Food Security (B) LIMITATION.—An eligible orchardist or Corporation, as appropriate, shall promul- Act of 1985 (16 U.S.C. 3831 et seq.), unless the nursery tree grower shall qualify for assist- gate such regulations as are necessary to im- land is grassland eligible for the conserva- ance under subparagraph (A) only if the tree plement this title and the amendments made tion reserve program under section 1231(d)(2) mortality of the eligible orchardist or nurs- by this title. of the Food Security Act of 1985 (16 U.S.C. ery tree grower, as a result of damaging (2) PROCEDURE.—The promulgation of the 3831(d)(2)) (as amended by section 2001 of this weather or related condition, exceeds 15 per- regulations and administration of this title Act). cent (adjusted for normal mortality). and the amendments made by this title and (B) PAYMENTS FOR ELIGIBLE FORAGE (3) ASSISTANCE.—Subject to paragraph (4), sections 11001 and 11011 of this Act shall be LOSSES.— the assistance provided by the Secretary to made without regard to— (i) IN GENERAL.—The Secretary shall pro- eligible orchardists and nursery tree growers (A) the notice and comment provisions of vide assistance under this paragraph to an for losses described in paragraph (2) shall section 553 of title 5, United States Code; eligible livestock producer for eligible forage consist of— (B) chapter 35 of title 44, United States losses that occur due to weather-related con- (A)(i) reimbursement of 65 percent of the Code (commonly known as the ‘‘Paperwork ditions other than— cost of replanting trees lost due to a natural Reduction Act’’); and (I) drought under paragraph (4); and disaster, as determined by the Secretary, in (C) the Statement of Policy of the Sec- (II) fire on public managed land under excess of 15 percent mortality (adjusted for retary of Agriculture effective July 24, 1971 paragraph (5). normal mortality); or (36 Fed. Reg. 13804), relating to notices of (ii) TERMS AND CONDITIONS.—The Secretary (ii) at the option of the Secretary, suffi- proposed rulemaking and public participa- shall establish terms and conditions for as- cient seedlings to reestablish a stand; and tion in rulemaking. sistance under this paragraph that are con- (B) reimbursement of 50 percent of the cost (3) CONGRESSIONAL REVIEW OF AGENCY RULE- sistent with the terms and conditions for as- of pruning, removal, and other costs incurred MAKING.—In carrying out this subsection, the sistance under this subsection. by an eligible orchardist or nursery tree Secretary shall use the authority provided (7) NO DUPLICATIVE PAYMENTS.—An eligible grower to salvage existing trees or, in the under section 808 of title 5, United States livestock producer may elect to receive as- case of tree mortality, to prepare the land to Code.

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(d) ADJUSTMENT AUTHORITY RELATED TO ‘‘(1) peanuts may not exceed $50,000; and (B) in subsection (b)(1), by striking ‘‘sub- TRADE AGREEMENTS COMPLIANCE.— ‘‘(2) 1 or more other covered commodities section (b) or (c)’’ and inserting ‘‘subsection (1) REQUIRED DETERMINATION; ADJUST- may not exceed $50,000.’’. (b)’’. MENT.—If the Secretary determines that ex- (3) Section 1001B(a) of the Food Security (b) LIMITATION ON MARKETING LOAN GAINS penditures under this title that are subject Act of 1985 (7 U.S.C. 1308–2(a)) is amended in AND LOAN DEFICIENCY PAYMENTS FOR PEA- to the total allowable domestic support lev- the matter preceding paragraph (1) by strik- NUTS AND OTHER COVERED COMMODITIES.— ing ‘‘subsections (b) and (c)’’ and inserting els under the Uruguay Round Agreements (as Section 1001 of the Food Security Act of 1985 defined in section 2 of the Uruguay Round ‘‘subsection (b)’’. (7 U.S.C. 1308) is amended by striking sub- Agreements Act (19 U.S.C. 3501)) will exceed (4) Section 1001C(a) of the Food Security section (d) and inserting the following: the allowable levels for any applicable re- Act of 1985 (7 U.S.C. 1308–3(a)) is amended by porting period, the Secretary shall, to the ‘‘(d) LIMITATION ON MARKETING LOAN GAINS inserting ‘‘title I of the Agriculture Reform, maximum extent practicable, make adjust- AND LOAN DEFICIENCY PAYMENTS FOR PEA- Food, and Jobs Act of 2012,’’ after ‘‘2008,’’. ments in the amount of the expenditures NUTS AND OTHER COVERED COMMODITIES.—The (d) APPLICATION.—The amendments made during that period to ensure that the expend- total amount of marketing loan gains and by this section shall apply beginning with itures do not exceed the allowable levels. loan deficiency payments received, directly the 2013 crop year. (2) CONGRESSIONAL NOTIFICATION.—Before or indirectly, by a person or legal entity (ex- SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARM- making any adjustment under paragraph (1), cept a joint venture or general partnership) ERS. the Secretary shall submit to the Committee for any crop year under subtitle B of the Ag- Section 1001A of the Food Security Act of on Agriculture of the House of Representa- riculture Reform, Food, and Jobs Act of 2012 1985 (7 U.S.C. 1308–1) is amended— tives and the Committee on Agriculture, Nu- (or a successor provision) for— (1) in subsection (b)(2)— trition, and Forestry of the Senate a report ‘‘(1) peanuts may not exceed $75,000; and (A) by striking ‘‘or active personal management’’ each place it appears in subpara- describing the determination made under ‘‘(2) 1 or more other covered commodities graphs (A)(i)(II) and (B)(ii); and that paragraph and the extent of the adjust- may not exceed $75,000.’’. (B) in subparagraph (C), by striking ‘‘, as ment to be made. (c) CONFORMING AMENDMENTS.— applied to the legal entity, are met by the SEC. 1602. SUSPENSION OF PERMANENT PRICE (1) Section 1001 of the Food Security Act of legal entity, the partners or members mak- SUPPORT AUTHORITY. 1985 (7 U.S.C. 1308) is amended— ing a significant contribution of personal (a) AGRICULTURAL ADJUSTMENT ACT OF (A) in subsection (a)(1), by striking ‘‘sec- labor or active personal management’’ and 1938.—The following provisions of the Agri- tion 1001 of the Food, Conservation, and En- inserting ‘‘are met by partners or members cultural Adjustment Act of 1938 shall not be ergy Act of 2008’’ and inserting ‘‘section 1104 making a significant contribution of per- applicable to the 2013 through 2017 crops of of the Agriculture Reform, Food, and Jobs sonal labor, those partners or members’’; and covered commodities (as defined in section Act of 2012’’; (2) in subsection (c)— 1104), cotton, and sugar and shall not be ap- (B) in subsection (d), by inserting ‘‘or title (A) in paragraph (1)— plicable to milk during the period beginning I of the Agriculture Reform, Food, and Jobs (i) by striking subparagraph (A) and insert- on the date of enactment of this Act through Act of 2012’’ before the period at the end; ing the following: December 31, 2017: (C) in subsection (e)— ‘‘(A) the landowner share-rents the land at (1) Parts II through V of subtitle B of title (i) in paragraph (1), by striking ‘‘sub- a rate that is usual and customary;’’; III (7 U.S.C. 1326 et seq.). sections (b) and (c) and a program described (ii) in subparagraph (B), by striking the pe- (2) In the case of upland cotton, section 377 in paragraphs (1)(C)’’ and inserting ‘‘sub- riod at the end and inserting ‘‘; and’’; and (7 U.S.C. 1377). section (b) and a program described in para- (iii) by adding at the end the following: (3) Subtitle D of title III (7 U.S.C. 1379a et graph (1)(B)’’; and ‘‘(C) the share of the payments received by seq.). (ii) in paragraph (3)(B), by striking ‘‘sub- the landowner is commensurate with the (4) Title IV (7 U.S.C. 1401 et seq.). sections (b) and (c)’’ each place it appears share of the crop or income received as (b) AGRICULTURAL ACT OF 1949.—The fol- and inserting ‘‘subsection (b)’’; rent.’’; lowing provisions of the Agricultural Act of (D) in subsection (f)— (B) in paragraph (2)(A), by striking ‘‘active 1949 shall not be applicable to the 2013 (i) by striking ‘‘or title XII’’ each place it personal management or’’; through 2017 crops of covered commodities appears in paragraphs (5)(A) and (6)(A) and (C) in paragraph (5)— (as defined in section 1104), cotton, and sugar inserting ‘‘, title I of the Agriculture Re- (i) by striking ‘‘(5)’’ and all that follows and shall not be applicable to milk during form, Food, and Jobs Act of 2012, or title through ‘‘(A) IN GENERAL.—A person’’ and in- the period beginning on the date of enact- XII’’; serting the following: ment of this Act and through December 31, (ii) in paragraph (2), by striking ‘‘Sub- ‘‘(5) CUSTOM FARMING SERVICES.—A per- 2017: sections (b) and (c)’’ and inserting ‘‘Sub- son’’; (1) Section 101 (7 U.S.C. 1441). section (b)’’; (ii) by inserting ‘‘under usual and cus- (2) Section 103(a) (7 U.S.C. 1444(a)). (iii) in paragraph (4)(B), by striking ‘‘sub- tomary terms’’ after ‘‘services’’; and (3) Section 105 (7 U.S.C. 1444b). section (b) or (c)’’ and inserting ‘‘subsection (iii) by striking subparagraph (B); and (4) Section 107 (7 U.S.C. 1445a). (b)’’; (D) by adding at the end the following: (5) Section 110 (7 U.S.C. 1445e). (iv) in paragraph (5)— ‘‘(7) FARM MANAGERS.—A person who other- (6) Section 112 (7 U.S.C. 1445g). (I) in subparagraph (A), by striking ‘‘sub- wise meets the requirements of this sub- (7) Section 115 (7 U.S.C. 1445k). section (d)’’ and inserting ‘‘subsection (c)’’; section other than (b)(2)(A)(i)(II) shall be (8) Section 201 (7 U.S.C. 1446). and considered to be actively engaged in farm- (9) Title III (7 U.S.C. 1447 et seq.). (II) in subparagraph (B), by striking ‘‘sub- ing, as determined by the Secretary, with re- (10) Title IV (7 U.S.C. 1421 et seq.), other section (b), (c), or (d)’’ and inserting ‘‘sub- spect to the farming operation, including a than sections 404, 412, and 416 (7 U.S.C. 1424, section (b) or (c)’’; and farming operation that is a sole proprietor- 1429, and 1431). (v) in paragraph (6)— ship, a legal entity such as a joint venture or (11) Title V (7 U.S.C. 1461 et seq.). (I) in subparagraph (A), by striking ‘‘sub- general partnership, or a legal entity such as (12) Title VI (7 U.S.C. 1471 et seq.). section (d), except as provided in subsection a corporation or limited partnership, if the (c) SUSPENSION OF CERTAIN QUOTA PROVI- (g)’’ and inserting ‘‘subsection (c), except as person— SIONS.—The joint resolution entitled ‘‘A provided in subsection (f)’’; and ‘‘(A) makes a significant contribution of joint resolution relating to corn and wheat (II) in subparagraph (B), by striking ‘‘sub- management to the farming operation nec- marketing quotas under the Agricultural Ad- sections (b), (c), and (d)’’ and inserting ‘‘sub- essary for the farming operation, taking into justment Act of 1938, as amended’’, approved sections (b) and (c)’’; account— May 26, 1941 (7 U.S.C. 1330 and 1340), shall not (E) in subsection (g)— ‘‘(i) the size and complexity of the farming be applicable to the crops of wheat planted (i) in paragraph (1)— operation; and for harvest in the calendar years 2013 (I) bv striking ‘‘subsection (f)(6)(A)’’ and ‘‘(ii) the management requirements nor- through 2017. inserting ‘‘subsection (e)(6)(A)’’ and mally and customarily required by similar SEC. 1603. PAYMENT LIMITATIONS. (II) by striking ‘‘subsection (b) or (c)’’ and farming operations; (a) IN GENERAL.—Section 1001 of the Food inserting ‘‘subsection (b)’’; and ‘‘(B) is the only person in the farming oper- Security Act of 1985 (7 U.S.C. 1308) is amend- (ii) in paragraph (2)(A), by striking ‘‘sub- ation qualifying as actively engaged in farmed by striking subsections (b) and (c) and in- sections (b) and (c)’’ and inserting ‘‘sub- ing; serting the following: section (b)’’; and ‘‘(C) does not use the management con- ‘‘(b) LIMITATION ON PAYMENTS FOR PEANUTS (F) by redesignating subsections (d) tribution under this paragraph to qualify as AND OTHER COVERED COMMODITIES.—The through (h) as subsections (c) through (g), re- actively engaged in more than 1 farming op- total amount of payments received, directly spectively. eration; and or indirectly, by a person or legal entity (ex- (2) Section 1001A of the Food Security Act ‘‘(D) manages a farm operation that does cept a joint venture or general partnership) of 1985 (7 U.S.C. 1308–1) is amended— not substantially share equipment, labor, or for any crop year under title I of subtitle A (A) in subsection (a), by striking ‘‘sub- management with persons or legal entities of the Agriculture Reform, Food, and Jobs sections (b) and (c)’’ and inserting ‘‘sub- that with the person collectively receive, di- Act of 2012 for— section (b)’’; and rectly or indirectly, an amount equal to

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more than the applicable limits under sec- ‘‘(C) PROHIBITION ON DELEGATION.—The Sec- made by the Agriculture Reform, Food, and tion 1001(b).’’. retary may not delegate to any other officer Jobs Act of 2012.’’. SEC. 1605. ADJUSTED GROSS INCOME LIMITA- or employee of the Department, other than SEC. 1610. TECHNICAL CORRECTIONS. TION. the Deputy Secretary of Agriculture or the (a) Section 359f(c)(1)(B) of the Agricultural (a) IN GENERAL.—Section 1001D(b)) of the Director, the authority of the Secretary with Adjustment Act of 1938 (7 U.S.C. Food Security Act of 1985 (7 U.S.C. 1308– respect to the Division. 1359ff(c)(1)(B)) is amended by adding a period 3a(b)) is amended by striking paragraph (1) ‘‘(2) EXCEPTION.—The Assistant Secretary at the end. and inserting the following: for Administration is authorized to inves- (b)(1) Section 1603(g) of the Food, Conserva- ‘‘(1) COMMODITY PROGRAMS.— tigate, enforce, and implement the provi- tion, and Energy Act of 2008 (Public Law 110– ‘‘(A) LIMITATION.—Notwithstanding any sions in law, Executive order, or regulations 246; 122 Stat. 1739) is amended in paragraphs other provision of law, a person or legal enti- that relate in general to competitive and ex- (2) through (6) and the amendments made by ty shall not be eligible to receive any benefit cepted service positions and employment those paragraphs by striking ‘‘1703(a)’’ each described in subparagraph (B) during a crop, within the Division, including the position of place it appears and inserting ‘‘1603(a)’’. fiscal or program year, as appropriate, if the Director, and such authority may be further (2) This subsection and the amendments average adjusted gross income (or com- delegated to subordinate officials.’’. made by this subsection take effect as if in- parable measure over the 3 taxable years pre- (b) DETERMINATION OF APPEALABILITY OF cluded in the Food, Conservation, and En- ceding the most immediately preceding com- AGENCY DECISIONS.—Section 272 of the De- ergy Act of 2008 (Public Law 110–246; 122 Stat. plete taxable year, as determined by the Sec- partment of Agriculture Reorganization Act 1651). retary) of the person or legal entity exceeds of 1994 (7 U.S.C. 6992) is amended by striking SEC. 1611. ASSIGNMENT OF PAYMENTS. $750,000. subsection (d) and inserting the following: (a) IN GENERAL.—The provisions of section ‘‘(B) COVERED BENEFITS.—Subparagraph (A) ‘‘(d) DETERMINATION OF APPEALABILITY OF 8(g) of the Soil Conservation and Domestic applies with respect to the following: AGENCY DECISIONS.— Allotment Act (16 U.S.C. 590h(g)), relating to ‘‘(i) A payment under section 1105 of the ‘‘(1) DEFINITION OF A MATTER OF GENERAL assignment of payments, shall apply to pay- Agriculture Reform, Food, and Jobs Act of APPLICABILITY.—In this subsection, the term ments made under this title. 2012. ‘a matter of general applicability’ means a (b) NOTICE.—The producer making the as- ‘‘(ii) A marketing loan gain or loan defi- matter that challenges the merits or author- signment, or the assignee, shall provide the ciency payment under subtitle B of title I of ity of a rule, procedure, local or national Secretary with notice, in such manner as the the Agriculture Reform, Food, and Jobs Act program practice, or determination of an Secretary may require, of any assignment of 2012. agency that applies, or can apply, to more made under this section. ‘‘(iii) A payment under subtitle E of the than 1 interested party as opposed to the SEC. 1612. TRACKING OF BENEFITS. Agriculture Reform, Food, and Jobs Act of particular application of the rule, procedure, As soon as practicable after the date of en- 2012.’’. or practice to a specific set of facts or the actment of this Act, the Secretary may ‘‘(iv) A payment under section 196 of the facts themselves as the facts apply to 1 par- track the benefits provided, directly or indi- Federal Agriculture Improvement and Re- ticular interested party. rectly, to individuals and entities under ti- form Act of 1996 (7 U.S.C. 7333).’’. ‘‘(2) MATTERS NOT SUBJECT TO APPEAL.—The tles I and II and the amendments made by (b) APPLICATION.—The amendments made Division may not hear appeals— those titles. by this section shall apply beginning with ‘‘(A) unless the determination of the agen- SEC. 1613. SIGNATURE AUTHORITY. the 2013 crop year. cy is adverse to the appellant; (a) IN GENERAL.—In carrying out this title SEC. 1606. GEOGRAPHICALLY DISADVANTAGED ‘‘(B) that involve matters of general appli- and title II and amendments made by those FARMERS AND RANCHERS. cability; and titles, if the Secretary approves a document, Section 1621(d) of the Food, Conservation, ‘‘(C) that involve requests for equitable re- the Secretary shall not subsequently deter- and Energy Act of 2008 (7 U.S.C. 8792(d)) is lief unless the equitable relief has been de- mine the document is inadequate or invalid amended by striking ‘‘2012’’ and inserting nied by the agency. because of the lack of authority of any per- ‘‘2017’’. ‘‘(3) EQUITABLE RELIEF.— son signing the document on behalf of the SEC. 1607. PERSONAL LIABILITY OF PRODUCERS ‘‘(A) IN GENERAL.—An appeal requesting eq- applicant or any other individual, entity, FOR DEFICIENCIES. uitable relief may not be granted by the Di- general partnership, or joint venture, or the Section 164 of the Federal Agriculture Im- rector to an appellant unless, using the rules documents relied upon were determined in- provement and Reform Act of 1996 (7 U.S.C. and practices that the agency applies to adequate or invalid, unless the person sign- 7284) is amended by striking ‘‘and title I of itself, the agency could in fact have granted ing the program document knowingly and the Food, Conservation, and Energy Act of the relief because the appellant acted in willfully falsified the evidence of signature 2008’’ each place it appears and inserting good faith, but failed to fully comply with authority or a signature. ‘‘title I of the Food, Conservation, and En- the requirement of the rule or practice of the (b) AFFIRMATION.— ergy Act of 2008 (7 U.S.C. 8702 et seq.), and agency. (1) IN GENERAL.—Nothing in this section title I of the Agriculture Reform, Food, and ‘‘(B) REMAND.—If it cannot be determined prohibits the Secretary from asking a proper Jobs Act of 2012’’. whether the agency would have granted equi- party to affirm any document that otherwise SEC. 1608. PREVENTION OF DECEASED INDIVID- table relief because the appellant acted in would be considered approved under sub- UALS RECEIVING PAYMENTS UNDER good faith, but failed to comply with the rule section (a). FARM COMMODITY PROGRAMS. or practice of the agency, the matter shall be (2) NO RETROACTIVE EFFECT.—A denial of (a) RECONCILIATION.—At least twice each remanded to the agency for further consider- benefits based on a lack of affirmation under year, the Secretary shall reconcile social se- ation. paragraph (1) shall not be retroactive with curity numbers of all individuals who receive ‘‘(4) DETERMINATION OF APPEALABILITY.—If respect to third-party producers who were payments under this title, whether directly an officer, employee, or committee of an not the subject of the erroneous representa- or indirectly, with the Commissioner of So- agency determines that a decision is not ap- tion of authority, if the third-party pro- cial Security to determine if the individuals pealable and a participant appeals the deci- ducers— are alive. sion to the Director, the Director shall de- (A) relied on the prior approval by the Sec- (b) PRECLUSION.—The Secretary shall pre- termine whether the decision is adverse to retary of the documents in good faith; and clude the issuance of payments to, and on be- the individual participant and appealable or (B) substantively complied with all pro- half of, deceased individuals that were not is a matter of general applicability and not gram requirements. eligible for payments. subject to appeal. SEC. 1614. IMPLEMENTATION. SEC. 1609. APPEALS. ‘‘(5) APPEALABILITY OF DETERMINATION.— (a) STREAMLINING.—In implementing this (a) DIRECTION, CONTROL, AND SUPPORT.— The determination of the Director as to title, the Secretary shall, to the maximum Section 272 of the Department of Agriculture whether a decision is appealable is final.’’. extent practicable— Reorganization Act of 1994 (7 U.S.C. 6992) is (c) EQUITABLE RELIEF.—Section 278 of the (1) seek to reduce administrative burdens amended by striking subsection (c) and in- Department of Agriculture Reorganization and costs to producers by streamlining and serting the following: Act of 1994 (7 U.S.C. 6998) is amended by reducing paperwork, forms, and other admin- ‘‘(c) DIRECTION, CONTROL, AND SUPPORT.— striking subsection (d). istrative requirements; ‘‘(1) DIRECTION AND CONTROL.— (d) CONFORMING AMENDMENT.—Section (2) improve coordination, information ‘‘(A) IN GENERAL.—Except as provided in 296(b) of the Department of Agriculture Re- sharing, and administrative work with the paragraph (2), the Director shall be free from organization Act of 1994 (7 U.S.C. 7014(b)) is Risk Management Agency and the Natural the direction and control of any person other amended— Resources Conservation Service; and than the Secretary or the Deputy Secretary (1) in paragraph (6)(C), by striking ‘‘or’’ at (3) take advantage of new technologies to of Agriculture. the end; enhance efficiency and effectiveness of pro- ‘‘(B) ADMINISTRATIVE SUPPORT.—The Divi- (2) in paragraph (7), by striking the period gram delivery to producers. sion shall not receive administrative support at the end and inserting ‘‘; or’’; and (b) IMPLEMENTATION.—On October 1, 2013, (except on a reimbursable basis) from any (3) by adding at the end the following: the Secretary shall make available to the agency other than the Office of the Sec- ‘‘(8) the authority of the Secretary to Farm Service Agency to carry out this title retary. carry out amendments to sections 272 and 278 $100,000,000.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4502 CONGRESSIONAL RECORD — SENATE June 25, 2012 TITLE II—CONSERVATION shall make the program available to owners ‘‘SEC. 1233. DUTIES OF THE SECRETARY. Subtitle A—Conservation Reserve Program or operators of eligible land at least once ‘‘(a) COST-SHARE AND RENTAL PAYMENTS.— SEC. 2001. EXTENSION AND ENROLLMENT RE- during each fiscal year.’’. In return for a contract entered into by an QUIREMENTS OF CONSERVATION (e) DURATION OF CONTRACT.—Section 1231(e) owner or operator, the Secretary shall— RESERVE PROGRAM. of the Food Security Act of 1985 (16 U.S.C. ‘‘(1) share the cost of carrying out the con- (a) EXTENSION.—Section 1231(a) of the Food 3831(e)) is amended by striking paragraphs (2) servation measures and practices set forth in Security Act of 1985 (16 U.S.C. 3831(a)) is and (3) and inserting the following: the contract for which the Secretary deter- amended by striking ‘‘2012’’ and inserting ‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In mines that cost sharing is appropriate and in ‘‘2017’’. the case of land devoted to hardwood trees, the public interest; and (b) ELIGIBLE LAND.—Section 1231(b) of the shelterbelts, windbreaks, or wildlife cor- ‘‘(2) for a period of years not in excess of Food Security Act of 1985 (16 U.S.C. 3831(b)) ridors under a contract entered into under the term of the contract, pay an annual rent- is amended— this subchapter, the owner or operator of the al payment in an amount necessary to com- (1) in paragraph (1)(B), by striking ‘‘the land may, within the limitations prescribed pensate for— date of enactment of the Food, Conservation, under this section, specify the duration of ‘‘(A) the conversion of highly erodible and Energy Act of 2008’’ and inserting ‘‘the the contract.’’. cropland or other eligible land normally de- date of enactment of the Agriculture Re- (f) CONSERVATION PRIORITY AREAS.—Sec- voted to the production of an agricultural form, Food, and Jobs Act of 2012’’; tion 1231(f) of the Food Security Act of 1985 commodity on a farm or ranch to a less in- (2) by striking paragraph (2) and redesig- (16 U.S.C. 3831(f)) is amended— tensive use; nating paragraph (3) as paragraph (2); (1) in paragraph (1), by striking ‘‘watershed ‘‘(B) the retirement of any cropland base (3) by inserting before paragraph (4) the areas of the Chesapeake Bay Region, the and allotment history that the owner or op- following: Great Lakes Region, the Long Island Sound erator agrees to retire permanently; and ‘‘(3) grassland that— Region, and other’’; ‘‘(C) the development and management of ‘‘(A) contains forbs or shrubland (including (2) in paragraph (2), by striking ‘‘WATER- grassland for multiple natural resource con- improved rangeland and pastureland) for SHEDS.—Watersheds’’ and inserting servation benefits, including soil, water, air, which grazing is the predominant use; ‘‘AREAS.—Areas’’; and and wildlife. ‘‘(B) is located in an area historically (3) in paragraph (3), by striking ‘‘a water- ‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The dominated by grassland; and shed’s designation—’’ and all that follows Secretary shall permit certain activities or ‘‘(C) could provide habitat for animal and through the period at the end and inserting commercial uses of land that is subject to plant populations of significant ecological ‘‘an area’s designation if the Secretary finds the contract if those activities or uses are value if the land is retained in its current that the area no longer contains actual and consistent with a plan approved by the Sec- use or restored to a natural condition;’’; significant adverse water quality or habitat retary and include— (4) in paragraph (4)(C), by striking impacts related to agricultural production ‘‘(1) harvesting, grazing, or other commer- ‘‘filterstrips devoted to trees or shrubs’’ and activities.’’. cial use of the forage in response to drought, inserting ‘‘filterstrips and riparian buffers SEC. 2002. FARMABLE WETLAND PROGRAM. flooding, or other emergency without any re- devoted to trees, shrubs, or grasses’’; and duction in the rental rate; (5) by striking paragraph (5) and inserting (a) EXTENSION.—Section 1231B(a)(1) of the ‘‘(2) grazing by livestock of a beginning the following: Food Security Act of 1985 (16 U.S.C. farmer or rancher without any reduction in ‘‘(5) the portion of land in a field not en- 3831b(a)(1)) is amended— the rental rate, if the grazing is— rolled in the conservation reserve in a case (1) by striking ‘‘2012’’ and inserting ‘‘2017’’; ‘‘(A) consistent with the conservation of in which— and soil, water quality, and wildlife habitat (in- ‘‘(A) more than 50 percent of the land in (2) by striking ‘‘a program’’ and inserting cluding habitat during the primary nesting the field is enrolled as a buffer or filterstrip ‘‘a farmable wetland program’’. season for critical birds in the area); and or more than 75 percent of the land in the (b) ELIGIBLE ACREAGE.—Section ‘‘(B) described in subparagraph (B) or (C) of field is enrolled in a practice other than as a 1231B(b)(1)(B) of the Food Security Act of paragraph (3); buffer or filterstrip; and 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by ‘‘(3) consistent with the conservation of ‘‘(B) the remainder of the field is— striking ‘‘flow from a row crop agriculture soil, water quality, and wildlife habitat (in- ‘‘(i) infeasible to farm; and drainage system’’ and inserting ‘‘surface and cluding habitat during the primary nesting ‘‘(ii) enrolled at regular rental rates.’’. subsurface flow from row crop agricultural season for critical birds in the area) and in (c) PLANTING STATUS OF CERTAIN LAND.— production’’. Section 1231(c) of the Food Security Act of (c) CLERICAL AMENDMENTS.—Section 1231B exchange for a reduction of not less than 25 1985 (16 U.S.C. 3831(c)) is amended by striking of the Food Security Act of 1985 (16 U.S.C. percent in the annual rental rate for the ‘‘if’’ and all that follows through the period 3831b) is amended— acres covered by the authorized activity— at the end and inserting ‘‘if, during the crop (1) by striking the heading and inserting ‘‘(A) managed harvesting and other com- year, the land was devoted to a conserving the following: mercial use (including the managed har- use.’’. ‘‘SEC. 1231B. FARMABLE WETLAND PROGRAM.’’; vesting of biomass), except that in permit- (d) ENROLLMENT.—Section 1231 of the Food and ting those activities the Secretary, in co- Security Act of 1985 (16 U.S.C. 3831) is amend- (2) in subsection (f)(2), by striking ‘‘section ordination with the State technical com- ed by striking subsection (d) and inserting 1234(c)(2)(B)’’ and inserting ‘‘section mittee— the following: 1234(c)(2)(A)(ii)’’. ‘‘(i) shall develop appropriate vegetation ‘‘(d) ENROLLMENT.— management requirements; and SEC. 2003. DUTIES OF OWNERS AND OPERATORS. ‘‘(1) MAXIMUM ACREAGE ENROLLED.—The ‘‘(ii) shall identify periods during which Secretary may maintain in the conservation (a) LIMITATION ON HARVESTING, GRAZING OR the activities may be conducted, such that reserve at any 1 time during— COMMERCIAL USE OF FORAGE.—Section the frequency is at least once every 5 years ‘‘(A) fiscal year 2012, no more than 1232(a)(8) of the Food Security Act of 1985 (16 but not more than once every 3 years; 32,000,000 acres; U.S.C. 3832(a)(8)) is amended by striking ‘‘ex- ‘‘(B) prescribed grazing for the control of ‘‘(B) fiscal year 2013, no more than cept that’’ and all that follows through the invasive species, which may be conducted 30,000,000 acres; semicolon at the end of the paragraph and annually; ‘‘(C) fiscal year 2014, no more than inserting ‘‘except as provided in section ‘‘(C) routine grazing, except that in per- 27,500,000 acres; 1233(b);’’. mitting routine grazing, the Secretary, in ‘‘(D) fiscal year 2015, no more than (b) CONSERVATION PLAN REQUIREMENTS.— coordination with the State technical com- 26,500,000 acres; Section 1232 of the Food Security Act of 1985 mittee— ‘‘(E) fiscal year 2016, no more than (16 U.S.C. 3832) is amended by striking sub- ‘‘(i) shall develop appropriate vegetation 25,500,000 acres; and section (b) and inserting the following: management requirements and stocking ‘‘(F) fiscal year 2017, no more than ‘‘(b) CONSERVATION PLANS.—The plan re- rates for the land that are suitable for con- 25,000,000 acres. ferred to in subsection (a)(1) shall set forth— tinued routine grazing; and ‘‘(2) GRASSLAND.— ‘‘(1) the conservation measures and prac- ‘‘(ii) shall identify the periods during ‘‘(A) LIMITATION.—For purposes of applying tices to be carried out by the owner or oper- which routine grazing may be conducted, the limitations in paragraph (1), no more ator during the term of the contract; and such that the frequency is not more than than 1,500,000 acres of the land described in ‘‘(2) the commercial use, if any, to be per- once every 2 years, taking into consideration subsection (b)(3) may be enrolled in the pro- mitted on the land during the term.’’. regional differences such as— gram at any 1 time during the 2013 through (c) RENTAL PAYMENT REDUCTION.—Section ‘‘(I) climate, soil type, and natural re- 2017 fiscal years. 1232 of the Food Security Act of 1985 (16 sources; ‘‘(B) PRIORITY.—In enrolling acres under U.S.C. 3832) is amended by striking sub- ‘‘(II) the number of years that should be re- subparagraph (A), the Secretary may give section (d). quired between routine grazing activities; priority to land with expiring conservation SEC. 2004. DUTIES OF THE SECRETARY. and reserve program contracts. Section 1233 of the Food Security Act of ‘‘(III) how often during a year in which ‘‘(C) METHOD OF ENROLLMENT.—In enrolling 1985 (16 U.S.C. 3833) is amended to read as fol- routine grazing is permitted that routine acres under subparagraph (A), the Secretary lows: grazing should be allowed to occur; and

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4503 ‘‘(D) the installation of wind turbines and (1) in paragraph (1), by inserting ‘‘and except, the amendment made by section associated access, except that in permitting other eligible land’’ after ‘‘highly erodible 2001(d), which shall take effect on the date of the installation of wind turbines, the Sec- cropland’’ both places it appears; enactment of this Act. retary shall determine the number and loca- (2) by striking paragraph (2) and inserting (b) EFFECT ON EXISTING CONTRACTS.— tion of wind turbines that may be installed, the following: (1) IN GENERAL.—Except as provided in taking into account— ‘‘(2) METHODS OF DETERMINATION.— paragraph (2), the amendments made by this ‘‘(i) the location, size, and other physical ‘‘(A) IN GENERAL.—The amounts payable to title shall not affect the validity or terms of characteristics of the land; owners or operators in the form of rental any contract entered into by the Secretary ‘‘(ii) the extent to which the land contains payments under contracts entered into under of Agriculture under subchapter B of chapter threatened or endangered wildlife and wild- this subchapter may be determined 1 of subtitle D of title XII of the Food Secu- life habitat; and through— rity Act of 1985 (16 U.S.C. 3831 et seq.) before ‘‘(iii) the purposes of the conservation re- ‘‘(i) the submission of bids for such con- October 1, 2012, or any payments required to serve program under this subchapter; and tracts by owners and operators in such man- be made in connection with the contract. ‘‘(4) the intermittent and seasonal use of ner as the Secretary may prescribe; or (2) UPDATING OF EXISTING CONTRACTS.—The vegetative buffer practices incidental to ag- ‘‘(ii) such other means as the Secretary de- Secretary shall permit an owner or operator ricultural production on land adjacent to the termines are appropriate. with a contract entered into under sub- buffer such that the permitted use does not ‘‘(B) GRASSLAND.—In the case of eligible chapter B of chapter 1 of subtitle D of title destroy the permanent vegetative cover. land described in section 1231(b)(3), the Sec- XII of the Food Security Act of 1985 (16 ‘‘(c) AUTHORIZED ACTIVITIES ON GRASS- retary shall make annual payments in an U.S.C. 3831 et seq.) before October 1, 2012, to LAND.—Notwithstanding section 1232(a)(8), amount that is not more than 75 percent of update the contract to reflect the activities for eligible land described in section the grazing value of the land covered by the and uses of land under contract permitted 1231(b)(3), the Secretary shall permit the fol- contract.’’; and under the terms and conditions of para- lowing activities: (3) in paragraph (5)(A)— graphs (1) and (2) of section 1233(b) of that ‘‘(1) Common grazing practices, including (A) by striking ‘‘The Secretary’’ and in- Act (as amended by section 2004). maintenance and necessary cultural prac- serting the following: Subtitle B—Conservation Stewardship tices, on the land in a manner that is con- ‘‘(i) SURVEY.—The Secretary’’; and Program sistent with maintaining the viability of (B) by adding at the end the following: SEC. 2101. CONSERVATION STEWARDSHIP PRO- grassland, forb, and shrub species appro- ‘‘(ii) USE.—The Secretary may use the sur- GRAM. priate to that locality. vey of dryland cash rental rates described in (a) REVISION OF CURRENT PROGRAM.—Sub- ‘‘(2) Haying, mowing, or harvesting for clause (i) as a factor in determining rental chapter B of chapter 2 of subtitle D of title seed production, subject to appropriate re- rates under this section as the Secretary de- XII of the Food Security Act of 1985 (16 strictions during the primary nesting season termines appropriate.’’. U.S.C. 3838d et seq.) is amended to read as for critical birds in the area. (d) PAYMENT SCHEDULE.—Section 1234 of follows: ‘‘(3) Fire presuppression, rehabilitation, the Food Security Act of 1985 (16 U.S.C. 3834) ‘‘Subchapter B—Conservation Stewardship and construction of fire breaks. is amended by striking subsection (d) and in- Program ‘‘(4) Grazing-related activities, such as serting the following: fencing and livestock watering. ‘‘(d) PAYMENT SCHEDULE.— ‘‘SEC. 1238D. DEFINITIONS. ‘‘(d) RESOURCE CONSERVING USE.— ‘‘(1) IN GENERAL.—Except as otherwise pro- ‘‘In this subchapter: ‘‘(1) IN GENERAL.—Beginning on the date vided in this section, payments under this ‘‘(1) AGRICULTURAL OPERATION.—The term that is 1 year before the date of termination subchapter shall be made in cash in such ‘agricultural operation’ means all eligible of a contract under the program, the Sec- amount and on such time schedule as is land, whether or not contiguous, that is— retary shall allow an owner or operator to agreed on and specified in the contract. ‘‘(A) under the effective control of a pro- make conservation and land improvements ‘‘(2) SOURCE.—Payments under this sub- ducer at the time the producer enters into a that facilitate maintaining protection of chapter shall be made using the funds of the contract under the program; and highly erodible land after expiration of the Commodity Credit Corporation. ‘‘(B) operated with equipment, labor, man- contract. ‘‘(3) ADVANCE PAYMENT.—Payments under agement, and production or cultivation prac- ‘‘(2) CONSERVATION PLAN.—The Secretary this subchapter may be made in advance of tices that are substantially separate from shall require an owner or operator carrying determination of performance.’’. other agricultural operations, as determined out the activities described in paragraph (1) (e) PAYMENT LIMITATION.—Section 1234(f) of by the Secretary. to develop and implement a conservation the Food Security Act of 1985 (16 U.S.C. ‘‘(2) CONSERVATION ACTIVITIES.— plan. 3834(f)) is amended— ‘‘(A) IN GENERAL.—The term ‘conservation ‘‘(3) REENROLLMENT PROHIBITED.—Land al- (1) in paragraph (1), by striking ‘‘, includ- activities’ means conservation systems, tered under paragraph (1) may not be re- ing rental payments made in the form of in- practices, or management measures. enrolled in the conservation reserve program kind commodities,’’; ‘‘(B) INCLUSIONS.—The term ‘conservation for 5 years. (2) by striking paragraph (3); and activities’ includes— ‘‘(4) PAYMENT.—The Secretary shall pro- (3) by redesignating paragraph (4) as para- ‘‘(i) structural measures, vegetative meas- vide an annual payment that is reduced in an graph (2). ures, and land management measures, in- amount commensurate with any income or SEC. 2006. CONTRACT REQUIREMENTS. cluding agriculture drainage management other compensation received as a result of Section 1235(f) of the Food Security Act of systems, as determined by the Secretary; the activities carried out under paragraph 1985 (16 U.S.C. 3835(f)) is amended— and (1).’’. (1) in paragraph (1)— ‘‘(ii) planning needed to address a priority SEC. 2005. PAYMENTS. (A) in the matter preceding subparagraph resource concern. ‘‘(3) CONSERVATION STEWARDSHIP PLAN.— (a) TREES, WINDBREAKS, SHELTERBELTS, (A), by striking ‘‘DUTIES’’ and all that fol- AND WILDLIFE CORRIDORS.—Section lows through ‘‘a beginning farmer’’ and in- The term ‘conservation stewardship plan’ 1234(b)(3)(A) of the Food Security Act of 1985 serting ‘‘TRANSITION TO COVERED FARMER OR means a plan that— (16 U.S.C. 3834(b)(3)(A)) is amended— RANCHER.—In the case of a contract modi- ‘‘(A) identifies and inventories priority re- (1) in clause (i), by inserting ‘‘and’’ after fication approved in order to facilitate the source concerns; the semicolon; transfer of land subject to a contract from a ‘‘(B) establishes benchmark data and con- (2) by striking clause (ii); and retired farmer or rancher to a beginning servation objectives; (3) by redesignating clause (iii) as clause farmer’’; ‘‘(C) describes conservation activities to be (ii). (B) in subparagraph (D), by striking ‘‘the implemented, managed, or improved; and (b) INCENTIVES.—Section 1234(b)(3)(B) of the farmer or rancher’’ and inserting ‘‘the cov- ‘‘(D) includes a schedule and evaluation Food Security Act of 1985 (16 U.S.C. ered farmer or rancher’’; and plan for the planning, installation, and man- 3834(b)(3)(B)) is amended— (C) in subparagraph (E), by striking ‘‘sec- agement of the new and existing conserva- (1) in clause (i), by inserting ‘‘, practices to tion 1001A(b)(3)(B)’’ and inserting ‘‘section tion activities. improve the condition of resources on the 1001’’; and ‘‘(4) ELIGIBLE LAND.— land,’’ after ‘‘operator)’’; and (2) in paragraph (2), by striking ‘‘require- ‘‘(A) IN GENERAL.—The term ‘eligible land’ (2) by adding at the end the following: ment of section 1231(h)(4)(B)’’ and inserting means— ‘‘(iii) INCENTIVES.—In making rental pay- ‘‘option provided under section ‘‘(i) private and tribal land on which agri- ments to an owner or operator of land de- 1234(c)(2)(A)(ii)’’. cultural commodities, livestock, or forest-re- scribed in subparagraph (A), the Secretary SEC. 2007. CONVERSION OF LAND SUBJECT TO lated products are produced; and may provide incentive payments sufficient CONTRACT TO OTHER CONSERVING ‘‘(ii) land associated with the land de- to encourage proper thinning and practices USES. scribed in clause (i) on which priority re- to improve the condition of resources on the Section 1235A of the Food Security Act of source concerns could be addressed through a land.’’. 1985 (16 U.S.C. 3835a) is repealed. contract under the program. (c) ANNUAL RENTAL PAYMENTS.—Section SEC. 2008. EFFECTIVE DATE. ‘‘(B) INCLUSIONS.—The term ‘eligible land’ 1234(c) of the Food Security Act of 1985 (16 (a) IN GENERAL.—The amendments made by includes— U.S.C. 3834(c)) is amended— this title shall take effect on October 1, 2012, ‘‘(i) cropland;

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Secretary, to conserve and improve the qual- tract are provided at the least cost relative ‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT ity and condition of a natural resource. to other similarly beneficial contract offers; TO A CONTRACT.— ‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PRO- and ‘‘(A) IN GENERAL.—At the time of applica- GRAM. ‘‘(F) the extent to which priority resource tion, a producer shall have control of the eli- ‘‘(a) ESTABLISHMENT AND PURPOSE.—During concerns will be addressed when gible land to be enrolled in the program. Ex- each of fiscal years 2013 through 2017, the transitioning from the conservation reserve cept as provided in subparagraph (B), a Secretary shall carry out a conservation program to agricultural production. change in the interest of a producer in eligi- stewardship program to encourage producers ‘‘(2) PROHIBITION.—The Secretary may not ble land covered by a contract under the pro- to address priority resource concerns and im- assign a higher priority to any application gram shall result in the termination of the prove and conserve the quality and condition because the applicant is willing to accept a contract with regard to that land. of natural resources in a comprehensive lower payment than the applicant would oth- ‘‘(B) TRANSFER OF DUTIES AND RIGHTS.— manner— erwise be eligible to receive. Subparagraph (A) shall not apply if— ‘‘(1) by undertaking additional conserva- ‘‘(3) ADDITIONAL CRITERIA.—The Secretary ‘‘(i) within a reasonable period of time (as tion activities; and may develop and use such additional criteria determined by the Secretary) after the date ‘‘(2) by improving, maintaining, and man- that the Secretary determines are necessary of the change in the interest in all or a por- aging existing conservation activities. to ensure that national, State, and local pri- tion of the land covered by a contract under ‘‘(b) EXCLUSIONS.— ority resource concerns are effectively ad- the program, the transferee of the land pro- ‘‘(1) LAND ENROLLED IN OTHER CONSERVA- dressed. vides written notice to the Secretary that TION PROGRAMS.—Subject to paragraph (2), ‘‘(c) ENTERING INTO CONTRACTS.—After a duties and rights under the contract have the following land (even if covered by the determination that a producer is eligible for been transferred to, and assumed by, the definition of eligible land) is not eligible for the program under subsection (a), and a de- transferee for the portion of the land trans- enrollment in the program: termination that the contract offer ranks ferred; ‘‘(A) Land enrolled in the conservation re- sufficiently high under the evaluation cri- ‘‘(ii) the transferee meets the eligibility reserve program. teria under subsection (b), the Secretary quirements of the program; and ‘‘(B) Land enrolled in the Agricultural shall enter into a conservation stewardship ‘‘(iii) the Secretary approves the transfer Conservation Easement Program in a wet- contract with the producer to enroll the eli- of all duties and rights under the contract. land easement. gible land to be covered by the contract. ‘‘(4) MODIFICATION AND TERMINATION OF CON- ‘‘(C) Land enrolled in the conservation se- ‘‘(d) CONTRACT PROVISIONS.— TRACTS.— curity program. ‘‘(1) TERM.—A conservation stewardship ‘‘(A) VOLUNTARY MODIFICATION OR TERMI- ‘‘(2) CONVERSION TO CROPLAND.—Eligible contract shall be for a term of 5 years. NATION.—The Secretary may modify or ter- land used for crop production after October ‘‘(2) REQUIRED PROVISIONS.—The conserva- minate a contract with a producer if— 1, 2012, that had not been planted, considered tion stewardship contract of a producer ‘‘(i) the producer agrees to the modifica- to be planted, or devoted to crop production shall— tion or termination; and for at least 4 of the 6 years preceding that ‘‘(A) state the amount of the payment the ‘‘(ii) the Secretary determines that the date shall not be the basis for any payment Secretary agrees to make to the producer for modification or termination is in the public under the program, unless the land does not each year of the conservation stewardship interest. meet the requirement because— contract under section 1238G(d); ‘‘(B) INVOLUNTARY TERMINATION.—The Sec- ‘‘(A) the land had previously been enrolled ‘‘(B) require the producer— retary may terminate a contract if the Sec- in the conservation reserve program; ‘‘(i) to implement a conservation steward- retary determines that the producer violated ‘‘(B) the land has been maintained using ship plan that describes the program pur- the contract. long-term crop rotation practices, as deter- poses to be achieved through 1 or more con- ‘‘(5) REPAYMENT.—If a contract is termi- mined by the Secretary; or servation activities; nated, the Secretary may, consistent with ‘‘(C) the land is incidental land needed for ‘‘(ii) to maintain and supply information the purposes of the program— efficient operation of the farm or ranch, as as required by the Secretary to determine ‘‘(A) allow the producer to retain payments determined by the Secretary. compliance with the conservation steward- already received under the contract; or ‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. ship plan and any other requirements of the ‘‘(B) require repayment, in whole or in ‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To program; and part, of payments received and assess liq- be eligible to participate in the conservation ‘‘(iii) not to conduct any activities on the uidated damages. stewardship program, a producer shall sub- agricultural operation that would tend to de- ‘‘(e) CONTRACT RENEWAL.—At the end of the mit a contract offer for the agricultural op- feat the purposes of the program; initial 5-year contract period, the Secretary eration that— ‘‘(C) permit all economic uses of the eligi- may allow the producer to renew the con- ‘‘(1) demonstrates to the satisfaction of the ble land that— tract for 1 additional 5-year period if the pro- Secretary that the producer, at the time of ‘‘(i) maintain the agricultural nature of ducer— the contract offer, is meeting the steward- the land; and ‘‘(1) demonstrates compliance with the ship threshold for at least 2 priority resource ‘‘(ii) are consistent with the conservation terms of the existing contract; concerns; and purposes of the conservation stewardship ‘‘(2) agrees to adopt and continue to inte- ‘‘(2) would, at a minimum, meet or exceed contract; grate conservation activities across the en- the stewardship threshold for at least 1 addi- ‘‘(D) include a provision to ensure that a tire agricultural operation as determined by tional priority resource concern by the end producer shall not be considered in violation the Secretary; and of the stewardship contract by— of the contract for failure to comply with ‘‘(3) agrees, at a minimum, to meet or ex- ‘‘(A) installing and adopting additional the contract due to circumstances beyond ceed the stewardship threshold for at least 2 conservation activities; and the control of the producer, including a dis- additional priority resource concerns on the

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agricultural operation by the end of the con- ‘‘(3) EXCLUSIONS.—A payment to a producer (b) EFFECTIVE DATE.—The amendment tract period. under this subsection shall not be provided made by this section shall take effect on Oc- ‘‘SEC. 1238G. DUTIES OF THE SECRETARY. for— tober 1, 2012. ‘‘(A) the design, construction, or mainte- (c) EFFECT ON EXISTING CONTRACTS.— ‘‘(a) IN GENERAL.—To achieve the conserva- nance of animal waste storage or treatment (1) IN GENERAL.—The amendment made by tion goals of a contract under the conserva- facilities or associated waste transport or this section shall not affect the validity or tion stewardship program, the Secretary transfer devices for animal feeding oper- terms of any contract entered into by the shall— ations; or Secretary of Agriculture under subchapter B ‘‘(1) make the program available to eligible ‘‘(B) conservation activities for which of chapter 2 of subtitle D of title XII of the producers on a continuous enrollment basis there is no cost incurred or income forgone Food Security Act of 1985 (16 U.S.C. 3838d et with 1 or more ranking periods, 1 of which to the producer. seq.) before October 1, 2012, or any payments shall occur in the first quarter of each fiscal ‘‘(4) DELIVERY OF PAYMENTS.—In making required to be made in connection with the year; stewardship payments, the Secretary shall, contract. ‘‘(2) identify not less than 5 priority re- to the extent practicable— (2) CONSERVATION STEWARDSHIP PROGRAM.— source concerns in a particular watershed or ‘‘(A) prorate conservation performance Funds made available under section other appropriate region or area within a over the term of the contract so as to accom- 1241(a)(4) of the Food Security Act of 1985 (16 State; and modate, to the extent practicable, producers U.S.C. 3841(a)(4)) (as amended by section ‘‘(3) establish a science-based stewardship earning equal annual stewardship payments 2601(a)) may be used to administer and make threshold for each priority resource concern in each fiscal year; and payments to program participants enrolled identified under subparagraph (2). ‘‘(B) make stewardship payments as soon into contracts during any of fiscal years 2009 ‘‘(b) ALLOCATION TO STATES.—The Sec- as practicable after October 1 of each fiscal through 2012. retary shall allocate acres to States for en- year for activities carried out in the previous Subtitle C—Environmental Quality rollment, based— fiscal year. Incentives Program ‘‘(1) primarily on each State’s proportion ‘‘(e) SUPPLEMENTAL PAYMENTS FOR RE- SEC. 2201. PURPOSES. of eligible land to the total acreage of eligi- SOURCE-CONSERVING CROP ROTATIONS.— Section 1240 of the Food Security Act of ble land in all States; and ‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec- 1985 (16 U.S.C. 3839aa) is amended— ‘‘(2) also on consideration of— retary shall provide additional payments to (1) in paragraph (3)— ‘‘(A) the extent and magnitude of the con- producers that, in participating in the pro- (A) in subparagraph (A), by striking ‘‘and’’ servation needs associated with agricultural gram, agree to adopt resource-conserving at the end; production in each State; crop rotations to achieve beneficial crop ro- (B) by redesignating subparagraph (B) as ‘‘(B) the degree to which implementation tations as appropriate for the eligible land of subparagraph (C) and, in such subparagraph, of the program in the State is, or will be, ef- the producers. by inserting ‘‘and’’ after the semicolon; and fective in helping producers address those ‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec- (C) by inserting after subparagraph (A) the needs; and retary shall determine whether a resource- following: ‘‘(C) other considerations to achieve equi- conserving crop rotation is a beneficial crop ‘‘(B) develop and improve wildlife habitat; table geographic distribution of funds, as de- rotation eligible for additional payments and’’; termined by the Secretary. under paragraph (1), based on whether the re- (2) in paragraph (4), by striking ‘‘; and’’ and ‘‘(c) ACREAGE ENROLLMENT LIMITATION.— source-conserving crop rotation is designed inserting a period; and During the period beginning on October 1, to provide natural resource conservation and (3) by striking paragraph (5). 2012, and ending on September 30, 2021, the production benefits. SEC. 2202. DEFINITIONS. Secretary shall, to the maximum extent ‘‘(3) ELIGIBILITY.—To be eligible to receive Section 1240A of the Food Security Act of practicable— a payment described in paragraph (1), a pro- 1985 (16 U.S.C. 3839aa–1) is amended— ‘‘(1) enroll in the program an additional ducer shall agree to adopt and maintain the (1) by striking paragraph (2) and redesig- 10,348,000 acres for each fiscal year; and resource-conserving crop rotations for the nating paragraphs (3) through (6) as para- ‘‘(2) manage the program to achieve a na- term of the contract. graphs (2) through (5), respectively; and tional average rate of $18 per acre, which ‘‘(4) RESOURCE-CONSERVING CROP ROTA- (2) in paragraph (2) (as so redesignated), by shall include the costs of all financial assist- TION.—In this subsection, the term ‘resource- inserting ‘‘established under the Organic ance, technical assistance, and any other ex- conserving crop rotation’ means a crop rota- Foods Production Act of 1990 (7 U.S.C. 6501 et penses associated with enrollment or partici- tion that— seq.)’’ after ‘‘national organic program’’. pation in the program. ‘‘(A) includes at least 1 resource conserving SEC. 2203. ESTABLISHMENT AND ADMINISTRA- ‘‘(d) CONSERVATION STEWARDSHIP PAY- crop (as defined by the Secretary); TION. MENTS.— ‘‘(B) reduces erosion; Section 1240B of the Food Security Act of ‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec- ‘‘(C) improves soil fertility and tilth; 1985 (16 U.S.C. 3839aa–2) is amended— retary shall provide annual payments under ‘‘(D) interrupts pest cycles; and (1) in subsection (a), by striking ‘‘2014’’ and the program to compensate the producer ‘‘(E) in applicable areas, reduces depletion inserting ‘‘2017’’; for— of soil moisture or otherwise reduces the (2) in subsection (b), by striking paragraph ‘‘(A) installing and adopting additional need for irrigation. (2) and inserting the following: conservation activities; and ‘‘(f) PAYMENT LIMITATIONS.—A person or ‘‘(2) TERM.—A contract under the program ‘‘(B) improving, maintaining, and man- legal entity may not receive, directly or in- shall have a term that does not exceed 10 aging conservation activities in place at the directly, payments under the program that, years.’’; operation of the producer at the time the in the aggregate, exceed $200,000 under all (3) in subsection (d)— contract offer is accepted by the Secretary. contracts entered into during fiscal years (A) in paragraph (3), by striking subpara- ‘‘(2) PAYMENT AMOUNT.—The amount of the 2013 through 2017, excluding funding arrange- graphs (A) through (G) and inserting the fol- conservation stewardship annual payment ments with Indian tribes, regardless of the lowing: shall be determined by the Secretary and number of contracts entered into under the ‘‘(A) soil health; based, to the maximum extent practicable, program by the person or legal entity. ‘‘(B) water quality and quantity improve- on the following factors: ‘‘(g) SPECIALTY CROP AND ORGANIC PRO- ment; ‘‘(A) Costs incurred by the producer associ- DUCERS.—The Secretary shall ensure that ‘‘(C) nutrient management; ated with planning, design, materials, instal- outreach and technical assistance are avail- ‘‘(D) pest management; lation, labor, management, maintenance, or able, and program specifications are appro- ‘‘(E) air quality improvement; training. priate to enable specialty crop and organic ‘‘(F) wildlife habitat development, includ- ‘‘(B) Income forgone by the producer. producers to participate in the program. ing pollinator habitat; ‘‘(C) Expected conservation benefits. ‘‘(h) COORDINATION WITH ORGANIC CERTIFI- ‘‘(G) invasive species management; or ‘‘(D) The extent to which priority resource CATION.—The Secretary shall establish a ‘‘(H) other resource issues of regional or concerns will be addressed through the in- transparent means by which producers may national significance, as determined by the stallation and adoption of conservation ac- initiate organic certification under the Or- Secretary.’’; and tivities on the agricultural operation. ganic Foods Production Act of 1990 (7 U.S.C. (B) in paragraph (4)— ‘‘(E) The level of stewardship in place at 6501 et seq.) while participating in a contract (i) in subparagraph (A) in the matter pre- the time of application and maintained over under the program. ceding clause (i), by inserting ‘‘, veteran the term of the contract. ‘‘(i) REGULATIONS.—The Secretary shall farmer or rancher (as defined in section ‘‘(F) The degree to which the conservation promulgate regulations that— 2501(e) of the Food, Agriculture, Conserva- activities will be integrated across the entire ‘‘(1) prescribe such other rules as the Sec- tion, and Trade Act of 1990 (7 U.S.C. agricultural operation for all applicable pri- retary determines to be necessary to ensure 2279(e))),’’ before ‘‘or a beginning farmer or ority resource concerns over the term of the a fair and reasonable application of the limi- rancher’’; and contract. tations established under subsection (f); and (ii) by striking subparagraph (B) and in- ‘‘(G) Such other factors as determined by ‘‘(2) otherwise enable the Secretary to serting the following: the Secretary. carry out the program.’’. ‘‘(B) ADVANCE PAYMENTS.—

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‘‘(i) IN GENERAL.—Not more than 30 percent ‘‘(3) incorporation of project findings, such ‘‘(A) in the case of an agricultural land of the amount determined under subpara- as new technology and innovative ap- easement, agricultural land, including land graph (A) may be provided in advance for the proaches, into the conservation efforts im- on a farm or ranch— purpose of purchasing materials or con- plemented by the Secretary.’’. ‘‘(i) that is subject to a pending offer for tracting. SEC. 2208. EFFECTIVE DATE. purchase from an eligible entity; ‘‘(ii) RETURN OF FUNDS.—If funds provided (a) IN GENERAL.—The amendments made by ‘‘(ii) that— in advance are not expended during the 90- this title shall take effect on October 1, 2012. ‘‘(I) has prime, unique, or other productive day period beginning on the date of receipt (b) EFFECT ON EXISTING CONTRACTS.—The soil; of the funds, the funds shall be returned amendments made by this title shall not af- ‘‘(II) contains historical or archaeological within a reasonable time frame, as deter- fect the validity or terms of any contract en- resources; or mined by the Secretary.’’; tered into by the Secretary of Agriculture ‘‘(III) the protection of which will further a (4) by striking subsection (f) and inserting under chapter 4 of subtitle D of title XII of State or local policy consistent with the pur- the following: the Food Security Act of 1985 (16 U.S.C. poses of the program; and ‘‘(f) ALLOCATION OF FUNDING.— 3839aa et seq.) before October 1, 2012, or any ‘‘(iii) that is— ‘‘(1) LIVESTOCK.—For each of fiscal years payments required to be made in connection ‘‘(I) cropland; 2013 through 2017, at least 60 percent of the with the contract. ‘‘(II) rangeland; funds made available for payments under the Subtitle D—Agricultural Conservation ‘‘(III) grassland or land that contains forbs, program shall be targeted at practices relat- Easement Program or shrubland for which grazing is the predominant use; ing to livestock production. SEC. 2301. AGRICULTURAL CONSERVATION EASE- ‘‘(2) WILDLIFE HABITAT.—For each of fiscal MENT PROGRAM. ‘‘(IV) pastureland; or years 2013 through 2017, at least 5 percent of (a) ESTABLISHMENT.—Title XII of the Food ‘‘(V) nonindustrial private forest land that the funds made available for payments under Security Act of 1985 is amended by adding at contributes to the economic viability of an the program shall be targeted at practices the end the following: offered parcel or serves as a buffer to protect such land from development; benefitting wildlife habitat under subsection ‘‘Subtitle H—Agricultural Conservation ‘‘(B) in the case of a wetland easement, a (g).’’; and Easement Program (5) by striking subsection (g) and inserting wetland or related area, including— ‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. the following: ‘‘(i) farmed or converted wetland, together ‘‘(a) ESTABLISHMENT.—The Secretary shall ‘‘(g) WILDLIFE HABITAT INCENTIVE PRAC- with the adjacent land that is functionally establish an Agricultural Conservation Ease- TICE.—The Secretary shall provide payments dependent on that land if the Secretary de- ment Program for the conservation of eligi- under the program for conservation practices termines it— ble land and natural resources through ease- ‘‘(I) is likely to be successfully restored in that support the restoration, development, ments or other interests in land. and improvement of wildlife habitat on eligi- a cost effective manner; and ‘‘(b) PURPOSES.—The purposes of the pro- ‘‘(II) will maximize the wildlife benefits ble land, including— gram are to— ‘‘(1) upland wildlife habitat; and wetland functions and values as deter- ‘‘(1) combine the purposes and coordinate mined by the Secretary in consultation with ‘‘(2) wetland wildlife habitat; the functions of the wetlands reserve pro- ‘‘(3) habitat for threatened and endangered the Secretary of the Interior at the local gram established under section 1237, the level; species; grassland reserve program established under ‘‘(4) fish habitat; ‘‘(ii) cropland or grassland that was used section 1238N, and the farmland protection for agricultural production prior to flooding ‘‘(5) habitat on pivot corners and other ir- program established under section 1238I; regular areas of a field; and from the natural overflow of a closed basin ‘‘(2) restore, protect, and enhance wetland lake or pothole, as determined by the Sec- ‘‘(6) other types of wildlife habitat, as de- on eligible land; termined by the Secretary.’’. retary, together (where practicable) with the ‘‘(3) protect the agricultural use, viability, adjacent land that is functionally dependent SEC. 2204. EVALUATION OF APPLICATIONS. and related conservation values of eligible on the cropland or grassland; Section 1240C(b) of the Food Security Act land by limiting nonagricultural uses of that ‘‘(iii) farmed wetland and adjoining land of 1985 (16 U.S.C. 3839aa–3(b)) is amended— land; and that— (1) in paragraph (1), by striking ‘‘environ- ‘‘(4) protect grazing uses and related con- ‘‘(I) is enrolled in the conservation reserve mental’’ and inserting ‘‘conservation’’; and servation values by restoring and conserving program; (2) in paragraph (3), by striking ‘‘purpose of eligible land. ‘‘(II) has the highest wetland functions and the environmental quality incentives pro- ‘‘SEC. 1265A. DEFINITIONS. values; and gram specified in section 1240(1)’’ and insert- ‘‘In this subtitle: ‘‘(III) is likely to return to production ing ‘‘purposes of the program’’. ‘‘(1) AGRICULTURAL LAND EASEMENT.—The after the land leaves the conservation re- SEC. 2205. DUTIES OF PRODUCERS. term ‘agricultural land easement’ means an serve program; Section 1240D(2) of the Food Security Act easement or other interest in eligible land ‘‘(iv) riparian areas that link wetland that of 1985 (16 U.S.C. 3839aa–4(2)) is amended by that— is protected by easements or some other de- striking ‘‘farm, ranch, or forest’’ and insert- ‘‘(A) is conveyed for the purposes of pro- vice that achieves the same purpose as an ing ‘‘enrolled’’. tecting natural resources and the agricul- easement; or SEC. 2206. LIMITATION ON PAYMENTS. tural nature of the land, and of promoting ‘‘(v) other wetland of an owner that would Section 1240G of the Food Security Act of agricultural viability for future generations; not otherwise be eligible if the Secretary de- 1985 (16 U.S.C. 3839aa–7) is amended— and termines that the inclusion of such wetland (1) in subsection (a)— ‘‘(B) permits the landowner the right to in such easement would significantly add to (A) by striking ‘‘by the person or entity continue agricultural production and related the functional value of the easement; and during any six-year period,’’ and inserting uses subject to an agricultural land ease- ‘‘(C) in the case of both an agricultural ‘‘during fiscal years 2013 through 2017’’; and ment plan. land easement or wetland easement, other (B) by striking ‘‘federally recognized’’ and ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible land that is incidental to eligible land if the all that follows through the period and in- entity’ means— Secretary determines that it is necessary for serting ‘‘Indian tribes under section 1244(l).’’; ‘‘(A) an agency of State or local govern- the efficient administration of the ease- and ment or an Indian tribe (including farmland ments under this program. (2) in subsection (b)(2), by striking ‘‘any protection board or land resource council es- ‘‘(4) PROGRAM.—The term ‘program’ means six-year period’’ and inserting ‘‘fiscal years tablished under State law); or the Agricultural Conservation Easement 2013 through 2017’’. ‘‘(B) an organization that is— Program established by this subtitle. SEC. 2207. CONSERVATION INNOVATION GRANTS ‘‘(i) organized for, and at all times since ‘‘(5) WETLAND EASEMENT.—The term ‘wet- AND PAYMENTS. the formation of the organization has been land easement’ means a reserved interest in Section 1240H of the Food Security Act of operated principally for, 1 or more of the eligible land that— 1985 (16 U.S.C. 3839aa–8) is amended— conservation purposes specified in clause (i), ‘‘(A) is defined and delineated in a deed; (1) in subsection (b)(2), by striking ‘‘2012’’ (ii), (iii), or (iv) of section 170(h)(4)(A) of the and and inserting ‘‘2017’’; and Internal Revenue Code of 1986; ‘‘(B) stipulates— (2) by adding at the end the following: ‘‘(ii) an organization described in section ‘‘(i) the rights, title, and interests in land ‘‘(c) REPORTING.—Not later than December 501(c)(3) of that Code that is exempt from conveyed to the Secretary; and 31, 2013, and every 2 years thereafter, the taxation under section 501(a) of that Code; or ‘‘(ii) the rights, title, and interests in land Secretary shall submit to the Committee on ‘‘(iii) described in— that are reserved to the landowner. Agriculture, Nutrition, and Forestry of the ‘‘(I) paragraph (1) or (2) of section 509(a) of ‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. Senate and the Committee on Agriculture of that Code; or ‘‘(a) AVAILABILITY OF ASSISTANCE.—The the House of Representatives a report on the ‘‘(II) section 509(a)(3) of that Code and is Secretary shall facilitate and provide fund- status of projects funded under this section, controlled by an organization described in ing for— including— section 509(a)(2) of that Code. ‘‘(1) the purchase by eligible entities of ag- ‘‘(1) funding awarded; ‘‘(3) ELIGIBLE LAND.—The term ‘eligible ricultural land easements and other inter- ‘‘(2) project results; and land’ means private or tribal land that is— ests in eligible land; and

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WETLAND EASEMENTS. vide cost-share assistance to eligible entities ‘‘(iv) include a right of enforcement for the ‘‘(a) AVAILABILITY OF ASSISTANCE.—The for purchasing agricultural land easements Secretary if terms of the easement are not Secretary shall provide assistance to owners to protect the agricultural use, including enforced by the holder of the easement; of eligible land to restore, protect, and en- grazing, and related conservation values of ‘‘(v) subject the land purchased to an agri- hance wetland through— eligible land. cultural land easement plan that— ‘‘(1) easements and related wetland ease- ‘‘(I) describes the activities which promote ‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— ment plans; and the long-term viability of the land to meet ‘‘(A) FEDERAL SHARE.—Subject to subpara- ‘‘(2) technical assistance. the purposes for which the easement was ac- graph (C), an agreement described in para- ‘‘(b) EASEMENTS.— quired; graph (4) shall provide for a Federal share de- ‘‘(1) METHOD OF ENROLLMENT.—The Sec- termined by the Secretary of an amount not ‘‘(II) requires the management of grassland retary shall enroll eligible land through the to exceed 50 percent of the fair market value according to a grassland management plan; use of— and of the agricultural land easement or other ‘‘(A) 30-year easements; ‘‘(III) includes a conservation plan, where interest in land, as determined by the Sec- ‘‘(B) permanent easements; appropriate, and requires, at the option of retary using— ‘‘(C) easements for the maximum duration the Secretary, the conversion of highly erod- ‘‘(i) the Uniform Standards of Professional allowed under applicable State laws; or ible cropland to less intensive uses; and Appraisal Practices; ‘‘(D) as an option for Indian tribes only, 30- ‘‘(vi) include a limit on the impervious sur- ‘‘(ii) an area-wide market analysis or sur- year contracts. faces to be allowed that is consistent with vey; or ‘‘(2) LIMITATIONS.— the agricultural activities to be conducted. ‘‘(iii) another industry approved method. ‘‘(A) INELIGIBLE LAND.—The Secretary may ‘‘(D) SUBSTITUTION OF QUALIFIED ‘‘(B) NON-FEDERAL SHARE.— not acquire easements on— PROJECTS.—An agreement shall allow, upon ‘‘(i) IN GENERAL.—Subject to subparagraph mutual agreement of the parties, substi- ‘‘(i) land established to trees under the (C), under the agreement, the eligible entity tution of qualified projects that are identi- conservation reserve program, except in shall provide a share that is at least equiva- fied at the time of the proposed substitution. cases where the Secretary determines it lent to that provided by the Secretary. would further the purposes of the program; ‘‘(E) EFFECT OF VIOLATION.—If a violation ‘‘(ii) SOURCE OF CONTRIBUTION.—An eligible occurs of a term or condition of an agree- and entity may include as part of its share a ment under this subsection— ‘‘(ii) farmed wetland or converted wetland charitable donation or qualified conserva- ‘‘(i) the agreement may be terminated; and where the conversion was not commenced tion contribution (as defined by section ‘‘(ii) the Secretary may require the eligible prior to December 23, 1985. 170(h) of the Internal Revenue Code of 1986) entity to refund all or part of any payments ‘‘(B) CHANGES IN OWNERSHIP.—No easement from the private landowner if the eligible en- received by the entity under the program, shall be created on land that has changed tity contributes its own cash resources in an with interest on the payments as determined ownership during the preceding 24-month pe- amount that is at least 50 percent of the appropriate by the Secretary. riod unless— amount contributed by the Secretary. ‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— ‘‘(i) the new ownership was acquired by ‘‘(C) WAIVER AUTHORITY.—In the case of ‘‘(A) CERTIFICATION PROCESS.—The Sec- will or succession as a result of the death of grassland of special environmental signifi- retary shall establish a process under which the previous owner; cance, as determined by the Secretary, the the Secretary may— ‘‘(ii)(I) the ownership change occurred be- Secretary may provide up to 75 percent of ‘‘(i) directly certify eligible entities that cause of foreclosure on the land; and the fair market value of the agricultural meet established criteria; ‘‘(II) immediately before the foreclosure, land easement. ‘‘(ii) enter into long-term agreements with the owner of the land exercises a right of re- ‘‘(3) EVALUATION AND RANKING OF APPLICA- certified eligible entities; and demption from the mortgage holder in ac- TIONS.— ‘‘(iii) accept proposals for cost-share as- cordance with State law; or ‘‘(A) CRITERIA.—The Secretary shall estab- sistance for the purchase of agricultural land ‘‘(iii) the Secretary determines that the lish evaluation and ranking criteria to maxi- easements throughout the duration of such land was acquired under circumstances that mize the benefit of Federal investment under agreements. give adequate assurances that such land was the program. ‘‘(B) CERTIFICATION CRITERIA.—In order to not acquired for the purposes of placing it in ‘‘(B) CONSIDERATIONS.—In establishing the be certified, an eligible entity shall dem- the program. criteria, the Secretary shall emphasize sup- onstrate to the Secretary that the entity ‘‘(3) EVALUATION AND RANKING OF OFFERS.— port for— will maintain, at a minimum, for the dura- ‘‘(A) CRITERIA.—The Secretary shall estab- ‘‘(i) protecting agricultural uses and re- tion of the agreement— lish evaluation and ranking criteria to maxi- lated conservation values of the land; and ‘‘(i) a plan for administering easements mize the benefit of Federal investment under ‘‘(ii) maximizing the protection of areas that is consistent with the purpose of this the program. devoted to agricultural use. subtitle; ‘‘(B) CONSIDERATIONS.—When evaluating of- ‘‘(C) BIDDING DOWN.—If the Secretary deter- ‘‘(ii) the capacity and resources to monitor fers from landowners, the Secretary may mines that 2 or more applications for cost- and enforce agricultural land easements; and consider— share assistance are comparable in achieving ‘‘(iii) policies and procedures to ensure— ‘‘(i) the conservation benefits of obtaining the purpose of the program, the Secretary ‘‘(I) the long-term integrity of agricultural an easement or 30-year contract, including shall not assign a higher priority to any of land easements on eligible land; the potential environmental benefits if the those applications solely on the basis of less- ‘‘(II) timely completion of acquisitions of land was removed from agricultural producer cost to the program. easements; and tion; ‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— ‘‘(III) timely and complete evaluation and ‘‘(ii) the cost-effectiveness of each ease- ‘‘(A) IN GENERAL.—The Secretary shall reporting to the Secretary on the use of ment or 30-year contract, so as to maximize enter into agreements with eligible entities funds provided under the program. the environmental benefits per dollar ex- to stipulate the terms and conditions under ‘‘(C) REVIEW AND REVISION.— pended; which the eligible entity is permitted to use ‘‘(i) REVIEW.—The Secretary shall conduct ‘‘(iii) whether the landowner or another cost-share assistance provided under this a review of eligible entities certified under person is offering to contribute financially section. subparagraph (A) every 3 years to ensure to the cost of the easement or 30-year con- ‘‘(B) LENGTH OF AGREEMENTS.—An agree- that such entities are meeting the criteria tract to leverage Federal funds; and ment shall be for a term that is— established under subparagraph (B). ‘‘(iv) such other factors as the Secretary ‘‘(i) in the case of an eligible entity cer- ‘‘(ii) REVOCATION.—If the Secretary finds determines are necessary to carry out the tified under the process described in para- that the certified entity no longer meets the purposes of the program. graph (5), a minimum of 5 years; and criteria established under subparagraph (B), ‘‘(C) PRIORITY.—The Secretary shall place ‘‘(ii) for all other eligible entities, at least the Secretary may— priority on acquiring easements based on the 3, but not more than 5 years. ‘‘(I) allow the certified entity a specified value of the easement for protecting and en- ‘‘(C) MINIMUM TERMS AND CONDITIONS.—An period of time, at a minimum 180 days, in hancing habitat for migratory birds and eligible entity shall be authorized to use its which to take such actions as may be nec- other wildlife. own terms and conditions for agricultural essary to meet the criteria; and ‘‘(4) AGREEMENT.—To be eligible to place land easements so long as the Secretary de- ‘‘(II) revoke the certification of the entity, eligible land into the program through a termines such terms and conditions— if after the specified period of time, the cer- wetland easement, the owner of such land ‘‘(i) are consistent with the purposes of the tified entity does not meet such criteria. shall enter into an agreement with the Sec- program; ‘‘(c) TECHNICAL ASSISTANCE.—The Sec- retary to— ‘‘(ii) are permanent or for the maximum retary may provide technical assistance, if ‘‘(A) grant an easement on such land to the duration allowed under applicable State law; requested, to assist in— Secretary;

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‘‘(B) authorize the implementation of a ‘‘(ii) the agreement provides for a commen- ‘‘(1) WETLAND EASEMENT PLAN.—The Sec- wetland easement plan; surate reduction in the easement payment to retary shall develop a wetland easement plan ‘‘(C) create and record an appropriate deed account for the grazing value, as determined for eligible land subject to a wetland ease- restriction in accordance with applicable by the Secretary. ment, which will include the practices and State law to reflect the easement agreed to; ‘‘(E) APPLICATION.—The relevant provisions activities necessary to restore, protect, en- ‘‘(D) provide a written statement of con- of this paragraph shall also apply to a 30- hance, and maintain the enrolled land. sent to such easement signed by those hold- year contract. ‘‘(2) DELEGATION OF EASEMENT ADMINISTRA- ing a security interest in the land; ‘‘(6) COMPENSATION.— TION.— ‘‘(E) comply with the terms and conditions ‘‘(A) DETERMINATION.— ‘‘(A) IN GENERAL.—The Secretary may dele- of the easement and any related agreements; ‘‘(i) IN GENERAL.—The Secretary shall pay gate any of the easement management, mon- and as compensation for a permanent easement itoring, and enforcement responsibilities of ‘‘(F) permanently retire any existing crop- acquired an amount necessary to encourage the Secretary to other Federal or State land base and allotment history for the land enrollment in the program based on the low- agencies that have the appropriate author- on which the easement has been obtained. est of— ity, expertise and resources necessary to ‘‘(5) TERMS AND CONDITIONS OF EASEMENT.— ‘‘(I) the fair market value of the land, as carry out such delegated responsibilities or ‘‘(A) IN GENERAL.—A wetland easement determined by the Secretary, using the Uni- to other conservation organizations if the shall include terms and conditions that— form Standards of Professional Appraisal Secretary determines the organization has ‘‘(i) permit— Practices or an area-wide market analysis or similar expertise and resources. ‘‘(I) repairs, improvements, and inspections survey; ‘‘(B) LIMITATION.—The Secretary shall not on the land that are necessary to maintain ‘‘(II) the amount corresponding to a geo- delegate any of the monitoring or enforce- existing public drainage systems; and graphical cap, as determined by the Sec- ment responsibilities under the program to ‘‘(II) owners to control public access on the retary in regulations; or conservation organizations. easement areas while identifying access ‘‘(III) the offer made by the landowner. ‘‘(3) PAYMENTS.— routes to be used for restoration activities ‘‘(ii) OTHER.—Compensation for a 30-year ‘‘(A) TIMING OF PAYMENTS.—The Secretary and management and easement monitoring; contract or 30-year easement shall be not shall provide payment for obligations in- ‘‘(ii) prohibit— less than 50 percent, but not more than 75 curred by the Secretary under this section— ‘‘(I) the alteration of wildlife habitat and percent, of the compensation that would be ‘‘(i) with respect to any easement restora- other natural features of such land, unless paid for a permanent easement. tion obligation as soon as possible after the specifically authorized by the Secretary; ‘‘(B) FORM OF PAYMENT.—Compensation obligation is incurred; and ‘‘(II) the spraying of such land with chemi- shall be provided by the Secretary in the ‘‘(ii) with respect to any annual easement cals or the mowing of such land, except form of a cash payment, in an amount deter- payment obligation incurred by the Sec- where such spraying or mowing is authorized mined under subparagraph (A). retary as soon as possible after October 1 of by the Secretary or is necessary— ‘‘(C) PAYMENT SCHEDULE.— each calendar year. ‘‘(aa) to comply with Federal or State nox- ‘‘(i) EASEMENTS VALUED AT LESS THAN ‘‘(B) PAYMENTS TO OTHERS.—If an owner ious weed control laws; $500,000.—For easements valued at $500,000 or who is entitled to a payment dies, becomes ‘‘(bb) to comply with a Federal or State less, the Secretary may provide easement incompetent, is otherwise unable to receive emergency pest treatment program; or payments in not more than 10 annual pay- such payment, or is succeeded by another ‘‘(cc) to meet habitat needs of specific ments. person or entity who renders or completes wildlife species; ‘‘(ii) EASEMENTS VALUED AT MORE THAN the required performance, the Secretary ‘‘(III) any activities to be carried out on $500,000.—For easements valued at more than shall make such payment, in accordance the owner’s or successor’s land that is imme- $500,000, the Secretary may provide easement with regulations prescribed by the Secretary diately adjacent to, and functionally related payments in at least 5, but not more than 10 and without regard to any other provision of to, the land that is subject to the easement annual payments, except that, if the Sec- law, in such manner as the Secretary deter- if such activities will alter, degrade, or oth- retary determines it would further the pur- mines is fair and reasonable in light of all of erwise diminish the functional value of the poses of the program, the Secretary may the circumstances. eligible land; and ‘‘(IV) the adoption of any other practice make a lump sum payment for such an ease- ‘‘SEC. 1265D. ADMINISTRATION. that would tend to defeat the purposes of the ment. ‘‘(a) INELIGIBLE LAND.—The Secretary may program, as determined by the Secretary; ‘‘(c) EASEMENT RESTORATION.— not acquire an easement under the program ‘‘(iii) provide for the efficient and effective ‘‘(1) IN GENERAL.—The Secretary shall pro- on— establishment of wetland functions and val- vide financial assistance to carry out the es- ‘‘(1) land owned by an agency of the United ues; and tablishment of conservation measures and States, other than land held in trust for In- ‘‘(iv) include such additional provisions as practices and protect wetland functions and dian tribes; the Secretary determines are desirable to values, including necessary maintenance ac- ‘‘(2) land owned in fee title by a State, in- carry out the program or facilitate the prac- tivities, as set forth in a wetland easement cluding an agency or a subdivision of a tical administration thereof. plan. State, or a unit of local government; ‘‘(B) VIOLATION.—On the violation of the ‘‘(2) PAYMENTS.—The Secretary shall— ‘‘(3) land subject to an easement or deed re- terms or conditions of the easement, the ‘‘(A) in the case of a permanent easement, striction which, as determined by the Sec- easement shall remain in force and the Sec- pay an amount that is not less than 75 per- retary, provides similar protection as would retary may require the owner to refund all cent, but not more than 100 percent, of the be provided by enrollment in the program; or part of any payments received by the eligible costs; and and owner under the program, together with in- ‘‘(B) in the case of a 30-year contract or 30- ‘‘(4) land where the purposes of the pro- terest thereon as determined appropriate by year easement, pay an amount that is not gram would be undermined due to on-site or the Secretary. less than 50 percent, but not more than 75 off-site conditions, such as risk of hazardous ‘‘(C) COMPATIBLE USES.—Land subject to a percent, of the eligible costs. substances, proposed or existing rights of wetland easement may be used for compat- ‘‘(d) TECHNICAL ASSISTANCE.— way, infrastructure development, or adjacent ible economic uses, including such activities ‘‘(1) IN GENERAL.—The Secretary shall as- land uses. as hunting and fishing, managed timber har- sist owners in complying with the terms and ‘‘(b) PRIORITY.—In evaluating applications vest, or periodic haying or grazing, if such conditions of easements and 30-year con- under the program, the Secretary may give use is specifically permitted by the wetland tracts. priority to land that is currently enrolled in easement plan and is consistent with the ‘‘(2) CONTRACTS OR AGREEMENTS.—The Sec- the conservation reserve program in a con- long-term protection and enhancement of retary may enter into 1 or more contracts tract that is set to expire within 1 year and— the wetland resources for which the ease- with private entities or agreements with a ‘‘(1) in the case of an agricultural land ment was established. State, non-governmental organization, or In- easement, is grassland that would benefit ‘‘(D) RESERVATION OF GRAZING RIGHTS.—The dian tribe to carry out necessary restora- from protection under a long-term easement; Secretary may include in the terms and con- tion, enhancement or maintenance of an and ditions of an easement a provision under easement if the Secretary determines that ‘‘(2) in the case of a wetland easement, is a which the owner reserves grazing rights if— the contract or agreement will advance the wetland or related area with the highest ‘‘(i) the Secretary determines that the res- purposes of the program. functions and values and is likely to return ervation and use of the grazing rights— ‘‘(e) WETLAND ENHANCEMENT OPTION.—The to production after the land leaves the con- ‘‘(I) is compatible with the land subject to Secretary may enter into 1 or more agree- servation reserve program. the easement; ments with a State (including a political ‘‘(c) SUBORDINATION, EXCHANGE, MODIFICA- ‘‘(II) is consistent with the historical nat- subdivision or agency of a State), nongovern- TION, AND TERMINATION.— ural uses of the land and long-term protec- mental organization, or Indian tribe to carry ‘‘(1) IN GENERAL.—The Secretary may sub- tion and enhancement goals for which the out a special wetland enhancement option ordinate, exchange, terminate, or modify easement was established; and that the Secretary determines would ad- any interest in land, or portion of such inter- ‘‘(III) complies with the wetland easement vance the purposes of the program. est, administered by the Secretary, either di- plan; and ‘‘(f) ADMINISTRATION.— rectly or on behalf of the Commodity Credit

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Secretary determines that— chapter C of chapter 1 of subtitle D’’ and in- ‘‘(E) Water retention. ‘‘(A) it is in the Federal Government’s inserting ‘‘the Agricultural Conservation Ease- ‘‘(F) Habitat conservation, restoration, and terest to subordinate, exchange, modify or ment Program under subtitle H using wet- enhancement. terminate the interest in land; land easements under section 1265C’’; and ‘‘(G) Erosion control. ‘‘(B) the subordination, exchange, modi- (B) in paragraph (4), by striking ‘‘sub- ‘‘(H) Other related activities that the Sec- fication, or termination action— chapter C’’ and inserting ‘‘subchapter B’’. retary determines will help achieve con- ‘‘(i) will address a compelling public need (d) EFFECTIVE DATE.—The amendments servation benefits. for which there is no practicable alternative, made by this section shall take effect on Oc- ‘‘(3) ELIGIBLE PARTNER.—The term ‘eligible or tober 1, 2012. partner’ means any of the following: ‘‘(ii) such action will further the practical Subtitle E—Regional Conservation ‘‘(A) An agricultural or silvicultural pro- administration of the program; and Partnership Program ducer association or other group of pro- ‘‘(C) the subordination, exchange, modi- ducers. SEC. 2401. REGIONAL CONSERVATION PARTNER- ‘‘(B) A State or unit of local government. fication, or termination action will result in SHIP PROGRAM. comparable conservation value and equiva- ‘‘(C) An Indian tribe. (a) IN GENERAL.—Title XII of the Food Se- lent or greater economic value to the United ‘‘(D) A farmer cooperative. curity Act of 1985 is amended by inserting States. ‘‘(E) An institution of higher education. after subtitle H (as added by section 2301) the ‘‘(2) CONSULTATION.—The Secretary shall ‘‘(F) An organization with an established following: work with the current owner, and eligible history of working cooperatively with pro- entity if applicable, to address any subordi- ‘‘Subtitle I—Regional Conservation ducers on agricultural land, as determined nation, exchange, termination, or modifica- Partnership Program by the Secretary, to address— tion of the interest, or portion of such inter- ‘‘SEC. 1271. ESTABLISHMENT AND PURPOSES. ‘‘(i) local conservation priorities related to est in land. ‘‘(a) ESTABLISHMENT.—The Secretary shall agricultural production, wildlife habitat de- ‘‘(3) NOTICE.—At least 90 days before taking establish a Regional Conservation Partner- velopment, and nonindustrial private forest any termination action described in para- ship Program to implement eligible activi- land management; or graph (1), the Secretary shall provide written ties through— ‘‘(ii) critical watershed-scale soil erosion, notice of such action to the Committee on ‘‘(1) partnership agreements with eligible water quality, sediment reduction, or other Agriculture of the House of Representatives partners; and natural resource concerns. and the Committee on Agriculture, Nutri- ‘‘(2) contracts with producers. ‘‘(4) PARTNERSHIP AGREEMENT.—The term tion, and Forestry of the Senate. ‘‘(b) PURPOSES.—The purposes of the pro- ‘partnership agreement’ means an agreement ‘‘(d) LAND ENROLLED IN OTHER PROGRAMS.— gram are— between the Secretary and an eligible part- ‘‘(1) CONSERVATION RESERVE PROGRAM.—The ‘‘(1) to combine the purposes and coordi- ner. Secretary may terminate or modify an exist- nate the functions of— ‘‘(5) PROGRAM.—The term ‘program’ means ing contract entered into under section ‘‘(A) the agricultural water enhancement the Regional Conservation Partnership Pro- 1231(a) if eligible land that is subject to such program established under section 1240I; gram established by this subtitle. contract is transferred into the program. ‘‘(B) the Chesapeake Bay watershed pro- ‘‘SEC. 1271B. REGIONAL CONSERVATION PART- ‘‘(2) OTHER.—Land enrolled in the wetlands gram established under section 1240Q; NERSHIPS. reserve program, grassland reserve program, ‘‘(C) the cooperative conservation partner- ‘‘(a) PARTNERSHIP AGREEMENTS AUTHOR- or farmland protection program shall be con- ship initiative established under section 1243; IZED.—The Secretary may enter into a part- sidered enrolled in this program. and nership agreement with an eligible partner ‘‘(e) ALLOCATION OF FUNDS FOR AGRICUL- ‘‘(D) the Great Lakes basin program for to implement a project that will assist pro- TURAL LAND EASEMENTS.—Of the funds made soil erosion and sediment control established ducers with installing and maintaining an el- available under section 1241 to carry out the under section 1240P;. igible activity. ‘‘(b) LENGTH.—A partnership agreement program for a fiscal year, the Secretary ‘‘(2) to further the conservation, restora- shall be for a period not to exceed 5 years, shall, to the extent practicable, use no less tion, and sustainable use of soil, water, wild- except that the Secretary may extend the than 40 percent for agricultural land ease- life, and related natural resources on a re- agreement 1 time for up to 12 months when ments.’’. gional or watershed scale; and (b) COMPLIANCE WITH CERTAIN REQUIRE- an extension is necessary to meet the objec- ‘‘(3) to encourage partners to cooperate MENTS.—Before an eligible entity or owner of tives of the program. with producers in— eligible land may receive assistance under ‘‘(c) DUTIES OF PARTNERS.— ‘‘(A) meeting or avoiding the need for na- subtitle H of title XII of the Food Security ‘‘(1) IN GENERAL.—Under a partnership Act of 1985, the eligible entity or person shall tional, State, and local natural resource reg- agreement, the eligible partner shall— agree, during the crop year for which the as- ulatory requirements related to production; ‘‘(A) define the scope of a project, includ- sistance is provided and in exchange for the and ing— assistance— ‘‘(B) implementing projects that will result ‘‘(i) the eligible activities to be imple- (1) to comply with applicable conservation in the installation and maintenance of eligi- mented; requirements under subtitle B of title XII of ble activities that affect multiple agricul- ‘‘(ii) the potential agricultural or non- that Act (16 U.S.C. 3811 et seq.); and tural or nonindustrial private forest oper- industrial private forest operations affected; (2) to comply with applicable wetland pro- ations on a local, regional, State, or multi- ‘‘(iii) the local, State, multi-State or other tection requirements under subtitle C of State basis. geographic area covered; and title XII of that Act (16 U.S.C. 3821 et seq.). ‘‘SEC. 1271A. DEFINITIONS. ‘‘(iv) the planning, outreach, implementa- (c) CROSS REFERENCE.—Section 1244 of the ‘‘In this subtitle: tion and assessment to be conducted; Food Security Act of 1985 (16 U.S.C. 3844) is ‘‘(1) COVERED PROGRAMS.—The term ‘cov- ‘‘(B) conduct outreach and education to amended— ered programs’ means— producers for potential participation in the (1) in subsection (c)— ‘‘(A) the agricultural conservation ease- project; (A) in paragraph (1)— ment program; ‘‘(C) at the request of a producer, act on (i) by inserting ‘‘and’’ at the end of sub- ‘‘(B) the environmental quality incentives behalf of a producer participating in the paragraph (A); program; and project in applying for assistance under sec- (ii) by striking ‘‘and’’ at the end of sub- ‘‘(C) the conservation stewardship pro- tion 1271C; paragraph (B); and gram. ‘‘(D) leverage financial or technical assist- (iii) by striking subparagraph (C); ‘‘(2) ELIGIBLE ACTIVITY.—The term ‘eligible ance provided by the Secretary with addi- (B) by redesignating paragraph (2) as para- activity’ means any of the following con- tional funds to help achieve the project ob- graph (3); and servation activities when delivered through jectives; (C) by inserting after paragraph (1) the fol- a covered program: ‘‘(E) conduct an assessment of the project’s lowing: ‘‘(A) Water quality restoration or enhance- effects; and ‘‘(2) the Agricultural Conservation Ease- ment projects, including nutrient manage- ‘‘(F) at the conclusion of the project, re- ment Program established under subtitle H; ment and sediment reduction. port to the Secretary on its results and funds and’’; and ‘‘(B) Water quantity conservation, restora- leveraged. (2) in subsection (f)— tion, or enhancement projects relating to ‘‘(2) CONTRIBUTION.—A partner shall pro- (A) in paragraph (1)— surface water and groundwater resources, in- vide a significant portion of the overall costs (i) in subparagraph (A), by striking ‘‘pro- cluding— of the scope of the project as determined by grams administered under subchapters B and ‘‘(i) the conversion of irrigated cropland to the Secretary. C of chapter 1 of subtitle D’’ and inserting the production of less water-intensive agri- ‘‘(d) APPLICATIONS.— ‘‘conservation reserve program established cultural commodities or dryland farming; ‘‘(1) COMPETITIVE PROCESS.—The Secretary under subchapter B of chapter 1 of subtitle D and shall conduct a competitive process to select and the Agricultural Conservation Easement ‘‘(ii) irrigation system improvement and applications for partnership agreements and Program under subtitle H using wetland irrigation efficiency enhancement. may assess and rank applications with simi- easements under section 1265C’’; and ‘‘(C) Drought mitigation. lar conservation purposes as a group.

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‘‘(2) CRITERIA USED.—In carrying out the may enter into alternative funding arrange- process to be established by the Secretary; process described in paragraph (1), the Sec- ments with a multistate water resource and retary shall make public the criteria used in agency or authority if— ‘‘(3) 35 percent of the funds and acres to evaluating applications. ‘‘(i) the Secretary determines that the projects for the critical conservation areas ‘‘(3) CONTENT.—An application to the Sec- goals and objectives of the program will be designated in section 1271F. retary shall include a description of— met by the alternative funding arrange- ‘‘(e) LIMITATION ON ADMINISTRATIVE EX- ‘‘(A) the scope of the project as described ments; PENSES.—None of the funds made available in subsection (c)(1)(A); ‘‘(ii) the agency or authority certifies that under the program may be used to pay for ‘‘(B) the plan for monitoring, evaluating, the limitations established under this sec- the administrative expenses of partners. and reporting on progress made towards tion on agreements with individual pro- ‘‘SEC. 1271E. ADMINISTRATION. achieving the project’s objectives; ducers will not be exceeded; and ‘‘(a) DISCLOSURE.—In addition to the cri- ‘‘(C) the program resources requested for ‘‘(iii) all participating producers meet ap- teria used in evaluating applications as de- the project, including the covered programs plicable payment eligibility provisions. scribed in section 1271B(d)(2), the Secretary to be used and estimated funding needed ‘‘(B) CONDITIONS.—As a condition on re- shall make publicly available information on from the Secretary; ceipt of funding under subparagraph (A), the projects selected through the competitive ‘‘(D) the partners collaborating to achieve multistate water resource agency or author- process described in section 1271B(d)(1). project objectives, including their roles, re- ity shall agree— ‘‘(b) REPORTING.—Not later than December sponsibilities, capabilities, and financial ‘‘(i) to submit an annual independent audit 31, 2013, and for every 2 years thereafter, the contribution; and to the Secretary that describes the use of Secretary shall submit to the Committee on ‘‘(E) any other elements the Secretary con- funds under this paragraph; Agriculture of the House of Representatives and the Committee on Agriculture, Nutri- siders necessary to adequately evaluate and ‘‘(ii) to provide any data necessary for the tion, and Forestry of the Senate a report on competitively select applications for funding Secretary to issue a report on the use of the status of projects funded under the pro- under the program. funds under this paragraph; and gram, including— ‘‘(4) APPLICATION SELECTION.— ‘‘(iii) not to use any funds for administra- ‘‘(1) the number and types of partners and ‘‘(A) PRIORITY TO CERTAIN APPLICATIONS.— tion or contracting with another entity. producers participating in the partnership The Secretary shall give a higher priority to ‘‘(C) LIMITATION.—The Secretary may enter agreements selected; applications that— into not more than 10 alternative funding ar- ‘‘(2) the number of producers receiving as- ‘‘(i) assist producers in meeting or avoiding rangements under this paragraph. sistance; the need for a natural resource regulatory ‘‘(c) PAYMENTS.— ‘‘(3) total funding committed to projects, requirement; ‘‘(1) IN GENERAL.—In accordance with stat- including Federal and non-Federal resources; ‘‘(ii) significantly leverage non-Federal fi- utory requirements of the covered programs and nancial and technical resources and coordi- involved, the Secretary may make payments ‘‘(4) a description of how the funds under nate with other local, State, regional, or na- to a producer in an amount determined by section 1271C(b)(3) are being administered, tional efforts; the Secretary to be necessary to achieve the including— ‘‘(iii) deliver high percentages of applied purposes of the program. ‘‘(A) any oversight mechanisms that the conservation to address conservation prior- ‘‘(2) PAYMENTS TO CERTAIN PRODUCERS.— Secretary has implemented; ities or local, State, regional, or national The Secretary may provide payments for a ‘‘(B) the process through which the Sec- conservation initiatives; or period of 5 years— retary is resolving appeals by program par- ‘‘(iv) provide innovation in conservation ‘‘(A) to producers participating in a project ticipants; and methods and delivery, including outcome- that addresses water quantity concerns and ‘‘(C) the means by which the Secretary is based performance measures and methods. in an amount sufficient to encourage conver- tracking adherence to any applicable provi- ‘‘(B) OTHER APPLICATIONS.—The Secretary sion from irrigated to dryland farming; and sions for payment eligibility. may give priority to applications that— ‘‘(B) to producers participating in a project ‘‘(i) have a high percentage of producers in that addresses water quality concerns and in ‘‘SEC. 1271F. CRITICAL CONSERVATION AREAS. ‘‘(a) IN GENERAL.—When administering the the area to be covered by the agreement; or an amount sufficient to encourage adoption funding described in section 1271D(d)(3), the ‘‘(ii) meet other factors that are important of conservation practices and systems that Secretary shall select applications for part- for achieving the purposes of the program, as improve nutrient management. nership agreements and producer contracts determined by the Secretary. ‘‘(3) WAIVER AUTHORITY.—To assist in the implementation of the program, the Sec- within designated critical conservation ‘‘SEC. 1271C. ASSISTANCE TO PRODUCERS. retary may waive the applicability of the areas. ‘‘(a) IN GENERAL.—The Secretary shall limitation in section 1001D(b)(2) of this Act ‘‘(b) CRITICAL CONSERVATION AREA DES- enter into contracts to provide financial and for participating producers if the Secretary IGNATIONS.— technical assistance to— determines that the waiver is necessary to ‘‘(1) IN GENERAL.—The Secretary shall des- ‘‘(1) producers participating in a project fulfill the objectives of the program. ignate up to 6 geographical areas as critical with an eligible partner as described in sec- conservation areas based on the degree to ‘‘SEC. 1271D. FUNDING. tion 1271B; or which an area— ‘‘(a) AVAILABILITY OF FUNDS.—The Sec- ‘‘(2) producers that fit within the scope of retary shall use $100,000,000 of the funds of ‘‘(A) includes multiple States with signifi- a project described in section 1271B or a crit- the Commodity Credit Corporation for each cant agricultural production; ical conservation area designated pursuant of fiscal years 2013 through 2017 to carry out ‘‘(B) is covered by an existing regional, to section 1271F, but who are seeking to im- the program established under this subtitle. State, binational, or multistate agreement plement an eligible activity independent of a ‘‘(b) DURATION OF AVAILABILITY.—Funds or plan that has established objectives, goals partner. made available under subsection (a) shall re- and work plans and is adopted by a Federal, ‘‘(b) TERMS AND CONDITIONS.— main available until expended. State, or regional authority; ‘‘(1) CONSISTENCY WITH PROGRAM RULES.— ‘‘(c) ADDITIONAL FUNDING AND ACRES.— ‘‘(C) has water quality concerns, including ‘‘(A) IN GENERAL.—Except as provided in ‘‘(1) IN GENERAL.—In addition to the funds concerns for reducing erosion, promoting subparagraph (B), the Secretary shall ensure made available under subsection (a), the Sec- sediment control, and addressing nutrient that the terms and conditions of a contract retary shall reserve 8 percent of the funds management activities affecting large bodies under this section are consistent with the and acres made available for a covered proof water of regional, national, or inter- applicable rules of the covered programs to gram for each of fiscal years 2013 through national significance; be used as part of the project, as described in 2017 in order to ensure additional resources ‘‘(D) has water quantity concerns, includ- the application under section 1271B(d)(3)(C). are available to carry out this program. ing— ‘‘(B) ADJUSTMENTS.—Except for statutory ‘‘(2) UNUSED FUNDS AND ACRES.—Any funds ‘‘(i) concerns for groundwater, surface program requirements governing appeals, or acres reserved under paragraph (1) for a water, aquifer, or other water sources; or payment limitations, and conservation com- fiscal year from a covered program that are ‘‘(ii) a need to promote water retention and pliance, the Secretary may adjust the discre- not obligated under this program by April 1 flood prevention; or tionary program rules of a covered proof that fiscal year shall be returned for use ‘‘(E) is subject to regulatory requirements gram— under the covered program. that could reduce the economic scope of ag- ‘‘(i) to provide a simplified application and ‘‘(d) ALLOCATION OF FUNDING.—Of the funds ricultural operations within the area. evaluation process; and and acres made available for the program ‘‘(2) EXPIRATION.—Critical conservation ‘‘(ii) to better reflect unique local cir- under subsections (a) and (c), the Secretary area designations under this section shall ex- cumstances and purposes if the Secretary de- shall allocate— pire after 5 years, subject to redesignation, termines such adjustments are necessary to ‘‘(1) 25 percent of the funds and acres to except that the Secretary may withdraw des- achieve the purposes of the program. projects based on a State competitive proc- ignation from an area if the Secretary finds ‘‘(2) ALTERNATIVE FUNDING ARRANGE- ess administered by the State conserva- the area no longer meets the conditions de- MENTS.— tionist, with the advice of the State tech- scribed in paragraph (1). ‘‘(A) IN GENERAL.—For the purposes of pro- nical committee; ‘‘(c) ADMINISTRATION.— viding assistance for land described in sub- ‘‘(2) 40 percent of the funds and acres to ‘‘(1) IN GENERAL.—Except as provided in section (a) and section 1271F, the Secretary projects based on a national competitive paragraph (2), the Secretary shall administer

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4511 any partnership agreement or producer con- note; Public Law 107–171) is amended to read shall provide matching non-Federal funds in tract under this section in a manner that is as follows: an amount equal to 50 percent of the amount consistent with the terms of the program. ‘‘SEC. 2507. TERMINAL LAKES ASSISTANCE. described in subparagraph (A), including ad- ‘‘(2) RELATIONSHIP TO EXISTING ACTIVITY.— ‘‘(a) DEFINITIONS.—In this section: ditional non-Federal funds. The Secretary shall, to the maximum extent ‘‘(1) ELIGIBLE LAND.—The term ‘eligible ‘‘(D) CONDITIONS.—To receive a land pur- practicable, ensure that eligible activities land’ means privately owned agricultural chase grant, a State shall agree— carried out in critical conservation areas land (including land in which a State has a ‘‘(i) to ensure that any eligible land pur- designated under this section complement property interest as a result of state water chased is— and are consistent with other Federal and law)— ‘‘(I) conveyed in fee simple to the State; State programs and water quality and quan- ‘‘(A) that a landowner voluntarily agrees and tity strategies.’’. to sell to a State; and ‘‘(II) free from mortgages or other liens at (b) EFFECTIVE DATE.—The amendment ‘‘(B) which— the time title is transferred; made by this section shall take effect on Oc- ‘‘(i)(I) is ineligible for enrollment as a wet- ‘‘(ii) to maintain ownership of the eligible tober 1, 2012. land easement established under the Agricul- land in perpetuity; Subtitle F—Other Conservation Programs tural Conservation Easement Program under ‘‘(iii) to pay (from funds other than grant dollars awarded) any costs associated with subtitle H of the Food Security Act of 1985; SEC. 2501. CONSERVATION OF PRIVATE GRAZING the purchase of eligible land under this sec- LAND. ‘‘(II) is flooded to— tion, including surveys and legal fees; and Section 1240M(e) of the Food Security Act ‘‘(aa) an average depth of at least 6.5 feet; ‘‘(iv) to keep eligible land in a conserving of 1985 (16 U.S.C. 3839bb(e)) is amended in- or use, as defined by the Secretary. serting ‘‘and $30,000,000 for each of fiscal ‘‘(bb) a level below which the State deter- ‘‘(E) LOSS OF FEDERAL BENEFITS.—Eligible years 2013 through 2017’’ before the period at mines the management of the water level is land purchased with a grant under this sec- the end. beyond the control of the State or land- tion shall lose eligibility for any benefits owner; or SEC. 2502. GRASSROOTS SOURCE WATER PRO- under other Federal programs, including— TECTION PROGRAM. ‘‘(III) is inaccessible for agricultural use ‘‘(i) benefits under title XII of the Food Se- Section 1240O(b) of the Food Security Act due to the flooding of adjoining property curity Act of 1985 (16 U.S.C. 3801 et seq.); of 1985 (16 U.S.C. 3839bb–2(b)) is amended by (such as islands of agricultural land created ‘‘(ii) benefits under the Federal Crop Insur- inserting ‘‘and $15,000,000 for each of fiscal by flooding); ance Act (7 U.S.C. 1501 et seq.); and years 2013 through 2017’’ before the period at ‘‘(ii) is located within a watershed with ‘‘(iii) covered benefits described in section the end. water rights available for lease or purchase; 1001D(b) of the Food Security Act of 1985 (7 SEC. 2503. VOLUNTARY PUBLIC ACCESS AND and U.S.C. 1308–3a). HABITAT INCENTIVE PROGRAM. ‘‘(iii) has been used during at least 5 of the ‘‘(F) PROHIBITION.—Any Federal rights or (a) FUNDING.—Section 1240R(f) of the Food immediately preceding 30 years— benefits associated with eligible land prior Security Act of 1985 (16 U.S.C. 3839bb–5(f)) is ‘‘(I) to produce crops or hay; or to purchase by a State may not be trans- amended by inserting ‘‘and $40,000,000 for the ‘‘(II) as livestock pasture or grazing. ferred to any other land or person in antici- period of fiscal years 2013 through 2017’’ be- ‘‘(2) PROGRAM.—The term ‘program’ means pation of or as a result of such purchase. fore the period at the end . the voluntary land purchase program estab- ‘‘(d) WATER ASSISTANCE.— (b) REPORT ON PROGRAM EFFECTIVENESS.— lished under this section. ‘‘(1) IN GENERAL.—The Secretary of the In- Not later than 2 years after the date of en- ‘‘(3) TERMINAL LAKE.—The term ‘terminal terior, acting through the Commissioner of actment of this Act, the Secretary of Agri- lake’ means a lake and its associated ripar- Reclamation, may use the funds described in culture shall submit to the Committee on ian and watershed resources that is— subsection (e)(2) to administer and provide Agriculture of the House of Representatives ‘‘(A) considered flooded because there is no financial assistance to carry out this sub- and the Committee on Agriculture, Nutri- natural outlet for water accumulating in the section to provide water and assistance to a tion, and Forestry of the Senate a report lake or the associated riparian area such terminal lake described in subsection evaluating the effectiveness of the voluntary that the watershed and surrounding land is (a)(3)(B) through willing sellers or willing public access and habitat incentive program consistently flooded; or participants only— established by section 1240R of the Food Se- ‘‘(B) considered terminal because it has no ‘‘(A) to lease water; curity Act of 1985 (16 U.S.C. 3839bb–5), includ- natural outlet and is at risk due to a history ‘‘(B) to purchase land, water appurtenant ing— of consistent Federal assistance to address to the land, and related interests; and (1) identifying cooperating agencies; critical resource conditions, including insuf- ‘‘(C) to carry out research, support and (2) identifying the number of land holdings ficient water available to meet the needs of conservation activities for associated fish, and total acres enrolled by State; the lake, general uses, and water rights. wildlife, plant, and habitat resources.’’ (3) evaluating the extent of improved ac- ‘‘(b) ASSISTANCE.—The Secretary shall— ‘‘(2) EXCLUSIONS.—The Secretary of the In- cess on eligible land, improved wildlife habi- ‘‘(1) provide grants under subsection (c) for terior may not use this subsection to deliver tat, and related economic benefits; and the purchase of eligible land impacted by a assistance to the Great Salt Lake in Utah, (4) any other relevant information and terminal lake described in subsection lakes that are considered dry lakes, or other data relating to the program that would be (a)(3)(A); and lakes that do not meet the purposes of this helpful to such Committees. ‘‘(2) provide funds to the Secretary of the section, as determined by the Secretary of (c) EFFECTIVE DATE.—The amendment Interior pursuant to subsection (e)(2) with the Interior. made by this section shall take effect on Oc- assistance in accordance with subsection (d) ‘‘(3) TRANSITIONAL PROVISION.— tober 1, 2012. for terminal lakes described in subsection ‘‘(A) IN GENERAL.—Notwithstanding any SEC. 2504. AGRICULTURE CONSERVATION EXPE- (a)(3)(B). other provision of this section, any funds RIENCED SERVICES PROGRAM. ‘‘(c) LAND PURCHASE GRANTS.— made available before the date of enactment (a) FUNDING.—Section 1252 of the Food Se- ‘‘(1) IN GENERAL.—Using funds provided of the Agriculture Reform, Food, and Jobs curity Act of 1985 (16 U.S.C. 3851) is amended under subsection (e)(1), the Secretary shall Act of 2012 under a provision of law described by striking subsection (c) and inserting the make available land purchase grants to in subparagraph (B) shall remain available following: States for the purchase of eligible land in ac- using the provisions of law (including regula- ‘‘(c) FUNDING.— cordance with this subsection. tions) in effect on the day before the date of ‘‘(1) IN GENERAL.—The Secretary may carry ‘‘(2) IMPLEMENTATION.— enactment of that Act. out the ACES program using funds made ‘‘(A) AMOUNT.—A land purchase grant shall ‘‘(B) DESCRIBED LAWS.—The provisions of available to carry out each program under be in an amount not to exceed the lesser of— law described in this section are— this title. ‘‘(i) 50 percent of the total purchase price ‘‘(i) section 2507 of the Farm Security and ‘‘(2) EXCLUSION.—Funds made available to per acre of the eligible land; or Rural Investment Act of 2002 (43 U.S.C. 2211 carry out the conservation reserve program ‘‘(ii)(I) in the case of eligible land that was note; Public Law 107–171) (as in effect on the may not be used to carry out the ACES pro- used to produce crops or hay, $400 per acre; day before the date of enactment of the Agri- gram.’’. and culture Reform, Food, and Jobs Act of 2012); (b) EFFECTIVE DATE.—The amendment ‘‘(II) in the case of eligible land that was ‘‘(ii) section 207 of the Energy and Water made by this section shall take effect on Oc- pasture or grazing land, $200 per acre. Development Appropriations Act, 2003 (Pub- tober 1, 2012. ‘‘(B) DETERMINATION OF PURCHASE PRICE.— lic Law 108–7; 117 Stat. 146); SEC. 2505. SMALL WATERSHED REHABILITATION A State purchasing eligible land with a land ‘‘(iii) section 208 of the Energy and Water PROGRAM. purchase grant shall ensure, to the max- Development Appropriations Act, 2006 (Pub- Section 14(h)(2)(E) of the Watershed Pro- imum extent practicable, that the purchase lic Law 109–103; 119 Stat. 2268, 123 Stat. 2856); tection and Flood Prevention Act (16 U.S.C. price of such land reflects the value, if any, and 1012(h)(2)(E)) is amended by striking ‘‘2012’’ of other encumbrances on the eligible land to ‘‘(iv) section 208 of the Energy and Water and inserting ‘‘2017’’. be purchased, including easements and min- Development and Related Agencies Appro- SEC. 2506. TERMINAL LAKES ASSISTANCE. eral rights. priations Act, 2010 (Public Law 111–85; 123 Section 2507 of the Food, Security, and ‘‘(C) COST-SHARE REQUIRED.—To be eligible Stat. 2858, 123 Stat. 2967, 125 Stat. 867). Rural Investment Act of 2002 (43 U.S.C. 2211 to receive a land purchase grant, a State ‘‘(e) FUNDING.—

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‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— fiscal years, but shall reduce the amount of SEC. 2605. ANNUAL REPORT ON PROGRAM EN- There is authorized to be appropriated to the additional funds made available in the subse- ROLLMENTS AND ASSISTANCE. Secretary to carry out subsection (c) quent fiscal year by an amount equal to the Subsection (i) of section 1241 of the Food $25,000,000, to remain available until ex- amount remaining unobligated.’’. Security Act of 1985 (16 U.S.C. 3841) (as redes- pended. (c) EFFECTIVE DATE.—The amendments ignated by section 2601(b)(1)) is amended— ‘‘(2) COMMODITY CREDIT CORPORATION.—As made by this section shall take effect on Oc- (1) in paragraph (1), by striking ‘‘wetlands soon as practicable after the date of enact- tober 1, 2012. reserve program’’ and inserting ‘‘agricul- ment of the Agriculture Reform, Food, and SEC. 2602. TECHNICAL ASSISTANCE. tural conservation easement program’’; Jobs Act of 2012, the Secretary shall transfer Section 1241 of the Food Security Act of (2) by striking paragraphs (2) and (3) and to the Bureau of Reclamation Water and Re- 1985 (16 U.S.C. 3841) is amended by striking redesignating paragraphs (4), (5), and (6) as lated Resources Account $150,000,000 from the subsection (c) (as redesignated by section paragraphs (2), (3), and (4), respectively; funds of the Commodity Credit Corporation 2601(b)(1)) and inserting the following: (3) in paragraph (3) (as so redesignated)— to carry out subsection (d), to remain avail- ‘‘(c) TECHNICAL ASSISTANCE.— (A) by striking ‘‘agricultural water enable until expended.’’. ‘‘(1) AVAILABILITY OF FUNDS.—Commodity hancement program’’ and inserting ‘‘regional Credit Corporation funds made available for conservation partnership program’’; and Subtitle G—Funding and Administration a fiscal year for each of the programs speci- (B) by striking ‘‘section 1240I(g)’’ and in- SEC. 2601. FUNDING. fied in subsection (a)— serting ‘‘section 1271C(c)(3)’’; and (a) IN GENERAL.—Section 1241 of the Food ‘‘(A) shall be available for the provision of (4) by adding at the end the following: Security Act of 1985 (16 U.S.C. 3841) is amend- technical assistance for the programs for ‘‘(5) Payments made under the conserva- ed by striking subsection (a) and inserting which funds are made available as necessary tion stewardship program. the following: to implement the programs effectively; and ‘‘(6) Waivers granted by the Secretary ‘‘(a) ANNUAL FUNDING.—For each of fiscal ‘‘(B) shall not be available for the provi- under section 1265B(b)(2)(C).’’. years 2013 through 2017, the Secretary shall sion of technical assistance for conservation SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR use the funds, facilities, and authorities of programs specified in subsection (a) other CONSERVATION PROGRAMS. the Commodity Credit Corporation to carry than the program for which the funds were Section 1244 of the Food Security Act of out the following programs under this title made available. 1985 (16 U.S.C. 3844) is amended— (including the provision of technical assist- ‘‘(2) REPORT.—Not later than December 31, (1) in subsection (a)(2), by adding at the ance): 2012, the Secretary shall submit (and update end the following: ‘‘(1) The conservation reserve program as necessary in subsequent years) to the ‘‘(E) Veteran farmers or ranchers (as de- under subchapter B of chapter 1 of subtitle Committee on Agriculture of the House of fined in section 2501(e) of the Food, Agri- D, including, to the maximum extent prac- Representatives and the Committee on Agri- culture, Conservation, and Trade Act of 1990 ticable— culture, Nutrition, and Forestry of the Sen- (7 U.S.C. 2279(e))).’’; ‘‘(A) $10,000,000 for the period of fiscal ate a report— (2) in subsection (d), by inserting ‘‘, H, and years 2013 through 2017 to provide payments ‘‘(A) detailing the amount of technical as- I’’ before the period at the end; under paragraph (3) of section 1234(b) in con- sistance funds requested and apportioned in (3) in subsection (f)— nection with thinning activities conducted each program specified in subsection (a) dur- (A) in paragraph (1)(B), by striking ‘‘coun- on land described in subparagraph (B)(iii) of ing the preceding fiscal year; and try’’ and inserting ‘‘county’’; and that paragraph; and ‘‘(B) any other data relating to this provi- (B) in paragraph (3), by striking ‘‘sub- ‘‘(B) $50,000,000 for the period of fiscal years sion that would be helpful to such Commit- section (c)(2)(B) or (f)(4)’’ and inserting ‘‘sub- 2013 through 2017 to carry out section 1235(f) tees.’’. section (c)(2)(A)(ii) or (f)(2)’’; (4) by striking subsection (i) and inserting to facilitate the transfer of land subject to SEC. 2603. REGIONAL EQUITY. contracts from retired or retiring owners and Section 1241 of the Food Security Act of the following: ‘‘(i) CONSERVATION APPLICATION PROCESS.— operators to beginning farmers or ranchers 1985 (16 U.S.C. 3841) is amended by striking ‘‘(1) INITIAL APPLICATION.— and socially disadvantaged farmers or ranch- subsection (e) (as redesignated by section ‘‘(A) IN GENERAL.—Not later than 1 year ers. 2601(b)(1)) and inserting the following: ‘‘(2) The Agricultural Conservation Ease- ‘‘(e) REGIONAL EQUITY.— after the date of enactment of this sub- ment Program under subtitle H using to the ‘‘(1) EQUITABLE DISTRIBUTION.—When deter- section, the Secretary shall establish a sin- maximum extent practicable— mining funding allocations each fiscal year, gle, simplified application for eligible enti- ‘‘(A) $223,000,000 for fiscal year 2013; the Secretary shall, after considering avail- ties to use in initially requesting assistance ‘‘(B) $702,000,000 for fiscal year 2014; able funding and program demand in each under any conservation program adminis- ‘‘(C) $500,000,000 for fiscal year 2015; State, provide a distribution of funds for tered by the Secretary (referred to in this ‘‘(D) $525,000,000 for fiscal year 2016; and conservation programs under subtitle D (ex- subsection as the ‘initial application’). ‘‘(E) $250,000,000 for fiscal year 2017. cluding the conservation reserve program ‘‘(B) REQUIREMENTS.—To the maximum ex- ‘‘(3) The conservation security program under subchapter B of chapter 1), subtitle H tent practicable, the Secretary shall ensure under subchapter A of chapter 2 of subtitle (excluding wetland easements under section that— D, using such sums as are necessary to ad- 1265C), and subtitle I to ensure equitable pro- ‘‘(i) a conservation program applicant is minister contracts entered into before Sep- gram participation proportional to historical not required to provide information that is tember 30, 2008. funding allocations and usage by all States. duplicative of information or resources al- ‘‘(4) The conservation stewardship program ‘‘(2) MINIMUM PERCENTAGE.—In determining ready available to the Secretary for that ap- under subchapter B of chapter 2 of subtitle the specific funding allocations under para- plicant and the specific operation of the ap- D. graph (1), the Secretary shall— plicant; and ‘‘(5) The environmental quality incentives ‘‘(A) ensure that during the first quarter of ‘‘(ii) the initial application process is program under chapter 4 of subtitle D, using, each fiscal year each State has the oppor- streamlined to minimize complexity and re- to the maximum extent practicable— tunity to establish that the State can use an dundancy. ‘‘(A) $1,455,000,000 for fiscal year 2013; aggregate allocation amount of at least 0.6 ‘‘(2) REVIEW OF APPLICATION PROCESS.— ‘‘(B) $1,645,000,000 for fiscal year 2014; and percent of the funds made available for those ‘‘(A) IN GENERAL.—Not later than 1 year ‘‘(C) $1,650,000,000 for each of fiscal years conservation programs; and after the date of enactment of this sub- 2015 through 2017.’’. ‘‘(B) for each State that can so establish, section, the Secretary shall review the appli- (b) GUARANTEED AVAILABILITY OF FUNDS.— provide an aggregate amount of at least 0.6 cation process for each conservation pro- Section 1241 of the Food Security Act of 1985 percent of the funds made available for those gram administered by the Secretary, includ- (16 U.S.C. 3841) is amended— conservation programs.’’. ing the forms and processes used to receive assistance requests from eligible program (1) by redesignating subsections (b) SEC. 2604. RESERVATION OF FUNDS TO PROVIDE through (h) as subsections (c) through (i), re- ASSISTANCE TO CERTAIN FARMERS participants. spectively; and OR RANCHERS FOR CONSERVATION ‘‘(B) REQUIREMENTS.—In carrying out the (2) by inserting after subsection (a) the fol- ACCESS. review, the Secretary shall determine what lowing: Subsection (h) of section 1241 of the Food information the participant is required to ‘‘(b) AVAILABILITY OF FUNDS.—Amounts Security Act of 1985 (16 U.S.C. 3841) (as redes- submit during the application process, in- made available by subsection (a) shall be ignated by section 2601(b)(1)) is amended— cluding— used by the Secretary to carry out the pro- (1) in paragraph (1) by striking ‘‘2012’’ and ‘‘(i) identification information for the ap- grams specified in such subsection for fiscal inserting ‘‘2017’’; and plicant; years 2013 through 2017 and shall remain (2) by adding at the end the following: ‘‘(ii) identification and location informa- available until expended. Amounts made ‘‘(4) PREFERENCE.—In providing assistance tion for the land parcel or tract of concern; available for the programs specified in such under paragraph (1), the Secretary shall give ‘‘(iii) a general statement of the need or re- subsection during a fiscal year through preference to a veteran farmer or rancher (as source concern of the applicant for the land modifications, cancellations, terminations, defined in section 2501(e) of the Food, Agri- parcel or tract; and and other related administrative actions and culture, Conservation, and Trade Act of 1990 ‘‘(iv) the minimum amount of other infor- not obligated in that fiscal year shall remain (7 U.S.C. 2279(e))) that qualifies under sub- mation the Secretary considers to be essen- available for obligation during subsequent paragraph (A) or (B) of paragraph (1).’’. tial for the applicant to provide personally.

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‘‘(3) REVISION AND STREAMLINE.— ‘‘SEC. 1246. REGULATIONS. Subtitle H—Repeal of Superseded Program ‘‘(A) IN GENERAL.—Not later than 1 year ‘‘(a) IN GENERAL.—The Secretary shall pro- Authorities and Transitional Provisions after the date of enactment of this sub- mulgate such regulations as are necessary to SEC. 2701. COMPREHENSIVE CONSERVATION EN- section, the Secretary shall carry out a revi- implement programs under this title, includ- HANCEMENT PROGRAM. sion of the application forms and processes ing such regulations as the Secretary deter- Section 1230 of the Food Security Act of for each conservation program administered mines to be necessary to ensure a fair and 1985 (16 U.S.C. 3830) is repealed. by the Secretary to enable use of informa- reasonable application of the limitations es- SEC. 2702. EMERGENCY FORESTRY CONSERVA- tion technology to incorporate appropriate tablished under section 1244(f). TION RESERVE PROGRAM. data and information concerning the con- ‘‘(b) RULEMAKING PROCEDURE.—The pro- (a) REPEAL.—Section 1231A of the Food Se- servation needs and solutions appropriate for mulgation of regulations and administration curity Act of 1985 (16 U.S.C. 3831a) is re- the land area identified by the applicant. of programs under this title— pealed. ‘‘(B) GOAL.—The goal of the revision shall ‘‘(1) shall be carried out without regard (b) TRANSITIONAL PROVISIONS.— be to streamline the application process to to— (1) EFFECT ON EXISTING CONTRACTS.—The minimize the burden placed on applicants. ‘‘(A) the Statement of Policy of the Sec- amendment made by this section shall not ‘‘(4) CONSERVATION PROGRAM APPLICATION.— retary effective July 24, 1971 (36 Fed. Reg. affect the validity or terms of any contract ‘‘(A) IN GENERAL.—Once the needs of an ap- 13804), relating to notices of proposed rule- entered into by the Secretary of Agriculture plicant have been adequately assessed by the making and public participation in rule- under section 1231A of the Food Security Act Secretary, or a third party provider under making; and of 1985 (16 U.S.C. 3831a) before October 1, 2012, section 1242, based on the initial application, ‘‘(B) chapter 35 of title 44, United States or any payments required to be made in con- in order to determine the 1 or more programs Code (commonly known as the Paperwork nection with the contract. under this title that best match the needs of Reduction Act); and (2) FUNDING.—The Secretary may use funds the applicant, with the approval of the appli- ‘‘(2) shall be made as an interim rule effec- made available to carry out the conservation cant, the Secretary may convert the initial tive on publication with an opportunity for reserve program under subchapter B of chap- application into the specific application for notice and comment. ter 1 of subtitle D of title XII of the Food Se- assistance for the relevant conservation pro- ‘‘(c) CONGRESSIONAL REVIEW OF AGENCY curity Act of 1985 (16 U.S.C. 3831 et seq.) to gram. RULEMAKING.—In promulgating regulations continue to carry out contracts referred to ‘‘(B) SECRETARIAL BURDEN.—To the max- under this section, the Secretary shall use in paragraph (1) using the provisions of law imum extent practicable, the Secretary the authority provided under section 808 of and regulation applicable to such contracts shall— title 5, United States Code.’’. as in existence on September 30, 2012. ‘‘(i) complete the specific application for SEC. 2608. STANDARDS FOR STATE TECHNICAL (c) EFFECTIVE DATE.—The amendment conservation program assistance for each ap- COMMITTEES. made by this section shall take effect on Oc- plicant; and Section 1261(b) of the Food Security Act of tober 1, 2012. ‘‘(ii) request only that specific further in- 1985 (16 U.S.C. 3861(b)) is amended by striking SEC. 2703. WETLANDS RESERVE PROGRAM. formation from the applicant that is not al- ‘‘Not later than 180 days after the date of en- (a) REPEAL.—Subchapter C of chapter 1 of ready available to the Secretary. actment of the Food, Conservation, and En- subtitle D of title XII of the Food Security ‘‘(5) IMPLEMENTATION AND NOTIFICATION.— ergy Act of 2008, the Secretary shall de- Act of 1985 (16 U.S.C. 3837 et seq.) is repealed. Not later than 1 year after the date of enact- velop’’ and inserting ‘‘The Secretary shall (b) TRANSITIONAL PROVISIONS.— ment of this subsection, the Secretary shall review and update as necessary’’. (1) EFFECT ON EXISTING CONTRACTS AND submit to the Committee on Agriculture of SEC. 2609. HIGHLY ERODIBLE LAND AND WET- EASEMENTS.—The amendment made by this the House of Representatives and the Com- LAND CONSERVATION FOR CROP IN- section shall not affect the validity or terms mittee on Agriculture, Nutrition, and For- SURANCE. of any contract or easement entered into by estry of the Senate written notification that (a) HIGHLY ERODIBLE LAND PROGRAM INELI- the Secretary of Agriculture under sub- the Secretary has fulfilled the requirements GIBILITY.— chapter C of chapter 1 of subtitle D of title of this subsection.’’; and (1) IN GENERAL.—Section 1211(a)(1) of the XII of the Food Security Act of 1985 (16 (5) by adding at the end the following: Food Security Act of 1985 (16 U.S.C. U.S.C. 3837 et seq.) before October 1, 2012, or ‘‘(j) IMPROVED ADMINISTRATIVE EFFICIENCY 3811(a)(1)) is amended— any payments required to be made in connec- AND EFFECTIVENESS.—In administrating a (A) in subparagraph (C), by striking ‘‘or’’ tion with the contract or easement. conservation program under this title, the at the end; (2) FUNDING.— Secretary shall, to the maximum extent (B) in subparagraph (D), by adding ‘‘or’’ at (A) USE OF PRIOR YEAR FUNDS.—Notwith- practicable— the end; and standing the repeal of subchapter C of chap- ‘‘(1) seek to reduce administrative burdens (C) by adding at the end the following: ter 1 of subtitle D of title XII of the Food Se- and costs to producers by streamlining con- ‘‘(E) any portion of premium paid by the curity Act of 1985 (16 U.S.C. 3837 et seq.), any servation planning and program resources; Federal Crop Insurance Corporation for a funds made available from the Commodity and plan or policy of insurance under the Federal Credit Corporation to carry out the wetlands ‘‘(2) take advantage of new technologies to Crop Insurance Act (7 U.S.C. 1501 et seq.);’’. reserve program under that subchapter for enhance efficiency and effectiveness. (2) EXEMPTIONS.—Section 1212(a)(2) of the fiscal years 2009 through 2012 shall be made ‘‘(k) RELATION TO OTHER PAYMENTS.—Any payment received by an owner or operator Food Security Act of 1985 (16 U.S.C. available to carry out contracts or ease- under this title, including an easement pay- 3812(a)(2)) is amended— ments referred to in paragraph (1) that were ment or rental payment, shall be in addition (A) in the first sentence, by striking ‘‘(2) entered into prior to October 1, 2012 (includ- to, and not affect, the total amount of pay- If,’’ and inserting the following: ing the provision of technical assistance), ments that the owner or operator is other- ‘‘(2) ELIGIBILITY BASED ON COMPLIANCE WITH provided that no such contract or easement wise eligible to receive under any of the fol- CONSERVATION PLAN.— is modified so as to increase the amount of lowing: ‘‘(A) IN GENERAL.—If,’’; the payment received. ‘‘(1) This Act. (B) in the second sentence, by striking ‘‘In (B) OTHER.—The Secretary may use funds ‘‘(2) The Agricultural Act of 1949 (7 U.S.C. carrying’’ and inserting the following: made available to carry out the agricultural 1421 et seq.). ‘‘(B) MINIMIZATION OF DOCUMENTATION.—In conservation easement program under sub- ‘‘(3) The Agriculture Reform, Food, and carrying’’; and title H of title XII of the Food Security Act Jobs Act of 2012. (C) by adding at the end the following: of 1985, as added by section 2301 of this Act, ‘‘(4) Any law that succeeds a law specified ‘‘(C) CROP INSURANCE.—In the case of pay- to continue to carry out contracts and ease- in paragraph (1), (2), or (3). ments that are subject to section 1211 for the ments referred to in paragraph (1) using the ‘‘(l) FUNDING FOR INDIAN TRIBES.—In car- first time due to the amendment made by provisions of law and regulation applicable rying out the conservation stewardship pro- section 2609(a) of the Agriculture Reform, to such contracts and easements as in exist- gram under subchapter B of chapter 2 of sub- Food, and Jobs Act of 2012, any person who ence on September 30, 2012. title D and the environmental quality incen- produces an agricultural commodity on the (c) EFFECTIVE DATE.—The amendment tives program under chapter 4 of subtitle D, land that is the basis of the payments shall made by this section shall take effect on Oc- the Secretary may enter into alternative have until January 1 of the fifth year after tober 1, 2012. funding arrangements with Indian tribes if the date on which the payments became sub- SEC. 2704. FARMLAND PROTECTION PROGRAM the Secretary determines that the goals and ject to section 1211 to develop and comply AND FARM VIABILITY PROGRAM. objectives of the programs will be met by with an approved conservation plan.’’. (a) REPEAL.—Subchapter C of chapter 2 of such arrangements, and that statutory limi- (b) WETLAND CONSERVATION PROGRAM IN- subtitle D of title XII of the Food Security tations regarding contracts with individual ELIGIBILITY.—Section 1221(b) of the Food Se- Act of 1985 (16 U.S.C. 3838h et seq.) is re- producers will not be exceeded by any Tribal curity Act of 1985 (16 U.S.C. 3821) is amended pealed. member.’’. by adding at the end the following: (b) TRANSITIONAL PROVISIONS.— SEC. 2607. RULEMAKING AUTHORITY. ‘‘(4) Any portion of premium paid by the (1) EFFECT ON EXISTING AGREEMENTS AND Subtitle E of title XII of the Food Security Federal Crop Insurance Corporation for a EASEMENTS.—The amendment made by this Act of 1985 (16 U.S.C. 3841 et seq.) is amended plan or policy of insurance under the Federal section shall not affect the validity or terms by adding at the end the following: Crop Insurance Act (7 U.S.C. 1501 et seq.).’’. of any agreement or easement entered into

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by the Secretary of Agriculture under sub- (b) TRANSITIONAL PROVISIONS.— SEC. 2709. CHESAPEAKE BAY WATERSHED PRO- chapter C of chapter 2 of subtitle D of title (1) EFFECT ON EXISTING CONTRACTS AND GRAM. XII of the Food Security Act of 1985 (16 AGREEMENTS.—The amendment made by this (a) REPEAL.—Section 1240Q of the Food Se- U.S.C. 3838h et seq.) before October 1, 2012, or section shall not affect the validity or terms curity Act of 1985 (16 U.S.C. 3839bb–4) is re- any payments required to be made in connec- of any contract or agreement entered into by pealed. tion with the agreement or easement. the Secretary of Agriculture under section (b) TRANSITIONAL PROVISIONS.— (2) FUNDING.— 1240I of the Food Security Act of 1985 (16 (1) EFFECT ON EXISTING CONTRACTS, AGREE- (A) USE OF PRIOR YEAR FUNDS.—Notwith- U.S.C. 3839aa–9) before October 1, 2012, or any MENTS, AND EASEMENTS.—The amendment standing the repeal of subchapter C of chap- payments required to be made in connection made by this section shall not affect the va- ter 2 of subtitle D of title XII of the Food Se- with the contract or agreement. lidity or terms of any contract, agreement, curity Act of 1985 (16 U.S.C. 3838h et seq.), (2) FUNDING.— or easement entered into by the Secretary of any funds made available from the Com- (A) USE OF PRIOR YEAR FUNDS.—Notwith- Agriculture under section 1240Q of the Food modity Credit Corporation to carry out the standing the repeal of section 1240I of the Security Act of 1985 (16 U.S.C. 3839bb–4) be- farmland protection program under that sub- Food Security Act of 1985 (16 U.S.C. 3839aa– fore October 1, 2012, or any payments re- chapter for fiscal years 2009 through 2012 9), any funds made available from the Com- quired to be made in connection with the shall be made available to carry out agree- modity Credit Corporation to carry out the contract, agreement, or easement. ments and easements referred to in para- agricultural water enhancement program (2) FUNDING.— graph (1) that were entered into prior to Oc- under that section for fiscal years 2009 (A) USE OF PRIOR YEAR FUNDS.—Notwith- tober 1, 2012 (including the provision of tech- through 2012 shall be made available to carry standing the repeal of section 1240Q of the nical assistance). out contracts and agreements referred to in Food Security Act of 1985 (16 U.S.C. 3839bb– (B) OTHER.—On exhaustion of funds made paragraph (1) that were entered into prior to 4), any funds made available from the Com- available under subparagraph (A), the Sec- October 1, 2012 (including the provision of modity Credit Corporation to carry out the retary may use funds made available to technical assistance). Chesapeake Bay watershed program under carry out the agricultural conservation ease- (B) OTHER.—On exhaustion of funds made that section for fiscal years 2009 through 2012 ment program under subtitle H of title XII of available under subparagraph (A), the Sec- shall be made available to carry out con- the Food Security Act of 1985, as added by retary may use funds made available to tracts, agreements, and easements referred section 2301 of this Act, to continue to carry carry out the regional conservation partner- to in paragraph (1) that were entered into out agreements and easements referred to in ships program under subtitle I of title XII of prior to October 1, 2012 (including the provi- paragraph (1) using the provisions of law and the Food Security Act of 1985, as added by sion of technical assistance). regulation applicable to such agreements section 2401 of this Act, to continue to carry (B) OTHER.—The Secretary may use funds and easement as in existence on September out contracts and agreements referred to in made available to carry out the regional con- 30, 2012. paragraph (1) using the provisions of law and servation partnerships program under sub- (c) EFFECTIVE DATE.—The amendment regulation applicable to such contracts and title I of title XII of the Food Security Act made by this section shall take effect on Oc- agreements as in existence on September 30, of 1985, as added by section 2401 of this Act, tober 1, 2012. 2012. SEC. 2705. GRASSLAND RESERVE PROGRAM. to continue to carry out contracts, agree- (c) EFFECTIVE DATE.—The amendment ments, and easements referred to in para- (a) REPEAL.—Subchapter D of chapter 2 of made by this section shall take effect on Oc- subtitle D of title XII of the Food Security graph (1) using the provisions of law and reg- tober 1, 2012. Act of 1985 (16 U.S.C. 3838n et seq.) is re- ulation applicable to such contracts, agree- pealed. SEC. 2707. WILDLIFE HABITAT INCENTIVE PRO- ments, and easements as in existence on Sep- (b) TRANSITIONAL PROVISIONS.— GRAM. tember 30, 2012. (a) REPEAL.—Section 1240N of the Food Se- (1) EFFECT ON EXISTING CONTRACTS, AGREE- (c) EFFECTIVE DATE.—The amendment MENTS, AND EASEMENTS.—The amendment curity Act of 1985 (16 U.S.C. 3839bb–1) is re- made by this section shall take effect on Oc- made by this section shall not affect the va- pealed. tober 1, 2012. lidity or terms of any contract, agreement, (b) TRANSITIONAL PROVISIONS.— or easement entered into by the Secretary of (1) EFFECT ON EXISTING CONTRACTS.—The SEC. 2710. COOPERATIVE CONSERVATION PART- Agriculture under subchapter D of chapter 2 amendment made by this section shall not NERSHIP INITIATIVE. of subtitle D of title XII of the Food Security affect the validity or terms of any contract (a) REPEAL.—Section 1243 of the Food Se- Act of 1985 (16 U.S.C. 3838n et seq.) before Oc- entered into by the Secretary of Agriculture curity Act of 1985 (16 U.S.C. 3843) is repealed. tober 1, 2012, or any payments required to be under section 1240N of the Food Security Act (b) TRANSITIONAL PROVISIONS.— made in connection with the contract, agree- of 1985 (16 U.S.C. 3839bb–1) before October 1, (1) EFFECT ON EXISTING CONTRACTS AND ment, or easement. 2012, or any payments required to be made in AGREEMENTS.—The amendment made by this (2) FUNDING.— connection with the contract. section shall not affect the validity or terms (A) USE OF PRIOR YEAR FUNDS.—Notwith- (2) FUNDING.— of any contract or agreement entered into by standing the repeal of subchapter D of chap- (A) USE OF PRIOR YEAR FUNDS.—Notwith- the Secretary of Agriculture under section ter 2 of subtitle D of title XII of the Food Se- standing the repeal of section 1240N of the 1243 of the Food Security Act of 1985 (16 curity Act of 1985 (16 U.S.C. 3838n et seq.), Food Security Act of 1985 (16 U.S.C. 3839bb– U.S.C. 3843) before October 1, 2012, or any any funds made available from the Com- 1), any funds made available from the Com- payments required to be made in connection modity Credit Corporation to carry out the modity Credit Corporation to carry out the with the contract or agreement. grassland reserve program under that sub- wildlife habitat incentive program under (2) FUNDING.— chapter for fiscal years 2009 through 2012 that section for fiscal years 2009 through 2012 (A) USE OF PRIOR YEAR FUNDS.—Notwith- shall be made available to carry out con- shall be made available to carry out con- standing the repeal of section 1243 of the tracts, agreements, or easements referred to tracts referred to in paragraph (1) which Food Security Act of 1985 (16 U.S.C. 3843), in paragraph (1) that were entered into prior were entered into prior to October 1, 2012 (in- any funds made available from the Com- to October 1, 2012 (including the provision of cluding the provision of technical assist- modity Credit Corporation to carry out the technical assistance), provided that no such ance). cooperative conservation partnership initia- contract, agreement, or easement is modi- (B) OTHER.—On exhaustion of funds made tive under that section for fiscal years 2009 fied so as to increase the amount of the pay- available under subparagraph (A), the Sec- through 2012 shall be made available to carry ment received. retary may use funds made available to out contracts and agreements referred to in (B) OTHER.—The Secretary may use funds carry out the environmental quality incen- paragraph (1) that were entered into prior to made available to carry out the agricultural tives program under chapter 4 of subtitle D October 1, 2012 (including the provision of conservation easement program under sub- of title XII of the Food Security Act of 1985 technical assistance). title H of title XII of the Food Security Act (16 U.S.C. 3839aa et seq.) to continue to carry (B) OTHER.—On exhaustion of funds made of 1985, as added by section 2301 of this Act, out contracts referred to in paragraph (1) available under subparagraph (A), the Sec- to continue to carry out contracts, agree- using the provisions of law and regulation retary may use funds made available to ments, and easements referred to in para- applicable to such contracts as in existence carry out the regional conservation partner- graph (1) using the provisions of law and reg- on September 30, 2012. ships program under subtitle I of title XII of ulation applicable to such contracts, agree- (c) EFFECTIVE DATE.—The amendment the Food Security Act of 1985, as added by ments, and easements as in existence on Sep- made by this section shall take effect on Oc- section 2401 of this Act, to continue to carry tember 30, 2012. tober 1, 2012. out contracts and agreements referred to in (c) EFFECTIVE DATE.—The amendment paragraph (1) using the provisions of law and made by this section shall take effect on Oc- SEC. 2708. GREAT LAKES BASIN PROGRAM. tober 1, 2012. (a) REPEAL.—Section 1240P of the Food Se- regulation applicable to such contracts and agreements as in existence on September 30, SEC. 2706. AGRICULTURAL WATER ENHANCE- curity Act of 1985 (16 U.S.C. 3839bb–3) is re- MENT PROGRAM. pealed. 2012. (a) REPEAL.—Section 1240I of the Food Se- (b) EFFECTIVE DATE.—The amendment (c) EFFECTIVE DATE.—The amendment curity Act of 1985 (16 U.S.C. 3839aa–9) is re- made by this section shall take effect on Oc- made by this section shall take effect on Oc- pealed. tober 1, 2012. tober 1, 2012.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4515 SEC. 2711. ENVIRONMENTAL EASEMENT PRO- SEC. 3004. REAUTHORIZATION OF FOOD AID CON- intergovernmental agencies or organiza- GRAM. SULTATIVE GROUP. tions.’’. Chapter 3 of subtitle D of title XII of the Section 205(f) of the Food for Peace Act (7 SEC. 3009. PROCUREMENT, TRANSPORTATION, Food Security Act of 1985 (16 U.S.C. 3839 et U.S.C. 1725(f)) is amended by striking ‘‘2012’’ TESTING, AND STORAGE OF AGRI- seq.) is repealed. and inserting ‘‘2017’’. CULTURAL COMMODITIES FOR PREPOSITIONING IN THE UNITED SEC. 2712. TECHNICAL AMENDMENTS. SEC. 3005. OVERSIGHT, MONITORING, AND EVAL- UATION OF FOOD FOR PEACE ACT STATES AND FOREIGN COUNTRIES. (a) Section 1201(a) of the Food Security Act PROGRAMS. Section 407 of the Food for Peace Act (7 of 1985 (16 U.S.C. 3801(a)) is amended in the Section 207(f) of the Food for Peace Act (7 U.S.C. 1736a) is amended— matter preceding paragraph (1) by striking U.S.C. 1726a(f)) is amended— (1) in subparagraph (c)(4)(A)— ‘‘E’’ and inserting ‘‘I’’. (1) by striking paragraph (4) and redesig- (A) by striking ‘‘2012’’ and inserting ‘‘2017’’; (b) Section 1211(a) of the Food Security Act nating paragraphs (5) and (6) as paragraphs and of 1985 (16 U.S.C. 3811(a)) is amended by strik- (4) and (5), respectively; and (B) by striking ‘‘for each such fiscal year ing ‘‘predominate’’ each place it appears and (2) in subparagraph (A) of paragraph (5) (as not more than $10,000,000 of such funds’’ and inserting ‘‘predominant’’. so redesignated)— inserting ‘‘for each of fiscal years 2001 (c) Section 1242(i) of the Food Security Act (A) by striking ‘‘2012’’ and inserting ‘‘2017’’; through 2012 not more than $10,000,000 of of 1985(16 U.S.C. 3842(i)) is amended in the and such funds and for each of fiscal years 2013 subsection heading by striking ‘‘SPECIALITY’’ (B) by striking ‘‘during fiscal year 2009’’ through 2017 not more than $15,000,000 of and inserting ‘‘SPECIALTY’’. and inserting ‘‘during the period of fiscal such funds’’; and TITLE III—TRADE years 2013 through 2017’’. (2) by adding at the end the following: SEC. 3006. ASSISTANCE FOR STOCKPILING AND ‘‘(g) FUNDING FOR TESTING OF FOOD AID Subtitle A—Food for Peace Act RAPID TRANSPORTATION, DELIV- SHIPMENTS.—Funds made available for agri- SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANI- ERY, AND DISTRIBUTION OF SHELF- cultural products acquired under this Act ZATIONS THROUGH WHICH NON- STABLE PREPACKAGED FOODS. and section 3107 of the Farm Security and EMERGENCY ASSISTANCE IS PRO- Section 208(f) of the Food for Peace Act (7 Rural Investment Act of 2002 (7 U.S.C. 1736o– VIDED. U.S.C. 1726b(f)) is amended by striking ‘‘2012’’ 1) may be used to pay for the testing of those Effective October 1, 2012, section 202(e)(1) of and inserting ‘‘2017’’. agricultural products.’’. the Food for Peace Act (7 U.S.C. 1722(e)(1)) is SEC. 3007. LIMITATION ON TOTAL VOLUME OF SEC. 3010. DEADLINE FOR AGREEMENTS TO FI- COMMODITIES MONETIZED. amended— NANCE SALES OR TO PROVIDE (1) in the matter preceding subparagraph Section 403 of the Food for Peace Act (7 OTHER ASSISTANCE. (A), by striking ‘‘13 percent’’ and inserting U.S.C. 1733) is amended by adding at the end Section 408 of the Food for Peace Act (7 ‘‘15 percent’’; and the following: U.S.C. 1736b) is amended by striking ‘‘2012’’ ‘‘(m) LIMITATION ON MONETIZATION OF COM- (2) in subparagraph (A), by striking ‘‘new’’ and inserting ‘‘2017’’. and inserting ‘‘and enhancing’’. MODITIES.— SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY ‘‘(1) LIMITATION.— SEC. 3002. FOOD AID QUALITY. FOOD ASSISTANCE. ‘‘(A) IN GENERAL.—Unless the Adminis- Section 412 of the Food for Peace Act (7 Section 202(h) of the Food for Peace Act (7 trator grants a waiver under paragraph (2), U.S.C. 1736f) is amended by striking sub- U.S.C. 1722(h)) is amended— no commodity may be made available under section (e) and inserting the following: (1) by striking paragraph (1) and inserting this Act unless the rate of return for the ‘‘(e) MINIMUM LEVEL OF NONEMERGENCY the following: commodity (as determined under subpara- FOOD ASSISTANCE.— ‘‘(1) IN GENERAL.—The Administrator shall graph (B)) is at least 70 percent. use funds made available for fiscal year 2013 ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘(B) RATE OF RETURN.—For purposes of of the amounts made available to carry out and subsequent fiscal years to carry out this subparagraph (A), the rate of return shall be emergency and nonemergency food assist- title— equal to the proportion that— ance programs under title II, not less than 20 ‘‘(A) to assess the types and quality of ag- ‘‘(i) the proceeds the implementing part- nor more than 30 percent for each of fiscal ricultural commodities and products donated ners generate through monetization; bears to years 2013 through 2017 shall be expended for for food aid; ‘‘(ii) the cost to the Federal Government to nonemergency food assistance programs ‘‘(B) to adjust products and formulations, procure and ship the commodities to a re- under title II. including potential introduction of new cipient country for monetization. fortificants and products, as necessary to ‘‘(2) MINIMUM LEVEL.—The amount made ‘‘(2) WAIVER AUTHORITY.—The Adminis- available to carry out nonemergency food as- cost-effectively meet nutrient needs of tar- trator may waive the application of the limi- sistance programs under title II shall not be get populations; tation in paragraph (1) with regard to a com- less than $275,000,000 for any fiscal year.’’. ‘‘(C) to test prototypes; modity for a recipient country if the Admin- ‘‘(D) to adopt new specifications or im- istrator determines that it is necessary to SEC. 3012. COORDINATION OF FOREIGN ASSIST- prove existing specifications for micro- achieve the purposes of this Act in the re- ANCE PROGRAMS REPORT. nutrient fortified food aid products, based on cipient country. Section 413 of the Food for Peace Act (7 the latest developments in food and nutri- ‘‘(3) REPORT.—Not later than 90 days after U.S.C. 1736(g)) is amended— tion science, and in coordination with other a waiver is granted under paragraph (2), the (1) by striking ‘‘(a) IN GENERAL.—To the international partners; Administrator shall prepare, publish in the maximum’’ and inserting ‘‘To the max- ‘‘(E) to develop new program guidance to Federal Register, and submit to the Commit- imum’’; and facilitate improved matching of products to tees on Foreign Affairs, Agriculture, and Ap- (2) by striking subsection (b). purposes having nutritional intent, in co- propriations of the House of Representatives, SEC. 3013. MICRONUTRIENT FORTIFICATION PRO- ordination with other international part- and the Committees on Appropriations, For- GRAMS. ners; eign Relations, and Agriculture, Nutrition, (a) ELIMINATION OF OBSOLETE REFERENCE ‘‘(F) to develop improved guidance for im- and Forestry of the Senate a report that— TO STUDY.—Section 415(a)(2)(B) of the Food plementing partners on how to address nutri- ‘‘(A) contains the reasons for granting the for Peace Act (7 U.S.C. 1736g–2(a)(2)(B)) is tional deficiencies that emerge among re- waiver and the actual rate of return for the amended by striking ‘‘, using recommenda- cipients for whom food assistance is the sole commodity; and tions’’ and all that follows through ‘‘quality source of diet in emergency programs that ‘‘(B) includes for the commodity the costs enhancements’’. extend beyond 1 year, in coordination with of bagging or further processing, ocean (b) EXTENSION.—Section 415(c) of the Food other international partners; and transportation, inland transportation in the for Peace Act (7 U.S.C. 1736g–2(c)) is amended ‘‘(G) to evaluate, in appropriate settings recipient country, storage costs, and any by striking ‘‘2012’’ and inserting ‘‘2017’’. and as necessary, the performance and cost- other information that the Administrator SEC. 3014. JOHN OGONOWSKI AND DOUG BEREU- effectiveness of new or modified specialized determines to be necessary.’’. TER FARMER-TO-FARMER PROGRAM. food products and program approaches de- SEC. 3008. FLEXIBILITY. Section 501 of the Food for Peace Act (7 signed to meet the nutritional needs of the Section 406 of the Food for Peace Act (7 U.S.C. 1737) is amended— most vulnerable groups, such as pregnant U.S.C. 1736) is amended— (1) in subsection (d)— and lactating mothers, and children under (1) by redesignating subsections (c) and (d) (A) by striking ‘‘0.5 percent’’ and inserting the age of 5.’’; and as subsections (d) and (e), respectively; and ‘‘0.6 percent’’; and (2) in paragraph (3), by striking ‘‘2011’’ and (2) by inserting after subsection (b) the fol- (B) by striking ‘‘2012’’ and inserting ‘‘2017’’; inserting ‘‘2017’’. lowing: and SEC. 3003. MINIMUM LEVELS OF ASSISTANCE. ‘‘(c) FLEXIBILITY.—Notwithstanding any (2) in subsection (e)(1), by striking ‘‘2012’’ Section 204(a) of the Food for Peace Act (7 other provision of law and as necessary to and inserting ‘‘2017’’. U.S.C. 1724(a)) is amended— achieve the purposes of this Act, funds avail- SEC. 3015. PROHIBITION ON ASSISTANCE FOR (1) in paragraph (1), by striking ‘‘2012’’ and able under this Act may be used to pay the NORTH KOREA. inserting ‘‘2017’’; and costs of up to 20 percent of activities con- (a) IN GENERAL.—No amounts may be obli- (2) in paragraph (2), by striking ‘‘2012’’ and ducted in recipient countries by nonprofit gated or expended to provide assistance inserting ‘‘2017’’. voluntary organizations, cooperatives, or under title II of the Food for Peace Act (7

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4516 CONGRESSIONAL RECORD — SENATE June 25, 2012 U.S.C. 1721 et seq.) to the Democratic Peo- in paragraph (1) with regard to an eligible (1) in subsection (b)— ple’s Republic of Korea. commodity for a recipient country if the (A) by striking ‘‘(b) STUDY; FIELD-BASED (b) NATIONAL INTEREST WAIVER.—The Secretary determines that it is necessary to PROJECTS.—’’ and all that follows through President may waive subsection (a) if the achieve the purposes of this Act in the re- ‘‘(2) FIELD-BASED PROJECTS.—’’ and inserting President determines and certifies to the cipient country. the following: Committees on Agriculture, Nutrition, and ‘‘(3) REPORT.—Not later than 90 days after ‘‘(b) FIELD-BASED PROJECTS.—’’; Forestry and Foreign Relations of the Sen- a waiver is granted under paragraph (2), the (B) by redesignating subparagraphs (A) and ate and the Committees on Agriculture and Secretary shall prepare, publish in the Fed- (B) as paragraphs (1) and (2), respectively, Foreign Affairs of the House of Representa- eral Register, and submit to the Committees and indenting appropriately; tives that the waiver is in the national inter- on Foreign Affairs, Agriculture, and Appro- (C) in paragraph (1) (as so redesignated), by est of the United States. priations of the House of Representatives, striking ‘‘subparagraph (B)’’ and inserting Subtitle B—Agricultural Trade Act of 1978 and the Committees on Appropriations, For- ‘‘paragraph (2)’’; and SEC. 3101. EXPORT CREDIT GUARANTEE PRO- eign Relations, and Agriculture, Nutrition, (D) in paragraph (2) (as so redesignated), by GRAMS. and Forestry of the Senate a report that— striking ‘‘subparagraph (A)’’ and inserting Section 211 of the Agricultural Trade Act ‘‘(A) contains the reasons for granting the ‘‘paragraph (1)’’; of 1978 (7 U.S.C. 5641) is amended by striking waiver and the actual rate of return for the (2) in subsection (c)(1), by striking ‘‘sub- subsection (b) and inserting the following: eligible commodity; and section (b)(2)’’ and inserting ‘‘subsection ‘‘(b) EXPORT CREDIT GUARANTEE PRO- ‘‘(B) includes for the commodity the costs (b)’’; GRAMS.—The Commodity Credit Corporation of bagging or further processing, ocean (3) by striking subsections (d), (f), and (g); shall make available for each of fiscal years transportation, inland transportation in the (4) by redesignating subsection (e) as sub- 2013 through 2017 credit guarantees under recipient country, storage costs, and any section (d); section 202(a) in an amount equal to not other information that the Secretary deter- (5) in subsection (d) (as so redesignated)— more than $4,500,000,000 in credit guaran- mines to be necessary.’’. (A) in paragraph (2)— tees.’’. SEC. 3202. BILL EMERSON HUMANITARIAN (i) by striking subparagraph (B); and SEC. 3102. FUNDING FOR MARKET ACCESS PRO- TRUST. (ii) in subparagraph (A)— GRAM. Section 302 of the Bill Emerson Humani- (I) by striking ‘‘(A) APPLICATION.—’’ and all Section 211(c)(1)(A) of the Agricultural tarian Trust Act (7 U.S.C. 1736f–1) is amend- that follows through ‘‘To be eligible’’ in Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is ed— clause (i) and inserting the following: amended by striking ‘‘2012’’ and inserting (1) in subsection (b)(2)(B)(i), by striking ‘‘(A) IN GENERAL.—To be eligible’’; ‘‘2017’’. ‘‘2012’’ both places it appears and inserting (II) by redesignating clause (ii) as subpara- SEC. 3103. FOREIGN MARKET DEVELOPMENT CO- ‘‘2017’’; and graph (B) and indenting appropriately; and OPERATOR PROGRAM. (2) in subsection (h), by striking ‘‘2012’’ (III) in subparagraph (B) (as so redesig- Section 703(a) of the Agricultural Trade both places it appears and inserting ‘‘2017’’. nated), by striking ‘‘clause (i)’’ and inserting Act of 1978 (7 U.S.C. 5723(a)) is amended by SEC. 3203. PROMOTION OF AGRICULTURAL EX- ‘‘subparagraph (A)’’; and striking ‘‘2012’’ and inserting ‘‘2017’’. PORTS TO EMERGING MARKETS. (B) by striking paragraph (4); and Subtitle C—Other Agricultural Trade Laws (a) DIRECT CREDITS OR EXPORT CREDIT (6) by adding at the end the following: ‘‘(e) FUNDING.— SEC. 3201. FOOD FOR PROGRESS ACT OF 1985. GUARANTEES.—Section 1542(a) of the Food, Agriculture, Conservation, and Trade Act of ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— (a) EXTENSION.—The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended— 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is There is authorized to be appropriated to (1) in subsection (f)(3), by striking ‘‘2012’’ amended by striking ‘‘2012’’ and inserting carry out this section $40,000,000 for each of and inserting ‘‘2017’’; ‘‘2017’’. fiscal years 2013 through 2017. EVELOPMENT OF AGRICULTURAL SYS- REFERENCE (2) in subsection (g), by striking ‘‘2012’’ and (b) D ‘‘(2) P .—In carrying out this sec- TEMS.—Section 1542(d)(1)(A)(i) of the Food, inserting ‘‘2017’’; tion, the Secretary may give a preference to Agriculture, Conservation, and Trade Act of (3) in subsection (k), by striking ‘‘2012’’ and eligible organizations that have, or are 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is inserting ‘‘2017’’; and working toward, projects under the McGov- amended by striking ‘‘2012’’ and inserting (4) in subsection (l)(1), by striking ‘‘2012’’ ern-Dole International Food for Education ‘‘2017’’. and inserting ‘‘2017’’. and Child Nutrition Program established (b) REPEAL OF COMPLETED PROJECT.—Sub- SEC. 3204. MCGOVERN-DOLE INTERNATIONAL under section 3107 of the Farm Security and section (f) of the Food for Progress Act of FOOD FOR EDUCATION AND CHILD Rural Investment Act of 2002 (7 U.S.C. 1736o– NUTRITION PROGRAM. 1985 (7 U.S.C. 1736o) is amended by striking 1). (a) REAUTHORIZATION.—Section 3107(l)(2) of paragraph (6). ‘‘(3) REPORTING.—Each year, the Secretary the Farm Security and Rural Investment (c) FLEXIBILITY.—The Food for Progress shall submit to the appropriate committees Act of 1985 (7 U.S.C. 1736o) is amended in sub- Act of 2002 (7 U.S.C. 1736o–1(l)(2)) is amended of Congress a report that describes the use of section (l) by adding at the end the fol- by striking ‘‘2012’’ and inserting ‘‘2017’’. funds under this section, including— lowing: (b) TECHNICAL CORRECTION.—Section 3107(d) ‘‘(A) the impact of procurements and of the Farm Security and Rural Investment ‘‘(5) FLEXIBILITY.—Notwithstanding any projects on— other provision of law and as necessary to Act of 2002 (7 U.S.C. 1736o–1(d)) is amended by ‘‘(i) local and regional agricultural pro- achieve the purposes of this Act, funds avail- striking ‘‘to’’ in the matter preceding para- ducers; and able under this Act may be used to pay the graph (1). ‘‘(ii) markets and consumers, including costs of up to 20 percent of activities con- SEC. 3205. TECHNICAL ASSISTANCE FOR SPE- low-income consumers; and ducted in recipient countries by nonprofit CIALTY CROPS. ‘‘(B) implementation time frames and voluntary organizations, cooperatives, or (a) PURPOSE.—Section 3205(b) of the Farm costs.’’. intergovernmental agencies or organiza- Security and Rural Investment Act of 2002 (7 SEC. 3208. DONALD PAYNE HORN OF AFRICA tions.’’. U.S.C. 5680(b)) is amended by striking ‘‘re- FOOD RESILIENCE PROGRAM. (d) LIMITATION ON TOTAL VOLUME OF COM- lated barriers to trade’’ and inserting ‘‘tech- (a) DEFINITIONS.—In this section: MODITIES MONETIZED.—The Food for Progress nical barriers to trade’’. (1) ADMINISTRATOR.—The term ‘‘Adminis- Act of 1985 (7 U.S.C. 1736o) is amended by (b) FUNDING.—Section 3205(e)(2) of the trator’’ means the Administrator of the adding at the end the following: Farm Security and Rural Investment Act of Agency for International Development. ‘‘(p) LIMITATION ON MONETIZATION OF COM- 2002 (7 U.S.C. 5680(e)(2)) is amended— (2) APPROPRIATE COMMITTEES OF CON- MODITIES.— (1) by inserting ‘‘and’’ at the end of sub- GRESS.—The term ‘‘appropriate committees ‘‘(1) LIMITATION.— paragraph (C); and of Congress’’ means— ‘‘(A) IN GENERAL.—Unless the Secretary (2) by striking subparagraphs (D) and (E) (A) the Committee on Agriculture, Nutri- grants a waiver under paragraph (2), no eligi- and inserting the following new subpara- tion, and Forestry of the Senate; ble commodity may be made available under graph: (B) the Committee on Agriculture of the this section unless the rate of return for the ‘‘(D) $9,000,000 for each of fiscal years 2011 House of Representatives; eligible commodity (as determined under through 2017.’’. (C) the Committee on Foreign Relations of subparagraph (B)) is at least 70 percent. SEC. 3206. GLOBAL CROP DIVERSITY TRUST. the Senate; and ‘‘(B) RATE OF RETURN.—For purposes of Section 3202(c) of the Food, Conservation, (D) the Committee on Foreign Affairs of subparagraph (A), the rate of return shall be and Energy Act of 2008 (Public Law 110–246; the House of Representatives. equal to the proportion that— 22 U.S.C. 2220a note) is amended by striking (3) ELIGIBLE ORGANIZATION.—The term ‘‘eli- ‘‘(i) the proceeds the implementing part- ‘‘2008 through 2012’’ and inserting ‘‘2013 gible organization’’ means an organization ners generate through monetization; bears to through 2017’’. that is— ‘‘(ii) the cost to the Federal Government to SEC. 3207. LOCAL AND REGIONAL FOOD AID PRO- (A) a private voluntary organization or co- procure and ship the eligible commodities to CUREMENT PROJECTS. operative that is, to the extent practicable, a recipient country for monetization. Section 3206 of the Food, Conservation, and registered with the Administrator; or ‘‘(2) WAIVER AUTHORITY.—The Secretary Energy Act of 2008 (7 U.S.C. 1726c) is amend- (B) an intergovernmental organization, may waive the application of the limitation ed— such as the World Food Program.

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(4) HORN OF AFRICA.—The term ‘‘Horn of (2) REQUIREMENTS OF ELIGIBLE ORGANIZA- land, livestock, homes, equipment, and other Africa’’ means the countries of— TIONS.— materials assets needed for income genera- (A) Ethiopia; (A) APPLICATION.—To be eligible to receive tion; (B) Somalia; a grant from, or enter into a cooperative (C) household incomes, including informal (C) Kenya; agreement with, the Administrator under sources of employment; and (D) Djibouti; this subsection, an eligible organization (D) the productive assets of women using (E) Eritrea; shall submit to the Administrator an appli- the Women’s Empowerment in Agriculture (F) South Sudan; cation by such date, in such manner, and Index. (G) Uganda; and containing such information as the Adminis- (3) PUBLIC ACCESS TO RECORDS AND RE- (H) such other countries as the Adminis- trator may require. PORTS.—Not later than 90 days after the date trator determines to be appropriate after (B) COMPLETION REQUIREMENT.—To be eligi- on which the report is submitted under para- providing notification to the appropriate ble to receive a grant from, or enter into a graph (1), the Administrator shall provide committees of Congress. cooperative agreement with, the Adminis- public access to the report. (5) RESILIENCE.—The term ‘‘resilience’’ trator under this subsection, an eligible or- (g) AUTHORIZATION OF APPROPRIATIONS.— means— ganization shall agree— There is authorized to be appropriated to (A) the capacity to mitigate the negative (i) to collect, not later than September 30, carry out this section $10,000,000 for each of impacts of crises (including natural disas- 2016, data containing the information re- fiscal years 2013 through 2017. ters, conflicts, and economic shocks) in quired under subsection (f)(2) relating to the SEC. 3209. AGRICULTURAL TRADE ENHANCE- order to reduce loss of life and depletion of field-based project funded through the grant MENT STUDY. productive assets; or cooperative agreement; and (a) DEFINITION OF AGRICULTURE COMMIT- (B) the capacity to respond effectively to (ii) to provide to the Administrator the TEES AND SUBCOMMITTEES.—In this section, crises, ensuring basic needs are met in a way data collected under clause (i). the term ‘‘agriculture committees and sub- that is integrated with long-term develop- (3) REQUIREMENTS OF ADMINISTRATOR.— committees’’ means— ment efforts; and (A) PROJECT DIVERSITY.— (1) the Committee on Agriculture of the (C) the capacity to recover and rebuild (i) IN GENERAL.—Subject to clause (ii) and House of Representatives; after crises so that future shocks can be ab- subparagraph (B), in selecting proposals for (2) the Committee on Agriculture, Nutri- sorbed with less need for ongoing external field-based projects to fund under this section, and Forestry of the Senate; and assistance. tion, the Administrator shall select a diver- (3) the subcommittees on agriculture, rural sity of projects, including projects located (b) PURPOSE.—The purpose of this section development, food and drug administration, in— is to establish a pilot program to effectively and related agencies of the Committees on (I) areas most prone to repeated crises; integrate all United States-funded emer- Appropriations of the House of Representa- (II) areas with effective existing resilience gency and long-term development activities tives and the Senate. programs that can be scaled; and that aim to improve food security in the (b) DEVELOPMENT.—The Secretary, in con- (III) areas in all countries of the Horn of Horn of Africa, building resilience so as— sultation with the agriculture committees Africa. (1) to reduce the impacts of future crises; and subcommittees, shall develop a study (ii) PRIORITY.—In selecting proposals for (2) to enhance local capacity for emer- that takes into consideration a reorganiza- field-based projects under clause (i), the Ad- gency response; tion of international trade functions for im- ministrator shall ensure that the selected (3) to enhance sustainability of long-term ports and exports at the Department of Agri- proposals are for field-based projects that— culture. development programs targeting poor and (I) effectively integrate emergency and vulnerable households; and (c) IMPLEMENTATION.—In implementing the long-term development programs to improve study under this section, the Secretary— (4) to reduce the need for repeated costly sustainability; emergency operations. (1) in recognition of the importance of ag- (II) demonstrate the potential to reduce ricultural exports to the farm economy and (c) STUDY.— the need for future emergency assistance; (1) IN GENERAL.—Not later than 30 days the economy as a whole, may include a rec- and ommendation for the establishment of an after the date of enactment of this Act, the (III) build targeted productive safety nets, Administrator shall initiate a study of prior Under Secretary for Trade and Foreign Agri- in coordination with host country govern- cultural Affairs; programs to support resilience in the Horn of ments, through food for work, cash for work, Africa conducted by— (2) may take into consideration how the and other proven program methodologies. Under Secretary described in paragraph (1) (A) other donor countries; (B) AVAILABILITY.—The Administrator (B) private voluntary organizations; would serve as a multiagency coordinator of shall not award a grant or cooperative agree- sanitary and phytosanitary issues and non- (C) the World Food Program of the United ment or approve a field-based project under Nations; and tariff trade barriers in agriculture with re- this subsection until the date on which the spect to imports and exports of agricultural (D) multilateral institutions, including the Administrator promulgates regulations or World Bank. products; and issues guidelines under subsection (e). (3) shall take into consideration all impli- (2) REQUIREMENTS.—The study shall— (e) REGULATIONS; GUIDELINES.— cations of a reorganization described in sub- (A) include all programs implemented (1) IN GENERAL.—Not later than 180 days section (b) on domestic programs and oper- through the Agency for International Devel- after the date of completion of the study ations of the Department of Agriculture. opment, the Department of Agriculture, the under subsection (c), the Administrator shall (d) REPORT.—Not later than 180 days after Department of Treasury, the Millennium promulgate regulations or issue guidelines to the date of enactment of this Act, the Sec- Challenge Corporation, the Peace Corps, and carry out field-based projects under this secretary shall submit to the agriculture com- other relevant Federal agencies; tion. mittees and subcommittees a report describ- (B) evaluate how well the programs de- (2) REQUIREMENTS.—In promulgating regu- ing the results of the study under this sec- scribed in subparagraph (A) work together to lations or issuing guidelines under paragraph tion. complement each other and leverage impacts (1), the Administrator shall— across programs; (A) take into consideration the results of TITLE IV—NUTRITION (C) include recommendations for how full the study described in subsection (c); and Subtitle A—Supplemental Nutrition integration of efforts can be achieved; and (B) provide an opportunity for public re- Assistance Program (D) evaluate the degree to which country- view and comment. SEC. 4001. FOOD DISTRIBUTION PROGRAM ON IN- led development plans support programs that (f) REPORT.— DIAN RESERVATIONS. increase resilience, including review of the (1) IN GENERAL.—Not later than November Section 4(b)(6)(F) of the Food and Nutri- investments by each country in nutrition 1, 2016, the Administrator shall submit to the tion Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is and safety nets. appropriate committees of Congress a report amended by striking ‘‘2012’’ and inserting (3) REPORT.—Not later than 180 days after that— ‘‘2017’’. the date of enactment of this Act, the Ad- (A) addresses each factor described in para- SEC. 4002. STANDARD UTILITY ALLOWANCES ministrator shall submit to the appropriate graph (2); and BASED ON THE RECEIPT OF ENERGY committees of Congress a report containing (B) is conducted in accordance with this ASSISTANCE PAYMENTS. the results of the study. section. (a) STANDARD UTILITY ALLOWANCES IN THE (d) FIELD-BASED PROJECT GRANTS OR COOP- (2) REQUIRED FACTORS.—The report shall SUPPLEMENTAL NUTRITION ASSISTANCE PRO- ERATIVE AGREEMENTS.— include baseline and end-of-project data that GRAM.—Section 5(e)(6)(C) of the Food and Nu- (1) IN GENERAL.—The Administrator shall— measures— trition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is (A) provide grants to, or enter into cooper- (A) the prevalence of moderate and severe amended— ative agreements with, eligible organizations hunger so as to provide an accurate account- (1) in clause (i), by inserting ‘‘, subject to to carry out field-based projects that build ing of project impact on household access to clause (iv)’’ after ‘‘Secretary’’; and resilience in the Horn of Africa in accord- and consumption of food during every month (2) in clause (iv)(I), by striking ‘‘the house- ance with this section; and of the year prior to data collection; hold still incurs’’ and all that follows (B) develop a project approval process to (B) household ownership of and access to through the end of the subclause and insert- ensure full integration of efforts. productive assets, including at a minimum ing ‘‘the payment received by, or made on

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4518 CONGRESSIONAL RECORD — SENATE June 25, 2012 behalf of, the household exceeds $10 or a SEC. 4005. RETAIL FOOD STORES. participation of the retail food store is re- higher amount annually, as determined by (a) DEFINITION OF RETAIL FOOD STORE.— quired for the effective and efficient oper- the Secretary.’’. Subsection (o)(1)(A) of section 3 of the Food ation of the supplemental nutrition assist- (b) CONFORMING AMENDMENT.—Section and Nutrition Act of 2008 (7 U.S.C. 2012) (as ance program. 2605(f)(2)(A) of the Low-Income Home Energy redesignated by section 4016(a)(4)) is amend- ‘‘(B) APPLICATION.—Subparagraph (A) shall Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) ed by striking ‘‘at least 2’’ and inserting ‘‘at be effective— is amended by inserting before the semicolon least 3’’. ‘‘(i) in the case of retail food stores apply- at the end ‘‘, except that, for purposes of the (b) ALTERNATIVE BENEFIT DELIVERY.—Sec- ing to be authorized for the first time, begin- supplemental nutrition assistance program tion 7(f) of the Food and Nutrition Act of ning on the date that is 1 year after the date established under the Food and Nutrition 2008 (7 U.S.C. 2016(f)) is amended— of enactment of this paragraph; and Act of 2008 (7 U.S.C. 2011 et seq.), such pay- (1) by striking paragraph (2) and inserting ‘‘(ii) in the case of retail food stores par- ments or allowances exceed $10 or a higher the following: ticipating in the program on the date of en- amount annually, as determined by the Sec- ‘‘(2) IMPOSITION OF COSTS.— actment of this paragraph, during periodic retary of Agriculture in accordance with sec- ‘‘(A) IN GENERAL.—Except as provided in reauthorization in accordance with para- tion 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. subparagraph (B), the Secretary shall require graph (2)(A).’’; and 2014(e)(6)(C)(iv)(I))’’. participating retail food stores (including (3) by adding at the end the following: restaurants participating in a State option (c) EFFECTIVE AND IMPLEMENTATION ‘‘(g) EBT SERVICE REQUIREMENT.—An ap- DATE.— restaurant program intended to serve the el- proved retail food store shall provide ade- (1) IN GENERAL.—Except as provided in derly, disabled, and homeless) to pay 100 per- quate EBT service as described in section paragraph (2), this section and the amend- cent of the costs of acquiring, and arrange 7(h)(3)(B).’’. ments made by this section shall take effect for the implementation of, electronic benefit transfer point-of-sale equipment and sup- SEC. 4006. IMPROVING SECURITY OF FOOD AS- beginning on October 1, 2013, for all certifi- SISTANCE. plies, including related services. cation periods beginning after that date. Section 7(h)(8) of the Food and Nutrition ‘‘(B) EXEMPTIONS.—The Secretary may ex- (2) STATE OPTION TO DELAY IMPLEMENTATION Act of 2008 (7 U.S.C. 2016(h)(8)) is amended— empt from subparagraph (A)— FOR CURRENT RECIPIENTS.—A State may, at (1) by striking the paragraph heading and the option of the State, implement a policy ‘‘(i) farmers’ markets, military com- inserting ‘‘REPLACEMENT OF CARDS.—’’; missaries, nonprofit food buying coopera- that eliminates or minimizes the effect of (2) by striking ‘‘A State’’ and inserting the tives, and establishments, organizations, the amendments made by this section for following: households that receive a standard utility al- programs, or group living arrangements de- ‘‘(A) FEES.—A State’’; and scribed in paragraphs (5), (7), and (8) of sec- lowance as of the date of enactment of this (3) by adding after subparagraph (A) (as so tion 3(k); and Act for not more than a 180-day period begin- designated by paragraph (2)) the following: ning on the date on which the amendments ‘‘(ii) establishments described in para- ‘‘(B) PURPOSEFUL LOSS OF CARDS.— made by this section would otherwise affect graphs (3), (4), and (9) of section 3(k), other ‘‘(i) IN GENERAL.—Subject to terms and than restaurants participating in a State op- the benefits received by a household. conditions established by the Secretary in tion restaurant program.’’; and SEC. 4003. ELIGIBILITY DISQUALIFICATIONS. accordance with clause (ii), if a household (2) by adding at the end the following: Section 6(e)(3)(B) of Food and Nutrition makes excessive requests for replacement of ‘‘(4) TERMINATION OF MANUAL VOUCHERS.— Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended the electronic benefit transfer card of the ‘‘(A) IN GENERAL.—Effective beginning on by striking ‘‘section’’ and inserting the fol- household, the Secretary may require a the date of enactment of this paragraph, ex- lowing: ‘‘section, subject to the condition State agency to decline to issue a replace- cept as provided in subparagraph (B), no that the course or program of study— ment card to the household unless the house- State shall issue manual vouchers to a ‘‘(i) is part of a program of career and tech- hold, upon request of the State agency, pro- household that receives supplemental nutri- nical education (as defined in section 3 of the vides an explanation for the loss of the card. tion assistance under this Act or allow retail Carl D. Perkins Career and Technical Edu- ‘‘(ii) REQUIREMENTS.—The terms and condi- food stores to accept manual vouchers as cation Act of 2006 (20 U.S.C. 2302)) that may tions established by the Secretary shall pro- payment, unless the Secretary determines be completed in not more than 4 years at an vide that— that the manual vouchers are necessary, institution of higher education (as defined in ‘‘(I) the household be given the oppor- such as in the event of an electronic benefit section 102 of the Higher Education Act of tunity to provide the requested explanation transfer system failure or a disaster situa- 1965 (20 U.S.C. 1002)); or and meet the requirements under this para- tion. ‘‘(ii) is limited to remedial courses, basic graph promptly; ‘‘(B) EXEMPTIONS.—The Secretary may ex- adult education, literacy, or English as a ‘‘(II) after an excessive number of lost empt categories of retail food stores or indi- second language;’’. cards, the head of the household shall be re- vidual retail food stores from subparagraph SEC. 4004. ENDING SUPPLEMENTAL NUTRITION quired to review program rights and respon- (A) based on criteria established by the Sec- ASSISTANCE PROGRAM BENEFITS sibilities with State agency personnel au- FOR LOTTERY OR GAMBLING WIN- retary. thorized to make determinations under sec- NERS. ‘‘(5) UNIQUE IDENTIFICATION NUMBER RE- tion 5(a); and (a) IN GENERAL.—Section 6 of the Food and QUIRED.—The Secretary shall require all par- ‘‘(III) any action taken, including actions Nutrition Act of 2008 (7 U.S.C. 2015) is amend- ties providing electronic benefit transfer required under section 6(b)(2), other than the ed by adding at the end the following: services to provide for and maintain unique withholding of the electronic benefit trans- ‘‘(r) INELIGIBILITY FOR BENEFITS DUE TO RE- terminal identification number information fer card until an explanation described in CEIPT OF SUBSTANTIAL LOTTERY OR GAMBLING through the supplemental nutrition assist- subclause (I) is provided, shall be consistent WINNINGS.— ance program electronic benefit transfer with the due process protections under sec- ‘‘(1) IN GENERAL.—Any household in which transaction routing system.’’. tion 6(b) or 11(e)(10), as appropriate. a member receives substantial lottery or (c) ELECTRONIC BENEFIT TRANSFERS.—Sec- gambling winnings, as determined by the tion 7(h)(3)(B) of the Food and Nutrition Act ‘‘(C) PROTECTING VULNERABLE PERSONS.—In Secretary, shall lose eligibility for benefits of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by implementing this paragraph, a State agency immediately upon receipt of the winnings. striking ‘‘is operational—’’ and all that fol- shall act to protect homeless persons, per- ‘‘(2) DURATION OF INELIGIBILITY.—A house- lows through ‘‘(ii) in the case of other par- sons with disabilities, victims of crimes, and hold described in paragraph (1) shall remain ticipating stores,’’ and inserting ‘‘is oper- other vulnerable persons who lose electronic ineligible for participation until the house- ational’’. benefit transfer cards but are not inten- hold meets the allowable financial resources (d) APPROVAL OF RETAIL FOOD STORES AND tionally committing fraud. and income eligibility requirements under WHOLESALE FOOD CONCERNS.—Section 9 of ‘‘(D) EFFECT ON ELIGIBILITY.—While a State subsections (c), (d), (e), (f), (g), (i), (k), (l), the Food and Nutrition Act of 2008 (7 U.S.C. may decline to issue an electronic benefits (m), and (n) of section 5. 2018) is amended— transfer card until a household satisfies the ‘‘(3) AGREEMENTS.—As determined by the (1) in subsection (a)— requirements under this paragraph, nothing Secretary, each State agency, to the max- (A) in the second sentence of paragraph in this paragraph shall be considered a denial imum extent practicable, shall establish (a)(1), by striking ‘‘; and (C)’’ and inserting of, or limitation on, the eligibility for bene- agreements with entities responsible for the ‘‘; (C) whether the applicant is located in an fits under section 5.’’. regulation or sponsorship of gaming in the area with significantly limited access to SEC. 4007. TECHNOLOGY MODERNIZATION FOR State to determine whether individuals par- food; and (D)’’; and RETAIL FOOD STORES. ticipating in the supplemental nutrition as- (2) by adding at the end the following: (a) MOBILE TECHNOLOGIES.—Section 7(h) of sistance program have received substantial ‘‘(4) RETAIL FOOD STORES WITH SIGNIFICANT the Food and Nutrition Act of 2008 (7 U.S.C. lottery or gambling winnings.’’. SALES OF EXCEPTED ITEMS.— 2016(h)) (as amended by section 4016(e)) is (b) CONFORMING AMENDMENTS.—Section 5(a) ‘‘(A) IN GENERAL.—No retail food store for amended by adding at the end the following: of the Food and Nutrition Act of 2008 (7 which at least 45 percent of the total sales of ‘‘(14) MOBILE TECHNOLOGIES.— U.S.C. 2014(a)) is amended in the second sen- the retail food store is from the sale of ex- ‘‘(A) IN GENERAL.—Subject to subparagraph tence by striking ‘‘sections 6(b), 6(d)(2), and cepted items described in section 3(k)(1) may (B), the Secretary shall approve retail food 6(g)’’ and inserting ‘‘subsections (b), (d)(2), be authorized to accept and redeem benefits stores to redeem benefits through electronic (g), and (r) of section 6’’. unless the Secretary determines that the means other than wired point of sale devices

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4519 for electronic benefit transfer transactions, ‘‘(A) establish recipient protections regard- authorized to accept and redeem benefits if the retail food stores— ing privacy, ease of use, access, and support through on-line transactions shall be author- ‘‘(i) establish recipient protections regard- similar to the protections provided for trans- ized to accept benefits prior to the delivery ing privacy, ease of use, access, and support actions made in retail food stores; of food if the delivery occurs within a rea- similar to the protections provided for trans- ‘‘(B) ensure benefits are not used to pay de- sonable time of the purchase, as determined actions made in retail food stores; livery, ordering, convenience, or other fees by the Secretary,’’ after ‘‘food so pur- ‘‘(ii) bear the costs of obtaining, installing, or charges; chased,’’. and maintaining mobile technologies, in- ‘‘(C) clearly notify participating house- (c) SAVINGS CLAUSE.—Nothing in this sec- cluding mechanisms needed to process EBT holds at the time a food order is placed— tion or an amendment made by this section cards and transaction fees; ‘‘(i) of any delivery, ordering, convenience, alter any requirements of the Food and Nu- ‘‘(iii) demonstrate the foods purchased or other fee or charge associated with the trition Act of 2008 (7 U.S.C. 2011 et seq.) un- with benefits issued under this section food purchase; and less specifically authorized in this section or through mobile technologies are purchased ‘‘(ii) that any such fee cannot be paid with an amendment made by this section. at a price not higher than the price of the benefits provided under this Act; SEC. 4008. USE OF BENEFITS FOR PURCHASE OF same food purchased by other methods used ‘‘(D) ensure the security of on-line trans- COMMUNITY-SUPPORTED AGRI- by the retail food store, as determined by the actions by using the most effective tech- CULTURE SHARE. Secretary; nology available that the Secretary con- Section 10 of the Food and Nutrition Act of ‘‘(iv) provide adequate documentation for siders appropriate and cost-effective and 2008 (7 U.S.C. 2019) (as amended by section each authorized transaction, as determined that is comparable to the security of trans- 4007(b)(2)(B)) is amended in the first sentence by the Secretary; and actions at retail food stores; and by inserting ‘‘agricultural producers who ‘‘(v) meet other criteria as established by ‘‘(E) meet other criteria as established by market agricultural products directly to the Secretary. the Secretary. consumers shall be authorized to redeem ‘‘(B) DEMONSTRATION PROJECT ON ACCEPT- ‘‘(3) STATE AGENCY ACTION.—Each State benefits for the initial cost of the purchase ANCE OF BENEFITS OF MOBILE TRANSACTIONS.— agency shall ensure that recipients of supple- of a community-supported agriculture share ‘‘(i) IN GENERAL.—Before authorizing im- mental nutrition assistance can use benefits for an appropriate time in advance of food plementation of subparagraph (A) in all on-line as described in this subsection as ap- delivery as determined by the Secretary,’’ States, the Secretary shall pilot the use of propriate. after ‘‘as determined by the Secretary,’’. mobile technologies determined by the Sec- ‘‘(4) DEMONSTRATION PROJECT ON ACCEPT- SEC. 4009. RESTAURANT MEALS PROGRAM. retary to be appropriate to test the feasi- ANCE OF BENEFITS THROUGH ON-LINE TRANS- (a) IN GENERAL.—Section 11(e) of the Food bility and implications for program integ- ACTIONS.— and Nutrition Act of 2008 (7 U.S.C. 2020(e)) is rity, by allowing retail food stores to accept ‘‘(A) IN GENERAL.—Before the Secretary au- benefits from recipients of supplemental nu- thorizes implementation of paragraph (1) in amended— trition assistance through mobile trans- all States, the Secretary shall carry out a (1) in paragraph (22), by striking ‘‘and’’ at actions. number of demonstration projects as deter- the end; ‘‘(ii) DEMONSTRATION PROJECTS.—To be eli- mined by the Secretary to test the feasi- (2) in paragraph (23), by striking the period gible to participate in a demonstration bility of allowing retail food stores to accept at the end of subparagraph (C) and inserting project under clause (i), a retail food store benefits through on-line transactions. ‘‘; and’’; and shall submit to the Secretary for approval a ‘‘(B) DEMONSTRATION PROJECTS.—To be eli- (3) by adding at the end the following: plan that includes— gible to participate in a demonstration ‘‘(24) if the State elects to carry out a pro- ‘‘(I) a description of the technology; project under subparagraph (A), a retail food gram to contract with private establish- ‘‘(II) the manner by which the retail food store shall submit to the Secretary for ap- ments to offer meals at concessional prices, store will provide proof of the transaction to proval a plan that includes— as described in paragraphs 3, 4, and 9 of sec- households; ‘‘(i) a method of ensuring that benefits tion 3(k)— ‘‘(III) the provision of data to the Sec- may be used to purchase only eligible items ‘‘(A) the plans of the State agency for oper- retary, consistent with requirements estab- under this Act; ating the program, including— lished by the Secretary, in a manner that al- ‘‘(ii) a description of the method of edu- ‘‘(i) documentation of a need that eligible lows the Secretary to evaluate the impact of cating participant households about the homeless, elderly, and disabled clients are the demonstration on participant access, availability and operation of on-line pur- underserved in a particular geographic area; ease of use, and program integrity; and chasing; ‘‘(ii) the manner by which the State agen- ‘‘(IV) such other criteria as the Secretary ‘‘(iii) adequate testing of the on-line pur- cy will limit participation to only those pri- may require. chasing option prior to implementation; vate establishments that the State deter- ‘‘(iii) DATE OF COMPLETION.—The dem- ‘‘(iv) the provision of data as requested by mines necessary to meet the need identified onstration projects under this subparagraph the Secretary for purposes of analyzing the in clause (i); and shall be completed and final reports sub- impact of the project on participant access, ‘‘(iii) any other conditions the Secretary mitted to the Secretary by not later than ease of use, and program integrity; may prescribe, such as the level of security July 1, 2015. ‘‘(v) reports on progress, challenges, and necessary to ensure that only eligible recipi- ‘‘(C) REPORT TO CONGRESS.—The Secretary results, as determined by the Secretary; and ents participate in the program; and shall— ‘‘(vi) such other criteria, including secu- ‘‘(B) a report by the State agency to the ‘‘(i) by not later than January 1, 2016, au- rity criteria, as established by the Secretary. Secretary annually, the schedule of which thorize implementation of subparagraph (A) ‘‘(C) DATE OF COMPLETION.—The demonstra- shall be established by the Secretary, that in all States, unless the Secretary makes a tion projects under this paragraph shall be includes— finding, based on the data provided under completed and final reports submitted to the ‘‘(i) the number of households and indi- subparagraph (B), that implementation in all Secretary by not later than July 1, 2015. vidual recipients authorized to participate in States is not in the best interest of the sup- ‘‘(5) REPORT TO CONGRESS.—The Secretary the program, including any information on plemental nutrition assistance program; and shall— whether the individual recipient is elderly, ‘‘(ii) if the determination made in clause ‘‘(A) by not later than January 1, 2016, au- disabled, or homeless; and (i) is not to implement subparagraph (A) in thorize implementation of paragraph (1) in ‘‘(ii) an assessment of whether the program all States, submit a report to the Committee all States, unless the Secretary makes a is meeting an established need, as docu- on Agriculture of the House of Representa- finding, based on the data provided under mented under subparagraph (A)(i).’’. tives and the Committee on Agriculture, Nu- paragraph (4), that implementation in all (b) APPROVAL OF RETAIL FOOD STORES AND trition, and Forestry of the Senate that in- States is not in the best interest of the sup- WHOLESALE FOOD CONCERNS.—Section 9 of cludes the basis of the finding.’’. plemental nutrition assistance program; and the Food and Nutrition Act of 2008 (7 U.S.C. (b) ACCEPTANCE OF BENEFITS THROUGH ON- ‘‘(B) if the determination made in subpara- 2018) (as amended by section 4005(d)(3)) is LINE TRANSACTIONS.— graph (A) is not to implement in all States, amended by adding at the end the following: (1) IN GENERAL.—Section 7 of the Food and submit a report to the Committee on Agri- ‘‘(h) PRIVATE ESTABLISHMENTS.— Nutrition Act of 2008 (7 U.S.C. 2016) is amend- culture of the House of Representatives and ‘‘(1) IN GENERAL.—Subject to paragraph (2), ed by adding at the end the following: the Committee on Agriculture, Nutrition, no private establishment that contracts with ‘‘(k) OPTION TO ACCEPT PROGRAM BENEFITS and Forestry of the Senate that includes the a State agency to offer meals at concessional THROUGH ON-LINE TRANSACTIONS.— basis of the finding.’’. prices as described in paragraphs 3, 4, and 9 ‘‘(1) IN GENERAL.—Subject to paragraph (4), (2) CONFORMING AMENDMENTS.— of section 3(k) may be authorized to accept the Secretary shall approve retail food stores (A) Section 7(b) of the Food and Nutrition and redeem benefits unless the Secretary de- to accept benefits from recipients of supple- Act of 2008 (7 U.S.C. 2016(b)) is amended by termines that the participation of the pri- mental nutrition assistance through on-line striking ‘‘purchase food in retail food stores’’ vate establishment is required to meet a doc- transactions. and inserting ‘‘purchase food from retail food umented need in accordance with section ‘‘(2) REQUIREMENTS TO ACCEPT BENEFITS.—A stores’’. 11(e)(24). retail food store seeking to accept benefits (B) Section 10 of the Food and Nutrition ‘‘(2) EXISTING CONTRACTS.— from recipients of supplemental nutrition as- Act of 2008 (7 U.S.C. 2019) is amended in the ‘‘(A) IN GENERAL.—If, on the day before the sistance through on-line transactions shall— first sentence by inserting ‘‘retail food stores date of enactment of this subsection, a State

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4520 CONGRESSIONAL RECORD — SENATE June 25, 2012 has entered into a contract with a private es- cept, and shall use to carry out this section SEC. 4017. TECHNICAL AND CONFORMING tablishment described in paragraph (1) and the funds transferred under subparagraph AMENDMENTS. the Secretary has not determined that the (A), without further appropriation. (a) Section 3 of the Food and Nutrition Act participation of the private establishment is ‘‘(C) MAINTENANCE OF FUNDING.—The fund- of 2008 (7 U.S.C. 2012) is amended— necessary to meet a documented need in ac- ing provided under subparagraph (A) shall (1) in subsection (g), by striking ‘‘coupon,’’ cordance with section 11(e)(24), the Secretary supplement (and not supplant) other Federal and inserting ‘‘coupon’’; shall allow the operation of the private es- funding made available to the Secretary to (2) in subsection (k)(7), by striking ‘‘or tablishment to continue without that deter- carry out this section.’’. are’’ and inserting ‘‘and’’; mination of need for a period not to exceed SEC. 4014. EMERGENCY FOOD ASSISTANCE. (3) by striking subsection (l); 180 days from the date on which the Sec- (a) PURCHASE OF COMMODITIES.—Section (4) by redesignating subsections (m) retary establishes determination criteria, by 27(a) of the Food and Nutrition Act of 2008 (7 through (t) as subsections (l) through (s), re- regulation, under section 11(e)(24). U.S.C. 2036(a)) is amended— spectively; and ‘‘(B) JUSTIFICATION.—If the Secretary (1) in paragraph (1), by striking ‘‘2008 (5) by inserting after subsection (s) (as so makes a determination to terminate a con- through 2012’’ and inserting ‘‘2012 through redesignated) the following: tract with a private establishment that is in 2017’’; ‘‘(t) ‘Supplemental nutrition assistance effect on the date of enactment of this sub- (2) by striking paragraph (2) and inserting program’ means the program operated pursu- section, the Secretary shall provide jus- the following: ant to this Act.’’. tification to the State in which the private ‘‘(2) AMOUNTS.—The Secretary shall use to (b) Section 4(a) of the Food and Nutrition establishment is located for that termi- carry out paragraph (1)— Act of 2008 (7 U.S.C. 2013(a)) is amended in nation. ‘‘(A) for fiscal year 2012, $260,250,000; and the last sentence by striking ‘‘benefits’’ and ‘‘(3) REPORT TO CONGRESS.—Not later than ‘‘(B) for each subsequent fiscal year, the inserting ‘‘Benefits’’. 90 days after September 30, 2013, and 90 days dollar amount of commodities specified in (c) Section 5 of the Food and Nutrition Act after the last day of each fiscal year there- subparagraph (A) adjusted by the percentage of 2008 (7 U.S.C. 2014) is amended— after, the Secretary shall report to the Com- by which the thrifty food plan has been ad- (1) in the last sentence of subsection mittee on Agriculture of the House of Rep- justed under section 3(u)(4) between June 30, (i)(2)(D), by striking ‘‘section 13(b)(2)’’ and resentatives and the Committee on Agri- 2012, and June 30 of the immediately pre- inserting ‘‘section 13(b)’’; and culture, Nutrition, and Forestry of the Sen- ceding fiscal year, and subsequently in- (2) in subsection (k)(4)(A), by striking ate on the effectiveness of a program under creased by— ‘‘paragraph (2)(H)’’ and inserting ‘‘paragraph this subsection using any information re- ‘‘(i) for fiscal year 2013, $28,000,000; (2)(G)’’. ceived from States under section 11(e)(24) as ‘‘(ii) for fiscal year 2014, $44,000,000; (d) Section 6(d)(4) of the Food and Nutri- well as any other information the Secretary ‘‘(iii) for fiscal year 2015, $24,000,000; tion Act of 2008 (7 U.S.C. 2015(d)(4)) is amend- may have relating to the manner in which ‘‘(iv) for fiscal year 2016, $18,000,000; and ed in subparagraphs (B)(vii) and (F)(iii) by benefits are used.’’. ‘‘(v) for fiscal year 2017 and each fiscal year indenting both clauses appropriately. (c) CONFORMING AMENDMENTS.—Section thereafter, $10,000,000.’’; and (e) Section 7(h) of the Food and Nutrition 3(k) of the Food and Nutrition Act of 2008 (7 (3) by adding at the end the following: Act of 2008 (7 U.S.C. 2016(h)) is amended by U.S.C. 2012(k)) is amended by inserting ‘‘sub- ‘‘(3) FUNDS AVAILABILITY.—For purposes of redesignating the second paragraph (12) (reject to section 9(h)’’ after ‘‘concessional the funds described in this subsection, the lating to interchange fees) as paragraph (13). prices’’ each place it appears. Secretary shall— (f) Section 9(a) of the Food and Nutrition SEC. 4010. QUALITY CONTROL ERROR RATE DE- ‘‘(A) make the funds available for 2 fiscal Act of 2008 (7 U.S.C. 2018(a)) is amended by TERMINATION. years; and indenting paragraph (3) appropriately. Section 16(c) of the Food and Nutrition Act ‘‘(B) allow States to carry over unexpended (g) Section 12 of the Food and Nutrition of 2008 (7 U.S.C. 2025(c)) is amended by adding balances to the next fiscal year pursuant to Act of 2008 (7 U.S.C. 2021) is amended— at the end the following: such terms and conditions as are determined (1) in subsection (b)(3)(C), by striking ‘‘(10) TOLERANCE LEVEL.—For the purposes by the Secretary.’’. ‘‘civil money penalties’’ and inserting ‘‘civil of this subsection, the Secretary shall set (b) EMERGENCY FOOD PROGRAM INFRASTRUC- penalties’’; and the tolerance level for excluding small errors TURE GRANTS.—Section 209(d) of the Emer- (2) in subsection (g)(1), by striking ‘‘(7 at $25.’’. gency Food Assistance Act of 1983 (7 U.S.C. U.S.C. 1786)’’ and inserting ‘‘(42 U.S.C. 1786)’’. SEC. 4011. PERFORMANCE BONUS PAYMENTS. 7511a(d)) is amended by striking ‘‘2012’’ and (h) Section 15(b)(1) of the Food and Nutri- Section 16(d) of the Food and Nutrition Act inserting ‘‘2017’’. tion Act of 2008 (7 U.S.C. 2024(b)(1)) is amend- of 2008 (7 U.S.C. 2025(d)) is amended by adding SEC. 4015. NUTRITION EDUCATION. ed in the first sentence by striking ‘‘an ben- at the end the following: Section 28(b) of the Food and Nutrition Act efit’’ and inserting ‘‘a benefit’’. ‘‘(5) USE OF PERFORMANCE BONUS PAY- of 2008 (7 U.S.C. 2036a(b)) is amended by in- (i) Section 16(a) of the Food and Nutrition MENTS.—A State agency may use a perform- serting ‘‘and physical activity’’ after Act of 2008 (7 U.S.C. 2025(a)) is amended in ance bonus payment received under this sub- ‘‘healthy food choices’’. the proviso following paragraph (8) by strik- section only to carry out the program estab- SEC. 4016. RETAIL FOOD STORE AND RECIPIENT ing ‘‘as amended.’’. lished under this Act, including investments TRAFFICKING. (j) Section 18(e) of the Food and Nutrition in— The Food and Nutrition Act of 2008 (7 Act of 2008 (7 U.S.C. 2027(e)) is amended in ‘‘(A) technology; U.S.C. 2011 et seq.) is amended by adding at the first sentence by striking ‘‘sections 7(f)’’ ‘‘(B) improvements in administration and the end the following: and inserting ‘‘section 7(f)’’. distribution; and ‘‘SEC. 29. RETAIL FOOD STORE AND RECIPIENT (k) Section 22(b)(10)(B)(i) of the Food and TRAFFICKING. ‘‘(C) actions to prevent fraud, waste, and Nutrition Act of 2008 (7 U.S.C. ‘‘(a) PURPOSE.—The purpose of this section abuse.’’. 2031(b)(10)(B)(i)) is amended in the last sen- is to provide the Department of Agriculture tence by striking ‘‘Food benefits’’ and insert- SEC. 4012. AUTHORIZATION OF APPROPRIATIONS. with additional resources to prevent traf- ing ‘‘Benefits’’. Section 18(a)(1) of the Food and Nutrition ficking in violation of this Act by strength- (l) Section 26(f)(3)(C) of the Food and Nu- Act of 2008 (7 U.S.C. 2027(a)(1)) is amended in ening recipient and retail food store program trition Act of 2008 (7 U.S.C. 2035(f)(3)(C)) is the first sentence by striking ‘‘2012’’ and in- integrity. amended by striking ‘‘subsection’’ and inserting ‘‘2017’’. ‘‘(b) USE OF FUNDS.—Additional funds are serting ‘‘subsections’’. SEC. 4013. ASSISTANCE FOR COMMUNITY FOOD provided under this section to supplement (m) Section 27(a)(1) of the Food and Nutri- PROJECTS. the retail food store and recipient integrity tion Act of 2008 (7 U.S.C. 2036(a)(1)) is amend- Section 25 of the Food and Nutrition Act of activities of the Department. ed by striking ‘‘(Public Law 98–8; 7 U.S.C. 2008 (7 U.S.C. 2034) is amended— ‘‘(c) FUNDING.— 612c note)’’ and inserting ‘‘(7 U.S.C. 7515)’’. (1) in subsection (a)(1)(B)(ii)— ‘‘(1) IN GENERAL.—Out of any funds in the (n) Section 509 of the Older Americans Act (A) by striking subclause (I); and Treasury not otherwise appropriated, the of 1965 (42 U.S.C. 3056g) is amended in the (B) by redesignating subclauses (II) and Secretary of the Treasury shall transfer to section heading by striking ‘‘FOOD STAMP (III) as subclauses (I) and (II), respectively; the Secretary to carry out this section not PROGRAMS’’ and inserting ‘‘SUPPLE- and less than $18,500,000 for fiscal year 2013 and MENTAL NUTRITION ASSISTANCE PRO- (2) in subsection (b), by adding at the end each fiscal year thereafter. GRAMS’’. the following: ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec- (o) Section 4115(c)(2)(H) of the Food, Con- ‘‘(3) FUNDING.— retary shall be entitled to receive, shall ac- servation, and Energy Act of 2008 (Public ‘‘(A) IN GENERAL.—Out of any funds in the cept, and shall use to carry out this section Law 110–246; 122 Stat. 1871) is amended by Treasury not otherwise appropriated, the the funds transferred under paragraph (1), striking ‘‘531’’ and inserting ‘‘454’’. Secretary of the Treasury shall transfer to without further appropriation. the Secretary to carry out this section not ‘‘(3) MAINTENANCE OF FUNDING.—The fund- Subtitle B—Commodity Distribution less than $5,000,000 for fiscal year 2013 and ing provided under paragraph (1) shall sup- Programs each fiscal year thereafter. plement (and not supplant) other Federal SEC. 4101. COMMODITY DISTRIBUTION PROGRAM. ‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec- funding for programs carried out under this Section 4(a) of the Agriculture and Con- retary shall be entitled to receive, shall ac- Act.’’. sumer Protection Act of 1973 (7 U.S.C. 612c

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note; Public Law 93–86) is amended in the SEC. 4204. WHOLE GRAIN PRODUCTS. ‘‘(c) HUNGER-FREE COMMUNITIES INCENTIVE first sentence by striking ‘‘2012’’ and insert- Section 4305 of the Food, Conservation, and GRANTS.— ing ‘‘2017’’. Energy Act of 2008 (42 U.S.C. 1755a) is amend- ‘‘(1) AUTHORIZATION.— SEC. 4102. COMMODITY SUPPLEMENTAL FOOD ed— ‘‘(A) IN GENERAL.—In each of the years PROGRAM. (1) in subsection (a), by striking ‘‘2005’’ and specified in subsection (d), the Secretary Section 5 of the Agriculture and Consumer inserting ‘‘2010’’; shall make grants to eligible entities in ac- Protection Act of 1973 (7 U.S.C. 612c note; (2) in subsection (d), by striking ‘‘2011’’ and cordance with paragraph (2). Public Law 93–86) is amended— inserting ‘‘2015’’; ‘‘(B) FEDERAL SHARE.—The Federal share of (1) in paragraphs (1) and (2)(B) of sub- (3) in subsection (e), by striking ‘‘Labor of the cost of carrying out an activity under section (a), by striking ‘‘2012’’ each place it the House of Representative’’ and inserting this subsection shall not exceed 50 percent of appears and inserting ‘‘2017’’; ‘‘the Workforce of the House of Representa- the total cost of the activity. (2) in the first sentence of subsection (d)(2), tives’’; and ‘‘(C) NON-FEDERAL SHARE.— by striking ‘‘2012’’ and inserting ‘‘2017’’; (4) by adding at the end the following: ‘‘(i) IN GENERAL.—The non-Federal share of (3) by striking subsection (g) and inserting ‘‘(f) FUNDING.— the cost of an activity under this subsection the following: ‘‘(1) IN GENERAL.—On October 1, 2013, out of may be provided— ‘‘(g) ELIGIBILITY.—Except as provided in any funds in the Treasury not otherwise ap- subsection (m), the States shall only provide ‘‘(I) in cash or in-kind contributions as de- propriated, the Secretary of the Treasury termined by the Secretary, including facili- assistance under the commodity supple- shall transfer to the Secretary to carry out mental food program to low-income persons ties, equipment, or services; and this section $10,000,000 for the period of fiscal aged 60 and older.’’; and ‘‘(II) by a State or local government or a years 2014 through 2015. (4) by adding at the end the following: private source. ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec- ‘‘(m) PHASE-OUT.—Notwithstanding any ‘‘(ii) LIMITATION.—In the case of a for-prof- other provision of law, an individual who re- retary shall be entitled to receive, shall ac- it entity, the non-Federal share described in ceives assistance under the commodity sup- cept, and shall use to carry out this section clause (i) shall not include services of an em- plemental food program on the day before the funds transferred under paragraph (1), ployee, including salaries paid or expenses the date of enactment of this subsection without further appropriation. covered by the employer. shall continue to receive that assistance ‘‘(3) MAINTENANCE OF FUNDING.—The fund- ‘‘(2) CRITERIA.— until the date on which the individual is no ing provided under paragraph (1) shall sup- ‘‘(A) IN GENERAL.—For purposes of this sub- longer eligible for assistance under the eligi- plement (and not supplant) other Federal section, an eligible entity is a governmental bility requirements for the program in effect funding (including funds made available agency or nonprofit organization that— on the day before the date of enactment of under section 32 of the Act of August 24, 1935 ‘‘(i) meets the application criteria set forth this subsection.’’. (7 U.S.C. 612c)) for programs carried out by the Secretary; and SEC. 4103. DISTRIBUTION OF SURPLUS COMMOD- under— ‘‘(ii) proposes a project that, at a min- ITIES TO SPECIAL NUTRITION ‘‘(A) the Richard B. Russell National imum— PROJECTS. School Lunch Act (42 U.S.C. 1751 et seq.), ex- ‘‘(I) has the support of the State agency; Section 1114(a)(2)(A) of the Agriculture and cept for section 19 of that Act (42 U.S.C. ‘‘(II) would increase the purchase of fruits Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is 1769a); and vegetables by low-income consumers amended in the first sentence by striking ‘‘(B) the Emergency Food Assistance Act participating in the supplemental nutrition ‘‘2012’’ and inserting ‘‘2017’’. of 1983 (7 U.S.C. 7501 et seq.); and assistance program by providing incentives SEC. 4104. TECHNICAL AND CONFORMING ‘‘(C) section 27 of the Food and Nutrition at the point of purchase; AMENDMENTS. Act of 2008 (7 U.S.C. 2036).’’. ‘‘(III) agrees to participate in the evalua- Section 3 of the Commodity Distribution SEC. 4205. HUNGER-FREE COMMUNITIES. tion described in paragraph (4); Reform Act and WIC Amendments of 1987 (7 Section 4405 of the Food, Conservation, and ‘‘(IV) ensures that the same terms and con- U.S.C. 612c note; Public Law 100–237) is Energy Act of 2008 (7 U.S.C. 7517) is amend- ditions apply to purchases made by individ- amended— ed— (1) in subsection (a)— uals with benefits issued under this Act and (A) in paragraph (2), by striking subpara- (1) in subsection (a)— incentives provided for in this subsection as graph (B) and inserting the following: (A) by striking paragraph (1) and inserting apply to purchases made by individuals who ‘‘(B) the program established under section the following: are not members of households receiving 4(b) of the Food and Nutrition Act of 2008 (7 ‘‘(1) ELIGIBLE ENTITY.— benefits, such as provided for in section U.S.C. 2013(b));’’; and ‘‘(A) COLLABORATIVE GRANTS.—In sub- 278.2(b) of title 7, Code of Federal Regula- (B) in paragraph (3)(D), by striking ‘‘the section (b), the term ‘eligible entity’ means tions (or a successor regulation); and Committee on Education and Labor’’ and in- a public food program service provider or ‘‘(V) includes effective and efficient tech- serting ‘‘the Committee on Education and nonprofit organization, including an emer- nologies for benefit redemption systems that the Workforce’’; gency feeding organization, that has collabo- may be replicated in other for States and (2) in subsection (b)(1)(A)(ii), by striking rated or will collaborate with 1 or more local communities. ‘‘section 32 of the Agricultural Adjustment partner organizations to achieve at least 1 ‘‘(B) PRIORITY.—In awarding grants under Act (7 U.S.C. 601 et seq.)’’ and inserting ‘‘sec- hunger-free communities goal. this section, the Secretary shall give pri- tion 32 of the Act of August 24, 1935 (7 U.S.C. ‘‘(B) INCENTIVE GRANTS.—In subsection (c), ority to projects that— 612c)’’; the term ‘eligible entity’ means a nonprofit ‘‘(i) maximize the share of funds used for (3) in subsection (e)(1)(D)(iii), by striking organization (including an emergency feed- direct incentives to participants; subclause (II) and inserting the following: ing organization), an agricultural coopera- ‘‘(ii) use direct-to-consumer sales mar- ‘‘(II) the program established under section tive, producer network or association, com- keting; 4(b) of the Food and Nutrition Act of 2008 (7 munity health organization, public benefit ‘‘(iii) demonstrate a track record of design- U.S.C. 2013(b));’’; and corporation, economic development corpora- ing and implementing successful nutrition (4) in subsection (k), by striking ‘‘the Com- tion, farmers’ market, community-supported incentive programs that connect low-income mittee on Education and Labor’’ and insert- agriculture program, buying club, supple- consumers and agricultural producers; ing ‘‘the Committee on Education and the mental nutrition assistance program retail ‘‘(iv) provide locally or regionally produced Workforce’’. food store, a State, local, or tribal agency, fruits and vegetables; and any other entity the Secretary des- ‘‘(v) are located in underserved commu- Subtitle C—Miscellaneous ignates.’’; nities; or SEC. 4201. PURCHASE OF FRESH FRUITS AND (B) by adding at the end the following: ‘‘(vi) address other criteria as established VEGETABLES FOR DISTRIBUTION TO ‘‘(4) SUPPLEMENTAL NUTRITION ASSISTANCE by the Secretary. SCHOOLS AND SERVICE INSTITU- TIONS. PROGRAM.—The term ‘supplemental nutrition ‘‘(3) APPLICABILITY.— Section 10603(b) of the Farm Security and assistance program’ means the supplemental ‘‘(A) IN GENERAL.—The value of any benefit Rural Investment Act of 2002 (7 U.S.C. 612c– nutrition assistance program established provided to a participant in any activity 4(b)) is amended by striking ‘‘2012’’ and in- under the Food and Nutrition Act of 2008 (7 funded under this subsection shall not be serting ‘‘2017’’. U.S.C. 2011 et seq.). considered income or resources for any pur- SEC. 4202. SENIORS FARMERS’ MARKET NUTRI- ‘‘(5) UNDERSERVED COMMUNITY.—The term pose under any Federal, State, or local law. TION PROGRAM. ‘underserved community’ has the meaning ‘‘(B) PROHIBITION ON COLLECTION OF SALES Section 4402(a) of the Farm Security and given the term in section 25 of the Food and TAXES.—Each State shall ensure that no Rural Investment Act of 2002 (7 U.S.C. Nutrition Act of 2008 (7 U.S.C. 2034).’’; State or local tax is collected on a purchase 3007(a)) is amended by striking ‘‘2012’’ and in- (2) in subsection (b)(1)(A), by striking ‘‘not of food under this subsection. serting ‘‘2017’’. more than 50 percent of any funds made ‘‘(C) NO LIMITATION ON BENEFITS.—A grant SEC. 4203. NUTRITION INFORMATION AND available under subsection (e)’’ and inserting made available under this subsection shall AWARENESS PILOT PROGRAM. ‘‘funds made available under subsection not be used to carry out any project that Section 4403 of the Farm Security and (d)(1)’’; and limits the use of benefits under the Food and Rural Investment Act of 2002 (7 U.S.C. 3171 (3) by striking subsections (c), (d), and (e) Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or note; Public Law 107–171) is repealed. and inserting the following: any other Federal nutrition law.

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‘‘(D) HOUSEHOLD ALLOTMENT.—Assistance ‘‘(4) PARTNERSHIP.—The term ‘partnership’ ‘‘(IV) The project involves women- or mi- provided under this subsection to households means a regional, State, or local public-pri- nority-owned businesses. receiving benefits under the supplemental vate partnership that— ‘‘(V) The project receives funding from nutrition assistance program shall not— ‘‘(A) is organized to improve access to other sources, including other Federal agen- ‘‘(i) be considered part of the supplemental fresh, healthy foods; cies. nutrition assistance program benefits of the ‘‘(B) provides financial and technical as- ‘‘(VI) The project otherwise advances the household; or sistance to eligible projects; and purpose of this section, as determined by the ‘‘(ii) be used in the collection or disposi- ‘‘(C) meets such other criteria as the Sec- Secretary. tion of claims under section 13 of the Food retary may establish. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— and Nutrition Act of 2008 (7 U.S.C. 2022). ‘‘(5) PERISHABLE FOOD.—The term ‘perish- There is authorized to be appropriated to the ‘‘(4) EVALUATION.— able food’ means a staple food that is fresh, Secretary to carry out this section ‘‘(A) INDEPENDENT EVALUATION.—The Sec- refrigerated, or frozen. $125,000,000, to remain available until ex- retary shall provide for an independent eval- ‘‘(6) QUALITY JOB.—The term ‘quality job’ pended.’’. uation of projects selected under this sub- means a job that provides wages and other (b) CONFORMING AMENDMENT.—Section section that measures the impact of each benefits comparable to, or better than, simi- 296(b) of the Department of Agriculture Re- project on— lar positions in existing businesses of similar organization Act of 1994 (7 U.S.C. 7014(b)) (as ‘‘(i) improving the nutrition and health size in similar local economies. amended by section 1609(d)) is amended— status of participating households receiving ‘‘(7) STAPLE FOOD.— (1) in paragraph (7), by striking ‘‘or’’ at the incentives under this subsection; and ‘‘(A) IN GENERAL.—The term ‘staple food’ end; ‘‘(ii) increasing fruit and vegetable pur- means food that is a basic dietary item. (2) in paragraph (8), by striking the period chases in participating households. ‘‘(B) INCLUSIONS.—The term ‘staple food’ at the end and inserting ‘‘; or’’; and ‘‘(B) REQUIREMENT.—The independent eval- includes— (3) by adding at the end the following: uation under subparagraph (A) shall use rig- ‘‘(i) bread; ‘‘(9) the authority of the Secretary to es- orous methodologies capable of producing ‘‘(ii) flour; tablish and carry out the Health Food Fi- scientifically valid information regarding ‘‘(iii) fruits; nancing Initiative under section 242.’’. the effectiveness of a project. ‘‘(iv) vegetables; and SEC. 4207. PULSE CROP PRODUCTS. ‘‘(C) COSTS.—The Secretary may use funds ‘‘(v) meat. (a) PURPOSE.—The purpose of this section is to encourage greater awareness and inter- not to exceed 10 percent of the funding pro- ‘‘(c) INITIATIVE.— est in the number and variety of pulse crop vided to carry out this section to pay costs ‘‘(1) ESTABLISHMENT.—The Secretary shall products available to schoolchildren, as rec- associated with administering, monitoring, establish an initiative to achieve the purpose ommended by the most recent Dietary and evaluating each project. described in subsection (a) in accordance Guidelines for Americans published under ‘‘(d) FUNDING.— with this subsection. section 301 of the National Nutrition Moni- ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(2) IMPLEMENTATION.— toring and Related Research Act of 1990 (7 There is authorized to be appropriated to ‘‘(A) IN GENERAL.— U.S.C. 5341). carry out subsection (b) $5,000,000 for each of ‘‘(i) IN GENERAL.—In carrying out the Ini- (b) DEFINITIONS.—In this section: fiscal years 2013 through 2017. tiative, the Secretary shall provide funding (1) ELIGIBLE PULSE CROP.—The term ‘‘eligi- ‘‘(2) MANDATORY FUNDING.—Of the funds of to entities with eligible projects, as de- the Commodity Credit Corporation, the Sec- ble pulse crop’’ means dry beans, dry peas, scribed in subparagraph (B), subject to the lentils, and chickpeas. retary shall use to carry out subsection (c)— priorities described in subparagraph (C). (2) PULSE CROP PRODUCT.—The term ‘‘pulse ‘‘(A) $15,000,000 for fiscal year 2013; ‘‘(ii) USE OF FUNDS.—Funds provided to an ‘‘(B) $20,000,000 for each of fiscal years 2014 crop product’’ means a food product derived entity pursuant to clause (i) shall be used— in whole or in part from an eligible pulse through 2016; and ‘‘(I) to create revolving loan pools of cap- ‘‘(C) $25,000,000 for fiscal year 2017.’’. crop. ital or other products to provide loans to fi- (c) PURCHASE OF PULSE CROPS AND PULSE SEC. 4206. HEALTHY FOOD FINANCING INITIA- nance eligible projects or partnerships; CROP PRODUCTS.—In addition to the com- TIVE. ‘‘(II) to provide grants for eligible projects modities delivered under section 6 of the (a) IN GENERAL.—Subtitle D of title II of or partnerships; Richard B. Russell National School Lunch the Department of Agriculture Reorganiza- ‘‘(III) to provide technical assistance to Act (42 U.S.C. 1755), the Secretary shall pur- tion Act of 1994 (7 U.S.C. 6951 et seq.) is funded projects and entities seeking Initia- chase eligible pulse crops and pulse crop amended by adding at the end the following: tive funding; and products for use in— ‘‘SEC. 242. HEALTHY FOOD FINANCING INITIA- ‘‘(IV) to cover administrative expenses of (1) the school lunch program established TIVE. the national fund manager in an amount not under the Richard B. Russell National ‘‘(a) PURPOSE.—The purpose of this section to exceed 10 percent of the Federal funds pro- School Lunch Act (42 U.S.C. 1751 et seq.); and is to enhance the authorities of the Sec- vided. (2) the school breakfast program estab- retary to support efforts to provide access to ‘‘(B) ELIGIBLE PROJECTS.—Subject to the lished by section 4 of the Child Nutrition Act healthy food by establishing an initiative to approval of the Secretary, the national fund of 1966 (42 U.S.C. 1773). improve access to healthy foods in under- manager shall establish eligibility criteria (d) EVALUATION.—Not later than Sep- served areas, to create and preserve quality for projects under the Initiative, which shall tember 30, 2016, the Secretary shall conduct jobs, and to revitalize low-income commu- include the existence or planned execution of an evaluation of the activities conducted nities by providing loans and grants to eligi- agreements— under subsection (c), including— ble fresh, healthy food retailers to overcome ‘‘(i) to expand or preserve the availability (1) an evaluation of whether children par- the higher costs and initial barriers to entry of staple foods in underserved areas with ticipating in the school lunch and breakfast in underserved areas. moderate- and low-income populations by programs described in subsection (c) in- ‘‘(b) DEFINITIONS.—In this section: maintaining or increasing the number of re- creased overall consumption of eligible pulse ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL tail outlets that offer an assortment of per- crops as a result of the activities; INSTITUTION.—The term ‘community develop- ishable food and staple food items, as deter- (2) an evaluation of which eligible pulse ment financial institution’ has the meaning mined by the Secretary, in those areas; and crops and pulse crop products are most ac- given the term in section 103 of the Commu- ‘‘(ii) to accept benefits under the supple- ceptable for use in the school lunch and nity Development Banking and Financial In- mental nutrition assistance program estab- breakfast programs; stitutions Act of 1994 (12 U.S.C. 4702). lished under the Food and Nutrition Act of (3) any recommendations of the Secretary ‘‘(2) INITIATIVE.—The term ‘Initiative’ 2008 (7 U.S.C. 2011 et seq.). regarding the integration of the use of pulse means the Healthy Food Financing Initia- ‘‘(C) PRIORITIES.—In carrying out the Ini- crop products in carrying out the school tive established under subsection (c)(1). tiative, priority shall be given to projects lunch and breakfast programs; ‘‘(3) NATIONAL FUND MANAGER.—The term that— (4) an evaluation of any change in the nu- ‘national fund manager’ means a community ‘‘(i) are located in severely distressed low- trient composition in the school lunch and development financial institution that is— income communities, as defined by the Com- breakfast programs due to the activities; and ‘‘(A) in existence on the date of enactment munity Development Financial Institutions (5) an evaluation of any other outcomes de- of this section; and Fund of the Department of Treasury; and termined to be appropriate by the Secretary. ‘‘(B) certified by the Community Develop- ‘‘(ii) include 1 or more of the following (e) REPORT.—As soon as practicable after ment Financial Institution Fund of the De- characteristics: the completion of the evaluation under sub- partment of Treasury to manage the Initia- ‘‘(I) The project will create or retain qual- section (d), the Secretary shall submit to the tive for purposes of— ity jobs for low-income residents in the com- Committee on Agriculture, Nutrition, and ‘‘(i) raising private capital; munity. Forestry of the Senate and the Committee ‘‘(ii) providing financial and technical as- ‘‘(II) The project supports regional food on Education and the Workforce of the sistance to partnerships; and systems and locally grown foods, to the max- House of Representative a report describing ‘‘(iii) funding eligible projects to attract imum extent practicable. the results of the evaluation. fresh, healthy food retailers to underserved ‘‘(III) In areas served by public transit, the (f) AUTHORIZATION OF APPROPRIATIONS.— areas, in accordance with this section. project is accessible by public transit. There is authorized to be appropriated to

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4523 carry out this section $10,000,000, to remain ‘‘Subtitle A—Farmer Loans, Servicing, and ticipated in business operations of a farm for available until expended. Other Assistance not less than 3 years (or has other acceptable experience for a period of time determined SEC. 4208. DIETARY GUIDELINES FOR AMERI- ‘‘CHAPTER 1—FARM OWNERSHIP LOANS CANS. ‘‘SEC. 3101. FARM OWNERSHIP LOANS. by the Secretary) and— ‘‘(A) is a qualified beginning farmer; ‘‘(a) IN GENERAL.—The Secretary may Section 301(a) of the National Nutrition ‘‘(B) has not received a previous direct Monitoring and Related Research Act of 1990 make or guarantee a farm ownership loan under this chapter to an eligible farmer. farm ownership loan made under this chap- (7 U.S.C. 5341(a)) is amended by adding at the ter; or end the following: ‘‘(b) ELIGIBILITY.—A farmer shall be eligible under subsection (a) only— ‘‘(C) has not received a direct farm owner- ‘‘(3) PREGNANT WOMEN AND YOUNG CHIL- ‘‘(1) if the farmer, or, in the case of an enti- ship loan under this chapter more than 10 DREN.—Not later than the 2020 report and in years before the date on which the new loan each report thereafter, the Secretaries shall ty, 1 or more individuals holding a majority interest in the farmer— would be made. include national nutritional and dietary in- ‘‘(2) YOUTH LOANS.—The operation of an en- formation and guidelines for pregnant ‘‘(A) is a citizen of the United States; and ‘‘(B) in the case of a direct loan, has train- terprise by a youth under section 3201(d) women and children from birth until the age shall not be considered the operation of a of 2.’’. ing or farming experience that the Secretary determines is sufficient to ensure a reason- farm for purposes of paragraph (1). SEC. 4209. PURCHASES OF LOCALLY PRODUCED able prospect of success in the farming oper- ‘‘SEC. 3102. PURPOSES OF LOANS. FOODS. ation proposed by the farmer; ‘‘(a) ALLOWED PURPOSES.— Section 9(j) of the Richard B. Russell Na- ‘‘(2)(A) in the case of a farmer that is an ‘‘(1) DIRECT LOANS.—A farmer may use a ditional School Lunch Act (42 U.S.C. 1758(j)) is individual, if the farmer is or proposes to be- rect loan made under this chapter only— amended— come an owner and operator of a farm that ‘‘(A) to acquire or enlarge a farm; (1) by redesignating paragraphs (1) through is not larger than a family farm; or ‘‘(B) to make capital improvements to a (3) as subparagraphs (A) through (C), respec- ‘‘(B) in the case of a lessee-operator of a farm; tively, and indenting the subparagraphs ap- farm located in the State of Hawaii, if the ‘‘(C) to pay loan closing costs related to ac- propriately; Secretary determines that— quiring, enlarging, or improving a farm; (2) by striking ‘‘The Secretary’’ and insert- ‘‘(i) the farm is not larger than a family ‘‘(D) to pay for activities to promote soil ing the following: farm; and water conservation and protection de- ‘‘(1) IN GENERAL.—The Secretary’’; ‘‘(ii) the farm cannot be acquired in fee scribed in section 3103 on a farm; or (3) in paragraph (1) (as so redesignated)— simple by the lessee-operator; ‘‘(E) to refinance a temporary bridge loan (A) in subparagraph (B)— ‘‘(iii) adequate security is provided for the made by a commercial or cooperative lender (i) by striking ‘‘paragraph (1) of the policy loan with respect to the farm for which the to a farmer for the acquisition of land for a described in that paragraph and paragraph lessee-operator applies under this chapter; farm, if— (3)’’ and inserting ‘‘subparagraph (A) of the and ‘‘(i) the Secretary approved an application policy described in that subparagraph and ‘‘(iv) there is a reasonable probability of for a direct farm ownership loan to the farm- subparagraph (C)’’; and accomplishing the objectives and repayment er for acquisition of the land; and (ii) by striking ‘‘and’’ at the end; of the loan; ‘‘(ii) funds for direct farm ownership loans (B) in subparagraph (C), by striking the pe- ‘‘(3) in the case of a farmer that is a coop- under section 3201(a) were not available at riod at the end and inserting ‘‘; and’’; and erative, corporation, partnership, trust, lim- the time at which the application was ap- (C) by adding at the end the following: ited liability company, joint operation, or proved. ‘‘(D) not later than 1 year after the date of such other legal entity as the Secretary de- ‘‘(2) GUARANTEED LOANS.—A farmer may enactment of this subparagraph, in accord- termines to be appropriate, with respect to use a loan guaranteed under this chapter ance with paragraphs (2) and (3), conduct not the entity and each farm in which the entity only— fewer than 5 demonstration projects through has an ownership or operator interest— ‘‘(A) to acquire or enlarge a farm; school food authorities receiving funds under ‘‘(A) if— ‘‘(B) to make capital improvements to a this Act and the Child Nutrition Act of 1966 ‘‘(i) a majority interest is held by individ- farm; (42 U.S.C. 1771 et seq.) to facilitate the pur- uals who are related by blood or marriage, as ‘‘(C) to pay loan closing costs related to ac- chase of unprocessed and minimally proc- defined by the Secretary; quiring, enlarging, or improving a farm; essed locally grown and locally raised agri- ‘‘(ii) all of the individuals are or propose to ‘‘(D) to pay for activities to promote soil cultural products.’’; and become owners or operators of a farm that is and water conservation and protection de- (4) by adding at the end the following: not larger than a family farm; and scribed in section 3103 on a farm; or ‘‘(2) SELECTION.—In conducting demonstra- ‘‘(iii) at least 1 of the individuals is or pro- ‘‘(E) to refinance indebtedness. tion projects under paragraph (1)(D), the Sec- poses to become an operator of the farm; or ‘‘(b) PREFERENCES.—In making or guaran- retary shall ensure that at least 1 project is ‘‘(B) if— teeing a loan under this chapter for purchase located in a State in each of— ‘‘(i) the entire interest is held by individ- of a farm, the Secretary shall give preference ‘‘(A) the Pacific Northwest Region; uals who are related by blood or marriage, as to a person who— ‘‘(B) the Northeast Region; defined by the Secretary; ‘‘(1) has a dependent family; ‘‘(C) the Western Region; ‘‘(ii) all of the individuals are or propose to ‘‘(2) to the extent practicable, is able to ‘‘(D) the Midwest Region; and become farm operators; and make an initial down payment on the farm; ‘‘(E) the Southern Region. ‘‘(iii) the ownership interest of each indi- or ‘‘(3) PRIORITY.—In selecting States for par- vidual separately constitutes not larger than ‘‘(3) is an owner of livestock or farm equip- ticipation in the demonstration projects a family farm, even if the ownership inter- ment that is necessary to successfully carry under paragraph (2), the Secretary shall ests of the individuals collectively con- out farming operations. prioritize applications based on— stitute larger than a family farm; ‘‘(c) HAZARD INSURANCE REQUIREMENT.— ‘‘(A) the quantity and variety of growers of ‘‘(4) in the case of an entity that is, or will The Secretary may not make a loan to a local fruits and vegetables in the State; become within a reasonable period of time, farmer under this chapter unless the farmer ‘‘(B) the demonstrated commitment of the as determined by the Secretary, only the op- has, or agrees to obtain, hazard insurance on State to farm-to-school efforts, as evidenced erator of a family farm, if the 1 or more indi- any real property to be acquired or improved by prior efforts to increase and promote viduals who are the owners of the family with the loan. farm-to- school programs in the State; and farm own— ‘‘SEC. 3103. CONSERVATION LOAN AND LOAN ‘‘(C) whether the State contains a suffi- ‘‘(A) a percentage of the family farm that GUARANTEE PROGRAM. cient quantity of school districts of varying exceeds 50 percent; or ‘‘(a) IN GENERAL.—The Secretary may population sizes and geographical loca- ‘‘(B) such other percentage as the Sec- make or guarantee qualified conservation tions.’’. retary determines to be appropriate; loans to eligible borrowers under this sec- ‘‘(5) in the case of an operator described in tion. TITLE V—CREDIT paragraph (3) that is owned, in whole or in ‘‘(b) DEFINITIONS.—In this section: Subtitle A—Farmer Loans, Servicing, and part, by 1 or more other entities, if each of ‘‘(1) CONSERVATION PLAN.—The term ‘con- Other Assistance Under the Consolidated the individuals that have a direct or indirect servation plan’ means a plan, approved by Farm and Rural Development Act ownership interest in such other entities the Secretary, that, for a farming operation, also have a direct ownership interest in the identifies the conservation activities that SEC. 5001. FARMER LOANS, SERVICING, AND entity applying as an individual; and will be addressed with loan funds provided OTHER ASSISTANCE UNDER THE ‘‘(6) if the farmer and each individual that under this section, including— CONSOLIDATED FARM AND RURAL holds a majority interest in the farmer is un- ‘‘(A) the installation of conservation struc- DEVELOPMENT ACT. able to obtain credit elsewhere. tures to address soil, water, and related re- The Consolidated Farm and Rural Develop- ‘‘(c) DIRECT LOANS.— sources; ment Act (as amended by section 6001) is ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘(B) the establishment of forest cover for amended by inserting after section 3002 the the Secretary may make a direct loan under sustained yield timber management, erosion following: this chapter only to a farmer who has par- control, or shelter belt purposes;

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‘‘(C) the installation of water conservation ‘‘(b) DETERMINATION OF VALUE.—In deter- ‘‘(3) MULTIPLE LOANS.—A borrower may use measures; mining the value of the farm, the Secretary the same collateral to secure 2 or more loans ‘‘(D) the installation of waste management shall consider appraisals made by competent made or guaranteed under this chapter, ex- systems; appraisers under rules established by the cept that the outstanding amount of the ‘‘(E) the establishment or improvement of Secretary. loans may not exceed the total value of the permanent pasture; ‘‘(c) INFLATION PERCENTAGE.—For purposes collateral. ‘‘(F) compliance with section 1212 of the of this section, the inflation percentage ap- ‘‘(e) MINERAL RIGHTS AS COLLATERAL.— Food Security Act of 1985 (16 U.S.C. 3812); plicable to a fiscal year is the percentage (if ‘‘(1) IN GENERAL.—In the case of a farm and any) by which— ownership loan made after December 23, 1985, ‘‘(G) other purposes consistent with the ‘‘(1) the average of the Prices Paid By unless appraised values of the rights to oil, plan, including the adoption of any other Farmers Index (as compiled by the National gas, or other minerals are specifically in- emerging or existing conservation practices, Agricultural Statistics Service of the De- cluded as part of the appraised value of col- techniques, or technologies approved by the partment) for the 12-month period ending on lateral securing the loan, the rights to oil, Secretary. August 31 of the immediately preceding fis- gas, or other minerals located under the ‘‘(2) QUALIFIED CONSERVATION LOAN.—The cal year; exceeds property shall not be considered part of the term ‘qualified conservation loan’ means a ‘‘(2) the average of that index (as so de- collateral securing the loan. loan, the proceeds of which are used to cover fined) for the 12-month period ending on Au- ‘‘(2) COMPENSATORY PAYMENTS.—Nothing in the costs to the borrower of carrying out a gust 31, 1996. this subsection prevents the inclusion of, as qualified conservation project. ‘‘SEC. 3105. REPAYMENT REQUIREMENTS FOR part of the collateral securing the loan, any ‘‘(3) QUALIFIED CONSERVATION PROJECT.— FARM OWNERSHIP LOANS. payment or other compensation the bor- The term ‘qualified conservation project’ ‘‘(a) PERIOD FOR REPAYMENT.—The period rower may receive for damages to the sur- means conservation measures that address for repayment of a loan under this chapter face of the collateral real estate resulting provisions of a conservation plan of the eligi- shall not exceed 40 years. from the exploration for or recovery of min- ‘‘(b) INTEREST RATES.— ble borrower. erals. ‘‘(1) IN GENERAL.—Except as otherwise pro- ‘‘(c) ELIGIBILITY.— ‘‘(f) ADDITIONAL COLLATERAL.—The Sec- vided in this title, the interest rate on a loan ‘‘(1) IN GENERAL.—The Secretary may make retary may not— or guarantee loans to farmers. under this chapter shall be determined by ‘‘(1) require any borrower to provide addi- the Secretary at a rate— ‘‘(2) REQUIREMENTS.—To be eligible for a tional collateral to secure a farmer program loan under this section, applicants shall ‘‘(A) not to exceed the sum obtained by loan made or guaranteed under this subtitle, meet the citizenship and training and experi- adding— if the borrower is current in the payment of ence requirements of section 3101(b). ‘‘(i) the current average market yield on principal and interest on the loan; or ‘‘(d) PRIORITY.—In making or guaranteeing outstanding marketable obligations of the ‘‘(2) bring any action to foreclose, or other- loans under this section, the Secretary shall United States with remaining periods to ma- wise liquidate, the loan as a result of the give priority to— turity comparable to the average maturity failure of a borrower to provide additional ‘‘(1) qualified beginning farmers and so- of the loan; and collateral to secure the loan, if the borrower cially disadvantaged farmers; ‘‘(ii) an amount not to exceed 1 percent, as was current in the payment of principal and ‘‘(2) owners or tenants who use the loans to determined by the Secretary; and interest on the loan at the time the addi- convert to sustainable or organic agricul- ‘‘(B) adjusted to the nearest 1⁄8 of 1 percent. tional collateral was requested. tural production systems; and ‘‘(2) LOW INCOME FARM OWNERSHIP LOANS.— ‘‘SEC. 3106. LIMITED-RESOURCE LOANS. ‘‘(3) producers who use the loans to build Except as provided in paragraph (3), the in- ‘‘(a) IN GENERAL.—The Secretary may conservation structures or establish con- terest rate on a loan (other than a guaran- make or guarantee a limited-resource loan servation practices to comply with section teed loan) under section 3106 shall be deter- for any of the purposes specified in sections 1212 of the Food Security Act of 1985 (16 mined by the Secretary at a rate that is— 3102(a) or 3103(a) to a farmer in the United U.S.C. 3812). ‘‘(A) not greater than the sum obtained by States who— ‘‘(e) LIMITATIONS APPLICABLE TO LOAN adding— ‘‘(1) in the case of an entity, all members, GUARANTEES.—The portion of a loan that the ‘‘(i) an amount that does not exceed 1⁄2 of stockholders, or partners are eligible under Secretary may guarantee under this section the current average market yield on out- section 3101(b); shall not exceed 75 percent of the principal standing marketable obligations of the ‘‘(2) has a low income; and amount of the loan. United States with maturities of 5 years; and ‘‘(3) demonstrates a need to maximize the ‘‘(f) ADMINISTRATIVE PROVISIONS.—The Sec- ‘‘(ii) an amount not to exceed 1 percent per income of the farmer from farming oper- retary shall ensure, to the maximum extent year, as the Secretary determines is appro- ations. practicable, that loans made or guaranteed priate; and ‘‘(b) INSTALLMENTS.—A loan made or guar- under this section are distributed across di- ‘‘(B) not less than 5 percent per year. anteed under this section shall be repayable verse geographic regions. ‘‘(3) JOINT FINANCING ARRANGEMENT.—If a in such installments as the Secretary deter- ‘‘(g) CREDIT ELIGIBILITY.—The provisions of direct farm ownership loan is made under mines will provide for reduced payments dur- paragraphs (1) and (3) of section 3406(a) shall this chapter as part of a joint financing ar- ing the initial repayment period of the loan not apply to loans made or guaranteed under rangement and the amount of the direct and larger payments during the remainder of this section. farm ownership loan does not exceed 50 per- the repayment period of the loan. ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— cent of the total principal amount financed ‘‘(c) INTEREST RATES.—Except as provided For each of fiscal years 2012 through 2017, under the arrangement, the interest rate on in section 3105(b)(3) and in section 3204(b)(3), there are authorized to be appropriated to the direct farm ownership loan shall be at the interest rate on loans (other than guar- the Secretary such sums as are necessary to least 4 percent annually. anteed loans) under this section shall not carry out this section. ‘‘(4) GUARANTEED LOANS.—The interest rate be— ‘‘SEC. 3104. LOAN MAXIMUMS. on a loan made under this chapter as a guar- ‘‘(1) greater than the sum obtained by add- ‘‘(a) MAXIMUM.— anteed loan shall be such rate as may be ing— 1 ‘‘(1) IN GENERAL.—The Secretary shall agreed on by the borrower and the lender, ‘‘(A) an amount that does not exceed ⁄2 of make or guarantee no loan under sections but not in excess of any rate determined by the current average market yield on out- 3101, 3102, 3103, 3106, and 3107 that would the Secretary. standing marketable obligations of the cause the unpaid indebtedness under those ‘‘(c) PAYMENT OF CHARGES.—A borrower of United States with maturities of 5 years; and sections of any 1 borrower to exceed the less- a loan made or guaranteed under this chap- ‘‘(B) an amount not exceeding 1 percent per er of— ter shall pay such fees and other charges as year, as the Secretary determines is appro- ‘‘(A) the value of the farm or other secu- the Secretary may require, and prepay to the priate; or rity, or Secretary such taxes and insurance as the ‘‘(2) less than 5 percent per year. ‘‘(B)(i) in the case of a loan made by the Secretary may require, on such terms and ‘‘SEC. 3107. DOWNPAYMENT LOAN PROGRAM. Secretary, $300,000; or conditions as the Secretary may prescribe. ‘‘(a) IN GENERAL.— ‘‘(ii) in the case of a loan guaranteed by ‘‘(d) SECURITY.— ‘‘(1) ESTABLISHMENT.—Notwithstanding the Secretary, $700,000 (as modified under ‘‘(1) IN GENERAL.—The Secretary shall take any other provision of this chapter, the Sec- paragraph (2)). as security for an obligation entered into in retary shall establish, under the farm owner- ‘‘(2) MODIFICATION.—The amount specified connection with a loan, a mortgage on a ship loan program established under this in paragraph (1)(B)(ii) shall be— farm with respect to which the loan is made chapter, a program under which loans shall ‘‘(A) increased, beginning with fiscal year or such other security as the Secretary may be made under this section to a qualified be- 2000, by the inflation percentage applicable require. ginning farmer or a socially disadvantaged to the fiscal year in which the loan is guar- ‘‘(2) LIENS TO UNITED STATES.—An instru- farmer for a downpayment on a farm owner- anteed; and ment for security under paragraph (1) may ship loan. ‘‘(B) reduced by the amount of any unpaid constitute a lien running to the United ‘‘(2) COORDINATION.—The Secretary shall be indebtedness of the borrower on loans under States notwithstanding the fact that the the primary coordinator of credit super- chapter 2 that are guaranteed by the Sec- note for the security may be held by a lender vision for the downpayment loan program es- retary. other than the United States. tablished under this section, in consultation

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4525 with a commercial or cooperative lender fied beginning farmer or socially disadvan- to ensure a reasonable prospect of success in and, if applicable, a contracting credit coun- taged farmer. the farming operation proposed by the farm- seling service selected under section 3420(c). ‘‘SEC. 3108. BEGINNING FARMER AND SOCIALLY er; ‘‘(b) LOAN TERMS.— DISADVANTAGED FARMER CON- ‘‘(2) in the case of a farmer that is an indi- ‘‘(1) PRINCIPAL.—Each loan made under TRACT LAND SALES PROGRAM. vidual, if the farmer is or proposes to become this section shall be in an amount that does ‘‘(a) IN GENERAL.—The Secretary shall, in an operator of a farm that is not larger than not exceed 45 percent of the lesser of— accordance with this section, guarantee a a family farm; ‘‘(A) the purchase price of the farm to be loan made by a private seller of a farm to a ‘‘(3) in the case of a farmer that is a coop- acquired; qualified beginning farmer or socially dis- erative, corporation, partnership, trust, lim- ‘‘(B) the appraised value of the farm to be advantaged farmer on a contract land sales ited liability company, joint operation, or acquired; or basis. other such legal entity as the Secretary de- ‘‘(C) $667,000. ‘‘(b) ELIGIBILITY.—To be eligible for a loan termines to be appropriate, with respect to ‘‘(2) INTEREST RATE.—The interest rate on guarantee under subsection (a)— the entity and each farm in which the entity any loan made by the Secretary under this ‘‘(1) the qualified beginning farmer or so- has an ownership or operator interest— section shall be a rate equal to the greater cially disadvantaged farmer shall— ‘‘(A) if— of— ‘‘(A) on the date the contract land sale ‘‘(i) a majority interest is held by individ- ‘‘(A) the difference between— that is subject of the loan is complete, own uals who are related by blood or marriage, as ‘‘(i) 4 percent; and and operate the farm that is the subject of defined by the Secretary; ‘‘(ii) the interest rate for farm ownership the contract land sale; ‘‘(ii) all of the individuals are or propose to loans under this chapter; or ‘‘(B) have a credit history that— become owners or operators of a farm that is ‘‘(B) 1.5 percent. ‘‘(i) includes a record of satisfactory debt not larger than a family farm; and ‘‘(3) DURATION.—Each loan under this sec- repayment, as determined by the Secretary; ‘‘(iii) at least 1 of the individuals is or pro- tion shall be made for a period of 20 years or and poses to become an operator of the farm; or less, at the option of the borrower. ‘‘(ii) is acceptable to the Secretary; and ‘‘(B) if— ‘‘(4) REPAYMENT.—Each borrower of a loan ‘‘(C) demonstrate to the Secretary that the ‘‘(i) the entire interest is held by individ- under this section shall repay the loan to the farmer is unable to obtain sufficient credit uals who are related by blood or marriage, as Secretary in equal annual installments. without a guarantee to finance any actual defined by the Secretary; ‘‘(5) NATURE OF RETAINED SECURITY INTER- need of the farmer at a reasonable rate or ‘‘(ii) all of the individuals are or propose to EST.—The Secretary shall retain an interest term; and become farm operators; and in each farm acquired with a loan made ‘‘(2) the loan shall meet applicable under- ‘‘(iii) the ownership interest of each indi- under this section that shall— writing criteria, as determined by the Sec- vidual separately constitutes not larger than ‘‘(A) be secured by the farm; retary. a family farm, even if the ownership inter- ‘‘(B) be junior only to such interests in the ‘‘(c) LIMITATIONS.—The Secretary shall not ests of the individuals collectively con- farm as may be conveyed at the time of ac- provide a loan guarantee under subsection stitute larger than a family farm; quisition to the person (including a lender) (a) if— ‘‘(4) in the case of an operator described in from whom the borrower obtained a loan ‘‘(1) the contribution of the qualified be- paragraph (3) that is owned, in whole or in used to acquire the farm; and ginning farmer or socially disadvantaged part by 1 or more other entities, if not less ‘‘(C) require the borrower to obtain the farmer to the down payment for the farm than 75 percent of the ownership interests of permission of the Secretary before the bor- that is the subject of the contract land sale each other entity is owned directly or indi- rower may grant an additional security in- would be less than 5 percent of the purchase rectly by 1 or more individuals who own the terest in the farm. price of the farm; or family farm; and ‘‘(c) LIMITATIONS.— ‘‘(2) the purchase price or the appraisal ‘‘(5) if the farmer and each individual that ‘‘(1) BORROWERS REQUIRED TO MAKE MIN- value of the farm that is the subject of the holds a majority interest in the farmer is un- IMUM DOWN PAYMENT.—The Secretary shall contract land sale is greater than $500,000. not make a loan under this section to any able to obtain credit elsewhere. ‘‘(d) PERIOD OF GUARANTEE.—A loan guar- ‘‘(c) DIRECT LOANS.— borrower with respect to a farm if the con- antee under this section shall be in effect for tribution of the borrower to the down pay- ‘‘(1) IN GENERAL.—Subject to paragraph (3), the 10-year period beginning on the date on the Secretary may make a direct loan under ment on the farm will be less than 5 percent which the guarantee is provided. of the purchase price of the farm. this chapter only to a farmer who— ‘‘(e) GUARANTEE PLAN.— ‘‘(2) PROHIBITED TYPES OF FINANCING.—The ‘‘(A) is a qualified beginning farmer; ‘‘(1) SELECTION OF PLAN.—A private seller ‘‘(B) has not received a previous direct op- Secretary shall not make a loan under this of a farm who makes a loan guaranteed by erating loan made under this chapter; or section with respect to a farm if the farm is the Secretary under subsection (a) may se- ‘‘(C) has not received a direct operating to be acquired with other financing that con- lect— loan made under this chapter for a total of 7 tains any of the following conditions: ‘‘(A) a prompt payment guarantee plan, years, less 1 year for every 3 consecutive ‘‘(A) The financing is to be amortized over which shall cover— years the farmer did not receive a direct op- a period of less than 30 years. ‘‘(i) 3 amortized annual installments; or erating loan after the year in which the bor- ‘‘(B) A balloon payment will be due on the ‘‘(ii) an amount equal to 3 annual install- rower initially received a direct operating financing during the 20-year period begin- ments (including an amount equal to the loan under this chapter, as determined by ning on the date on which the loan is to be total cost of any tax and insurance incurred the Secretary. made by the Secretary. during the period covered by the annual in- ‘‘(d) ADMINISTRATION.—In carrying out this ‘‘(2) YOUTH LOANS.—In this subsection, the stallments); or section, the Secretary shall, to the max- term ‘direct operating loan’ shall not include ‘‘(B) a standard guarantee plan, which imum extent practicable— a loan made to a youth under subsection (d). shall cover an amount equal to 90 percent of ‘‘(1) facilitate the transfer of farms from ‘‘(3) TRANSITION RULE.—If, as of April 4, the outstanding principal of the loan. retiring farmers to persons eligible for in- 1996, a farmer has received a direct operating ‘‘(2) ELIGIBILITY FOR STANDARD GUARANTEE sured loans under this subtitle; loan under this chapter during each of 4 or PLAN.—To be eligible for a standard guar- ‘‘(2) make efforts to widely publicize the more previous years, the borrower shall be antee plan referred to in paragraph (1)(B), a availability of loans under this section eligible to receive a direct operating loan private seller shall— among— under this chapter during 3 additional years ‘‘(A) secure a commercial lending institu- ‘‘(A) potentially eligible recipients of the after April 4, 1996. tion or similar entity, as determined by the loans; ‘‘(4) WAIVERS.— Secretary, to serve as an escrow agent; or ‘‘(B) retiring farmers; and ‘‘(A) FARM OPERATIONS ON TRIBAL LAND.— ‘‘(B) in cooperation with the farmer, use an ‘‘(C) applicants for farm ownership loans The Secretary shall waive the limitation appropriate alternate arrangement, as deter- under this chapter; under paragraph (1)(C) or (3) for a direct loan mined by the Secretary. ‘‘(3) encourage retiring farmers to assist in made under this chapter to a farmer whose the sale of their farms to qualified beginning ‘‘CHAPTER 2—OPERATING LOANS farm land is subject to the jurisdiction of an farmers and socially disadvantaged farmers ‘‘SEC. 3201. OPERATING LOANS. Indian tribe and whose loan is secured by 1 providing seller financing; ‘‘(a) IN GENERAL.—The Secretary may or more security instruments that are sub- ‘‘(4) coordinate the loan program estab- make or guarantee an operating loan under ject to the jurisdiction of an Indian tribe if lished by this section with State programs this chapter to an eligible farmer in the the Secretary determines that commercial that provide farm ownership or operating United States. credit is not generally available for such loans for beginning farmers or socially dis- ‘‘(b) ELIGIBILITY.—A farmer shall be eligi- farm operations. advantaged farmers; and ble under subsection (a) only— ‘‘(B) OTHER FARM OPERATIONS.—On a case- ‘‘(5) establish annual performance goals to ‘‘(1) if the farmer, or an individual holding by-case determination not subject to admin- promote the use of the down payment loan a majority interest in the farmer— istrative appeal, the Secretary may grant a program and other joint financing arrange- ‘‘(A) is a citizen of the United States; and borrower a waiver, 1 time only for a period of ments as the preferred choice for direct real ‘‘(B) has training or farming experience 2 years, of the limitation under paragraph estate loans made by any lender to a quali- that the Secretary determines is sufficient (1)(C) or (3) for a direct operating loan if the

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4526 CONGRESSIONAL RECORD — SENATE June 25, 2012 borrower demonstrates to the satisfaction of determines necessary to expedite any appli- under a plan approved under section 18 of the Secretary that— cation submitted under the program. that Act (29 U.S.C. 667), if the Secretary de- ‘‘(i) the borrower has a viable farm oper- ‘‘(6) PAPERWORK REDUCTION.—The Sec- termines that without assistance under this ation; retary shall take measures to reduce any pa- paragraph the farmer is likely to suffer sub- ‘‘(ii) the borrower applied for commercial perwork requirements for loans under the stantial economic injury due to compliance credit from at least 2 commercial lenders; program. with the standard; ‘‘(iii) the borrower was unable to obtain a ‘‘(7) PROGRAM INTEGRITY.—The Secretary ‘‘(8) to train a borrower under section 3419; commercial loan (including a loan guaran- shall take such actions as are necessary to or teed by the Secretary); and ensure the integrity of the program estab- ‘‘(9) to provide other farm or home needs, ‘‘(iv) the borrower successfully has com- lished under this subsection. including family subsistence. pleted, or will complete within 1 year, bor- ‘‘(8) MAXIMUM AMOUNT.—Of funds that are ‘‘(c) HAZARD INSURANCE REQUIREMENT.— rower training under section 3419 (from made available to carry out this chapter, the The Secretary may not make a loan to a which requirement the Secretary shall not Secretary shall use to carry out this sub- farmer under this chapter unless the farmer grant a waiver under section 3419(f)). section a total amount of not more than has, or agrees to obtain, hazard insurance on ‘‘(d) YOUTH LOANS.— $500,000. the property to be acquired with the loan. ‘‘(1) IN GENERAL.—Notwithstanding sub- ‘‘(9) REPORT.—Not later than 180 days after ‘‘(d) PRIVATE RESERVE.— section (b), except for citizenship and credit the maximum amount of funds are used to ‘‘(1) IN GENERAL.—Notwithstanding any requirements, a loan may be made under this carry out this subsection under paragraph other provision of this title, the Secretary chapter to a youth who is a rural resident to (8), the Secretary shall submit to the Com- may reserve a portion of any loan made enable the youth to operate an enterprise in mittee on Agriculture of the House of Rep- under this chapter to be placed in an unsu- connection with the participation in a youth resentatives and the Committee on Agri- pervised bank account that may be used at organization, as determined by the Sec- culture, Nutrition, and Forestry of the Sen- the discretion of the borrower for the basic retary. ate a report that describes the results of the family needs of the borrower and the imme- ‘‘(2) FULL PERSONAL LIABILITY.—A youth pilot program and the feasibility of expand- diate family of the borrower. receiving a loan under this subsection who ing the program. ‘‘(2) LIMIT ON SIZE OF THE RESERVE.—The executes a promissory note for the loan shall ‘‘SEC. 3202. PURPOSES OF LOANS. size of the reserve shall not exceed the lesser incur full personal liability for the indebted- ‘‘(a) DIRECT LOANS.—A direct loan may be of— ness evidenced by the note, in accordance made under this chapter only— ‘‘(A) 10 percent of the loan; with the terms of the note, free of any dis- ‘‘(1) to pay the costs incident to reorga- ‘‘(B) $5,000; or ability of minority. nizing a farm for more profitable operation; ‘‘(C) the amount needed to provide for the ‘‘(3) COSIGNER.—The Secretary may accept ‘‘(2) to purchase livestock, poultry, or farm basic family needs of the borrower and the the personal liability of a cosigner of a prom- equipment; immediate family of the borrower for 3 cal- issory note for a loan under this subsection, ‘‘(3) to purchase feed, seed, fertilizer, insec- endar months. in addition to the personal liability of the ticide, or farm supplies, or to meet other es- ‘‘SEC. 3203. RESTRICTIONS ON LOANS. youth borrower. sential farm operating expenses, including ‘‘(a) REQUIREMENTS.— ‘‘(4) YOUTH ENTERPRISES NOT FARMING.— cash rent; ‘‘(1) IN GENERAL.—The Secretary may not The operation of an enterprise by a youth ‘‘(4) to finance land or water development, make or guarantee a loan under this chap- under this subsection shall not be considered use, or conservation; ter— the operation of a farm under this subtitle. ‘‘(5) to pay loan closing costs; ‘‘(A) that would cause the total principal ‘‘(e) PILOT LOAN PROGRAM TO SUPPORT ‘‘(6) to assist a farmer in changing the indebtedness outstanding at any 1 time for HEALTHY FOODS FOR THE HUNGRY.— equipment, facilities, or methods of oper- loans made under this chapter to any 1 bor- ‘‘(1) DEFINITION OF GLEANER.—In this sub- ation of a farm to comply with a standard rower to exceed— section, the term ‘gleaner’ means an entity promulgated under section 6 of the Occupa- ‘‘(i)(I) in the case of a loan made by the that— tional Safety and Health Act of 1970 (29 Secretary, $300,000; or ‘‘(A) collects edible, surplus food that U.S.C. 655) or a standard adopted by a State ‘‘(II) in the case of a loan guaranteed by would be thrown away and distributes the under a plan approved under section 18 of the Secretary, $700,000 (as modified under food to agencies or nonprofit organizations that Act (29 U.S.C. 667), if the Secretary de- paragraph (2)); or that feed the hungry; or termines that without assistance under this ‘‘(B) for the purchasing or leasing of land ‘‘(B) harvests for free distribution to the paragraph the farmer is likely to suffer sub- other than for cash rent, or for carrying on needy, or for donation to agencies or non- stantial economic injury in complying with a land leasing or land purchasing program. profit organizations for ultimate distribu- the standard; ‘‘(2) MODIFICATION.—The amount specified tion to the needy, an agricultural crop that ‘‘(7) to train a limited-resource borrower in paragraph (1)(A)(ii) shall be— has been donated by the owner of the crop. receiving a loan under section 3106 in main- ‘‘(A) increased, beginning with fiscal year ‘‘(2) PROGRAM.—Not later than 180 days taining records of farming operations; 2000, by the inflation percentage applicable after the date of enactment of this sub- ‘‘(8) to train a borrower under section 3419; to the fiscal year in which the loan is guar- section, the Secretary shall establish, within ‘‘(9) to refinance the indebtedness of a bor- anteed; and the operating loan program established rower, if the borrower— ‘‘(B) reduced by the unpaid indebtedness of under this chapter, a pilot program under ‘‘(A) has refinanced a loan under this chap- the borrower on loans under sections speci- which the Secretary makes loans available ter not more than 4 times previously; and fied in section 3104 that are guaranteed by to eligible entities to assist the entities in ‘‘(B)(i) is a direct loan borrower under this the Secretary. providing food to the hungry. title at the time of the refinancing and has ‘‘(b) INFLATION PERCENTAGE.—For purposes ‘‘(3) ELIGIBILITY.—In addition to any other suffered a qualifying loss because of a nat- of this section, the inflation percentage ap- person eligible under the terms and condi- ural or major disaster or emergency; or plicable to a fiscal year is the percentage (if tions of the operating loan program estab- ‘‘(ii) is refinancing a debt obtained from a any) by which— lished under this chapter, gleaners shall be creditor other than the Secretary; or ‘‘(1) the average of the Prices Paid By eligible to receive loans under this sub- ‘‘(10) to provide other farm or home needs, Farmers Index (as compiled by the National section. including family subsistence. Agricultural Statistics Service of the De- ‘‘(4) LOAN AMOUNT.— ‘‘(b) GUARANTEED LOANS.—A loan may be partment) for the 12-month period ending on ‘‘(A) IN GENERAL.—Each loan issued under guaranteed under this chapter only— August 31 of the immediately preceding fis- the program shall be in an amount of not ‘‘(1) to pay the costs incident to reorga- cal year; exceeds less than $500 and not more than $5,000. nizing a farm for more profitable operation; ‘‘(2) the average of that index (as so de- ‘‘(B) REDISTRIBUTION.—If the eligible re- ‘‘(2) to purchase livestock, poultry, or farm fined) for the 12-month period ending on Au- cipients in a State do not use the full alloca- equipment; gust 31, 1996. tion of loans that are available to eligible re- ‘‘(3) to purchase feed, seed, fertilizer, insec- ‘‘SEC. 3204. TERMS OF LOANS. cipients in the State under this subsection, ticide, or farm supplies, or to meet other es- ‘‘(a) PERSONAL LIABILITY.—A borrower of a the Secretary may use any unused amounts sential farm operating expenses, including loan made under this chapter shall secure to make loans available to eligible entities cash rent; the loan with the full personal liability of in other States in accordance with this sub- ‘‘(4) to finance land or water development, the borrower and such other security as the section. use, or conservation; Secretary may prescribe. ‘‘(5) LOAN PROCESSING.— ‘‘(5) to refinance indebtedness; ‘‘(b) INTEREST RATES.— ‘‘(A) IN GENERAL.—The Secretary shall ‘‘(6) to pay loan closing costs; ‘‘(1) MAXIMUM RATE.— process any loan application submitted ‘‘(7) to assist a farmer in changing the ‘‘(A) IN GENERAL.—Except as provided in under the program not later than 30 days equipment, facilities, or methods of oper- paragraphs (2) and (3), the interest rate on a after the date on which the application was ation of a farm to comply with a standard loan made under this chapter (other than a submitted. promulgated under section 6 of the Occupa- guaranteed loan) shall be determined by the ‘‘(B) EXPEDITING APPLICATIONS.—The Sec- tional Safety and Health Act of 1970 (29 Secretary at a rate not to exceed the sum ob- retary shall take any measure the Secretary U.S.C. 655) or a standard adopted by a State tained by adding—

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4527 ‘‘(i) the current average market yield on ‘‘(A) in the case of a loan for a purpose declaration of the intent of Congress con- outstanding marketable obligations of the under chapter 1, an owner, operator, or les- tained in section 102(a) of the Food and Agri- United States with remaining periods to ma- see-operator described in section 3101(b)(2); culture Act of 1977 (7 U.S.C. 2266(a)). turity comparable to the average maturity and ‘‘SEC. 3302. PURPOSES OF LOANS. of the loan; and ‘‘(B) in the case of a loan for a purpose ‘‘Subject to the limitations on the ‘‘(ii) an additional charge not to exceed 1 under chapter 2, an operator of a farm that amounts of loans provided in section 3303(a), percent, as determined by the Secretary. is not larger than a family farm; a loan may be made or guaranteed under this ‘‘(B) ADJUSTMENT.—The sum obtained ‘‘(3) in the case of a farmer that is a coop- chapter for— under subparagraph (A) shall be adjusted to erative, corporation, partnership, trust, lim- ‘‘(1) any purpose authorized for a loan the nearest 1⁄8 of 1 percent. ited liability company, joint operation, or under chapter 1 or 2; and ‘‘(2) GUARANTEED LOAN.—The interest rate such other legal entity as the Secretary de- ‘‘(2) crop or livestock purposes that are— on a guaranteed loan made under this chap- termines to be appropriate, with respect to ‘‘(A) necessitated by a quarantine, natural ter shall be such rate as may be agreed on by the entity and each farm in which the entity disaster, major disaster, or emergency; and the borrower and the lender, but may not ex- has an ownership or operator interest— ‘‘(B) considered desirable by the farmer. ceed any rate prescribed by the Secretary. ‘‘(A) if— ‘‘SEC. 3303. TERMS OF LOANS. ‘‘(3) LOW INCOME LOAN.—The interest rate ‘‘(i) a majority interest is held by individ- ‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Sec- on a direct loan made under this chapter to uals who are related by blood or marriage, as retary may not make or guarantee a loan a low-income, limited-resource borrower defined by the Secretary; under this chapter to a borrower who has shall be determined by the Secretary at a ‘‘(ii) all of the individuals are or propose to suffered a loss in an amount that— rate that is not— become owners or operators of a farm that is ‘‘(1) exceeds the actual loss caused by a dis- ‘‘(A) greater than the sum obtained by add- not larger than a family farm; and aster; or ing— ‘‘(iii) at least 1 of the individuals is or pro- ‘‘(2) would cause the total indebtedness of ‘‘(i) an amount that does not exceed 1⁄2 of poses to become an operator of the farm; or the borrower under this chapter to exceed the current average market yield on out- ‘‘(B) if— $500,000. standing marketable obligations of the ‘‘(i) the entire interest is held by individ- ‘‘(b) INTEREST RATES.—Any portion of a United States with a maturity of 5 years; uals who are related by blood or marriage, as loan under this chapter up to the amount of and defined by the Secretary; the actual loss suffered by a farmer caused ‘‘(ii) an amount not to exceed 1 percent per ‘‘(ii) all of the individuals are or propose to by a disaster shall be at a rate prescribed by year, as the Secretary determines is appro- become farm operators; and the Secretary, but not in excess of 8 percent priate; or ‘‘(iii) the ownership interest of each indi- per annum. ‘‘(B) less than 5 percent per year. vidual separately constitutes not larger than ‘‘(c) INTEREST SUBSIDIES FOR GUARANTEED ‘‘(c) PERIOD FOR REPAYMENT.—The period a family farm, even if the ownership inter- LOANS.—In the case of a guaranteed loan for repayment of a loan made under this ests of the individuals collectively con- under this chapter, the Secretary may pay chapter may not exceed 7 years. stitute larger than a family farm; ‘‘(d) LINE-OF-CREDIT LOANS.— an interest subsidy to the lender for any por- ‘‘(4) if the entity is owned, in whole or in ‘‘(1) IN GENERAL.—A loan made or guaran- tion of the loan up to the amount of the ac- part, by 1 or more other entities and each in- teed by the Secretary under this chapter tual loss suffered by a farmer caused by a dividual who is an owner of the family farm may be in the form of a line-of-credit loan. disaster. involved has a direct or indirect ownership ‘‘(2) TERM.—A line-of-credit loan under ‘‘(d) TIME FOR REPAYMENT.— interest in each of the other entities; paragraph (1) shall terminate not later than ‘‘(1) IN GENERAL.—Subject to paragraph (2), 5 years after the date that the loan is made ‘‘(5) if the farmer and any individual that a loan under this chapter shall be repayable or guaranteed. holds a majority interest in the farmer is un- at such times as the Secretary may deter- able to obtain credit elsewhere; and ‘‘(3) ELIGIBILITY.—For purposes of determine, considering the purpose of the loan mining eligibility for an operating loan ‘‘(6)(A) if the Secretary finds that the oper- and the nature and effect of the disaster, but under this chapter, each year during which a ations of the farmer have been substantially not later than the maximum repayment pe- farmer takes an advance or draws on a line- affected by— riod allowed for a loan for a similar purpose of-credit loan the farmer shall be considered ‘‘(i) a natural or major disaster or emer- under chapters 1 and 2. gency designated by the President under the as having received an operating loan for 1 ‘‘(2) EXTENDED REPAYMENT PERIOD.—The year. Robert T. Stafford Disaster Relief and Emer- Secretary may, if the loan is for a purpose ‘‘(4) TERMINATION OF DELINQUENT LOANS.—If gency Assistance Act (42 U.S.C. 5121 et seq.); described in chapter 2 and the Secretary de- a borrower does not pay an installment on a or termines that the need of the loan applicant line-of-credit loan on schedule, the borrower ‘‘(ii) a quarantine imposed by the Sec- justifies the longer repayment period, make may not take an advance or draw on the retary under the Plant Protection Act (7 the loan repayable at the end of a period of line-of-credit, unless the Secretary deter- U.S.C. 7701 et seq.) or the Animal Health more than 7 years, but not more than 20 mines that— Protection Act (7 U.S.C. 8301 et seq.); or years. ‘‘(B) if the farmer conducts farming oper- ‘‘(A) the failure of the borrower to pay on ‘‘(e) SECURITY FOR LOAN.— ations in a county or a county contiguous to schedule was due to unusual conditions that ‘‘(1) IN GENERAL.—A borrower of a loan the borrower could not control; and a county in which the Secretary has found made under this chapter shall secure the ‘‘(B) the borrower will reduce the line-of- that farming operations have been substan- loan with the full personal liability of the credit balance to the scheduled level at the tially affected by a natural or major disaster borrower and such other security as the Sec- end of— or emergency. retary may prescribe. ‘‘(c) TIME FOR ACCEPTING AN APPLICATION.— ‘‘(i) the production cycle; or ‘‘(2) ADEQUATE SECURITY.—Subject to para- The Secretary shall accept an application for ‘‘(ii) the marketing of the agricultural graph (3), the Secretary may not make or a loan under this chapter from a farmer at products of the borrower. any time during the 8-month period begin- guarantee a loan under this chapter unless ‘‘(5) AGRICULTURAL COMMODITIES.—A line- ning on the date that— the security for the loan is adequate to en- of-credit loan may be used to finance the ‘‘(1) the Secretary determines that farming sure repayment of the loan. production or marketing of an agricultural operations of the farmer have been substan- ‘‘(3) INADEQUATE SECURITY DUE TO DIS- commodity that is eligible for a price sup- tially affected by— ASTER.—If adequate security for a loan under port program of the Department. ‘‘(A) a quarantine imposed by the Sec- this chapter is not available because of a dis- ‘‘CHAPTER 3—EMERGENCY LOANS retary under the Plant Protection Act (7 aster, the Secretary shall accept as security ‘‘SEC. 3301. EMERGENCY LOANS. U.S.C. 7701 et seq.) or the Animal Health any collateral that is available if the Sec- ‘‘(a) IN GENERAL.—The Secretary shall Protection Act (7 U.S.C. 8301 et seq.); or retary is confident that the collateral and make or guarantee an emergency loan under ‘‘(B) a natural disaster; or the repayment ability of the farmer are ade- this chapter to an eligible farmer (including ‘‘(2) the President makes a major disaster quate security for the loan. a commercial fisherman) only to the extent or emergency designation with respect to the ‘‘(4) VALUATION OF FARM ASSETS.—If a farm and in such amounts as provided in advance affected county of the farmer referred to in asset (including land, livestock, or equip- in appropriation Acts. subsection (b)(5)(B). ment) is used as collateral to secure a loan ‘‘(b) ELIGIBILITY.—An established farmer ‘‘(d) HAZARD INSURANCE REQUIREMENT.— applied for under this chapter and the gov- shall be eligible under subsection (a) only— The Secretary may not make a loan to a ernor of the State in which the farm is lo- ‘‘(1) if the farmer or an individual holding farmer under this chapter to cover a prop- cated requests assistance under this chapter a majority interest in the farmer— erty loss unless the farmer had hazard insur- or the Robert T. Stafford Disaster Relief and ‘‘(A) is a citizen of the United States; and ance that insured the property at the time of Emergency Assistance Act (42 U.S.C. 5121 et ‘‘(B) has experience and resources that the the loss. seq.) for the portion of the State in which Secretary determines are sufficient to en- ‘‘(e) FAMILY FARM.—The Secretary shall the asset is located, the Secretary shall es- sure a reasonable prospect of success in the conduct the loan program under this chapter tablish the value of the asset as of the day farming operation proposed by the farmer; in a manner that will foster and encourage before the occurrence of the natural or major ‘‘(2) in the case of a farmer that is an indi- the family farm system of agriculture, con- disaster or emergency. vidual, if the farmer is— sistent with the reaffirmation of policy and ‘‘(f) REVIEW OF LOAN.—

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‘‘(1) IN GENERAL.—In the case of a loan ‘‘(2) in the case of a loan that is used for ‘‘(4) provide any relevant forms, including made, but not guaranteed, under section multiple purposes, the portion of the loan applicable response forms; 3301, the Secretary shall review the loan 3 that refinances the principal and interest ‘‘(5) advise the borrower that a copy of reg- years after the loan is made, and every 2 due on a direct loan made under this subtitle ulations is available on request; and years thereafter for the term of the loan. that is outstanding on the date the loan is ‘‘(6) be designed to be readable and under- ‘‘(2) TERMINATION OF FEDERAL ASSIST- guaranteed. standable by the borrower. ANCE.—If, based on a review under paragraph ‘‘(f) BEGINNING FARMER LOANS GUARANTEED ‘‘(c) CONTAINED IN REGULATIONS.—All no- (1), the Secretary determines that the bor- UPTO95 PERCENT.—The Secretary may guar- tices required by this section shall be con- rower is able to obtain a loan from a non- antee not more than 95 percent of— tained in the regulations issued to carry out Federal source at reasonable rates and ‘‘(1) a farm ownership loan for acquiring a this title. terms, the borrower shall, on request by the farm to a borrower who is participating in ‘‘(d) TIMING.—The notice described in sub- Secretary, apply for, and accept, a non-Fed- the downpayment loan program under sec- section (b) shall be provided— eral loan in a sufficient amount to repay the tion 3107; or ‘‘(1) at the time an application is made for Secretary. ‘‘(2) an operating loan to a borrower who is participation in a loan service program; ‘‘SEC. 3304. PRODUCTION LOSSES. participating in the downpayment loan pro- ‘‘(2) on written request of the borrower; and ‘‘(a) IN GENERAL.—The Secretary shall gram under section 3107 that is made during make or guarantee a loan under this chapter the period that the borrower has a direct ‘‘(3) before the earliest of the date of— to an eligible farmer for production losses if loan outstanding under chapter 1 for acquir- ‘‘(A) initiating any liquidation; a single enterprise that constitutes a basic ing a farm. ‘‘(B) requesting the conveyance of security part of the farming operation of the farmer ‘‘(g) GUARANTEE OF LOANS MADE UNDER property; has sustained at least a 30 percent loss in STATE BEGINNING FARMER PROGRAMS.—The ‘‘(C) accelerating the loan; normal per acre or per animal production, or Secretary may guarantee under this subtitle ‘‘(D) repossessing property; such lesser percentage as the Secretary may a loan made under a State beginning farmer ‘‘(E) foreclosing on property; or determine, as a result of a disaster. program, including a loan financed by the ‘‘(F) taking any other collection action. ‘‘(e) CONSIDERATION OF BORROWERS FOR ‘‘(b) BASIS FOR PERCENTAGE.—A percentage net proceeds of a qualified small issue agri- LOAN SERVICE PROGRAMS.— loss under subsection (a) shall be based on cultural bond for land or property described ‘‘(1) IN GENERAL.—The Secretary shall con- the average monthly price in effect for the in section 144(a)(12)(B)(ii) of the Internal sider a farmer program loan borrower for all previous crop or calendar year, as appro- Revenue Code of 1986. loan service programs if, not later than 60 priate. ‘‘SEC. 3403. PROVISION OF INFORMATION TO BOR- days after receipt of the notice described in ‘‘(c) AMOUNT OF LOAN.—A loan under sub- ROWERS. subsection (b), the borrower requests the section (a) shall be in an amount that is ‘‘(a) APPROVAL NOTIFICATION.—The Sec- consideration in writing. equal to 80 percent, or such greater percent- retary shall approve or disapprove an appli- ‘‘(2) PRIORITY.—In considering a borrower age as the Secretary may determine, of the cation for a loan or loan guarantee made for a loan service program, the Secretary total calculated actual production loss sus- under this subtitle, and notify the applicant shall place the highest priority on the pres- tained by the farmer. of such action, not later than 60 days after ervation of the farming operations of the the date on which the Secretary has received ‘‘CHAPTER 4—GENERAL FARMER LOAN borrower. PROVISIONS a complete application for the loan or loan guarantee. ‘‘SEC. 3405. PLANTING AND PRODUCTION HIS- ‘‘SEC. 3401. AGRICULTURAL CREDIT INSURANCE TORY GUIDELINES. ‘‘(b) LIST OF LENDERS.—The Secretary FUND. ‘‘(a) IN GENERAL.—The Secretary shall en- ‘‘The fund established pursuant to section shall make available to any farmer, on re- sure that appropriate procedures, including, 11(a) of the Bankhead-Jones Farm Tenant quest, a list of lenders in the area that par- to the extent practicable, onsite inspections, Act (60 Stat. 1075, chapter 964) shall be ticipate in guaranteed farmer program loan or use of county or State yield averages, are known as the Agricultural Credit Insurance programs established under this subtitle, and used in calculating future yields for an appli- Fund (referred to in this section as the other lenders in the area that express a de- cant for a loan, when an accurate projection ‘Fund’, unless the context otherwise re- sire to participate in the programs and that cannot be made because the past production quires) for the discharge of the obligations of request inclusion on the list. history of the farmer has been affected by a the Secretary under agreements insuring ‘‘(c) OTHER INFORMATION.— natural or major disaster or emergency. loans under this subtitle and loans and mort- ‘‘(1) IN GENERAL.—On the request of a bor- ‘‘(b) CALCULATION OF YIELDS.— gages insured under prior authority. rower, the Secretary shall make available to ‘‘(1) IN GENERAL.—For the purpose of aver- ‘‘SEC. 3402. GUARANTEED FARMER LOANS. the borrower— aging the past yields of the farm of a farmer ‘‘(a) IN GENERAL.—The Secretary may pro- ‘‘(A) a copy of each document signed by the over a period of crop years to calculate the vide financial assistance to a borrower for a borrower; future yield of the farm under this title, the purpose provided in this subtitle by guaran- ‘‘(B) a copy of each appraisal performed Secretary shall permit the farmer to exclude teeing a loan made by any Federal or State with respect to the loan; and the crop year with the lowest actual or coun- chartered bank, savings and loan associa- ‘‘(C) any document that the Secretary is ty average yield for the farm from the cal- tion, cooperative lending agency, or other le- required to provide to the borrower under culation, if the farmer was affected by a nat- gally organized lending agency. any law in effect on the date of the request. ural or major disaster or emergency during ‘‘(b) INTEREST RATE.—The interest rate ‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) at least 2 of the crop years during the period. payable by a borrower on the portion of a shall not supersede any duty imposed on the ‘‘(2) AFFECTED BY A NATURAL OR MAJOR DIS- guaranteed loan that is sold by a lender to Secretary by a law in effect on January 5, ASTER OR EMERGENCY.—A farmer was affected the secondary market under this subtitle 1988, unless the duty directly conflicts with a by a natural or major disaster or emergency may be lower than the interest rate charged duty under paragraph (1). under paragraph (1) if the Secretary finds on the portion retained by the lender, but ‘‘SEC. 3404. NOTICE OF LOAN SERVICE PRO- that the farming operations of the farmer shall not exceed the average interest rate GRAMS. have been substantially affected by a natural charged by the lender on loans made to farm ‘‘(a) REQUIREMENT.—The Secretary shall or major disaster or emergency, including a borrowers. provide notice by certified mail to each bor- farmer who has a qualifying loss but is not ‘‘(c) FEES.—In the case of a loan guarantee rower who is at least 90 days past due on the located in a designated or declared disaster on a loan made by a commercial or coopera- payment of principal or interest on a loan area. tive lender related to a loan made by the made under this subtitle. ‘‘(3) APPLICATION OF SUBSECTION.—This sub- Secretary under section 3107— ‘‘(b) CONTENTS.—The notice required under section shall apply to any action taken by ‘‘(1) the Secretary shall not charge a fee to subsection (a) shall— the Secretary that involves— any person (including a lender); and ‘‘(1) include a summary of all primary loan ‘‘(A) a loan under chapter 1 or 2; and ‘‘(2) a lender may charge a loan origination service programs, homestead retention pro- ‘‘(B) the yield of a farm of a farmer, includ- and servicing fee in an amount not to exceed grams, debt settlement programs, and appeal ing making a loan or loan guarantee, serv- 1 percent of the amount of the loan. procedures, including the eligibility criteria, icing a loan, or making a credit sale. ‘‘(d) MAXIMUM GUARANTEE OF 90 PERCENT.— and terms and conditions of the programs ‘‘SEC. 3406. SPECIAL CONDITIONS AND LIMITA- Except as provided in subsections (e) and (f), and procedures; TIONS ON LOANS. a loan guarantee under this subtitle shall be ‘‘(2) include a summary of the manner in ‘‘(a) APPLICANT REQUIREMENTS.—In connec- for not more than 90 percent of the principal which the borrower may apply, and be con- tion with a loan made or guaranteed under and interest due on the loan. sidered, for all such programs, except that this subtitle, the Secretary shall require— ‘‘(e) REFINANCED LOANS GUARANTEED AT 95 the Secretary shall not require the borrower ‘‘(1) the applicant— PERCENT.—The Secretary shall guarantee 95 to select among the programs or waive any ‘‘(A) to certify in writing that, and the percent of— right to be considered for any program car- Secretary shall determine whether, the ap- ‘‘(1) in the case of a loan that solely refi- ried out by the Secretary; plicant is unable to obtain credit elsewhere; nances a direct loan made under this sub- ‘‘(3) advise the borrower regarding all fil- and title, the principal and interest due on the ing requirements and any deadlines that ‘‘(B) to furnish an appropriate written fi- loan on the date of the refinancing; or must be met for requesting loan servicing; nancial statement;

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‘‘(2) except for a guaranteed loan, an agree- ‘‘(D) REPORT TO CONGRESS.—Each month, ‘‘(A) IN GENERAL.—In accordance with sec- ment by the borrower that if at any time it the Secretary shall notify the Committee on tion 3422, the Secretary shall prepare a pro- appears to the Secretary that the borrower Agriculture of the House of Representatives spectus on each seasoned direct loan bor- may be able to obtain a loan from a produc- and the Committee on Agriculture, Nutri- rower determined eligible to obtain a guar- tion credit association, a Federal land bank, tion, and Forestry of the Senate, on a State- anteed loan. or other responsible cooperative or private by-State basis, as to each application for an ‘‘(B) REQUIREMENTS.—The prospectus shall credit source (or, in the case of a borrower operating loan or loan guarantee on which contain a description of the amounts of the under section 3106, the borrower may be able final action had not been taken within 60 loan guarantee and interest assistance that to obtain a loan under section 3101), at rea- calendar days after receipt by the Secretary, the Secretary will provide to the seasoned sonable rates and terms for loans for similar and the reasons for which final action had direct loan borrower to enable the seasoned purposes and periods of time, the borrower not been taken. direct loan borrower to carry out a finan- will, on request by the Secretary, apply for ‘‘(3) DISAPPROVALS.— cially viable farming plan if a guaranteed and accept the loan in a sufficient amount to ‘‘(A) IN GENERAL.—If an application for a loan is made. repay the Secretary or the insured lender, or loan or loan guarantee under this subtitle is ‘‘(3) VERIFICATION.— both, and to pay for any stock necessary to disapproved by the Secretary, the Secretary ‘‘(A) IN GENERAL.—The Secretary shall pro- be purchased in a cooperative lending agency shall state the reasons for the disapproval in vide a prospectus of a seasoned direct loan in connection with the loan; the notice required under paragraph (1). borrower to each approved lender whose ‘‘(3) such provision for supervision of the ‘‘(B) DISAPPROVAL DUE TO LACK OF FUNDS.— lending area includes the location of the sea- operations of the borrower as the Secretary ‘‘(i) IN GENERAL.—Notwithstanding para- soned direct loan borrower. shall consider necessary to achieve the ob- graph (1), each application for a loan or loan ‘‘(B) NOTIFICATION.—The Secretary shall jectives of the loan and protect the interests guarantee under section 3601(e), or for a loan notify each borrower of a loan that a proof the United States; and under section 3501(a) or 3502(a), that is to be spectus has been provided to a lender under ‘‘(4) the application of a person who is a disapproved by the Secretary solely because subparagraph (A). veteran for a loan under chapter 1 or 2 to be the Secretary lacks the funds necessary to ‘‘(C) CREDIT EXTENDED.—If the Secretary given preference over a similar application make the loan or guarantee shall not be dis- receives an offer from an approved lender to from a person who is not a veteran if the ap- approved but shall be placed in pending sta- extend credit to the seasoned direct loan bor- plications are on file in a county or area of- tus. rower under terms and conditions contained fice at the same time. ‘‘(ii) RECONSIDERATION.—The Secretary in the prospectus, the seasoned direct loan GENCY PROCESSING REQUIREMENTS.— ‘‘(b) A shall retain each pending application and re- borrower shall not be eligible for a loan from ‘‘(1) NOTIFICATIONS.— consider the application beginning on the the Secretary under chapter 1 or 2, except as ‘‘(A) INCOMPLETE APPLICATION NOTIFICA- date that sufficient funds become available. otherwise provided in this section. TION.—If an application for a loan or loan ‘‘(iii) NOTIFICATION.—Not later than 60 days ‘‘(4) INSUFFICIENT ASSISTANCE OR OFFERS.— guarantee under this subtitle (other than an after funds become available regarding each If the Secretary is unable to provide loan operating loan or loan guarantee) is incom- pending application, the Secretary shall no- guarantees and, if necessary, interest assist- plete, the Secretary shall inform the appli- tify the applicant of the approval or dis- ance to the seasoned direct loan borrower cant of the reasons the application is incom- approval of funding for the application. under this section in amounts sufficient to plete not later than 20 days after the date on ‘‘(4) APPROVALS ON APPEAL.—If an applica- enable the seasoned direct loan borrower to which the Secretary has received the appli- tion for a loan or loan guarantee under this cation. borrow from commercial sources the amount subtitle is disapproved by the Secretary, but required to carry out a financially viable ‘‘(B) OPERATING LOANS.— that action is subsequently reversed or re- farming plan, or if the Secretary does not re- ‘‘(i) ADDITIONAL INFORMATION NEEDED.—Not later than 10 calendar days after the Sec- vised as the result of an appeal within the ceive an offer from an approved lender to ex- retary receives an application for an oper- Department or to the courts of the United tend credit to a seasoned direct loan bor- ating loan or loan guarantee, the Secretary States and the application is returned to the rower under the terms and conditions con- shall notify the applicant of any information Secretary for further consideration, the Sec- tained in the prospectus, the Secretary shall required before a decision may be made on retary shall act on the application and pro- make a loan to the seasoned direct loan bor- the application. vide the applicant with notice of the action rower under chapter 1 or 2, whichever is ap- ‘‘(ii) INFORMATION NOT RECEIVED.—If, not not later than 15 days after the date of re- plicable. later than 20 calendar days after the date a turn of the application to the Secretary. ‘‘(5) INTEREST RATE REDUCTIONS.—To the request is made pursuant to clause (i) with ‘‘(5) PROVISION OF PROCEEDS.— extent necessary for the borrower to obtain respect to an application, the Secretary has ‘‘(A) IN GENERAL.—Except as provided in a loan, guaranteed by the Secretary, from a not received the information requested, the subparagraph (B), if an application for an in- commercial or cooperative lender, the Sec- Secretary shall notify the applicant and the sured loan under this title is approved by the retary shall provide interest rate reductions district office of the Farm Service Agency, Secretary, the Secretary shall provide the as provided for under section 3413. in writing, of the outstanding information. loan proceeds to the applicant not later than ‘‘(b) TRANSITION TO PRIVATE COMMERCIAL ‘‘(C) REQUEST INFORMATION.— 15 days (or such longer period as the appli- OR OTHER SOURCES OF CREDIT.— ‘‘(i) IN GENERAL.—On receipt of an applica- cant may approve) after the application for ‘‘(1) IN GENERAL.—In making an operating tion, the Secretary shall request from other the loan is approved by the Secretary. or ownership loan, the Secretary shall estab- parties such information as may be needed in ‘‘(B) LACK OF FUNDS.—If the Secretary is lish a plan and promulgate regulations (in- connection with the application. unable to provide the loan proceeds to the cluding performance criteria) that promote ‘‘(ii) INFORMATION FROM AN AGENCY OF THE applicant during the 15-day period described the goal of transitioning borrowers to pri- DEPARTMENT.—Not later than 15 calendar in subparagraph (A) because sufficient funds vate commercial credit and other sources of days after the date on which an agency of are not available to the Secretary for that credit in the shortest period of time prac- the Department receives a request for infor- purpose, the Secretary shall provide the loan ticable. mation made pursuant to subparagraph (A), proceeds to the applicant as soon as prac- ‘‘(2) COORDINATION.—In carrying out this the agency shall provide the Secretary with ticable (but in no event later than 15 days section, the Secretary shall integrate and co- the requested information. unless the applicant agrees to a longer pe- ordinate the transition policy described in ‘‘(2) REPORT OF PENDING APPLICATIONS.— riod) after sufficient funds for that purpose subsection (a) with— ‘‘(A) IN GENERAL.—A county office shall no- become available to the Secretary. ‘‘(A) the borrower training program estab- tify the district office of the Farm Service ‘‘SEC. 3407. GRADUATION OF BORROWERS. lished by section 3419; Agency of each application for an operating ‘‘(a) GRADUATION OF SEASONED DIRECT ‘‘(B) the loan assessment process estab- loan or loan guarantee that is pending more LOAN BORROWERS TO THE LOAN GUARANTEE lished by section 3420; than 45 days after receipt, and the reasons PROGRAM.— ‘‘(C) the supervised credit requirement es- for which the application is pending. ‘‘(1) REVIEW OF LOANS.— tablished by section 3421; ‘‘(B) ACTION ON PENDING APPLICATIONS.—A ‘‘(A) IN GENERAL.—The Secretary, or a con- ‘‘(D) the market placement program estab- district office that receives a notice provided tracting third party, shall annually review lished by section 3422; and under subparagraph (A) with respect to an under section 3420 the loans of each seasoned ‘‘(E) other appropriate programs and au- application shall immediately take steps to direct loan borrower. thorities, as determined by the Secretary. ensure that final action is taken on the ap- ‘‘(B) ASSISTANCE.—If, based on the review, ‘‘(c) GRADUATION OF BORROWERS WITH OP- plication not later than 15 days after the it is determined that a borrower would be ERATING LOANS OR GUARANTEES TO PRIVATE date of the receipt of the notice. able to obtain a loan, guaranteed by the Sec- COMMERCIAL CREDIT.—The Secretary shall ‘‘(C) PENDING APPLICATION REPORT.—The retary, from a commercial or cooperative establish a plan, in coordination with activi- district office shall report to the State office lender at reasonable rates and terms for ties under sections 3419 through 3422, to en- of the Farm Service Agency on each applica- loans for similar purposes and periods of courage each borrower with an outstanding tion for an operating loan or loan guarantee time, the Secretary shall assist the borrower loan under this chapter, or with respect to that is pending more than 45 days after rein applying for the commercial or coopera- whom there is an outstanding guarantee ceipt, and the reasons for which the applica- tive loan. under this chapter, to graduate to private tion is pending. ‘‘(2) PROSPECTUS.— commercial or other sources of credit.

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‘‘SEC. 3408. DEBT ADJUSTMENT AND CREDIT ‘‘(ii) TERM.—The term of a lease or con- shall afford an opportunity to purchase or COUNSELING. tract to sell to a qualified beginning farmer lease the real property in accordance with ‘‘In carrying out this subtitle, the Sec- or a socially disadvantaged farmer under the order of priority established under sub- retary may— clause (i) shall be until the earlier of— paragraph (D) to the Indian tribe having ju- ‘‘(1) provide voluntary debt adjustment as- ‘‘(I) the date that is 18 months after the risdiction over the Indian reservation within sistance between— date of the lease or sale; or which the real property is located or, if no ‘‘(A) farmers; and ‘‘(II) the date that direct farm ownership order of priority is established by the Indian ‘‘(B) the creditors of the farmers; loan funds or credit sale authority for loans tribe under subparagraph (D), in the fol- ‘‘(2) cooperate with State, territorial, and becomes available to the qualified beginning lowing order: local agencies and committees engaged in farmer or socially disadvantaged farmer. ‘‘(i) An Indian member of the Indian tribe the debt adjustment; and ‘‘(iii) INCOME-PRODUCING CAPABILITY.—In that has jurisdiction over the reservation ‘‘(3) give credit counseling. determining the rental rate on real property within which the real property is located. ‘‘SEC. 3409. SECURITY SERVICING. leased under this subparagraph, the Sec- ‘‘(ii) An Indian corporate entity. retary shall consider the income-producing ‘‘(iii) The Indian tribe. ‘‘(a) SALE OF PROPERTY.— capability of the property during the term ‘‘(D) REVISION OF PRIORITY AND RESTRICTION ‘‘(1) IN GENERAL.—Subject to this subsection and subsection (e)(1), the Secretary that the property is leased. OF ELIGIBILITY.—The governing body of any ‘‘(5) EXPEDITED DETERMINATION.— Indian tribe having jurisdiction over an In- shall offer to sell real property that is ac- ‘‘(A) IN GENERAL.—On the request of an ap- dian reservation may revise the order of pri- quired by the Secretary under this subtitle plicant, not later than 30 days after denial of ority provided in subparagraph (C) under using the following order and method of sale: the application, the appropriate State direc- which land located within the reservation ‘‘(A) ADVERTISEMENT.—Not later than 15 tor shall provide an expedited review and de- shall be offered for purchase or lease by the days after acquiring real property, the Sec- termination of whether the applicant is a Secretary under subparagraph (C) and may retary shall publicly advertise the property qualified beginning farmer or a socially dis- restrict the eligibility for the purchase or for sale. advantaged farmer for the purpose of acquir- lease to— ‘‘(B) QUALIFIED BEGINNING FARMER.— ing farm inventory property. ‘‘(i) persons who are members of the Indian ‘‘(i) IN GENERAL.—Not later than 75 days ‘‘(B) APPEAL.—The determination of a tribe; after acquiring real property, the Secretary State Director under subparagraph (A) shall ‘‘(ii) Indian corporate entities that are au- shall offer to sell the property to a qualified be final and not administratively appealable. thorized by the Indian tribe to lease or pur- beginning farmer or a socially disadvantaged ‘‘(C) EFFECTS OF DETERMINATIONS.— chase land within the boundaries of the res- farmer at current market value based on a ‘‘(i) IN GENERAL.—The Secretary shall ervation; or current appraisal. maintain statistical data on the number and ‘‘(iii) the Indian tribe itself. ANDOM SELECTION ‘‘(ii) R .—If more than 1 results of determinations made under sub- ‘‘(E) TRANSFER OF PROPERTY TO SECRETARY qualified beginning farmer or socially dis- paragraph (A) and the effect of the deter- OF THE INTERIOR.— advantaged farmer offers to purchase the minations on— ‘‘(i) IN GENERAL.—If real property described property, the Secretary shall select between ‘‘(I) selling farm inventory property to in subparagraph (B) is not purchased or the qualified applicants on a random basis. qualified beginning farmers or socially dis- leased under subparagraph (C) and the Indian ‘‘(iii) APPEAL OF RANDOM SELECTION.—A advantaged farmers; and tribe having jurisdiction over the reserva- random selection or denial by the Secretary ‘‘(II) disposing of real property in inven- tion within which the real property is lo- of a qualified beginning farmer or a socially tory. cated is unable to purchase or lease the real disadvantaged farmer for farm inventory ‘‘(ii) NOTIFICATION.—The Secretary shall property, the Secretary shall transfer the property under this subparagraph shall be notify the Committee on Agriculture of the real property to the Secretary of the Interior final and not administratively appealable. House of Representatives and the Committee who shall administer the real property as if ‘‘(C) PUBLIC SALE.—If no acceptable offer is on Agriculture, Nutrition, and Forestry of the real property were held in trust by the received from a qualified beginning farmer the Senate if the Secretary determines that United States for the benefit of the Indian or a socially disadvantaged farmer under the review process under subparagraph (A) is tribe. subparagraph (B) not later than 135 days adversely affecting the selling of farm inven- ‘‘(ii) USE OF RENTAL INCOME.—From the after acquiring the real property, the Sec- tory property to qualified beginning farmers rental income derived from the lease of the retary shall, not later than 30 days after the or socially disadvantaged farmers or the dis- transferred real property, and all other in- 135-day period, sell the property after public posing of real property in inventory. come generated from the transferred real notice at a public sale, and, if no acceptable ‘‘(b) ROAD AND UTILITY EASEMENTS AND property, the Secretary of the Interior shall bid is received, by negotiated sale, at the CONDEMNATIONS.—In the case of any real pay the State, county, municipal, or other best price obtainable. property administered under this subtitle, local taxes to which the transferred real ‘‘(2) INTEREST.— the Secretary may grant or sell easements or property was subject at the time of acquisi- ‘‘(A) IN GENERAL.—Subject to subparagraph rights-of-way for roads, utilities, and other tion by the Secretary, until the earlier of— (B), any conveyance of real property under appurtenances that are not inconsistent with ‘‘(I) the expiration of the 4-year period be- this subsection shall include all of the inter- the public interest. ginning on the date on which the real prop- est of the United States in the property, in- ‘‘(c) SALE OR LEASE OF FARMLAND.— erty is so transferred; or cluding mineral rights. ‘‘(1) DISPOSITION OF REAL PROPERTY ON IN- ‘‘(II) such time as the land is transferred ‘‘(B) CONSERVATION.—The Secretary may DIAN RESERVATIONS.— into trust pursuant to subparagraph (H). for conservation purposes grant or sell an ‘‘(A) DEFINITION OF INDIAN RESERVATION.— ‘‘(F) RESPONSIBILITIES OF SECRETARIES.—If easement, restriction, development right, or In this paragraph, the term ‘Indian reserva- any real property is transferred to the Sec- similar legal right to real property to a tion’ means— retary of the Interior under subparagraph State, a political subdivision of a State, or a ‘‘(i) all land located within the limits of (E)— private nonprofit organization separately any Indian reservation under the jurisdiction ‘‘(i) the Secretary of Agriculture shall have from the underlying fee or other rights to of the United States, notwithstanding the no further responsibility under this title the property owned by the United States. issuance of any patent, and, including any for— ‘‘(3) OTHER LAW.—Subtitle I of title 40, right-of-way running through the reserva- ‘‘(I) collection of any amounts with regard United States Code, and title III of the Fed- tion; to the farm program loan that had been se- eral Property and Administrative Services ‘‘(ii) trust or restricted land located within cured by the real property; Act of 1949 (41 U.S.C. 251 et seq.) shall not the boundaries of a former reservation of an ‘‘(II) any lien arising out of the loan trans- apply to any exercise of authority under this Indian tribe in the State of Oklahoma; or action; or subtitle. ‘‘(iii) all Indian allotments the Indian ti- ‘‘(III) repayment of any amount with re- ‘‘(4) LEASE OF PROPERTY.— tles to which have not been extinguished if gard to the loan transaction or lien to the ‘‘(A) IN GENERAL.—Subject to subparagraph the allotments are subject to the jurisdiction Treasury of the United States; and (B), the Secretary may not lease any real of an Indian tribe. ‘‘(ii) the Secretary of the Interior shall property acquired under this subtitle. ‘‘(B) DISPOSITION.—Except as provided in succeed to all right, title, and interest of the ‘‘(B) EXCEPTION.— paragraph (3), the Secretary shall dispose of Secretary of Agriculture in the real estate ‘‘(i) QUALIFIED BEGINNING FARMER OR SO- or administer the property as provided in arising from the farm program loan trans- CIALLY DISADVANTAGED FARMER.—The Sec- this paragraph when— action, including the obligation to remit to retary may lease or contract to sell to a ‘‘(i) the Secretary acquires property under the Treasury of the United States, in repay- qualified beginning farmer or a socially dis- this subtitle that is located within an Indian ment of the original loan, the amounts pro- advantaged farmer a farm acquired by the reservation; and vided in subparagraph (G). Secretary under this subtitle if the qualified ‘‘(ii) the borrower-owner is the Indian tribe ‘‘(G) USE OF INCOME.—After the payment of beginning farmer qualifies for a credit sale that has jurisdiction over the reservation in any taxes that are required to be paid under or direct farm ownership loan under chapter which the real property is located or the bor- subparagraph (E)(ii), all remaining rental in- 1 but credit sale authority for loans or direct rower-owner is a member of the Indian tribe; come derived from the lease of the real prop- farm ownership loan funds, respectively, are ‘‘(C) PRIORITY.—Not later than 90 days erty transferred to the Secretary of the Inte- not available. after acquiring the property, the Secretary rior under subparagraph (E)(i), and all other

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00098 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4531 income generated from the real property which the real property is located or the bor- ‘‘(I) requiring the Secretary to assign the transferred to the Secretary of the Interior rower-owner is a member of an Indian tribe; loan and security instruments to the Sec- under that subparagraph, shall be deposited ‘‘(iii) the borrower-owner has obtained a retary of the Interior, if the Secretary of the as miscellaneous receipts in the Treasury of loan made or guaranteed under this title; Interior agrees to an assignment releasing the United States until the amount depos- and the Secretary of Agriculture from all further ited is equal to the lesser of— ‘‘(iv) the borrower-owner and the Secretary responsibility for collection of any amounts ‘‘(i) the amount of the outstanding lien of have exhausted all of the procedures pro- with regard to the loan secured by the real the United States against the real property, vided for in this title to permit a borrower- property; or as of the date the real property was acquired owner to retain title to the real property, so ‘‘(II) requiring the Secretary to assign the by the Secretary; that it is necessary for the borrower-owner loan and security instruments to the tribe ‘‘(ii) the fair market value of the real prop- to relinquish title. having jurisdiction over the reservation in erty, as of the date of the transfer to the ‘‘(B) NOTICE OF RIGHT TO CONVEY PROP- which the real property is located, if the Secretary of the Interior; or ERTY.—The Secretary shall provide the bor- tribe agrees to assume the loan under the ‘‘(iii) the capitalized value of the real prop- rower-owner of real property that is de- terms specified in clause (iii). erty, as of the date of the transfer to the scribed in subparagraph (A) with written no- ‘‘(ii) NOTICE TO TRIBE.—If an Indian bor- Secretary of the Interior. tice of— rower-owner does not voluntarily convey to ‘‘(H) HOLDING OF TITLE IN TRUST.—If the ‘‘(i) the right of the borrower-owner to vol- the Secretary real property described in sub- total amount that is required to be deposited untarily convey the real property to the Sec- paragraph (A), not less than 30 days before a under subparagraph (G) with respect to any retary; and foreclosure sale of the property, the Sec- real property has been deposited into the ‘‘(ii) the fact that real property so con- retary shall provide written notice to the In- Treasury of the United States, title to the veyed will be placed in the inventory of the dian tribe that has jurisdiction over the res- real property shall be held in trust by the Secretary. ervation in which the real property is lo- United States for the benefit of the Indian ‘‘(C) NOTICE OF RIGHTS AND PROTECTIONS.— cated of— tribe having jurisdiction over the Indian res- The Secretary shall provide the borrower- ‘‘(I) the sale; ervation within which the real property is owner of the real property with written no- ‘‘(II) the fair market value of the property; located. tice of the rights and protections provided and ‘‘(I) PAYMENT OF REMAINING LIEN OR FAIR under this title to the borrower-owner, and ‘‘(III) the requirements of this paragraph. MARKET VALUE OF PROPERTY.— the Indian tribe that has jurisdiction over ‘‘(iii) ASSUMED LOANS.—If an Indian tribe ‘‘(i) IN GENERAL.—Notwithstanding any the reservation in which the real property is assumes a loan under clause (i)— other subparagraph of this paragraph, the In- located, from foreclosure or liquidation of ‘‘(I) the Secretary shall not foreclose the dian tribe having jurisdiction over the In- the real property, including written notice— loan because of any default that occurred dian reservation within which the real prop- ‘‘(i) of paragraph (1), this paragraph, and prior to the date of the assumption; erty described in subparagraph (B) is located subsection (e)(3); ‘‘(II) the loan shall be for the lesser of the may, at any time after the real property has ‘‘(ii) if the borrower-owner does not volun- outstanding principal and interest of the been transferred to the Secretary of the Inte- tarily convey the real property to the Sec- loan or the fair market value of the prop- rior under subparagraph (E), offer to pay the retary, that— erty; and remaining amount on the lien or the fair ‘‘(I) the Secretary may foreclose on the ‘‘(III) the loan shall be treated as though market value of the real property, whichever property; the loan was made under Public Law 91–229 is less. ‘‘(II) in the event of foreclosure, the prop- (25 U.S.C. 488 et seq.). ‘‘(ii) EFFECT OF PAYMENT.—On payment of erty will be offered for sale; ‘‘(F) AMOUNT OF BID BY SECRETARY.— the amount, title to the real property shall ‘‘(III) the Secretary shall offer a bid for the ‘‘(i) IN GENERAL.—Except as provided in be held by the United States in trust for the property that is equal to the fair market clause (ii), at a foreclosure sale of real prop- tribe and the trust or restricted land that value of the property or the outstanding erty described in subparagraph (A), the Sec- has been acquired by the Secretary under principal and interest of the loan, whichever retary shall offer a bid for the property that foreclosure or voluntary transfer under a is higher; is equal to the higher of— loan made or insured under this subtitle and ‘‘(IV) the property may be purchased by ‘‘(I) the fair market value of the property; transferred to an Indian person, entity, or another party; and or tribe under this paragraph shall be consid- ‘‘(V) if the property is purchased by an- ‘‘(II) the outstanding principal and interest ered to have never lost trust or restricted other party, the property will not be placed on the loan. status. in the inventory of the Secretary and the ‘‘(ii) HAZARDOUS SUBSTANCES.—If a haz- ‘‘(J) APPLICABILITY.— borrower-owner will forfeit the rights and ardous substance (as defined in section ‘‘(i) IN GENERAL.—This paragraph shall protections provided under this title; and apply to all land in the land inventory estab- ‘‘(iii) of the opportunity of the borrower- 101(14) of the Comprehensive Environmental lished under this subtitle (as of November 28, owner to consult with the Indian tribe that Response, Compensation, and Liability Act 1990) that was (immediately prior to the has jurisdiction over the reservation in of 1980 (42 U.S.C. 9601(14))) is located on the date) owned by an Indian borrower-owner de- which the real property is located or counsel property and the Secretary takes remedial scribed in subparagraph (B) and that is situ- to determine if State or tribal law provides action to protect human health or the envi- ated within an Indian reservation, regardless rights and protections that are more bene- ronment if the property is taken into inven- of the date of foreclosure or acquisition by ficial than the rights and protections pro- tory, clause (i) shall apply only if the Sec- the Secretary. vided the borrower-owner under this title. retary determines that bidding is in the best ‘‘(ii) OPPORTUNITY TO PURCHASE OR LEASE.— ‘‘(D) ACCEPTANCE OF VOLUNTARY CONVEY- interests of the Federal Government. The Secretary shall afford an opportunity to ANCE.— ‘‘(4) DETRIMENTAL EFFECT ON VALUE OF an Indian person, entity, or tribe to purchase ‘‘(i) IN GENERAL.—Except as provided in AREA FARMLAND.—The Secretary shall not or lease the real property as provided in subclause (ii), the Secretary shall accept the offer for sale or sell any farmland referred to paragraph (C). voluntary conveyance of real property de- in paragraphs (1) through (3) if placing the ‘‘(iii) TRANSFER.—If the right is not exer- scribed in subparagraph (A). farmland on the market will have a detri- cised or no expression of intent to exercise ‘‘(ii) HAZARDOUS SUBSTANCES.—If a haz- mental effect on the value of farmland in the the right is received within 180 days after ardous substance (as defined in section area. November 28, 1990, the Secretary shall trans- 101(14) of the Comprehensive Environmental ‘‘(5) INSTALLMENT SALES AND MULTIPLE OP- fer the real property to the Secretary of the Response, Compensation, and Liability Act ERATORS.— Interior as provided in subparagraph (E). of 1980 (42 U.S.C. 9601(14))) is located on the ‘‘(A) IN GENERAL.—The Secretary may sell ‘‘(2) ADDITIONAL RIGHTS.—The rights pro- property and the Secretary takes remedial farmland administered under this title vided in this subsection shall be in addition action to protect human health or the envi- through an installment sale or similar device to any right of first refusal under the law of ronment if the property is taken into inven- that contains such terms as the Secretary the State in which the property is located. tory, the Secretary shall accept the vol- considers necessary to protect the invest- ‘‘(3) DISPOSITION OF REAL PROPERTY ON IN- untary conveyance of the property only if ment of the Federal Government in the land. DIAN RESERVATIONS AFTER PROCEDURES EX- the Secretary determines that the convey- ‘‘(B) SALE OF CONTRACT.—The Secretary HAUSTED.— ance is in the best interests of the Federal may subsequently sell any contract entered ‘‘(A) IN GENERAL.—The Secretary shall dis- Government. into to carry out subparagraph (A). pose of or administer real property described ‘‘(E) FORECLOSURE PROCEDURES.— ‘‘(6) HIGHLY ERODIBLE LAND.—In the case of in paragraph (1)(B) only as provided in para- ‘‘(i) NOTICE TO BORROWER.—If an Indian farmland administered under this title that graph (1), as modified by this paragraph, if— borrower-owner does not voluntarily convey is highly erodible land (as defined in section ‘‘(i) the real property described in para- to the Secretary real property described in 1201 of the Food Security Act of 1985 (16 graph (1)(B) is located within an Indian res- subparagraph (A), not less than 30 days be- U.S.C. 3801)), the Secretary may require the ervation; fore a foreclosure sale of the property, the use of specified conservation practices on the ‘‘(ii) the borrower-owner is an Indian tribe Secretary shall provide the Indian borrower- land as a condition of the sale or lease of the that has jurisdiction over the reservation in owner with the option of— land.

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‘‘(7) NO EFFECT ON ACREAGE ALLOTMENTS, ‘‘SEC. 3410. CONTRACTS ON LOAN SECURITY ‘‘(f) ENFORCEMENT.—The Secretary, and MARKETING QUOTAS, OR ACREAGE BASES.—Not- PROPERTIES. any person or governmental entity des- withstanding any other law, compliance by ‘‘(a) CONTRACTS ON LOAN SECURITY PROP- ignated by the Secretary, may enforce a con- the Secretary with this subsection shall not ERTIES.—Subject to subsection (b), the Sec- tract entered into by the Secretary under cause any acreage allotment, marketing retary may enter into a contract related to this section. quota, or acreage base assigned to the prop- real property for conservation, recreation, or ‘‘SEC. 3411. DEBT RESTRUCTURING AND LOAN erty to lapse, terminate, be reduced, or oth- wildlife purposes. SERVICING. ‘‘(b) LIMITATIONS.—The Secretary may erwise be adversely affected. ‘‘(a) IN GENERAL.—The Secretary shall enter into a contract under subsection (a) modify a delinquent farmer program loan ‘‘(8) NO PREEMPTION OF STATE LAW.—If a if— made under this subtitle, or purchased from conflict exists between any provision of this ‘‘(1) the property is wetland, upland, or the lender or the Federal Deposit Insurance subsection and any provision of the law of highly erodible land; Corporation under section 3902, to the max- any State providing a right of first refusal to ‘‘(2) the property is determined by the Sec- imum extent practicable— the owner of farmland or the operator of a retary to be suitable for the purpose in- ‘‘(1) to avoid a loss to the Secretary on the farm before the sale or lease of land to any volved; and loan, with priority consideration being other person, the provision of State law shall ‘‘(3)(A) the property secures a loan made placed on writing-down the loan principal prevail. under a law administered and held by the and interest (subject to subsections (d) and ‘‘(d) RELEASE OF NORMAL INCOME SECU- Secretary; and (e)), and debt set-aside (subject to subsection RITY.— ‘‘(B) the contract would better enable a (e)), to facilitate keeping the borrower on ‘‘(1) DEFINITION OF NORMAL INCOME SECU- qualified borrower to repay the loan in a the farm, or otherwise through the use of RITY.—In this subsection: timely manner, as determined by the Sec- primary loan service programs under this section; and ‘‘(A) IN GENERAL.—Except as provided in retary. ‘‘(c) TERMS AND CONDITIONS.—The terms subparagraph (B), the term ‘normal income ‘‘(2) to ensure that a borrower is able to and conditions specified in a contract under continue farming operations. security’ means all security not considered subsection (a) shall— ‘‘(b) ELIGIBILITY.—To be eligible to obtain basic security, including crops, livestock, ‘‘(1) specify the purposes for which the real assistance under subsection (a)— poultry products, Farm Service Agency pay- property may be used; ‘‘(1) the delinquency shall be due to a cir- ments and Commodity Credit Corporation ‘‘(2) identify any conservation measure to cumstance beyond the control of the bor- payments, and other property covered by be taken, and any recreational and wildlife rower, as defined in regulations issued by the Farm Service Agency liens that is sold in use to be allowed, with respect to the real Secretary, except that the regulations shall conjunction with the operation of a farm or property; and require that, if the value of the assets cal- other business. ‘‘(3) require the owner to permit the Sec- culated under subsection (c)(2)(A)(ii) that ‘‘(B) EXCEPTIONS.—The term ‘normal in- retary, and any person or governmental enti- may be realized through liquidation or other come security’ does not include any equip- ty designated by the Secretary, to have ac- methods would produce enough income to ment (including fixtures in States that have cess to the real property for the purpose of make the delinquent loan current, the bor- adopted the Uniform Commercial Code), or monitoring compliance with the contract. rower shall not be eligible for assistance foundation herd or flock, that is— ‘‘(d) REDUCTION OR FORGIVENESS OF DEBT.— under subsection (a); ‘‘(i) the basis of the farming or other oper- ‘‘(1) IN GENERAL.—Subject to this section, ‘‘(2) the borrower shall have acted in good ation; and the Secretary may reduce or forgive the out- faith with the Secretary in connection with ‘‘(ii) the basic security for a farmer pro- standing debt of a borrower— the loan as defined in regulations issued by gram loan. ‘‘(A) in the case of a borrower to whom the the Secretary; ‘‘(2) GENERAL RELEASE.—The Secretary Secretary has made an outstanding loan ‘‘(3) the borrower shall present a prelimi- shall release from the normal income secu- under a law administered by the Secretary, nary plan to the Secretary that contains rea- rity provided for a loan an amount sufficient by canceling that part of the aggregate sonable assumptions that demonstrate that to pay for the essential household and farm amount of the outstanding loan that bears the borrower will be able— operating expenses of the borrower, until the same ratio to the aggregate amount as— ‘‘(A) to meet the necessary family living such time as the Secretary accelerates the ‘‘(i) the number of acres of the real prop- and farm operating expenses of the borrower; loan. erty of the borrower that are subject to the and ‘‘(3) NOTICE OF REPORTING REQUIREMENTS contract; bears to ‘‘(B) to service all debts of the borrower, AND RIGHTS.—If a borrower is required to ‘‘(ii) the aggregate number of acres secur- including restructured loans; and plan for or to report as to how proceeds from ing the loan; or ‘‘(4) the loan, if restructured, shall result the sale of collateral property will be used, ‘‘(B) in any other case, by treating as pre- in a net recovery to the Federal Govern- the Secretary shall notify the borrower of— paid that part of the principal amount of a ment, during the term of the loan as restruc- ‘‘(A) the requirement; and new loan to the borrower issued and held by tured, that would be more than or equal to ‘‘(B) the right to the release of funds under the Secretary under a law administered by the net recovery to the Federal Government this subsection and the means by which a re- the Secretary that bears the same ratio to from an involuntary liquidation or fore- quest for the funds may be made. the principal amount as— closure on the property securing the loan. ‘‘(i) the number of acres of the real prop- ‘‘(c) RESTRUCTURING DETERMINATIONS.— ‘‘(e) EASEMENTS ON INVENTORIED PROP- erty of the borrower that are subject to the ‘‘(1) DETERMINATION OF NET RECOVERY.—In ERTY.— contract; bears to determining the net recovery from the invol- ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘(ii) the aggregate number of acres secur- untary liquidation of a loan under this sec- in the disposal of real property under this ing the new loan. tion, the Secretary shall calculate— section, the Secretary shall establish per- ‘‘(2) MAXIMUM CANCELED AMOUNT.—The ‘‘(A) the recovery value of the collateral petual wetland conservation easements to amount canceled or treated as prepaid under securing the loan, in accordance with para- protect and restore wetland or converted paragraph (1) shall not exceed— graph (2); and wetland that exists on inventoried property. ‘‘(A) in the case of a delinquent loan, the ‘‘(B) the value of the restructured loan, in ‘‘(2) LIMITATION.—The Secretary shall not greater of— accordance with paragraph (3). establish a wetland conservation easement ‘‘(i) the value of the land on which the con- ‘‘(2) RECOVERY VALUE.—For the purpose of on an inventoried property that— tract is entered into; or paragraph (1), the recovery value of the col- ‘‘(A) was cropland on the date the property ‘‘(ii) the difference between— lateral securing the loan shall be based on entered the inventory of the Secretary; or ‘‘(I) the amount of the outstanding loan se- the difference between— ‘‘(B) was used for farming at any time dur- cured by the land; and ‘‘(A)(i) the amount of the current appraised ing the period— ‘‘(II) the value of the land; or value of the interests of the borrower in the ‘‘(i) beginning on the date that is 5 years ‘‘(B) in the case of a nondelinquent loan, 33 property securing the loan; and before the property entered the inventory of percent of the amount of the loan secured by ‘‘(ii) the value of the interests of the bor- the Secretary; and the land. rower in all other assets that are— ‘‘(ii) ending on the date on which the prop- ‘‘(e) CONSULTATION WITH FISH AND WILD- ‘‘(I) not essential for necessary family liv- erty entered the inventory of the Secretary. LIFE SERVICE.—If the Secretary uses the au- ing expenses; ‘‘(3) NOTIFICATION.—The Secretary shall thority provided by this section, the Sec- ‘‘(II) not essential to the operation of the provide prior written notification to a bor- retary shall consult with the Director of the farm; and rower considering homestead retention that Fish and Wildlife Service for the purposes ‘‘(III) not exempt from judgment creditors a wetland conservation easement may be of— or in a bankruptcy action under Federal or placed on land for which the borrower is ne- ‘‘(1) selecting real property in which the State law; gotiating a lease option. Secretary may enter into a contract under ‘‘(B) the estimated administrative, attor- ‘‘(4) APPRAISED VALUE.—The appraised this section; ney, and other expenses associated with the value of the farm shall reflect the value of ‘‘(2) formulating the terms and conditions liquidation and disposition of the loan and the land due to the placement of wetland of the contract; and collateral, including— conservation easements. ‘‘(3) enforcing the contract. ‘‘(i) the payment of prior liens;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4533 ‘‘(ii) taxes and assessments, depreciation, with the borrower concerning appraisals re- the borrower shall not be treated as a con- management costs, the yearly percentage de- quired under this subsection. veyance for the purpose of paragraph (4). crease or increase in the value of the prop- ‘‘(B) INDEPENDENT APPRAISAL.— ‘‘(6) NOTICE OF RECAPTURE.—Not later than erty, and lost interest income, each cal- ‘‘(i) IN GENERAL.—If the borrower, based on 12 months before the end of the term of a culated for the average holding period for a separate current appraisal, objects to the shared appreciation arrangement, the Sec- the type of property involved; decision of the Secretary regarding an ap- retary shall notify the borrower involved of ‘‘(iii) resale expenses, such as repairs, com- praisal, the borrower and the Secretary shall the provisions of the arrangement. missions, and advertising; and mutually agree, to the extent practicable, on ‘‘(7) FINANCING OF RECAPTURE PAYMENT.— ‘‘(iv) other administrative and attorney an independent appraiser who shall conduct ‘‘(A) IN GENERAL.—The Secretary may am- costs; and another appraisal of the property of the bor- ortize a recapture payment owed to the Sec- ‘‘(C) the value, as determined by the Sec- rower. retary under this subsection. retary, of any property not included in sub- ‘‘(ii) VALUE OF FINAL APPRAISAL.—The av- ‘‘(B) TERM.—The term of an amortization paragraph (A)(i) if the property is specified erage of the 2 appraisals under clause (i) that under this paragraph may not exceed 25 in any security agreement with respect to are closest in value shall become the final years. the loan and the Secretary determines that appraisal under this paragraph. ‘‘(C) INTEREST RATE.—The interest rate ap- the value of the property should be included ‘‘(iii) COST OF APPRAISAL.—The borrower plicable to an amortization under this para- for purposes of this section. and the Secretary shall each pay 1⁄2 of the graph may not exceed the rate applicable to ‘‘(3) VALUE OF THE RESTRUCTURED LOAN.— cost of any independent appraisal. a loan to reacquire homestead property less ‘‘(A) IN GENERAL.—For the purpose of para- ‘‘(d) PRINCIPAL AND INTEREST WRITE- 100 basis points. graph (1), the value of the restructured loan DOWN.— ‘‘(D) REAMORTIZATION.— shall be based on the present value of pay- ‘‘(1) IN GENERAL.— ‘‘(i) IN GENERAL.—The Secretary may mod- ments that the borrower would make to the ‘‘(A) PRIORITY CONSIDERATION.—In selecting ify the amortization of a recapture payment Federal Government if the terms of the loan the restructuring alternatives to be used in referred to in subparagraph (A) of this para- were modified under any combination of pri- the case of a borrower who has requested re- graph on which a payment has become delin- mary loan service programs to ensure that structuring under this section, the Secretary quent if— the borrower is able to meet the obligations shall give priority consideration to the use ‘‘(I) the default is due to circumstances be- and continue farming operations. of a principal and interest write-down if yond the control of the borrower; and ‘‘(B) PRESENT VALUE.—For the purpose of other creditors of the borrower (other than ‘‘(II) the borrower acted in good faith (as calculating the present value referred to in any creditor who is fully collateralized) rep- determined by the Secretary) in attempting subparagraph (A), the Secretary shall use a resenting a substantial portion of the total to repay the recapture amount. discount rate of not more than the current debt of the borrower held by the creditors of ‘‘(ii) LIMITATIONS.— rate at the time of the calculation of 90-day the borrower, agree to participate in the de- ‘‘(I) TERM OF REAMORTIZATION.—The term Treasury bills. velopment of the restructuring plan or agree of a reamortization under this subparagraph ‘‘(C) CASH FLOW MARGIN.—For the purpose to participate in a State mediation program. may not exceed 25 years from the date of the of assessing under subparagraph (A) the abil- AILURE OF CREDITORS TO AGREE.— original amortization agreement. ity of a borrower to meet debt obligations ‘‘(B) F ‘‘(II) NO REDUCTION OR PRINCIPAL OR UNPAID and continue farming operations, the Sec- Failure of creditors to agree to participate in INTEREST DUE.—A reamortization of a recap- retary shall assume that the borrower needs the restructuring plan or mediation program ture payment under this subparagraph may up to 110 percent of the amount indicated for shall not preclude the use of a principal and not provide for reducing the outstanding payment of farm operating expenses, debt interest write-down by the Secretary if the principal or unpaid interest due on the re- service obligations, and family living ex- Secretary determines that restructuring recapture payment. penses. sults in the least cost to the Secretary. ‘‘(f) INTEREST RATES.—Any loan for farm ‘‘(4) NOTIFICATION.—Not later than 90 days ‘‘(2) PARTICIPATION OF CREDITORS.—Before after receipt of a written request for restruc- eliminating the option to use debt write- ownership purposes, farm operating pur- turing from the borrower, the Secretary down in the case of a borrower, the Sec- poses, or disaster emergency purposes, other shall— retary shall make a reasonable effort to con- than a guaranteed loan, that is deferred, con- ‘‘(A) make the calculations specified in tact the creditors of the borrower, either di- solidated, rescheduled, or reamortized shall, paragraphs (2) and (3); rectly or through the borrower, and encour- notwithstanding any other provision of this ‘‘(B) notify the borrower in writing of the age the creditors to participate with the Sec- subtitle, bear interest on the balance of the results of the calculations; and retary in the development of a restructuring original loan and for the term of the original ‘‘(C) provide documentation for the cal- plan for the borrower. loan at a rate that is the lowest of— culations. ‘‘(e) SHARED APPRECIATION ARRANGE- ‘‘(1) the rate of interest on the original ‘‘(5) RESTRUCTURING OF LOANS.— MENTS.— loan; ‘‘(A) IN GENERAL.—If the value of a restruc- ‘‘(1) IN GENERAL.—As a condition of re- ‘‘(2) the rate being charged by the Sec- tured loan is greater than or equal to the restructuring a loan in accordance with this retary for loans, other than guaranteed covery value of the collateral securing the section, the borrower of the loan may be re- loans, of the same type at the time at which loan, not later than 45 days after notifying quired to enter into a shared appreciation ar- the borrower applies for a deferral, consoli- the borrower under paragraph (4), the Sec- rangement that requires the repayment of dation, rescheduling, or reamortization; or retary shall offer to restructure the loan ob- amounts written off or set aside. ‘‘(3) the rate being charged by the Sec- ligations of the borrower under this subtitle ‘‘(2) TERMS.—A shared appreciation agree- retary for loans, other than guaranteed through primary loan service programs that ment shall— loans, of the same type at the time of the de- would enable the borrower to meet the obli- ‘‘(A) have a term not to exceed 10 years; ferral, consolidation, rescheduling, or re- gations (as modified) under the loan and to and amortization. continue the farming operations of the bor- ‘‘(B) provide for recapture based on the dif- ‘‘(g) PERIOD AND EFFECT.— rower. ference between the appraised values of the ‘‘(1) PERIOD.—The Secretary may consoli- ‘‘(B) RESTRUCTURING.—If the borrower ac- real security property at the time of restruc- date or reschedule outstanding loans for pay- cepts an offer under subparagraph (A), not turing and at the time of recapture. ment over a period not to exceed 7 years (or, later than 45 days after receipt of notice of ‘‘(3) PERCENTAGE OF RECAPTURE.—The in the case of loans for farm operating pur- acceptance, the Secretary shall restructure amount of the appreciation to be recaptured poses, 15 years) from the date of the consoli- the loan accordingly. by the Secretary shall be— dation or rescheduling. ‘‘(6) TERMINATION OF LOAN OBLIGATIONS.— ‘‘(A) 75 percent of the appreciation in the ‘‘(2) EFFECT.—The amount of unpaid prin- The obligations of a borrower to the Sec- value of the real security property if the re- cipal and interest of the prior loans so con- retary under a loan shall terminate if— capture occurs not later than 4 years after solidated or rescheduled shall not create a ‘‘(A) the borrower satisfies the require- the date of restructuring; and new charge against any loan levels author- ments of paragraphs (1) and (2) of subsection ‘‘(B) 50 percent if the recapture occurs dur- ized by law. (b); ing the remainder of the term of the agree- ‘‘(h) PREREQUISITES TO FORECLOSURE OR ‘‘(B) the value of the restructured loan is ment. LIQUIDATION.—No foreclosure or other simi- less than the recovery value; and ‘‘(4) TIME OF RECAPTURE.—Recapture shall lar action shall be taken to liquidate any ‘‘(C) not later than 90 days after receipt of take place on the date that is the earliest loan determined to be ineligible for restruc- the notification described in paragraph of— turing by the Secretary under this section— (4)(B), the borrower pays (or obtains third- ‘‘(A) the end of the term of the agreement; ‘‘(1) until the borrower has been given the party financing to pay) the Secretary an ‘‘(B) the conveyance of the real security opportunity to appeal the decision; and amount equal to the current market value. property; ‘‘(2) if the borrower appeals, the appeals ‘‘(7) NEGOTIATION OF APPRAISAL.— ‘‘(C) the repayment of the loans; or process has been completed, and a deter- ‘‘(A) IN GENERAL.—In making a determina- ‘‘(D) the cessation of farming operations by mination has been made that the loan is in- tion concerning restructuring under this the borrower. eligible for restructuring. subsection, the Secretary, at the request of ‘‘(5) TRANSFER OF TITLE.—Transfer of title ‘‘(i) NOTICE OF INELIGIBILITY FOR RESTRUC- the borrower, shall enter into negotiations to the spouse of a borrower on the death of TURING.—

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‘‘(1) IN GENERAL.—A notice of ineligibility ‘‘(2) in the case of a member of the Na- ‘‘(e) CONDITION ON FORECLOSURE.—Notwith- for restructuring shall be sent to the bor- tional Guard, is on full-time National Guard standing any other law, any contract of rower by registered or certified mail not duty (as defined in section 101(d)(5) of title guarantee on a farm loan entered into under later than 15 days after a determination of 10, United States Code) under a call to active this subtitle shall contain a condition that ineligibility. service authorized by the President or the the lender of the loan may not initiate a ‘‘(2) CONTENTS.—The notice required under Secretary of Defense for a period of more foreclosure action on the loan until 60 days paragraph (1) shall contain— than 30 consecutive days under section 502(f) after a determination is made with respect ‘‘(A) the determination and the reasons for of title 32, United States Code, for purposes to the eligibility of the borrower to partici- the determination; of responding to a national emergency de- pate in the program established under this ‘‘(B) the computations used to make the clared by the President and supported by section. determination, including the calculation of Federal funds. ‘‘SEC. 3414. HOMESTEAD PROPERTY. the recovery value of the collateral securing ‘‘(b) FORGIVENESS OF INTEREST PAYMENTS ‘‘(a) DEFINITIONS.—In this section: the loan; and DUE WHILE BORROWER ISAMOBILIZED MILI- ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- ‘‘(C) a statement of the right of the bor- TARY RESERVIST.—Any requirement that a trator’ means the Administrator of the rower to appeal the decision to the appeals borrower of a direct loan made under this Small Business Administration. division, and to appear before a hearing offi- subtitle make any interest payment on the ‘‘(2) BORROWER-OWNER.—The term ‘bor- cer. loan that would otherwise be required to be rower-owner’ means— ‘‘(j) INDEPENDENT APPRAISALS.— made while the borrower is a mobilized mili- ‘‘(A) a borrower-owner of a loan made or ‘‘(1) IN GENERAL.—An appeal may include a tary reservist is rescinded. guaranteed by the Secretary or the Adminis- ‘‘(c) DEFERRAL OF PRINCIPAL PAYMENTS request by the borrower for an independent trator who meets the eligibility require- DUE WHILE OR AFTER BORROWER ISAMOBI- appraisal of any property securing the loan. ments of subsection (c)(1); or LIZED MILITARY RESERVIST.—The due date of ‘‘(2) PROCESS FOR APPRAISAL.—On a request ‘‘(B) in a case in which an owner of home- any payment of principal on a direct loan under paragraph (1), the Secretary shall stead property pledged the property to se- made to a borrower under this subtitle that present the borrower with a list of 3 apprais- cure the loan and the owner is different than would otherwise be required to be made ers approved by the county supervisor, from the borrower, the owner. while or after the borrower is a mobilized which the borrower shall select an appraiser ‘‘(3) FARM PROGRAM LOAN.—The term ‘farm military reservist is deferred for a period to conduct the appraisal. program loan’ means a loan made by the Ad- equal in length to the period for which the ‘‘(3) COST.—The cost of an appraisal under ministrator under the Small Business Act (15 borrower is a mobilized military reservist. this subsection shall be paid by the bor- U.S.C. 631 et seq.) for any of the purposes au- ‘‘(d) NONACCRUAL OF INTEREST.—Interest on rower. thorized for loans under chapter 1 or 2. a direct loan made to a borrower described in ‘‘(4) RESULT.—The result of an appraisal ‘‘(4) HOMESTEAD PROPERTY.—The term this section shall not accrue during the pe- under this subsection shall be considered in ‘homestead property’ means— riod the borrower is a mobilized military re- any final determination concerning the loan. ‘‘(A) the principal residence and adjoining servist. ‘‘(5) COPY.—A copy of any appraisal under property possessed and occupied by a bor- this subsection shall be provided to the bor- ‘‘(e) BORROWER NOT CONSIDERED TO BE DE- LINQUENT OR RECEIVING DEBT FORGIVENESS.— rower-owner, including a reasonable number rower. of farm outbuildings located on the adjoin- ‘‘(k) PARTIAL LIQUIDATIONS.—If a partial Notwithstanding section 3425 or any other ing land that are useful to any occupant of liquidation of a delinquent loan is performed provision of this title, a borrower who re- the homestead; and (with the prior consent of the Secretary) as ceives assistance under this section shall ‘‘(B) not more than 10 acres of adjoining part of loan servicing by a guaranteed lender not, as a result of the assistance, be consid- land that is used to maintain the family of under this title, the Secretary shall not re- ered to be delinquent or receiving debt for- the borrower-owner. quire full liquidation of the loan for the lend- giveness for purposes of receiving a direct or ‘‘(b) RETENTION OF HOMESTEAD PROPERTY.— er to be eligible to receive payment on guaranteed loan under this subtitle. ‘‘(1) IN GENERAL.—The Secretary or the Ad- losses. ‘‘SEC. 3413. INTEREST RATE REDUCTION PRO- ministrator shall, on application by a bor- ‘‘(l) ONLY 1 WRITE-DOWN OR NET RECOVERY GRAM. rower-owner who meets the eligibility re- BUY-OUT PER BORROWER FOR A LOAN MADE ‘‘(a) ESTABLISHMENT OF PROGRAM.—The quirements of subsection (c)(1), permit the AFTER JANUARY 6, 1988.— Secretary shall establish and carry out in ac- borrower-owner to retain possession and oc- ‘‘(1) IN GENERAL.—The Secretary may pro- cordance with this section an interest rate vide for each borrower not more than 1 reduction program for any loan guaranteed cupancy of homestead property under the write-down or net recovery buy-out under under this subtitle. terms set forth, and until the action de- this section with respect to all loans made to ‘‘(b) ENTERING INTO CONTRACTS.—The Sec- scribed in this section has been completed, the borrower after January 6, 1988. retary shall enter into a contract with, and if— ‘‘(A) the Secretary forecloses or takes into ‘‘(2) SPECIAL RULE.—For purposes of para- make payments to, an institution to reduce, graph (1), the Secretary shall treat any loan during the term of the contract, the interest inventory property securing a loan made made on or before January 6, 1988, with re- rate paid by the borrower on the guaranteed under this subtitle; spect to which a restructuring, write-down, loan if— ‘‘(B) the Administrator forecloses or takes or net recovery buy-out is provided under ‘‘(1) the borrower— into inventory property securing a farm pro- this section after January 6, 1988, as a loan ‘‘(A) is unable to obtain credit elsewhere; gram loan made under the Small Business made after January 6, 1988. ‘‘(B) is unable to make payments on the Act (15 U.S.C. 631 et seq.); or ‘‘(m) LIQUIDATION OF ASSETS.—The Sec- loan in a timely manner; and ‘‘(C) the borrower-owner of a loan made by retary may not use the authority provided ‘‘(C) during the 24-month period beginning the Secretary or the Administrator files a by this section to reduce or terminate any on the date on which the contract is entered petition in bankruptcy that results in the portion of the debt of the borrower that the into, has a total estimated cash income, in- conveyance of the homestead property to the borrower could pay through the liquidation cluding all farm and nonfarm income, that Secretary or the Administrator, or agrees to of assets (or through the payment of the loan will equal or exceed the total estimated cash voluntarily liquidate or convey the property value of the assets, if the loan value is great- expenses, including all farm and nonfarm ex- in whole or in part. er than the liquidation value) described in penses, to be incurred by the borrower dur- ‘‘(2) PERIOD OF OCCUPANCY.—Subject to sub- subsection (c)(2)(A)(ii). ing the period; and section (c), the Secretary or the Adminis- ‘‘(n) LIFETIME LIMITATION ON DEBT FOR- ‘‘(2) during the term of the contract, the trator shall not grant a period of occupancy GIVENESS PER BORROWER.—The Secretary lender reduces the annual rate of interest of less than 3 nor more than 5 years. may provide each borrower not more than payable on the loan by a minimum percent- ‘‘(c) ELIGIBILITY.— $300,000 in debt forgiveness under this sec- age specified in the contract. ‘‘(1) IN GENERAL.—To be eligible to occupy tion. ‘‘(c) PAYMENTS.— homestead property, a borrower-owner of a ‘‘SEC. 3412. RELIEF FOR MOBILIZED MILITARY ‘‘(1) IN GENERAL.—Subject to paragraph (2), loan made by the Secretary or the Adminis- RESERVISTS FROM CERTAIN AGRI- in return for a contract entered into by a trator shall— CULTURAL LOAN OBLIGATIONS. lender under subsection (b) for the reduction ‘‘(A) apply for the occupancy not later ‘‘(a) DEFINITION OF MOBILIZED MILITARY RE- of the interest rate paid on a loan, the Sec- than 30 days after the property is acquired SERVIST.—In this section, the term ‘mobi- retary shall make payments to the lender in by the Secretary or Administrator; lized military reservist’ means an individual an amount equal to not more than 100 per- ‘‘(B) have received from farming oper- who— cent of the cost of reducing the annual rate ations gross farm income that is reasonably ‘‘(1) is on active duty under section 688, of interest payable on the loan. commensurate with— 12301(a), 12301(g), 12302, 12304, 12306, or 12406, ‘‘(2) LIMITATION.—Payments under para- ‘‘(i) the size and location of the farming or chapter 15 of title 10, United States Code, graph (1) may not exceed the cost of reducing unit of the borrower-owner; and or any other provision of law during a war or the rate by more than 400 basis points. ‘‘(ii) local agricultural conditions (includ- during a national emergency declared by the ‘‘(d) TERM.—The term of a contract entered ing natural and economic conditions), during President or Congress, regardless of the loca- into under this section to reduce the interest at least 2 calendar years of the 6-year period tion at which the active duty service is per- rate on a guaranteed loan may not exceed preceding the calendar year in which the ap- formed; or the outstanding term of the loan. plication is made;

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‘‘(C) have received from farming operations rower-owner who is a socially disadvantaged ‘‘(b) CONDITIONS.—The Secretary may not at least 60 percent of the gross annual in- farmer, the immediate family member of the transfer any property or interest in property come of the borrower-owner and any spouse borrower-owner, from a list of 3 appraisers under subsection (a) unless— of the borrower-owner during at least 2 cal- approved by the county supervisor. ‘‘(1) at least 2 public notices are given of endar years of the 6-year period described in ‘‘(5) TRANSFER OF RIGHTS.— the transfer; subparagraph (B); ‘‘(A) IN GENERAL.—Except as provided in ‘‘(2) if requested, at least 1 public meeting ‘‘(D) have continuously occupied the home- subparagraph (B), no right of a borrower- is held prior to the transfer; and stead property during the 6-year period de- owner under this section, and no agreement ‘‘(3) the Governor and at least 1 elected scribed in subparagraph (B), except that the entered into between the borrower-owner county official of the State and county in requirement of this subparagraph may be and the Secretary for occupancy of the which the property is located are consulted waived if a borrower-owner, due to cir- homestead property, shall be transferable or prior to the transfer. cumstances beyond the control of the bor- assignable by the borrower-owner or by oper- ‘‘SEC. 3416. TARGET PARTICIPATION RATES. rower-owner, had to leave the homestead ation of law. property for a period of time not to exceed 12 ‘‘(B) DEATH OR INCOMPETENCY.—In the case ‘‘(a) ESTABLISHMENT.— months during the 6-year period; of death or incompetency of the borrower- ‘‘(1) IN GENERAL.—The Secretary shall es- ‘‘(E) during the period of occupancy of the owner, the right and agreement shall be tablish annual target participation rates, on homestead property, pay a reasonable sum as transferable to a spouse of the borrower- a county-wide basis, that shall ensure that rent for the property to the Secretary or the owner if the spouse agrees to comply with members of socially disadvantaged groups Administrator in an amount substantially any terms and conditions of the right or shall— equivalent to rents charged for similar resi- agreement. ‘‘(A) receive loans made or guaranteed dential properties in the area in which the ‘‘(6) NOTIFICATION.—Not later than the date under chapter 1; and homestead property is located; of acquisition of the property securing a loan ‘‘(B) have the opportunity to purchase or ‘‘(F) during the period of the occupancy of made under this title, the Secretary shall lease farmland acquired by the Secretary the homestead property, maintain the prop- notify the borrower-owner of the property of under this subtitle. erty in good condition; and the availability of homestead protection ‘‘(2) GROUP POPULATION.—Except as pro- ‘‘(G) meet such other reasonable and nec- rights under this section. vided in paragraph (3), in establishing the essary terms and conditions as the Secretary target rates, the Secretary shall take into ‘‘(d) END OF PERIOD OF OCCUPANCY.— may require. consideration— ‘‘(1) IN GENERAL.—At the end of the period ‘‘(2) DEFINITION OF FARMING OPERATIONS.— of occupancy allowed a borrower-owner ‘‘(A) the portion of the population of the In subparagraphs (B) and (C) of paragraph under subsection (c), the Secretary or the county made up of the socially disadvan- (1), the term ‘farming operations’ includes Administrator shall grant to the borrower- taged groups; and rent paid by a lessee of agricultural land dur- owner a right of first refusal to reacquire the ‘‘(B) the availability of inventory farmland ing a period in which the borrower-owner, in the county. due to circumstances beyond the control of homestead property on such terms and conditions (which may include payment of prin- ‘‘(3) GENDER.—In the case of gender, target the borrower-owner, is unable to actively participation rates shall take into consider- farm the land. cipal in installments) as the Secretary or the Administrator shall determine. ation the number of current and potential ‘‘(3) TERMINATION OF RIGHTS.— socially disadvantaged farmers in a State in ERMS AND CONDITIONS ‘‘(A) IN GENERAL.—For purposes of para- ‘‘(2) T .—The terms and conditions granted under paragraph (1) proportion to the total number of farmers in graph (1)(E), the failure of the borrower- the State. owner to make a timely rental payment may not be less favorable than those offered ‘‘(b) RESERVATION AND ALLOCATION.— shall constitute cause for the termination of by the Secretary or Administrator or in- ‘‘(1) RESERVATION.—To the maximum ex- all rights of the borrower-owner to posses- tended by the Secretary or Administrator to tent practicable, the Secretary shall reserve sion and occupancy of the homestead prop- be offered to any other buyer. sufficient loan funds made available under erty under this section. ‘‘(e) MAXIMUM PAYMENT OF PRINCIPAL.— chapter 1 for use by members of socially dis- ‘‘(B) PROCEDURE FOR TERMINATION.—In ef- ‘‘(1) IN GENERAL.—At the time a reacquisi- fecting a termination under subparagraph tion agreement is entered into, the Sec- advantaged groups identified under target (A), the Secretary shall— retary or the Administrator may not demand participation rates established under sub- ‘‘(i) afford the borrower-owner or lessee the a total payment of principal that is in excess section (a). notice and hearing procedural rights de- of the value of the homestead property. ‘‘(2) ALLOCATION.—The Secretary shall al- scribed in subtitle H of the Department of ‘‘(2) DETERMINATION OF VALUE.—To the locate the loans on the basis of the propor- Agriculture Reorganization Act of 1994 (7 maximum extent practicable, the value of tion of members of socially disadvantaged U.S.C. 6991 et seq.); and the homestead property shall be determined groups in a county and the availability of in- ‘‘(ii) comply with any applicable State and by an independent appraisal made during the ventory farmland, with the greatest amount local law governing eviction of a person from 180 day period beginning on the date of re- of loan funds being distributed in the county residential property. ceipt of the application of the borrower- with the greatest proportion of socially dis- ‘‘(4) RIGHTS OF BORROWER-OWNER.— owner to retain possession and occupancy of advantaged group members and the greatest ‘‘(A) PERIOD OF OCCUPANCY.—Subject to the homestead property. quantity of available inventory farmland. ‘‘(3) INDIAN RESERVATIONS.—In distributing subsection (b)(2), the period of occupancy al- ‘‘(f) TITLE NOT NEEDED TO ENTER INTO CON- loan funds in counties within the boundaries lowed the borrower-owner of homestead TRACTS.—The Secretary may enter into a of an Indian reservation, the Secretary shall property under this section shall be the pe- contract authorized by this section before allocate the funds on a reservation-wide riod requested in writing by the borrower- the Secretary acquires title to the home- basis. owner. stead property that is the subject of the con- ‘‘(B) RIGHT TO REACQUIRE.— tract. ‘‘(c) OPERATING LOANS.— ‘‘(i) IN GENERAL.—During the period the ‘‘(1) ESTABLISHMENT.— ‘‘(g) STATE LAW PREVAILS.—In the event of borrower-owner occupies the homestead a conflict between this section and a provi- ‘‘(A) IN GENERAL.—The Secretary shall es- property, the borrower-owner shall have a sion of State law relating to the right of a tablish annual target participation rates right to reacquire the homestead property on borrower-owner to designate for separate that shall ensure that socially disadvantaged such terms and conditions as the Secretary sale or redeem part or all of the real prop- farmers receive loans made or guaranteed shall determine. erty securing a loan foreclosed on by a lend- under chapter 2. ‘‘(ii) SOCIALLY DISADVANTAGED BORROWER- er to the borrower-owner, the provision of ‘‘(B) CONSIDERATIONS.—In establishing the OWNER.—During the period of occupancy of a State law shall prevail. target rates, the Secretary shall consider the borrower-owner who is a socially disadvan- number of socially disadvantaged farmers in taged farmer, the borrower-owner or a mem- ‘‘SEC. 3415. TRANSFER OF INVENTORY LAND. a State in proportion to the total number of ber of the immediate family of the borrower- ‘‘(a) IN GENERAL.—Subject to subsection farmers in the State. owner shall have a right of first refusal to re- (b), the Secretary may transfer to a Federal ‘‘(2) RESERVATION AND ALLOCATION.— acquire the homestead property on such or State agency, for conservation purposes, ‘‘(A) IN GENERAL.—To the maximum extent terms and conditions as the Secretary shall any real property, or interest in real prop- practicable, the Secretary shall reserve and determine. erty, administered by the Secretary under allocate the proportion of the loan funds of ‘‘(iii) INDEPENDENT APPRAISAL.—The Sec- this subtitle— each State made available under chapter 2 retary may not demand a payment for the ‘‘(1) with respect to which the rights of all that is equal to the target participation rate homestead property that is in excess of the prior owners and operators have expired; of the State for use by the socially disadvan- current market value of the homestead prop- ‘‘(2) that is eligible to be disposed of in ac- taged farmers in the State. erty as established by an independent ap- cordance with section 3409; and ‘‘(B) DISTRIBUTION.—To the maximum ex- praisal. ‘‘(3) that— tent practicable, the Secretary shall dis- ‘‘(iv) CONDUCT OF APPRAISAL.—An inde- ‘‘(A) has marginal value for agricultural tribute the total loan funds reserved under pendent appraisal under clause (iii) shall be production; subparagraph (A) on a county-by-county conducted by an appraiser selected by the ‘‘(B) is environmentally sensitive; or basis according to the number of socially dis- borrower-owner, or, in the case of a bor- ‘‘(C) has special management importance. advantaged farmers in the county.

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‘‘(C) REALLOCATION OF UNUSED FUNDS.—Any ‘‘(2) CONSULTATION.—The Secretary may termine the cause of, and action necessary to funds reserved and allocated under this para- consult with the chief executive officer of a correct, the delinquency. graph but not used within a State shall, to State concerning the identity of the con- ‘‘(e) GUIDELINES.—The Secretary shall the extent necessary to satisfy pending ap- tracting organization and the process for issue regulations providing guidelines for plications under this title, be available for contracting. loan assessments conducted under this sec- use by socially disadvantaged farmers in ‘‘(c) ELIGIBILITY FOR LOANS.— tion. other States, as determined by the Sec- ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘SEC. 3421. SUPERVISED CREDIT. retary, and any remaining funds shall be re- to be eligible to obtain a direct or guaran- ‘‘The Secretary shall provide adequate allocated within the State. teed loan under this subtitle, a borrower training to employees of the Farm Service ‘‘(d) REPORT.—The Secretary shall prepare shall be required to obtain management as- Agency on credit analysis and financial and and submit to the Committee on Agriculture sistance under this section, appropriate to farm management— of the House of Representatives and the the management ability of the borrower dur- ‘‘(1) to better acquaint the employees with Committee on Agriculture, Nutrition, and ing the determination of eligibility for the what constitutes adequate financial data on Forestry of the Senate a report that de- loan. which to base a direct or guaranteed loan ap- scribes the annual target participation rates ‘‘(2) LOAN CONDITIONS.—The need of a bor- proval decision; and and the success in meeting the rates. rower who satisfies the criteria set out in ‘‘(2) to ensure proper supervision of farmer ‘‘(e) IMPLEMENTATION CONSISTENT WITH SU- section 3101(b)(1)(B) or 3201(b)(1)(B) for man- program loans. PREME OURT OLDING C H .—Not later than 180 agement assistance under this section shall ‘‘SEC. 3422. MARKET PLACEMENT. days after April 4, 1996, the Secretary shall not be cause for denial of eligibility of the ‘‘The Secretary shall establish a market ensure that the implementation of this sec- borrower for a direct or guaranteed loan placement program for a qualified beginning tion is consistent with the holding of the Su- under this subtitle. farmer and any other borrower of farmer preme Court in Adarand Constructors, Inc. v. ‘‘(d) GUIDELINES AND CURRICULUM.—The program loans that the Secretary believes Federico Pena, Secretary of Transportation, Secretary shall issue regulations estab- has a reasonable chance of qualifying for 115 S. Ct. 2097 (1995). lishing guidelines and curriculum for the commercial credit with a guarantee provided ‘‘SEC. 3417. COMPROMISE OR ADJUSTMENT OF borrower training program established under under this subtitle. DEBTS OR CLAIMS BY GUARANTEED this section. LENDER. ‘‘SEC. 3423. RECORDKEEPING OF LOANS BY GEN- ‘‘(e) PAYMENT.—A borrower— DER OF BORROWER. ‘‘(a) LOSS BY LENDER.—If the lender of a ‘‘(1) shall pay for training received under ‘‘The Secretary shall classify, by gender, guaranteed farmer program loan takes any this section; and action described in section 3903(a)(4) with re- records of applicants for loans and loan guar- ‘‘(2) may use funds from operating loans antees under this subtitle. spect to the loan and the Secretary approves made under chapter 2 to pay for the training. the action, for purposes of the guarantee, the ‘‘SEC. 3424. CROP INSURANCE REQUIREMENT. ‘‘(f) WAIVERS.— lender shall be treated as having sustained a ‘‘(a) IN GENERAL.—As a condition of obtain- ‘‘(1) IN GENERAL.—The Secretary may loss equal to the amount by which— ing any benefit (including a direct loan, loan waive the requirements of this section for an guarantee, or payment) described in sub- ‘‘(1) the outstanding balance of the loan individual borrower on a determination that immediately before the action; exceeds section (b), a borrower shall be required to the borrower demonstrates adequate knowl- obtain at least catastrophic risk protection ‘‘(2) the outstanding balance of the loan edge in areas described in this section. immediately after the action. insurance coverage under section 508 of the ‘‘(2) CRITERIA.—The Secretary shall estab- ‘‘(b) NET PRESENT VALUE OF LOAN.—The Federal Crop Insurance Act (7 U.S.C. 1508) for lish criteria providing for the application of Secretary shall approve the taking of an ac- the crop and crop year for which the benefit paragraph (1) consistently in all counties nation described in section 3903(a)(4) by the is sought, if the coverage is offered by the tionwide. lender of a guaranteed farmer program loan Federal Crop Insurance Corporation. with respect to the loan if the action reduces ‘‘SEC. 3420. LOAN ASSESSMENTS. ‘‘(b) APPLICABLE BENEFITS.—Subsection (a) the net present value of the loan to an ‘‘(a) IN GENERAL.—After an applicant is de- shall apply to— amount equal to not less than the greater termined to be eligible for assistance under ‘‘(1) a farm ownership loan under section of— this subtitle, the Secretary shall evaluate, in 3102; ‘‘(1) the greatest net present value of a accordance with regulations issued by the ‘‘(2) an operating loan under section 3202; loan the borrower could reasonably be ex- Secretary, the farming plan and financial and pected to repay; and situation of each qualified farmer applicant. ‘‘(3) an emergency loan under section 3301. ‘‘(2) the difference between— ‘‘(b) DETERMINATIONS.—In evaluating the ‘‘SEC. 3425. LOAN AND LOAN SERVICING LIMITA- ‘‘(A) the greatest amount that the lender farming plan and financial situation of an TIONS. of the loan could reasonably expect to re- applicant under this section, the Secretary ‘‘(a) DELINQUENT BORROWERS PROHIBITED cover from the borrower through bank- shall determine— FROM OBTAINING DIRECT OPERATING LOANS.— ruptcy, or liquidation of the property secur- ‘‘(1) the amount that the applicant needs The Secretary may not make a direct oper- ing the loan; and to borrow to carry out the proposed farming ating loan under chapter 2 to a borrower who ‘‘(B) all reasonable and necessary costs and plan; is delinquent on any loan made or guaran- expenses that the lender of the loan could ‘‘(2) the rate of interest that the applicant teed under this subtitle. reasonably expect to incur to preserve or dis- would need to be able to cover expenses and ‘‘(b) LOANS PROHIBITED FOR BORROWERS pose of the property (including all associated build an adequate equity base; THAT HAVE RECEIVED DEBT FORGIVENESS.— legal and property management costs) in the ‘‘(3) the goals of the proposed farming plan ‘‘(1) PROHIBITIONS.—Except as provided in course of such a bankruptcy or liquidation. of the applicant; paragraph (2)— ‘‘(c) NO LIMITATION ON AUTHORITY.—This ‘‘(4) the financial viability of the plan and ‘‘(A) the Secretary may not make a loan section shall not limit the authority of the any changes that are necessary to make the under this subtitle to a borrower that has re- Secretary to enter into a shared appreciation plan viable; and ceived debt forgiveness on a loan made or arrangement with a borrower under section ‘‘(5) whether assistance is necessary under guaranteed under this subtitle; and 3411(e). this title and, if so, the amount of the assist- ‘‘(B) the Secretary may not guarantee a ‘‘SEC. 3418. WAIVER OF MEDIATION RIGHTS BY ance. loan under this subtitle to a borrower that BORROWERS. ‘‘(c) CONTRACT.—The Secretary may con- has received— ‘‘The Secretary may not make or guar- tract with a third party (including an entity ‘‘(i) debt forgiveness after April 4, 1996, on antee any farmer program loan to a farm that is eligible to provide borrower training a loan made or guaranteed under this sub- borrower on the condition that the borrower under section 3419(b)) to conduct a loan as- title; or waive any right under the mediation pro- sessment under this section. ‘‘(ii) received debt forgiveness on more gram of any State. ‘‘(d) REVIEW OF LOANS.— than 3 occasions on or before April 4, 1996. ‘‘SEC. 3419. BORROWER TRAINING. ‘‘(1) IN GENERAL.—Loan assessments con- ‘‘(2) EXCEPTIONS.— ‘‘(a) IN GENERAL.—The Secretary shall conducted under this section shall include bian- ‘‘(A) IN GENERAL.—The Secretary may tract to provide educational training to all nual review of direct loans, and periodic re- make a direct or guaranteed farm operating borrowers of direct loans made under this view (as determined necessary by the Sec- loan for paying annual farm operating ex- subtitle in financial and farm management retary) of guaranteed loans, made under this penses of a borrower who— concepts associated with commercial farm- title to assess the progress of a borrower in ‘‘(i) was restructured with a write-down ing. meeting the goals for the farm operation. under section 3411; ‘‘(b) CONTRACT.— ‘‘(2) CONTRACTS.—The Secretary may con- ‘‘(ii) is current on payments under a con- ‘‘(1) IN GENERAL.—The Secretary may contract with an entity that is eligible to pro- firmed reorganization plan under chapters 1 tract with a State or private provider of vide borrower training under section 3419(b) 11, 12, or 13 of title 11 of the United States farm management and credit counseling to conduct a loan review under paragraph (1). Code; or services (including a community college, the ‘‘(3) PROBLEM ASSESSMENTS.—If a borrower ‘‘(iii) received debt forgiveness on not more extension service of a State, a State depart- is delinquent in payments on a direct or than 1 occasion resulting directly and pri- ment of agriculture, or a nonprofit organiza- guaranteed loan made under this title, the marily from a major disaster or emergency tion) to carry out this section. Secretary or the contracting entity shall de- designated by the President on or after April

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4, 1996, under the Robert T. Stafford Disaster ‘‘(2) COORDINATION.—The Secretary shall dividual development account established by Relief and Emergency Assistance Act (42 operate the pilot program through and in co- the qualified entity for an eligible partici- U.S.C. 5121 et seq.). ordination with the farmer program loans of pant. ‘‘(B) EMERGENCY LOANS.—The Secretary the Farm Service Agency. ‘‘(ii) TREATMENT OF AMOUNT.—An amount may make an emergency loan under section ‘‘(3) RESERVE FUNDS.— provided under clause (i) shall not be consid- 3301 to a borrower that— ‘‘(A) IN GENERAL.—A qualified entity car- ered to be a gift or loan for mortgage pur- ‘‘(i) on or before April 4, 1996, received not rying out a demonstration program under poses. more than 1 debt forgiveness on a loan made this section shall establish a reserve fund ‘‘(5) ELIGIBLE EXPENDITURES.— or guaranteed under this subtitle; and consisting of a non-Federal match of 50 per- ‘‘(A) IN GENERAL.—An eligible expenditure ‘‘(ii) after April 4, 1996, has not received cent of the total amount of the grant award- described in this subparagraph is an expendi- debt forgiveness on a loan made or guaran- ed to the demonstration program under this ture— teed under this subtitle. section. ‘‘(i) to purchase farmland or make a down ‘‘(c) NO MORE THAN 1 DEBT FORGIVENESS ‘‘(B) FEDERAL FUNDS.—After the qualified payment on an accepted purchase offer for FOR A BORROWER ON A DIRECT LOAN.—The entity has deposited the non-Federal match- farmland; Secretary may not provide to a borrower ing funds described in subparagraph (A) in ‘‘(ii) to make mortgage payments on farm- debt forgiveness on a direct loan made under the reserve fund, the Secretary shall provide land purchased pursuant to clause (i), for up this subtitle if the borrower has received the total amount of the grant awarded under to 180 days after the date of the purchase; debt forgiveness on another direct loan made this section to the demonstration program ‘‘(iii) to purchase breeding stock, fruit or under this subtitle. for deposit in the reserve fund. nut trees, or trees to harvest for timber; and ‘‘SEC. 3426. SHORT FORM CERTIFICATION OF ‘‘(C) USE OF FUNDS.—Of the funds deposited ‘‘(iv) for other similar expenditures, as de- FARM PROGRAM BORROWER COM- under subparagraph (B) in the reserve fund termined by the Secretary. PLIANCE. established for a demonstration program, the ‘‘(B) TIMING.— ‘‘The Secretary shall develop and use a qualified entity carrying out the demonstra- ‘‘(i) IN GENERAL.—An eligible participant consolidated short form for farmer program tion program— may make an eligible expenditure at any loan borrowers to use in certifying compli- ‘‘(i) may use up to 10 percent for adminis- time during the 2-year period beginning on ance with any applicable provision of law trative expenses; and the date on which the last matching funds (including a regulation) that serves as an eli- ‘‘(ii) shall use the remainder in making are provided under paragraph (4)(B)(ii)(I) to gibility prerequisite for a loan made under matching awards described in paragraph the individual development account estab- this subtitle. (4)(B)(ii)(I). lished for the eligible participant. NTEREST ‘‘SEC. 3427. UNDERWRITING FORMS AND STAND- ‘‘(D) I .—Any interest earned on ‘‘(ii) UNEXPENDED FUNDS.—At the end of ARDS. amounts in a reserve fund established under the period described in clause (i), any funds ‘‘In the administration of this subtitle, the subparagraph (A) may be used by the quali- remaining in an individual development ac- Secretary shall, to the extent practicable, fied entity as additional matching funds for, count established for an eligible participant use underwriting forms, standards, practices, or to administer, the demonstration pro- shall revert to the reserve fund of the dem- and terminology similar to the forms, stand- gram. onstration program under which the account ards, practices, and terminology used by ‘‘(E) GUIDANCE.—The Secretary shall issue was established. lenders in the private sector. guidance regarding the investment require- ‘‘SEC. 3428. BEGINNING FARMER INDIVIDUAL DE- ments of reserve funds established under this ‘‘(c) APPLICATIONS.— VELOPMENT ACCOUNTS PILOT PRO- paragraph. ‘‘(1) IN GENERAL.—A qualified entity that GRAM. ‘‘(F) REVERSION.—On the date on which all seeks to carry out a demonstration program ‘‘(a) DEFINITIONS.—In this section: funds remaining in any individual develop- under this section may submit to the Sec- ‘‘(1) DEMONSTRATION PROGRAM.—The term ment account established by a qualified enti- retary an application at such time, in such ‘demonstration program’ means a dem- ty have reverted under paragraph (5)(B)(ii) to form, and containing such information as onstration program carried out by a quali- the reserve fund established by the qualified the Secretary may prescribe. fied entity under the pilot program estab- entity, there shall revert to the Treasury of ‘‘(2) CRITERIA.—In considering whether to lished in subsection (b)(1). the United States a percentage of the approve an application to carry out a dem- ‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eli- amount (if any) in the reserve fund equal onstration program under this section, the gible participant’ means a qualified begin- to— Secretary shall assess— ning farmer that— ‘‘(i) the amount of Federal funds deposited ‘‘(A) the degree to which the demonstra- ‘‘(A) lacks significant financial resources in the reserve fund under subparagraph (B) tion program described in the application is or assets; and that were not used for administrative ex- likely to aid eligible participants in success- ‘‘(B) has an income that is less than— penses; divided by fully pursuing new farming opportunities; ‘‘(i) 80 percent of the median income of the ‘‘(ii) the total amount of funds deposited in ‘‘(B) the experience and ability of the State in which the farmer resides; or the reserve fund. qualified entity to responsibly administer ‘‘(ii) 200 percent of the most recent annual ‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— the demonstration program; Federal Poverty Income Guidelines pub- ‘‘(A) IN GENERAL.—A qualified entity re- ‘‘(C) the experience and ability of the lished by the Department of Health and ceiving a grant under this section shall es- qualified entity in recruiting, educating, and Human Services for the State. tablish and administer individual develop- assisting eligible participants to increase ‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.— ment accounts for eligible participants. economic independence and pursue or ad- The term ‘individual development account’ ‘‘(B) CONTRACT REQUIREMENTS.—To be eligi- vance farming opportunities; means a savings account described in sub- ble to receive funds under this section from ‘‘(D) the aggregate amount of direct funds section (b)(4)(A). a qualified entity, an eligible participant from non-Federal public sector and private ‘‘(4) QUALIFIED ENTITY.— shall enter into a contract with only 1 quali- sources that are formally committed to the ‘‘(A) IN GENERAL.—The term ‘qualified en- fied entity under which— demonstration program as matching con- tity’ means— ‘‘(i) the eligible participant agrees— tributions; ‘‘(i) 1 or more organizations— ‘‘(I) to deposit a certain amount of funds of ‘‘(E) the adequacy of the plan of the quali- ‘‘(I) described in section 501(c)(3) of the In- the eligible participant in a personal savings fied entity to provide information relevant ternal Revenue Code of 1986; and account, as prescribed by the contractual to an evaluation of the demonstration pro- ‘‘(II) exempt from taxation under section agreement between the eligible participant gram; and 501(a) of such Code; or and the qualified entity; ‘‘(F) such other factors as the Secretary ‘‘(ii) a State, local, or tribal government ‘‘(II) to use the funds described in sub- considers to be appropriate. submitting an application jointly with an or- clause (I) only for 1 or more eligible expendi- ‘‘(3) PREFERENCES.—In considering an ap- ganization described in clause (i). tures described in paragraph (5)(A); and plication to conduct a demonstration pro- ‘‘(B) NO PROHIBITION ON COLLABORATION.— ‘‘(III) to complete financial training; and gram under this section, the Secretary shall An organization described in subparagraph ‘‘(ii) the qualified entity agrees— give preference to an application from a (A)(i) may collaborate with a financial insti- ‘‘(I) to deposit, not later than 1 month qualified entity that demonstrates— tution or for-profit community development after an amount is deposited pursuant to ‘‘(A) a track record of serving clients tar- corporation to carry out the purposes of this clause (i)(I), at least a 100-percent, and up to geted by the program, including, as appro- section. a 200-percent, match of that amount into the priate, socially disadvantaged farmers; and ‘‘(b) PILOT PROGRAM.— individual development account established ‘‘(B) expertise in dealing with financial ‘‘(1) IN GENERAL.—The Secretary shall es- for the eligible participant; and management aspects of farming. tablish a pilot program to be known as the ‘‘(II) with uses of funds proposed by the eli- ‘‘(4) APPROVAL.—Not later than 1 year after ‘New Farmer Individual Development Ac- gible participant. the date of enactment of this section, in accounts Pilot Program’ under which the Sec- ‘‘(C) LIMITATION.— cordance with this section, the Secretary retary shall work through qualified entities ‘‘(i) IN GENERAL.—A qualified entity admin- shall, on a competitive basis, approve such to establish demonstration programs— istering a demonstration program under this applications to conduct demonstration pro- ‘‘(A) of at least 5 years in duration; and section may provide not more than $6,000 for grams as the Secretary considers appro- ‘‘(B) in at least 15 States. each fiscal year in matching funds to the in- priate.

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‘‘(5) TERM OF AUTHORITY.—If the Secretary project under subsection (a), submit notice ‘‘(ii) OPERATING LOANS.—Of the amounts approves an application to carry out a dem- of the proposed pilot project to the Com- made available under paragraph (1) for guar- onstration program, the Secretary shall au- mittee on Agriculture of the House of Rep- antees of operating loans, the Secretary thorize the applicant to carry out the project resentatives and the Committee on Agri- shall reserve 40 percent for qualified begin- for a period of 5 years, plus an additional 2 culture, Nutrition, and Forestry of the Sen- ning farmers. years to make eligible expenditures in ac- ate; and ‘‘(iii) FUNDS RESERVED UNTIL APRIL 1.— cordance with subsection (b)(5)(B). ‘‘(2) consider any recommendations or Funds reserved for qualified beginning farm- ‘‘(d) GRANT AUTHORITY.— feedback provided to the Secretary in re- ers under this subparagraph for a fiscal year ‘‘(1) IN GENERAL.—The Secretary shall sponse to the notice provided under para- shall be reserved only until April 1 of the fis- make a grant to a qualified entity author- graph (1). cal year. ized to carry out a demonstration program ‘‘SEC. 3430. PROHIBITION ON USE OF LOANS FOR ‘‘(C) RESERVED FUNDS FOR ALL QUALIFIED under this section. CERTAIN PURPOSES. BEGINNING FARMERS.—If a qualified beginning ‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The ag- ‘‘(a) IN GENERAL.—Except as provided in farmer meets the eligibility criteria for re- gregate amount of grant funds provided to a subsections (b) and (c), the Secretary may ceiving a direct or guaranteed loan under demonstration program carried out under not approve a loan under this subtitle to section 3101, 3107, or 3201, the Secretary shall this section shall not exceed $250,000. drain, dredge, fill, level, or otherwise manip- make or guarantee the loan if sufficient ‘‘(3) TIMING OF GRANT PAYMENTS.—The Sec- ulate a wetland (as defined in section 1201(a) funds reserved under this paragraph are retary shall pay the amounts awarded under of the Food Security Act of 1985 (16 U.S.C. available to make or guarantee the loan. a grant made under this section— 3801(a))), or to engage in any activity that ‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.— ‘‘(A) on the awarding of the grant; or results in impairing or reducing the flow, ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(B) pursuant to such payment plan as the circulation, or reach of water. (B)— ‘‘(b) PRIOR ACTIVITY.—Subsection (a) does qualified entity may specify. ‘‘(i) beginning on August 1 of each fiscal not apply in the case of— ‘‘(e) REPORTS.— year, the Secretary shall use available un- ‘‘(1) an activity related to the maintenance ‘‘(1) ANNUAL PROGRESS REPORTS.— subsidized guaranteed farm operating loan of a previously converted wetland; or ‘‘(A) IN GENERAL.—Not later than 60 days funds to provide direct farm ownership loans ‘‘(2) an activity that had already com- after the end of the calendar year in which approved by the Secretary to qualified begin- menced before November 28, 1990. the Secretary authorizes a qualified entity ning farmers under the down payment loan ‘‘(c) EXCEPTION.—This section shall not program established under section 3107, if to carry out a demonstration program under apply to a loan made or guaranteed under this section, and annually thereafter until sufficient direct farm ownership loan funds this subtitle for a utility line. are not otherwise available; and the conclusion of the demonstration pro- ‘‘SEC. 3431. AUTHORIZATION OF APPROPRIA- gram, the qualified entity shall prepare an ‘‘(ii) beginning on September 1 of each fis- TIONS AND ALLOCATION OF FUNDS. cal year, the Secretary shall use available annual report that includes, for the period ‘‘(a) AUTHORIZATION FOR LOANS.— covered by the report— unsubsidized guaranteed farm operating loan ‘‘(1) IN GENERAL.—The Secretary may make funds to provide direct farm ownership loans ‘‘(i) an evaluation of the progress of the or guarantee loans under chapters 1 and 2 demonstration program; approved by the Secretary to qualified begin- from the Agricultural Credit Insurance Fund ning farmers, if sufficient direct farm owner- ‘‘(ii) information about the demonstration for not more than $4,226,000,000 for each of ship loan funds are not otherwise available. program, including the eligible participants fiscal years 2012 through 2017, of which, for ‘‘(B) LIMITATION.—The Secretary shall and the individual development accounts each fiscal year— limit the transfer of funds under subpara- that have been established; and ‘‘(A) $1,200,000,000 shall be for direct loans, graph (A) so that all guaranteed farm oper- ‘‘(iii) such other information as the Sec- of which— ating loans that have been approved, or will retary may require. ‘‘(i) $350,000,000 shall be for farm ownership be approved, by the Secretary during the fis- ‘‘(B) SUBMISSION OF REPORTS.—A qualified loans; and cal year will be made to the extent of avail- entity shall submit each report required ‘‘(ii) $850,000,000 shall be for operating able amounts. under subparagraph (A) to the Secretary. loans; and ‘‘(4) TRANSFER FOR CREDIT SALES OF FARM ‘‘(2) REPORTS BY THE SECRETARY.—Not later ‘‘(B) $3,026,000,000 shall be for guaranteed INVENTORY PROPERTY.— than 1 year after the date on which all dem- loans, of which— ‘‘(A) IN GENERAL.—Subject to subpara- onstration programs under this section are ‘‘(i) $1,000,000,000 shall be for guarantees of graphs (B) and (C), beginning on September 1 concluded, the Secretary shall submit to farm ownership loans; and of each fiscal year, the Secretary may use Congress a final report that describes the re- ‘‘(ii) $2,026,000,000 shall be for guarantees of available funds made available under chapter sults and findings of all reports and evalua- operating loans. 3 for the fiscal year to fund the credit sale of tions carried out under this section. ‘‘(2) BEGINNING FARMERS.— farm real estate in the inventory of the Sec- ‘‘(f) ANNUAL REVIEW.—The Secretary may ‘‘(A) DIRECT LOANS.— retary. conduct an annual review of the financial ‘‘(i) FARM OWNERSHIP LOANS.— ‘‘(B) SUPPLEMENTAL APPROPRIATIONS.—The records of a qualified entity— ‘‘(I) IN GENERAL.—Of the amounts made transfer authority provided under subpara- ‘‘(1) to assess the financial soundness of available under paragraph (1) for direct farm graph (A) shall not apply to any funds made the qualified entity; and ownership loans, the Secretary shall reserve available to the Secretary for any fiscal year ‘‘(2) to determine the use of grant funds an amount that is not less than 75 percent of under an Act making supplemental appro- made available to the qualified entity under the total amount for qualified beginning priations. this section. farmers. ‘‘(C) LIMITATION.—The Secretary shall ‘‘(g) REGULATIONS.—In carrying out this ‘‘(II) DOWN PAYMENT LOANS; JOINT FINANC- limit the transfer of funds under subpara- section, the Secretary may promulgate regu- ING ARRANGEMENTS.—Of the amounts re- graph (A) so that all emergency disaster lations to ensure that the program includes served for a fiscal year under subclause (I), loans that have been approved, or will be ap- provisions for— the Secretary shall reserve an amount not proved, by the Secretary during the fiscal ‘‘(1) the termination of demonstration pro- 2 less than ⁄3 of the amount for the down pay- year will be made to the extent of available grams; ment loan program under section 3107 and amounts. ‘‘(2) control of the reserve funds in the case joint financing arrangements under section ‘‘(5) AVAILABILITY OF FUNDS.—Funds made of such a termination; 3105 until April 1 of the fiscal year. available to carry out this subtitle shall re- ‘‘(3) transfer of demonstration programs to ‘‘(ii) OPERATING LOANS.—Of the amounts main available until expended. other qualified entities; and made available under paragraph (1) for direct ‘‘(b) COST PROJECTIONS.— ‘‘(4) remissions from a reserve fund to the operating loans, the Secretary shall reserve ‘‘(1) IN GENERAL.—The Secretary shall de- Secretary in a case in which a demonstration for qualified beginning farmers for each of velop long-term cost projections for loan program is terminated without transfer to a fiscal years 2012 through 2017, an amount program authorizations required under sub- new qualified entity. that is not less than 50 percent of the total section (a). ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— amount. ‘‘(2) ANALYSIS.—Each projection under There is authorized to be appropriated to ‘‘(iii) FUNDS RESERVED UNTIL SEPTEMBER paragraph (1) shall include analyses of— carry out this section $5,000,000 for each of 1.—Except as provided in clause (i)(II), funds ‘‘(A) the long-term costs of the lending lev- fiscal years 2012 through 2017. reserved for qualified beginning farmers els that the Secretary requests to be author- ‘‘SEC. 3429. FARMER LOAN PILOT PROJECTS. under this subparagraph for a fiscal year ized under subsection (a); and ‘‘(a) IN GENERAL.—The Secretary may con- shall be reserved only until September 1 of ‘‘(B) the long-term costs for increases in duct pilot projects of limited scope and dura- the fiscal year. lending levels beyond those requested to be tion that are consistent with this subtitle to ‘‘(B) GUARANTEED LOANS.— authorized, based on increments of $10,000,000 evaluate processes and techniques that may ‘‘(i) FARM OWNERSHIP LOANS.—Of the or such other levels as the Secretary con- improve the efficiency and effectiveness of amounts made available under paragraph (1) siders appropriate. the programs carried out under this subtitle for guarantees of farm ownership loans, the ‘‘(3) SUBMISSION TO CONGRESS.—The Sec- ‘‘(b) NOTIFICATION.—The Secretary shall— Secretary shall reserve an amount that is retary shall submit to the Committees on ‘‘(1) not less than 60 days before the date not less than 40 percent of the total amount Agriculture and Appropriations of the House on which the Secretary initiates a pilot for qualified beginning farmers. of Representatives and the Committees on

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Agriculture, Nutrition, and Forestry and Ap- ‘‘Subtitle A—Farmer Loans, Servicing, and ‘‘CHAPTER 2—RURAL BUSINESS AND propriations of the Senate reports con- Other Assistance COOPERATIVE DEVELOPMENT taining the long-term cost projections for ‘‘CHAPTER 1—FARM OWNERSHIP LOANS ‘‘Sec. 3601. Business programs. the 3-year period beginning with fiscal year ‘‘Sec. 3101. Farm ownership loans. ‘‘Sec. 3602. Rural business investment pro- 1983 and each 3-year period thereafter at the ‘‘Sec. 3102. Purposes of loans. gram. time the requests for authorizations for ‘‘Sec. 3103. Conservation loan and loan guar- ‘‘CHAPTER 3—GENERAL RURAL DEVELOPMENT those periods are submitted to Congress. antee program. PROVISIONS ‘‘(c) LOW-INCOME, LIMITED-RESOURCE BOR- ‘‘Sec. 3104. Loan maximums. ROWERS.— ‘‘Sec. 3701. General provisions for loans and ‘‘Sec. 3105. Repayment requirements for ‘‘(1) RESERVE.—Notwithstanding any other grants. farm ownership loans. provision of law, not less than 25 percent of ‘‘Sec. 3702. Strategic economic and commu- ‘‘Sec. 3106. Limited-resource loans. the loans for farm ownership purposes for nity development. ‘‘Sec. 3107. Downpayment loan program. each fiscal year under this subtitle shall be ‘‘Sec. 3703. Guaranteed rural development ‘‘Sec. 3108. Beginning farmer and socially for low-income, limited-resource borrowers. loans. disadvantaged farmer contract ‘‘(2) NOTIFICATION.—The Secretary shall ‘‘Sec. 3704. Rural Development Insurance land sales program. provide notification to farm borrowers under Fund. this subtitle in the normal course of loan ‘‘CHAPTER 2—OPERATING LOANS ‘‘Sec. 3705. Rural economic area partnership making and loan servicing operations, of the ‘‘Sec. 3201. Operating loans. zones. provisions of this subtitle relating to low-in- ‘‘Sec. 3202. Purposes of loans. ‘‘Sec. 3706. Streamlining applications and come, limited-resource borrowers and the ‘‘Sec. 3203. Restrictions on loans. improving accessibility of rural procedures by which persons may apply for ‘‘Sec. 3204. Terms of loans. development programs. ‘‘Sec. 3707. State Rural Development Part- loans under the low-income, limited-resource ‘‘CHAPTER 3—EMERGENCY LOANS nership. borrower program.’’. ‘‘Sec. 3301. Emergency loans. ‘‘CHAPTER 4—DELTA REGIONAL AUTHORITY Subtitle B—Miscellaneous ‘‘Sec. 3302. Purposes of loans. ‘‘Sec. 3801. Definitions. SEC. 5101. STATE AGRICULTURAL MEDIATION ‘‘Sec. 3303. Terms of loans. PROGRAMS. ‘‘Sec. 3304. Production losses. ‘‘Sec. 3802. Delta Regional Authority. Section 506 of the Agricultural Credit Act ‘‘Sec. 3803. Economic and community devel- ‘‘CHAPTER 4—GENERAL FARMER LOAN opment grants. of 1987 (7 U.S.C. 5106) is amended by striking PROVISIONS ‘‘2015’’ and inserting ‘‘2017’’. ‘‘Sec. 3804. Supplements to Federal grant ‘‘Sec. 3401. Agricultural Credit Insurance programs. SEC. 5102. LOANS TO PURCHASERS OF HIGHLY Fund. FRACTIONATED LAND. ‘‘Sec. 3805. Local development districts; cer- ‘‘Sec. 3402. Guaranteed farmer loans. tification and administrative (a) IN GENERAL.—The first sentence of Pub- ‘‘Sec. 3403. Provision of information to bor- lic Law 91–229 (25 U.S.C. 488) is amended— expenses. rowers. (1) in subsection (a), in the first sentence, ‘‘Sec. 3806. Distressed counties and areas ‘‘Sec. 3404. Notice of loan service programs. by striking ‘‘loans from’’ and all that follows and nondistressed counties. ‘‘Sec. 3405. Planting and production history ‘‘Sec. 3807. Development planning process. through ‘‘1929)’’ and inserting ‘‘direct loans guidelines. ‘‘Sec. 3808. Program development criteria. in a manner consistent with direct loans pur- ‘‘Sec. 3406. Special conditions and limita- ‘‘Sec. 3809. Approval of development plans suant to chapter 4 of subtitle A of the Con- tions on loans. and projects. solidated Farm and Rural Development ‘‘Sec. 3407. Graduation of borrowers. ‘‘Sec. 3810. Consent of States. Act’’; ‘‘Sec. 3408. Debt adjustment and credit coun- ‘‘Sec. 3811. Records. (2) in subsection (b)(1)— seling. ‘‘Sec. 3812. Annual report. (A) by striking ‘‘pursuant to section 205(c) ‘‘Sec. 3409. Security servicing. ‘‘Sec. 3813. Authorization of appropriations. of the Indian Land Consolidation Act (25 ‘‘Sec. 3410. Contracts on loan security prop- ‘‘Sec. 3814. Termination of authority. U.S.C. 2204(c))’’; and erties. (B) by inserting ‘‘or to intermediaries in ‘‘CHAPTER 5—NORTHERN GREAT PLAINS ‘‘Sec. 3411. Debt restructuring and loan serv- REGIONAL AUTHORITY order to establish revolving loan funds for icing. ‘‘Sec. 3821. Definitions. the purchase of highly fractionated land ‘‘Sec. 3412. Relief for mobilized military re- ‘‘Sec. 3822. Northern Great Plains Regional under that section’’ before the period at the servists from certain agricul- Authority. end; and tural loan obligations. ‘‘Sec. 3823. Interstate cooperation for eco- (3) by adding at the end the following: ‘‘Sec. 3413. Interest rate reduction program. nomic opportunity and effi- ‘‘(c) CONSULTATION REQUIRED.—In deter- ‘‘Sec. 3414. Homestead property. ciency. mining regulations and procedures to define ‘‘Sec. 3415. Transfer of inventory land. ‘‘Sec. 3824. Economic and community devel- eligible purchasers of highly fractionated ‘‘Sec. 3416. Target participation rates. opment grants. land under this section, the Secretary of Ag- ‘‘Sec. 3417. Compromise or adjustment of ‘‘Sec. 3825. Supplements to Federal grant riculture shall consult with the Secretary of debts or claims by guaranteed programs. the Interior.’’. lender. ‘‘Sec. 3826. Multistate and local develop- SEC. 5103. REMOVAL OF DUPLICATIVE APPRAIS- ‘‘Sec. 3418. Waiver of mediation rights by ment districts and organiza- ALS. borrowers. tions and Northern Great Notwithstanding any other law (including ‘‘Sec. 3419. Borrower training. Plains Inc. regulations), in making loans under the first ‘‘Sec. 3420. Loan assessments. ‘‘Sec. 3827. Distressed counties and areas section of Public Law 91–229 (25 U.S.C. 488), ‘‘Sec. 3421. Supervised credit. and nondistressed counties. borrowers who are Indian tribes, members of ‘‘Sec. 3422. Market placement. ‘‘Sec. 3828. Development planning process. Indian tribes, or tribal corporations shall ‘‘Sec. 3423. Recordkeeping of loans by gender ‘‘Sec. 3829. Program development criteria. only be required to obtain 1 appraisal under of borrower. ‘‘Sec. 3830. Approval of development plans an appraisal standard recognized as of the ‘‘Sec. 3424. Crop insurance requirement. and projects. date of enactment of this Act by the Sec- ‘‘Sec. 3425. Loan and loan servicing limita- retary or the Secretary of the Interior. ‘‘Sec. 3831. Consent of States. tions. ‘‘Sec. 3832. Records. TITLE VI—RURAL DEVELOPMENT ‘‘Sec. 3426. Short form certification of farm ‘‘Sec. 3833. Annual report. Subtitle A—Reorganization of the Consoli- program borrower compliance. ‘‘Sec. 3834. Authorization of appropriations. dated Farm and Rural Development Act ‘‘Sec. 3427. Underwriting forms and stand- ‘‘Sec. 3835. Termination of authority. ards. SEC. 6001. REORGANIZATION OF THE CONSOLI- ‘‘Subtitle C—General Provisions DATED FARM AND RURAL DEVELOP- ‘‘Sec. 3428. Beginning farmer individual de- MENT ACT. velopment accounts pilot pro- ‘‘Sec. 3901. Full faith and credit. Title III of the Agricultural Act of 1961 (7 gram. ‘‘Sec. 3902. Purchase and sale of guaranteed U.S.C. 1921 et seq.) is amended to read as fol- ‘‘Sec. 3429. Farmer loan pilot projects. portions of loans. lows: ‘‘Sec. 3430. Prohibition on use of loans for ‘‘Sec. 3903. Administration. ‘‘Sec. 3904. Loan moratorium and policy on ‘‘TITLE III—AGRICULTURAL CREDIT certain purposes. ‘‘Sec. 3431. Authorization of appropriations foreclosures. ‘‘SEC. 3001. SHORT TITLE; TABLE OF CONTENTS. and allocation of funds. ‘‘Sec. 3905. Oil and gas royalty payments on ‘‘(a) SHORT TITLE.—This title may be cited ‘‘Subtitle B—Rural Development loans. as the ‘Consolidated Farm and Rural Devel- ‘‘Sec. 3906. Taxation. opment Act’. ‘‘CHAPTER 1—RURAL COMMUNITY PROGRAMS ‘‘Sec. 3907. Conflicts of interest. ‘‘(b) TABLE OF CONTENTS.—The table of ‘‘Sec. 3501. Water and waste disposal loans, ‘‘Sec. 3908. Loan summary statements. contents of this title is as follows: loan guarantees, and grants. ‘‘Sec. 3909. Certified lenders program. ‘‘TITLE III—AGRICULTURAL CREDIT ‘‘Sec. 3502. Community facilities loans, loan ‘‘Sec. 3910. Loans to resident aliens. ‘‘Sec. 3001. Short title; table of contents. guarantees, and grants. ‘‘Sec. 3911. Expedited clearing of title to in- ‘‘Sec. 3002. Definitions. ‘‘Sec. 3503. Health care services. ventory property.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00107 Fmt 4624 Sfmt 0655 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4540 CONGRESSIONAL RECORD — SENATE June 25, 2012 ‘‘Sec. 3912. Transfer of land to Secretary. joint operation, governmental entity, or ‘‘(B) a major disaster or emergency des- ‘‘Sec. 3913. Competitive sourcing limita- other legal organization, as determined by ignated by the President under the Robert T. tions. the Secretary. Stafford Disaster Relief and Emergency As- ‘‘Sec. 3914. Regulations. ‘‘(12) FARM.—The term ‘farm’ means an op- sistance Act (42 U.S.C. 5121 et seq.). ‘‘SEC. 3002. DEFINITIONS. eration involved in— ‘‘(23) PRIMARY LOAN SERVICE PROGRAM.— ‘‘In this title (unless the context otherwise ‘‘(A) the production of an agricultural The term ‘primary loan service program’ requires): commodity; means, with respect to a farmer program ‘‘(1) ABLE TO OBTAIN CREDIT ELSEWHERE.— ‘‘(B) ranching; or loan— The term ‘able to obtain credit elsewhere’ ‘‘(C) aquaculture. ‘‘(A) loan consolidation, rescheduling, or means able to obtain a loan from a produc- ‘‘(13) FARMER.—The term ‘farmer’ means reamortization; tion credit association, a Federal land bank, an individual or entity engaged primarily ‘‘(B) interest rate reduction, including the or other responsible cooperative or private and directly in— use of the limited resource program; credit source (or, in the case of a borrower ‘‘(A) the production of an agricultural ‘‘(C) loan restructuring, including deferral, under section 3106, the borrower may be able commodity; to obtain a loan under section 3101) at rea- set aside, or writing down of the principal or ‘‘(B) ranching; or sonable rates and terms, taking into consid- accumulated interest charges, or both, of the ‘‘(C) aquaculture. eration prevailing private and cooperative loan; or ‘‘(14) FARMER PROGRAM LOAN.—The term rates and terms in the community in or near ‘‘(D) any combination of actions described ‘farmer program loan’ means— which the applicant resides for loans for in subparagraphs (A), (B), and (C). ‘‘(A) a farm ownership loan under section similar purposes and periods of time. ‘‘(24) PRIME FARMLAND.—The term ‘prime 3101; ‘‘(2) AGRICULTURAL CREDIT INSURANCE farmland’ means prime farmland and unique ‘‘(B) a conservation loan under section FUND.—The term ‘Agricultural Credit Insur- farmland (as defined in subsections (a) and ance Fund’ means the fund established under 3103; (b) of section 657.5 of title 7, Code of Federal section 3401. ‘‘(C) an operating loan under section 3201; Regulations (1980)). ‘‘(3) APPROVED LENDER.—The term ‘ap- ‘‘(D) an emergency loan under section 3301; ‘‘(25) PROJECT.—For purposes of section proved lender’ means— ‘‘(E) an economic emergency loan under 3501, the term ‘project’ includes a facility ‘‘(A) a lender approved prior to October 28, section 202 of the Emergency Agricultural providing central service or a facility serv- 1992, by the Secretary under the approved Credit Adjustment Act of 1978 (7 U.S.C. prec. ing an individual property, or both. lender program established by exhibit A to 1961 note; Public Law 95–334); ‘‘(26) QUALIFIED BEGINNING FARMER.—The subpart B of part 1980 of title 7, Code of Fed- ‘‘(F) a loan for a farm service building term ‘qualified beginning farmer’ means an eral Regulations (as in effect on January 1, under section 502 of the Housing Act of 1949 applicant, regardless of whether the appli- 1991); or (42 U.S.C. 1472); cant is participating in a program under sec- ‘‘(B) a lender certified under section 3909. ‘‘(G) an economic opportunity loan under tion 3107, who— ‘‘(4) AQUACULTURE.—The term ‘aqua- section 602 of the Economic Opportunity Act ‘‘(A) is eligible for assistance under this culture’ means the culture or husbandry of of 1964 (Public Law 88–452; 42 U.S.C. 2942 title; aquatic animals or plants by private indus- note) (as it existed before the amendment ‘‘(B) has not operated a farm, or has oper- try for commercial purposes, including the made by section 683(a) of the Omnibus Budg- ated a farm for not more than 10 years; culture and growing of fish by private indus- et Reconciliation Act of 1981 (Public Law 97– ‘‘(C) in the case of a cooperative, corpora- try for the purpose of creating or aug- 35; 95 Stat. 519)); tion, partnership, or joint operation, has menting publicly owned and regulated stocks ‘‘(H) a softwood timber loan under section members, stockholders, partners, or joint op- of fish. 608 of the Agricultural Programs Adjustment erators who are all related to each other by ‘‘(5) BEGINNING FARMER.—The term ‘begin- Act of 1984 (7 U.S.C. 1981 note; Public Law 98– blood or marriage; 258); or ning farmer’ has the meaning given the term ‘‘(D) in the case of a farmer who is the ‘‘(I) any other loan described in section by the Secretary. owner and operator of a farm— 343(a)(10) of this title (as it existed before the ‘‘(6) BORROWER.— ‘‘(i) in the case of a loan made to an indi- amendment made by section 2 of the Agri- ‘‘(A) IN GENERAL.—Except as provided in vidual, individually or with the immediate culture Reform, Food, and Jobs Act of 2012) subparagraph (B), the term ‘borrower’ means family of the applicant— an individual or entity who has an out- that is outstanding on the date of enactment ‘‘(I) materially and substantially partici- standing obligation to the Secretary under of that Act. pates in the operation of the farm; and any loan made or guaranteed under this ‘‘(15) FARM SERVICE AGENCY.—The term ‘‘(II) provides substantial day-to-day labor title, without regard to whether the loan has ‘Farm Service Agency’ means the offices of and management of the farm, consistent been accelerated. the Farm Service Agency to which the Sec- with the practices in the State or county in ‘‘(B) EXCLUSIONS.—The term ‘borrower’ retary delegates responsibility to carry out does not include an individual or entity all this title. which the farm is located; or ‘‘(ii)(I) in the case of a loan made to a co- of whose loans and accounts have been fore- ‘‘(16) GOVERNMENTAL ENTITY.—The term closed on or liquidated, voluntarily or other- ‘governmental entity’ means any agency of operative, corporation, partnership, or joint wise. the United States, a State, or a unit of local operation, has members, stockholders, partners, or joint operators who materially and ‘‘(7) COUNTY COMMITTEE.—The term ‘county government of a State, or subdivision there- committee’ means the appropriate county of. substantially participate in the operation of committee established under section 8(b)(5) ‘‘(17) GUARANTEE.—The term ‘guarantee’ the farm; and of the Soil Conservation and Domestic Allot- means guaranteeing the payment of a loan ‘‘(II) in the case of a loan made to a cor- ment Act (16 U.S.C. 590h(b)(5)). originated, held, and serviced by a private fi- poration, has stockholders who all qualify ‘‘(8) DEBT FORGIVENESS.— nancial agency, or lender, approved by the individually as beginning farmers; ‘‘(A) IN GENERAL.—Except as provided in Secretary. ‘‘(E) in the case of an applicant seeking to subparagraph (B), the term ‘debt forgiveness’ ‘‘(18) HIGHLY ERODIBLE LAND.—The term become an owner and operator of a farm— means reducing or terminating a loan made ‘highly erodible land’ has the meaning given ‘‘(i) in the case of a loan made to an indi- or guaranteed under this title, in a manner the term in section 1201(a) of the Food Secu- vidual, individually or with the immediate that results in a loss to the Secretary, rity Act of 1985 (16 U.S.C. 3801(a)). family of the applicant, will— through— ‘‘(19) HOMESTEAD RETENTION.—The term ‘‘(I) materially and substantially partici- ‘‘(i) writing down or writing off a loan ‘homestead retention’ means homestead re- pate in the operation of the farm; and under section 3411; tention as authorized under section 3414. ‘‘(II) provide substantial day-to-day labor ‘‘(ii) compromising, adjusting, reducing, or ‘‘(20) INDIAN TRIBE.—The term ‘Indian and management of the farm, consistent charging-off a debt or claim under section tribe’ means a Federal and State-recognized with the practices in the State or county in 3903; Indian tribe or other federally recognized In- which the farm is located; or ‘‘(iii) paying a loss on a guaranteed loan dian tribal group (including a Tribal College ‘‘(ii)(I) in the case of a loan made to a co- under this title; or or University, as defined in section 316(b) of operative, corporation, partnership, or joint ‘‘(iv) discharging a debt as a result of the Higher Education Act of 1965 (20 U.S.C. operation, will have members, stockholders, bankruptcy. 1059c(b)). partners, or joint operators who will materi- ‘‘(B) LOAN RESTRUCTURING.—The term ‘debt ‘‘(21) LOAN SERVICE PROGRAM.—The term ally and substantially participate in the op- forgiveness’ does not include consolidation, ‘loan service program’ means, with respect eration of the farm; and rescheduling, reamortization, or deferral. to a farmer program loan borrower, a pri- ‘‘(II) in the case of a loan made to a cor- ‘‘(9) DEPARTMENT.—The term ‘Department’ mary loan service program or a homestead poration, has stockholders who will all qual- means the Department of Agriculture. retention program. ify individually as beginning farmers; ‘‘(10) DIRECT LOAN.—The term ‘direct loan’ ‘‘(22) NATURAL OR MAJOR DISASTER OR EMER- ‘‘(F) agrees to participate in such loan as- means a loan made by the Secretary from GENCY.—The term ‘natural or major disaster sessment, borrower training, and financial appropriated funds. or emergency’ means— management programs as the Secretary may ‘‘(11) ENTITY.—The term ‘entity’ means a ‘‘(A) a disaster due to nonmanmade causes require; corporation, farm cooperative, partnership, declared by the Secretary; or ‘‘(G)(i) does not own farm land; or

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‘‘(ii) directly or through interests in family ‘‘(V) release to the public notice of a peti- ‘‘(36) VETERAN.—The term ‘veteran’ has the farm corporations, owns farm land, the ag- tion filed or initiative of the Under Sec- meaning given the term in section 101 of gregate acreage of which does not exceed 30 retary under this subparagraph not later title 38, United States Code. percent of the average acreage of the farms, than 30 days after receipt of the petition or ‘‘(37) WETLAND.—The term ‘wetland’ has as the case may be, in the county in which the commencement of the initiative, as ap- the meaning given the term in section 1201(a) the farm operations of the applicant are lo- propriate; of the Food Security Act of 1985 (16 U.S.C. cated, as reported in the most recent census ‘‘(VI) make a determination under this 3801(a)). of agriculture taken in accordance with the subparagraph not less than 15 days, and not ‘‘(38) WILDLIFE.—The term ‘wildlife’ means Census of Agriculture Act of 1997 (7 U.S.C. more than 60 days, after the release of the fish or wildlife (as defined in section 2(a) of 2204g et seq.), except that this subparagraph notice under subclause (V); and the Lacey Act Amendments of 1981 (16 U.S.C. shall not apply to a loan made or guaranteed ‘‘(VII) submit to the Committee on Agri- 3371(a))). under chapter 2 of subtitle A; and culture of the House of Representatives and ‘‘Subtitle B—Rural Development ‘‘(H) demonstrates that the available re- the Committee on Agriculture, Nutrition, ‘‘CHAPTER 1—RURAL COMMUNITY sources of the applicant and any spouse of and Forestry of the Senate an annual report PROGRAMS the applicant are not sufficient to enable the on actions taken to carry out this subparagraph. ‘‘SEC. 3501. WATER AND WASTE DISPOSAL LOANS, applicant to farm on a viable scale. LOAN GUARANTEES, AND GRANTS. ‘‘(v) HAWAII AND PUERTO RICO.—Notwith- ‘‘(27) RECREATIONAL PURPOSE.—For pur- ‘‘(a) IN GENERAL.—The Secretary may poses of section 3410, the term ‘recreational standing any other provision of this sub- make grants and loans and issue loan guar- section, within the areas of the County of purpose’ has the meaning provided by the antees (including a guarantee of a loan fi- Honolulu, Hawaii, and the Commonwealth of Secretary, but shall include hunting. nanced by the net proceeds of a bond de- Puerto Rico, the Under Secretary may des- ‘‘(28) RURAL AND RURAL AREA.— scribed in section 142(a) of the Internal Rev- ignate any part of the areas as a rural area ‘‘(A) IN GENERAL.—Subject to any deter- enue Code of 1986) to eligible entities de- if the Under Secretary determines that the mination made under subparagraph (B), the scribed in subsection (b) for projects in rural part is not urban in character, other than terms ‘rural’ and ‘rural area’ mean any area areas that primarily serve rural residents to any area included in the Honolulu Census other than— provide for— Designated Place or the San Juan Census ‘‘(1) the development, storage, treatment, ‘‘(i) a city or town that has a population of Designated Place. greater than 50,000 inhabitants; and purification, or distribution of water or the ‘‘(C) EXCLUSIONS.—Notwithstanding any ‘‘(ii) any urbanized area contiguous and ad- collection, treatment, or disposal of waste; other provision of this paragraph, in deter- and jacent to a city or town described in clause mining which census blocks in an urbanized (i). ‘‘(2) financial assistance and other aid in area are not in a rural area (as defined in the planning of projects for purposes de- ‘‘(B) DETERMINATION OF AREAS RURAL IN this paragraph), the Secretary shall exclude CHARACTER.— scribed in paragraph (1). any cluster of census blocks that would oth- ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible ‘‘(i) IN GENERAL.—If part of an area de- erwise be considered not in a rural area only for assistance described in subsection (a) scribed in subparagraph (A)(ii) was eligible because the cluster is adjacent to not more are— under the definitions of the terms ‘rural’ and than 2 census blocks that are otherwise con- ‘‘(1) associations (including corporations ‘rural area’ in section 343 (as in effect on the sidered not in a rural area under this para- not operated for profit); day before the date of enactment of the Agri- graph. ‘‘(2) Indian tribes; culture Reform, Food, and Jobs Act of 2012) ‘‘(29) SEASONED DIRECT LOAN BORROWER.— ‘‘(3) public and quasi-public agencies; and for community facility, water and waste dis- The term ‘seasoned direct loan borrower’ ‘‘(4) in the case of a project to attach an in- posal, and broadband programs, that area means a borrower who could reasonably be dividual property in a rural area to a water shall remain eligible unless the Secretary, expected to qualify for commercial credit system to alleviate a health risk, an indi- acting through the Under Secretary for using criteria determined by the Secretary. vidual. Rural Development (referred to in this sub- ‘‘(30) SECRETARY.—The term ‘Secretary’ ‘‘(c) LOAN AND LOAN GUARANTEE REQUIRE- paragraph as the ‘Under Secretary’), deter- means the Secretary of Agriculture. MENTS.—In connection with loans made or mines the area is no longer rural, based on ‘‘(31) SOCIALLY DISADVANTAGED FARMER.— guaranteed under this section, the Secretary the criteria described in clause (iii). The term ‘socially disadvantaged farmer’ shall require the applicant— ‘‘(ii) OTHER AREAS.—On petition of a unit means a farmer who is a member of a so- ‘‘(1) to certify in writing, and the Sec- of local government in an urbanized area de- cially disadvantaged group. retary shall determine, that the applicant is scribed in subparagraph (A)(ii), or on the ini- ‘‘(32) SOCIALLY DISADVANTAGED GROUP.— unable to obtain sufficient credit elsewhere tiative of the Under Secretary, the Under The term ‘socially disadvantaged group’ to finance the actual needs of the applicant Secretary may determine that part of an means a group whose members have been at reasonable rates and terms, taking into area is rural, based on the criteria described subjected to racial, ethnic, or gender preju- consideration prevailing private and cooper- in clause (iii). dice because of the identity of the members ative rates and terms in the community in ‘‘(iii) CRITERIA.—In making a determina- as members of a group without regard to the or near which the applicant resides for loans tion under clause (i), the Under Secretary individual qualities of the members. for similar purposes and periods of time; and shall consider— ‘‘(33) SOLAR ENERGY.—The term ‘solar en- ‘‘(2) to furnish an appropriate written fi- ‘‘(I) population density; ergy’ means energy derived from sources nancial statement. ‘‘(II) economic conditions, favoring a rural (other than fossil fuels) and technologies in- ‘‘(d) GRANT AMOUNTS.— determination for areas facing— cluded in the Federal Nonnuclear Energy Re- ‘‘(1) MAXIMUM.—Except as otherwise pro- ‘‘(aa) chronic unemployment in excess of search and Development Act of 1974 (42 vided in this subsection, the amount of any statewide averages; U.S.C. 5901 et seq.). grant made under this section shall not ex- ‘‘(bb) sudden loss of employment from nat- ‘‘(34) STATE.—The term ‘State’ means— ceed 75 percent of the development cost of ural disaster or the loss of a significant em- ‘‘(A) in this title (other than subtitle A), the project for which the grant is provided. ployer in the area; or each of the 50 States, the Commonwealth of ‘‘(2) GRANT RATE.—The Secretary shall es- ‘‘(cc) chronic poverty demonstrated at the Puerto Rico, the Virgin Islands, Guam, tablish the grant rate for each project in census block or county level compared to American Samoa, the Commonwealth of the conformity with regulations issued by the statewide median household income; and Northern Mariana Islands, the Republic of Secretary that shall provide for a graduated ‘‘(III) commuting patterns, favoring a rural the Marshall Islands, the Federated States of scale of grant rates that establish higher determination for areas that can dem- Micronesia, and the Republic of Palau; and rates for projects in communities that onstrate higher proportions of the popu- ‘‘(B) in subtitle A, each of the 50 States, have— lation living and working in the area. the Commonwealth of Puerto Rico, the Vir- ‘‘(A) lower community population; ‘‘(iv) ADMINISTRATION.—In carrying out gin Islands, Guam, American Samoa, the ‘‘(B) higher rates of outmigration; and this subparagraph, the Under Secretary Commonwealth of the Northern Mariana Is- ‘‘(C) lower income levels. shall— lands, and, to the extent the Secretary deter- ‘‘(3) LOCAL SHARE REQUIREMENTS.—Grants ‘‘(I) not delegate the authority to carry mines it to be feasible and appropriate, the made under this section may be used to pay out this subparagraph; Republic of the Marshall Islands, the Fed- the local share requirements of another Fed- ‘‘(II) not make a determination under erated States of Micronesia, and the Repub- eral grant-in-aid program to the extent per- clause (i) until the date that is 3 years after lic of Palau. mitted under the law providing for the the date of enactment of the Agriculture Re- ‘‘(35) STATE BEGINNING FARMER PROGRAM.— grant-in-aid program. form, Food, and Jobs Act of 2012; The term ‘State beginning farmer program’ ‘‘(e) SPECIAL GRANTS.— ‘‘(III) consult with the applicable rural de- means any program that is— ‘‘(1) REVOLVING FUNDS FOR FINANCING velopment State or regional director of the ‘‘(A) carried out by, or under contract WATER AND WASTEWATER PROJECTS.— Department and the Governor of the respec- with, a State; and ‘‘(A) IN GENERAL.—The Secretary may tive State; ‘‘(B) designed to assist qualified beginning make grants to qualified, nonprofit entities ‘‘(IV) provide an opportunity to appeal to farmers in obtaining the financial assistance in rural areas to capitalize revolving funds the Under Secretary a determination made necessary to enter agriculture and establish for the purpose of providing financing to eli- under this subparagraph; viable farming operations. gible entities for—

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‘‘(i) predevelopment costs associated with ‘‘(IV) to provide potable water to commu- ‘‘(A) DEFINITION OF COOPERATIVE.—In this proposed water and wastewater projects or nities through other means. paragraph, the term ‘cooperative’ means a with existing water and wastewater systems; ‘‘(ii) JOINT PROPOSALS.— cooperative formed specifically for the pur- and ‘‘(I) IN GENERAL.—Subject to the restric- pose of the installation, expansion, improve- ‘‘(ii) short-term costs incurred for replace- tions in subparagraph (E), nothing in this ment, or operation of water supply or waste ment equipment, small-scale extension serv- paragraph precludes rural communities from disposal facilities or systems. ices, or other small capital projects that are submitting joint proposals for emergency ‘‘(B) LOANS AND GRANTS TO PERSONS OTHER not part of the regular operations and main- water assistance. THAN INDIVIDUALS.— tenance activities of existing water and ‘‘(II) CONSIDERATION OF RESTRICTIONS.—The ‘‘(i) IN GENERAL.—The Secretary shall wastewater systems. restrictions in subparagraph (E) shall be con- make or guarantee loans and make grants to ‘‘(B) MAXIMUM AMOUNT OF FINANCING.—The sidered in the aggregate, depending on the provide for the conservation, development, amount of financing made to an eligible en- number of communities involved. use, and control of water (including the ex- tity under this paragraph shall not exceed— ‘‘(E) RESTRICTIONS.— tension or improvement of existing water ‘‘(i) $100,000 for costs described in subpara- ‘‘(i) MAXIMUM INCOME.—No grant provided supply systems) and the installation or im- graph (A)(i); and under this paragraph shall be used to assist provement of drainage or waste disposal fa- ‘‘(ii) $100,000 for costs described in subpara- any rural area or community that has a me- cilities and essential community facilities, graph (A)(ii). dian household income in excess of the State including necessary related equipment, ‘‘(C) TERM.—The term of financing pro- nonmetropolitan median household income training, and technical assistance to— vided to an eligible entity under this para- according to the most recent decennial cen- ‘‘(I) rural water supply corporations, co- graph shall not exceed 10 years. sus of the United States. operatives, or similar entities; ‘‘(D) ADMINISTRATION.—The Secretary shall ‘‘(ii) SET-ASIDE FOR SMALLER COMMU- ‘‘(II) Indian tribes on Federal or State res- limit the amount of grant funds that may be NITIES.—Not less than 50 percent of the funds ervations and other federally recognized In- used by a grant recipient for administrative allocated under this paragraph shall be allo- dian tribes; costs incurred under this paragraph. cated to rural communities with populations ‘‘(III) rural or native villages in the State ‘‘(E) ANNUAL REPORT.—A nonprofit entity that do not exceed 3,000 inhabitants. of Alaska; receiving a grant under this paragraph shall ‘‘(F) MAXIMUM GRANTS.—Grants made submit to the Secretary an annual report under this paragraph may not exceed— ‘‘(IV) native tribal health consortiums; that describes the number and size of com- ‘‘(i) in the case of each grant made under ‘‘(V) public agencies; and munities served and the type of financing subparagraph (A)(i), $500,000; and ‘‘(VI) Native Hawaiian Home Lands. provided. ‘‘(ii) in the case of each grant made under ‘‘(ii) ELIGIBLE PROJECTS.—Loans and grants described in clause (i) shall be available only ‘‘(F) AUTHORIZATION OF APPROPRIATIONS.— subparagraph (A)(ii), $150,000. There is authorized to be appropriated to ‘‘(G) FULL FUNDING.—Subject to subpara- to provide the described water and waste fa- carry out this paragraph $30,000,000 for each graph (F), grants under this paragraph shall cilities and services to communities whose of fiscal years 2013 through 2017. be made in an amount equal to 100 percent of residents face significant health risks, as de- ‘‘(2) EMERGENCY AND IMMINENT COMMUNITY the costs of the projects conducted under termined by the Secretary, due to the fact WATER ASSISTANCE PROGRAM.— this paragraph. that a significant proportion of the residents ‘‘(A) IN GENERAL.—The Secretary shall pro- ‘‘(H) APPLICATION.— of the community do not have access to, or vide grants in accordance with this para- ‘‘(i) NATIONALLY COMPETITIVE APPLICATION are not served by, adequate affordable— graph to assist the residents of rural areas PROCESS.— ‘‘(I) water supply systems; or and small communities to secure adequate ‘‘(I) IN GENERAL.—The Secretary shall de- ‘‘(II) waste disposal facilities. quantities of safe water— velop a nationally competitive application ‘‘(iii) MATCHING REQUIREMENTS.—For enti- ‘‘(i) after a significant decline in the quan- process to award grants under this para- ties described under subclauses (III), (IV), or tity or quality of water available from the graph. (V) of clause (i) to be eligible to receive a water supplies of the rural areas and small ‘‘(II) REQUIREMENTS.—The process shall in- grant for water supply systems or waste dis- communities, or when such a decline is im- clude criteria for evaluating applications, in- posal facilities, the State in which the minent; or cluding population, median household in- project will occur shall provide 25 percent in ‘‘(ii) when repairs, partial replacement, or come, and the severity of the decline, or im- matching funds from non-Federal sources. significant maintenance efforts on estab- minent decline, in the quantity or quality of ‘‘(iv) CERTAIN AREAS TARGETED.— lished water systems would remedy— water. ‘‘(I) IN GENERAL.—Loans and grants under ‘‘(I) an acute or imminent shortage of qual- ‘‘(ii) TIMING OF REVIEW OF APPLICATIONS.— clause (i) shall be made only if the loan or ity water; or ‘‘(I) SIMPLIFIED APPLICATION.—The applica- grant funds will be used primarily to provide ‘‘(II) a significant or imminent decline in tion process developed by the Secretary water or waste services, or both, to residents the quantity or quality of water that is under clause (i) shall include a simplified ap- of a county or census area— available. plication form that will permit expedited ‘‘(aa) the per capita income of the resi- ‘‘(B) PRIORITY.—In carrying out subpara- consideration of an application for a grant dents of which is not more than 70 percent of graph (A), the Secretary shall— filed under this paragraph. the national average per capita income, as ‘‘(i) give priority to projects described in ‘‘(II) PRIORITY REVIEW.—In processing ap- determined by the Department of Commerce; subparagraph (A)(i); and plications for any water or waste grant or and ‘‘(ii) provide at least 70 percent of all loan authorized under this section, the Sec- ‘‘(bb) the unemployment rate of the resi- grants under this paragraph to those retary shall afford priority processing to an dents of which is not less than 125 percent of projects. application for a grant under this paragraph the national average unemployment rate, as ‘‘(C) ELIGIBILITY.—To be eligible to obtain to the extent funds will be available for an determined by the Bureau of Labor Statis- a grant under this paragraph, an applicant award on the application at the conclusion of tics. shall— priority processing. ‘‘(II) EXCEPTIONS.—Notwithstanding sub- ‘‘(i) be a public or private nonprofit entity; ‘‘(III) TIMING.—The Secretary shall, to the clause (I), loans and grants under clause (i) and maximum extent practicable, review and act may also be made if the loan or grant funds ‘‘(ii) in the case of a grant made under sub- on an application under this paragraph not will be used primarily to provide water or paragraph (A)(i), demonstrate to the Sec- later than 60 days after the date on which waste services, or both, to residents of— retary that the decline referred to in that the application is submitted to the Sec- ‘‘(aa) a rural area that was recognized as a subparagraph occurred, or will occur, not retary. colonia as of October 1, 1989; or later than 2 years after the date on which ‘‘(I) FUNDING.— ‘‘(bb) an area described under subclause the application was filed for the grant. ‘‘(i) RESERVATION.— (II), (III), or (VI) of clause (i). ‘‘(D) USES.— ‘‘(I) IN GENERAL.—For each fiscal year, not ‘‘(C) LOANS AND GRANTS TO INDIVIDUALS.— ‘‘(i) IN GENERAL.—Grants made under this less than 3 nor more than 5 percent of the ‘‘(i) IN GENERAL.—The Secretary shall paragraph may be used— total amount made available to carry out make or guarantee loans and make grants to ‘‘(I) for waterline extensions from existing this section for the fiscal year shall be re- individuals who reside in a community de- systems, laying of new waterlines, repairs, served for grants under this paragraph. scribed in subparagraph (B)(i) for the purpose significant maintenance, digging of new ‘‘(II) RELEASE.—Funds reserved under sub- of extending water supply and waste disposal wells, equipment replacement, and hook and clause (I) for a fiscal year shall be reserved systems, connecting the systems to the resi- tap fees; only until July 1 of the fiscal year. dences of the individuals, or installing ‘‘(II) for any other appropriate purpose as- ‘‘(ii) AUTHORIZATION OF APPROPRIATIONS.— plumbing and fixtures within the residences sociated with developing sources of, treating, In addition to funds made available under of the individuals to facilitate the use of the storing, or distributing water; clause (i), there is authorized to be appro- water supply and waste disposal systems. ‘‘(III) to assist communities in complying priated to carry out this paragraph ‘‘(ii) INTEREST.—Loans described in clause with the requirements of the Federal Water $35,000,000 for each of fiscal years 2013 (i) shall be at a rate of interest no greater Pollution Control Act (33 U.S.C. 1251 et seq.) through 2017. than the Federal Financing Bank rate on or the Safe Drinking Water Act (42 U.S.C. ‘‘(3) WATER AND WASTE FACILITY LOANS AND loans of a similar term at the time the loans 300f et seq.); and GRANTS TO ALLEVIATE HEALTH RISKS.— are made.

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‘‘(iii) AMORTIZATION.—The repayment of tribution of water or the collection, treat- ‘‘(1) have a population of less than 5,500 loans described in clause (i) shall be amor- ment, or disposal of waste in rural areas. permanent residents; tized over the expected life of the water sup- ‘‘(ii) SELECTION PRIORITY.—In selecting re- ‘‘(2) have a community water, wastewater, ply or waste disposal system to which the cipients of grants to be made under clause or waste disposal system that— residence of the borrower will be connected. (i), the Secretary shall give priority to non- ‘‘(A) is experiencing— ‘‘(iv) MANNER IN WHICH LOANS AND GRANTS profit organizations that have experience in ‘‘(i) an unanticipated reduction in the ARE TO BE MADE.—Loans and grants to indi- providing the technical assistance and train- quality of water, the quantity of water, or viduals under clause (i) shall be made— ing described in clause (i) to associations the ability to deliver water; or ‘‘(I) directly to the individuals by the Sec- serving rural areas in which— ‘‘(ii) some other deterioration in the sup- retary; or ‘‘(I) residents have low income; and ply of water to the community; ‘‘(II) to the individuals through the rural ‘‘(II) water supply systems or waste facili- ‘‘(B) is not adequate to meet the needs of water supply corporation, cooperative, or ties are unhealthful. the community; and similar entity, or public agency, providing ‘‘(iii) FUNDING.— ‘‘(C) requires immediate corrective action; the water supply or waste disposal services, ‘‘(I) IN GENERAL.—Except as provided in ‘‘(3) are experiencing outmigration; pursuant to regulations issued by the Sec- subclause (II), not less than 1 nor more than ‘‘(4) have a high percentage of low-income retary. 3 percent of any funds made available to residents; or ‘‘(D) PREFERENCE.—The Secretary shall carry out water and waste disposal projects ‘‘(5) are isolated from other significant give preference in the awarding of loans and described in subsection (a) for any fiscal year population centers. grants under subparagraphs (B) and (C) to shall be reserved for grants under this para- ‘‘(g) CURTAILMENT OR LIMITATION OF SERV- entities described in clause (i) of subparagraph. ICE PROHIBITED.—The service provided or graph (B) that propose to provide water sup- ‘‘(II) EXCEPTION.—The minimum amount made available through any such association ply or waste disposal services to the resi- specified in subclause (I) shall not apply if shall not be curtailed or limited by inclusion dents of Indian reservations, rural or native the aggregate amount of grant funds re- of the area served by such association within villages in the State of Alaska, Native Ha- quested by applications that qualify for the boundaries of any municipal corporation waiian Home Lands, and those rural subdivi- grants received by the Secretary from eligi- or other public body, or by the granting of sions commonly referred to as colonias, that ble nonprofit organizations for the fiscal any private franchise for similar service are characterized by substandard housing, year totals less than 1 percent of those funds. within such area during the term of such inadequate roads and drainage, and a lack of ‘‘(B) RURAL WATER AND WASTEWATER CIR- loan; nor shall the happening of any such adequate water or waste facilities. CUIT RIDER PROGRAM.— event be the basis of requiring such associa- ‘‘(E) RELATIONSHIP TO OTHER AUTHORITY.— ‘‘(i) IN GENERAL.—The Secretary shall con- tion to secure any franchise, license, or per- Notwithstanding any other provision of law, tinue a national rural water and wastewater mit as a condition to continuing to serve the the head of any Federal agency may enter circuit rider program that— area served by the association at the time of into interagency agreements with Federal, ‘‘(I) is consistent with the activities and the occurrence of such event. State, tribal, and other entities to share re- results of the program conducted before Jan- ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— sources, including transferring and accepting uary 1, 2012, as determined by the Secretary; There are authorized to be appropriated to funds, equipment, or other supplies, to carry and carry out this section such sums as are nec- out the activities described in this para- ‘‘(II) received funding from the Secretary, essary. graph. acting through the Administrator of the ‘‘SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARANTEES, AND GRANTS. ‘‘(F) AUTHORIZATION OF APPROPRIATIONS.— Rural Utilities Service. ‘‘(a) IN GENERAL.—The Secretary may There are authorized to be appropriated— ‘‘(ii) AUTHORIZATION OF APPROPRIATIONS.— make grants and loans and issue loan guar- ‘‘(i) for grants under this paragraph, There is authorized to be appropriated to antees (including a guarantee of a loan fi- $60,000,000 for each fiscal year; carry out this subparagraph $25,000,000 for nanced by the net proceeds of a bond de- ‘‘(ii) for loans under this paragraph, fiscal year 2013 and each fiscal year there- scribed in section 142(a) of the Internal Rev- $60,000,000 for each fiscal year; and after. enue Code of 1986) to eligible entities de- ‘‘(iii) in addition to grants provided under ‘‘(6) SEARCH PROGRAM.— scribed in subsection (b) for projects in rural clause (i), for grants under this section to ‘‘(A) IN GENERAL.—The Secretary may es- areas that primarily serve rural residents to benefit Indian tribes, $20,000,000 for each fis- tablish a Special Evaluation Assistance for provide for— cal year. Rural Communities and Households ‘‘(1) essential community facilities, includ- ‘‘(4) SOLID WASTE MANAGEMENT GRANTS.— (SEARCH) program to make predevelopment ing— ‘‘(A) IN GENERAL.—The Secretary may planning grants for feasibility studies, de- ‘‘(A) necessary equipment; make grants to nonprofit organizations for sign assistance, and technical assistance, to ‘‘(B) recreational developments; and the provision of regional technical assist- financially distressed communities in rural ‘‘(2) financial assistance and other assistance to local and regional governments and areas with populations of 2,500 or fewer in- ance in the planning of projects for purposes related agencies for the purpose of reducing habitants for water and waste disposal described in this section. or eliminating pollution of water resources projects described in this section. ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible and improving the planning and manage- ‘‘(B) TERMS.— for assistance described in subsection (a) ment of solid waste disposal facilities in ‘‘(i) DOCUMENTATION.—With respect to are— rural areas. grants made under this paragraph, the Sec- ‘‘(1) associations (including corporations ‘‘(B) TECHNICAL ASSISTANCE GRANT retary shall require the lowest quantity of not operated for profit); AMOUNTS.—Grants made under this para- documentation practicable. ‘‘(2) Indian tribes (including groups of indi- graph for the provision of technical assist- ‘‘(ii) MATCHING.—Notwithstanding any viduals described in paragraph (4) of section ance shall be made for 100 percent of the cost other provision of this section, the Secretary 815 of the Native American Programs Act of of the technical assistance. may fund up to 100 percent of the eligible 1974 (42 U.S.C. 2992c)); and ‘‘(C) AUTHORIZATION OF APPROPRIATIONS.— costs of grants provided under this para- ‘‘(3) public and quasi-public agencies. There is authorized to be appropriated to graph, as determined by the Secretary. ‘‘(c) LOAN AND LOAN GUARANTEE REQUIRE- carry out this paragraph $10,000,000 for each ‘‘(iii) FUNDING.—The Secretary may use MENTS.— of fiscal years 2013 through 2017 not more than 4 percent of the total amount ‘‘(1) IN GENERAL.—In connection with loans ‘‘(5) RURAL WATER AND WASTEWATER TECH- of funds made available for a fiscal year for made or guaranteed under this section, the NICAL ASSISTANCE AND TRAINING PROGRAMS.— water, waste disposal, and essential commu- Secretary shall require the applicant— ‘‘(A) GRANTS TO NONPROFITS.— nity facility activities under this chapter to ‘‘(A) to certify in writing, and the Sec- ‘‘(i) IN GENERAL.—The Secretary may make carry out this paragraph. retary shall determine, that the applicant is grants to nonprofit organizations to enable ‘‘(C) RELATIONSHIP TO OTHER AUTHORITY.— unable to obtain sufficient credit elsewhere the organizations to provide to associations ‘‘(i) IN GENERAL.—The funds and authori- to finance the actual needs of the applicant; that provide water and wastewater services ties provided under this paragraph are in ad- and in rural areas technical assistance and train- dition to any other funds or authorities the ‘‘(B) to furnish an appropriate written fi- ing— Secretary may have to carry out activities nancial statement. ‘‘(I) to identify, and evaluate alternative described in this section. ‘‘(2) DEBT RESTRUCTURING AND LOAN SERV- solutions to, problems relating to the obtain- ‘‘(ii) AUTHORIZED ACTIVITIES.—The Sec- ICING FOR COMMUNITY FACILITY LOANS.—The ing, storage, treatment, purification, or dis- retary may furnish financial assistance or Secretary shall establish and implement a tribution of water or the collection, treat- other aid in planning projects for the pur- program that is similar to the program es- ment, or disposal of waste in rural areas; poses described in subparagraph (A). tablished under section 3411, except that the ‘‘(II) to prepare applications to receive fi- ‘‘(f) PRIORITY.—In making grants and debt restructuring and loan servicing proce- nancial assistance for any purpose specified loans, and guaranteeing loans, for water, dures shall apply to delinquent community in subsection (a)(1) from any public or pri- wastewater, and waste disposal projects facility program loans to a hospital or vate source; and under this section, the Secretary shall give health care facility under subsection (a). ‘‘(III) to improve the operation and main- priority consideration to projects that serve ‘‘(d) GRANT AMOUNTS.— tenance practices at any existing works for rural communities that, as determined by ‘‘(1) MAXIMUM.—Except as otherwise pro- the storage, treatment, purification, or dis- the Secretary— vided in this subsection, the amount of any

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00111 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4544 CONGRESSIONAL RECORD — SENATE June 25, 2012 grant made under this section shall not ex- ‘‘(1) the development of— ‘‘(i) targets and strengthens the profit- ceed 75 percent of the development cost of ‘‘(A) health care services; ability and competitiveness of small- and the project for which the grant is provided. ‘‘(B) health education programs; and medium-sized farms that are structured as ‘‘(2) GRANT RATE.—The Secretary shall es- ‘‘(C) health care job training programs; and family farms; and tablish the grant rate for each project in ‘‘(2) the development and expansion of pub- ‘‘(ii) obtains agreement from an eligible conformity with regulations issued by the lic health-related facilities in the Delta re- agricultural producer group, farmer coopera- Secretary that shall provide for a graduated gion to address longstanding and unmet tive, or majority-controlled producer-based scale of grant rates that establish higher health needs of the region. business venture that is engaged in the value ‘‘(d) USE.—As a condition of the receipt of rates for projects in communities that chain on a marketing strategy. have— the grant, the eligible entity shall use the ‘‘(B) PRODUCER.—The term ‘producer’ ‘‘(A) low community population; grant to fund projects and activities de- means a farmer. ‘‘(B) high rates of outmigration; and scribed in subsection (c), based on input so- ‘‘(C) VALUE-ADDED AGRICULTURAL PROD- ‘‘(C) low income levels. licited from local governments, public health UCT.—The term ‘value-added agricultural ‘‘(3) LOCAL SHARE REQUIREMENTS.—Grants care providers, and other entities in the made under this section may be used to pay Delta region. product’ means any agricultural commodity the local share requirements of another Fed- ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— or product— eral grant-in-aid program to the extent per- There is authorized to be appropriated to the ‘‘(i) that— mitted under the law providing for the Secretary to carry out this section $3,000,000 ‘‘(I) has undergone a change in physical grant-in-aid program. for each of fiscal years 2013 through 2017. state; ‘‘(e) PRIORITY.—In making grants and ‘‘CHAPTER 2—RURAL BUSINESS AND ‘‘(II) was produced in a manner that en- loans, and guaranteeing loans under this sec- COOPERATIVE DEVELOPMENT hances the value of the agricultural com- tion, the Secretary shall give priority con- ‘‘SEC. 3601. BUSINESS PROGRAMS. modity or product, as demonstrated through sideration to projects that serve rural com- ‘‘(a) RURAL BUSINESS DEVELOPMENT a business plan that shows the enhanced munities that— GRANTS.— value, as determined by the Secretary; ‘‘(1) have a population of less than 20,000 ‘‘(1) IN GENERAL.—The Secretary may make ‘‘(III) is physically segregated in a manner permanent residents; grants under this subsection to eligible enti- that results in the enhancement of the value ‘‘(2) are experiencing outmigration; ties described in paragraph (2) in rural areas of the agricultural commodity or product; ‘‘(3) have a high percentage of low-income that primarily serve rural areas for purposes ‘‘(IV) is a source of farm-based renewable residents; or described in paragraph (3). energy, including E–85 fuel; or ‘‘(4) are isolated from other significant ‘‘(2) ELIGIBLE ENTITIES.—The Secretary ‘‘(V) is aggregated and marketed as a lo- population centers. may make grants under this subsection to— cally produced agricultural food product; and ‘‘(f) TRIBAL COLLEGES AND UNIVERSITIES.— ‘‘(A) governmental entities; ‘‘(ii) for which, as a result of the change in ‘‘(1) IN GENERAL.—The Secretary may make ‘‘(B) Indian tribes; and physical state or the manner in which the grants to an entity that is a Tribal College ‘‘(C) nonprofit entities. or University (as defined in section 316(b) of agricultural commodity or product was pro- ‘‘(3) ELIGIBLE PURPOSES FOR GRANTS.—Eli- duced, marketed, or segregated— the Higher Education Act of 1965 (20 U.S.C. gible entities that receive grants under this 1059c(b))) to provide the Federal share of the ‘‘(I) the customer base for the agricultural subsection may use the grant funds for— commodity or product is expanded; and cost of developing specific Tribal College or ‘‘(A) business opportunity projects that— ‘‘(II) a greater portion of the revenue de- University essential community facilities in ‘‘(i) identify and analyze business opportu- rived from the marketing, processing, or rural areas. nities; physical segregation of the agricultural com- ‘‘(2) FEDERAL SHARE.—The Secretary shall ‘‘(ii) identify, train, and provide technical establish the maximum percentage of the assistance to existing or prospective rural modity or product is available to the pro- cost of the project that may be covered by a entrepreneurs and managers; ducer of the commodity or product. grant under this subsection, except that the ‘‘(iii) assist in the establishment of new ‘‘(2) GRANTS.— Secretary may not require non-Federal fi- rural businesses and the maintenance of ex- ‘‘(A) IN GENERAL.—The Secretary may nancial support in an amount that is greater isting businesses, including through business make grants under this subsection to— than 5 percent of the total cost of the support centers; ‘‘(i) independent producers of value-added project. ‘‘(iv) conduct regional, community, and agricultural products; and ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— local economic development planning and ‘‘(ii) an agricultural producer group, farm- There is authorized to be appropriated to coordination, and leadership development; er cooperative, or majority-controlled pro- carry out this subsection $10,000,000 for each and ducer-based business venture, as determined of fiscal years 2013 through 2017. ‘‘(v) establish centers for training, tech- by the Secretary. ECHNICAL SSISTANCE FOR OMMUNITY ‘‘(g) T A C nology, and trade that will provide training ‘‘(B) GRANTS TO A PRODUCER.—A grantee FACILITIES PROJECTS.— to rural businesses in the use of interactive under subparagraph (A)(i) shall use the ‘‘(1) IN GENERAL.—Subject to paragraph (2), communications technologies to develop grant— the Secretary may use funds made available international trade opportunities and mar- ‘‘(i) to develop a business plan or perform for community facilities programs author- kets; and a feasibility study to establish a viable mar- ized under this section to provide technical ‘‘(B) projects that support the development keting opportunity (including through mid- assistance to applicants and participants for of business enterprises that finance or facili- community facilities programs. tier value chains) for value-added agricul- tate— tural products; or ‘‘(2) FUNDING.—The Secretary may use not ‘‘(i) the development of small and emerg- ‘‘(ii) to provide capital to establish alli- more than 3 percent of the amount of funds ing private business enterprise; made available to participants for a fiscal ances or business ventures that allow the ‘‘(ii) the establishment, expansion, and op- producer to better compete in domestic or year for a community facilities program to eration of rural distance learning networks; provide technical assistance described in international markets. ‘‘(iii) the development of rural learning ‘‘(C) GRANTS TO AN AGRICULTURAL PRO- paragraph (1). programs that provide educational instruc- ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— DUCER GROUP, COOPERATIVE OR PRODUCER- tion or job training instruction related to There are authorized to be appropriated to BASED BUSINESS VENTURE.—A grantee under carry out this section such sums as are nec- potential employment or job advancement to subparagraph (A)(ii) shall use the grant— essary. adult students; and ‘‘(i) to develop a business plan for viable ‘‘(iv) the provision of technical assistance ‘‘SEC. 3503. HEALTH CARE SERVICES. marketing opportunities in emerging mar- and training to rural communities for the ‘‘(a) PURPOSE.—The purpose of this section kets for a value-added agricultural product; purpose of improving passenger transpor- is to address the continued unmet health or tation services or facilities. needs in the Delta region through coopera- ‘‘(ii) to develop strategies that are in- ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— tion among health care professionals, insti- tended to create marketing opportunities in There is authorized to be appropriated to the tutions of higher education, research institu- emerging markets for the value-added agri- tions, and other individuals and entities in Secretary to carry out this subsection $65,000,000 for each of fiscal years 2013 cultural product. the region. ‘‘(D) AWARD SELECTION.— ‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In through 2017, to remain available until ex- ‘‘(i) PRIORITY.—In awarding grants under this section, the term ‘eligible entity’ means pended. this subsection, the Secretary shall give pri- a consortium of regional institutions of ‘‘(b) VALUE-ADDED AGRICULTURAL PRO- higher education, academic health and re- DUCER GRANTS.— ority to projects— search institutes, and economic development ‘‘(1) DEFINITIONS.—In this subsection: ‘‘(I) that contribute to increasing opportu- entities located in the Delta region that ‘‘(A) MID-TIER VALUE CHAIN.—The term nities for operators of small- and medium- have experience in addressing the health ‘mid-tier value chain’ means a local and re- sized farms that are structured as family care issues in the region. gional supply network that links inde- farms; or ‘‘(c) GRANTS.—To carry out the purpose dependent producers with businesses and co- ‘‘(II) at least 1⁄4 of the recipients of which scribed in subsection (a), the Secretary may operatives that market value-added agricul- are beginning farmers or socially disadvan- award a grant to an eligible entity for— tural products in a manner that— taged farmers.

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‘‘(ii) RANKING.—In evaluating and ranking shall submit to the Secretary an application opportunities that will improve the eco- proposals under this subsection, the Sec- containing a plan for the establishment and nomic conditions of rural areas; retary shall provide substantial weight to operation by the institution of 1 or more ‘‘(iv) commit to providing technical assist- the priorities described in clause (i). centers for cooperative development. ance and other services to underserved and ‘‘(E) AMOUNT OF GRANT.— ‘‘(B) REQUIREMENTS.—The Secretary may economically distressed areas in rural areas ‘‘(i) IN GENERAL.—The total amount pro- approve an application if the plan contains of the United States; vided to a grant recipient under this sub- the following: ‘‘(v) demonstrate a commitment to— section shall not exceed $500,000. ‘‘(i) A provision that substantiates that the ‘‘(I) networking with and sharing the re- ‘‘(ii) MAJORITY-CONTROLLED, PRODUCER- center will effectively serve rural areas in sults of the efforts of the center with other BASED BUSINESS VENTURES.—The total the United States. cooperative development centers and other amount of all grants provided to majority- ‘‘(ii) A provision that the primary objec- organizations involved in rural economic de- controlled, producer-based business ventures tive of the center will be to improve the eco- velopment efforts; and under this subsection for a fiscal year shall nomic condition of rural areas through coop- ‘‘(II) developing multiorganization and not exceed 10 percent of the amount of funds erative development. multistate approaches to addressing the eco- used to make all grants for the fiscal year ‘‘(iii) A description of the activities that nomic development and cooperative needs of under this subsection. the center will carry out to accomplish the rural areas; and ‘‘(F) TERM.—The term of a grant under this objective, which may include programs— paragraph shall not exceed 3 years. ‘‘(vi) commit to providing a 25 percent ‘‘(I) for applied research and feasibility matching contribution with private funds ‘‘(G) SIMPLIFIED APPLICATION.—The Sec- studies that may be useful to individuals, co- retary shall offer a simplified application and in-kind contributions, except that the operatives, small businesses, and other simi- form and process for project proposals re- Secretary shall not require non-Federal fi- lar entities in rural areas served by the cen- questing less than $50,000 under this sub- nancial support in an amount that is greater ter; section. than 5 percent in the case of a 1994 institu- ‘‘(II) for the collection, interpretation, and ‘‘(3) FUNDING.— tion (as defined in section 532 of the Equity dissemination of information that may be ‘‘(A) AUTHORIZATION OF APPROPRIATIONS.— in Educational Land-Grant Status Act of useful to individuals, cooperatives, small There is authorized to be appropriated to 1994 (7 U.S.C. 301 note; Public Law 103–382)). carry out this subsection $40,000,000 for each businesses, and other similar entities in ‘‘(6) GRANT PERIOD.— of fiscal years 2013 through 2017. rural areas served by the center; ‘‘(A) IN GENERAL.—A grant awarded to a ‘‘(III) providing training and instruction ‘‘(B) RESERVATION OF FUNDS FOR PROJECTS center that has received no prior funding for individuals, cooperatives, small busi- TO BENEFIT BEGINNING FARMERS, SOCIALLY under this subsection shall be made for a pe- nesses, and other similar entities in rural DISADVANTAGED FARMERS, AND MID-TIER riod of 1 year. VALUE CHAINS.— areas served by the center; ‘‘(B) MULTIYEAR GRANTS.—If the Secretary ‘‘(i) IN GENERAL.—The Secretary shall re- ‘‘(IV) providing loans and grants to indi- determines it to be in the best interest of the serve 10 percent of the amounts made avail- viduals, cooperatives, small businesses, and program, the Secretary shall award grants able for each fiscal year under this sub- other similar entities in rural areas served for a period of more than 1 year, but not section to fund projects that benefit begin- by the center; more than 3 years, to a center that has suc- ning farmers or socially disadvantaged farm- ‘‘(V) providing technical assistance, re- cessfully met the requirements of paragraph ers. search services, and advisory services to in- (5)(B), as determined by the Secretary. dividuals, cooperatives, small businesses, ‘‘(ii) MID-TIER VALUE CHAINS.—The Sec- ‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.— retary shall reserve 10 percent of the and other similar entities in rural areas The Secretary may extend for 1 additional amounts made available for each fiscal year served by the center; and 12-month period the period during which a under this subsection to fund applications of ‘‘(VI) providing for the coordination of grantee may use a grant made under this services and sharing of information by the eligible entities described in paragraph (2) subsection. center. that propose to develop mid-tier value ‘‘(8) TECHNICAL ASSISTANCE TO PREVENT EX- ‘‘(iv) A description of the contributions chains. CESSIVE UNEMPLOYMENT OR UNDEREMPLOY- that the activities are likely to make to the ‘‘(iii) UNOBLIGATED AMOUNTS.—Any MENT.— improvement of the economic conditions of amounts in the reserves for a fiscal year es- ‘‘(A) IN GENERAL.—In carrying out this sub- the rural areas for which the center will pro- tablished under clauses (i) and (ii) that are section, the Secretary may provide technical vide services. not obligated by June 30 of the fiscal year assistance to alleviate or prevent conditions ‘‘(v) Provisions that the center, in carrying shall be available to the Secretary to make of excessive unemployment, underemploy- out the activities, will seek, if appropriate, grants under this subsection to eligible enti- ment, outmigration, or low employment the advice, participation, expertise, and as- ties in any State, as determined by the Sec- growth in economically distressed rural retary. sistance of representatives of business, in- areas that the Secretary determines have a ‘‘(C) MANDATORY FUNDING.—Of the funds of dustry, educational institutions, the Federal substantial need for the assistance. the Commodity Credit Corporation, the Sec- Government, and State and local govern- ‘‘(B) INCLUSIONS.—The assistance may in- retary shall use to carry out this subsection ments. clude planning and feasibility studies, man- $12,500,000 for each of fiscal years 2014 ‘‘(vi) Provisions that the center will take agement and operational assistance, and through 2017, to remain available until ex- all practicable steps to develop continuing studies evaluating the need for the develop- pended. sources of financial support for the center, ment potential of projects that increase em- ‘‘(c) RURAL COOPERATIVE DEVELOPMENT particularly from sources in the private sec- GRANTS.— tor. ployment and improve economic growth in ‘‘(1) DEFINITIONS.—In this subsection: ‘‘(vii) Provisions for— the areas. ‘‘(A) NONPROFIT INSTITUTION.—The term ‘‘(I) monitoring and evaluating the activi- ‘‘(9) GRANTS TO DEFRAY ADMINISTRATIVE ‘nonprofit institution’ means any organiza- ties by the nonprofit institution operating COSTS.— tion or institution, including an accredited the center; and ‘‘(A) IN GENERAL.—The Secretary may institution of higher education, no part of ‘‘(II) accounting for funds received by the make grants to defray not to exceed 75 per- the net earnings of which inures, or may institution under this section. cent of the costs incurred by organizations lawfully inure, to the benefit of any private ‘‘(5) AWARDING GRANTS.— and public bodies to carry out projects for shareholder or individual. ‘‘(A) IN GENERAL.—Grants made under which grants or loans are made under this ‘‘(B) UNITED STATES.—The term ‘United paragraph (2) shall be made on a competitive subsection. States’ means— basis. ‘‘(B) COST-SHARING.—For purposes of deter- ‘‘(i) the several States; and ‘‘(B) PREFERENCE.—In making grants under mining the non-Federal share of the costs, ‘‘(ii) the District of Columbia. paragraph (2), the Secretary shall give pref- the Secretary shall include contributions in ‘‘(2) GRANTS.—The Secretary shall make erence to grant applications providing for cash and in kind, fairly evaluated, including grants under this subsection to nonprofit in- the establishment of centers for rural coop- premises, equipment, and services. stitutions for the purpose of enabling the erative development that— ‘‘(10) COOPERATIVE RESEARCH PROGRAM.— nonprofit institutions to establish and oper- ‘‘(i) demonstrate a proven track record in The Secretary shall offer to enter into a co- ate centers for rural cooperative develop- carrying out activities to promote and assist operative research agreement with 1 or more ment. the development of cooperatively and mutu- qualified academic institutions in each fiscal ‘‘(3) GOALS.—The goals of a center funded ally owned businesses; year to conduct research on the effects of all under this subsection shall be to facilitate ‘‘(ii) demonstrate previous expertise in types of cooperatives on the national econ- the creation of jobs in rural areas through providing technical assistance in rural areas omy. the development of new rural cooperatives, to promote and assist the development of co- ‘‘(11) ADDRESSING NEEDS OF MINORITY COM- value -added processing, and rural busi- operatively and mutually owned businesses; MUNITIES.— nesses. ‘‘(iii) demonstrate the ability to assist in ‘‘(A) IN GENERAL.—If the total amount ap- ‘‘(4) APPLICATION.— the retention of businesses, facilitate the es- propriated under paragraph (13) for a fiscal ‘‘(A) IN GENERAL.—Any nonprofit institu- tablishment of cooperatives and new cooper- year exceeds $7,500,000, the Secretary shall tion seeking a grant under paragraph (2) ative approaches, and generate employment reserve an amount equal to 20 percent of the

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total amount appropriated for grants for co- ‘‘(2) LOAN PURPOSES.—The Secretary may a farmer cooperative established for the pur- operative development centers, individual make business and industry loans to public, pose of processing an agricultural com- cooperatives, or groups of cooperatives— private, or cooperative organizations orga- modity. ‘‘(i) that serve socially disadvantaged nized for profit or nonprofit, private invest- ‘‘(B) PROCESSING CONTRACTS DURING INITIAL groups; and ment funds that invest primarily in coopera- PERIOD.—A cooperative described in subpara- ‘‘(ii) a majority of the boards of directors tive organizations, or to individuals— graph (A) for which a farmer receives a guar- or governing boards of which are comprised ‘‘(A) to improve, develop, or finance busi- antee to purchase stock under that subpara- of individuals who are members of socially ness, industry, and employment and improve graph may contract for services to process disadvantaged groups. the economic and environmental climate in agricultural commodities or otherwise proc- ‘‘(B) INSUFFICIENT APPLICATIONS.—To the rural communities, including pollution ess value added for the period beginning on extent there are insufficient applications to abatement and control; the date of the startup of the cooperative in carry out subparagraph (A), the Secretary ‘‘(B) to conserve, develop, and use water order to provide adequate time for the plan- shall use the funds as otherwise authorized for aquaculture purposes in rural areas; and ning and construction of the processing facil- by this subsection. ‘‘(C) to reduce the reliance on nonrenew- ity of the cooperative. ‘‘(12) INTERAGENCY WORKING GROUP.—Not able energy resources by encouraging the de- ‘‘(C) FINANCIAL INFORMATION.—Financial later than 90 days after the date of enact- velopment and construction of renewable en- information required by the Secretary from ment of the Agriculture Reform, Food, and ergy systems (including solar energy sys- a farmer as a condition of making a business Jobs Act of 2012, the Secretary shall coordi- tems, wind energy systems, and anaerobic and industry loan guarantee under this para- nate and chair an interagency working group digestors for the purpose of energy genera- graph shall be provided in the manner gen- to foster cooperative development and en- tion), including the modification of existing erally required by commercial agricultural sure coordination with Federal agencies and systems, in rural areas. lenders in the applicable area. national and local cooperative organizations ‘‘(3) LOAN GUARANTEES FOR CERTAIN ‘‘(9) LOANS TO COOPERATIVES.— that have cooperative programs and inter- LOANS.—The Secretary may guarantee loans ‘‘(A) ELIGIBILITY.— ests. made under this subsection to finance the ‘‘(i) IN GENERAL.—The Secretary may make ‘‘(13) AUTHORIZATION OF APPROPRIATIONS.— issuance of bonds for the projects described or guarantee a business and industry loan to There is authorized to be appropriated to in paragraph (2). a cooperative organization that is carry out this subsection $50,000,000 for each ‘‘(4) MAXIMUM AMOUNT OF PRINCIPAL.— headquartered in a metropolitan area if the of fiscal years 2013 through 2017. ‘‘(A) IN GENERAL.—Except as otherwise pro- loan is— ‘‘(d) APPROPRIATE TECHNOLOGY TRANSFER vided in this paragraph, no loan may be ‘‘(I) used for a project or venture described FOR RURAL AREAS PROGRAM.— made or guaranteed under this subsection in paragraph (2) that is located in a rural ‘‘(1) DEFINITION OF NATIONAL NONPROFIT AG- that exceeds $25,000,000 in principal amount. area; or RICULTURAL ASSISTANCE INSTITUTION.—In this ‘‘(B) LIMITATIONS ON LOAN GUARANTEES FOR ‘‘(II) a loan guarantee that meets the re- subsection, the term ‘national nonprofit ag- COOPERATIVE ORGANIZATIONS.— quirements of paragraph (10). ricultural assistance institution’ means an ‘‘(i) PRINCIPAL AMOUNT.—Subject to clause ‘‘(ii) EQUITY.—The Secretary may guar- organization that— (ii), the principal amount of a business and antee a loan made for the purchase of pre- ‘‘(A) is described in section 501(c)(3) of the industry loan made to a cooperative organi- ferred stock or similar equity issued by a co- Internal Revenue Code of 1986 and exempt zation and guaranteed under this subsection operative organization or a fund that invests from taxation under 501(a) of that Code; shall not exceed $40,000,000. primarily in cooperative organizations, if ‘‘(B) has staff and offices in multiple re- ‘‘(ii) USE.—To be eligible for a guarantee the guarantee significantly benefits 1 or gions of the United States; under this subsection for a business and in- more entities eligible for assistance for the ‘‘(C) has experience and expertise in oper- dustry loan made to a cooperative organiza- purposes described in paragraph (2)(A), as de- ating national agricultural technical assist- tion, the principal amount of the loan in ex- termined by the Secretary. ance programs; cess of $25,000,000 shall be used to carry out ‘‘(B) REFINANCING.—A cooperative organi- ‘‘(D) expands markets for the agricultural a project that is in a rural area and— zation that is eligible for a business and in- commodities produced by producers through ‘‘(I) provides for the value-added proc- dustry loan shall be eligible to refinance an the use of practices that enhance the envi- essing of agricultural commodities; or existing business and industry loan with a ronment, natural resource base, and quality ‘‘(II) significantly benefits 1 or more enti- lender if— of life; and ties eligible for assistance for the purposes ‘‘(i) the cooperative organization— ‘‘(E) improves the economic viability of ag- described in paragraph (2), as determined by ‘‘(I) is current and performing with respect ricultural operations. the Secretary. to the existing loan; and ‘‘(2) ESTABLISHMENT.—The Secretary shall ‘‘(iii) APPLICATIONS.—If a cooperative orga- ‘‘(II)(aa) is not, and has not been, in pay- establish a national appropriate technology nization submits an application for a guar- ment default, with respect to the existing transfer for rural areas program to assist ag- antee under this paragraph, the Secretary loan; or ricultural producers that are seeking infor- shall make the determination whether to ap- ‘‘(bb) has not converted any of the collat- mation— prove the application, and the Secretary eral with respect to the existing loan; and ‘‘(A) to reduce input costs; may not delegate this authority. ‘‘(ii) there is adequate security or full col- ‘‘(B) to conserve energy resources; ‘‘(iv) MAXIMUM AMOUNT.—The total amount lateral for the refinanced loan. ‘‘(C) to diversify operations through new of business and industry loans made to coop- ‘‘(10) LOAN GUARANTEES IN NONRURAL energy crops and energy generation facili- erative organizations and guaranteed for a AREAS.—The Secretary may guarantee a ties; and fiscal year under this subsection with prin- business and industry loan to a cooperative ‘‘(D) to expand markets for agricultural cipal amounts that are in excess of $25,000,000 organization for a facility that is not located commodities produced by the producers by may not exceed 10 percent of the total in a rural area if— using practices that enhance the environ- amount of business and industry loans guar- ‘‘(A) the primary purpose of the loan guar- ment, natural resource base, and quality of anteed for the fiscal year under this sub- antee is for a facility to provide value-added life. section. processing for agricultural producers that ‘‘(3) IMPLEMENTATION.— ‘‘(5) FEES.—The Secretary may assess a 1- are located within 80 miles of the facility; ‘‘(A) IN GENERAL.—The Secretary shall time fee and an annual renewal fee for any ‘‘(B) the applicant demonstrates to the carry out the program under this subsection guaranteed business and industry loan in an Secretary that the primary benefit of the by making a grant to, or offering to enter amount that does not exceed 3 percent of the loan guarantee will be to provide employ- into a cooperative agreement with, a na- guaranteed principal portion of the loan. ment for residents of a rural area; and tional nonprofit agricultural assistance in- ‘‘(6) INTANGIBLE ASSETS.—In determining ‘‘(C) the total amount of business and institution. whether a cooperative organization is eligi- dustry loans guaranteed for a fiscal year ‘‘(B) GRANT AMOUNT.—A grant made, or co- ble for a guaranteed business and industry under this paragraph does not exceed 10 per- operative agreement entered into, under sub- loan, the Secretary may consider the market cent of the business and industry loans guar- paragraph (A) shall provide 100 percent of the value of a properly appraised brand name, anteed for the fiscal year under this sub- cost of providing information described in patent, or trademark of the cooperative. section. paragraph (2). ‘‘(7) LOAN APPRAISALS.—The Secretary may ‘‘(11) LOCALLY OR REGIONALLY PRODUCED AG- ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— require that any appraisal made in connec- RICULTURAL FOOD PRODUCTS.— There is authorized to be appropriated to tion with a business and industry loan be ‘‘(A) DEFINITIONS.—In this paragraph: carry out this subsection $5,000,000 for each conducted by a specialized appraiser that ‘‘(i) LOCALLY OR REGIONALLY PRODUCED AG- of fiscal years 2013 through 2017. uses standards that are comparable to stand- RICULTURAL FOOD PRODUCT.—The term ‘lo- ‘‘(e) BUSINESS AND INDUSTRY DIRECT AND ards used for similar purposes in the private cally or regionally produced agricultural GUARANTEED LOANS.— sector, as determined by the Secretary. food product’ means any agricultural food ‘‘(1) DEFINITION OF BUSINESS AND INDUSTRY ‘‘(8) LOAN GUARANTEES FOR THE PURCHASE product that is raised, produced, and distrib- LOAN.—In this section, the term ‘business OF COOPERATIVE STOCK.— uted in— and industry loan’ means a direct loan that ‘‘(A) IN GENERAL.—The Secretary may ‘‘(I) the locality or region in which the is made, or a loan that is guaranteed, by the guarantee a business and industry loan to in- final product is marketed, so that the total Secretary under this subsection. dividual farmers to purchase capital stock of distance that the product is transported is

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less than 400 miles from the origin of the ‘‘(i) public agencies; ‘‘(I) IN GENERAL.—The Secretary shall product; or ‘‘(ii) Indian tribes; make loans to microenterprise development ‘‘(II) the State in which the product is pro- ‘‘(iii) cooperatives; and organizations for the purpose of providing duced. ‘‘(iv) nonprofit corporations. fixed-interest rate microloans to microentre- ‘‘(ii) UNDERSERVED COMMUNITY.—The term ‘‘(C) ELIGIBLE PURPOSES.—The proceeds preneurs for startup and growing rural ‘underserved community’ means a commu- from loans made or guaranteed by the Sec- microenterprises. nity (including an urban or rural community retary pursuant to subparagraph (A) may be ‘‘(II) LOAN TERMS.—A loan made by the and an Indian tribal community) that, as de- relent by eligible entities for projects that— Secretary to a microenterprise development termined by the Secretary, has— ‘‘(i) predominately serve communities in organization under this subparagraph shall— ‘‘(I) limited access to affordable, healthy rural areas; and ‘‘(aa) be for a term not to exceed 20 years; foods, including fresh fruits and vegetables, ‘‘(ii) as determined by the Secretary— and in grocery retail stores or farmer-to-con- ‘‘(I) promote community development; ‘‘(bb) bear an annual interest rate of at sumer direct markets; and ‘‘(II) establish new businesses; least 1 percent. ‘‘(II) a high rate of hunger or food insecu- ‘‘(III) establish and support microlending ‘‘(III) LOAN LOSS RESERVE FUND.—The Sec- rity or a high poverty rate. programs; and retary shall require each microenterprise de- ‘‘(B) LOAN AND LOAN GUARANTEE PRO- ‘‘(IV) create or retain employment oppor- velopment organization that receives a loan GRAM.— tunities. under this subparagraph to— ‘‘(i) IN GENERAL.—The Secretary shall ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(aa) establish a loan loss reserve fund; make or guarantee loans to individuals, co- There is authorized to be appropriated to and operatives, cooperative organizations, busi- carry out this subsection $50,000,000 for each ‘‘(bb) maintain the reserve fund in an nesses, and other entities to establish and fa- of fiscal years 2013 through 2017. amount equal to at least 5 percent of the cilitate enterprises that process, distribute, ‘‘(2) RURAL MICROENTREPRENEUR ASSIST- outstanding balance of such loans owed by aggregate, store, and market locally or re- ANCE PROGRAM.— the microenterprise development organiza- gionally produced agricultural food products ‘‘(A) DEFINITIONS.—In this paragraph: tion, until all obligations owed to the Sec- to support community development and farm ‘‘(i) MICROENTREPRENEUR.—The term retary under this subparagraph are repaid. income. ‘microentrepreneur’ means an owner and op- ‘‘(IV) DEFERRAL OF INTEREST AND PRIN- ‘‘(ii) REQUIREMENT.—The recipient of a erator, or prospective owner and operator, of CIPAL.—The Secretary may permit the defer- loan or loan guarantee under this paragraph a rural microenterprise who is unable to ob- ral of payments on principal and interest due shall include in an appropriate agreement tain sufficient training, technical assistance, on a loan to a microenterprise development with retail and institutional facilities to or credit other than under this subsection, as organization made under this paragraph for which the recipient sells locally or region- determined by the Secretary. a 2-year period beginning on the date on ally produced agricultural food products a ‘‘(ii) MICROENTERPRISE DEVELOPMENT ORGA- which the loan is made. requirement to inform consumers of the re- NIZATION.—The term ‘microenterprise devel- ‘‘(iv) GRANTS TO SUPPORT RURAL MICROEN- tail or institutional facilities that the con- opment organization’ means an organization TERPRISE DEVELOPMENT.— sumers are purchasing or consuming locally that is— ‘‘(I) IN GENERAL.—The Secretary shall or regionally produced agricultural food ‘‘(I) a nonprofit entity; make grants to microenterprise development products. ‘‘(II) an Indian tribe, the tribal government organizations— ‘‘(iii) PRIORITY.—In making or guaran- of which certifies to the Secretary that— ‘‘(aa) to provide training and technical as- teeing a loan under this paragraph, the Sec- ‘‘(aa) no microenterprise development or- sistance, and other related services to rural retary shall give priority to projects that ganization serves the Indian tribe; and microentrepreneurs; and have components benefitting underserved ‘‘(bb) no rural microentrepreneur assist- ‘‘(bb) to carry out such other projects and communities. ance program exists under the jurisdiction of activities as the Secretary determines appro- ‘‘(iv) REPORTS.—Not later than 2 years the Indian tribe; priate to further the purposes of the pro- after the date of enactment of the Agri- ‘‘(III) a public institution of higher edu- gram. culture Reform, Food, and Jobs Act of 2012 cation; or ‘‘(II) SELECTION.—In making grants under and annually thereafter, the Secretary shall ‘‘(IV) a collaboration of rural nonprofit en- subclause (I), the Secretary shall— submit to the Committee on Agriculture of tities serving a region or State, if 1 lead non- ‘‘(aa) place an emphasis on microenterprise the House of Representatives and the Com- profit entity is the sole underwriter of all development organizations that serve micro- mittee on Agriculture, Nutrition, and For- loans and is responsible for associated risks. entrepreneurs that are located in rural areas estry of the Senate, and publish on the Inter- ‘‘(iii) MICROLOAN.—The term ‘microloan’ that have suffered significant outward mi- net, a report that describes projects carried means a business loan of not more than gration, as determined by the Secretary; and out using loans or loan guarantees made $50,000 that is provided to a rural microen- ‘‘(bb) ensure, to the maximum extent prac- under clause (i), including— terprise. ticable, that grant recipients include micro- ‘‘(I) summary information about all ‘‘(iv) PROGRAM.—The term ‘program’ enterprise development organizations of projects; means the rural microentrepreneur assist- varying sizes and that serve racially and eth- ‘‘(II) the characteristics of the commu- ance program established under subpara- nically diverse populations. nities served; and graph (B). ‘‘(v) GRANTS TO ASSIST MICROENTRE- ‘‘(III) resulting benefits. ‘‘(v) RURAL MICROENTERPRISE.—The term PRENEURS.— ‘‘(v) RESERVATION OF FUNDS.—For each of ‘rural microenterprise’ means a business en- ‘‘(I) IN GENERAL.—The Secretary shall fiscal years 2012 through 2017, the Secretary tity with not more than 10 full-time equiva- make annual grants to microenterprise de- shall reserve not less than 5 percent of the lent employees located in a rural area. velopment organizations to provide tech- total amount of funds made available to ‘‘(vi) TRAINING.—The term ‘training’ means nical assistance to microentrepreneurs carry out this subsection to carry out this teaching broad business principles or general that— paragraph until April 1 of the fiscal year. business skills in a group or public setting. ‘‘(aa) received a loan from the microenter- ‘‘(vi) OUTREACH.—The Secretary shall de- ‘‘(vii) TECHNICAL ASSISTANCE.—The term prise development organization under sub- velop and implement an outreach plan to ‘technical assistance’ means working with a paragraph (B)(iii); or publicize the availability of loans and loan business client in a 1-to-1 manner to provide ‘‘(bb) are seeking a loan from the microen- guarantees under this paragraph, working business and financial management coun- terprise development organization under closely with rural cooperative development seling, assist in the preparation of business subparagraph (B)(iii). centers, credit unions, community develop- or marketing plans, or provide other skills ‘‘(II) MAXIMUM AMOUNT OF TECHNICAL AS- ment financial institutions, regional eco- tailored to an individual microentrepreneur. SISTANCE GRANT.—The maximum amount of a nomic development authorities, and other fi- ‘‘(B) RURAL MICROENTREPRENEUR ASSIST- grant under this clause shall be in an nancial and economic development entities. ANCE PROGRAM.— amount equal to not more than 25 percent of ‘‘(12) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(i) ESTABLISHMENT.—The Secretary shall the total outstanding balance of microloans There is authorized to be appropriated to establish a rural microentrepreneur assist- made by the microenterprise development carry out this subsection $75,000,000 for each ance program to provide loans and grants to organization under clause (iii), as of the date of fiscal years 2013 through 2017. support microentrepreneurs in the develop- the grant is awarded. ‘‘(f) RELENDING PROGRAMS.— ment and ongoing success of rural micro- ‘‘(vi) ADMINISTRATIVE EXPENSES.—Not more ‘‘(1) INTERMEDIATE RELENDING PROGRAM.— enterprises. than 10 percent of a grant received by a mi- ‘‘(A) IN GENERAL.—The Secretary may ‘‘(ii) PURPOSE.—The purpose of the pro- croenterprise development organization for a make or guarantee loans to eligible entities gram is to provide microentrepreneurs fiscal year under this subparagraph may be described in subparagraph (B) so that the eli- with— used to pay administrative expenses. gible entities may relend the funds to indi- ‘‘(I) the skills necessary to establish new ‘‘(C) ADMINISTRATION.— viduals and entities for the purposes de- rural microenterprises; and ‘‘(i) MATCHING REQUIREMENT.—As a condi- scribed in subparagraph (C). ‘‘(II) continuing technical and financial as- tion of any grant made under clauses (iv) and ‘‘(B) ELIGIBLE ENTITIES.—Entities eligible sistance related to the successful operation (v) of subparagraph (B), the Secretary shall for loans and loan guarantees described in of rural microenterprises. require the microenterprise development or- subparagraph (A) are— ‘‘(iii) LOANS.— ganization to match not less than 15 percent

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of the total amount of the grant in the form ‘‘(10) PARTICIPATION AGREEMENT.—The term ‘‘(14) RURAL BUSINESS INVESTMENT COM- of matching funds (including community de- ‘participation agreement’ means an agree- PANY.—The term ‘rural business investment velopment block grants), indirect costs, or ment, between the Secretary and a rural company’ means a company that— in-kind goods or services. business investment company granted final ‘‘(A) has been granted final approval by the ‘‘(ii) OVERSIGHT.—At a minimum, not later approval under subsection (d)(5), that re- Secretary under subsection (d)(5); and than December 1 of each fiscal year, a micro- quires the rural business investment com- ‘‘(B) has entered into a participation agree- enterprise development organization that re- pany to make investments in smaller enter- ment with the Secretary. ceives a loan or grant under this section prises in rural areas. ‘‘(15) SMALLER ENTERPRISE.— shall provide to the Secretary such informa- ‘‘(11) PRIVATE CAPITAL.— ‘‘(A) IN GENERAL.—The term ‘smaller enter- tion as the Secretary may require to ensure ‘‘(A) IN GENERAL.—The term ‘private cap- prise’ means any rural business concern that assistance provided under this section is ital’ means the total of— that, together with its affiliates— used for the purposes for which the loan or ‘‘(i)(I) the paid-in capital and paid-in sur- ‘‘(i) has— grant was made. plus of a corporate rural business investment ‘‘(I) a net financial worth of not more than ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— company; $6,000,000, as of the date on which assistance There is authorized to be appropriated to ‘‘(II) the contributed capital of the part- is provided under this section to the rural carry out this paragraph $40,000,000 for each business concern; and of fiscal years 2013 through 2017. ners of a partnership rural business investment company; or ‘‘(II) except as provided in subparagraph ‘‘(E) MANDATORY FUNDING FOR FISCAL ‘‘(III) the equity investment of the mem- (B), an average net income for the 2-year pe- YEARS 2013 THROUGH 2017.—Of the funds of the bers of a limited liability company rural riod preceding the date on which assistance Commodity Credit Corporation, the Sec- is provided under this section to the rural retary shall use to carry out this paragraph business investment company; and ‘‘(ii) unfunded binding commitments from business concern, of not more than $2,000,000, $3,750,000 for each of fiscal years 2014 through after Federal income taxes (excluding any investors that meet criteria established by 2017, to remain available until expended. carryover losses); or the Secretary to contribute capital to the ‘‘SEC. 3602. RURAL BUSINESS INVESTMENT PRO- ‘‘(ii) satisfies the standard industrial clas- rural business investment company, except GRAM. sification size standards established by the that— ‘‘(a) DEFINITIONS.—In this section: Administrator of the Small Business Admin- ‘‘(I) unfunded commitments may be count- ‘‘(1) ARTICLES.—The term ‘articles’ means istration for the industry in which the rural ed as private capital for purposes of approval articles of incorporation for an incorporated business concern is primarily engaged. body or the functional equivalent or other by the Secretary of any request for leverage; ‘‘(B) EXCEPTION.—For purposes of subpara- but similar documents specified by the Secretary graph (A)(i)(II), if the rural business concern ‘‘(II) leverage shall not be funded based on for other business entities. is not required by law to pay Federal income EVELOPMENTAL VENTURE CAPITAL.— the commitments. ‘‘(2) D taxes at the enterprise level, but is required The term ‘developmental venture capital’ ‘‘(B) EXCLUSIONS.—The term ‘private cap- to pass income through to the shareholders, means capital in the form of equity capital ital’ does not include— partners, beneficiaries, or other equitable investments in rural business investment ‘‘(i) any funds borrowed by a rural business owners of the business concern, the net in- companies with an objective of fostering eco- investment company from any source; come of the business concern shall be deter- nomic development in rural areas. ‘‘(ii) any funds obtained through the mined by allowing a deduction in an amount ‘‘(3) EMPLOYEE WELFARE BENEFIT PLAN; PEN- issuance of leverage; or equal to the total of— SION PLAN.— ‘‘(iii) any funds obtained directly or indi- ‘‘(i) if the rural business concern is not re- ‘‘(A) IN GENERAL.—The terms ‘employee rectly from the Federal Government or any quired by law to pay State (and local, if any) welfare benefit plan’ and ‘pension plan’ have State (including by a political subdivision, the meanings given the terms in section 3 of income taxes at the enterprise level, the agency, or instrumentality of the Federal product obtained by multiplying— the Employee Retirement Income Security Government or a State), except for— Act of 1974 (29 U.S.C. 1002). ‘‘(I) the net income (determined without ‘‘(I) funds obtained from the business reve- regard to this subparagraph); by ‘‘(B) INCLUSIONS.—The terms ‘employee nues (excluding any governmental appropria- welfare benefit plan’ and ‘pension plan’ in- ‘‘(II) the marginal State income tax rate tion) of any Federally chartered or govern- (or by the combined State and local income clude— ment-sponsored enterprise established prior ‘‘(i) public and private pension or retire- tax rates, as applicable) that would have ap- to the date of enactment of the Agriculture plied if the business concern were a corpora- ment plans subject to this subtitle; and Reform, Food, and Jobs Act of 2012; ‘‘(ii) similar plans not covered by this sub- tion; and ‘‘(II) funds invested by an employee welfare title that have been established, and that are ‘‘(ii) the product obtained by multiplying— benefit plan or pension plan; and maintained, by the Federal Government or ‘‘(I) the net income (so determined) less ‘‘(III) any qualified nonprivate funds (if the any State (including by a political subdivi- any deduction for State (and local) income investors of the qualified nonprivate funds sion, agency, or instrumentality of the Fed- taxes calculated under clause (i); by do not control, directly or indirectly, the eral Government or a State) for the benefit ‘‘(II) the marginal Federal income tax rate of employees. management, board of directors, general that would have applied if the rural business partners, or members of the rural business ‘‘(4) EQUITY CAPITAL.—The term ‘equity concern were a corporation. capital’ means common or preferred stock or investment company). ‘‘(b) PURPOSES.—The purposes of the Rural a similar instrument, including subordinated ‘‘(12) QUALIFIED NONPRIVATE FUNDS.—The Business Investment Program established debt with equity features. term ‘qualified nonprivate funds’ means under this section are— ‘‘(5) LEVERAGE.—The term ‘leverage’ in- any— ‘‘(1) to promote economic development and cludes— ‘‘(A) funds directly or indirectly invested the creation of wealth and job opportunities ‘‘(A) debentures purchased or guaranteed in any applicant or rural business invest- in rural areas and among individuals living by the Secretary; ment company on or before the date of en- in those areas by encouraging developmental ‘‘(B) participating securities purchased or actment of the Agriculture Reform, Food, venture capital investments in smaller en- guaranteed by the Secretary; and and Jobs Act of 2012 by any Federal agency, terprises primarily located in rural areas; ‘‘(C) preferred securities outstanding as of other than the Department, under a provi- and the date of enactment of the Agriculture Re- sion of law explicitly mandating the inclu- ‘‘(2) to establish a developmental venture form, Food, and Jobs Act of 2012. sion of those funds in the definition of the capital program, with the mission of address- ‘‘(6) LICENSE.—The term ‘license’ means a term ‘private capital’; and ing the unmet equity investment needs of license issued by the Secretary in accord- ‘‘(B) funds invested in any applicant or small enterprises located in rural areas, by ance with in subsection (d)(5). rural business investment company by 1 or authorizing the Secretary— ‘‘(7) LIMITED LIABILITY COMPANY.—The term more entities of any State (including by a ‘‘(A) to enter into participation agree- ‘limited liability company’ means a business political subdivision, agency, or instrumen- ments with rural business investment com- entity that is organized and operating in ac- tality of the State and including any guar- panies; cordance with a State limited liability com- antee extended by those entities) in an ag- ‘‘(B) to guarantee debentures of rural busi- pany law approved by the Secretary. gregate amount that does not exceed 33 per- ness investment companies to enable each ‘‘(8) MEMBER.—The term ‘member’ means, cent of the private capital of the applicant or rural business investment company to make with respect to a rural business investment rural business investment company. developmental venture capital investments company that is a limited liability company, ‘‘(13) RURAL BUSINESS CONCERN.—The term in smaller enterprises in rural areas; and a holder of an ownership interest, or a person ‘rural business concern’ means— ‘‘(C) to make grants to rural business in- otherwise admitted to membership in the ‘‘(A) a public, private, or cooperative for- vestment companies, and to other entities, limited liability company. profit or nonprofit organization; for the purpose of providing operational as- ‘‘(9) OPERATIONAL ASSISTANCE.—The term ‘‘(B) a for-profit or nonprofit business con- sistance to smaller enterprises financed, or ‘operational assistance’ means management, trolled by an Indian tribe; or expected to be financed, by rural business in- marketing, and other technical assistance ‘‘(C) any other person or entity that pri- vestment companies. that assists a rural business concern with marily operates in a rural area, as deter- ‘‘(c) ESTABLISHMENT.—In accordance with business development. mined by the Secretary. this subtitle, the Secretary shall establish a

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00116 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4549 Rural Business Investment Program, under ‘‘(ii) the management of the applicant is ‘‘(i) 300 percent of the private capital of the which the Secretary may— qualified and has the knowledge, experience, rural business investment company; or ‘‘(1) enter into participation agreements and capability necessary to comply with this ‘‘(ii) $105,000,000; and with companies granted final approval under section; ‘‘(B) provide for the use of discounted de- subsection (d)(5) for the purposes described ‘‘(B) take into consideration— bentures. in subsection (b); ‘‘(i) the need for and availability of financ- ‘‘(f) ISSUANCE AND GUARANTEE OF TRUST ‘‘(2) guarantee the debentures issued by ing for rural business concerns in the geo- CERTIFICATES.— rural business investment companies as pro- graphic area in which the applicant is to ‘‘(1) ISSUANCE.—The Secretary may issue vided in subsection (e); and commence business; trust certificates representing ownership of ‘‘(3) make grants to rural business invest- ‘‘(ii) the general business reputation of the all or a fractional part of debentures issued ment companies, and to other entities, under owners and management of the applicant; by a rural business investment company and subsection (h). and guaranteed by the Secretary under this section, if the certificates are based on and ‘‘(d) SELECTION OF RURAL BUSINESS INVEST- ‘‘(iii) the probability of successful oper- backed by a trust or pool approved by the MENT COMPANIES.— ations of the applicant, including adequate Secretary and composed solely of guaranteed ‘‘(1) ELIGIBILITY.—A company shall be eli- profitability and financial soundness; and debentures. gible to apply to participate, as a rural busi- ‘‘(C) not take into consideration any pro- ‘‘(2) GUARANTEE.— ness investment company, in the program es- jected shortage or unavailability of grant ‘‘(A) IN GENERAL.—The Secretary may, tablished under this section if— funds or leverage. ‘‘(5) APPROVAL; LICENSE.— under such terms and conditions as the Sec- ‘‘(A) the company is a newly formed for- retary considers appropriate, guarantee the profit entity or a newly formed for-profit ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the Secretary may ap- timely payment of the principal of and inter- subsidiary of such an entity; est on trust certificates issued by the Sec- ‘‘(B) the company has a management team prove an applicant to operate as a rural business investment company under this subtitle retary or agents of the Secretary for pur- with experience in community development poses of this subsection. financing or relevant venture capital financ- and license the applicant as a rural business investment company, if— ‘‘(B) LIMITATION.—Each guarantee under ing; and this paragraph shall be limited to the extent ‘‘(C) the company will invest in enterprises ‘‘(i) the Secretary determines that the application satisfies the requirements of para- of principal and interest on the guaranteed that will create wealth and job opportunities debentures that compose the trust or pool. graph (2); in rural areas, with an emphasis on smaller ‘‘(C) PREPAYMENT OR DEFAULT.— ‘‘(ii) the area in which the rural business enterprises. ‘‘(i) IN GENERAL.— investment company is to conduct its oper- ‘‘(2) APPLICATION.—To participate, as a ‘‘(I) AUTHORITY TO PREPAY.—A debenture ations, and establishment of branch offices rural business investment company, in the may be prepaid at any time without penalty. or agencies (if authorized by the articles), program established under this section, a ‘‘(II) REDUCTION OF GUARANTEE.—Subject to are approved by the Secretary; and company meeting the eligibility require- subclause (I), if a debenture in a trust or pool ‘‘(iii) the applicant enters into a participa- ments of paragraph (1) shall submit an appli- is prepaid, or in the event of default of such tion agreement with the Secretary. cation to the Secretary that includes— a debenture, the guarantee of timely pay- ‘‘(B) CAPITAL REQUIREMENTS.— ‘‘(A) a business plan describing how the ment of principal and interest on the trust ‘‘(i) IN GENERAL.—Notwithstanding any company intends to make successful devel- certificates shall be reduced in proportion to opmental venture capital investments in other provision of this section, the Secretary the amount of principal and interest the pre- identified rural areas; may approve an applicant to operate as a paid debenture represents in the trust or ‘‘(B) information regarding the community rural business investment company under pool. this section and designate the applicant as a development finance or relevant venture ‘‘(ii) INTEREST.—Interest on prepaid or de- capital qualifications and general reputation rural business investment company, if the faulted debentures shall accrue and be guar- of the management of the company; Secretary determines that the applicant— anteed by the Secretary only through the ‘‘(C) a description of how the company in- ‘‘(I) has private capital as determined by date of payment of the guarantee. tends to work with community-based organi- the Secretary; ‘‘(iii) REDEMPTION.—At any time during zations and local entities (including local ‘‘(II) would otherwise be approved under the term of a trust certificate, the trust cer- economic development companies, local this section, except that the applicant does tificate may be called for redemption due to lenders, and local investors) and to seek to not satisfy the requirements of subsection prepayment or default of all debentures. address the unmet equity capital needs of (i)(3); and ‘‘(3) FULL FAITH AND CREDIT OF THE UNITED the communities served; ‘‘(III) has a viable business plan that— STATES.—Section 3901 shall apply to any ‘‘(D) a proposal describing how the com- ‘‘(aa) reasonably projects profitable oper- guarantee of a trust certificate issued by the pany intends to use the grant funds provided ations; and Secretary under this section. under this section to provide operational as- ‘‘(bb) has a reasonable timetable for ‘‘(4) SUBROGATION AND OWNERSHIP RIGHTS.— sistance to smaller enterprises financed by achieving a level of private capital that sat- ‘‘(A) SUBROGATION.—If the Secretary pays a the company, including information regard- isfies the requirements of subsection (i)(3). claim under a guarantee issued under this ing whether the company intends to use li- ‘‘(ii) LEVERAGE.—An applicant approved section, the claim shall be subrogated fully censed professionals, as necessary, on the under clause (i) shall not be eligible to re- to the rights satisfied by the payment. staff of the company or from an outside enti- ceive leverage under this section until the ‘‘(B) OWNERSHIP RIGHTS.—No Federal, ty; applicant satisfies the requirements of sec- State, or local law shall preclude or limit the ‘‘(E) with respect to binding commitments tion 3602(i)(3). exercise by the Secretary of the ownership to be made to the company under this sec- ‘‘(iii) GRANTS.—An applicant approved rights of the Secretary in a debenture resid- tion, an estimate of the ratio of cash to in- under clause (i) shall be eligible for grants ing in a trust or pool against which 1 or more kind contributions; under subsection (h) in proportion to the pri- trust certificates are issued under this sub- ‘‘(F) a description of the criteria to be used vate capital of the applicant, as determined section. to evaluate whether and to what extent the by the Secretary. ‘‘(5) MANAGEMENT AND ADMINISTRATION.— company meets the purposes of the program ‘‘(e) DEBENTURES.— ‘‘(A) REGISTRATION.—The Secretary shall established under this section; ‘‘(1) IN GENERAL.—The Secretary may guar- provide for a central registration of all trust ‘‘(G) information regarding the manage- antee the timely payment of principal and certificates issued under this subsection. ment and financial strength of any parent interest, as scheduled, on debentures issued ‘‘(B) CREATION OF POOLS.—The Secretary firm, affiliated firm, or any other firm essen- by any rural business investment company. may— tial to the success of the business plan of the ‘‘(2) TERMS AND CONDITIONS.—The Sec- ‘‘(i) maintain such commercial bank accompany; and retary may make guarantees under this sub- counts or investments in obligations of the ‘‘(H) such other information as the Sec- section on such terms and conditions as the United States as may be necessary to facili- retary may require. Secretary considers appropriate, except that tate the creation of trusts or pools backed by ‘‘(3) STATUS.—Not later than 90 days after the term of any debenture guaranteed under debentures guaranteed under this subtitle; the initial receipt by the Secretary of an ap- this section shall not exceed 15 years. and plication under this subsection, the Sec- ‘‘(3) FULL FAITH AND CREDIT OF THE UNITED ‘‘(ii) issue trust certificates to facilitate retary shall provide to the applicant a writ- STATES.—Section 3901 shall apply to any the creation of those trusts or pools. ten report describing the status of the appli- guarantee under this subsection. ‘‘(C) FIDELITY BOND OR INSURANCE REQUIRE- cation and any requirements remaining for ‘‘(4) MAXIMUM GUARANTEE.—Under this sub- MENT.—Any agent performing functions on completion of the application. section, the Secretary may— behalf of the Secretary under this paragraph ‘‘(4) MATTERS CONSIDERED.—In reviewing ‘‘(A) guarantee the debentures issued by a shall provide a fidelity bond or insurance in and processing any application under this rural business investment company only to such amount as the Secretary considers to subsection, the Secretary shall— the extent that the total face amount of out- be necessary to fully protect the interests of ‘‘(A) determine whether— standing guaranteed debentures of the rural the United States. ‘‘(i) the applicant meets the requirements business investment company does not ex- ‘‘(D) REGULATION OF BROKERS AND DEAL- of paragraph (5); and ceed the lesser of— ERS.—The Secretary may regulate brokers

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00117 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4550 CONGRESSIONAL RECORD — SENATE June 25, 2012 and dealers in trust certificates issued under company shall be equal to the resources (in extent necessary to preserve an existing in- this subsection. cash or in kind) raised by the entity in ac- vestment. ‘‘(E) ELECTRONIC REGISTRATION.—Nothing cordance with the requirements applicable ‘‘(4) DIVERSIFICATION OF OWNERSHIP.—The in this paragraph prohibits the use of a book- to rural business investment companies Secretary shall ensure that the management entry or other electronic form of registra- under this section. of each rural business investment company tion for trust certificates issued under this ‘‘(i) RURAL BUSINESS INVESTMENT COMPA- licensed after the date of enactment of the subsection. NIES.— Agriculture Reform, Food, and Jobs Act of ‘‘(g) FEES.— ‘‘(1) ORGANIZATION.—For purposes of this 2012 is sufficiently diversified from and unaf- ‘‘(1) IN GENERAL.—The Secretary may subsection, a rural business investment com- filiated with the ownership of the rural busi- charge a fee that does not exceed $500 with pany shall— ness investment company so as to ensure respect to any guarantee or grant issued ‘‘(A) be an incorporated body, a limited li- independence and objectivity in the financial under this section. ability company, or a limited partnership or- management and oversight of the invest- ‘‘(2) TRUST CERTIFICATE.—Notwithstanding ganized and chartered or otherwise existing ments and operations of the rural business paragraph (1), the Secretary shall not collect under State law solely for the purpose of per- investment company. a fee for any guarantee of a trust certificate forming the functions and conducting the ac- ‘‘(j) FINANCIAL INSTITUTION INVESTMENTS.— under subsection (f), except that any agent tivities authorized by this section; and ‘‘(1) IN GENERAL.—Except as otherwise proof the Secretary may collect a fee that does ‘‘(B)(i) if incorporated, have succession for vided in this subsection and notwithstanding not exceed $500 for the functions described in a period of not less than 30 years unless ear- any other provision of law, the following subsection (f)(5)(B). lier dissolved by the shareholders of the banks, associations, and institutions are eli- ‘‘(3) LICENSE.— rural business investment company; and gible both to establish and invest in any ‘‘(A) IN GENERAL.—Except as provided in ‘‘(ii) if a limited partnership or a limited rural business investment company or in any subparagraph (C), the Secretary may pre- liability company, have succession for a pe- entity established to invest solely in rural scribe fees to be paid by each applicant for a riod of not less than 10 years; and business investment companies: license to operate as a rural business invest- ‘‘(iii) possess the powers reasonably nec- ‘‘(A) Any bank or savings association the ment company under this section. essary to perform the functions and conduct deposits of which are insured under the Fed- ‘‘(B) USE OF AMOUNTS.—Fees collected the activities. eral Deposit Insurance Act (12 U.S.C. 1811 et under this paragraph— ‘‘(2) ARTICLES.—The articles of any rural seq.), including an investment pool created ‘‘(i) shall be deposited in the account for business investment company— entirely by such bank or savings association. salaries and expenses of the Secretary; ‘‘(A) shall specify in general terms— ‘‘(B) Any Farm Credit System institution ‘‘(ii) are authorized to be appropriated ‘‘(i) the purposes for which the rural busi- described in subsection 1.2(a) of the Farm solely to cover the costs of licensing exami- ness investment company is formed; Credit Act of 1971 (12 U.S.C. 2002(a)). nations; and ‘‘(ii) the name of the rural business invest- ‘‘(2) LIMITATION.—No bank, association, or ‘‘(iii) shall— ment company; institution described in paragraph (1) may ‘‘(I) in the case of a license issued before ‘‘(iii) the 1 or more areas in which the op- make investments described in paragraph (1) the date of enactment of the Agriculture Re- erations of the rural business investment that are greater than 5 percent of the capital form, Food, and Jobs Act of 2012, not exceed company are to be carried out; and surplus of the bank, association, or in- $500 for any fee collected under this para- ‘‘(iv) the place where the principal office of stitution. graph; and the rural business investment company is to ‘‘(3) LIMITATION ON RURAL BUSINESS INVEST- ‘‘(II) in the case of a license issued after be located; and MENT COMPANIES CONTROLLED BY FARM CREDIT the date of enactment of the Agriculture Re- ‘‘(v) the amount and classes of the shares SYSTEM INSTITUTIONS.—If a Farm Credit Sys- form, Food, and Jobs Act of 2012, be a rate as of capital stock of the rural business invest- tem institution described in section 1.2(a) of determined by the Secretary. ment company; the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) ‘‘(C) PROHIBITION ON COLLECTION OF CERTAIN ‘‘(B) may contain any other provisions con- holds more than 25 percent of the shares of a FEES.—In the case of a license described in sistent with this section that the rural busi- rural business investment company, either subparagraph (A) that was approved before ness investment company may determine ap- alone or in conjunction with other System July 1, 2007, the Secretary shall not collect propriate to adopt for the regulation of the institutions (or affiliates), the rural business any fees due on or after the date of enact- business of the rural business investment investment company shall not provide eq- ment of the Agriculture Reform, Food, and company and the conduct of the affairs of uity investments in, or provide other finan- Jobs Act of 2012. the rural business investment company; and cial assistance to, entities that are not oth- ‘‘(h) OPERATIONAL ASSISTANCE GRANTS.— ‘‘(C) shall be subject to the approval of the erwise eligible to receive financing from the ‘‘(1) IN GENERAL.—In accordance with this Secretary. Farm Credit System under that Act (12 subsection, the Secretary may make grants ‘‘(3) CAPITAL REQUIREMENTS.— U.S.C. 2001 et seq.). to rural business investment companies and ‘‘(A) IN GENERAL.—Each rural business in- ‘‘(k) EXAMINATIONS.— to other entities, as authorized by this sec- vestment company shall be required to meet ‘‘(1) IN GENERAL.—Each rural business in- tion, to provide operational assistance to the capital requirements as provided by the vestment company that participates in the smaller enterprises financed, or expected to Secretary. program established under this section shall be financed, by the entities. ‘‘(B) TIME FRAME.—Each rural business in- be subject to examinations made at the di- ‘‘(2) TERMS.—Grants made under this sub- vestment company shall have a period of 2 rection of the Secretary in accordance with section shall be made over a multiyear pe- years to meet the capital requirements of this subsection. riod (not to exceed 10 years) under such this paragraph. ‘‘(2) ASSISTANCE OF PRIVATE SECTOR ENTI- terms as the Secretary may require. ‘‘(C) ADEQUACY.—In addition to the re- TIES.—An examination under this subsection ‘‘(3) USE OF FUNDS.—The proceeds of a quirements of subparagraph (A), the Sec- may be conducted with the assistance of a grant made under this subsection may be retary shall— private sector entity that has the qualifica- used by the rural business investment com- ‘‘(i) determine whether the private capital tions and the expertise necessary to conduct pany receiving the grant only to provide of each rural business investment company such an examination. operational assistance in connection with an is adequate to ensure a reasonable prospect ‘‘(3) COSTS.— equity or prospective equity investment in a that the rural business investment company ‘‘(A) IN GENERAL.—The Secretary may as- business located in a rural area. will be operated soundly and profitably, and sess the cost of an examination under this ‘‘(4) SUBMISSION OF PLANS.—A rural busi- managed actively and prudently in accord- section, including compensation of the ex- ness investment company shall be eligible ance with the articles of the rural business aminers, against the rural business invest- for a grant under this subsection only if the investment company; ment company examined. rural business investment company submits ‘‘(ii) determine that the rural business in- ‘‘(B) PAYMENT.—Any rural business invest- to the Secretary, in such form and manner vestment company will be able to comply ment company against which the Secretary as the Secretary may require, a plan for use with the requirements of this section; assesses costs under this subparagraph shall of the grant. ‘‘(iii) require that at least 75 percent of the pay the costs. ‘‘(5) GRANT AMOUNT.— capital of each rural business investment ‘‘(4) DEPOSIT OF FUNDS.—Funds collected ‘‘(A) RURAL BUSINESS INVESTMENT COMPA- company is invested in rural business con- under this subsection shall— NIES.—The amount of a grant made under cerns; ‘‘(A) be deposited in the account that in- this subsection to a rural business invest- ‘‘(iv) ensure that the rural business invest- curred the costs for carrying out this sub- ment company shall be equal to the lesser ment company is designed primarily to meet section; of— equity capital needs of the businesses in ‘‘(B) be made available to the Secretary to ‘‘(i) 10 percent of the private capital raised which the rural business investment com- carry out this subsection, without further by the rural business investment company; pany invests and not to compete with tradi- appropriation; and or tional small business financing by commer- ‘‘(C) remain available until expended. ‘‘(ii) $1,000,000. cial lenders; and ‘‘(l) REPORTING REQUIREMENTS.— ‘‘(6) OTHER ENTITIES.—The amount of a ‘‘(v) require that the rural business invest- ‘‘(1) RURAL BUSINESS INVESTMENT COMPA- grant made under this subsection to any en- ment company makes short-term non-equity NIES.—Each entity that participates in a pro- tity other than a rural business investment investments of less than 5 years only to the gram established under this section shall

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00118 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4551 provide to the Secretary such information as ‘‘CHAPTER 3—GENERAL RURAL parable to the average maturity of the loan, the Secretary may require, including— DEVELOPMENT PROVISIONS adjusted to the nearest 1⁄8 of 1 percent; and ‘‘(A) information relating to the measure- ‘‘SEC. 3701. GENERAL PROVISIONS FOR LOANS ‘‘(II) in the case of a loan that would be ment criteria that the entity proposed in the AND GRANTS. subject to the 7 percent limitation under program application of the rural business in- ‘‘(a) PERIOD FOR REPAYMENT.—Unless oth- subparagraph (A), the Secretary shall estab- vestment company; and erwise specifically provided for in this sub- lish the interest rate at a rate that is equal ‘‘(B) in each case in which the entity under title, the period for repayment of a loan to 80 percent of the current market yield for this section makes an investment in, or a under this subtitle shall not exceed 40 years. outstanding municipal obligations with re- loan or grant to, a business that is not lo- ‘‘(b) INTEREST RATES.— maining periods to maturity comparable to cated in a rural area, a report on the number ‘‘(1) IN GENERAL.—Except as otherwise pro- the average maturity of the loan, adjusted to 1 and percentage of employees of the business vided in this title, the interest rate on a loan the nearest ⁄8 of 1 percent. who reside in those areas. under this subtitle shall be determined by ‘‘(ii) EXCEPTION.—Clause (i) does not apply ‘‘(2) PUBLIC REPORTS.— the Secretary at a rate— to a loan for a specific project that is the ‘‘(A) IN GENERAL.—The Secretary shall pre- ‘‘(A) not to exceed a sum obtained by add- subject of a loan that has been approved, but pare and make available to the public an an- ing— not closed, as of the date of enactment of the Agriculture Reform, Food, and Jobs Act of nual report on the programs established ‘‘(i) the current average market yield on 2012. under this section, including detailed infor- outstanding marketable obligations of the ‘‘(3) INTEREST RATES ON BUSINESS AND mation on— United States with remaining periods to ma- OTHER LOANS.— ‘‘(i) the number of rural business invest- turity comparable to the average maturity ‘‘(A) IN GENERAL.—Except as provided in ment companies licensed by the Secretary of the loan; and paragraph (4), the interest rates on loans during the previous fiscal year; ‘‘(ii) an amount not to exceed 1 percent, as under sections 3501(a)(1) (other than guaran- ‘‘(ii) the aggregate amount of leverage that determined by the Secretary; and teed loans and loans as described in para- rural business investment companies have ‘‘(B) adjusted to the nearest 1⁄8 of 1 percent. graph (2)(A)) shall be as determined by the ‘‘(2) WATER AND WASTE FACILITY LOANS AND received from the Federal Government dur- Secretary in accordance with subparagraph COMMUNITY FACILITIES LOANS.— ing the previous fiscal year; (B). ‘‘(A) IN GENERAL.—Notwithstanding any ‘‘(iii) the aggregate number of each type of ‘‘(B) MINIMUM RATE.—The interest rates de- leveraged instruments used by rural business provision of State law limiting the rate or scribed in subparagraph (A) shall be not less investment companies during the previous amount of interest that may be charged, than the sum obtained by adding— fiscal year and how each number compares taken, received, or reserved, except as pro- ‘‘(i) such rates as determined by the Sec- to previous fiscal years; vided in subparagraph (C) and paragraph (5), retary of the Treasury taking into consider- ‘‘(iv) the number of rural business invest- the interest rate on a loan (other than a ation the current average market yield on ment company licenses surrendered and the guaranteed loan) to a public body or non- outstanding marketable obligations of the number of rural business investment compa- profit association (including an Indian tribe) United States with remaining periods to ma- nies placed in liquidation during the pre- for a water or waste disposal facility or es- turity comparable to the average maturities vious fiscal year, identifying the amount of sential community facility shall be deter- of such loans, adjusted in the judgment of leverage each rural business investment mined by the Secretary at a rate not to ex- the Secretary of the Treasury to provide for company has received from the Federal Gov- ceed— rates comparable to the rates prevailing in ernment and the type of leverage instru- ‘‘(i) the current market yield on out- the private market for similar loans and con- ments each rural business investment com- standing municipal obligations with remain- sidering the insurance by the Secretary of pany has used; ing periods to maturity comparable to the the loans; and ‘‘(v) the amount of losses sustained by the average maturity for the loan, and adjusted ‘‘(ii) an additional charge, prescribed by Federal Government as a result of operations to the nearest 1⁄8 of 1 percent; the Secretary, to cover the losses of the Sec- under this section during the previous fiscal ‘‘(ii) 5 percent per year for a loan that is retary and cost of administration, which year and an estimate of the total losses that for the upgrading of a facility or construc- shall be deposited in the Rural Development the Federal Government can reasonably ex- tion of a new facility as required to meet ap- Insurance Fund, and further adjusted to the pect to incur as a result of the operations plicable health or sanitary standards in— nearest 1⁄8 of 1 percent. during the current fiscal year; ‘‘(I) an area in which the median family in- ‘‘(4) INTEREST RATES ADJUSTMENTS.— ‘‘(vi) actions taken by the Secretary to come of the persons to be served by the facil- ‘‘(A) ADJUSTMENTS.—Notwithstanding any maximize recoupment of funds of the Federal ity is below the poverty line (as defined in other provision of this subsection, in the Government expended to implement and ad- section 673 of the Community Services Block case of loans (other than guaranteed loans) minister the Rural Business Investment Pro- Grant Act (42 U.S.C. 9902)); and made or guaranteed under the authorities of gram under this section during the previous ‘‘(II) any areas the Secretary may des- this title specified in subparagraph (C) for fiscal year and to ensure compliance with ignate in which a significant percentage of activities that involve the use of prime farm- the requirements of this section (including the persons to be served by the facilities are land, the interest rates shall be the interest regulations); low income persons, as determined by the rates otherwise applicable under this section ‘‘(vii) the amount of Federal Government Secretary; and increased by 2 percent per year. leverage that each licensee received in the ‘‘(iii) 7 percent per year for a loan for a fa- ‘‘(B) PRIME FARMLAND.— previous fiscal year and the types of leverage cility that does not qualify for the 5 percent ‘‘(i) IN GENERAL.—Wherever practicable, instruments each licensee used; per year interest rate prescribed in clause construction by a State, municipality, or ‘‘(viii) for each type of financing instru- (ii) but that is located in an area in a State other political subdivision of local government, the sizes, types of geographic loca- in which the median household income of the ment that is supported by loans described in tions, and other characteristics of the small persons to be served by the facility does not subparagraph (A) shall be placed on land business investment companies using the in- exceed 100 percent of the statewide non- that is not prime farmland, in order to pre- strument during the previous fiscal year, in- metropolitan median household income for serve the maximum practicable quantity of cluding the extent to which the investment the State. prime farmlands for production of food and companies have used the leverage from each ‘‘(B) HEALTH CARE AND RELATED FACILI- fiber. instrument to make loans or equity invest- TIES.—Notwithstanding subparagraph (A), ‘‘(ii) INCREASED RATE.—In any case in ments in rural areas; and the Secretary shall establish a rate for a which other options exist for the siting of ‘‘(ix) the actions of the Secretary to carry loan for a health care or related facility that construction described in clause (i) and the out this section is— governmental authority still desires to carry ‘‘(B) PROHIBITION.—In compiling the report ‘‘(i) based solely on the income of the area out the construction on prime farmland, the required under subparagraph (A), the Sec- to be served; and 2-percent interest rate increase provided by retary may not— ‘‘(ii) otherwise consistent with subpara- this paragraph shall apply, but that in- ‘‘(i) compile the report in a manner that graph (A). creased interest rate shall not apply where permits identification of any particular type ‘‘(C) INTEREST RATES FOR WATER AND WASTE such other options do not exist. of investment by an individual rural business DISPOSAL FACILITIES LOANS.— ‘‘(C) APPLICABLE AUTHORITIES.—The au- investment company or small business con- ‘‘(i) IN GENERAL.—Except as provided in thorities referred to in subparagraph (A) cern in which a rural business investment clause (ii) and notwithstanding subparagraph are— company invests; or (A), in the case of a direct loan for a water ‘‘(i) the provisions of section 3502(a) relat- ‘‘(ii) release any information that is pro- or waste disposal facility— ing to loans for recreational developments hibited under section 1905 of title 18, United ‘‘(I) in the case of a loan that would be sub- and essential community facilities; States Code. ject to the 5 percent interest rate limitation ‘‘(ii) section 3601(e)(2)(A); and under subparagraph (A), the Secretary shall ‘‘(iii) section 3601(c). ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— establish the interest rate at a rate that is ‘‘(c) PAYMENT OF CHARGES.—A borrower of There is authorized to be appropriated to equal to 60 percent of the current market a loan made or guaranteed under this sub- carry out this section $25,000,000 for the pe- yield for outstanding municipal obligations title shall pay such fees and other charges as riod of fiscal years 2008 through 2017.’’. with remaining periods to maturity com- the Secretary may require, and prepay to the

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Secretary such taxes and insurance as the ‘‘(1) in the case of a loan that solely refi- ‘‘(b) PARTNERSHIP.— Secretary may require, on such terms and nances a direct loan made under this sub- ‘‘(1) IN GENERAL.—The Secretary shall sup- conditions as the Secretary may prescribe. title, the principal and interest due on the port the State Rural Development Partner- ‘‘(d) SECURITY.— loan on the date of the refinancing; or ship comprised of State rural development ‘‘(1) IN GENERAL.—The Secretary shall take ‘‘(2) in the case of a loan that is used for councils. as security for an obligation entered into in multiple purposes, the portion of the loan ‘‘(2) PURPOSES.—The purposes of the Part- connection with a loan made under this sub- that refinances the principal and interest nership are to empower and build the capac- title such security as the Secretary may re- due on a direct loan made under this subtitle ity of States, regions, and rural communities quire. that is outstanding on the date on which the to design flexible and innovative responses ‘‘(2) LIENS TO UNITED STATES.—An instru- loan is guaranteed. to their rural development needs in a man- ment for security under paragraph (1) may ‘‘(e) RISK OF LOSS.— ner that maximizes collaborative public- and constitute a lien running to the United ‘‘(1) IN GENERAL.—Subject to subsection private-sector cooperation and minimizes States notwithstanding the fact that the (b), the Secretary may not make a loan regulatory redundancy. note for the security may be held by a lender under section 3501 or 3601 unless the Sec- ‘‘(3) COORDINATING PANEL.—A panel con- other than the United States. retary determines that no other lender is sisting of representatives of State rural de- ‘‘(3) MULTIPLE LOANS.—A borrower may use willing to make the loan and assume 10 per- velopment councils shall be established— the same collateral to secure 2 or more loans cent of the potential loss to be sustained ‘‘(A) to lead and coordinate the strategic made or guaranteed under this subtitle, ex- from the loan. operation and policies of the Partnership; cept that the outstanding amount of the ‘‘(2) EXCEPTION FOR NONPROFIT GROUPS.— and loans may not exceed the total value of the Paragraph (1) shall not apply to a public ‘‘(B) to facilitate effective communication collateral. body or nonprofit association, including an among the members of the Partnership, in- ‘‘(e) LEGAL COUNSEL FOR SMALL LOANS.—In Indian tribe. cluding the sharing of best practices. the case of a loan of less than $500,000 made ‘‘SEC. 3704. RURAL DEVELOPMENT INSURANCE ‘‘(4) ROLE OF FEDERAL GOVERNMENT.—The or guaranteed under section 3501 that is evi- FUND. role of the Federal Government in the Part- denced by a note or mortgage (as distin- ‘‘(a) DEFINITION OF RURAL DEVELOPMENT nership may be that of a partner and guished from a bond issue), the borrower LOAN.—In this section, the term ‘rural devel- facilitator, with Federal agencies author- shall not be required to appoint bond counsel opment loan’ means a loan provided for by ized— to review the legal validity of the loan if the section 3501 or 3601. ‘‘(A) to cooperate with States to imple- Secretary has available legal counsel to per- ‘‘(b) ESTABLISHMENT.—There is established form the review. in the Treasury of the United States a fund ment the Partnership; ‘‘(B) to provide States with the technical ‘‘SEC. 3702. STRATEGIC ECONOMIC AND COMMU- to be known as the ‘Rural Development In- NITY DEVELOPMENT. surance Fund’ that shall be used by the Sec- and administrative support necessary to plan ‘‘(a) PRIORITY.—In the case of any rural de- retary to discharge the obligations of the and implement tailored rural development velopment program authorized by this sub- Secretary under contracts making or guar- strategies to meet local needs; title, the Secretary may give priority to ap- anteeing rural development loans. ‘‘(C) to ensure that the head of each agency plications that are otherwise eligible and ‘‘SEC. 3705. RURAL ECONOMIC AREA PARTNER- with rural responsibilities directs appro- support strategic community and economic SHIP ZONES. priate field staff to participate fully with the development plans on a multijurisdictional ‘‘(a) IN GENERAL.—The Secretary may des- State rural development council within the basis, as approved by the Secretary. ignate additional areas as rural economic jurisdiction of the field staff; and ‘‘(b) EVALUATION.—In evaluating strategic area partnership zones to be assisted under ‘‘(D) to enter into cooperative agreements applications, the Secretary shall give a high- this chapter— with, and to provide grants and other assist- er priority to strategic applications for a ‘‘(1) through an open, competitive process; ance to, State rural development councils. plan described in subsection (a) that dem- and ‘‘(c) STATE RURAL DEVELOPMENT COUN- onstrate— ‘‘(2) with priority given to rural areas— CILS.— ‘‘(1) the plan was developed through the ‘‘(A) with excessive unemployment or ‘‘(1) ESTABLISHMENT.—Notwithstanding collaboration of multiple stakeholders in the underemployment, a high percentage of low- chapter 63 of title 31, United States Code, service area of the plan, including the par- income residents, or high rates of outmigra- each State may elect to participate in the ticipation of combinations of stakeholders tion, as determined by the Secretary; and Partnership by entering into an agreement such as State, local, and tribal governments, ‘‘(B) that the Secretary determines have a with the Secretary to recognize a State rural nonprofit institutions, institutions of higher substantial need for assistance. development council. education, and private entities; ‘‘(b) REQUIREMENTS.—The Secretary shall ‘‘(2) COMPOSITION.—A State rural develop- ‘‘(2) an understanding of the applicable re- carry out those rural economic area partner- ment council shall— gional resources that could support the plan, ship zones administratively in effect on the ‘‘(A) be composed of representatives of including natural resources, human re- date of enactment of the Agriculture Re- sources, infrastructure, and financial reform, Food, and Jobs Act of 2012 in accord- Federal, State, local, and tribal govern- sources; ance with the terms and conditions con- ments, nonprofit organizations, regional or- ‘‘(3) investment from other Federal agen- tained in the memoranda of agreement en- ganizations, the private sector, and other en- cies; tered into by the Secretary for the rural eco- tities committed to rural advancement; and ‘‘(4) investment from philanthropic organi- nomic area partnership zones. ‘‘(B) have a nonpartisan and nondiscrim- inatory membership that— zations; and ‘‘SEC. 3706. STREAMLINING APPLICATIONS AND ‘‘(5) clear objectives for the plan and the IMPROVING ACCESSIBILITY OF ‘‘(i) is broad and representative of the eco- ability to establish measurable performance RURAL DEVELOPMENT PROGRAMS. nomic, social, and political diversity of the measures and to track progress toward meet- ‘‘The Secretary shall expedite the process State; and ing the objectives. of creating user-friendly and accessible ap- ‘‘(ii) shall be responsible for the govern- ‘‘SEC. 3703. GUARANTEED RURAL DEVELOPMENT plication forms and procedures prioritizing ance and operations of the State rural devel- LOANS. programs and applications at the individual opment council. ‘‘(a) IN GENERAL.—The Secretary may pro- level with an emphasis on utilizing current ‘‘(3) DUTIES.—A State rural development vide financial assistance to a borrower for a technology including online applications and council shall— purpose provided in this subtitle by guaran- submission processes. ‘‘(A) facilitate collaboration among Fed- teeing a loan made by any Federal or State ‘‘SEC. 3707. STATE RURAL DEVELOPMENT PART- eral, State, local, and tribal governments chartered bank, savings and loan associa- NERSHIP. and the private and nonprofit sectors in the tion, cooperative lending agency, or other le- ‘‘(a) DEFINITIONS.—In this section: planning and implementation of programs gally organized lending agency. ‘‘(1) AGENCY WITH RURAL RESPONSIBIL- and policies that have an impact on rural ‘‘(b) INTEREST RATE.—The interest rate ITIES.—The term ‘agency with rural respon- areas of the State; payable by a borrower on the portion of a sibilities’ means any executive agency (as ‘‘(B) monitor, report, and comment on poli- guaranteed loan that is sold by a lender to defined in section 105 of title 5, United States cies and programs that address, or fail to ad- the secondary market under this subtitle Code) that implements a Federal law, or address, the needs of the rural areas of the may be lower than the interest rate charged ministers a program, targeted at or having a State; on the portion retained by the lender. significant impact on rural areas. ‘‘(C) as part of the Partnership, facilitate ‘‘(c) MAXIMUM GUARANTEE OF 90 PERCENT.— ‘‘(2) PARTNERSHIP.—The term ‘Partnership’ the development of strategies to reduce or Except as provided in subsections (d) and (e), means the State Rural Development Part- eliminate conflicting or duplicative adminis- a loan guarantee under this subtitle shall be nership continued by subsection (b). trative or regulatory requirements of Fed- for not more than 90 percent of the principal ‘‘(3) STATE RURAL DEVELOPMENT COUNCIL.— eral, State, local, and tribal governments; and interest due on the loan. The term ‘State rural development council’ and ‘‘(d) REFINANCED LOANS GUARANTEED AT 95 means a State rural development council ‘‘(D)(i) provide to the Secretary an annual PERCENT.—The Secretary shall guarantee 95 that meets the requirements of subsection plan with goals and performance measures; percent of— (c). and

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‘‘(ii) submit to the Secretary an annual re- ‘‘(A) IN GENERAL.—Notwithstanding any paragraphs (2) and (3) of subsection (c), and port on the progress of the State rural devel- other provision of law limiting the ability of no voting right of any Authority member, opment council in meeting the goals and an agency, along with other agencies, to pro- shall be delegated to any person— measures. vide funds to a State rural development ‘‘(A) who is not an Authority member; or ‘‘(4) FEDERAL PARTICIPATION IN STATE council in order to carry out the purposes of ‘‘(B) who is not entitled to vote in Author- RURAL DEVELOPMENT COUNCILS.— this section, a Federal agency may make ity meetings. ‘‘(A) IN GENERAL.—A State Director for grants, gifts, or contributions to, provide ‘‘(c) VOTING.— Rural Development of the Department of Ag- technical assistance to, or enter into con- ‘‘(1) IN GENERAL.—A decision by the Au- riculture, other employees of the Depart- tracts or cooperative agreements with, a thority shall require a majority vote of the ment, and employees of other Federal agen- State rural development council. Authority (not including any member rep- cies with rural responsibilities shall fully ‘‘(B) ASSISTANCE.—Federal agencies are en- resenting a State that is delinquent under participate as voting members in the govern- couraged to use funds made available for pro- subsection (g)(2)(C)) to be effective. ance and operations of State rural develop- grams that have an impact on rural areas to ‘‘(2) QUORUM.—A quorum of State members ment councils (including activities related provide assistance to, and enter into con- shall be required to be present for the Au- to grants, contracts, and other agreements tracts with, a State rural development coun- thority to make any policy decision, includ- in accordance with this section) on an equal cil, as described in subparagraph (A). ing— basis with other members of the State rural ‘‘(3) CONTRIBUTIONS.—A State rural devel- ‘‘(A) a modification or revision of an Au- development councils. opment council may accept private contribu- thority policy decision; ‘‘(B) CONFLICTS.—Participation by a Fed- tions. ‘‘(B) approval of a State or regional devel- eral employee in a State rural development ‘‘(g) TERMINATION.—The authority provided opment plan; and under this section shall terminate on Sep- council in accordance with this paragraph ‘‘(C) any allocation of funds among the tember 30, 2017. shall not constitute a violation of section 205 States. or 208 of title 18, United States Code. ‘‘CHAPTER 4—DELTA REGIONAL ‘‘(3) PROJECT AND GRANT PROPOSALS.—The ‘‘(d) ADMINISTRATIVE SUPPORT OF THE AUTHORITY approval of project and grant proposals shall PARTNERSHIP.— ‘‘SEC. 3801. DEFINITIONS. be— ‘‘(1) DETAIL OF EMPLOYEES.— ‘‘In this chapter: ‘‘(A) a responsibility of the Authority; and ‘‘(A) IN GENERAL.—In order to provide expe- ‘‘(1) AUTHORITY.—The term ‘Authority’ ‘‘(B) conducted in accordance with section rience in intergovernmental collaboration, means the Delta Regional Authority estab- 3809. the head of an agency with rural responsibil- lished by section 3802. ‘‘(4) VOTING BY ALTERNATE MEMBERS.—An ities that elects to participate in the Part- ‘‘(2) FEDERAL GRANT PROGRAM.—The term alternate member shall vote in the case of nership may, and is encouraged to, detail to ‘Federal grant program’ means a Federal the absence, death, disability, removal, or the Secretary for the support of the Partner- grant program to provide assistance in— ship 1 or more employees of the agency with resignation of the Federal or State rep- ‘‘(A) acquiring or developing land; resentative for which the alternate member rural responsibilities without reimburse- ‘‘(B) constructing or equipping a highway, ment for a period of up to 1 year. is an alternate. road, bridge, or facility; or ‘‘(d) DUTIES.—The Authority shall— ‘‘(B) CIVIL SERVICE STATUS.—The detail ‘‘(C) carrying out other economic develop- shall be without interruption or loss of civil ‘‘(1) develop, on a continuing basis, comment activities. prehensive and coordinated plans and pro- service status or privilege. ‘‘(3) REGION.—The term ‘region’ means the ‘‘(2) ADDITIONAL SUPPORT.—The Secretary grams to establish priorities and approve Lower Mississippi (as defined in section 4 of grants for the economic development of the may provide for any additional support staff the Delta Development Act (42 U.S.C. 3121 to the Partnership as the Secretary deter- region, giving due consideration to other note; Public Law 100–460)). Federal, State, and local planning and devel- mines to be necessary to carry out the duties ‘‘SEC. 3802. DELTA REGIONAL AUTHORITY. of the Partnership. opment activities in the region; ‘‘(a) ESTABLISHMENT.— ‘‘(2) review, and where appropriate amend, ‘‘(3) INTERMEDIARIES.—The Secretary may ‘‘(1) IN GENERAL.—There is established the enter into a contract with a qualified inter- priorities in a development plan for the re- Delta Regional Authority. gion (including 5-year regional outcome tar- mediary under which the intermediary shall ‘‘(2) COMPOSITION.—The Authority shall be be responsible for providing administrative gets); composed of— ‘‘(3) assess the needs and assets of the re- and technical assistance to a State rural de- ‘‘(A) a Federal member, to be appointed by gion based on available research, demonstra- velopment council, including administering the President, with the advice and consent of tions, investigations, assessments, and eval- the financial assistance available to the the Senate; and uations of the region prepared by Federal, State rural development council. ‘‘(B) the Governor (or a designee of the State, and local agencies, universities, local ‘‘(e) MATCHING REQUIREMENTS FOR STATE Governor) of each State in the region that development districts, and other nonprofit RURAL DEVELOPMENT COUNCILS.— elects to participate in the Authority. groups; ‘‘(1) IN GENERAL.—Except as provided in ‘‘(3) COCHAIRPERSONS.—The Authority shall ‘‘(4) formulate and recommend to the Gov- paragraph (2), a State rural development be headed by— ernors and legislatures of States that par- council shall provide matching funds, or in- ‘‘(A) the Federal member, who shall serve ticipate in the Authority forms of interstate kind goods or services, to support the activi- as— ties of the State rural development council ‘‘(i) the Federal cochairperson; and cooperation; in an amount that is not less than 33 percent ‘‘(ii) a liaison between the Federal Govern- ‘‘(5) work with State and local agencies in of the amount of Federal funds received from ment and the Authority; and developing appropriate model legislation; a Federal agency under subsection (f)(2). ‘‘(B) a State cochairperson, who shall be— ‘‘(6)(A) enhance the capacity of, and pro- ‘‘(2) EXCEPTIONS TO MATCHING REQUIREMENT ‘‘(i) a Governor of a participating State in vide support for, local development districts FOR CERTAIN FEDERAL FUNDS.—Paragraph (1) the region; and in the region; or shall not apply to funds, grants, funds pro- ‘‘(ii) elected by the State members for a ‘‘(B) if no local development district exists vided under contracts or cooperative agree- term of not less than 1 year. in an area in a participating State in the re- ments, gifts, contributions, or technical as- ‘‘(4) ALABAMA.—Notwithstanding any other gion, foster the creation of a local develop- sistance received by a State rural develop- provision of law, the State of Alabama shall ment district; ment council from a Federal agency that are be a full member of the Authority and shall ‘‘(7) encourage private investment in in- used— be entitled to all rights and privileges that dustrial, commercial, and other economic ‘‘(A) to support 1 or more specific program the membership affords to all other partici- development projects in the region; and or project activities; or pating States in the Authority. ‘‘(8) cooperate with and assist State gov- ‘‘(B) to reimburse the State rural develop- ‘‘(b) ALTERNATE MEMBERS.— ernments with economic development pro- ment council for services provided to the ‘‘(1) STATE ALTERNATES.—The State mem- grams of participating States. Federal agency providing the funds, grants, ber of a participating State may have a sin- ‘‘(e) ADMINISTRATION.—In carrying out sub- funds provided under contracts or coopera- gle alternate, who shall be— section (d), the Authority may— tive agreements, gifts, contributions, or ‘‘(A) a resident of that State; and ‘‘(1) hold such hearings, sit and act at such technical assistance. ‘‘(B) appointed by the Governor of the times and places, take such testimony, re- ‘‘(3) DEPARTMENT’S SHARE.—The Secretary State. ceive such evidence, and print or otherwise shall develop a plan to decrease, over time, ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.— reproduce and distribute a description of the the share of the Department of Agriculture The President shall appoint an alternate proceedings and reports on actions by the of the cost of the core operations of State Federal cochairperson. Authority as the Authority considers appro- rural development councils. ‘‘(3) QUORUM.—A State alternate shall not priate; ‘‘(f) FUNDING.— be counted toward the establishment of a ‘‘(2) authorize, through the Federal or ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— quorum of the Authority in any instance in State cochairperson or any other member of There is authorized to be appropriated to which a quorum of the State members is re- the Authority designated by the Authority, carry out this section $5,000,000 for each of quired to be present. the administration of oaths if the Authority fiscal years 2013 through 2017. ‘‘(4) DELEGATION OF POWER.—No power or determines that testimony should be taken ‘‘(2) FEDERAL AGENCIES.— responsibility of the Authority specified in or evidence received under oath;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00121 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4554 CONGRESSIONAL RECORD — SENATE June 25, 2012 ‘‘(3) request from any Federal, State, or ‘‘(ii) no member of the Authority from the of advice, investigation, or otherwise, in any local department or agency such information State shall participate or vote in any action proceeding, application, request for a ruling as may be available to or procurable by the by the Authority. or other determination, contract, claim, con- department or agency that may be of use to ‘‘(h) COMPENSATION.— troversy, or other matter in which, to the Authority in carrying out duties of the ‘‘(1) FEDERAL COCHAIRPERSON.—The Federal knowledge of the member, alternate, officer, Authority; cochairperson shall be compensated by the or employee, there is a financial interest of— ‘‘(4) adopt, amend, and repeal bylaws, Federal Government at level III of the Exec- ‘‘(A) the member, alternate, officer, or em- rules, and regulations governing the conduct utive Schedule in subchapter II of chapter 53 ployee; of Authority business and the performance of of title 5, United States Code. ‘‘(B) the spouse, minor child, partner, or Authority duties; ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.— organization (other than a State or political ‘‘(5) request the head of any Federal de- The alternate Federal cochairperson— subdivision of the State) of the member, al- partment or agency to detail to the Author- ‘‘(A) shall be compensated by the Federal ternate, officer, or employee, in which the ity such personnel as the Authority requires Government at level V of the Executive member, alternate, officer, or employee is to carry out duties of the Authority, each Schedule described in paragraph (1); and serving as officer, director, trustee, partner, such detail to be without loss of seniority, ‘‘(B) when not actively serving as an alter- or employee; or pay, or other employee status; nate for the Federal cochairperson, shall per- ‘‘(C) any person or organization with whom ‘‘(6) request the head of any State depart- form such functions and duties as are dele- the member, alternate, officer, or employee ment or agency or local government to de- gated by the Federal cochairperson. is negotiating or has any arrangement con- tail to the Authority such personnel as the ‘‘(3) STATE MEMBERS AND ALTERNATES.— cerning prospective employment. Authority requires to carry out duties of the ‘‘(A) IN GENERAL.—A State shall com- ‘‘(2) DISCLOSURE.—Paragraph (1) shall not Authority, each such detail to be without pensate each member and alternate rep- apply if the State member, alternate, officer, loss of seniority, pay, or other employee sta- resenting the State on the Authority at the or employee— tus; rate established by law of the State. ‘‘(A) immediately advises the Authority of ‘‘(7) provide for coverage of Authority em- ‘‘(B) NO ADDITIONAL COMPENSATION.—No the nature and circumstances of the pro- ployees in a suitable retirement and em- State member or alternate member shall re- ceeding, application, request for a ruling or ployee benefit system by— ceive any salary, or any contribution to or other determination, contract, claim, con- ‘‘(A) making arrangements or entering supplementation of salary from any source troversy, or other particular matter pre- into contracts with any participating State other than the State for services provided by senting a potential conflict of interest; the member or alternate to the Authority. government; or ‘‘(B) makes full disclosure of the financial ‘‘(4) DETAILED EMPLOYEES.— ‘‘(B) otherwise providing retirement and interest; and ‘‘(A) IN GENERAL.—No person detailed to other employee benefit coverage; ‘‘(C) before the proceeding concerning the serve the Authority under subsection (e)(6) ‘‘(8) accept, use, and dispose of gifts or do- matter presenting the conflict of interest, shall receive any salary or any contribution nations of services or real, personal, tan- receives a written determination by the Au- to or supplementation of salary for services gible, or intangible property; thority that the interest is not so substan- provided to the Authority from— ‘‘(9) enter into and perform such contracts, tial as to be likely to affect the integrity of ‘‘(i) any source other than the State, local, leases, cooperative agreements, or other the services that the Authority may expect or intergovernmental department or agency transactions as are necessary to carry out from the State member, alternate, officer, or from which the person was detailed; or Authority duties, including any contracts, ‘‘(ii) the Authority. employee. leases, or cooperative agreements with— ‘‘(3) VIOLATION.—Any person that violates ‘‘(B) VIOLATION.—Any person that violates ‘‘(A) any department, agency, or instru- this paragraph shall be fined not more than this subsection shall be fined not more than mentality of the United States; $5,000, imprisoned not more than 1 year, or $10,000, imprisoned not more than 2 years, or ‘‘(B) any State (including a political sub- both. both. division, agency, or instrumentality of the ‘‘(C) APPLICABLE LAW.—The Federal co- ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND State); or chairperson, the alternate Federal cochair- GRANTS.—The Authority may declare void ‘‘(C) any person, firm, association, or cor- person, and any Federal officer or employee any contract, loan, or grant of or by the Au- poration; and detailed to duty on the Authority under sub- thority in relation to which the Authority ‘‘(10) establish and maintain a central of- section (e)(5) shall not be subject to subpara- determines that there has been a violation of fice and field offices at such locations as the graph (A), but shall remain subject to sec- any provision under subsection (h)(4), sub- Authority may select. tions 202 through 209 of title 18, United section (i), or sections 202 through 209 of title ‘‘(f) FEDERAL AGENCY COOPERATION.—A States Code. 18, United States Code. Federal agency shall— ‘‘(5) ADDITIONAL PERSONNEL.— ‘‘(1) cooperate with the Authority; and ‘‘SEC. 3803. ECONOMIC AND COMMUNITY DEVEL- ‘‘(A) COMPENSATION.— OPMENT GRANTS. ‘‘(2) provide, on request of the Federal co- ‘‘(i) IN GENERAL.—The Authority may ap- chairperson, appropriate assistance in car- point and fix the compensation of an execu- ‘‘(a) IN GENERAL.—The Authority may ap- rying out this chapter, in accordance with tive director and such other personnel as are prove grants to States and public and non- applicable Federal laws (including regula- necessary to enable the Authority to carry profit entities for projects, approved in actions). out the duties of the Authority. cordance with section 3809— ‘‘(1) to develop the transportation infra- ‘‘(g) ADMINISTRATIVE EXPENSES.— ‘‘(ii) EXCEPTION.—Compensation under ‘‘(1) IN GENERAL.—Administrative expenses clause (i) shall not exceed the maximum rate structure of the region for the purpose of fa- of the Authority (except for the expenses of for the Senior Executive Service under sec- cilitating economic development in the re- the Federal cochairperson, including ex- tion 5382 of title 5, United States Code, in- gion (except that grants for this purpose penses of the alternate and staff of the Fed- cluding any applicable locality-based com- may only be made to a State or local govern- eral cochairperson, which shall be paid sole- parability payment that may be authorized ment); ly by the Federal Government) shall be under section 5304(h)(2)(C) of that title. ‘‘(2) to assist the region in obtaining the job training, employment-related education, paid— ‘‘(B) EXECUTIVE DIRECTOR.—The executive ‘‘(A) by the Federal Government, in an director shall be responsible for— and business development (with an emphasis amount equal to 50 percent of the adminis- ‘‘(i) the carrying out of the administrative on entrepreneurship) that are needed to trative expenses; and duties of the Authority; build and maintain strong local economies; ‘‘(B) by the States in the region partici- ‘‘(ii) direction of the Authority staff; and ‘‘(3) to provide assistance to severely dis- pating in the Authority, in an amount equal ‘‘(iii) such other duties as the Authority tressed and underdeveloped areas that lack to 50 percent of the administrative expenses. may assign. financial resources for improving basic public services; ‘‘(2) STATE SHARE.— ‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No ‘‘(A) IN GENERAL.—The share of administra- member, alternate, officer, or employee of ‘‘(4) to provide assistance to severely dis- tive expenses of the Authority to be paid by the Authority (except the Federal cochair- tressed and underdeveloped areas that lack each State shall be determined by the Au- person of the Authority, the alternate and financial resources for equipping industrial thority. staff for the Federal cochairperson, and any parks and related facilities; and ‘‘(B) NO FEDERAL PARTICIPATION.—The Fed- Federal employee detailed to the Authority ‘‘(5) to otherwise achieve the purposes of eral cochairperson shall not participate or under subsection (e)(5)) shall be considered this chapter. vote in any decision under subparagraph (A). to be a Federal employee for any purpose. ‘‘(b) FUNDING.— ‘‘(C) DELINQUENT STATES.—If a State is de- ‘‘(i) CONFLICTS OF INTEREST.— ‘‘(1) IN GENERAL.—Funds for grants under linquent in payment of the State’s share of ‘‘(1) IN GENERAL.—Except as provided under subsection (a) may be provided— administrative expenses of the Authority paragraph (2), no State member, alternate, ‘‘(A) entirely from appropriations to carry under this subsection— officer, or employee of the Authority shall out this section; ‘‘(i) no assistance under this chapter shall participate personally and substantially as a ‘‘(B) in combination with funds available be furnished to the State (including assist- member, alternate, officer, or employee of under another Federal or Federal grant pro- ance to a political subdivision or a resident the Authority, through decision, approval, gram; or of the State); and disapproval, recommendation, the rendering ‘‘(C) from any other source.

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‘‘(2) PRIORITY OF FUNDING.—To best build ‘‘SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; ‘‘(A) are involved in multijurisdictional the foundations for long-term economic de- CERTIFICATION AND ADMINISTRA- planning; velopment and to complement other Federal TIVE EXPENSES. ‘‘(B) provide technical assistance to local and State resources in the region, Federal ‘‘(a) DEFINITION OF LOCAL DEVELOPMENT jurisdictions and potential grantees; and funds available under this chapter shall be DISTRICT.—In this section, the term ‘local ‘‘(C) provide leadership and civic develop- focused on the activities in the following development district’ means an entity that— ment assistance. order or priority: ‘‘(1) is— ‘‘SEC. 3806. DISTRESSED COUNTIES AND AREAS ‘‘(A) Basic public infrastructure in dis- ‘‘(A) a planning district in existence on the AND NONDISTRESSED COUNTIES. tressed counties and isolated areas of dis- date of enactment of the Agriculture Re- ‘‘(a) DESIGNATIONS.—Each year, the Au- tress. form, Food, and Jobs Act of 2012 that is rec- thority, in accordance with such criteria as ‘‘(B) Transportation infrastructure for the ognized by the Secretary; or the Authority may establish, shall des- purpose of facilitating economic develop- ‘‘(B) if an entity described in subparagraph ignate— ment in the region. (A) does not exist— ‘‘(1) as distressed counties, counties in the ‘‘(C) Business development, with emphasis ‘‘(i) organized and operated in a manner region that are the most severely and per- on entrepreneurship. that ensures broad-based community partici- sistently distressed and underdeveloped and ‘‘(D) Job training or employment-related pation and an effective opportunity for other have high rates of poverty or unemployment; education, with emphasis on use of existing nonprofit groups to contribute to the devel- ‘‘(2) as nondistressed counties, counties in public educational institutions located in opment and implementation of programs in the region that are not designated as dis- the region. the region; tressed counties under paragraph (1); and ‘‘(ii) governed by a policy board with at ‘‘(3) as isolated areas of distress, areas lo- ‘‘SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT least a simple majority of members con- PROGRAMS. cated in nondistressed counties (as des- sisting of elected officials or employees of a ignated under paragraph (2)) that have high ‘‘(a) FINDING.—Congress finds that certain general purpose unit of local government rates of poverty or unemployment. States and local communities of the region, who have been appointed to represent the ‘‘(b) DISTRESSED COUNTIES.— including local development districts, may government; ‘‘(1) IN GENERAL.—The Authority shall allo- be unable to take maximum advantage of ‘‘(iii) certified to the Authority as having a cate at least 75 percent of the appropriations Federal grant programs for which the States charter or authority that includes the eco- made available under section 3813 for pro- and communities are eligible because— nomic development of counties or parts of grams and projects designed to serve the ‘‘(1) the States or communities lack the counties or other political subdivisions with- needs of distressed counties and isolated economic resources to provide the required in the region— areas of distress in the region. matching share; or ‘‘(I) by the Governor of each State in which ‘‘(2) FUNDING LIMITATIONS.—The funding ‘‘(2) there are insufficient funds available the entity is located; or limitations under section 3804(b) shall not under the applicable Federal law authorizing ‘‘(II) by the State officer designated by the apply to a project providing transportation the Federal grant program to meet pressing appropriate State law to make the certifi- or basic public services to residents of 1 or needs of the region. cation; and more distressed counties or isolated areas of ‘‘(iv)(I) a nonprofit incorporated body orga- distress in the region. ‘‘(b) FEDERAL GRANT PROGRAM FUNDING.— nized or chartered under the law of the State ‘‘(c) NONDISTRESSED COUNTIES.— Notwithstanding any provision of law lim- in which the entity is located; ‘‘(1) IN GENERAL.—Except as provided in iting the Federal share, the areas eligible for ‘‘(II) a nonprofit agency or instrumentality this subsection, no funds shall be provided assistance, or the authorizations of appro- of a State or local government; under this chapter for a project located in a priations of any Federal grant program, and ‘‘(III) a public organization established be- county designated as a nondistressed county in accordance with subsection (c), the Au- fore December 21, 2000, under State law for under subsection (a)(2). thority, with the approval of the Federal co- creation of multi-jurisdictional, area-wide ‘‘(2) EXCEPTIONS.— chairperson and with respect to a project to planning organizations; or ‘‘(A) IN GENERAL.—The funding prohibition be carried out in the region— ‘‘(IV) a nonprofit association or combina- under paragraph (1) shall not apply to grants ‘‘(1) may increase the Federal share of the tion of bodies, agencies, and instrumental- to fund the administrative expenses of local costs of a project under the Federal grant ities described in subclauses (I) through (III); development districts under section 3805(b). program to not more than 90 percent (except and ‘‘(B) MULTICOUNTY PROJECTS.—The Author- as provided in section 3806(b)); and ‘‘(2) has not, as certified by the Federal co- ity may waive the application of the funding ‘‘(2) shall use amounts made available to chairperson— prohibition under paragraph (1) to a multi- carry out this chapter to pay the increased ‘‘(A) inappropriately used Federal grant county project that includes participation by Federal share. funds from any Federal source; or a nondistressed county; or any other type of ‘‘(c) CERTIFICATIONS.— ‘‘(B) appointed an officer who, during the project if the Authority determines that the ‘‘(1) IN GENERAL.—In the case of any period in which another entity inappropri- project could bring significant benefits to project for which all or any portion of the ately used Federal grant funds from any Fed- areas of the region outside a nondistressed basic Federal share of the costs of the eral source, was an officer of the other enti- county. project is proposed to be paid under this sec- ty. ‘‘(C) ISOLATED AREAS OF DISTRESS.—For a tion, no Federal contribution shall be made ‘‘(b) GRANTS TO LOCAL DEVELOPMENT DIS- designation of an isolated area of distress for until the Federal official administering the TRICTS.— assistance to be effective, the designation Federal law that authorizes the Federal ‘‘(1) IN GENERAL.—The Authority shall shall be supported— grant program certifies that the project— make grants for administrative expenses ‘‘(i) by the most recent Federal data avail- ‘‘(A) meets (except as provided in sub- under this section. able; or section (b)) the applicable requirements of ‘‘(2) CONDITIONS FOR GRANTS.— ‘‘(ii) if no recent Federal data are avail- the applicable Federal grant program; and ‘‘(A) MAXIMUM AMOUNT.—The amount of able, by the most recent data available ‘‘(B) could be approved for Federal con- any grant awarded under paragraph (1) shall through the government of the State in tribution under the Federal grant program if not exceed 80 percent of the administrative which the isolated area of distress is located. funds were available under the law for the expenses of the local development district ‘‘(d) TRANSPORTATION AND BASIC PUBLIC IN- project. receiving the grant. FRASTRUCTURE.—The Authority shall allo- ‘‘(2) CERTIFICATION BY AUTHORITY.— ‘‘(B) MAXIMUM PERIOD.—No grant described cate at least 50 percent of any funds made ‘‘(A) IN GENERAL.—The certifications and in paragraph (1) shall be awarded to a State available under section 3813 for transpor- determinations required to be made by the agency certified as a local development dis- tation and basic public infrastructure Authority for approval of projects under this trict for a period greater than 3 years. projects authorized under paragraphs (1) and Act in accordance with section 3809 shall ‘‘(C) LOCAL SHARE.—The contributions of a (3) of section 3803(a). be— local development district for administrative ‘‘SEC. 3807. DEVELOPMENT PLANNING PROCESS. ‘‘(i) controlling; and expenses may be in cash or in kind, fairly ‘‘(a) STATE DEVELOPMENT PLAN.—In ac- ‘‘(ii) accepted by the Federal agencies. evaluated, including space, equipment, and cordance with policies established by the Au- ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR- services. thority, each State member shall submit a PERSON.—In the case of any project described ‘‘(c) DUTIES OF LOCAL DEVELOPMENT DIS- development plan for the area of the region in paragraph (1), any finding, report, certifi- TRICTS.—A local development district shall— represented by the State member. cation, or documentation required to be sub- ‘‘(1) operate as a lead organization serving ‘‘(b) CONTENT OF PLAN.—A State develop- mitted with respect to the project to the multicounty areas in the region at the local ment plan submitted under subsection (a) head of the department, agency, or instru- level; and shall reflect the goals, objectives, and prior- mentality of the Federal Government re- ‘‘(2) serve as a liaison between State and ities identified in the regional development sponsible for the administration of the Fed- local governments, nonprofit organizations plan developed under section 3802(d)(2). eral grant program under which the project (including community-based groups and edu- ‘‘(c) CONSULTATION WITH INTERESTED LOCAL is carried out shall be accepted by the Fed- cational institutions), the business commu- PARTIES.—In carrying out the development eral cochairperson. nity, and citizens that— planning process (including the selection of

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(A) through (D). the development, revision, and implementa- ‘‘(d) APPROVAL OF GRANT APPLICATIONS.— ‘‘(3) REGION.—The term ‘region’ means the tion of all plans and programs under this On certification by a State member of the States of Iowa, Minnesota, Missouri (other chapter. Authority of an application for a grant or than counties included in the Delta Regional ‘‘(2) REGULATIONS.—The Authority shall other assistance for a specific project under Authority), Nebraska, North Dakota, and develop guidelines for providing public par- this section, an affirmative vote of the Au- South Dakota. ticipation described in paragraph (1), includ- thority under section 3802(c) shall be re- ‘‘SEC. 3822. NORTHERN GREAT PLAINS REGIONAL ing public hearings. quired for approval of the application. AUTHORITY. ‘‘SEC. 3808. PROGRAM DEVELOPMENT CRITERIA. ‘‘SEC. 3810. CONSENT OF STATES. ‘‘(a) ESTABLISHMENT.— ‘‘(a) IN GENERAL.—In considering programs ‘‘Nothing in this chapter requires any ‘‘(1) IN GENERAL.—There is established the and projects to be provided assistance under State to engage in or accept any program Northern Great Plains Regional Authority. this chapter and in establishing a priority under this chapter without the consent of ‘‘(2) COMPOSITION.—The Authority shall be ranking of the requests for assistance pro- the State. composed of— vided by the Authority, the Authority shall ‘‘SEC. 3811. RECORDS. ‘‘(A) a Federal member, to be appointed by follow procedures that ensure, to the max- ‘‘(a) RECORDS OF THE AUTHORITY.— the President, by and with the advice and imum extent practicable, consideration of— ‘‘(1) IN GENERAL.—The Authority shall consent of the Senate; ‘‘(1) the relationship of the project or class maintain accurate and complete records of ‘‘(B) the Governor (or a designee of the of projects to overall regional development; all transactions and activities of the Author- Governor) of each State in the region that ‘‘(2) the per capita income and poverty and ity. elects to participate in the Authority; and unemployment rates in an area; ‘‘(2) AVAILABILITY.—All records of the Au- ‘‘(C) a member of an Indian tribe, who shall ‘‘(3) the financial resources available to thority shall be available for audit and ex- be a chairperson of an Indian tribe in the re- the applicants for assistance seeking to amination by the Comptroller General of the gion or a designee of such a chairperson, to carry out the project, with emphasis on en- United States and the Inspector General of be appointed by the President, by and with suring that projects are adequately financed the Department of Agriculture (including au- the advice and consent of the Senate. to maximize the probability of successful thorized representatives of the Comptroller ‘‘(3) COCHAIRPERSONS.—The Authority shall economic development; General and the Inspector General of the De- be headed by— ‘‘(4) the importance of the project or class partment of Agriculture). ‘‘(A) the Federal member, who shall serve ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL of projects in relation to other projects or as— ASSISTANCE.— classes of projects that may be in competi- ‘‘(i) the Federal cochairperson; and ‘‘(1) IN GENERAL.—A recipient of Federal tion for the same funds; ‘‘(ii) a liaison between the Federal Govern- funds under this chapter shall, as required by ment and the Authority; ‘‘(5) the prospects that the project for the Authority, maintain accurate and com- ‘‘(B) a State cochairperson, who shall be— which assistance is sought will improve, on a plete records of transactions and activities ‘‘(i) a Governor of a participating State in continuing rather than a temporary basis, financed with Federal funds and report on the region; and the opportunities for employment, the aver- the transactions and activities to the Au- ‘‘(ii) elected by the State members for a age level of income, or the economic develop- thority. term of not less than 1 year; and ment of the area served by the project; and ‘‘(2) AVAILABILITY.—All records required ‘‘(C) the member of an Indian tribe, who ‘‘(6) the extent to which the project design under paragraph (1) shall be available for shall serve as— provides for detailed outcome measurements audit by the Comptroller General of the ‘‘(i) the tribal cochairperson; and by which grant expenditures and the results United States, the Inspector General of the ‘‘(ii) a liaison between the governments of of the expenditures may be evaluated. Department of Agriculture, and the Author- Indian tribes in the region and the Author- ‘‘(b) NO RELOCATION ASSISTANCE.— ity (including authorized representatives of ity. ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), no financial assistance author- the Comptroller General, the Inspector Gen- ‘‘(4) FAILURE TO CONFIRM.— ized by this chapter shall be used to assist a eral of the Department of Agriculture, and ‘‘(A) FEDERAL MEMBER.—Notwithstanding person or entity in relocating from 1 area to the Authority). any other provision of this section, if a Fed- another. ‘‘SEC. 3812. ANNUAL REPORT. eral member described in paragraph (2)(A) ‘‘Not later than 180 days after the end of has not been confirmed by the Senate by not ‘‘(2) OUTSIDE BUSINESSES.—Financial assistance under this chapter may be used as oth- each fiscal year, the Authority shall submit later than 180 days after the date of enact- to the President and to Congress a report de- erwise authorized by this title to attract ment of the Agriculture Reform, Food, and scribing the activities carried out under this businesses from outside the region to the re- Jobs Act of 2012, the Authority may organize chapter. gion. and operate without the Federal member. ‘‘(c) REDUCTION OF FUNDS.—Funds may be ‘‘SEC. 3813. AUTHORIZATION OF APPROPRIA- ‘‘(B) TRIBAL COCHAIRPERSON.—In the case of provided for a program or project in a State TIONS. the tribal cochairperson, if no tribal cochair- ‘‘(a) IN GENERAL.—There is authorized to under this chapter only if the Authority de- person is confirmed by the Senate, the re- be appropriated to the Authority to carry termines that the level of Federal or State gional authority shall consult and coordi- out this chapter $30,000,000 for each of fiscal financial assistance provided under a law nate with the leaders of Indian tribes in the years 2012 through 2017, to remain available other than this chapter, for the same type of region concerning the activities of the Au- until expended. program or project in the same area of the thority, as appropriate. ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more State within the region, will not be reduced ‘‘(b) ALTERNATE MEMBERS.— than 5 percent of the amount appropriated ‘‘(1) ALTERNATE FEDERAL COCHAIRPERSON.— as a result of funds made available by this under subsection (a) for a fiscal year shall be chapter. The President shall appoint an alternate used for administrative expenses of the Au- Federal cochairperson. ‘‘SEC. 3809. APPROVAL OF DEVELOPMENT PLANS thority. AND PROJECTS. ‘‘(2) STATE ALTERNATES.— ‘‘SEC. 3814. TERMINATION OF AUTHORITY. ‘‘(a) IN GENERAL.—A State or regional de- ‘‘(A) IN GENERAL.—The State member of a ‘‘This chapter and the authority provided velopment plan or any multistate sub- participating State may have a single alter- under this chapter expire on October 1, 2017. regional plan that is proposed for develop- nate, who shall be— ment under this chapter shall be reviewed ‘‘CHAPTER 5—NORTHERN GREAT PLAINS ‘‘(i) a resident of that State; and and approved by the Authority. REGIONAL AUTHORITY ‘‘(ii) appointed by the Governor of the ‘‘(b) EVALUATION BY STATE MEMBER.—An ‘‘SEC. 3821. DEFINITIONS. State. application for a grant or any other assist- ‘‘In this chapter: ‘‘(B) QUORUM.—A State alternate member ance for a project under this chapter shall be ‘‘(1) AUTHORITY.—The term ‘Authority’ shall not be counted toward the establish- made through and evaluated for approval by means the Northern Great Plains Regional ment of a quorum of the members of the Au- the State member of the Authority rep- Authority established by section 3822. thority in any case in which a quorum of the resenting the applicant. ‘‘(2) FEDERAL GRANT PROGRAM.—The term State members is required to be present. ‘‘(c) CERTIFICATION.—An application for a ‘Federal grant program’ means a Federal ‘‘(3) ALTERNATE TRIBAL COCHAIRPERSON.— grant or other assistance for a project shall grant program to provide assistance in— The President shall appoint an alternate

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tribal cochairperson, by and with the advice ‘‘(8) cooperate with and assist State gov- ‘‘(B) SHARE PAID BY EACH STATE.—The and consent of the Senate. ernments with economic development pro- share of administrative expenses of the Au- ‘‘(4) DELEGATION OF POWER.—No power or grams of participating States. thority to be paid by non-Federal sources in responsibility of the Authority specified in ‘‘(e) ADMINISTRATION.—In carrying out sub- each State shall be determined by the Au- paragraphs (2) and (3) of subsection (c), and section (d), the Authority may— thority. no voting right of any member of the Au- ‘‘(1) hold such hearings, sit and act at such ‘‘(C) NO FEDERAL PARTICIPATION.—The Fed- thority, shall be delegated to any person who times and places, take such testimony, re- eral cochairperson shall not participate or is not— ceive such evidence, and print or otherwise vote in any decision under subparagraph (B). ‘‘(A) a member of the Authority; or reproduce and distribute a description of the ‘‘(D) DELINQUENT STATES.—If a State is de- ‘‘(B) entitled to vote in Authority meet- proceedings and reports on actions by the linquent in payment of the State’s share of ings. Authority as the Authority considers appro- administrative expenses of the Authority ‘‘(c) VOTING.— priate; under this subsection— ‘‘(2) authorize, through the Federal, State, ‘‘(1) IN GENERAL.—A decision by the Au- ‘‘(i) no assistance under this chapter shall thority shall require a majority vote of the or tribal cochairperson or any other member be provided to the State (including assist- Authority (not including any member rep- of the Authority designated by the Author- ance to a political subdivision or a resident resenting a State that is delinquent under ity, the administration of oaths if the Au- of the State); and subsection (g)(2)(D)) to be effective. thority determines that testimony should be ‘‘(ii) no member of the Authority from the taken or evidence received under oath; ‘‘(2) QUORUM.—A quorum of State members State shall participate or vote in any action ‘‘(3) request from any Federal, State, trib- shall be required to be present for the Au- by the Authority. al, or local agency such information as may ‘‘(h) COMPENSATION.— thority to make any policy decision, includ- be available to or procurable by the agency ‘‘(1) FEDERAL AND TRIBAL COCHAIR- ing— that may be of use to the Authority in car- PERSONS.—The Federal cochairperson and ‘‘(A) a modification or revision of an Au- rying out the duties of the Authority; the tribal cochairperson shall be com- thority policy decision; ‘‘(4) adopt, amend, and repeal bylaws and pensated by the Federal Government at the ‘‘(B) approval of a State or regional devel- rules governing the conduct of business and annual rate of basic pay prescribed for level opment plan; and the performance of duties of the Authority; III of the Executive Schedule in subchapter ‘‘(C) any allocation of funds among the ‘‘(5) request the head of any Federal agen- II of chapter 53 of title 5, United States Code. States. cy to detail to the Authority such personnel ‘‘(2) ALTERNATE FEDERAL AND TRIBAL CO- ‘‘(3) PROJECT AND GRANT PROPOSALS.—The as the Authority requires to carry out duties CHAIRPERSONS.—The alternate Federal co- approval of project and grant proposals shall of the Authority, each such detail to be chairperson and the alternate tribal cochair- be— without loss of seniority, pay, or other em- person— ‘‘(A) a responsibility of the Authority; and ployee status; ‘‘(A) shall be compensated by the Federal ‘‘(B) conducted in accordance with section ‘‘(6) request the head of any State agency, Government at the annual rate of basic pay 3830. tribal government, or local government to prescribed for level V of the Executive ‘‘(4) VOTING BY ALTERNATE MEMBERS.—An detail to the Authority such personnel as the Schedule described in paragraph (1); and alternate member shall vote in the case of Authority requires to carry out duties of the ‘‘(B) when not actively serving as an alter- the absence, death, disability, removal, or Authority, each such detail to be without nate, shall perform such functions and duties resignation of the Federal, State, or Indian loss of seniority, pay, or other employee sta- as are delegated by the Federal cochair- tribe member for whom the alternate mem- tus; person or the tribal cochairperson, respec- ber is an alternate. ‘‘(7) provide for coverage of Authority em- tively. ‘‘(d) DUTIES.—The Authority shall— ployees in a suitable retirement and em- ‘‘(3) STATE MEMBERS AND ALTERNATES.— ‘‘(1) develop, on a continuing basis, com- ployee benefit system by— ‘‘(A) IN GENERAL.—A State shall comprehensive and coordinated plans and pro- ‘‘(A) making arrangements or entering pensate each member and alternate rep- grams for multistate cooperation to advance into contracts with any participating State resenting the State on the Authority at the the economic and social well-being of the re- government or tribal government; or rate established by State law. gion and to approve grants for the economic ‘‘(B) otherwise providing retirement and ‘‘(B) NO ADDITIONAL COMPENSATION.—No development of the region, giving due con- other employee benefit coverage; State member or alternate member shall re- sideration to other Federal, State, tribal, ‘‘(8) accept, use, and dispose of gifts or do- ceive any salary, or any contribution to or and local planning and development activi- nations of services or real, personal, tan- supplementation of salary from any source ties in the region; gible, or intangible property; other than the State for services provided by ‘‘(2) review, and when appropriate amend, ‘‘(9) enter into and perform such contracts, the member or alternate member to the Au- priorities in a development plan for the releases, cooperative agreements, or other thority. gion (including 5-year regional outcome tar- transactions as are necessary to carry out ‘‘(4) DETAILED EMPLOYEES.— gets); Authority duties, including any contracts, ‘‘(A) IN GENERAL.—No person detailed to ‘‘(3) assess the needs and assets of the releases, or cooperative agreements with— serve the Authority under subsection (e)(6) gion based on available research, demonstra- ‘‘(A) any department, agency, or instru- shall receive any salary or any contribution tions, investigations, assessments, and eval- mentality of the United States; to or supplementation of salary for services uations of the region prepared by Federal, ‘‘(B) any State (including a political sub- provided to the Authority from— State, tribal, and local agencies, univer- division, agency, or instrumentality of the ‘‘(i) any source other than the State, trib- sities, regional and local development dis- State); al, local, or intergovernmental agency from tricts or organizations, and other nonprofit ‘‘(C) any Indian tribe in the region; or which the person was detailed; or groups; ‘‘(D) any person, firm, association, or cor- ‘‘(ii) the Authority. ‘‘(4) formulate and recommend to the Gov- poration; and ‘‘(B) VIOLATION.—Any person that violates ernors and legislatures of States that par- ‘‘(10) establish and maintain a central of- this paragraph shall be fined not more than ticipate in the Authority forms of interstate fice and field offices at such locations as the $5,000, imprisoned not more than 1 year, or cooperation for— Authority may select. both. ‘‘(A) renewable energy development and ‘‘(f) FEDERAL AGENCY COOPERATION.—A ‘‘(C) APPLICABLE LAW.—The Federal co- transmission; Federal agency shall— chairperson, the alternate Federal cochair- ‘‘(B) transportation planning and economic ‘‘(1) cooperate with the Authority; and person, and any Federal officer or employee development; ‘‘(2) provide, on request of a cochairperson, detailed to duty on the Authority under sub- ‘‘(C) information technology; appropriate assistance in carrying out this section (e)(5) shall not be subject to subpara- ‘‘(D) movement of freight and individuals chapter, in accordance with applicable Fed- graph (A), but shall remain subject to sec- within the region; eral laws (including regulations). tions 202 through 209 of title 18, United ‘‘(E) federally-funded research at institu- ‘‘(g) ADMINISTRATIVE EXPENSES.— States Code. tions of higher education; and ‘‘(1) FEDERAL SHARE.—The Federal share of ‘‘(5) ADDITIONAL PERSONNEL.— ‘‘(F) conservation land management; the administrative expenses of the Authority ‘‘(A) COMPENSATION.— ‘‘(5) work with State, tribal, and local shall be— ‘‘(i) IN GENERAL.—The Authority may ap- agencies in developing appropriate model ‘‘(A) for each of fiscal years 2012 and 2013, point and fix the compensation of an execu- legislation; 100 percent; tive director and such other personnel as are ‘‘(6) enhance the capacity of, and provide ‘‘(B) for fiscal year 2014, 75 percent; and necessary to enable the Authority to carry support for, multistate development and re- ‘‘(C) for fiscal year 2015 and each fiscal out the duties of the Authority. search organizations, local development or- year thereafter, 50 percent. ‘‘(ii) EXCEPTION.—Compensation under ganizations and districts, and resource con- ‘‘(2) NON-FEDERAL SHARE.— clause (i) shall not exceed the maximum rate servation districts in the region; ‘‘(A) IN GENERAL.—The non-Federal share for the Senior Executive Service under sec- ‘‘(7) encourage private investment in in- of the administrative expenses of the Au- tion 5382 of title 5, United States Code, industrial, commercial, renewable energy, and thority shall be paid by non-Federal sources cluding any applicable locality-based com- other economic development projects in the in the States that participate in the Author- parability payment that may be authorized region; and ity. under section 5304(h)(2)(C) of that title.

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‘‘(B) EXECUTIVE DIRECTOR.—The executive ‘‘(3) to encourage and support interstate ‘‘(2) there are insufficient funds available director shall be responsible for— collaboration on federally-funded research under the applicable Federal law authorizing ‘‘(i) the carrying out of the administrative that is in the national interest; and the Federal grant program to meet pressing duties of the Authority; ‘‘(4) to establish a Regional Working Group needs of the region. ‘‘(ii) direction of the Authority staff; and on Agriculture Development and Transpor- ‘‘(b) FEDERAL GRANT PROGRAM FUNDING.— ‘‘(iii) such other duties as the Authority tation. Notwithstanding any provision of law lim- may assign. ‘‘(b) ECONOMIC ISSUES.—The multistate iting the Federal share, the areas eligible for ‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No economic issues referred to in subsection (a) member, alternate, officer, or employee of shall include— assistance, or the authorizations of appro- the Authority (except the Federal cochair- ‘‘(1) renewable energy development and priations, under any Federal grant program, person of the Authority, the alternate and transmission; and in accordance with subsection (c), the staff for the Federal cochairperson, and any ‘‘(2) transportation planning and economic Authority, with the approval of the Federal Federal employee detailed to the Authority development; cochairperson and with respect to a project under subsection (e)(5)) shall be considered ‘‘(3) information technology; to be carried out in the region— to be a Federal employee for any purpose. ‘‘(4) movement of freight and individuals ‘‘(1) may increase the Federal share of the ‘‘(i) CONFLICTS OF INTEREST.— within the region; costs of a project under any Federal grant ‘‘(1) IN GENERAL.—Except as provided under ‘‘(5) federally-funded research at institu- program to not more than 90 percent (except paragraph (2), no State member, Indian tribe tions of higher education; and as provided in section 3827(b)); and member, State alternate, officer, or em- ‘‘(6) conservation land management. ‘‘(2) shall use amounts made available to ployee of the Authority shall participate per- ‘‘SEC. 3824. ECONOMIC AND COMMUNITY DEVEL- carry out this chapter to pay the increased sonally and substantially as a member, al- OPMENT GRANTS. Federal share. ternate, officer, or employee of the Author- ‘‘(a) IN GENERAL.—The Authority may ap- ‘‘(c) CERTIFICATIONS.— ity, through decision, approval, disapproval, prove grants to States, Indian tribes, local ‘‘(1) IN GENERAL.—In the case of any recommendation, the rendering of advice, in- governments, and public and nonprofit orga- project for which all or any portion of the vestigation, or otherwise, in any proceeding, nizations for projects, approved in accord- basic Federal share of the costs of the application, request for a ruling or other de- ance with section 3830— project is proposed to be paid under this sec- termination, contract, claim, controversy, or ‘‘(1) to assist the region in obtaining the tion, no Federal contribution shall be made other matter in which, to knowledge of the job training, employment-related education, until the Federal official administering the member, alternate, officer, or employee, and business development (with an emphasis Federal law that authorizes the Federal there is a financial interest of— on entrepreneurship) that are needed to grant program certifies that the project— ‘‘(A) the member, alternate, officer, or em- build and maintain strong local economies; ‘‘(A) meets (except as provided in sub- ployee; ‘‘(2) to develop the transportation, renew- section (b)) the applicable requirements of ‘‘(B) the spouse, minor child, partner, or able energy transmission, and telecommuni- the applicable Federal grant program; and organization (other than a State or political cation infrastructure of the region for the ‘‘(B) could be approved for Federal con- subdivision of the State or the Indian tribe) purpose of facilitating economic develop- tribution under the Federal grant program if of the member, alternate, officer, or em- ment in the region (except that grants for funds were available under the law for the ployee, in which the member, alternate, offi- this purpose may be made only to States, In- project. cer, or employee is serving as officer, direc- dian tribes, local governments, and nonprofit ‘‘(2) CERTIFICATION BY AUTHORITY.— tor, trustee, partner, or employee; or organizations); ‘‘(A) IN GENERAL.—The certifications and ‘‘(C) any person or organization with whom ‘‘(3) to provide assistance to severely dis- determinations required to be made by the the member, alternate, officer, or employee tressed and underdeveloped areas that lack Authority for approval of projects under this is negotiating or has any arrangement con- financial resources for improving basic pub- Act in accordance with section 3830 shall cerning prospective employment. lic services; be— ‘‘(2) DISCLOSURE.—Paragraph (1) shall not ‘‘(4) to provide assistance to severely dis- ‘‘(i) controlling; and apply if the State member, Indian tribe tressed and underdeveloped areas that lack ‘‘(ii) accepted by the Federal agencies. member, alternate, officer, or employee— financial resources for equipping industrial ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR- ‘‘(A) immediately advises the Authority of parks and related facilities; and PERSON.—In the case of any project described the nature and circumstances of the pro- ‘‘(5) to otherwise achieve the purposes of in paragraph (1), any finding, report, certifi- ceeding, application, request for a ruling or this chapter. cation, or documentation required to be sub- other determination, contract, claim, con- ‘‘(b) FUNDING.— mitted with respect to the project to the troversy, or other particular matter pre- ‘‘(1) IN GENERAL.—Funds for grants under head of the department, agency, or instru- senting a potential conflict of interest; subsection (a) may be provided— mentality of the Federal Government re- ‘‘(B) makes full disclosure of the financial ‘‘(A) entirely from appropriations to carry sponsible for the administration of the Fed- interest; and out this section; eral grant program under which the project ‘‘(C) before the proceeding concerning the ‘‘(B) in combination with funds available is carried out shall be accepted by the Fed- matter presenting the conflict of interest, under another Federal grant program; or eral cochairperson. receives a written determination by the Au- ‘‘(C) from any other source. thority that the interest is not so substan- ‘‘(2) PRIORITY OF FUNDING.—To best build ‘‘SEC. 3826. MULTISTATE AND LOCAL DEVELOP- tial as to be likely to affect the integrity of the foundations for long-term economic de- MENT DISTRICTS AND ORGANIZA- the services that the Authority may expect TIONS AND NORTHERN GREAT velopment and to complement other Federal, PLAINS INC. from the State member, Indian tribe mem- State, and tribal resources in the region, ber, alternate, officer, or employee. Federal funds available under this chapter ‘‘(a) DEFINITION OF MULTISTATE AND LOCAL ‘‘(3) VIOLATION.—Any person that violates shall be focused on the following activities: DEVELOPMENT DISTRICT OR ORGANIZATION.— this subsection shall be fined not more than ‘‘(A) Basic public infrastructure in dis- In this section, the term ‘multistate and $10,000, imprisoned not more than 2 years, or tressed counties and isolated areas of dis- local development district or organization’ both. tress. means an entity— ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND ‘‘(B) Transportation and telecommuni- ‘‘(1) that— GRANTS.—The Authority may declare void cation infrastructure for the purpose of fa- any contract, loan, or grant of or by the Au- ‘‘(A) is a planning district that is recog- cilitating economic development in the re- thority in relation to which the Authority nized by the Economic Development Admin- gion. determines that there has been a violation of istration of the Department of Commerce; or ‘‘(C) Business development, with emphasis any provision under subsection (h)(4) or sub- ‘‘(B) is— section (i) of this chapter, or sections 202 on entrepreneurship. ‘‘(i) organized and operated in a manner through 209 of title 18, United States Code. ‘‘(D) Job training or employment-related that ensures broad-based community partici- education, with emphasis on use of existing ‘‘SEC. 3823. INTERSTATE COOPERATION FOR ECO- pation and an effective opportunity for other NOMIC OPPORTUNITY AND EFFI- public educational institutions located in nonprofit groups to contribute to the devel- CIENCY. the region. opment and implementation of programs in ‘‘(a) IN GENERAL.—The Authority shall pro- ‘‘SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT the region; vide assistance to States in developing re- PROGRAMS. ‘‘(ii) a nonprofit incorporated body orga- gional plans to address multistate economic ‘‘(a) FINDING.—Congress finds that certain nized or chartered under the law of the State issues, including plans— States and local communities of the region in which the entity is located; ‘‘(1) to develop a regional transmission sys- may be unable to take maximum advantage ‘‘(iii) a nonprofit agency or instrumen- tem for movement of renewable energy to of Federal grant programs for which the tality of a State or local government; markets outside the region; States and communities are eligible be- ‘‘(iv) a public organization established be- ‘‘(2) to address regional transportation cause— fore the date of enactment of the Agriculture concerns, including the establishment of a ‘‘(1) the States and communities lack the Reform, Food, and Jobs Act of 2012 under Northern Great Plains Regional Transpor- economic resources to provide the required State law for creation of multijurisdictional, tation Working Group; matching share; or area-wide planning organizations;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00126 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4559 ‘‘(v) a nonprofit agency or instrumentality rates of poverty, unemployment, or out- the opportunities for employment, the aver- of a State that was established for the pur- migration. age level of income, or the economic develop- pose of assisting with multistate coopera- ‘‘(b) DISTRESSED COUNTIES.— ment of the area to be served by the project; tion; or ‘‘(1) IN GENERAL.—The Authority shall allo- and ‘‘(vi) a nonprofit association or combina- cate at least 50 percent of the appropriations ‘‘(6) the extent to which the project design tion of bodies, agencies, and instrumental- made available under section 3834 for pro- provides for detailed outcome measurements ities described in clauses (ii) through (v); and grams and projects designed to serve the by which grant expenditures and the results ‘‘(2) that has not, as certified by the Au- needs of distressed counties and isolated of the expenditures may be evaluated. thority (in consultation with the Federal co- areas of distress in the region. ‘‘(b) NO RELOCATION ASSISTANCE.— chairperson or Secretary, as appropriate)— ‘‘(2) FUNDING LIMITATIONS.—The funding ‘‘(1) IN GENERAL.—Except as provided in ‘‘(A) inappropriately used Federal grant limitations under section 3825(b) shall not paragraph (2), no financial assistance author- funds from any Federal source; or apply to a project to provide transportation ized by this chapter shall be used to assist a ‘‘(B) appointed an officer who, during the or telecommunication or basic public serv- person or entity in relocating from 1 area to period in which another entity inappropri- ices to residents of 1 or more distressed another. ately used Federal grant funds from any Fed- counties or isolated areas of distress in the ‘‘(2) OUTSIDE BUSINESSES.—Financial assist- eral source, was an officer of the other enti- region. ance under this chapter may be used as oth- ty. ‘‘(c) TRANSPORTATION, TELECOMMUNICATION, erwise authorized by this title to attract ‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR RE- RENEWABLE ENERGY, AND BASIC PUBLIC IN- businesses from outside the region to the re- GIONAL DEVELOPMENT DISTRICTS AND ORGANI- FRASTRUCTURE.—The Authority shall allo- gion. ZATIONS.— cate at least 50 percent of any funds made ‘‘(c) MAINTENANCE OF EFFORT.—Funds may ‘‘(1) IN GENERAL.—The Authority may available under section 3834 for transpor- be provided for a program or project in a make grants for administrative expenses tation, telecommunication, renewable en- State under this chapter only if the Author- under this section to multistate, local, and ergy, and basic public infrastructure projects ity determines that the level of Federal or regional development districts and organiza- authorized under paragraphs (1) and (3) of State financial assistance provided under a tions. section 3824(a). law other than this chapter, for the same ‘‘(2) CONDITIONS FOR GRANTS.— ‘‘SEC. 3828. DEVELOPMENT PLANNING PROCESS. type of program or project in the same area ‘‘(A) MAXIMUM AMOUNT.—The amount of ‘‘(a) STATE DEVELOPMENT PLAN.—In ac- of the State within the region, will not be re- any grant awarded under paragraph (1) shall cordance with policies established by the Au- duced as a result of funds made available by not exceed 80 percent of the administrative thority, each State member shall submit a this chapter. expenses of the multistate, local, or regional development plan for the area of the region ‘‘SEC. 3830. APPROVAL OF DEVELOPMENT PLANS development district or organization receiv- represented by the State member. AND PROJECTS. ing the grant. ‘‘(b) CONTENT OF PLAN.—A State develop- ‘‘(a) IN GENERAL.—A State or regional de- ‘‘(B) MAXIMUM PERIOD.—No grant described ment plan submitted under subsection (a) velopment plan or any multistate sub- in paragraph (1) shall be awarded for a period shall reflect the goals, objectives, and prior- regional plan that is proposed for develop- of greater than 3 years. ities identified in the regional development ment under this chapter shall be reviewed by ‘‘(3) LOCAL SHARE.—The contributions of a plan developed under section 3823(d)(2). the Authority. multistate, local, or regional development ‘‘(c) CONSULTATION WITH INTERESTED LOCAL ‘‘(b) EVALUATION BY STATE MEMBER.—An district or organization for administrative PARTIES.—In carrying out the development application for a grant or any other assist- expenses may be in cash or in kind, fairly planning process (including the selection of ance for a project under this chapter shall be evaluated, including space, equipment, and programs and projects for assistance), a made through and evaluated for approval by services. State may— the State member of the Authority rep- ‘‘(c) DUTIES.— ‘‘(1) consult with— resenting the applicant. ‘‘(1) IN GENERAL.—Except as provided in ‘‘(A) multistate, regional, and local devel- ‘‘(c) CERTIFICATION.—An application for a paragraph (2), a local development district opment districts and organizations; and grant or other assistance for a project shall shall operate as a lead organization serving ‘‘(B) local units of government; and be approved only on certification by the multicounty areas in the region at the local ‘‘(2) take into consideration the goals, ob- State member that the application for the level. jectives, priorities, and recommendations of project— ‘‘(2) DESIGNATION.—The Federal cochair- the entities described in paragraph (1). ‘‘(1) describes ways in which the project person may designate an Indian tribe or ‘‘(d) PUBLIC PARTICIPATION.— complies with any applicable State develop- multijurisdictional organization to serve as ‘‘(1) IN GENERAL.—The Authority and appli- ment plan; a lead organization in such cases as the Fed- cable multistate, regional, and local develop- ‘‘(2) meets applicable criteria under section eral cochairperson or Secretary, as appro- ment districts and organizations shall en- 3829; priate, determines appropriate. courage and assist, to the maximum extent ‘‘(3) provides adequate assurance that the ‘‘(d) NORTHERN GREAT PLAINS INC.—North- practicable, public participation in the de- proposed project will be properly adminis- ern Great Plains Inc., a nonprofit corpora- velopment, revision, and implementation of tered, operated, and maintained; and tion incorporated in the State of Minnesota all plans and programs under this chapter. ‘‘(4) otherwise meets the requirements of to implement the recommendations of the this chapter. Northern Great Plains Rural Development ‘‘(2) REGULATIONS.—The Authority shall develop guidelines for providing public par- ‘‘(d) VOTES FOR DECISIONS.—On certifi- Commission established by the Northern cation by a State member of the Authority Great Plains Rural Development Act (7 ticipation described in paragraph (1), includ- of an application for a grant or other assist- U.S.C. 2661 note; Public Law 103–318)— ing public hearings. ance for a specific project under this section, ‘‘(1) shall serve as an independent, primary ‘‘SEC. 3829. PROGRAM DEVELOPMENT CRITERIA. an affirmative vote of the Authority under resource for the Authority on issues of con- ‘‘(a) IN GENERAL.—In considering programs section 3822(c) shall be required for approval cern to the region; and projects to be provided assistance under of the application. ‘‘(2) shall advise the Authority on develop- this chapter, and in establishing a priority ment of international trade; ranking of the requests for assistance pro- ‘‘SEC. 3831. CONSENT OF STATES. ‘‘(3) may provide research, education, vided to the Authority, the Authority shall ‘‘Nothing in this chapter requires any training, and other support to the Authority; follow procedures that ensure, to the max- State to engage in or accept any program and imum extent practicable, consideration of— under this chapter without the consent of ‘‘(4) may carry out other activities on its ‘‘(1) the relationship of the project or class the State. own behalf or on behalf of other entities. of projects to overall multistate or regional ‘‘SEC. 3832. RECORDS. ‘‘SEC. 3827. DISTRESSED COUNTIES AND AREAS development; ‘‘(a) RECORDS OF THE AUTHORITY.— AND NONDISTRESSED COUNTIES. ‘‘(2) the per capita income and poverty and ‘‘(1) IN GENERAL.—The Authority shall ‘‘(a) DESIGNATIONS.—Each year, the Au- unemployment and outmigration rates in an maintain accurate and complete records of thority, in accordance with such criteria as area; all transactions and activities of the Author- the Authority may establish, shall des- ‘‘(3) the financial resources available to ity. ignate— the applicants for assistance seeking to ‘‘(2) AVAILABILITY.—All records of the Au- ‘‘(1) as distressed counties, counties in the carry out the project, with emphasis on en- thority shall be available for audit and ex- region that are the most severely and per- suring that projects are adequately financed amination by the Comptroller General of the sistently distressed and underdeveloped and to maximize the probability of successful United States and the Inspector General of have high rates of poverty, unemployment, economic development; the Department of Agriculture (including au- or outmigration; ‘‘(4) the importance of the project or class thorized representatives of the Comptroller ‘‘(2) as nondistressed counties, counties in of projects in relation to other projects or General and the Inspector General of the De- the region that are not designated as dis- classes of projects that may be in competi- partment of Agriculture). tressed counties under paragraph (1); and tion for the same funds; ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ‘‘(3) as isolated areas of distress, areas lo- ‘‘(5) the prospects that the project for ASSISTANCE.— cated in nondistressed counties (as des- which assistance is sought will improve, on a ‘‘(1) IN GENERAL.—A recipient of Federal ignated under paragraph (2)) that have high continuing rather than a temporary basis, funds under this chapter shall, as required by

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the Authority, maintain accurate and com- ‘‘(c) SOURCES OF FUNDING.—The Secretary ‘‘(H) FULL FAITH AND CREDIT.—The full plete records of transactions and activities may use for the purchases— faith and credit of the United States is financed with Federal funds and report to ‘‘(1) funds from the Rural Development In- pledged to the payment of all amounts that the Authority on the transactions and ac- surance Fund with respect to rural develop- may be required to be paid under any guar- tivities to the Authority. ment loans (as defined in section 3704(a)); antee of the pool certificates issued by ap- ‘‘(2) AVAILABILITY.—All records required and proved market makers under this subsection. under paragraph (1) shall be available for ‘‘(2) funds from the Agricultural Credit In- ‘‘(I) FEES.— audit by the Comptroller General of the surance Fund with respect to all other loans ‘‘(i) IN GENERAL.—The Secretary shall not United States, the Inspector General of the under this title. collect any fee for any guarantee under this Department of Agriculture, and the Author- ‘‘(d) SALE OF GUARANTEED LOANS.— subsection. ‘‘(ii) SECRETARIAL FUNCTIONS.—Clause (i) ity (including authorized representatives of ‘‘(1) SALES.— does not preclude the Secretary from col- the Comptroller General, the Inspector Gen- ‘‘(A) REGULATION.— lecting a fee for the functions described in eral of the Department of Agriculture, and ‘‘(i) IN GENERAL.—The guaranteed portion the Authority). of any loan made under this title may be paragraph (3). ‘‘(c) ANNUAL AUDIT.—The Inspector Gen- sold by the lender, and by any subsequent ‘‘(J) DEFAULT.—Not later than 30 days after a borrower of a guaranteed loan is in eral of the Department of Agriculture shall holder, in accordance with such regulations default of any principal or interest payment audit the activities, transactions, and governing the sales as the Secretary shall es- due for 60 days or more, the Secretary records of the Authority on an annual basis. tablish, subject to clauses (ii) and (iii). shall— ‘‘SEC. 3833. ANNUAL REPORT. ‘‘(ii) FEES TO BE PAID IN FULL.—All fees due ‘‘(i) purchase the pool certificates rep- ‘‘Not later than 180 days after the end of the Secretary with respect to a guaranteed resenting ownership of the guaranteed por- each fiscal year, the Authority shall submit loan shall be paid in full before any sale. tion of the loan; and to the President and to Congress a report de- ‘‘(iii) LOAN TO BE FULLY DISBURSED.—The ‘‘(ii) pay the registered holder of the cer- scribing the activities carried out under this loan shall be fully disbursed to the borrower tificates an amount equal to the guaranteed chapter. before the sale. portion of the loan represented by the cer- ‘‘SEC. 3834. AUTHORIZATION OF APPROPRIA- ‘‘(B) POST-SALE.—After a loan is sold in the tificate. TIONS. secondary market, the lender shall— ‘‘(a) IN GENERAL.—There is authorized to ‘‘(K) PAYMENT OF CLAIMS.—If the Secretary ‘‘(i) remain obligated under the guarantee pays a claim under a guarantee issued under be appropriated to the Authority to carry agreement of the lender with the Secretary; out this chapter $30,000,000 for each of fiscal this subsection, the claim shall be sub- and rogated fully to the rights satisfied by the years 2012 through 2017, to remain available ‘‘(ii) continue to service the loan in accord- until expended. payment, as may be provided by the Sec- ance with the terms and conditions of that retary. ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more agreement. than 5 percent of the amount appropriated ‘‘(L) APPLICATION OF LAWS.—No State or ‘‘(C) PROCEDURES.—The Secretary shall de- local law, and no Federal law, shall preclude under subsection (a) for a fiscal year shall be velop such procedures as are necessary for— used for administrative expenses of the Au- or limit the exercise by the Secretary of the ‘‘(i) the facilitation, administration, and ownership rights of the Secretary in the por- thority. promotion of secondary market operations; ‘‘(c) MINIMUM STATE SHARE OF GRANTS.— tions of loans constituting the pool against and which the certificates are issued. Notwithstanding any other provision of this ‘‘(ii) determining the increase of access of chapter, for any fiscal year, the aggregate ‘‘(3) DUTIES OF THE SECRETARY.— farmers to capital at reasonable rates and ‘‘(A) IN GENERAL.—On the adoption of final amount of grants received by a State and all terms as a result of secondary market oper- persons or entities in the State under this rules and regulations, the Secretary shall— ations. ‘‘(i) provide for the central collection of chapter shall be not less than 1⁄3 of the prod- ‘‘(D) RIGHTS TO PREPAY.—This subsection uct obtained by multiplying— registration information from all partici- does not impede or extinguish— pating market makers for all loans and pool ‘‘(1) the aggregate amount of grants under ‘‘(i) the right of the borrower or the suc- this chapter for the fiscal year; and certificates sold under paragraphs (1) and (2), cessor in interest to the borrower to prepay including, with respect to each original sale ‘‘(2) the ratio that— (in whole or in part) any loan made under ‘‘(A) the population of the State (as deter- and any subsequent sale— this title; or ‘‘(I) identification of the interest rate paid mined by the Secretary of Commerce based ‘‘(ii) the rights of any party under any pro- by the borrower to the lender; on the most recent decennial census for vision of this title. ‘‘(II) the servicing fee of the lender; which data are available); bears to ‘‘(2) ISSUE POOL CERTIFICATES.— ‘‘(III) disclosure of whether interest on the ‘‘(B) the population of the region (as so de- ‘‘(A) IN GENERAL.—The Secretary may, di- loan is at a fixed or variable rate; termined). rectly or through a market maker approved ‘‘(IV) identification of each purchaser of a ‘‘SEC. 3835. TERMINATION OF AUTHORITY. by the Secretary, issue pool certificates rep- pool certificate; ‘‘The authority provided by this chapter resenting ownership of part or all of the ‘‘(V) the interest rate paid on the certifi- terminates effective October 1, 2017. guaranteed portion of any loan guaranteed cate; and ‘‘Subtitle C—General Provisions by the Secretary under this title. ‘‘(VI) such other information as the Sec- ‘‘SEC. 3901. FULL FAITH AND CREDIT. ‘‘(B) APPROVAL.—Certificates under sub- retary considers appropriate. ‘‘(a) IN GENERAL.—A contract of insurance paragraph (A) shall be based on and backed ‘‘(ii) before any sale, require the seller (as or guarantee executed by the Secretary by a pool established or approved by the Sec- defined in subparagraph (B) to disclose to under this title shall be an obligation sup- retary and composed solely of the entire each prospective purchaser of the portion of ported by the full faith and credit of the guaranteed portion of the loans. a loan guaranteed under this title and to United States. ‘‘(C) GUARANTEE OF POOL.—On such terms each prospective purchaser of a pool certifi- ‘‘(b) CONTESTABILITY.—A contract of insur- and conditions as the Secretary considers ap- cate issued under paragraph (2) information ance or guarantee executed by the Secretary propriate, the Secretary may guarantee the on the terms, conditions, and yield of such under this title shall be incontestable except timely payment of the principal and interest instrument; for fraud or misrepresentation that the lend- on pool certificates issued on behalf of the ‘‘(iii) provide for adequate custody of any er or any holder— Secretary by approved market makers for pooled guaranteed loans; ‘‘(1) has actual knowledge of at the time purposes of this subsection. ‘‘(iv) take such actions as are necessary, in the contract of insurance or guarantee is ex- ‘‘(D) LIMITATIONS.—A guarantee under sub- restructuring pools of the guaranteed por- ecuted; or paragraph (C) shall be limited to the extent tion of loans, to minimize the estimated ‘‘(2) participates in or condones. of principal and interest on the guaranteed costs of paying claims under guarantees ‘‘SEC. 3902. PURCHASE AND SALE OF GUARAN- portions of loans that compose the pool. issued under this subsection; TEED PORTIONS OF LOANS. ‘‘(E) PREPAYMENT.—If a loan in a pool is ‘‘(v) require each market maker— ‘‘(a) IN GENERAL.—Subject to subsections prepaid, either voluntarily or by reason of ‘‘(I) to service all pools formed, and par- (b) and (c), the Secretary may purchase, on default, the guarantee of timely payment of ticipations sold, by the market maker; and such terms and conditions as the Secretary principal and interest on the pool certifi- ‘‘(II) to provide the Secretary with infor- considers appropriate, the guaranteed por- cates shall be reduced in proportion to the mation relating to the collection and dis- tion of a loan guaranteed under this title, if amount of principal and interest that the bursement of all periodic payments, prepay- the Secretary determines that an adequate prepaid loan represents in the pool. ments, and default funds from lenders, to or secondary market is not available in the pri- ‘‘(F) INTEREST ACCRUAL.—Interest on pre- from the reserve fund that the Secretary vate sector. paid or defaulted loans shall accrue and be shall establish to enable the timely payment ‘‘(b) MAXIMUM PAYMENT.—The Secretary guaranteed by the Secretary only through guarantee to be self-funding, and from all may not pay for any guaranteed portion of a the date of payment on the guarantee. beneficial holders; and loan under subsection (a) in excess of an ‘‘(G) REDEMPTION.—During the term of the ‘‘(vi) regulate market makers in pool cer- amount equal to the unpaid principal bal- pool certificate, the certificate may be called tificates sold under this subsection. ance and accrued interest on the guaranteed for redemption due to prepayment or default ‘‘(B) DEFINITION OF SELLER.—For purposes portion of the loan. of all loans constituting the pool. of subparagraph (A)(ii), if the instrument

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00128 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4561 being sold is a loan, the term ‘seller’ does ‘‘(8) notwithstanding that an area ceases, Counsel of the Department, or a private at- not include— or has ceased, to be rural, in a rural area, or torney who has entered into a contract with ‘‘(i) the person who made the loan; or an eligible area, make loans and grants, and the Secretary. ‘‘(ii) any person who sells 3 or fewer guar- approve transfers and assumptions, under ‘‘(e) PRIVATE COLLECTION AGENCY.—The anteed loans per year. this title on the same basis as though the Secretary may use a private collection agen- ‘‘(4) CONTRACT FOR SERVICES.—The Sec- area still was rural in connection with prop- cy to collect a claim or obligation described retary may contract for goods and services erty securing any loan made or guaranteed in subsection (a)(5). to be used for the purposes of this subsection by the Secretary under this title or in con- ‘‘(f) SECURITY SERVICING.— without regard to titles 5, 40, and 41, United nection with any property held by the Sec- ‘‘(1) IN GENERAL.—The Secretary may— States Code (including any regulations retary under this title. ‘‘(A) make advances, without regard to any issued under those titles). ‘‘(b) LOAN ADJUSTMENTS.— loan or total indebtedness limitation, to pre- O LIQUIDATION OF PROPERTY ‘‘SEC. 3903. ADMINISTRATION. ‘‘(1) N .—The serve and protect the security for, or the lien Secretary may not require liquidation of ‘‘(a) POWERS OF SECRETARY.—The Sec- or priority of the lien securing any loan or property securing any farmer program loan retary may— other indebtedness owing to or acquired by or acceleration of any payment required ‘‘(1)(A) administer the powers and duties of the Secretary under this title or under any under any farmer program loan as a pre- the Secretary through such national, area, other program administered by the Farm requisite to initiating an action authorized State, or local offices and employees in the Service Agency, the Rural Utilities Service, under subsection (a). United States as the Secretary determines to the Rural Housing Service, or the Rural ‘‘(2) RELEASE OF PERSONAL LIABILITY.— be necessary; and Business-Cooperative Service applicable pro- ‘‘(A) IN GENERAL.—Except as provided in gram, as determined by the Secretary; and ‘‘(B) authorize an office to serve an area subparagraph (B), the Secretary may release composed of 2 or more States if the Sec- ‘‘(B)(i) bid for and purchase at any execu- a borrower or other person obligated on a tion, foreclosure, or other sale or otherwise retary determines that the volume of busi- debt (other than debt incurred under the ness in the area is not sufficient to justify acquire property on which the United States Housing Act of 1949 (42 U.S.C. 1441 et seq.)) has a lien by reason of a judgment or execu- separate State offices; from personal liability with or without pay- tion arising from, or that is pledged, mort- ‘‘(2)(A) accept and use voluntary and un- ment of any consideration at the time of the gaged, conveyed, attached, or levied on to se- compensated services; and compromise, adjustment, reduction, or cure the payment of, the indebtedness re- ‘‘(B) with the consent of the agency con- charge-off of any claim. gardless of whether the property is subject cerned, use the officers, employees, equip- ‘‘(B) EXCEPTION.—No compromise, adjust- to other liens; ment, and information of any agency of the ment, reduction, or charge-off of any claim ‘‘(ii) accept title to any property so pur- Federal Government, or of any State, terri- may be made or carried out after the claim chased or acquired; and tory, or political subdivision; has been referred to the Attorney General, ‘‘(iii) sell, manage, or otherwise dispose of ‘‘(3) subject to appropriations, make nec- unless the Attorney General approves. the property in accordance with this sub- essary expenditures for the purchase or hire ‘‘(3) RURAL ELECTRIFICATION SECURITY IN- section. of passenger vehicles, and such other facili- STRUMENTS.—In the case of a security instru- ‘‘(2) OPERATION OR LEASE OF REALTY.—Ex- ties and services as the Secretary may from ment entered into under the Rural Elec- cept as provided in subsections (c) and (e), time to time find necessary for the proper trification Act of 1936 (7 U.S.C. 901 et seq.), real property administered under this title administration of this title; the Secretary shall notify the Attorney Gen- may be operated or leased by the Secretary ‘‘(4) subject to subsection (b), compromise, eral of the intent of the Secretary to exer- for such period as the Secretary may con- adjust, reduce, or charge-off debts or claims cise the authority of the Secretary under sider necessary to protect the investment of (including debts and claims arising from paragraph (2). the Federal Government in the property. loan guarantees), and adjust, modify, subor- ‘‘(c) SIMPLIFIED APPLICATION FORMS FOR ‘‘(g) PAYMENTS TO LENDERS.— dinate, or release the terms of security in- LOAN GUARANTEES.— ‘‘(1) REQUIREMENT.—Not later than 90 days struments, leases, contracts, and agreements ‘‘(1) IN GENERAL.—The Secretary shall pro- entered into or administered by the Farm vide to lenders a short, simplified applica- after a court of competent jurisdiction con- Service Agency, the Rural Utilities Service, tion form for guarantees under this title of— firms a plan of reorganization under chapter the Rural Housing Service, the Rural Busi- ‘‘(A) farmer program loans the principal 12 of title 11, United States Code, for any ness-Cooperative Service, or successor agen- amount of which is $125,000 or less; and borrower to whom a lender has made a loan cies under this title, except for activities ‘‘(B) business and industry guaranteed guaranteed under this title, the Secretary conducted under the Housing Act of 1949 (42 loans under section 3601(a)(2)(A) the prin- shall pay the lender an amount estimated by U.S.C. 1441 et seq.); cipal amount of which is— the Secretary to be equal to the loss in- ‘‘(5) release mortgage and other contract ‘‘(i) in the case of a loan guarantee made curred by the lender for purposes of the guar- liens if it appears that the mortgage and during fiscal year 2002 or 2003, $400,000 or less; antee. liens have no present or prospective value or and ‘‘(2) PAYMENT TOWARD LOAN GUARANTEE.— that the enforcement of the mortgage and ‘‘(ii) in the case of a loan guarantee made Any amount paid to a lender under this sub- liens likely would be ineffectual or uneco- during any subsequent fiscal year— section with respect to a loan guaranteed nomical; ‘‘(I) $400,000 or less; or under this title shall be treated as payment ‘‘(6) obtain fidelity bonds protecting the ‘‘(II) if the Secretary determines that there towards satisfaction of the loan guarantee. Federal Government against fraud and dis- is not a significant increased risk of a de- ‘‘SEC. 3904. LOAN MORATORIUM AND POLICY ON honesty of officers and employees of the fault on the loan, $600,000 or less. FORECLOSURES. Farm Service Agency, the Rural Utilities ‘‘(2) WATER AND WASTE DISPOSAL GRANTS ‘‘(a) IN GENERAL.—In addition to any other Service, the Rural Housing Service, or the AND LOANS.—The Secretary shall develop an authority that the Secretary may have to Rural Business-Cooperative Service in lieu of application process that accelerates, to the defer principal and interest and forgo fore- faithful performance of duties bonds under maximum extent practicable, the processing closure, the Secretary may permit, at the re- section 14 of title 6, United States Code, but of applications for water and waste disposal quest of the borrower, the deferral of prin- otherwise in accordance with the section; grants or direct or guaranteed loans under cipal and interest on any outstanding loan ‘‘(7) consent to— section 3501(a)(1) the grant award amount or made or guaranteed by the Secretary under ‘‘(A) long-term leases of facilities financed principal loan amount, respectively, of this title, or under any other law adminis- under this title notwithstanding the failure which is $300,000 or less. tered by the Farm Service Agency, the Rural of the lessee to meet any of the requirements ‘‘(3) ADMINISTRATION.—In developing an ap- Utilities Service, the Rural Housing Service, of this title if the long-term leases are nec- plication under this subsection, the Sec- or the Rural Business-Cooperative Service, essary to ensure the continuation of services retary shall— and may forgo foreclosure of the loan, for for which financing was extended to the les- ‘‘(A) consult with commercial and coopera- such period as the Secretary considers nec- sor; and tive lenders; and essary on a showing by the borrower that, ‘‘(B) the transfer of property securing any ‘‘(B) ensure that— due to circumstances beyond the control of loan or financed by any loan or grant made ‘‘(i) the form can be completed manually the borrower, the borrower is temporarily or guaranteed by the Farm Service Agency, or electronically, at the option of the lender; unable to continue making payments of the the Rural Utilities Service, the Rural Hous- ‘‘(ii) the form minimizes the documenta- principal and interest when due without un- ing Service, or the Rural Business-Coopera- tion required to accompany the form; duly impairing the standard of living of the tive Service under this title, or any other ‘‘(iii) the cost of completing and processing borrower. law administered by the Secretary, on such the form is minimal; and ‘‘(b) INTEREST.— terms as the Secretary considers necessary ‘‘(iv) the form can be completed and proc- ‘‘(1) IN GENERAL.—Except as provided in to carry out the purpose of the loan or grant essed in an expeditious manner. paragraph (2), the Secretary may permit any or to protect the financial interest of the ‘‘(d) USE OF ATTORNEYS FOR PROSECUTION loan deferred under this section to bear no Federal Government, provided that the Sec- OR DEFENSE OF CLAIMS.—The Secretary may interest during or after the deferral period. retary shall document the consent of the use for the prosecution or defense of any ‘‘(2) EXCEPTION.—If the security instru- Secretary for the transfer of the property of claim or obligation described in subsection ment securing the loan is foreclosed, such in- a borrower in the file of the borrower; and (a)(5) the Attorney General, the General terest as is included in the purchase price at

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the foreclosure shall become part of the prin- ‘‘(c) FAILURE TO PAY OR COLLECT TAX.— ‘‘(7) a schedule of the amount and date of cipal and draw interest from the date of fore- The failure to pay or collect a tax under sub- payments due on each loan; and closure at the rate prescribed by law. section (a) shall not— ‘‘(8) the procedure the borrower may use to ‘‘(c) MORATORIUM REGARDING CIVIL RIGHTS ‘‘(1) be a ground for— obtain more information concerning the sta- CLAIMS.— ‘‘(A) refusal to record or file an instru- tus of the loans. ‘‘(1) IN GENERAL.—Except as otherwise pro- ment; or ‘‘SEC. 3909. CERTIFIED LENDERS PROGRAM. vided in this subsection, effective beginning ‘‘(B) failure to provide notice; or ‘‘(a) CERTIFIED LENDERS PROGRAM.— on May 22, 2008, there shall be in effect a ‘‘(2) prevent the enforcement of the instru- ‘‘(1) IN GENERAL.—The Secretary shall es- moratorium, with respect to farmer program ment in any Federal or State court. tablish a program under which the Secretary loans made under subtitle A, on all accelera- ‘‘SEC. 3907. CONFLICTS OF INTEREST. shall guarantee loans under this title that tion and foreclosure proceedings instituted ‘‘(a) ACCEPTANCE OF CONSIDERATION PRO- are made by lending institutions certified by by the Department against any farmer who— HIBITED.—No officer, attorney, or other em- the Secretary. ‘‘(A) has pending against the Department a ployee of the Department shall, directly or ‘‘(2) CERTIFICATION REQUIREMENTS.—The claim of program discrimination that is ac- indirectly, be the beneficiary of or receive Secretary shall certify a lending institution cepted by the Department as valid; or any fee, commission, gift, or other consider- that meets such criteria as the Secretary ‘‘(B) files a claim of program discrimina- ation for or in connection with any trans- may prescribe in regulations, including the tion that is accepted by the Department as action or business under this title other than ability of the institution to properly make, valid. such salary, fee, or other compensation as service, and liquidate the loans of the insti- ‘‘(2) WAIVER OF INTEREST AND OFFSETS.— the officer, attorney, or employee may re- tution. ceive as the officer, attorney, or employee. During the period of the moratorium, the ‘‘(3) CONDITION OF CERTIFICATION.— ‘‘(b) ACQUISITION OF INTEREST IN LAND PRO- Secretary shall waive the accrual of interest ‘‘(A) IN GENERAL.—As a condition of the HIBITED.— and offsets on all farmer program loans made certification, the Secretary shall require the ‘‘(1) IN GENERAL.—Except as provided in under subtitle A, B, or C for which loan ac- institution to undertake to service the loans paragraph (2), no officer or employee of the celeration or foreclosure proceedings have guaranteed by the Secretary under this sec- Department who acts on or reviews an appli- been suspended under paragraph (1). tion, using standards that are not less strin- cation made by any person under this title ‘‘(3) TERMINATION OF MORATORIUM.—The gent than generally accepted banking stand- for a loan to purchase land may acquire, di- moratorium shall terminate with respect to ards concerning loan servicing employed by rectly or indirectly, any interest in the land a claim of discrimination by a farmer on the prudent commercial or cooperative lenders. for a period of 3 years after the date on earlier of— ‘‘(B) MONITORING.—The Secretary shall, at which the action is taken or the review is ‘‘(A) the date the Secretary resolves the least annually, monitor the performance of made. claim; or each certified lender to ensure that the con- ‘‘(2) FORMER COUNTY COMMITTEE MEM- ‘‘(B) if the farmer appeals the decision of ditions of the certification are being met. BERS.—Paragraph (1) shall not apply to a the Secretary on the claim to a court of ‘‘(4) EFFECT OF CERTIFICATION.—Notwith- former member of a county committee on a competent jurisdiction, the date that the standing any other provision of law: determination by the Secretary, prior to the court renders a final decision on the claim. ‘‘(A) AMOUNT OF LOAN GUARANTEE.—In the acquisition of the interest, that the former ‘‘(4) FAILURE TO PREVAIL.—If a farmer does case of a loan made or guaranteed under sub- member acted in good faith when acting on not prevail on a claim of discrimination de- title A, the Secretary shall guarantee 80 per- or reviewing the application. scribed in paragraph (1), the farmer shall be cent of a loan made under this section by a ‘‘(c) CERTIFICATIONS ON LOANS TO FAMILY liable for any interest and offsets that ac- certified lending institution as described in crued during the period that loan accelera- MEMBERS PROHIBITED.—No member of a county committee shall knowingly make or paragraph (1), subject to a determination tion or foreclosure proceedings have been that the borrower of the loan meets the eli- suspended under paragraph (1). join in making any certification with respect to— gibility requirements and such other criteria ‘‘SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON as may be applicable to loans guaranteed by LOANS. ‘‘(1) a loan to purchase any land in which the member, or any person related to the the Secretary under other provisions of this ‘‘(a) IN GENERAL.—The Secretary shall per- member within the second degree of consan- title. mit a borrower of a loan made or guaranteed guinity or affinity, has or may acquire any ‘‘(B) CERTIFICATIONS BY LENDING INSTITU- under this title to make a prospective pay- interest; or TIONS.—In the case of loans to be guaranteed ment on the loan with proceeds from— ‘‘(2) any applicant related to the member by the Secretary under this section, the Sec- ‘‘(1) the leasing of oil, gas, or other mineral within the second degree of consanguinity or retary shall permit certified lending institu- rights to real property used to secure the affinity. tions to make appropriate certifications (as loan; or ‘‘(d) PENALTIES.—Any person violating this provided by regulations issued by the Sec- ‘‘(2) the sale of oil, gas, or other minerals section shall, on conviction of the violation, retary)— removed from real property used to secure be punished by a fine of not more than $2,000 ‘‘(i) relating to issues such as creditworthi- the loan, if the value of the rights to the oil, or imprisonment for not more than 2 years, ness, repayment ability, adequacy of collat- gas, or other minerals has not been used to or both. eral, and feasibility of farm operation; and secure the loan. ‘‘SEC. 3908. LOAN SUMMARY STATEMENTS. ‘‘(ii) that the borrower is in compliance ‘‘(b) APPLICABILITY.—Subsection (a) shall ‘‘(a) DEFINITION OF SUMMARY PERIOD.—In with all requirements of law, including regu- not apply to a borrower of a loan made or this section, the term ‘summary period’ lations issued by the Secretary. guaranteed under this title with respect to means the period beginning on the date of ‘‘(C) APPROVAL PROCESS.— which a liquidation or foreclosure proceeding issuance of the preceding loan summary ‘‘(i) IN GENERAL.—The Secretary shall ap- was pending on December 23, 1985. statement and ending on the date of issuance prove or disapprove a guarantee not later ‘‘SEC. 3906. TAXATION. of the current loan summary statement. than 14 days after the date that the lending ‘‘(a) IN GENERAL.—Except as provided in ‘‘(b) ISSUANCE OF STATEMENTS.—On the re- institution applies to the Secretary for the subsection (b), all property subject to a lien quest of a borrower of a loan made (but not guarantee. held by the United States or the title to guaranteed) under this title, the Secretary ‘‘(ii) DISAPPROVAL.—If the Secretary dis- which is acquired or held by the Secretary shall issue to the borrower a loan summary approves the loan application during the 14- under this title (other than property used for statement that reflects the account activity day period, the Secretary shall state, in administrative purposes) shall be subject to during the summary period for each loan writing, all of the reasons the application taxation by State, territory, district, and made under this title to the borrower, in- was disapproved. local political subdivisions in the same man- cluding— ‘‘(5) RELATIONSHIP TO OTHER REQUIRE- ner and to the same extent as other property ‘‘(1) the outstanding amount of principal MENTS.—Nothing in this section affects the is taxed. due on each loan at the beginning of the responsibility of the Secretary to certify eli- ‘‘(b) EXCEPTIONS.—No tax shall be imposed summary period; gibility, review financial information, and or collected as described in subsection (a) if ‘‘(2) the interest rate charged on each loan; otherwise assess an application. the tax (whether as a tax on the instrument ‘‘(3) the amount of payments made on, and ‘‘(b) PREFERRED CERTIFIED LENDERS PRO- or in connection with conveying, transfer- the application of the payments to, each GRAM.— ring, or recording the instrument) is based loan during the summary period and an ex- ‘‘(1) IN GENERAL.—The Secretary shall es- on— planation of the basis for the application of tablish a Preferred Certified Lenders Pro- ‘‘(1) the value of any notes or mortgages or the payments; gram for lenders under this title who estab- other lien instruments held by or transferred ‘‘(4) the amount of principal and interest lish— to the Secretary; due on each loan at the end of the summary ‘‘(A) knowledge of, and experience under, ‘‘(2) any notes or lien instruments adminis- period; the program established under subsection tered under this title that are made, as- ‘‘(5) the total amount of unpaid principal (a); signed, or held by a person otherwise liable and interest on all loans at the end of the ‘‘(B) knowledge of the regulations con- for the tax; or summary period; cerning the guaranteed loan program; and ‘‘(3) the value of any property conveyed or ‘‘(6) any delinquency in the repayment of ‘‘(C) proficiency related to the certified transferred to the Secretary. any loan; lender program requirements.

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‘‘(2) REVOCATION OF DESIGNATION.— and the Committee on Agriculture, Nutri- Development Act (7 U.S.C. 2008f)’’ and insert- ‘‘(A) IN GENERAL.—Subject to subparagraph tion, and Forestry of the Senate at least 30 ing ‘‘section 3424 of the Consolidated Farm (B), the designation of a lender as a Pre- days prior to the date on which the regula- and Rural Development Act’’; and ferred Certified Lender shall be revoked at tions are published in the Federal Register. (2) in subsection (n)(2), by striking ‘‘sub- any time— ‘‘SEC. 3911. EXPEDITED CLEARING OF TITLE TO title C of the Consolidated Farm and Rural ‘‘(i) that the Secretary determines that the INVENTORY PROPERTY. Development Act (7 U.S.C. 1961 et seq.)’’ and lender is not adhering to the rules and regu- ‘‘(a) IN GENERAL.—The Secretary may em- inserting ‘‘chapter 3 of subtitle A of the Con- lations applicable to the program; or ploy local attorneys, on a case-by-case basis, solidated Farm and Rural Development ‘‘(ii) if the loss experiences of a Preferred to process all legal procedures necessary to Act’’. Certified Lender are excessive as compared clear the title to foreclosed properties in the (h) Section 231(a) of the Agricultural Risk to other Preferred Certified Lenders. inventory of the Department. Protection Act of 2000 (7 U.S.C. 1632a(a)) is ‘‘(B) EFFECT.—A suspension or revocation ‘‘(b) COMPENSATION.—Attorneys shall be amended— under subparagraph (A) shall not affect any compensated at not more than the usual and (1) in paragraph (1), by striking ‘‘section outstanding guarantee. customary charges of the attorneys for the 343(a) of the Consolidated Farm and Rural ‘‘(3) CONDITION OF CERTIFICATION.—As a work. Development Act (7 U.S.C. 1991(a))’’ and in- condition of preferred certification, the Sec- ‘‘SEC. 3912. TRANSFER OF LAND TO SECRETARY. serting ‘‘section 3002 of the Consolidated retary shall require the institution to under- ‘‘The President may at any time, in the Farm and Rural Development Act’’; and take to service the loans guaranteed by the discretion of the President, transfer to the (2) in paragraph (4), by striking ‘‘section Secretary under this subsection using gen- Secretary any right, interest, or title held by 355(e) of the Consolidated Farm and Rural erally accepted banking standards con- the United States in any land acquired in the Development Act (7 U.S.C. 2003(e))’’ and in- cerning loan servicing employed by prudent program of national defense and no longer serting ‘‘section 3002 of the Consolidated commercial or cooperative lenders. needed for that purpose that the President Farm and Rural Development Act’’. ‘‘(4) MONITORING.—The Secretary shall, at finds suitable for the purposes of this title, (i) Section 14204(a) of the Food, Conserva- least annually, monitor the performance of and the Secretary shall dispose of the trans- tion, and Energy Act of 2008 (7 U.S.C. 2008q– each Preferred Certified Lender to ensure ferred land in the manner and subject to the 1(a)) is amended by striking ‘‘an entity de- that the conditions of certification are being terms and conditions of this title. scribed in section 379C(a) of the Consolidated met. ‘‘SEC. 3913. COMPETITIVE SOURCING LIMITA- Farm and Rural Development Act (7 U.S.C. ‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI- TIONS. 2008q(a))’’ and inserting ‘‘an entity deter- CATION.— ‘‘The Secretary may not complete a study mined by the Secretary’’. (j) Section 607(c)(6) of the Rural Develop- ‘‘(A) IN GENERAL.—Notwithstanding any of, or enter into a contract with a private ment Policy Act of 1972 (7 U.S.C. 2204b(c)(6)) other provision of law, the Secretary shall— party to carry out, without specific author- is amended in the last sentence— ‘‘(i) guarantee 80 percent of an approved ization in a subsequent Act of Congress, a (1) by striking ‘‘, and’’ and inserting ‘‘and loan made by a certified lending institution competitive sourcing activity of the Sec- any’’; and as described in this subsection, subject to a retary, including support personnel of the (2) by striking ‘‘required under section determination that the borrower meets the Department, relating to rural development 306(a)(12) of the Consolidated Farm and eligibility requirements or such other cri- or farmer program loans. Rural Development Act’’. teria as may be applicable to loans guaran- ‘‘SEC. 3914. REGULATIONS. ‘‘The Secretary may issue such regula- (k) Section 901(b) of the Agricultural Act teed by the Secretary under other provisions of 1970 (7 U.S.C. 2204b–1(b)) is amended by of this title; tions, prescribe such terms and conditions for making or guaranteeing loans, security striking ‘‘rural areas as defined in the pri- ‘‘(ii) permit certified lending institutions— vate business enterprise exception in section ‘‘(I) to make all decisions, with respect to instruments, and agreements, except as otherwise specified in this title, and make such 306(a)(7) of the Consolidated Farmers Home loans to be guaranteed by the Secretary Administration Act of 1961, as amended (7 delegations of authority as the Secretary under this subsection relating to credit wor- U.S.C. 1926)’’ and inserting ‘‘rural areas, as considers necessary to carry out this title.’’. thiness, the closing, monitoring, collection defined in section 3002 of the Consolidated and liquidation of loans; and SEC. 6002. CONFORMING AMENDMENTS. Farm and Rural Development Act’’. ‘‘(II) to accept appropriate certifications, (a) Section 17(c) of the Rural Electrifica- (l) Section 14220 of the Food, Conservation, as provided by regulations issued by the Sec- tion Act of 1936 (7 U.S.C. 917(c)) is amended and Energy Act of 2008 (7 U.S.C. 2206b) is retary, that the borrower is in compliance by striking paragraph (1) and inserting the amended by striking ‘‘section 343(a)(13)(A) of with all requirements of law or regulations following: the Consolidated Farm and Rural Develop- promulgated by the Secretary; and ‘‘(1) Subtitle B of the Consolidated Farm ment Act)’’ and inserting ‘‘section 3002 of the ‘‘(iii) be considered to have guaranteed 80 and Rural Development Act.’’. Consolidated Farm and Rural Development percent of a loan made by a preferred cer- (b) Section 305(c)(2)(B)(i)(I) of the Rural Act)’’. tified lending institution as described in Electrification Act of 1936 (7 U.S.C. (m) Section 2501(c)(2)(D) of the Food, Agri- paragraph (1), if the Secretary fails to ap- 935(c)(2)(B)(i)(I)) is amended by striking ‘‘sec- culture, Conservation, and Trade Act of 1990 prove or reject the application of such insti- tion 307(a)(3)(A) of the Consolidated Farm (7 U.S.C. 2279(c)(2)(D)) is amended by striking tution within 14 calendar days after the date and Rural Development Act (7 U.S.C. ‘‘sections 355(a)(1) and 355(c) of the Consoli- that the lending institution presented the 1927(a)(3)(A))’’ and inserting ‘‘section dated Farm and Rural Development Act (7 application to the Secretary. 3701(b)(2) of the Consolidated Farm and U.S.C. 2003(a)(1))’’ and inserting ‘‘paragraphs ‘‘(B) REQUIREMENT.—If the Secretary re- Rural Development Act’’. (1) and (3) of section 3416(a) of the Consoli- jects an application under subparagraph (c) Section 306F(a)(1) of the Rural Elec- dated Farm and Rural Development Act’’. (A)(iii) during the 14-day period, the Sec- trification Act of 1936 (7 U.S.C. 936f(a)(1)) is (n) Section 2501A(b) of the Food, Agri- retary shall state, in writing, the reasons the amended by striking subparagraph (B) and culture, Conservation, and Trade Act of 1990 application was rejected. inserting the following: (7 U.S.C. 2279–1(b)) is amended by striking ‘‘(c) ADMINISTRATION OF CERTIFIED LENDERS ‘‘(B) chapter 1 of subtitle B of the Consoli- ‘‘section 355(e) of the Consolidated Farm and AND PREFERRED CERTIFIED LENDERS PRO- dated Farm and Rural Development Act.’’. Rural Development Act (7 U.S.C. 2003(e))’’ (d) Section 2333(d) of the Food, Agri- GRAMS.—The Secretary may administer the and inserting ‘‘section 3002 of the Consoli- culture, Conservation, and Trade Act of 1990 loan guarantee programs under subsections dated Farm and Rural Development Act’’. (7 U.S.C. 950aaa–2(d)) is amended— (a) and (b) through central offices estab- (o) Section 7405(c)(8)(B) of the Farm Secu- (1) in paragraph (11), by adding ‘‘and’’ at lished in States or in multi-State areas. rity and Rural Investment Act of 2002 (7 the end; U.S.C. 3319f(c)(8)(B)) is amended by striking ‘‘SEC. 3910. LOANS TO RESIDENT ALIENS. (2) by striking paragraph (12); and ‘‘section 355(e) of the Consolidated Farm and ‘‘(a) IN GENERAL.—Notwithstanding the (3) by redesignating paragraph (13) as para- Rural Development Act (7 U.S.C. 2003(e))’’ provisions of this title limiting the making graph (12). and inserting ‘‘section 3002 of the Consoli- of a loan to a citizen of the United States, (e) Section 601(b) of the Rural Electrifica- dated Farm and Rural Development Act)’’. the Secretary may make a loan under this tion Act of 1936 (7 U.S.C. 950bb(b)) is amended (p) Section 1101(d)(2)(A) of the Food, Con- title to an alien lawfully admitted to the by striking paragraph (3). servation, and Energy Act of 2008 (7 U.S.C. United States for permanent residence under (f) Section 602(5) of the Emergency Live- 8711(d)(2)(A)) is amended by striking ‘‘section the Immigration and Nationality Act (8 stock Feed Assistance Act of 1988 (7 U.S.C. 355(e) of the Consolidated Farm and Rural U.S.C. 1101 et seq.). 1471(5)) is amended by striking ‘‘section Development Act (7 U.S.C. 2003(e))’’ and in- ‘‘(b) REGULATIONS.— 355(e)(1)(D)(ii) of the Consolidated Farm and serting ‘‘section 3002 of the Consolidated ‘‘(1) IN GENERAL.—No loan may be made Rural Development Act (7 U.S.C. Farm and Rural Development Act)’’. under this title to an alien referred to in sub- 1985(e)(1)(D)(ii))’’ and inserting ‘‘section (q) Section 1302(d)(2)(A) of the Food, Con- section (a) until the Secretary issues regula- 3409(c)(1)(A) of the Consolidated Farm and servation, and Energy Act of 2008 (7 U.S.C. tions establishing the terms and conditions Rural Development Act)’’. 8752(d)(2)(A)) is amended by striking ‘‘section under which the alien may receive the loan. (g) Section 508 of the Federal Crop Insur- 355(e) of the Consolidated Farm and Rural ‘‘(2) REQUIREMENT.—The Secretary shall ance Act (7 U.S.C. 1508) is amended— Development Act (7 U.S.C. 2003(e))’’ and in- submit the regulations to the Committee on (1) in subsection (b)(7)(A), by striking ‘‘sec- serting ‘‘section 3002 of the Consolidated Agriculture of the House of Representatives tion 371 of the Consolidated Farm and Rural Farm and Rural Development Act)’’.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00131 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4564 CONGRESSIONAL RECORD — SENATE June 25, 2012 (r) Section 2375(g) of the Food, Agriculture, Rural Development Act (7 U.S.C. 1983b)’’ and SEC. 6103. EXPANSION OF 911 ACCESS. Conservation, and Trade Act of 1990 (7 U.S.C. inserting ‘‘subtitle H of the Department of Section 315(d) of the Rural Electrification 6613(g)) is amended by striking ‘‘section Agriculture Reorganization Act of 1994 (7 Act of 1936 (7 U.S.C. 940e(d)) is amended by 304(b), 306(a), or 310B(e) of the Consolidated U.S.C. 6991 et seq.)’’. striking ‘‘2012’’ and inserting ‘‘2017’’. Farm and Rural Development Act (7 U.S.C. (dd) Section 181(a)(2)(B)(ii) of the Internal SEC. 6104. ACCESS TO BROADBAND TELE- 1924(b), 1926(a), and 1932(e))’’ and inserting Revenue Code of 1986 is amended by striking COMMUNICATIONS SERVICES IN ‘‘subtitle B of the Consolidated Farm and ‘‘section 2009aa–1 of title 7, United States RURAL AREAS. Rural Development Act’’. Code’’ and inserting ‘‘section 3801 of the Con- Section 601 of the Rural Electrification Act (s) Section 226B(a)(1) of the Department of solidated Farm and Rural Development of 1936 (7 U.S.C. 950bb) is amended— Agriculture Reorganization Act of 1994 (7 Act’’. (1) in subsection (a), by striking ‘‘loans U.S.C. 6934(a)(1)) is amended by striking (ee) Section 515(b)(3) of the Housing Act of and’’ and inserting ‘‘grants, loans, and’’; ‘‘section 343(a) of the Consolidated Farm and 1949 (42 U.S.C. 1485(b)(3)) is amended by strik- (2) in subsection (b), by striking paragraph Rural Development Act (7 U.S.C. 1991(a))’’ ing ‘‘all the provisions of section 309 and the (3) and inserting the following: and inserting ‘‘section 3002 of the Consoli- second and third sentences of section 308 of ‘‘(3) RURAL AREA.—The term ‘rural area’ dated Farm and Rural Development Act’’. the Consolidated Farmers Home Administra- means any area described in section 3002 of (t) Section 196(i)(3)(B) of the Federal Agri- tion Act of 1961, including the authority in the Consolidated Farm and Rural Develop- culture Improvement and Reform Act of 1996 section 309(f)(1) of that Act’’ and inserting ment Act.’’; (7 U.S.C. 7333(i)(3)(B)) is amended by striking ‘‘section 3401 of the Consolidated Farm and (3) in subsection (c)— ‘‘subtitle C of the Consolidated Farm and Rural Development Act’’. (A) in the subsection heading, by striking Rural Development Act (7 U.S.C. 1961 et (ff) Section 517(b) of the Housing Act of ‘‘LOANS AND’’ and inserting ‘‘GRANTS, LOANS, seq.)’’ and inserting ‘‘chapter 3 of subtitle A 1949 (42 U.S.C. 1487(b)) is amended in the AND’’; of the Consolidated Farm and Rural Develop- third sentence by striking ‘‘(7 U.S.C. 1929)’’ (B) in paragraph (1), by inserting ‘‘make ment Act’’. and inserting ‘‘under section 3401 of the Con- grants and’’ after ‘‘Secretary shall’’; (u) Section 9009(a)(1) of the Farm Security solidated Farm and Rural Development (C) by striking paragraph (2) and inserting and Rural Investment Act of 2002 (7 U.S.C. Act’’. the following: 8109(a)(1)) is amended by striking ‘‘section (gg) Section 3(8) of the Public Works and ‘‘(2) PRIORITY.— 343(a)(13)(A) of the Consolidated Farm and Economic Development Act of 1965 (42 U.S.C. ‘‘(A) IN GENERAL.—In making grants, loans, Rural Development Act (7 U.S.C. 3122(8)) is amended— or loan guarantees under paragraph (1), the 1991(a)(13)(A)))’’ and inserting ‘‘section 3002 (1) by striking subparagraph (B) and insert- Secretary shall— ‘‘(i) establish not less than 2, and not more of the Consolidated Farm and Rural Develop- ing the following: than 4, evaluation periods for each fiscal ment Act’’. ‘‘(B) the Delta Regional Authority estab- (v) Section 9011(c)(2)(B)(v) of the Farm Se- lished under chapter 4 of subtitle B of the year to compare grant, loan, and loan guar- curity and Rural Investment Act of 2002 (7 Consolidated Farm and Rural Development antee applications and to prioritize grants, U.S.C. 8111(c)(2)(B)(v)) is amended by strik- Act;’’; and loans, and loan guarantees to all or part of ing subclause (I)and inserting the following: (2) by striking subparagraph (D) and in- rural communities that do not have residential broadband service that meets the min- ‘‘(I) beginning farmers (as defined in ac- serting the following: imum acceptable level of broadband service cordance with section 3002 of the Consoli- ‘‘(D) the Northern Great Plains Regional established under subsection (e); dated Farm and Rural Development Act); Authority established under chapter 5 of sub- ‘‘(ii) give the highest priority to applicants or’’. title B of the Consolidated Farm and Rural (w) Section 7(b)(2)(B) of the Small Business Development Act.’’. that offer to provide broadband service to Act (15 U.S.C. 636(b)(2)(B)) is amended by (hh) Section 310(a) of the Robert T. Staf- the greatest proportion of unserved rural striking ‘‘section 321 of the Consolidated ford Disaster Relief and Emergency Assist- households or rural households that do not Farm and Rural Development Act (7 U.S.C. ance Act (42 U.S.C. 5153(a)) is amended by have residential broadband service that 1961)’’ and inserting ‘‘section 3301 of the Con- striking paragraph (4) and inserting the fol- meets the minimum acceptable level of solidated Farm and Rural Development lowing: broadband service established under sub- Act’’. ‘‘(4) Chapter 1 of subtitle B of the Consoli- section (e), as— (x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil dated Farm and Rural Development Act.’’. ‘‘(I) certified by the affected community, Conservation and Domestic Allotment Act (ii) Section 582(d)(1) of the National Flood city, county, or designee; or (16 U.S.C. 590h(b)(5)(B)(iii)(III)(bb)) is amend- Insurance Reform Act of 1994 (42 U.S.C. ‘‘(II) demonstrated on— ed by striking ‘‘section 355(e)(1) of the Con- 5154a(d)(1)) is amended by striking ‘‘section ‘‘(aa) the broadband map of the affected solidated Farm and Rural Development Act 321(a) of the Consolidated Farm and Rural State if the map contains address-level data; (7 U.S.C.A. § 2003(e)(1))’’ and inserting ‘‘sec- Development Act (7 U.S.C. 1961(a))’’ and in- or tion 3002 of the Consolidated Farm and Rural serting ‘‘section 3301(b) of the Consolidated ‘‘(bb) the National Broadband Map if ad- Development Act)’’. Farm and Rural Development Act’’. dress-level data is unavailable; and (y) Section 10(b)(3) of the Cooperative For- (jj) Section 213(c)(1) of the Biomass Energy ‘‘(iii) provide equal consideration to all estry Assistance Act of 1978 (16 U.S.C. and Alcohol Fuels Act of 1980 (42 U.S.C. qualified applicants, including those that 2106(b)(3)) is amended in the last sentence by 8813(c)(1)) is amended in the first sentence by have not previously received grants, loans, striking ‘‘set out in the first clause of sec- striking ‘‘section 309 of the Consolidated or loan guarantees under paragraph (1). tion 306(a)(7) of the Consolidated Farm and Farm and Rural Development Act or the ‘‘(B) OTHER.—After giving priority to the Rural Development Act’’ and inserting Rural Development Insurance Fund in sec- applicants described in subparagraph (A), the ‘‘given the term in section 3002 of the Con- tion 309A of such Act’’ and inserting ‘‘under Secretary shall then give priority to projects solidated Farm and Rural Development section 3401 of the Consolidated Farm and that serve rural communities— Act’’. Rural Development Act or the Rural Devel- ‘‘(i) with a population of less than 20,000 (z) Section 1201(a)(2) of the Food Security opment Insurance Fund under section 3704 of permanent residents; Act of 1985 (16 U.S.C. 3801(a)(2)) is amended that Act’’. ‘‘(ii) experiencing outmigration; by striking ‘‘section 343(a)(8) of the Consoli- (kk) Section 1323(b)(2) of the Food Security ‘‘(iii) with a high percentage of low-income dated Farm and Rural Development Act (7 Act of 1985 (Public Law 99–198; 7 U.S.C. 1932 residents; and U.S.C. 1991(a)(8))’’ and inserting ‘‘section 3002 note) is amended— ‘‘(iv) that are isolated from other signifi- of the Consolidated Farm and Rural Develop- (1) in subparagraph (A), by inserting ‘‘and’’ cant population centers.’’; and ment Act’’. at the end; (D) by adding at the end the following: (aa) Section 1238(2) of the Food Security (2) in subparagraph (B), by striking ‘‘; and’’ ‘‘(3) GRANT AMOUNTS.— Act of 1985 (16 U.S.C. 3838(2)) is amended by at the end and inserting a period; and ‘‘(A) ELIGIBILITY.—To be eligible for a striking ‘‘section 343(a) of the Consolidated (3) by striking subparagraph (C). grant under this section, the project that is Farm and Rural Development Act (7 U.S.C. Subtitle B—Rural Electrification the subject of the grant shall be carried out 1991(a))’’ and inserting ‘‘section 3002 of the SEC. 6101. DEFINITION OF RURAL AREA. in a rural area. Consolidated Farm and Rural Development Section 13(3) of the Rural Electrification ‘‘(B) MAXIMUM.—Except as provided in sub- Act’’. Act of 1936 (7 U.S.C. 913(A)) is amended by paragraph (D), the amount of any grant (bb) Section 5 of Public Law 91–229 (25 striking subparagraph (A) and inserting the made under this section shall not exceed 50 U.S.C. 492) is amended by striking ‘‘section following: percent of the development costs of the 307(a)(3)(B) of the Consolidated Farmers ‘‘(A) any area described in section project for which the grant is provided. Home Administration Act of 1961, as amend- 3002(28)(A)(i) of the Consolidated Farm and ‘‘(C) GRANT RATE.—The Secretary shall es- ed, and to the provisions of subtitle D of that Rural Development Act; and’’. tablish the grant rate for each project in ac- Act except sections 340, 341, 342, and 343’’ and SEC. 6102. GUARANTEES FOR BONDS AND NOTES cordance with regulations issued by the Sec- inserting ‘‘3105(b)(2) of the Consolidated ISSUED FOR ELECTRIFICATION OR retary that shall provide for a graduated Farm and Rural Development Act’’. TELEPHONE PURPOSES. scale of grant rates that establish higher (cc) Section 6(c) of Public Law 91–229 (25 Section 313A(f) of the Rural Electrification rates for projects in communities that U.S.C. 493(c)) is amended by striking ‘‘sec- Act of 1936 (7 U.S.C. 940c–1(f)) is amended by have— tion 333B of the Consolidated Farm and striking ‘‘2012’’ and inserting ‘‘2017’’. ‘‘(i) remote locations;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00132 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4565 ‘‘(ii) low community populations; (iii) in subparagraph (C)— ‘‘(ii) a description of each application, in- ‘‘(iii) low income levels; (I) in the subparagraph heading, by strik- cluding the status of each application; ‘‘(iv) developed the applications of the ing ‘‘3’’ and inserting ‘‘2’’; and ‘‘(iii) for each entity receiving assistance communities with the participation of com- (II) in clause (i), by inserting ‘‘the min- under this section— binations of stakeholders, including— imum acceptable level of broadband service ‘‘(I) the name of the entity; ‘‘(I) State, local, and tribal governments; established under subsection (e) in’’ after ‘‘(II) the type of assistance being received; ‘‘(II) nonprofit institutions; ‘‘service to’’; ‘‘(III) the purpose for which the entity is ‘‘(III) institutions of higher education; (C) in paragraph (3)— receiving the assistance; and ‘‘(IV) private entities; and (i) in subparagraph (A), by striking ‘‘loan ‘‘(IV) each quarterly report submitted ‘‘(V) philanthropic organizations; and or’’ and inserting ‘‘grant, loan, or’’; and under subparagraph (A); and ‘‘(v) targeted funding to provide the min- (ii) in subparagraph (B), by adding at the ‘‘(iv) such other information as is suffi- imum acceptable level of broadband service end the following: cient to allow the public to understand and established under subsection (e) in all or part ‘‘(iii) INFORMATION.—Information sub- monitor assistance provided under this sec- of an unserved community that is below that mitted under this subparagraph shall be— tion; minimum acceptable level of broadband serv- ‘‘(I) certified by the affected community, ‘‘(C) shall, in addition to other authority ice. city, county, or designee; and under applicable law, establish written pro- ‘‘(D) SECRETARIAL AUTHORITY TO ADJUST.— ‘‘(II) demonstrated on— cedures for all broadband programs adminis- The Secretary may make grants of up to 75 ‘‘(aa) the broadband map of the affected tered by the Secretary that, to the max- percent of the development costs of the State if the map contains address-level data; imum extent practicable— project for which the grant is provided to an or ‘‘(i) recover funds from loan defaults; eligible entity if the Secretary determines ‘‘(bb) the National Broadband Map if ad- ‘‘(ii)(I) deobligate awards to grantees that that the project serves a remote or low in- dress-level data is unavailable.’’; demonstrate an insufficient level of perform- come area that does not have access to (D) in paragraph (4)— ance (including failure to meet build-out re- broadband service from any provider of (i) by striking ‘‘Subject to paragraph (1),’’ quirements, service quality issues, or other broadband service (including the appli- and inserting the following: metrics determined by the Secretary) or cant).’’; ‘‘(A) IN GENERAL.—Subject to paragraph (1) (4) in subsection (d)— and subparagraph (B),’’; wasteful or fraudulent spending; and (A) in paragraph (1)(A)— (ii) by striking ‘‘loan or’’ and inserting ‘‘(II) award those funds, on a competitive (i) in the matter preceding clause (i), by ‘‘grant, loan, or’’; and basis, to new or existing applicants con- striking ‘‘loan or’’ and inserting ‘‘grant, (iii) by adding at the end the following: sistent with this section; and ‘‘(iii) consolidate and minimize overlap loan, or’’; ‘‘(B) PILOT PROGRAMS.—The Secretary may (ii) by striking clause (i) and inserting the carry out pilot programs in conjunction with among the programs; following: interested entities described in subparagraph ‘‘(D) with respect to an application for as- ‘‘(i) demonstrate the ability to furnish, im- (A) (which may be in partnership with other sistance under this section, shall— prove in order to meet the minimum accept- entities, as determined appropriate by the ‘‘(i) promptly post on the website of the able level of broadband service established Secretary) to address areas that are Rural Utility Service— under subsection (e), or extend broadband unserved or have service levels below the ‘‘(I) an announcement that identifies— service to all or part of an unserved rural minimum acceptable level of broadband serv- ‘‘(aa) each applicant; area or an area below the minimum accept- ice established under subsection (e).’’; ‘‘(bb) the amount and type of support re- able level of broadband service established (E) in paragraph (5)— quested by each applicant; and under subsection (e);’’; (i) in the matter preceding subparagraph ‘‘(II) a list of the census block groups or (iii) in clause (ii), by striking ‘‘a loan ap- (A), by striking ‘‘loan or’’ and inserting proposed service territory, in a manner spec- plication’’ and inserting ‘‘an application’’; ‘‘grant, loan, or’’; and ified by the Secretary, that the applicant and (ii) in subparagraph (C), by inserting ‘‘, and proposes to service; (iv) in clause (iii)— proportion relative to the service territory,’’ ‘‘(ii) provide not less than 15 days for (I) by striking ‘‘the loan application’’ and after ‘‘estimated number’’; broadband service providers to voluntarily inserting ‘‘the application’’; and (F) in paragraph (6), by striking ‘‘loan or’’ submit information about the broadband (II) by striking ‘‘proceeds from the loan and inserting ‘‘grant, loan, or’’; services that the providers offer in the made or guaranteed under this section are’’ (G) in paragraph (7), by striking ‘‘a loan groups or tracts listed under clause (i)(II) so and inserting ‘‘assistance under this section application’’ and inserting ‘‘an application’’; that the Secretary may assess whether the is’’; and applications submitted meet the eligibility (B) in paragraph (2)— (H) by adding at the end the following: requirements under this section; and (i) in subparagraph (A)— ‘‘(8) TRANSPARENCY AND REPORTING.—The ‘‘(iii) if no broadband service provider sub- (I) in the matter preceding clause (i)— Secretary— mits information under clause (ii), consider (aa) by striking ‘‘the proceeds of a loan ‘‘(A) shall require any entity receiving as- the number of providers in the group or tract made or guaranteed’’ and inserting ‘‘assist- sistance under this section to submit quar- to be established by reference to— ance’’; and terly, in a format specified by the Secretary, ‘‘(I) the most current National Broadband (bb) by striking ‘‘for the loan or loan guar- a report that describes— Map of the National Telecommunications antee’’ and inserting ‘‘of the eligible entity’’; ‘‘(i) the use by the entity of the assistance, and Information Administration; or (II) in clause (i), by striking ‘‘is offered including new equipment and capacity en- ‘‘(II) any other data regarding the avail- broadband service by not more than 1 incum- hancements that support high-speed ability of broadband service that the Sec- bent service provider’’ and inserting ‘‘are broadband access for educational institu- retary may collect or obtain through reason- unserved or have service levels below the tions, health care providers, and public safe- able efforts; and minimum acceptable level of broadband serv- ty service providers (including the estimated ‘‘(E) may establish additional reporting ice established under subsection (e)’’; and number of end users who are currently using and information requirements for any recipi- (III) in clause (ii), by striking ‘‘3’’ and in- or forecasted to use the new or upgraded in- ent of any assistance under this section so as serting ‘‘2’’; frastructure); and to ensure compliance with this section.’’; (ii) by striking subparagraph (B) and in- ‘‘(ii) the progress towards fulfilling the ob- (5) in subsection (e)— serting the following: jectives for which the assistance was grant- (A) by redesignating paragraph (2) as para- ‘‘(B) ADJUSTMENTS.— ed, including— graph (3); and ‘‘(i) INCREASE.—The Secretary may in- ‘‘(I) the number and location of residences (B) by striking paragraph (1) and inserting crease the household percentage requirement and businesses that will receive new the following: under subparagraph (A)(i) if— broadband service, existing network service ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘(I) more than 25 percent of the costs of improvements, and facility upgrades result- for purposes of this section, the minimum the project are funded by grants made under ing from the Federal assistance; acceptable level of broadband service for a this section; or ‘‘(II) the speed of broadband service; rural area shall be at least— ‘‘(II) the proposed service territory in- ‘‘(III) the price of broadband service; ‘‘(A) a 4-Mbps downstream transmission cludes 1 or more communities with a popu- ‘‘(IV) any changes in broadband service capacity; and lation in excess of 20,000. adoption rates, including new subscribers ‘‘(B) a 1-Mbps upstream transmission ca- ‘‘(ii) REDUCTION.—The Secretary may re- generated from demand-side projects; and pacity. duce the household percentage requirement ‘‘(V) any other metrics the Secretary de- ‘‘(2) ADJUSTMENTS.— under subparagraph (A)(i)— termines to be appropriate; ‘‘(A) IN GENERAL.—At least once every 2 ‘‘(I) to not less than 15 percent, if the pro- ‘‘(B) shall maintain a fully searchable years, the Secretary shall review, and may posed service territory does not have a popu- database, accessible on the Internet at no adjust, the minimum acceptable level of lation in excess of 5,000 people; or cost to the public, that contains, at a min- broadband service established under para- ‘‘(II) to not less than 18 percent, if the pro- imum— graph (1) to ensure that high quality, cost-ef- posed service territory does not have a popu- ‘‘(i) a list of each entity that has applied fective broadband service is provided to rural lation in excess of 7,500 people.’’; and for assistance under this section; areas over time.

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‘‘(B) CONSIDERATIONS.—In making an ad- broadband buildout data for the National ‘‘(B) any entity primarily owned or con- justment to the minimum acceptable level of Broadband Map. trolled by 1 or more entities described in broadband service under subparagraph (A), ‘‘(3) CORRECTIONS.— subparagraph (A); or the Secretary may consider establishing dif- ‘‘(A) IN GENERAL.—The Secretary shall sub- ‘‘(C) any other entity that is an eligible ferent transmission rates for fixed broadband mit to the Administration any correction to borrower of the Rural Utility Service, as de- service and mobile broadband service.’’; the National Broadband Map that is based on termined under section 1710.101 of title 7, (6) in subsection (f), by striking ‘‘make a the actual level of broadband coverage with- Code of Federal Regulations (or a successor loan or loan guarantee’’ and inserting ‘‘pro- in the rural area, including any requests for regulation). vide assistance’’; a correction from an elected or economic de- ‘‘(2) ENERGY EFFICIENCY MEASURES.—The (7) in subsection (g), by striking paragraph velopment official. term ‘energy efficiency measures’ means, for (2) and inserting the following: ‘‘(B) INCORPORATION.—Not later than 30 or at property served by an eligible entity, ‘‘(2) TERMS.—In determining the term and days after the date on which the Administra- structural improvements and investments in conditions of a loan or loan guarantee, the tion receives a correction submitted under cost-effective, commercial technologies to Secretary may— subparagraph (A), the Administration shall increase energy efficiency. ‘‘(A) consider whether the recipient would incorporate the correction into the National ‘‘(3) QUALIFIED CONSUMER.—The term be serving an area that is unserved; and Broadband Map. ‘qualified consumer’ means a consumer ‘‘(B) if the Secretary makes a determina- ‘‘(C) USE.—If the Secretary has submitted served by an eligible entity that has the abil- tion in the affirmative under subparagraph a correction to the Administration under ity to repay a loan made under subsection (A), establish a limited initial deferral period subparagraph (A), but the National (d), as determined by the eligible entity. or comparable terms necessary to achieve Broadband Map has not been updated to re- ‘‘(4) SECRETARY.—The term ‘Secretary’ the financial feasibility and long-term sus- flect the correct by the date on which the means the Secretary of Agriculture, acting tainability of the project.’’; Secretary is making a grant or loan award through the Administrator of the Rural Util- (8) in subsection (j)— decision under this section, the Secretary ities Service. (A) in the matter preceding paragraph (1), may use the correction submitted under that ‘‘(c) LOANS TO ELIGIBLE ENTITIES.— by striking ‘‘loan and loan guarantee’’; subparagraph for purposes of make the grant ‘‘(1) IN GENERAL.—Subject to paragraph (2), (B) in paragraph (1)— or loan award decision.’’; the Secretary shall make loans to eligible (i) by inserting ‘‘grants and’’ after ‘‘num- (11) subsection (l) (as redesignated by para- entities that agree to use the loan funds to ber of’’; and graph (9))— make loans to qualified consumers for the (ii) by inserting ‘‘, including any loan (A) in paragraph (1)— purpose of implementing energy efficiency measures. terms or conditions for which the Secretary (i) by striking ‘‘$25,000,000’’ and inserting ‘‘(2) REQUIREMENTS.— provided additional assistance to unserved ‘‘$50,000,000’’; and ‘‘(A) IN GENERAL.—As a condition of receiv- areas’’ before the semicolon at the end; (ii) by striking ‘‘2012’’ and inserting ‘‘2017’’; ing a loan under this subsection, an eligible (C) in paragraph (2)— and entity shall— (i) in subparagraph (A), by striking ‘‘loan’’; (B) in paragraph (2)(A)— ‘‘(i) establish a list of energy efficiency and (i) in clause (i), by striking ‘‘and’’ at the measures that is expected to decrease energy (ii) in subparagraph (B), by striking ‘‘loans end; and’’ and inserting ‘‘grants, loans, and’’; use or costs of qualified consumers; (ii) in clause (ii), by striking the period at (D) in paragraph (3), by striking ‘‘loan’’; ‘‘(ii) prepare an implementation plan for the end and inserting ‘‘; and’’; and (E) in paragraph (5), by striking ‘‘and’’ at use of the loan funds, including use of any (iii) by adding at the end the following: the end; interest to be received pursuant to sub- ‘‘(iii) set aside at least 1 percent to be used (F) in paragraph (6), by striking the period section (d)(1)(A); for— at the end and inserting ‘‘; and’’; and ‘‘(iii) provide for appropriate measurement ‘‘(I) conducting oversight under this sec- (G) by adding at the end the following: and verification to ensure— tion; and ‘‘(7) the overall progress towards fulfilling ‘‘(I) the effectiveness of the energy effi- ‘‘(II) implementing accountability meas- the goal of improving the quality of rural ciency loans made by the eligible entity; and ures and related activities authorized under life by expanding rural broadband access, as ‘‘(II) that there is no conflict of interest in demonstrated by metrics, including— this section.’’; and carrying out this section; and ‘‘(A) the number of residences and busi- (12) in subsection (m) (as redesignated by ‘‘(iv) demonstrate expertise in effective use nesses receiving new broadband services; paragraph (9))— of energy efficiency measures at an appro- ‘‘(B) network improvements, including fa- (A) by striking ‘‘loan or’’ and inserting priate scale. cility upgrades and equipment purchases; ‘‘grant, loan, or’’; and ‘‘(B) REVISION OF LIST OF ENERGY EFFI- ‘‘(C) average broadband speeds and prices (B) by striking ‘‘2012’’ and inserting ‘‘2017’’. CIENCY MEASURES.—Subject to the approval on a local and statewide basis; Subtitle C—Miscellaneous of the Secretary, an eligible entity may up- ‘‘(D) any changes in broadband adoption SEC. 6201. DISTANCE LEARNING AND TELEMEDI- date the list required under subparagraph rates; and CINE. (A)(i) to account for newly available effi- ‘‘(E) any specific activities that increased (a) AUTHORIZATION OF APPROPRIATIONS.— ciency technologies. high speed broadband access for educational Section 2335A of the Food, Agriculture, Con- ‘‘(C) EXISTING ENERGY EFFICIENCY PRO- institutions, health care providers. and pub- servation, and Trade Act of 1990 (7 U.S.C. GRAMS.—An eligible entity that, at any time lic safety service providers.’’; and 950aaa–5) is amended by striking ‘‘2012’’ and before the date that is 60 days after the date (9) by redesignating subsections (k) and (l) inserting ‘‘2017’’. of enactment of this section, has established an energy efficiency program for qualified as subsections (l) and (m), respectively; (b) CONFORMING AMENDMENT.—Section 1(b) (10) by inserting after subsection (j) the of Public Law 102–551 (7 U.S.C. 950aaa note) is consumers may use an existing list of energy following: amended by striking ‘‘2012’’ and inserting efficiency measures, implementation plan, or ‘‘(k) BROADBAND BUILDOUT DATA.— ‘‘2017’’. measurement and verification system of that ‘‘(1) IN GENERAL.—As a condition of receiv- program to satisfy the requirements of sub- ing a grant, loan, or loan guarantee under SEC. 6202. RURAL ENERGY SAVINGS PROGRAM. paragraph (A) if the Secretary determines this section, a recipient of assistance shall Subtitle E of title VI of the Farm Security the list, plan, or systems are consistent with provide to the Secretary address-level and Rural Investment Act of 2002 (Public the purposes of this section. broadband buildout data that indicates the Law 107–171; 116 Stat. 424) is amended by add- ‘‘(3) NO INTEREST.—A loan under this sub- location of new broadband service that is ing at the end the following: section shall bear no interest. being provided or upgraded within the serv- ‘‘SEC. 6407. RURAL ENERGY SAVINGS PROGRAM. ‘‘(4) REPAYMENT.—With respect to a loan ice territory supported by the grant, loan, or ‘‘(a) PURPOSE.—The purpose of this section under paragraph (1)— loan guarantee— is to create jobs, promote rural development, ‘‘(A) the term shall not exceed 20 years ‘‘(A) for purposes of inclusion in the semi- and help rural families and small businesses from the date on which the loan is closed; annual updates to the National Broadband achieve cost savings by providing loans to and Map that is managed by the National Tele- qualified consumers to implement durable ‘‘(B) except as provided in paragraph (6), communications and Information Adminis- cost-effective energy efficiency measures. the repayment of each advance shall be am- tration (referred to in this subsection as the ‘‘(b) DEFINITIONS.—In this section: ortized for a period not to exceed 10 years. ‘Administration’); and ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible ‘‘(5) AMOUNT OF ADVANCES.—Any advance of ‘‘(B) not later than 30 days after the earlier entity’ means— loan funds to an eligible entity in any single of— ‘‘(A) any public power district, public util- year shall not exceed 50 percent of the ap- ‘‘(i) the date of completion of any project ity district, or similar entity, or any electric proved loan amount. milestone established by the Secretary; or cooperative described in section 501(c)(12) or ‘‘(6) SPECIAL ADVANCE FOR START-UP ACTIVI- ‘‘(ii) the date of completion of the project. 1381(a)(2) of the Internal Revenue Code of TIES.— ‘‘(2) ADDRESS-LEVEL DATA.—Effective be- 1986, that borrowed and repaid, prepaid, or is ‘‘(A) IN GENERAL.—In order to assist an eli- ginning on the date the Administration re- paying an electric loan made or guaranteed gible entity in defraying the appropriate ceives data described in paragraph (1), the by the Rural Utilities Service (or any prede- start-up costs (as determined by the Sec- Administration shall use only address-level cessor agency); retary) of establishing new programs or

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modifying existing programs to carry out ‘‘(f) FAST START DEMONSTRATION ‘‘(B) chapter 35 of title 44, United States subsection (d), the Secretary shall allow an PROJECTS.— Code (commonly known as the ‘Paperwork eligible entity to request a special advance. ‘‘(1) IN GENERAL.—The Secretary shall offer Reduction Act’). ‘‘(B) AMOUNT.—No eligible entity may re- to enter into agreements with eligible enti- ‘‘(3) CONGRESSIONAL REVIEW OF AGENCY ceive a special advance under this paragraph ties (or groups of eligible entities) that have RULEMAKING.—In carrying out this section, for an amount that is greater than 4 percent energy efficiency programs described in sub- the Secretary shall use the authority proof the loan amount received by the eligible section (c)(2)(C) to establish an energy effi- vided under section 808 of title 5, United entity under paragraph (1). ciency loan demonstration projects con- States Code. ‘‘(C) REPAYMENT.—Repayment of the spe- sistent with the purposes of this section. ‘‘(4) INTERIM REGULATIONS.—Notwith- cial advance— ‘‘(2) EVALUATION CRITERIA.—In determining standing paragraphs (1) and (2), to the extent ‘‘(i) shall be required during the 10-year pe- which eligible entities to award loans under regulations are necessary to carry out any riod beginning on the date on which the spe- this section, the Secretary shall take into provision of this section, the Secretary shall cial advance is made; and consideration eligible entities that— implement such regulations through the pro- ‘‘(ii) at the election of the eligible entity, ‘‘(A) implement approaches to energy au- mulgation of an interim rule.’’. may be deferred to the end of the 10-year pe- dits and investments in energy efficiency SEC. 6203. FUNDING OF PENDING RURAL DEVEL- riod. measures that yield measurable and predict- OPMENT LOAN AND GRANT APPLI- ‘‘(7) LIMITATION.—All special advances able savings; CATIONS. shall be made under a loan described in para- ‘‘(B) use measurement and verification (a) IN GENERAL.—The Secretary shall use graph (1) during the first 10 years of the term processes to determine the effectiveness of funds made available under subsection (b) to of the loan. energy efficiency loans made by eligible en- provide funds for applications that are pend- ‘‘(d) LOANS TO QUALIFIED CONSUMERS.— tities; ing on the date of enactment of this Act in ‘‘(1) TERMS OF LOANS.—Loans made by an ‘‘(C) include training for employees of eli- accordance with the terms and conditions of eligible entity to qualified consumers using gible entities, including any contractors of section 6029 of the Food, Conservation, and loan funds provided by the Secretary under such entities, to implement or oversee the Energy Act of 2008 (Public Law 110–246; 122 subsection (c)— activities described in subparagraphs (A) and Stat. 1955). (b) FUNDING.—Notwithstanding any other ‘‘(A) may bear interest, not to exceed 3 per- (B); provision of law, beginning in fiscal year cent, to be used for purposes that include— ‘‘(D) provide for the participation of a ma- 2014, of the funds of the Commodity Credit ‘‘(i) to establish a loan loss reserve; and jority of eligible entities in a State; Corporation, the Secretary shall use to carry ‘‘(ii) to offset personnel and program costs ‘‘(E) reduce the need for generating capac- of eligible entities to provide the loans; out this section $50,000,000, to remain avail- ity; able until expended. ‘‘(B) shall finance energy efficiency meas- ‘‘(F) provide efficiency loans to— ures for the purpose of decreasing energy SEC. 6204. STUDY OF RURAL TRANSPORTATION ‘‘(i) in the case of a single eligible entity, ISSUES. usage or costs of the qualified consumer by not fewer than 20,000 consumers; or an amount that ensures, to the maximum ex- (a) IN GENERAL.—The Secretary and the ‘‘(ii) in the case of a group of eligible enti- Secretary of Transportation shall jointly tent practicable, that a loan term of not ties, not fewer than 80,000 consumers; and more than 10 years will not pose an undue fi- conduct a study of transportation issues re- ‘‘(G) serve areas in which, as determined garding the movement of agricultural prod- nancial burden on the qualified consumer, as by the Secretary, a large percentage of con- determined by the eligible entity; ucts, domestically produced renewable fuels, sumers reside— and domestically produced resources for the ‘‘(C) shall not be used to fund purchases of, ‘‘(i) in manufactured homes; or production of electricity for rural areas of or modifications to, personal property unless ‘‘(ii) in housing units that are more than 50 the United States, and economic develop- the personal property is or becomes attached years old. ment in those areas. to real property (including a manufactured ‘‘(3) DEADLINE FOR IMPLEMENTATION.—To (b) INCLUSIONS.—The study shall include an home) as a fixture; the maximum extent practicable, the Sec- examination of— ‘‘(D) shall be repaid through charges added retary shall enter into agreements described (1) the importance of freight transpor- to the electric bill for the property for, or at in paragraph (1) by not later than 90 days tation, including rail, truck, and barge, to— which, energy efficiency measures are or will after the date of enactment of this section. (A) the delivery of equipment, seed, fer- be implemented, on the condition that this ‘‘(4) EFFECT ON AVAILABILITY OF LOANS NA- tilizer, and other products important to the requirement does not prohibit— TIONALLY.—Nothing in this subsection shall development of agricultural commodities ‘‘(i) the voluntary prepayment of a loan by delay the availability of loans to eligible en- and products; the owner of the property; or tities on a national basis beginning not later (B) the movement of agricultural commod- ‘‘(ii) the use of any additional repayment than 180 days after the date of enactment of ities and products to market; mechanisms that are— this section. (C) the delivery of ethanol and other re- ‘‘(I) demonstrated to have appropriate risk ‘‘(5) ADDITIONAL DEMONSTRATION PROJECT newable fuels; mitigation features, as determined by the el- AUTHORITY.— (D) the delivery of domestically produced igible entity; or ‘‘(A) IN GENERAL.—The Secretary may con- resources for use in the generation of elec- ‘‘(II) required if the qualified consumer is duct demonstration projects in addition to tricity for rural areas; no longer a customer of the eligible entity; the project required by paragraph (1). (E) the location of grain elevators, ethanol and ‘‘(B) INAPPLICABILITY OF CERTAIN CRI- plants, and other facilities; ‘‘(E) shall require an energy audit by an el- TERIA.—The additional demonstration (F) the development of manufacturing fa- igible entity to determine the impact of pro- projects may be carried out without regard cilities in rural areas; and posed energy efficiency measures on the en- to subparagraphs (D), (F), or (G) of para- (G) the vitality and economic development ergy costs and consumption of the qualified graph (2). of rural communities; consumer. ‘‘(g) ADDITIONAL AUTHORITY.—The author- (2) the sufficiency in rural areas of trans- ‘‘(2) CONTRACTORS.—In addition to any ity provided in this section is in addition to portation capacity, the sufficiency of com- other qualified general contractor, eligible any other authority of the Secretary to offer petition in the transportation system, the entities may serve as general contractors. loans under any other law. reliability of transportation services, and ‘‘(e) CONTRACT FOR MEASUREMENT AND ‘‘(h) EFFECTIVE PERIOD.—Subject to the the reasonableness of transportation rates; VERIFICATION, TRAINING, AND TECHNICAL AS- availability of funds and except as otherwise (3) the sufficiency of facility investment in SISTANCE.— provided in this section, the loans and other rural areas necessary for efficient and cost- ‘‘(1) IN GENERAL.—Not later than 90 days expenditures required to be made under this effective transportation; and after the date of enactment of this section, section shall be available until expended, (4) the accessibility to shippers in rural the Secretary— with the Secretary authorized to make new areas of Federal processes for the resolution ‘‘(A) shall establish a plan for measure- loans as loans are repaid. of grievances arising within various trans- ment and verification, training, and tech- ‘‘(i) REGULATIONS.— portation modes. nical assistance of the program; and ‘‘(1) IN GENERAL.—Except as otherwise pro- (c) REPORT TO CONGRESS.—Not later than 1 ‘‘(B) may enter into 1 or more contracts vided in this subsection, not later than 180 year after the date of enactment of this Act, with a qualified entity for the purposes of— days after the date of enactment of this sec- the Secretary and the Secretary of Transpor- ‘‘(i) providing measurement and tion, the Secretary shall promulgate such tation shall submit a report to Congress that verification activities; and regulations as are necessary to implement contains the results of the study required ‘‘(ii) developing a program to provide tech- this section. under subsection (a). nical assistance and training to the employ- ‘‘(2) PROCEDURE.—The promulgation of the (d) PERIODIC UPDATES.—The Secretary and ees of eligible entities to carry out this sec- regulations and administration of this sec- the Secretary of Transportation shall pub- tion. tion shall be made without regard to— lish triennially an updated version of the ‘‘(2) USE OF SUBCONTRACTORS AUTHORIZED.— ‘‘(A) the Statement of Policy of the Sec- study described in subsection (a). A qualified entity that enters into a contract retary of Agriculture effective July 24, 1971 SEC. 6205. AGRICULTURAL TRANSPORTATION under paragraph (1) may use subcontractors (36 Fed. Reg. 13804), relating to notices of POLICY. to assist the qualified entity in carrying out proposed rulemaking and public participa- Section 203 of the Agricultural Marketing the contract. tion in rulemaking; and Act of 1946 (7 U.S.C. 1622) is amended by

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00135 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4568 CONGRESSIONAL RECORD — SENATE June 25, 2012 striking subsection (j) and inserting the fol- ‘‘(i) in a rural area, as defined in section ‘‘(B) sharing in the reasonable overhead lowing: 343(a) of the Consolidated Farm and Rural costs of the practices, as determined by the ‘‘(j) POLICY DEVELOPMENT PROCEEDINGS.— Development Act (7 U.S.C. 1991(a)); and Secretary; or The Secretary shall participate on behalf of ‘‘(ii) in response to a veterinarian shortage ‘‘(C) establishing mobile veterinary facili- the interests of agriculture and rural Amer- situation; ties in which a portion of the facilities will ica in all policy development proceedings or ‘‘(B) a State, national, allied, or regional address education or extension needs. other proceedings of the Surface Transpor- veterinary organization or specialty board ‘‘(2) To promote recruitment (including for tation Board that may establish freight rail recognized by the American Veterinary Med- programs in secondary schools), placement, transportation policy affecting agriculture ical Association; and retention of veterinarians, veterinary and rural America.’’. ‘‘(C) a college or school of veterinary medi- technicians, students of veterinary medicine, TITLE VII—RESEARCH, EXTENSION, AND cine accredited by the American Veterinary and students of veterinary technology. RELATED MATTERS Medical Association; ‘‘(3) To allow veterinary students, veteri- Subtitle A—National Agricultural Research, ‘‘(D) a university research foundation or nary interns, externs, fellows, and residents, Extension, and Teaching Policy Act of 1977 veterinary medical foundation; and veterinary technician students to cover SEC. 7101. NATIONAL AGRICULTURAL RESEARCH, ‘‘(E) a department of veterinary science or expenses (other than the types of expenses EXTENSION, EDUCATION, AND ECO- department of comparative medicine accred- described in 1415A(c)(5)) to attend training NOMICS ADVISORY BOARD. ited by the Department of Education; programs in food safety or food animal medi- (a) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(F) a State agricultural experiment sta- cine. Section 1408(h) of the National Agricultural tion; and ‘‘(4) To establish or expand accredited vet- Research, Extension, and Teaching Policy ‘‘(G) a State, local, or tribal government erinary education programs (including fac- Act of 1977 (7 U.S.C. 3123(h)) is amended by agency. ulty recruitment and retention), veterinary striking ‘‘2012’’ and inserting ‘‘2017’’. ‘‘(2) VETERINARIAN SHORTAGE SITUATION.— residency and fellowship programs, or veteri- (b) DUTIES OF NATIONAL AGRICULTURAL RE- The term ‘veterinarian shortage situation’ nary internship and externship programs SEARCH, EXTENSION, EDUCATION, AND ECONOM- means a veterinarian shortage situation de- carried out in coordination with accredited ICS ADVISORY BOARD.—Section 1408(c) of the termined by the Secretary under section colleges of veterinary medicine. National Agricultural Research, Extension, 1415A(b). ‘‘(5) To assess veterinarian shortage situa- and Teaching Policy Act of 1977 (7 U.S.C. tions and the preparation of applications ‘‘(b) ESTABLISHMENT OF PROGRAM.— 3123(c)) is amended— submitted to the Secretary for designation ‘‘(1) COMPETITIVE GRANTS.—The Secretary (1) in paragraph (3), by striking ‘‘and’’ at shall carry out a program to make competi- as a veterinarian shortage situation under the end; tive grants to qualified entities that carry section 1415A(b). (2) in paragraph (4)(C), by striking the pe- out programs or activities described in para- ‘‘(6) To provide continuing education and riod at the end and inserting ‘‘; and’’; and graph (2) for the purpose of developing, im- extension, including veterinary telemedicine (3) by adding at the end the following: plementing, and sustaining veterinary serv- and other distance-based education, for vet- ‘‘(5) consult with industry groups on agri- ices. erinarians, veterinary technicians, and other cultural research, extension, education, and health professionals needed to strengthen ‘‘(2) ELIGIBILITY REQUIREMENTS.—To be eli- economics, and make recommendations to gible to receive a grant described in para- veterinary programs and enhance food safe- the Secretary based on that consultation.’’. graph (1), a qualified entity shall carry out ty. ‘‘(e) SPECIAL REQUIREMENTS FOR CERTAIN SEC. 7102. SPECIALTY CROP COMMITTEE. programs or activities that the Secretary de- Section 1408A of the National Agricultural GRANTS.— termines will— Research, Extension, and Teaching Policy ‘‘(1) TERMS OF SERVICE REQUIREMENTS.— ‘‘(A) substantially relieve veterinarian Act of 1977 (7 U.S.C. 3123a) is amended— ‘‘(A) IN GENERAL.—Grants provided under shortage situations; (1) in subsection (b)— this section for the purpose specified in sub- ‘‘(B) support or facilitate private veteri- (A) by striking ‘‘Individuals’’ and inserting section (d)(1) shall be subject to an agree- nary practices engaged in public health ac- the following: ment between the Secretary and the grant tivities; or ‘‘(1) ELIGIBILITY.—Individuals’’; recipient that includes a required term of ‘‘(C) support or facilitate the practices of (B) by striking ‘‘Members’’ and inserting service for the recipient, as established by veterinarians who are participating in or the following: the Secretary. have successfully completed a service re- ‘‘(2) SERVICE.—Members’’; and ‘‘(B) CONSIDERATIONS.—In establishing a quirement under section 1415A(a)(2). (C) by adding at the end the following: term of service under subparagraph (A), the ‘‘(c) AWARD PROCESSES AND PREF- ‘‘(3) DIVERSITY.—Membership of the spe- Secretary shall consider only— cialty crops committee shall reflect diver- ERENCES.— ‘‘(i) the amount of the grant awarded; and sity in the specialty crops represented.’’; ‘‘(1) APPLICATION, EVALUATION, AND INPUT ‘‘(ii) the specific purpose of the grant. PROCESSES.—In administering the grant pro- (2) in subsection (c), by adding at the end ‘‘(2) BREACH REMEDIES.— gram under this section, the Secretary the following: ‘‘(A) IN GENERAL.—An agreement under ‘‘(6) Analysis of alignment of specialty shall— paragraph (1) shall provide remedies for any crop committee recommendations with spe- ‘‘(A) use an appropriate application and breach of the agreement by the grant recipi- cialty crop research initiative grants award- evaluation process, as determined by the ent, including repayment or partial repay- ed under section 412(d) of the Agricultural Secretary; and ment of the grant funds, with interest. ‘‘(B) seek the input of interested persons. Research, Extension, and Education Reform ‘‘(B) WAIVER.—The Secretary may grant a Act of 1998 (7 U.S.C. 7632).’’; ‘‘(2) GRANT PREFERENCES.—In selecting re- wavier of the repayment obligation for (3) by redesignating subsections (d) and (e) cipients of grants to be used for any of the breach of contract if the Secretary deter- as subsections (e) and (f), respectively; purposes described in paragraphs (2) through mines that the grant recipient demonstrates (4) by inserting after subsection (c) the fol- (6) of subsection (d), the Secretary shall give extreme hardship or extreme need. a preference to qualified entities that pro- lowing: ‘‘(C) TREATMENT OF AMOUNTS RECOVERED.— ‘‘(d) CONSULTATION WITH SPECIALTY CROP vide documentation of coordination with Funds recovered under this paragraph shall— INDUSTRY.—In studying the scope and effec- other qualified entities, with respect to any ‘‘(i) be credited to the account available to tiveness of programs under subsection (a), such purpose. carry out this section; and the specialty crops committee shall consult ‘‘(3) ADDITIONAL PREFERENCES.—In award- ‘‘(ii) remain available until expended. on an ongoing basis with diverse sectors of ing grants under this section, the Secretary ‘‘(f) COST-SHARING REQUIREMENTS.— the specialty crop industry.’’; and may develop additional preferences by tak- ‘‘(1) RECIPIENT SHARE.—Subject to para- (5) in subsection (f) (as redesignated by ing into account the amount of funds avail- graph (2), to be eligible to receive a grant paragraph (3)), by striking ‘‘subsection (d)’’ able for grants and the purposes for which under this section, a qualified entity shall and inserting ‘‘subsection (e)’’. the grant funds will be used. provide matching non-Federal funds, either SEC. 7103. VETERINARY SERVICES GRANT PRO- ‘‘(4) APPLICABILITY OF OTHER PROVISIONS.— in cash or in-kind support, in an amount GRAM. Sections 1413B, 1462(a), 1469(a)(3), 1469(c), and equal to not less than 25 percent of the Fed- The National Agricultural Research, Ex- 1470 apply to the administration of the grant eral funds provided by the grant. tension, and Teaching Policy Act of 1977 is program under this section. ‘‘(2) WAIVER.—The Secretary may estab- amended by inserting after section 1415A (7 ‘‘(d) USE OF GRANTS TO RELIEVE VETERI- lish, by regulation, conditions under which U.S.C. 3151a) the following: NARIAN SHORTAGE SITUATIONS AND SUPPORT the cost-sharing requirements of paragraph ‘‘SEC. 1415B. VETERINARY SERVICES GRANT PRO- VETERINARY SERVICES.—A qualified entity (1) may be reduced or waived. GRAM. may use funds provided by grants under this ‘‘(g) PROHIBITION ON USE OF GRANT FUNDS ‘‘(a) DEFINITIONS.—In this section: section to relieve veterinarian shortage situ- FOR CONSTRUCTION.—Funds made available ‘‘(1) QUALIFIED ENTITY.—The term ‘quali- ations and support veterinary services for for grants under this section may not be fied entity’ means— the following purposes: used— ‘‘(A) a for-profit or nonprofit entity lo- ‘‘(1) To assist veterinarians with estab- ‘‘(1) to construct a new building or facility; cated in the United States that operates a lishing or expanding practices for the pur- or veterinary clinic providing veterinary serv- pose of— ‘‘(2) to acquire, expand, remodel, or alter ices— ‘‘(A) equipping veterinary offices; an existing building or facility, including

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00136 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4569 site grading and improvement and architect SEC. 7108. CONTINUING ANIMAL HEALTH AND (1) in subsection (a), by striking ‘‘2012’’ and fees. DISEASE RESEARCH PROGRAMS. inserting ‘‘2017’’; and ‘‘(h) REGULATIONS.—Not later than 1 year Section 1433 of the National Agricultural (2) by adding at the end the following: after the date of enactment of this section, Research, Extension, and Teaching Policy ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— the Secretary shall promulgate regulations Act of 1977 (7 U.S.C. 3195) is amended by There are authorized to be appropriated to to carry out this section. striking the section designation and heading carry out this section— ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— and all that follows through subsection (a) ‘‘(1) such sums as are necessary for fiscal There is authorized to be appropriated to the and inserting the following: year 2012; and Secretary to carry out this section $10,000,000 ‘‘SEC. 1433. APPROPRIATIONS FOR CONTINUING ‘‘(2) $1,000,000 for each of fiscal years 2013 for fiscal year 2013 and each fiscal year ANIMAL HEALTH AND DISEASE RE- through 2017.’’. thereafter, to remain available until ex- SEARCH PROGRAMS. (b) COMPETITIVE GRANTS.—Section pended.’’. ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.— 1473D(c)(1) of the National Agricultural Re- SEC. 7104. GRANTS AND FELLOWSHIPS FOR FOOD ‘‘(1) IN GENERAL.—There are authorized to search, Extension, and Teaching Policy Act AND AGRICULTURE SCIENCES EDU- be appropriated to support continuing ani- of 1977 (7 U.S.C. 3319d(c)(1)) is amended by CATION. mal health and disease research programs at striking ‘‘use such research funding, special Section 1417(m) of the National Agricul- eligible institutions such sums as are nec- or competitive grants, or other means, as the tural Research, Extension, and Teaching essary, but not to exceed $25,000,000 for each Secretary determines,’’ and inserting ‘‘make Policy Act of 1977 (7 U.S.C. 3152(m)) is of fiscal years 1991 through 2017. competitive grants’’. amended by striking ‘‘section $60,000,000’’ ‘‘(2) USE OF FUNDS.—Funds made available SEC. 7116. CAPACITY BUILDING GRANTS FOR and all that follows and inserting the fol- under this section shall be used— NLGCA INSTITUTIONS. lowing: ‘‘section— ‘‘(A) to meet the expenses of conducting Section 1473F(b) of the National Agricul- ‘‘(1) $60,000,000 for each of fiscal years 1990 animal health and disease research, pub- tural Research, Extension, and Teaching through 2012; and lishing and disseminating the results of such Policy Act of 1977 (7 U.S.C. 3319i(b)) is ‘‘(2) $40,000,000 for each of fiscal years 2013 research, and contributing to the retirement amended by striking ‘‘2012’’ and inserting through 2017.’’. of employees subject to the Act of March 4, ‘‘2017’’. SEC. 7105. AGRICULTURAL AND FOOD POLICY RE- 1940 (7 U.S.C. 331); SEC. 7117. AQUACULTURE ASSISTANCE PRO- SEARCH CENTERS. ‘‘(B) for administrative planning and direc- GRAMS. Section 1419A of the National Agricultural tion; and (a) COMPETITIVE GRANTS.—Section 1475(b) Research, Extension, and Teaching Policy ‘‘(C) to purchase equipment and supplies of the National Agricultural Research, Ex- Act of 1977 (7 U.S.C. 3155) is amended— necessary for conducting research described tension, and Teaching Policy Act of 1977 (7 (1) in the section heading, by inserting in subparagraph (A).’’. U.S.C. 3322(b)) is amended in the matter pre- ‘‘AGRICULTURAL AND FOOD’’ before ‘‘POL- SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL ceding paragraph (1) by inserting ‘‘competi- ICY’’; AND FOOD SCIENCES FACILITIES AT tive’’ before ‘‘grants’’. (2) in subsection (a), in the matter pre- 1890 LAND-GRANT COLLEGES, IN- (b) AUTHORIZATION OF APPROPRIATIONS.— ceding paragraph (1)— CLUDING TUSKEGEE UNIVERSITY. Section 1477 of the National Agricultural Re- (A) by striking ‘‘Secretary may’’ and in- Section 1447(b) of the National Agricul- search, Extension, and Teaching Policy Act serting ‘‘Secretary shall, acting through the tural Research, Extension, and Teaching of 1977 (7 U.S.C. 3324) is amended to read as Office of the Chief Economist,’’; and Policy Act of 1977 (7 U.S.C. 3222b(b)) is follows: (B) by inserting ‘‘with a history of pro- amended by striking ‘‘2012’’ and inserting viding unbiased, nonpartisan economic anal- ‘‘2017’’. ‘‘SEC. 1477. AUTHORIZATION OF APPROPRIA- TIONS. ysis to Congress’’ after ‘‘subsection (b)’’; SEC. 7110. GRANTS TO UPGRADE AGRICULTURAL ‘‘(a) IN GENERAL.—There are authorized to (3) in subsection (b), by striking ‘‘other re- AND FOOD SCIENCES FACILITIES search institutions’’ and all that follows AND EQUIPMENT AT INSULAR AREA be appropriated to carry out this subtitle— through ‘‘shall be eligible’’ and inserting LAND-GRANT INSTITUTIONS. ‘‘(1) $7,500,000 for each of fiscal years 1991 ‘‘other public research institutions and orga- Section 1447B(d) of the National Agricul- through 2012; and nizations shall be eligible’’; tural Research, Extension, and Teaching ‘‘(2) $5,000,000 for each of fiscal years 2013 (4) in subsection (c)— Policy Act of 1977 (7 U.S.C. 3222b–2(d)) is through 2017. (A) in the matter preceding paragraph (1), amended by striking ‘‘2012’’ and inserting ‘‘(b) PROHIBITION ON USE.—Funds made by inserting ‘‘, with preference given to pol- ‘‘2017’’. available under this section may not be used to acquire or construct a building.’’. icy research centers having extensive data- SEC. 7111. HISPANIC-SERVING INSTITUTIONS. bases, models, and demonstrated experience Section 1455(c) of the National Agricul- SEC. 7118. RANGELAND RESEARCH PROGRAMS. in providing Congress with agricultural mar- tural Research, Extension, and Teaching Section 1483(a) of the National Agricul- ket projections, rural development analysis, Policy Act of 1977 (7 U.S.C. 3241(c)) is amend- tural Research, Extension, and Teaching agricultural policy analysis, and baseline ed by striking ‘‘2012’’ and inserting ‘‘2017’’. Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking ‘‘subtitle’’ and all that follows projections at the farm, multiregional, na- SEC. 7112. COMPETITIVE GRANTS FOR INTER- tional, and international levels,’’ after ‘‘with NATIONAL AGRICULTURAL SCIENCE and inserting the following: ‘‘subtitle— this section’’; and AND EDUCATION PROGRAMS. ‘‘(1) $10,000,000 for each of fiscal years 1991 (B) in paragraph (2) by inserting ‘‘applied’’ Section 1459A of the National Agricultural through 2012; and after ‘‘theoretical’’; and Research, Extension, and Teaching Policy ‘‘(2) $2,000,000 for each of fiscal years 2013 (5) by striking subsection (d) and inserting Act of 1977 (7 U.S.C. 3292b) is amended by through 2017.’’. the following: ‘‘ striking subsection (c) and inserting the fol- SEC. 7119. SPECIAL AUTHORIZATION FOR BIO- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— lowing: SECURITY PLANNING AND RE- SPONSE. There is authorized to be appropriated to ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— carry out this section $5,000,000 for fiscal There are authorized to be appropriated to Section 1484(a) of the National Agricul- year 2012 and each fiscal year thereafter.’’. carry out this section— tural Research, Extension, and Teaching SEC. 7106. EDUCATION GRANTS TO ALASKA NA- ‘‘(1) such sums as are necessary for each of Policy Act of 1977 (7 U.S.C. 3351(a)) is amend- TIVE SERVING INSTITUTIONS AND fiscal years 1999 through 2012; and ed by striking ‘‘response such sums as are NATIVE HAWAIIAN SERVING INSTI- ‘‘(2) $5,000,000 for each of fiscal years 2013 necessary’’ and all that follows and inserting TUTIONS. through 2017.’’. the following: ‘‘response— Section 1419B of the National Agricultural ‘‘(1) such sums as are necessary for each of SEC. 7113. UNIVERSITY RESEARCH. Research, Extension, and Teaching Policy fiscal years 2002 through 2012; and Section 1463 of the National Agricultural Act of 1977 (7 U.S.C. 3156) is amended— ‘‘(2) $20,000,000 for each of fiscal years 2013 Research, Extension, and Teaching Policy (1) in subsection (a)— through 2017.’’. (A) in paragraph (1), by striking ‘‘(or Act of 1977 (7 U.S.C. 3311) is amended in each of subsections (a) and (b) by striking ‘‘2012’’ SEC. 7120. DISTANCE EDUCATION AND RESIDENT grants without regard to any requirement INSTRUCTION GRANTS PROGRAM for competition)’’; and each place it appears and inserting ‘‘2017’’. FOR INSULAR AREA INSTITUTIONS (B) in paragraph (3), by striking ‘‘2012’’ and SEC. 7114. EXTENSION SERVICE. OF HIGHER EDUCATION. inserting ‘‘2017’’; and Section 1464 of the National Agricultural (a) DISTANCE EDUCATION GRANTS FOR INSU- (2) in subsection (b)(1), by striking ‘‘(or Research, Extension, and Teaching Policy LAR AREAS.— grants without regard to any requirement Act of 1977 (7 U.S.C. 3312) is amended by (1) COMPETITIVE GRANTS.—Section 1490(a) of for competition)’’; and striking ‘‘2012’’ and inserting ‘‘2017’’. the National Agricultural Research, Exten- (3) in paragraph (3), by striking ‘‘2012’’ and SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE sion, and Teaching Policy Act of 1977 (7 inserting ‘‘2017’’. CROPS. U.S.C. 3362(a)) is amended by striking ‘‘or SEC. 7107. NUTRITION EDUCATION PROGRAM. (a) AUTHORIZATION OF APPROPRIATIONS AND noncompetitive’’. Section 1425(f) of the National Agricultural TERMINATION.—Section 1473D of the National (2) AUTHORIZATION OF APPROPRIATIONS.— Research, Extension, and Teaching Policy Agricultural Research, Extension, and Section 1490(f) of the National Agricultural Act of 1977 (7 U.S.C. 3175(f)) is amended by Teaching Policy Act of 1977 (7 U.S.C. 3319d) is Research, Extension, and Teaching Policy striking ‘‘2012’’ and inserting ‘‘2017’’. amended— Act of 1977 (7 U.S.C. 3362(f)) is amended by

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00137 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4570 CONGRESSIONAL RECORD — SENATE June 25, 2012 striking ‘‘section’’ and all that follows and (2) in subsection (b)(2)— in reduced application management strate- inserting the following: ‘‘section— (A) by striking the first sentence and in- gies; and ‘‘(1) such sums as are necessary for each of serting the following: ‘‘(iii) improving nitrogen fixation to re- fiscal years 2002 through 2012; and ‘‘(A) IN GENERAL.—To facilitate the mak- duce the carbon and energy footprint of agri- ‘‘(2) $2,000,000 for each of fiscal years 2013 ing of research and extension grants under culture; through 2017.’’. subsection (d), the Secretary may appoint a ‘‘(D) optimizing pulse cropping systems to (b) RESIDENT INSTRUCTION GRANTS FOR IN- task force to make recommendations to the reduce water usage; and SULAR AREAS.—Section 1491(c) of the Na- Secretary.’’; and ‘‘(E) education and technical service, such tional Agricultural Research, Extension, and (B) in the second sentence, by striking as— Teaching Policy Act of 1977 (7 U.S.C. 3363(c)) ‘‘The Secretary may not incur costs in ex- ‘‘(i) providing technical expertise to help is amended by striking ‘‘such sums as are cess of $1,000 for any fiscal year in connec- food companies include nutrient-dense pulse necessary’’ and all that follows and inserting tion with each’’ and inserting the following: crops in innovative and healthy foods; and the following: ‘‘to carry out this section— ‘‘(B) COSTS.—The Secretary may not incur ‘‘(ii) establishing an educational program ‘‘(1) such sums as are necessary for each of costs in excess of $1,000 for any fiscal year in to encourage the consumption and produc- fiscal years 2002 through 2012; and connection with a’’; tion of pulse crops in the United States and ‘‘(2) $2,000,000 for each of fiscal years 2013 (3) in subsection (e)— other countries. through 2017.’’. (A) by striking paragraphs (1) through (5), ‘‘(3) ELIGIBLE ENTITIES.—The Secretary Subtitle B—Food, Agriculture, Conservation, (7), (8), (11) through (39), (41) through (43), may carry out the Initiative through— and Trade Act of 1990 (47), (48), (51), and (52); ‘‘(A) Federal agencies, including the Agri- (B) by redesignating paragraphs (6), (9), cultural Research Service and the National SEC. 7201. BEST UTILIZATION OF BIOLOGICAL AP- Institute of Food and Agriculture; PLICATIONS. (10), (40), (44), (45), (46), (49), and (50) as para- ‘‘(B) National Laboratories; Section 1624 of the Food, Agriculture, Con- graphs (1), (2), (3), (4), (5), (6), (7), (8), and (9), ‘‘(C) institutions of higher education; servation, and Trade Act of 1990 (7 U.S.C. respectively; and ‘‘(D) research institutions or organiza- 5814) is amended— (C) by adding at the end the following: tions; (1) by striking ‘‘$40,000,000 for each fiscal ‘‘(10) CORN, SOYBEAN MEAL, CEREAL GRAINS, ‘‘(E) private organizations or corporations; year’’; and AND GRAIN BYPRODUCTS RESEARCH AND EXTEN- SION.—Research and extension grants may be ‘‘(F) State agricultural experiment sta- (2) by inserting ‘‘$40,000,000 for each of fis- tions; cal years 2012 through 2017’’ after ‘‘chapter’’. made under this section for the purpose of carrying out or enhancing research to im- ‘‘(G) individuals; or SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS. ‘‘(H) groups consisting of 2 or more entities Section 1627 of the Food, Agriculture, Con- prove the digestibility, nutritional value, and efficiency of use of corn, soybean meal, or individuals described in subparagraphs (A) servation, and Trade Act of 1990 (7 U.S.C. through (G). 5821) is amended by striking subsection (d) cereal grains, and grain byproducts for the poultry and food animal production indus- ‘‘(4) RESEARCH PROJECT GRANTS.— and inserting the following: ‘‘(A) IN GENERAL.—In carrying out this sub- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— tries.’’; (4) by striking subsections (f), (g), and (i); section, the Secretary shall award grants on There is authorized to be appropriated to a competitive basis. (5) by inserting after subsection (e) the fol- carry out this section through the National ‘‘(B) IN GENERAL.—The Secretary shall— lowing: Institute of Food and Agriculture $20,000,000 ‘‘(i) seek and accept proposals for grants; for each of fiscal years 2012 through 2017.’’. ‘‘(f) PULSE HEALTH INITIATIVE.— ‘‘(ii) determine the relevance and merit of SEC. 7203. SUSTAINABLE AGRICULTURE TECH- ‘‘(1) DEFINITIONS.—In this subsection; proposals through a system of peer review, in NOLOGY DEVELOPMENT AND ‘‘(A) INITIATIVE.—The term ‘Initiative’ consultation with the pulse crop industry; TRANSFER PROGRAM. means the pulse health initiative established and Section 1628 of the Food, Agriculture, Con- by paragraph (2). ‘‘(iii) award grants on the basis of merit, servation, and Trade Act of 1990 (7 U.S.C. ‘‘(B) PULSE.—The term ‘pulse’ means dry quality, and relevance. 5831) is amended by striking subsection (f) beans, dry peas, lentils, and chickpeas or ‘‘(C) PRIORITIES.—In making grants under and inserting the following: garbanzo beans. this subsection, the Secretary shall provide a ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(2) ESTABLISHMENT.—Notwithstanding higher priority to projects that— There are authorized to be appropriated to any other provision of law, during the period ‘‘(i) are multistate, multiinstitutional, and carry out this section such sums as are nec- beginning on the date of enactment of the multidisciplinary; and essary for each of fiscal years 2012 through Agriculture Reform, Food, and Jobs Act of ‘‘(ii) include explicit mechanisms to com- 2017.’’. 2012 and ending on September 30, 2017, the municate results to the pulse crop industry SEC. 7204. NATIONAL TRAINING PROGRAM. Secretary shall carry out a pulse crop health and the public. Section 1629 of the Food, Agriculture, Con- and extension initiative to address the crit- ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— servation, and Trade Act of 1990 (7 U.S.C. ical needs of the pulse crop industry by de- There is authorized to be appropriated to 5832) is amended by striking subsection (i) veloping and disseminating science-based carry out this subsection $25,000,000 for each and inserting the following: tools and information, including— of fiscal years 2013 through 2017. ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) research in health and nutrition, such ‘‘(g) TRAINING COORDINATION FOR FOOD AND There is authorized to be appropriated to as— AGRICULTURE PROTECTION.— carry out the National Training Program ‘‘(i) identifying global dietary patterns of ‘‘(1) IN GENERAL.—The Secretary shall $20,000,000 for each of fiscal years 2012 pulse crops in relation to population health; make grants and enter into contracts or co- through 2017.’’. ‘‘(ii) researching pulse crop diets and the operative agreements with eligible entities SEC. 7205. NATIONAL GENETICS RESOURCES ability of the diets to reduce obesity and as- described in paragraph (2) for the purposes of PROGRAM. sociated chronic disease (including cardio- establishing a Comprehensive Food Safety Section 1635(b) of the Food, Agriculture, vascular disease, type 2 diabetes, and can- Training Network. Conservation, and Trade Act of 1990 (7 U.S.C. cer); and ‘‘(2) ELIGIBILITY.— 5844(b)) is amended— ‘‘(iii) identifying the underlying mecha- ‘‘(A) IN GENERAL.—For purposes of this sub- (1) by striking ‘‘such funds as may be nec- nisms of the health benefits of pulse crop section, an eligible entity is a multiinstitu- essary’’; and consumption (including disease biomarkers, tional consortium that includes— (2) by striking ‘‘subtitle’’ and all that fol- bioactive components, and relevant plant ge- ‘‘(i) a nonprofit institution that provides lows and inserting the following: ‘‘subtitle— netic components to enhance the health pro- administering food protection training; and ‘‘(1) such sums as are necessary for each of moting value of pulse crops); ‘‘(ii) 1 or more training centers in institu- fiscal years 1991 through 2012; and ‘‘(B) research in functionality, such as— tions of higher education that have dem- ‘‘(2) $1,000,000 for each of fiscal years 2013 ‘‘(i) improving the functional properties of onstrated expertise in developing and deliv- through 2017.’’. pulse crops and pulse fractions; ering community-based training in food and SEC. 7206. NATIONAL AGRICULTURAL WEATHER ‘‘(ii) developing new and innovative tech- agricultural safety and defense. INFORMATION SYSTEM. nologies to improve pulse crops as an ingre- ‘‘(B) REQUIREMENTS.—To ensure that co- Section 1641(c) of the Food, Agriculture, dient in food products; and ordination and administration is provided Conservation, and Trade Act of 1990 (7 U.S.C. ‘‘(iii) developing nutrient-dense food prod- across all the disciplines and provide com- 5855(c)) is amended by inserting ‘‘and uct solutions to ameliorate chronic disease prehensive food protection training, the Sec- $1,000,000 for each of fiscal years 2013 through and enhance food security worldwide; retary may only consider an entire consor- 2017’’ before the period at the end. ‘‘(C) research in sustainability to enhance tium collectively rather than on an institu- SEC. 7207. HIGH-PRIORITY RESEARCH AND EX- global food security, such as— tion-by-institution basis. TENSION INITIATIVES. ‘‘(i) plant breeding, genetics and genomics ‘‘(C) MEMBERSHIP.—An eligible entity may Section 1672 of the Food, Agriculture, Con- to improve productivity, nutrient density, alter the consortium membership to meet servation, and Trade Act of 1990 (7 U.S.C. and phytonutrient content for a growing specific training expertise needs. 5925) is amended— world population; ‘‘(3) DUTIES OF ELIGIBLE ENTITY.—As a con- (1) in the first sentence of subsection (a), ‘‘(ii) pest and disease management, includ- dition of the receipt of assistance under this by striking ‘‘subsections (e) through (i) of’’; ing resistance to pests and diseases resulting subsection, an eligible entity, in cooperation

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with the Secretary, shall establish and main- as are necessary to carry out this section.’’ ‘‘(2) RELEVANCE AND MERIT REVIEW OF RE- tain the network for an internationally inte- and inserting the following: ‘‘to carry out SEARCH, EXTENSION, AND EDUCATION GRANTS.— grated training system to enhance protec- this section— ’’; tion of the United States food supply, includ- ‘‘(1) such sums as are necessary for fiscal (2) in subparagraph (A)— ing, at a minimum— year 2012; and (A) by inserting ‘‘relevance and’’ before ‘‘(A) developing curricula and a training ‘‘(2) $5,000,000 for each of fiscal years 2013 ‘‘merit’’; and network to provide basic, technical, manage- through 2017.’’. (B) by striking ‘‘extension or education’’ ment, and leadership training to regulatory SEC. 7210. REGIONAL CENTERS OF EXCELLENCE. and inserting, ‘‘research, extension, or edu- and public health officials, producers, proc- Subtitle H of the Food, Agriculture, Con- cation’’; and essors, and other agrifood businesses; servation, and Trade Act of 1990 is amended (3) in subparagraph (B) by inserting ‘‘on a ‘‘(B) serving as the hub for the administra- by inserting after section 1672D (7 U.S.C. continuous basis’’ after ‘‘procedures’’. tion of an open training network; 5925) the following: SEC. 7302. INTEGRATED RESEARCH, EDUCATION, ‘‘(C) implementing standards to ensure the ‘‘SEC. 1673. REGIONAL CENTERS OF EXCELLENCE. AND EXTENSION COMPETITIVE GRANTS PROGRAM. delivery of quality training through a na- ‘‘(a) ESTABLISHMENT.—The Secretary may Section 406(f) of the Agricultural Research, tional curricula; prioritize regional centers of excellence es- Extension, and Education Reform Act of 1998 ‘‘(D) building and overseeing a nationally tablished for specific agricultural commod- (7 U.S.C. 7626(f)) is amended by striking recognized instructor cadre to ensure the ities for the receipt of funding. ‘‘2012’’ and inserting ‘‘2017’’. availability of highly qualified instructors; ‘‘(b) COMPOSITION.—A regional center of ex- ‘‘(E) reviewing training proposed through cellence shall be composed of 1 or more col- SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, the National Institute of Food and Agri- leges and universities (including land-grant culture and other relevant Federal agencies AND BARLEY CAUSED BY FUSARIUM institutions, schools of forestry, schools of GRAMINEARUM OR BY TILLETIA that report to the Secretary on the quality veterinary medicine, or NLGCA Institutions INDICA. and content of proposed and existing courses; (as defined in section 1404 of the National Section 408(e) of the Agricultural Re- ‘‘(F) assisting Federal agencies in the im- Agricultural Research, Extension, and search, Extension, and Education Reform plementation of food protection training re- Teaching Policy Act of 1977 (7 U.S.C. 3103))) Act of 1998 (7 U.S.C. 7628(e)) is amended by quirements including requirements con- that provide financial support to the re- striking ‘‘such sums as may be necessary for tained in the Agriculture Reform, Food, and gional center of excellence. each of fiscal years 1999 through 2012’’ and in- Jobs Act of 2012, the FDA Food Safety Mod- ‘‘(c) CRITERIA FOR REGIONAL CENTERS OF serting ‘‘$10,000,000 for each of fiscal years ernization Act (Public Law 111–353; 124 Stat. EXCELLENCE.—The criteria for consideration 2013 through 2017’’. 3885), and amendments made by those Acts; to be a regional center of excellence shall in- SEC. 7304. GRANTS FOR YOUTH ORGANIZATIONS. and clude efforts— Section 410(d) of the Agricultural Re- ‘‘(G) performing evaluation and outcome- ‘‘(1) to ensure coordination and cost-effec- search, Extension, and Education Reform based studies to provide to the Secretary tiveness by reducing unnecessarily duplica- Act of 1998 (7 U.S.C. 7630(d)) is amended by feedback on the effectiveness and impact of tive efforts regarding research, teaching, and striking ‘‘section such sums as are nec- training and metrics on jurisdictions and extension; essary’’ and all that follows and inserting sectors within the food safety system. ‘‘(2) to leverage available resources by the following: ‘‘section— ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— using public/private partnerships among ag- ‘‘(1) such sums as are necessary for each of There is authorized to be appropriated to ricultural industry groups, institutions of fiscal years 2008 through 2012; and carry out this section $20,000,000 for each of higher education, and the Federal Govern- ‘‘(2) $3,000,000 for each of fiscal years 2013 fiscal years 2013 through 2017, to remain ment; through 2017.’’. available until expended.’’; ‘‘(3) to implement teaching initiatives to SEC. 7305. SPECIALTY CROP RESEARCH INITIA- (6) in subsection (h), by striking ‘‘2012’’ increase awareness and effectively dissemi- TIVE. each place it appears and inserting ‘‘2017’’; nate solutions to target audiences through Section 412 of the Agricultural Research, (7) by redesignating subsection (j) as sub- extension activities; Extension, and Education Reform Act of 1998 section (i); and ‘‘(4) to increase the economic returns to (7 U.S.C. 7632) is amended— (8) in subsection (i) (as so redesignated), by rural communities by identifying, attract- (1) in subsection (b)(3), by inserting ‘‘han- striking ‘‘2012’’ and inserting ‘‘2017’’. ing, and directing funds to high-priority ag- dling and processing,’’ after ‘‘production effi- SEC. 7208. ORGANIC AGRICULTURE RESEARCH ricultural issues; and ciency,’’; AND EXTENSION INITIATIVE. ‘‘(5) to improve teaching capacity and in- (2) in subsection (e)— Section 1672B of the Food, Agriculture, frastructure at colleges and universities (in- (A) in paragraph (1)— Conservation, and Trade Act of 1990 (7 U.S.C. cluding land-grant institutions, schools of (i) in subparagraph (B), by striking ‘‘and’’ 5925b) is amended— forestry, and schools of veterinary medicine, at the end; (1) in subsection (a)— and NLGCA Institutions). (ii) in subparagraph (C), by striking the pe- (A) in the matter preceding paragraph (1), ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— riod at the end and inserting ‘‘; and’’; and by inserting ‘‘, education,’’ after ‘‘support re- There is authorized to be appropriated to (iii) by inserting after subparagraph (C) the search’’; carry out this section $10,000,000 for each of following: (B) in paragraph (1), by inserting ‘‘and im- fiscal years 2013 through 2017.’’. ‘‘(D) consult with the specialty crops com- provement’’ after ‘‘development’’; SEC. 7211. ASSISTIVE TECHNOLOGY PROGRAM mittee authorized under section 1408A of the (C) in paragraph (2), by striking ‘‘to pro- FOR FARMERS WITH DISABILITIES. National Agricultural Research, Extension, ducers and processors who use organic meth- Section 1680(c)(1) of the Food, Agriculture, and Teaching Policy Act of 1977 (7 U.S.C. ods’’ and inserting ‘‘of organic agricultural Conservation, and Trade Act of 1990 (7 U.S.C. 3123a) during the peer and merit review proc- production and methods to producers, proc- 5933(c)(1)) is amended— ess.’’; and essors, and rural communities’’; (1) by striking ‘‘is’’ and inserting ‘‘are’’; (B) in paragraph (3), by striking ‘‘non-Fed- (D) in paragraph (5), by inserting ‘‘and re- and eral’’ and all that follows through the end of searching solutions to’’ after ‘‘identifying’’; (2) by striking ‘‘section’’ and all that fol- the paragraph and inserting ‘‘other sources and lows and inserting the following: ‘‘section— in an amount that is at least equal to the (E) in paragraph (6), by striking ‘‘and mar- ‘‘(A) $6,000,000 for each of fiscal years 1999 amount provided by a grant received under keting’’ and inserting ‘‘, marketing, and food through 2012; and this section.’’; and safety’’; ‘‘(B) $5,000,000 for each of fiscal years 2013 (3) in subsection (h)— (2) by striking subsection (e); through 2017.’’. (A) in paragraph (1)— (3) by redesignating subsection (f) as sub- SEC. 7212. NATIONAL RURAL INFORMATION CEN- (i) by striking ‘‘(1) IN GENERAL.—Of the section (e); and TER CLEARINGHOUSE. funds’’ and inserting the following: (4) in subsection (e) (as so redesignated)— Section 2381(e) of the Food, Agriculture, ‘‘(1) MANDATORY FUNDING.— (A) in paragraph (1)— Conservation, and Trade Act of 1990 (7 U.S.C. ‘‘(A) IN GENERAL.—Of the funds’’; and (i) in subparagraph (A), by striking ‘‘and’’ 3125b(e)) is amended by striking ‘‘2012’’ and (ii) by adding at the end the following: at the end; inserting ‘‘2017’’. ‘‘(B) SUBSEQUENT FUNDING.—Of the funds of (ii) in subparagraph (B), by striking the pe- Subtitle C—Agricultural Research, Extension, the Commodity Credit Corporation, the Sec- riod at the end and inserting ‘‘; and’’; and and Education Reform Act of 1998 retary shall make available to carry out this (iii) by adding at the end the following: section— ‘‘(C) $16,000,000 for each of fiscal years 2013 SEC. 7301. RELEVANCE AND MERIT OF AGRICUL- TURAL RESEARCH, EXTENSION, AND ‘‘(i) $25,000,000 for fiscal year 2013; through 2017.’’; and EDUCATION FUNDED BY THE DE- ‘‘(ii) $30,000,000 for each of fiscal years 2014 (B) in paragraph (2), by striking ‘‘2012’’ and PARTMENT. and 2015; inserting ‘‘2017’’. Section 103(a)(2) of the Agricultural Re- ‘‘(iii) $65,000,000 for fiscal year 2016; and SEC. 7209. FARM BUSINESS MANAGEMENT. search, Extension, and Education Reform ‘‘(iv) $50,000,000 for fiscal year 2017 and each Section 1672D(d) of the Food, Agriculture, Act of 1998 (7 U.S.C. 7613(a)(2)) is amended— fiscal year thereafter.’’; and Conservation, and Trade Act of 1990 (7 U.S.C. (1) by striking the paragraph designation (B) in paragraph (2), by striking ‘‘2012’’ and 5925f(d)) is amended by striking ‘‘such sums and heading and inserting the following: inserting ‘‘2017’’.

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SEC. 7306. FOOD ANIMAL RESIDUE AVOIDANCE ‘‘(2) $2,000,000 for each of fiscal years 2013 (d) RESEARCH GRANTS.— DATABASE PROGRAM. through 2017.’’. (1) AUTHORIZATION OF APPROPRIATIONS.— Section 604(e) of the Agricultural Re- SEC. 7402. EQUITY IN EDUCATIONAL LAND- Section 536(c) of the Equity in Educational search, Extension, and Education Reform GRANT STATUS ACT OF 1994. Land-Grant Status Act of 1994 (7 U.S.C. 301 Act of 1998 (7 U.S.C. 7642(e)) is amended by (a) DEFINITION OF 1994 INSTITUTIONS.—Sec- note; Public Law 103–382) is amended in the striking ‘‘2012’’ and inserting ‘‘2017’’. tion 532 of the Equity in Educational Land- first sentence by striking ‘‘2012’’ and insert- SEC. 7307. OFFICE OF PEST MANAGEMENT POL- Grant Status Act of 1994 (7 U.S.C. 301 note; ing ‘‘2017’’. ICY. Public Law 103–382) is amended to read as (2) RESEARCH GRANT REQUIREMENTS.—Sec- Section 614(f) of the Agricultural Research, follows: tion 536(b) of the Equity in Educational Extension, and Education Reform Act of 1998 Land-Grant Status Act of 1994 (7 U.S.C. 301 (7 U.S.C. 7653(f)) is amended— ‘‘SEC. 532. DEFINITION OF 1994 INSTITUTIONS. ‘‘In this part, the term ‘1994 Institutions’ note; Public Law 103–382) is amended by (1) by striking ‘‘such sums as are nec- striking ‘‘with at least 1 other land-grant essary’’; and means any 1 of the following: ‘‘(1) Aaniiih Nakoda College. college or university’’ and all that follows (2) by striking ‘‘section’’ and all that fol- and inserting the following: ‘‘with— lows and inserting the following: ‘‘section— ‘‘(2) Bay Mills Community College. ‘‘(3) Blackfeet Community College. ‘‘(1) the Agricultural Research Service of ‘‘(1) such sums as are necessary for each of the Department of Agriculture; or fiscal years 1999 through 2012; and ‘‘(4) Cankdeska Cikana Community Col- lege. ‘‘(2) at least 1— ‘‘(2) $3,000,000 for each of fiscal years 2013 ‘‘(A) other land-grant college or university through 2017.’’. ‘‘(5) Chief Dull Knife Memorial College. ‘‘(6) College of Menominee Nation. (exclusive of another 1994 Institution); SEC. 7308. AUTHORIZATION OF REGIONAL INTE- ‘‘(7) College of the Muscogee Nation. ‘‘(B) non-land-grant college of agriculture GRATED PEST MANAGEMENT CEN- (as defined in section 1404 of the National TERS. ‘‘(8) Comanche Nation College. Agricultural Research, Extension, and Subtitle B of title VI of the Agricultural ‘‘(9) D-Q University. Teaching Policy Act of 1977 (7 U.S.C. 3103)); Research, Extension, and Education Reform ‘‘(10) Dine College. or Act of 1998 (7 U.S.C. 7651 et seq.) is amended ‘‘(11) Fond du Lac Tribal and Community ‘‘(C) cooperating forestry school (as de- by adding at the end the following: College. fined in that section).’’. ‘‘SEC. 621. AUTHORIZATION OF REGIONAL INTE- ‘‘(12) Fort Berthold Community College. (e) EFFECTIVE DATE.—The amendments GRATED PEST MANAGEMENT CEN- ‘‘(13) Fort Peck Community College. TERS. ‘‘(14) Haskell Indian Nations University. made by subsections (a), (b), and (d)(2) take ‘‘(a) IN GENERAL.—There are established 4 ‘‘(15) Ilisagvik College. effect on October 1, 2012. regional integrated pest management cen- ‘‘(16) Institute of American Indian and SEC. 7403. RESEARCH FACILITIES ACT. ters (referred to in this section as the ‘Cen- Alaska Native Culture and Arts Develop- Section 6(a) of the Research Facilities Act ters’), which shall be located at such specific ment. (7 U.S.C. 390d(a)) is amended by striking locations in the north central, northeastern, ‘‘(17) Keweenaw Bay Ojibwa Community ‘‘2012’’ and inserting ‘‘2017’’. southern, and western regions of the United College. SEC. 7404. COMPETITIVE, SPECIAL, AND FACILI- States as the Secretary shall specify. ‘‘(18) Lac Courte Oreilles Ojibwa Commu- TIES RESEARCH GRANT ACT. ‘‘(b) PURPOSES.—The purposes of the Cen- nity College. Section 2 of the Competitive, Special, and ters shall be— ‘‘(19) Leech Lake Tribal College. Facilities Research Grant Act (7 U.S.C. 450i) ‘‘(1) to strengthen the connection of the ‘‘(20) Little Big Horn College. is amended— Department with production agriculture, re- ‘‘(21) Little Priest Tribal College. (1) in subsection (b)(11)(A), in the matter search, and extension programs, and agricul- ‘‘(22) Navajo Technical College. preceding clause (i), by striking ‘‘2012’’ and tural stakeholders throughout the United ‘‘(23) Nebraska Indian Community College. inserting ‘‘2017’’; and States; ‘‘(24) Northwest Indian College. (2) by adding at the end the following: ‘‘(2) to increase the effectiveness of pro- ‘‘(25) Oglala Lakota College. ‘‘(l) STREAMLINING GRANT APPLICATION viding pest management solutions for the ‘‘(26) Saginaw Chippewa Tribal College. PROCESS.—Not later than 1 year after the private and public sectors; ‘‘(27) Salish Kootenai College. date of enactment of this subsection, the ‘‘(3) to quickly respond to information ‘‘(28) Sinte Gleska University. Secretary shall submit to Congress a report needs of the public and private sectors; and ‘‘(29) Sisseton Wahpeton College. that includes— ‘‘(4) to improve communication among the ‘‘(30) Sitting Bull College. ‘‘(1) an analysis of barriers that exist in relevant stakeholders. ‘‘(31) Southwestern Indian Polytechnic In- the competitive grants process administered ‘‘(c) DUTIES.—In meeting the purposes de- stitute. by the National Institute of Food and Agri- scribed in subsection (b) and otherwise car- ‘‘(32) Stone Child College. culture that prevent eligible institutions and rying out this section, the Centers shall— ‘‘(33) Tohono O’odham Community College. organizations with limited institutional ca- ‘‘(1) develop regional strategies to address ‘‘(34) Turtle Mountain Community College. pacity from successfully applying and com- pest management needs; ‘‘(35) United Tribes Technical College. peting for competitive grants; and ‘‘(2) assist the Department and partner in- ‘‘(36) White Earth Tribal and Community ‘‘(2) specific recommendations for future stitutions of the Department in identifying, College.’’. steps that the Department can take to prioritizing, and coordinating a national pest (b) ENDOWMENT FOR 1994 INSTITUTIONS.— streamline the competitive grants applica- management research, extension, and edu- (1) IN GENERAL.—Section 533 of the Equity tion process so as to remove the barriers and cation program implemented on a regional in Educational Land-Grant Status Act of increase the success rates of applicants de- basis; 1994 (7 U.S.C. 301 note; Public Law 103–382) is scribed in paragraph (1).’’. ‘‘(3) establish a national pest management amended— SEC. 7405. ENHANCED USE LEASE AUTHORITY communication network that includes— (A) in subsection (a)(2)(A)(ii), by striking PILOT PROGRAM UNDER DEPART- ‘‘(A) the agencies of the Department and ‘‘of such Act as added by section 534(b)(1) of MENT OF AGRICULTURE REORGA- other government agencies; this part’’ and inserting ‘‘of that Act (7 NIZATION ACT OF 1994. ‘‘(B) scientists at institutions of higher U.S.C. 343(b)(3)) and for programs for chil- Section 308(b)(6) of the Department of Ag- education; and dren, youth, and families at risk and for Fed- riculture Reorganization Act of 1994 (7 U.S.C. ‘‘(C) stakeholders focusing on pest manage- erally recognized tribes implemented under 3125a note; Public Law 103–354) is amended by ment issues; section 3(d) of that Act (7 U.S.C. 343(d))’’; and striking subparagraph (A) and inserting the ‘‘(4) serve as regional hubs responsible for (B) in subsection (b), in the first sentence following: ensuring efficient access to pest manage- by striking ‘‘2012’’ and inserting ‘‘2017’’. ‘‘(A) on September 30, 2017; or’’. ment expertise and data available through (2) CONFORMING AMENDMENT.—Section 3(d) SEC. 7406. RENEWABLE RESOURCES EXTENSION institutions of higher education; and of the Smith-Lever Act (7 U.S.C. 343(d)) is ACT OF 1978. ‘‘(5) on behalf of the Department, manage amended in the second sentence by inserting (a) AUTHORIZATION OF APPROPRIATIONS.— grants that can be most effectively and effi- ‘‘and, in the case of programs for children, Section 6 of the Renewable Resources Exten- ciently delivered at the regional level, as de- youth, and families at risk and for Federally sion Act of 1978 (16 U.S.C. 1675) is amended in termined by the Secretary.’’. recognized tribes, the 1994 Institutions (as the first sentence by striking ‘‘2012’’ and in- Subtitle D—Other Laws defined in section 532 of the Equity in Edu- serting ‘‘2017’’. SEC. 7401. CRITICAL AGRICULTURAL MATERIALS cational Land-Grant Status Act of 1994 (7 (b) TERMINATION DATE.—Section 8 of the ACT. U.S.C. 301 note; Public Law 103–382)),’’ before Renewable Resources Extension Act of 1978 Section 16(a) of the Critical Agricultural ‘‘may compete for’’. (16 U.S.C. 1671 note; Public Law 95–306) is Materials Act (7 U.S.C. 178n(a)) is amended— (c) INSTITUTIONAL CAPACITY BUILDING amended by striking ‘‘2012’’ and inserting (1) by striking ‘‘such sums as are nec- GRANTS.—Section 535 of the Equity in Edu- ‘‘2017’’. essary’’; and cational Land-Grant Status Act of 1994 (7 SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980. (2) by striking ‘‘Act’’ and all that follows U.S.C. 301 note; Public Law 103–382) is Section 10 of the National Aquaculture Act and inserting the following: ‘‘Act— amended by striking ‘‘2012’’ each place it ap- of 1980 (16 U.S.C. 2809) is amended by striking ‘‘(1) such sums as are necessary for each of pears in subsections (b)(1) and (c) and insert- ‘‘2012’’ each place it appears and inserting fiscal years 1991 through 2012; and ing ‘‘2017’’. ‘‘2017’’.

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SEC. 7408. BEGINNING FARMER AND RANCHER ing the following: ‘‘are authorized to be ap- ‘‘(2) INFORMATION DESCRIBED.—The infor- DEVELOPMENT PROGRAM UNDER propriated to carry out this subsection— mation described in this paragraph in- FARM SECURITY AND RURAL IN- ‘‘(1) $25,000,000 for each of fiscal years 2008 cludes— VESTMENT ACT OF 2002. through 2012; and ‘‘(A) baseline information, including with Section 7405 of the Farm Security and ‘‘(2) $15,000,000 for each of fiscal years 2013 respect to each covered program— Rural Investment Act of 2002 (7 U.S.C. 3319f) through 2017.’’. ‘‘(i) the funding level for the program for is amended— SEC. 7503. RESEARCH AND DEVELOPMENT OF AG- the fiscal year preceding the year the annual (1) in subsection (c)(8)— RICULTURAL COUNTERMEASURES. budget submission of the President is sub- (A) in subparagraph (B), by striking ‘‘and’’ Section 14121(b) of the Food, Conservation, mitted; at the end; and Energy Act of 2008 (7 U.S.C. 8921(b)) is ‘‘(ii) the funding level requested in the an- (B) in subparagraph (C), by striking the pe- amended by striking ‘‘is authorized to be ap- nual budget submission of the President, in- riod at the end and inserting ‘‘; and’’; and propriated to carry out this section’’ and all cluding any increase or decrease in the fund- (C) by adding at the end the following: that follows and inserting the following: ing level; and ‘‘(D) beginning farmers and ranchers who ‘‘are authorized to be appropriated to carry ‘‘(iii) an explanation justifying any change are veterans (as defined in section 101 of title out this section— from the funding level specified in clause (i) 38, United States Code).’’; and ‘‘(1) $50,000,000 for each of fiscal years 2008 to the level specified in clause (ii); (2) by redesignating subsection (h) as sub- through 2012; and ‘‘(B) with respect to each covered program section (i); ‘‘(2) $15,000,000 for each of fiscal years 2013 that is carried out by the Economic Re- (3) by inserting after subsection (g) the fol- through 2017.’’. search Service or the Agricultural Research lowing: SEC. 7504. AGRICULTURAL BIOSECURITY GRANT Service, the location and staff years of the ‘‘(h) STATE GRANTS.— PROGRAM. program; ‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In Section 14122(e) of the Food, Conservation, ‘‘(C) the proposed funding levels to be allo- this subsection, the term ‘eligible entity’ and Energy Act of 2008 (7 U.S.C. 8922(e)) is cated to, and the expected publication date, means— amended— scope, and allocation level for, each request ‘‘(A) an agency of a State or political sub- (1) by striking ‘‘such sums as are nec- for awards to be published under— division of a State; essary’’; and ‘‘(i) each priority area specified in section ‘‘(B) a national, State, or regional organi- (2) by striking ‘‘section’’ and all that fol- 2(b)(2) of the Competitive, Special, and Fa- zation of agricultural producers; and lows and inserting the following: ‘‘section— cilities Research Grant Act (7 U.S.C. ‘‘(C) any other entity determined appro- ‘‘(1) such sums as are necessary for each of 450i(b)(2)); priate by the Secretary. fiscal years 2008 through 2012, to remain ‘‘(ii) each research and extension project ‘‘(2) GRANTS.—The Secretary shall use such available until expended; and carried out under section 1621(a) of the Food, sums as are necessary of funds made avail- ‘‘(2) $5,000,000 for each of fiscal years 2013 Agriculture, Conservation, and Trade Act of able to carry out this section for each fiscal through 2017, to remain available until ex- 1990 (7 U.S.C. 5811(a)); year under subsection (i) to make grants to pended.’’. ‘‘(iii) each grant awarded under section States, on a competitive basis, which States PART II—MISCELLANEOUS 1672B(a) of the Food, Agriculture, Conserva- shall use the grants to make grants to eligi- tion, and Trade Act of 1990 (7 U.S.C. 5925b(a)); ble entities to establish and improve farm SEC. 7511. GRAZINGLANDS RESEARCH LABORA- TORY. ‘‘(iv) each grant awarded under section safety programs at the local level.’’; and 412(b) of the Agricultural Research, Exten- (4) in subsection (i) (as redesignated by Section 7502 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 112 sion, and Education Reform Act of 1998 (7 paragraph (2))— U.S.C. 7632(b)); and (A) in paragraph (1)— Stat. 2019) is amended by striking ‘‘for the 5- year period beginning on the date of enact- ‘‘(v) each grant awarded under 7405(c)(1) of (i) in subparagraph (A), by striking ‘‘and’’ the Farm Security and Rural Investment at the end; ment of this Act’’ and inserting ‘‘until Sep- tember 30, 2017’’. Act of 2002 (7 U.S.C. 3319f(c)(1)); or (ii) in subparagraph (B), by striking the pe- ‘‘(D) any other information the Secretary riod at the end and inserting ‘‘; and’’; and SEC. 7512. BUDGET SUBMISSION AND FUNDING. Section 7506 of the Food, Conservation, and determines will increase congressional over- (iii) by adding at the end the following: sight with respect to covered programs. ‘‘(C) $17,000,000 for each of fiscal years 2013 Energy Act of 2008 (7 U.S.C. 7614c) is amend- ‘‘(3) PROHIBITION.—Unless the President through 2017, to remain available until ex- ed— (1) in subsection (a)— submits the information described in para- pended.’’; and graph (2)(C) for a fiscal year, the President (A) by striking ‘‘(a) DEFINITION OF COM- (B) in paragraph (2), by striking ‘‘2012’’ and may not carry out any program during the inserting ‘‘2017’’. PETITIVE PROGRAMS.—In this section, the term’’; and inserting the following: fiscal year that is authorized under— Subtitle E—Food, Conservation, and Energy ‘‘(a) DEFINITIONS.—In this section: ‘‘(A) section 2(b) of the Competitive, Spe- Act of 2008 ‘‘(1) COMPETITIVE PROGRAMS.—The term’’; cial, and Facilities Research Grant Act (7 PART I—AGRICULTURAL SECURITY and U.S.C. 450i(b)); ‘‘(B) section 1621 of the Food, Agriculture, SEC. 7501. AGRICULTURAL BIOSECURITY COMMU- (B) by adding at the end the following: NICATION CENTER. ‘‘(2) COVERED PROGRAM.—The term ‘covered Conservation, and Trade Act of 1990 (7 U.S.C. Section 14112 of the Food, Conservation, program’ means— 5811); and Energy Act of 2008 (7 U.S.C. 8912) is ‘‘(A) each research program carried out by ‘‘(C) section 1672B of the Food, Agriculture, amended by striking subsection (c) and in- the Agricultural Research Service or the Conservation, and Trade Act of 1990 (7 U.S.C. serting the following: Economic Research Service for which annual 5925b); ‘‘(D) section 411 of the Agricultural Re- ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— appropriations are requested in the annual There are authorized to be appropriated to budget submission of the President; and search, Extension, and Education Reform carry out this section— ‘‘(B) each competitive program (as defined Act of 1998 (7 U.S.C. 7631); or ‘‘(1) such sums as are necessary for each of in section 251(f)(1) of the Department of Agri- ‘‘(E) section 7405 of the Farm Security and fiscal years 2008 through 2012; and culture Reorganization Act of 1994 (7 U.S.C. Rural Investment Act of 2002 (7 U.S.C. 3319f). ‘‘(2) $2,000,000 for each of fiscal years 2013 6971(f)(1))) carried out by the National Insti- ‘‘(f) REPORT OF THE SECRETARY OF AGRI- through 2017.’’. tute of Food and Agriculture for which an- CULTURE.—Each year on a date that is not SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPAC- nual appropriations are requested in the an- later than the date on which the President ITY IN AGRICULTURAL BIOSECURITY nual budget submission of the President. submits the annual budget submission, the PLANNING, PREPARATION, AND RE- ‘‘(3) REQUEST FOR AWARDS.—The term ‘re- Secretary shall submit to Congress a report SPONSE. quest for awards’ means a funding announce- containing a description of the agricultural Section 14113 of the Food, Conservation, ment published by the National Institute of research, extension, and education activities and Energy Act of 2008 (7 U.S.C. 8913) is Food and Agriculture that provides detailed carried out by the Federal Government dur- amended— information on funding opportunities at the ing the fiscal year that immediately pre- (1) in subsection (a)(2)— Institute, including the purpose, eligibility, cedes the year for which the report is sub- (A) by striking ‘‘such sums as may be nec- restriction, focus areas, evaluation criteria, mitted, including— essary’’; and regulatory information, and instructions on ‘‘(1) a review of the extent to which those (B) by striking ‘‘subsection’’ and all that how to apply for such opportunities.’’; and activities— follows and inserting the following: ‘‘sub- (2) by adding at the end the following: ‘‘(A) are duplicative or overlap within the section— ‘‘(e) ADDITIONAL PRESIDENTIAL BUDGET Department of Agriculture; or ‘‘(1) such sums as are necessary for each of SUBMISSION REQUIREMENT.— ‘‘(B) are similar to activities carried out fiscal years 2008 through 2012; and ‘‘(1) IN GENERAL.—Each year, the President by— ‘‘(2) $15,000,000 for each of fiscal years 2013 shall submit to Congress, together with the ‘‘(i) other Federal agencies; through 2017.’’; and annual budget submission of the President, ‘‘(ii) the States (including the District of (2) in subsection (b)(2), by striking ‘‘is au- the information described in paragraph (2) Columbia, the Commonwealth of Puerto thorized to be appropriated to carry out this for each funding request for a covered pro- Rico and other territories or possessions of subsection’’ and all that follows and insert- gram. the United States);

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‘‘(iii) institutions of higher education (as (4) SECRETARY.—The term ‘‘Secretary’’ (B) EX-OFFICIO MEMBERS.—The ex-officio defined in section 101 of the Higher Edu- means the Secretary of Agriculture. members of the Board shall be the following cation Act of 1965 (20 U.S.C. 1001)); or (b) ESTABLISHMENT.— individuals or designees: ‘‘(iv) the private sector; and (1) IN GENERAL.—The Secretary shall estab- (i) The Secretary. ‘‘(2) for each report submitted under this lish a nonprofit corporation to be known as (ii) The Under Secretary of Agriculture for section on or after January 1, 2013, a 5-year the ‘‘Foundation for Food and Agriculture Research, Education, and Economics. projection of national priorities with respect Research’’. (iii) The Administrator of the Agricultural to agricultural research, extension, and edu- (2) STATUS.—The Foundation shall not be Research Service. cation, taking into account both domestic an agency or instrumentality of the United (iv) The Director of the National Institute and international needs.’’. States Government. of Food and Agriculture. SEC. 7513. NATURAL PRODUCTS RESEARCH PRO- (c) PURPOSES.—The purposes of the Foun- (v) The Director of the National Science GRAM. dation shall be— Foundation. Section 7525 of the Food, Conservation, and (1) to advance the research mission of the (C) APPOINTED MEMBERS.— Energy Act of 2008 (7 U.S.C. 5937) is amended Department by supporting agricultural re- (i) IN GENERAL.—The ex-officio members of by striking subsection (e) and inserting the search activities focused on addressing key the Board under subparagraph (B) shall, by following: problems of national and international sig- majority vote, appoint to the Board 15 indi- ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— nificance including— viduals, of whom— There is authorized to be appropriated to (A) plant health, production, and plant (I) 8 shall be selected from a list of can- carry out this section $7,000,000 for each of products; didates to be provided by the National Acad- fiscal years 2013 through 2017.’’. (B) animal health, production, and prod- emy of Sciences; and SEC. 7514. SUN GRANT PROGRAM. ucts; (II) 7 shall be selected from lists of can- (a) IN GENERAL.—Section 7526 of the Food, (C) food safety, nutrition, and health; didates provided by industry. Conservation, and Energy Act of 2008 (7 (D) renewable energy, natural resources, (ii) REQUIREMENTS.— U.S.C. 8114) is amended— and the environment; (I) EXPERTISE.—The ex-officio members (1) in subsection (a)(4)(B), by striking ‘‘the (E) agricultural and food security; shall ensure that a majority of the members Department of Energy’’ and inserting ‘‘other (F) agriculture systems and technology; of the Board have actual experience in agri- appropriate Federal agencies (as determined and cultural research and, to the extent prac- by the Secretary)’’; (G) agriculture economics and rural com- ticable, represent diverse sectors of agri- (2) in subsection (b)(1)— munities; and culture. (A) in subparagraph (A), by striking ‘‘at (2) to foster collaboration with agricul- (II) LIMITATION.—No employee of the Fed- South Dakota State University’’; tural researchers from the Federal Govern- eral Government may serve as an appointed (B) in subparagraph (B), by striking ‘‘at ment, institutions of higher education, in- member of the Board under this subpara- the University of Tennessee at Knoxville’’; dustry, and nonprofit organizations. graph. (C) in subparagraph (C), by striking ‘‘at (d) DUTIES.— (III) NOT FEDERAL EMPLOYMENT.—Appoint- Oklahoma State University’’; (1) IN GENERAL.—The Foundation shall— ment to the Board under this subparagraph (D) in subparagraph (D), by striking ‘‘at (A) award grants to, or enter into con- shall not constitute Federal employment. Oregon State University’’; tracts, memoranda of understanding, or co- (iii) AUTHORITY.—All appointed members of (E) in subparagraph (E), by striking ‘‘at operative agreements with, scientists and the Board shall be voting members. Cornell University’’; and entities, which may include agricultural re- (D) CHAIR.—The Board shall, from among (F) in subparagraph (F), by striking ‘‘at search agencies in the Department, univer- the members of the Board, designate an indi- the University of Hawaii’’; sity consortia, public-private partnerships, vidual to serve as Chair of the Board. (3) in subsection (c)(1)— institutions of higher education, nonprofit (3) INITIAL MEETING.—Not later than 60 (A) in subparagraph (B), by striking organizations, and industry, to efficiently days after the date of enactment of this Act, ‘‘multistate’’ and all that follows through and effectively advance the goals and prior- the Secretary shall convene a meeting of the ‘‘technology implementation’’ and inserting ities of the Foundation; ex-officio members of the Board— ‘‘integrated, multistate research, extension, (B) in consultation with the Secretary— (A) to incorporate the Foundation; and and education programs on technology devel- (i) identify existing and proposed Federal (B) to appoint the members of the Board in opment and technology implementation’’; intramural and extramural research and de- accordance with paragraph (2)(C)(i). (B) by striking subparagraph (C); and velopment programs relating to the purposes (4) DUTIES.— (C) by redesignating subparagraph (D) as of the Foundation described in subsection (A) IN GENERAL.—The Board shall— subparagraph (C); (c); and (i) establish bylaws for the Foundation (4) in subsection (d)— (ii) coordinate Foundation activities with that, at a minimum, include— (A) in paragraph (1)— those programs so as to minimize duplica- (I) policies for the selection of future (i) by striking ‘‘gasification’’ and inserting tion of existing efforts; Board members, officers, employees, agents, ‘‘bioproducts’’; and (C) identify unmet and emerging agricul- and contractors of the Foundation; (ii) by striking ‘‘the Department of En- tural research needs after reviewing the (II) policies, including ethical standards, ergy’’ and inserting ‘‘other appropriate Fed- Roadmap for Agricultural Research, Edu- for— eral agencies’’; cation and Extension as required by section (aa) the acceptance, solicitation, and dis- (B) by striking paragraph (2); 7504 of the Food, Conservation, and Energy position of donations and grants to the (C) by redesignating paragraphs (3) and (4) Act of 2008 (7 U.S.C. 7614a); Foundation; and as paragraphs (2) and (3), respectively; and (D) facilitate technology transfer and re- (bb) the disposition of assets of the Foun- (D) in paragraph (1), by striking ‘‘in ac- lease of information and data gathered from dation, including appropriate limits on the cordance with paragraph (2)’’; and the activities of the Foundation to the agri- ability of donors to designate, by stipulation (5) in subsection (g), by striking ‘‘2012’’ and cultural research community; or restriction, the use or recipient of donated inserting ‘‘2017’’. (E) promote and encourage the develop- funds; (b) CONFORMING AMENDMENTS.—Section ment of the next generation of agricultural (III) policies that would subject all em- 7526(f) of the Food, Conservation, and Energy research scientists; and ployees, fellows, trainees, and other agents Act of 2008 (7 U.S.C. 8114(f)) is amended— (F) carry out such other activities as the of the Foundation (including members of the (1) in paragraph (1), by striking ‘‘sub- Board determines to be consistent with the Board) to the conflict of interest standards section (c)(1)(D)(i)’’ and inserting ‘‘sub- purposes of the Foundation. under section 208 of title 18, United States section (c)(1)(C)(i)’’; and (2) AUTHORITY.—Subject to paragraph (3), Code; (2) in paragraph (2), by striking ‘‘sub- the Foundation shall be the sole entity re- (IV) policies for writing, editing, printing, section (d)(1)’’ and inserting ‘‘subsection sponsible for carrying out the duties enumer- publishing, and vending of books and other (d)’’. ated in this subsection. materials; Subtitle F—Miscellaneous (3) RELATIONSHIP TO OTHER ACTIVITIES.— (V) policies for the conduct of the general SEC. 7601. FOUNDATION FOR FOOD AND AGRI- The activities described in paragraph (1) operations of the Foundation, including a CULTURE RESEARCH. shall be supplemental to any other activities cap on administrative expenses for recipients (a) DEFINITIONS.—In this section: at the Department and shall not preempt of a grant, contract, or cooperative agree- (1) BOARD.—The term ‘‘Board’’ means the any authority or responsibility of the De- ment from the Foundation; and Board of Directors described in subsection partment under another provision of law. (VI) specific duties for the Executive Di- (e). (e) BOARD OF DIRECTORS.— rector; (2) DEPARTMENT.—The term ‘‘Department’’ (1) ESTABLISHMENT.—The Foundation shall (ii) prioritize and provide overall direction means the Department of Agriculture. be governed by a Board of Directors. for the activities of the Foundation; (3) FOUNDATION.—The term ‘‘Foundation’’ (2) COMPOSITION.— (iii) evaluate the performance of the Exec- means the Foundation for Food and Agri- (A) IN GENERAL.—The Board shall be com- utive Director; and culture Research established under sub- posed of appointed and ex-officio, nonvoting (iv) carry out any other necessary activi- section (b). members. ties regarding the Foundation.

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(B) ESTABLISHMENT OF BYLAWS.—In estab- (ix) modify or consent to the modification (iii) a business organization or other entity lishing bylaws under subparagraph (A)(i), the of any contract or agreement to which the in which the individual has an interest, in- Board shall ensure that the bylaws do not— Foundation is a party or in which the Foun- cluding an organization or other entity with (i) reflect unfavorably on the ability of the dation has an interest; which the individual is negotiating employ- Foundation to carry out the duties of the (x) take such action as may be necessary ment. Foundation in a fair and objective manner; to obtain patents and licenses for devices (5) INTELLECTUAL PROPERTY.—The Board or and procedures developed by the Foundation shall adopt written standards to govern own- (ii) compromise, or appear to compromise, and employees of the Foundation; ership of any intellectual property rights de- the integrity of any governmental agency or (xi) sue and be sued in the corporate name rived from the collaborative efforts of the program, or any officer or employee em- of the Foundation, and complain and defend Foundation. ployed by or involved in a governmental in courts of competent jurisdiction; (6) LIABILITY.—The United States shall not agency or program. (xii) appoint other groups of advisors as be liable for any debts, defaults, acts, or (5) TERMS AND VACANCIES.— may be determined necessary to carry out omissions of the Foundation nor shall the (A) TERMS.— the functions of the Foundation; and full faith and credit of the United States ex- (i) IN GENERAL.—The term of each member (xiii) exercise such other incidental powers tend to any obligations of the Foundation. of the Board appointed under paragraph as are necessary to carry out the duties and (g) FUNDS.— (2)(C) shall be 5 years. functions of the Foundation in accordance (1) MANDATORY FUNDING.— (ii) PARTIAL TERMS.—If a member of the with this section (A) IN GENERAL.—On October 1, 2012, of the Board does not serve the full term applicable (B) LIMITATION.—No appointed member of funds of the Commodity Credit Corporation, under clause (i), the individual appointed to the Board or officer or employee of the Foun- the Secretary shall transfer to the Founda- fill the resulting vacancy shall be appointed dation or of any program established by the tion to carry out this section $100,000,000, to for the remainder of the term of the prede- Foundation (other than ex-officio members remain available until expended under the cessor of the individual. of the Board) shall exercise administrative conditions described in subparagraph (B). (iii) TRANSITION.—A member of the Board control over any Federal employee (B) CONDITIONS ON EXPENDITURE.—The may continue to serve after the expiration of (3) RECORDS.— Foundation may use the funds made avail- the term of the member until a successor is (A) AUDITS.—The Foundation shall— able under subparagraph (A) to carry out the appointed. (i) provide for annual audits of the finan- purposes of the Foundation only to the ex- (B) VACANCIES.—Any vacancy in the mem- cial condition of the Foundation; and tent that the Foundation secures an equal bership of the Board shall be filled in the (ii) make the audits, and all other records, amount of non-Federal matching funds for manner in which the original position was documents, and other papers of the Founda- each expenditure. made and shall not affect the power of the tion, available to the Secretary and the (C) PROHIBITION ON CONSTRUCTION.—None of remaining members to execute the duties of Comptroller General of the United States for the funds made available under subparagraph the Board. examination or audit. (A) may be used for construction. (6) COMPENSATION.—Members of the Board (B) REPORTS.— (2) SEPARATION OF FUNDS.—The Executive may not receive compensation for service on (i) ANNUAL REPORT ON FOUNDATION.— Director shall ensure that any funds received the Board but may be reimbursed for travel, (I) IN GENERAL.—Not later than 5 months under paragraph (1) are held in separate ac- subsistence, and other necessary expenses in- following the end of each fiscal year, the counts from funds received from nongovern- curred in carrying out the duties of the Foundation shall publish a report for the mental entities as described in subsection Board. preceding fiscal year that includes— (f)(2)(A)(iii). (7) MEETINGS AND QUORUM.—A majority of (aa) a description of Foundation activities, the members of the Board shall constitute a including accomplishments; and SEC. 7602. OBJECTIVE AND SCHOLARLY AGRI- CULTURAL AND FOOD LAW RE- quorum for purposes of conducting business (bb) a comprehensive statement of the op- SEARCH AND INFORMATION. of the Board. erations and financial condition of the Foun- (a) FINDINGS.—Congress finds that— DMINISTRATION.— (f) A dation. (1) the farms, ranches, and forests of the (1) EXECUTIVE DIRECTOR.— (II) FINANCIAL CONDITION.—Each report United States are impacted by a complex and (A) IN GENERAL.—The Board shall hire an under subclause (I) shall include a descrip- rapidly evolving web of international, Fed- Executive Director who shall carry out such tion of all gifts or grants to the Foundation eral, State, and local laws (including regula- duties and responsibilities as the Board may of real or personal property or money, which tions); prescribe. shall include— (2) objective, scholarly, and authoritative (B) SERVICE.—The Executive Director shall (aa) the source of the gifts or grants; and agricultural and food law research and infor- serve at the pleasure of the Board. (bb) any restrictions on the purposes for mation helps the farm, ranch, and forestry (2) ADMINISTRATIVE POWERS.— which the gift or grant may be used. community contribute to the strength of the (A) IN GENERAL.—In carrying out this sec- (III) AVAILABILITY.—The Foundation United States through improved conservation, the Board, acting through the Execu- shall— tion, environmental protection, job creation, tive Director, may— (aa) make copies of each report submitted economic development, renewable energy (i) adopt, alter, and use a corporate seal, under subclause (I) available for public in- production, outdoor recreational opportuni- which shall be judicially noticed; spection; and ties, and increased local and regional sup- (ii) hire, promote, compensate, and dis- (bb) on request, provide a copy of the re- plies of food, fiber, and fuel; and charge 1 or more officers, employees, and port to any individual. (3) the vast agricultural community of the agents, as may be necessary, and define the (IV) PUBLIC MEETING.—The Board shall duties of the officers, employees, and agents; hold an annual public meeting to summarize United States, including farmers, ranchers, (iii) solicit and accept any funds, gifts, the activities of the Foundation. foresters, attorneys, policymakers, and extension personnel, need access to agricul- grants, devises, or bequests of real or per- (ii) GRANT REPORTING.—Any recipient of a sonal property made to the Foundation, in- grant under subsection (d)(1)(A) shall provide tural and food law research and information cluding such support from private entities; the Foundation with a report at the conclu- provided by an objective, scholarly, and neu- (iv) prescribe the manner in which— sion of any research or studies conducted the tral source. (b) PARTNERSHIPS.—The Secretary, acting (I) real or personal property of the Founda- describes the results of the research or stud- through the National Agricultural Library, tion is acquired, held, and transferred; ies, including any data generated. shall support the dissemination of objective, (II) general operations of the Foundation (4) INTEGRITY.— scholarly, and authoritative agricultural and are to be conducted; and (A) IN GENERAL.—To ensure integrity in food law research and information by enter- (III) the privileges granted to the Board by the operations of the Foundation, the Board ing into partnerships with institutions of law are exercised and enjoyed; shall develop and enforce procedures relating higher education that have expertise in agri- (v) with the consent of the applicable exec- to standards of conduct, financial disclosure cultural and food law research and informa- utive department or independent agency, use statements, conflict of interest (including tion. the information, services, and facilities of recusal and waiver rules), audits, and any (c) RESTRICTION.—For each fiscal year, the the department or agency in carrying out other matters determined appropriate by the Secretary shall use not more than $1,000,000 this section; Board. of the amounts made available to the Na- (vi) enter into contracts with public and (B) FINANCIAL CONFLICTS OF INTEREST.— tional Agricultural Library to carry out this private organizations for the writing, edit- Any individual who is an officer, employee, section. ing, printing, and publishing of books and or member of the Board is prohibited from other material; any participation in deliberations by the TITLE VIII—FORESTRY (vii) hold, administer, invest, and spend Foundation of a matter that would directly Subtitle A—Repeal of Certain Forestry any gift, devise, or bequest of real or per- or predictably affect any financial interest Programs sonal property made to the Foundation; of— SEC. 8001. FOREST LAND ENHANCEMENT PRO- (viii) enter into such contracts, leases, co- (i) the individual; GRAM. operative agreements, and other trans- (ii) a relative (as defined in section 109 of (a) REPEAL.—Section 4 of the Cooperative actions as the Board considers appropriate to the Ethics in Government Act of 1978 (5 Forestry Assistance Act of 1978 (16 U.S.C. conduct the activities of the Foundation; U.S.C. App.)) of that individual; or 2103) is repealed.

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(b) CONFORMING AMENDMENT.—Section 8002 Subtitle C—Reauthorization of Other tion Act of 2003 (as redesignated by sub- of the Farm Security and Rural Investment Forestry-related Laws section (b)(1)) is amended by striking ‘‘2008’’ Act of 2002 (Public Law 107–171; 16 U.S.C. 2103 SEC. 8201. RURAL REVITALIZATION TECH- and inserting ‘‘2017’’. note) is amended by striking subsection (a). NOLOGIES. SEC. 8204. STEWARDSHIP END RESULT CON- (c) EFFECTIVE DATE.—The amendments Section 2371(d)(2) of the Food, Agriculture, TRACTING PROJECTS. made by this section shall take effect on Oc- Conservation, and Trade Act of 1990 (7 U.S.C. (a) IN GENERAL.—Title VI of the Healthy tober 1, 2012. 6601(d)(2)) is amended by striking ‘‘2012’’ and Forests Restoration Act of 2003 (16 U.S.C. SEC. 8002. WATERSHED FORESTRY ASSISTANCE inserting ‘‘2017’’. 6591) is amended by adding at the end the fol- PROGRAM. SEC. 8202. OFFICE OF INTERNATIONAL FOR- lowing: (a) REPEAL.—Section 6 of the Cooperative ESTRY. ‘‘SEC. 602. STEWARDSHIP END RESULT CON- Forestry Assistance Act of 1978 (16 U.S.C. Section 2405 of the Global Climate Change TRACTING PROJECTS. 2103b) is repealed. Prevention Act of 1990 (7 U.S.C. 6704) is ‘‘(a) DEFINITIONS.—In this section: (b) EFFECTIVE DATE.—The amendment amended by striking subsection (d) and in- ‘‘(1) CHIEF.—The term ‘Chief’ means the made by this section shall take effect on Oc- serting the following: Chief of the Forest Service. tober 1, 2012. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(2) DIRECTOR.—The term ‘Director’ means To carry out this section, there are author- the Director of the Bureau of Land Manage- SEC. 8003. EXPIRED COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING ized to be appropriated— ment. PROGRAM. ‘‘(1) such sums as are necessary for each of ‘‘(b) PROJECTS.—The Chief and the Direc- tor, via agreement or contract as appro- Section 18 of the Cooperative Forestry As- fiscal years 1996 through 2012; and priate, may enter into stewardship con- sistance Act of 1978 (16 U.S.C. 2112) is re- ‘‘(2) $10,000,000 for each of fiscal years 2013 tracting projects with private persons or pealed. through 2017.’’. other public or private entities to perform SEC. 8004. HISPANIC-SERVING INSTITUTION AG- SEC. 8203. INSECT INFESTATIONS AND RELATED DISEASES. services to achieve land management goals RICULTURAL LAND NATIONAL RE- for the national forests and the public lands SOURCES LEADERSHIP PROGRAM. (a) FINDINGS AND PURPOSES.—Section 401 of the Healthy Forests Restoration Act of 2003 that meet local and rural community needs. (a) REPEAL.—Section 8402 of the Food, Con- ‘‘(c) LAND MANAGEMENT GOALS.—The land servation, and Energy Act of 2008 (16 U.S.C. (16 U.S.C. 6551) is amended— (1) in subsection (a)— management goals of a project under sub- 1649a) is repealed. section (b) may include— (b) EFFECTIVE DATE.—The amendment (A) by redesignating paragraphs (3) through (12) as paragraphs (4) through (13), ‘‘(1) road and trail maintenance or obliter- made by this section shall take effect on Oc- ation to restore or maintain water quality; tober 1, 2012. respectively; and (B) by inserting after paragraph (2) the fol- ‘‘(2) soil productivity, habitat for wildlife SEC. 8005. TRIBAL WATERSHED FORESTRY AS- and fisheries, or other resource values; SISTANCE PROGRAM. lowing: ‘‘(3) the mountain pine beetle is— ‘‘(3) setting of prescribed fires to improve (a) REPEAL.—Section 303 of the Healthy ‘‘(A) threatening and ravaging forests the composition, structure, condition, and Forests Restoration Act of 2003 (16 U.S.C. health of stands or to improve wildlife habi- 6542) is repealed. throughout the Western region of the United States, including Arizona, California, Colo- tat; (b) EFFECTIVE DATE.—The amendment rado, Idaho, Montana, Nevada, New Mexico, ‘‘(4) removing vegetation or other activi- made by this section shall take effect on Oc- ties to promote healthy forest stands, reduce tober 1, 2012. Oregon, and South Dakota; ‘‘(B) reaching epidemic populations and se- fire hazards, or achieve other land manage- Subtitle B—Reauthorization of Cooperative verely impacting over 41,000,000 acres in ment objectives; Forestry Assistance Act of 1978 Programs western forests; and ‘‘(5) watershed restoration and mainte- SEC. 8101. STATE-WIDE ASSESSMENT AND STRAT- ‘‘(C) deteriorating forest health in national nance; EGIES FOR FOREST RESOURCES. forests and, when combined with drought, ‘‘(6) restoration and maintenance of wild- Section 2A(f)(1) of the Cooperative For- disease, and storm damage, is resulting in life and fish; or estry Assistance Act of 1978 (16 U.S.C. extreme fire hazards in national forests ‘‘(7) control of noxious and exotic weeds 2101a(f)(1)) is amended by striking ‘‘2012’’ and across the Western United States and endan- and reestablishing. inserting ‘‘2017’’. gering the economic stability of surrounding ‘‘(d) AGREEMENTS OR CONTRACTS.— ‘‘(1) PROCUREMENT PROCEDURE.—A source SEC. 8102. FOREST STEWARDSHIP PROGRAM. adjacent communities, ranches, and parks;’’; for performance of an agreement or contract Section 5(h) of the Cooperative Forestry and under subsection (b) shall be selected on a Assistance Act of 1978 (16 U.S.C. 2103a(h)) is (2) in subsection (b)— best-value basis, including consideration of amended by striking ‘‘such sums as may be (A) in paragraph (2), by striking ‘‘and’’ at source under other public and private agree- necessary thereafter’’ and inserting the end; ments or contracts. ‘‘$50,000,000 for each of fiscal years 2013 (B) in paragraph (3), by striking the period ‘‘(2) CONTRACT FOR SALE OF PROPERTY.—A through 2017’’. at the end and inserting ‘‘; and’’; and contract entered into under this section SEC. 8103. FOREST LEGACY PROGRAM. (C) by adding at the end the following: ‘‘(4) to provide for designation of treat- may, at the discretion of the Secretary of Section 7 of the Cooperative Forestry As- Agriculture, be considered a contract for the sistance Act of 1978 (16 U.S.C. 2103c) is ment areas pursuant to section 405.’’. ESIGNATION OF TREATMENT AREAS.— sale of property under such terms as the Sec- amended by striking subsection (m) and in- (b) D Title IV of the Healthy Forests Restoration retary may prescribe without regard to any serting the following: Act of 2003 (16 U.S.C. 6551 et seq.) is amend- other provision of law. ‘‘(m) FUNDING.— ed— ‘‘(3) TERM.— ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— (1) by redesignating sections 405 and 406 (16 ‘‘(A) IN GENERAL.—Except as provided in There is authorized to be appropriated to U.S.C. 6555, 6556) as sections 406 and 407, re- subparagraph (B), the Chief and the Director carry out this section $200,000,000 for each of spectively; and may enter into a contract under subsection fiscal years 2013 through 2017. (2) by inserting after section 404 (16 U.S.C. (b) in accordance with section 3903 of title 41, ‘‘(2) ADDITIONAL FUNDING SOURCES.—In ad- 6554) the following: United States Code. dition to any funds appropriated for each fis- ‘‘(B) MAXIMUM.—The period of the contract cal year to carry out this section, the Sec- ‘‘SEC. 405. DESIGNATION OF TREATMENT AREAS. ‘‘(a) DESIGNATION OF TREATMENT AREAS.— under subsection (b) may exceed 5 years but retary may use any other Federal funds may not exceed 10 years. available to the Secretary.’’. Not later than 60 days after the date of enactment of the Agriculture Reform, Food, ‘‘(4) OFFSETS.— SEC. 8104. COMMUNITY FOREST AND OPEN and Jobs Act of 2012, the Secretary shall des- ‘‘(A) IN GENERAL.—The Chief and the Direc- SPACE CONSERVATION PROGRAM. ignate treatment areas on at least 1 national tor may apply the value of timber or other Section 7A of the Cooperative Forestry As- forest in each State, if requested by the Gov- forest products removed as an offset against sistance Act of 1978 (16 U.S.C. 2103d) is ernor of the State, that the Secretary deter- the cost of services received under the agree- amended by striking subsection (g) and in- mines, based on annual forest health sur- ment or contract described in subsection (b). serting the following: veys, are experiencing declining forest ‘‘(B) METHODS OF APPRAISAL.—The value of ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— health due to insect or disease infestation. timber or other forest products used as an There is authorized to be appropriated to ‘‘(b) TREATMENT OF AREAS.—The Secretary offset under subparagraph (A)— carry out this section $50,000,000 for each of may carry out treatments to address the in- ‘‘(i) shall be determined using appropriate fiscal years 2013 through 2017.’’. sect or disease infestation in the areas des- methods of appraisal commensurate with the SEC. 8105. URBAN AND COMMUNITY FORESTRY ignated under subsection (a) in accordance quantity of products to be removed; and ASSISTANCE. with sections 104, 105, 106, and 401. ‘‘(ii) may— Section 9(i) of the Cooperative Forestry ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(I) be determined using a unit of measure Assistance Act of 1978 (16 U.S.C. 2105(i)) is There is authorized to be appropriated to appropriate to the contracts; and amended by striking ‘‘such sums as may be carry out this section $200,000,000 for each of ‘‘(II) may include valuing products on a necessary for each fiscal year thereafter’’ fiscal years 2013 through 2017.’’. per-acre basis. and inserting ‘‘$50,000,000 for each of fiscal (c) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(5) RELATION TO OTHER LAWS.—Notwith- years 2013 through 2017’’. Section 407 of the Healthy Forests Restora- standing subsections (d) and (g) of section 14

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00144 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4577 of the National Forest Management Act of Director shall report to the Committee on Subtitle D—Miscellaneous Provisions 1976 (16 U.S.C. 472a), the Chief may enter into Agriculture, Nutrition, and Forestry of the SEC. 8301. MCINTIRE-STENNIS COOPERATIVE an agreement or contract under subsection Senate and the Committee on Agriculture of FORESTRY ACT. (b). the House of Representatives on— (a) 1890 WAIVERS.—Section 4 of Public Law ‘‘(6) CONTRACTING OFFICER.—Notwith- ‘‘(1) the status of development, execution, 87–788 (commonly known as the ‘‘McIntire- standing any other provision of law, the Sec- and administration of agreements or con- Stennis Cooperative Forestry Act’’) (16 retary or the Secretary of the Interior may tracts under subsection (b); U.S.C. 582a–3) is amended by inserting ‘‘The determine the appropriate contracting offi- ‘‘(2) the specific accomplishments that matching funds requirement shall not be ap- cer to enter into and administer an agree- have resulted; and plicable to eligible 1890 Institutions (as de- ment or contract under subsection (b). ‘‘(3) the role of local communities in the fined in section 2 of the Agricultural Re- ‘‘(e) RECEIPTS.— development of agreements or contract search, Extension, and Education Reform ‘‘(1) IN GENERAL.—The Chief and the Direc- plans.’’. Act of 1998 (7 U.S.C. 7601)) if the allocation is tor may collect monies from an agreement (b) CONFORMING AMENDMENT.—Section 347 below $200,000.’’ before ‘‘The Secretary is au- or contract under subsection (b) if the collec- of the Department of the Interior and Re- thorized’’ in the second sentence. tion is a secondary objective of negotiating lated Agencies Appropriations Act, 1999 (16 (b) PARTICIPATION.—Section 8 of Public the contract that will best achieve the pur- U.S.C. 2104 note; Public Law 105–277) is re- Law 87–788 (commonly known as the poses of this section. pealed. ‘‘ ‘McIntire-Stennis Cooperative Forestry ‘‘(2) USE.—Monies from an agreement or Act’’) (16 U.S.C. 582a–7) is amended by insert- contract under subsection (b)— SEC. 8205. HEALTHY FORESTS RESERVE PRO- ing ‘the Federated States of Micronesia, ‘‘(A) may be retained by the Chief and the GRAM. American Samoa, the Northern Mariana Is- Director; and (a) DEFINITION OF ACREAGE OWNED BY IN- lands, the District of Columbia,’ before ‘and ‘‘(B) shall be available for expenditure DIAN TRIBES.—Section 502(e)(3) of the Guam’ ’’. without further appropriation at the project Healthy Forests Restoration Act (16 U.S.C. (c) EFFECTIVE DATE.—The amendments site from which the monies are collected or 6572(e)(3)) is amended— made by this section take effect on October at another project site. (1) in subparagraph (C), by striking ‘‘sub- 1, 2012. ‘‘(3) RELATION TO OTHER LAWS.— paragraphs (A) and (B)’’ and inserting SEC. 8302. REVISION OF STRATEGIC PLAN FOR ‘‘(A) IN GENERAL.—Notwithstanding any ‘‘clauses (i) and (ii)’’; FOREST INVENTORY AND ANALYSIS. other provision of law, the value of services (2) by redesignating subparagraphs (A) (a) REVISION REQUIRED.—Not later than 180 received by the Chief or the Director under a through (C) as clauses (i) through (iii), re- days after the date of enactment of this Act, stewardship contract project conducted spectively, and indenting appropriately; and the Secretary of Agriculture shall revise the under this section, and any payments made (3) by striking ‘‘In the case of’’ and insert- strategic plan for forest inventory and anal- or resources provided by the contractor, ing the following: ysis initially prepared pursuant to section Chief, or Director shall not be considered ‘‘(A) DEFINITION OF ACREAGE OWNED BY IN- 3(e) of the Forest and Rangeland Renewable monies received from the National Forest DIAN TRIBES.—In this paragraph, the term Resources Research Act of 1978 (16 U.S.C. System or the public lands. ‘acreage owned by Indian tribes’ includes— 1642(e)) to address the requirements imposed ‘‘(B) KNUTSON-VANDERBERG ACT.—The Act ‘‘(i) land that is held in trust by the United by subsection (b). of June 9, 1930 (commonly known as the States for Indian tribes or individual Indi- (b) ELEMENTS OF REVISED STRATEGIC ‘Knutson-Vanderberg Act’) (16 U.S.C. 576 et ans; PLAN.—In revising the strategic plan, the seq.) shall not apply to any agreement or ‘‘(ii) land, the title to which is held by In- Secretary of Agriculture shall describe in de- contract under subsection (b). dian tribes or individual Indians subject to tail the organization, procedures, and fund- ‘‘(f) COSTS OF REMOVAL.—Notwithstanding Federal restrictions against alienation or ening needed to achieve each of the following: the fact that a contractor did not harvest cumbrance; (1) Complete the transition to a fully the timber, the Chief may collect deposits ‘‘(iii) land that is subject to rights of use, from a contractor covering the costs of re- annualized forest inventory program and in- occupancy, and benefit of certain Indian moval of timber or other forest products clude inventory and analysis of interior under— tribes; Alaska. ‘‘(1) the Act of August 11, 1916 (16 U.S.C. ‘‘(iv) land that is held in fee title by an In- (2) Implement an annualized inventory of 490); and dian tribe; or trees in urban settings, including the status ‘‘(2) and the Act of June 30, 1914 (16 U.S.C. ‘‘(v) land that is owned by a native cor- and trends of trees and forests, and assess- 498). poration formed under section 17 of the Act ments of their ecosystem services, values, ‘‘(g) PERFORMANCE AND PAYMENT GUARAN- of June 18, 1934 (commonly known as the ‘In- health, and risk to pests and diseases. TEES.— dian Reorganization Act’) (25 U.S.C. 477) or (3) Report information on renewable bio- ‘‘(1) IN GENERAL.—The Chief and the Direc- section 8 of the Alaska Native Claims Settle- mass supplies and carbon stocks at the local, tor may require performance and payment ment Act (43 U.S.C. 1607); or State, regional, and national level, including bonds under sections 28.103–2 and 28.103–3 of ‘‘(vi) a combination of 1 or more types of by ownership type. the Federal Acquisition Regulation, in an land described in clauses (i) through (v). (4) Engage State foresters and other users amount that the contracting officer con- ‘‘(B) ENROLLMENT OF ACREAGE.—In the case of information from the forest inventory and siders sufficient to protect the investment in of’’. analysis in reevaluating the list of core data receipts by the Federal Government gen- (b) CHANGE IN FUNDING SOURCE FOR variables collected on forest inventory and erated by the contractor from the estimated HEALTHY FORESTS RESERVE PROGRAM.—Sec- analysis plots with an emphasis on dem- value of the forest products to be removed tion 508 of the Healthy Forests Restoration onstrated need. under a contract under subsection (b). Act of 2003 (16 U.S.C. 6578) is amended— (5) Improve the timeliness of the timber ‘‘(2) EXCESS OFFSET VALUE.—If the offset (1) in subsection (a), by striking ‘‘IN GEN- product output program and accessibility of value of the forest products exceeds the ERAL’’ and inserting ‘‘FISCAL YEARS 2009 the annualized information on that database. value of the resource improvement treat- THROUGH 2012’’; (6) Foster greater cooperation among the ments, the Chief and the Director may— (2) by redesignating subsection (b) as sub- forest inventory and analysis program, re- ‘‘(A) collect any residual receipts under the section (d); and search station leaders, and State foresters Act of June 9, 1930 (commonly known as the (3) by inserting after subsection (a) the fol- and other users of information from the for- ‘Knutson-Vanderberg Act’) (16 U.S.C. 576 et lowing: est inventory and analysis. seq.); and (7) Availability of and access to non-Fed- ‘‘(b) FISCAL YEARS 2013 THROUGH 2017.— ‘‘(B) apply the excess to other authorized eral resources to improve information anal- There is authorized to be appropriated to the ysis and information management. stewardship projects. Secretary of Agriculture to carry out this ‘‘(h) MONITORING AND EVALUATION.— (8) Collaborate with the Natural Resources section $9,750,000 for each of fiscal years 2013 ‘‘(1) IN GENERAL.—The Chief and the Direc- Conservation Service, National Aeronautics through 2017. tor shall establish a multiparty monitoring and Space Administration, National Oceanic and evaluation process that accesses the ‘‘(c) ADDITIONAL SOURCE OF FUNDS.—In ad- and Atmospheric Administration, and United stewardship contracting projects conducted dition to funds appropriated pursuant to the States Geological Survey to integrate re- under this section. authorization of appropriations in subsection mote sensing, spatial analysis techniques, ‘‘(2) PARTICIPANTS.—Other than the Chief (b) for a fiscal year, the Secretary may use and other new technologies in the forest in- and Director, participants in the process de- such amount of the funds appropriated for ventory and analysis program. scribed in paragraph (1) may include— that fiscal year to carry out the Soil Con- (9) Understand and report on changes in ‘‘(A) any cooperating governmental agen- servation and Domestic Allotment Act (16 land cover and use. cies, including tribal governments; and U.S.C. 590a et seq.) as the Secretary deter- (10) Expand existing programs to promote ‘‘(B) any other interested groups or indi- mines necessary to cover the cost of tech- sustainable forest stewardship through in- viduals. nical assistance, management, and enforce- creased understanding, in partnership with ‘‘(i) REPORTING.—Not later than 1 year ment responsibilities for land enrolled in the other Federal agencies, of the over 10 million after the date of enactment of this section, healthy forests reserve program pursuant to family forest owners, their demographics, and annually thereafter, the Chief and the subsections (a) and (b) of section 504.’’. and the barriers to forest stewardship.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00145 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4578 CONGRESSIONAL RECORD — SENATE June 25, 2012 (11) Implement procedures to improve the begin issuing criteria for determining which ‘‘(2) expedite the approval of innovative statistical precision of estimates at the sub- assembled and finished products may qualify products resulting from technology devel- State level. to receive the label under paragraph (1).’’; oped by the Forest Products Laboratory or (c) SUBMISSION OF REVISED STRATEGIC (3) by redesignating subsections (d), (e), (f), partners of the Laboratory; and PLAN.—The Secretary of Agriculture shall (g), and (h) as subsections (e), (f), (g), (i), and ‘‘(3) provide appropriate technical assist- submit the revised strategic plan to the (j), respectively; ance to applicants, as determined by the Sec- Committee on Agriculture of the House of (4) by inserting after subsection (c) the fol- retary.’’; and Representatives and the Committee on Agri- lowing: (7) in subsection (j) (as redesignated by culture, Nutrition, and Forestry of the Sen- ‘‘(d) OUTREACH, EDUCATION, AND PRO- paragraph (3))— ate. MOTION.— (A) in the heading of paragraph (1), by in- TITLE IX—ENERGY ‘‘(1) IN GENERAL.—The Secretary may en- serting ‘‘FOR FISCAL YEARS 2008 THROUGH 2012’’ after ‘‘FUNDING’’; SEC. 9001. DEFINITION OF RENEWABLE CHEM- gage in outreach, educational, and pro- ICAL. motional activities intended to increase (B) in the heading of paragraph (2), by in- Section 9001 of the Farm Security and knowledge, awareness, and benefits of serting ‘‘FOR FISCAL YEARS 2009 THROUGH Rural Investment Act of 2002 (7 U.S.C. 8101) biobased products. 2012’’ after ‘‘FUNDING’’; and is amended— ‘‘(2) AUTHORIZED ACTIVITIES.—In carrying (C) by adding at the end the following: (1) by redesignating paragraphs (13) and out this subsection, the Secretary may— ‘‘(3) FISCAL YEARS 2013 THROUGH 2017.— (14) as paragraphs (14) and (15) respectively; ‘‘(A) conduct consumer education and out- There is authorized to be appropriated to and reach (including consumer and awareness carry out this section $2,000,000 for each of (2) by inserting after paragraph (12) the fol- surveys); fiscal years 2013 through 2017. lowing: ‘‘(B) conduct outreach to and support for ‘‘(4) MANDATORY FUNDING FOR FISCAL YEARS ‘‘(13) RENEWABLE CHEMICAL.—The term ‘re- State and local governments interested in 2013 THROUGH 2017.—Of the funds of the Com- newable chemical’ means a monomer, poly- implementing biobased purchasing pro- modity Credit Corporation, the Secretary mer, plastic, formulated product, or chem- grams; shall use to carry out this section $3,000,000 ical substance produced from renewable bio- ‘‘(C) partner with industry and nonprofit for each of fiscal years 2013 through 2017.’’. (b) CONFORMING AMENDMENT.—Section mass.’’. groups to produce educational and outreach 944(c)(2)(A) of the Energy Policy Act of 2005 materials and conduct educational and out- SEC. 9002. BIOBASED MARKETS PROGRAM. (42 U.S.C. 16253(c)(2)(A)) is amended by strik- reach events; (a) IN GENERAL.—Section 9002 of the Farm ing ‘‘section 9002(h)(1)’’ and inserting ‘‘sec- ‘‘(D) sponsor special conferences and Security and Rural Investment Act of 2002 (7 tion 9002(b)’’. U.S.C. 8102) is amended— events to bring together buyers and sellers of biobased products; and SEC. 9003. BIOREFINERY, RENEWABLE CHEM- (1) in subsection (a)— ICAL, AND BIOBASED PRODUCT (A) in paragraph (2)(A)(i)— ‘‘(E) support pilot and demonstration MANUFACTURING ASSISTANCE. (i) in subclause (I), by striking ‘‘and’’ at projects.’’; (a) PROGRAM ADJUSTMENTS.— the end; (5) in subsection (h) (as redesignated by (1) IN GENERAL.—Section 9003 of the Farm (ii) in subclause (II)(bb), by striking the pe- paragraph (3))— Security and Rural Investment Act of 2002 (7 riod at the end and inserting ‘‘; and’’; and (A) in paragraph (2)— U.S.C. 8103) is amended— (iii) by adding at the end the following: (i) in the matter preceding subparagraph (A) in the section heading, by inserting ‘‘, ‘‘(III) establish a targeted biobased-only (A) by striking ‘‘The report’’ and inserting RENEWABLE CHEMICAL, AND BIOBASED procurement requirement under which the ‘‘Each report under paragraph (1)’’; PRODUCT MANUFACTURING’’ after ‘‘BIO- procuring agency shall issue a certain num- (ii) in subparagraph (A), by striking ‘‘and’’ REFINERY’’; ber of biobased-only contracts when the pro- at the end; (B) in subsection (a), in the matter pre- curing agency is purchasing products, or pur- (iii) in subparagraph (B)(ii), by striking the ceding paragraph (1), by inserting ‘‘renew- chasing services that include the use of prod- period at the end and inserting a semicolon; able chemicals, and biobased product manu- ucts, that are included in a biobased product and facturing’’ after ‘‘advanced biofuels,’’; category designated by the Secretary.’’; and (iv) by adding at the end the following: (C) in subsection (b)— (B) in paragraph (3)— ‘‘(C) the progress made by other Federal (i) by redesignating paragraphs (1) and (2) (i) in subparagraph (B)— agencies in compliance with the biobased as paragraphs (2) and (3), respectively; and (I) in clause (v), by inserting ‘‘as deter- procurement requirements, including the (ii) by inserting before paragraph (2) (as so mined to be necessary by the Secretary quantity of purchases made; and redesignated) the following: based on the availability of data,’’ before ‘‘(D) the status of outreach, educational, ‘‘(1) BIOBASED PRODUCT MANUFACTURING.— ‘‘provide information’’; and promotional activities carried out by the The term ‘biobased product manufacturing’ (II) by redesignating clauses (v) and (vi) as Secretary under subsection (d), including the means development, construction, and retro- clauses (vii) and (viii), respectively; and attainment of specific milestones and overall fitting of technologically new commercial- (III) by inserting after clause (iv) the fol- results.’’; and scale processing and manufacturing equip- lowing: (B) by adding at the end the following: ment and required facilities that will be used ‘‘(v) require reporting of quantities and ‘‘(3) ECONOMIC IMPACT STUDY AND REPORT.— to convert renewable chemicals and other types of biobased products purchased by pro- ‘‘(A) IN GENERAL.—The Secretary shall con- biobased outputs of biorefineries into end- curing agencies; duct a study to assess the economic impact user products on a commercial scale.’’; and ‘‘(vi) focus on products that apply an inno- of the biobased products industry, includ- (D) in subsection (c)— vative approach to growing, harvesting, pro- ing— (i) in paragraph (1), by striking ‘‘and’’ at curing, processing, or manufacturing ‘‘(i) the quantity of biobased products sold; the end; biobased products regardless of the date of ‘‘(ii) the value of the biobased products; (ii) in paragraph (2), by striking the period entry of the products into the market- ‘‘(iii) the quantity of jobs created; at the end and inserting ‘‘; and’’; and place;’’; and ‘‘(iv) the quantity of petroleum displaced; (iii) by adding at the end the following: (ii) by adding at the end the following: ‘‘(v) other environmental benefits; and ‘‘(3) grants and loan guarantees to fund the ‘‘(F) REQUIRED DESIGNATIONS.—Not later ‘‘(vi) areas in which the use or manufac- development and construction of renewable than 1 year after the date of enactment of turing of biobased products could be more ef- chemical and biobased product manufac- this subparagraph, the Secretary shall begin fectively used, including identifying any turing facilities.’’. to designate intermediate ingredients or technical and economic obstacles and recom- (2) EFFECTIVE DATE.—The amendments feedstocks and assembled and finished mending how those obstacles can be over- made by paragraph (1) shall take effect on biobased products in the guidelines issued come. October 1, 2012. under this paragraph.’’; ‘‘(B) REPORT.—Not later than 180 days after (b) FUNDING.—Section 9003(h) of the Farm (2) in subsection (b)— the date of enactment of this subparagraph, Security and Rural Investment Act of 2002 (7 (A) in paragraph (3)— the Secretary shall submit to Congress a re- U.S.C. 8103(h)) is amended— (i) by striking ‘‘The Secretary’’ and insert- port describing the results of the study con- (1) by striking paragraph (1) and inserting ing the following: ducted under subparagraph (A).’’. the following: ‘‘(A) IN GENERAL.—The Secretary’’; and (6) by inserting after subsection (g) (as re- ‘‘(1) MANDATORY FUNDING.— (ii) by adding at the end the following: designated by paragraph (3)) the following: ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(B) AUDITING AND COMPLIANCE.—The Sec- ‘‘(h) FOREST PRODUCTS LABORATORY CO- (B), of the funds of the Commodity Credit retary may carry out such auditing and com- ORDINATION.—In determining whether prod- Corporation, the Secretary shall use for the pliance activities as the Secretary deter- ucts are eligible for the ‘USDA Certified cost of loan guarantees under this section, to mines to be necessary to ensure compliance Biobased Product’ label, the Secretary (act- remain available until expended— with subparagraph (A).’’; and ing through the Forest Products Laboratory) ‘‘(i) $100,000,000 for fiscal year 2013; and (B) by adding at the end the following: shall— ‘‘(ii) $58,000,000 for each of fiscal years 2014 ‘‘(4) ASSEMBLED AND FINISHED PRODUCTS.— ‘‘(1) review and approve forest-related and 2015. Not later than 1 year after the date of enact- products for which an application is sub- ‘‘(B) BIOBASED PRODUCT MANUFACTURING.— ment of this paragraph, the Secretary shall mitted for the program; Of the total amount of funds made available

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00146 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4579 for the period of fiscal years 2013 through (ii) by striking paragraph (3); SEC. 9009. FEEDSTOCK FLEXIBILITY PROGRAM 2015 under subparagraph (A), the Secretary (iii) by redesignating paragraph (4) as para- FOR BIOENERGY PRODUCERS. use for the cost of loan guarantees under this graph (3); Section 9010(b) of the Farm Security and section not more than $25,000,000 to promote (iv) in paragraph (3) (as so redesignated), Rural Investment Act of 2002 (7 U.S.C. biobased product manufacturing.’’; and by striking subparagraph (A) and inserting 8110(b)) is amended— (2) in paragraph (2), by striking ‘‘2012’’ and the following: (1) in paragraph (1)(A), by striking ‘‘2012’’ and inserting ‘‘2017’’; and inserting ‘‘2017’’. ‘‘(A) GRANTS.—The amount of a grant (2) in paragraph (2)(A), by striking ‘‘2012’’ SEC. 9004. REPEAL OF REPOWERING ASSISTANCE under this subsection shall not exceed the PROGRAM AND TRANSFER OF RE- lesser of— and inserting ‘‘2017’’. MAINING FUNDS. ‘‘(i) $500,000; and SEC. 9010. BIOMASS CROP ASSISTANCE PRO- GRAM. (a) REPEAL.—Subject to subsection (b), sec- ‘‘(ii) 25 percent of the cost of the activity tion 9004 of the Farm Security and Rural In- Section 9011 of the Farm Security and carried out using funds from the grant.’’; and Rural Investment Act of 2002 (7 U.S.C. 8111) vestment Act of 2002 (7 U.S.C. 8104) is re- (v) by adding at the end the following: pealed. is amended to read as follows: ‘‘(4) TIERED APPLICATION PROCESS.— (b) USE OF REMAINING FUNDING FOR RURAL ‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PRO- ‘‘(A) IN GENERAL.—In providing loan guar- ENERGY FOR AMERICA PROGRAM.—Funds GRAM. made available pursuant to subsection (d) of antees and grants under this subsection, the ‘‘(a) DEFINITIONS.—In this section: section 9004 of the Farm Security and Rural Secretary shall use a 3-tiered application ‘‘(1) BCAP.—The term ‘BCAP’ means the Investment Act of 2002 (7 U.S.C. 8104) that process that reflects the size of proposed Biomass Crop Assistance Program estab- are unobligated on the day before the date of projects in accordance with this paragraph. lished under this section. enactment of this section shall— ‘‘(B) TIER 1.—The Secretary shall establish ‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP (1) remain available until expended; a separate application process for projects project area’ means an area that— (2) be used by the Secretary of Agriculture for which the cost of the activity funded ‘‘(A) has specified boundaries that are sub- to carry out financial assistance for energy under this subsection is not more than mitted to the Secretary by the project spon- efficiency improvements and renewable en- $80,000. sor and subsequently approved by the Sec- ergy systems under section 9007(a)(2) of the ‘‘(C) TIER 2.—The Secretary shall establish retary; Farm Security and Rural Investment Act of a separate application process for projects ‘‘(B) includes producers with contract acre- 2002 (7 U.S.C. 8107(a)(2)); and for which the cost of the activity funded age that will supply a portion of the renew- (3) be in addition to any other funds made under this subsection is greater than $80,000 able biomass needed by a biomass conversion available to carry out that program. but less than $200,000. facility; and SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED ‘‘(D) TIER 3.—The Secretary shall establish ‘‘(C) is physically located within an eco- BIOFUELS. a separate application process for projects nomically practicable distance from the bio- Section 9005(g) of the Farm Security and for which the cost of the activity funded mass conversion facility. Rural Investment Act of 2002 (7 U.S.C. under this subsection is equal to or greater ‘‘(3) CONTRACT ACREAGE.—The term ‘con- 8105(g)) is amended— than $200,000. tract acreage’ means eligible land that is (1) in the heading of paragraph (1), by in- ‘‘(E) APPLICATION PROCESS.—The Secretary covered by a BCAP contract entered into serting ‘‘FOR FISCAL YEARS 2009 THROUGH shall establish an application, evaluation, with the Secretary. 2012’’ after ‘‘FUNDING’’; and oversight process that is the most sim- ‘‘(4) ELIGIBLE CROP.— (2) in the heading of paragraph (2), by in- plified for tier I projects and more com- ‘‘(A) IN GENERAL.—The term ‘eligible crop’ serting ‘‘FOR FISCAL YEARS 2009 THROUGH prehensive for each subsequent tier.’’. means a crop of renewable biomass. 2012’’ after ‘‘FUNDING’’; (2) EFFECTIVE DATE.—The amendments ‘‘(B) EXCLUSIONS.—The term ‘eligible crop’ (3) by redesignating paragraph (3) as para- made by paragraph (1) shall take effect on does not include— graph (4); and October 1, 2012. ‘‘(i) any crop that is eligible to receive pay- (4) by inserting after paragraph (2) the fol- ments under title I of the Food, Conserva- (b) FUNDING.—Section 9007(g) of the Farm lowing: tion, and Energy Act of 2008 (7 U.S.C. 8702 et Security and Rural Investment Act of 2002 (7 ‘‘(3) FISCAL YEARS 2013 THROUGH 2017.— seq.) or an amendment made by that title; There is authorized to be appropriated to U.S.C. 8107(g)) is amended— ‘‘(ii) any plant that is invasive or noxious carry out this section $20,000,000 for each of (1) in the heading of paragraph (1), by in- or species or varieties of plants that credible fiscal years 2013 through 2017.’’. serting ‘‘FOR FISCAL YEARS 2009 THROUGH risk assessment tools or other credible SEC. 9006. BIODIESEL FUEL EDUCATION PRO- 2012’’ after ‘‘FUNDING’’; sources determine are potentially invasive, GRAM. (2) in the heading of paragraph (2), by in- as determined by the Secretary in consulta- Section 9006(d) of the Farm Security and serting ‘‘FOR FISCAL YEARS 2009 THROUGH tion with other appropriate Federal or State Rural Investment Act of 2002 (7 U.S.C. 2012’’ after ‘‘FUNDING’’; departments and agencies; or 8106(d)) is amended— (3) in the heading of paragraph (3), by in- ‘‘(iii) algae. (1) by striking ‘‘(d) FUNDING.—Of the serting ‘‘FOR FISCAL YEARS 2009 THROUGH ‘‘(5) ELIGIBLE LAND.— funds’’ and inserting ‘‘(d) FUNDING.— 2012’’ after ‘‘FUNDING’’; and ‘‘(A) IN GENERAL.—The term ‘eligible land’ ‘‘(1) FISCAL YEARS 2008 THROUGH 2012.—Of (4) by adding at the end the following: includes— the funds’’; and ‘‘(4) FISCAL YEARS 2013 THROUGH 2017.— ‘‘(i) agricultural and nonindustrial private (2) by adding at the end the following: There is authorized to be appropriated to forest lands (as defined in section 5(c) of the ‘‘(2) FISCAL YEARS 2013 THROUGH 2017.— carry out this section $20,000,000 for each of Cooperative Forestry Assistance Act of 1978 There is authorized to be appropriated to fiscal years 2013 through 2017. (16 U.S.C. 2103a(c))); and carry out this section $1,000,000 for each of ‘‘(5) MANDATORY FUNDING FOR FISCAL YEARS ‘‘(ii) land enrolled in the agricultural con- fiscal years 2013 through 2017. 2013 THROUGH 2017.—Of the funds of the Com- servation easement program established ‘‘(3) MANDATORY FUNDING FOR FISCAL YEARS modity Credit Corporation, the Secretary under subtitle H of title XII of the Food Se- 2013 THROUGH 2017.—Of the funds of the Com- shall use to carry out this section $48,200,000 curity Act of 1985. modity Credit Corporation, the Secretary for each of fiscal years 2013 through 2017.’’. ‘‘(B) EXCLUSIONS.—The term ‘eligible land’ does not include— shall use to carry out this section $1,000,000 SEC. 9008. BIOMASS RESEARCH AND DEVELOP- for each of fiscal years 2013 through 2017.’’. MENT. ‘‘(i) Federal- or State-owned land; SEC. 9007. RURAL ENERGY FOR AMERICA PRO- ‘‘(ii) land that is native sod, as of the date GRAM. Section 9008(h) of the Farm Security and of enactment of the Food, Conservation, and (a) PROGRAM ADJUSTMENTS.— Rural Investment Act of 2002 (7 U.S.C. Energy Act of 2008 (7 U.S.C. 8701 et seq.); (1) IN GENERAL.—Section 9007 of the Farm 8108(h)) is amended— ‘‘(iii) land enrolled in the conservation re- Security and Rural Investment Act of 2002 (7 (1) in the heading of paragraph (1), by in- serve program established under subchapter U.S.C. 8107) is amended— serting ‘‘FOR FISCAL YEARS 2009 THROUGH B of chapter 1 of subtitle D of title XII of the (A) in subsection (b)(2)— 2012’’ after ‘‘FUNDING’’; Food Security Act of 1985 (16 U.S.C. 3831 et (i) in subparagraph (C), by striking ‘‘and’’ (2) in the heading of paragraph (2), by in- seq.); at the end; serting ‘‘FOR FISCAL YEARS 2009 THROUGH ‘‘(iv) land enrolled in the Agricultural Con- (ii) by redesignating subparagraph (D) as 2012’’ after ‘‘FUNDING’’; and servation Easement Program established subparagraph (E); and (3) by adding at the end the following: under subtitle H of title XII of that Act; or (iii) by inserting after subparagraph (C) the ‘‘(3) FISCAL YEARS 2013 THROUGH 2017.— ‘‘(v) land enrolled in the conservation re- following: There is authorized to be appropriated to serve program or the Agricultural Conserva- ‘‘(D) a council (as defined in section 1528 of carry out this section $30,000,000 for each of tion Easement Program under a contract the Agriculture and Food Act of 1981 (16 fiscal years 2013 through 2017. that will expire at the end of the current fis- U.S.C. 3451)); and’’; and ‘‘(4) MANDATORY FUNDING FOR FISCAL YEARS cal year. (B) in subsection (c)— 2013 THROUGH 2017.—Of the funds of the Com- ‘‘(6) ELIGIBLE MATERIAL.— (i) in paragraph (1)(A), by inserting ‘‘, such modity Credit Corporation, the Secretary ‘‘(A) IN GENERAL.—The term ‘eligible mate- as for agricultural and associated residential shall use to carry out this section $26,000,000 rial’ means renewable biomass harvested di- purposes’’ after ‘‘electricity’’; for each of fiscal years 2013 through 2017.’’. rectly from the land, including crop residue

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from any crop that is eligible to receive pay- the term in section 2501(e) of the Food, Agri- ‘‘(B) MINIMUM TERMS.—At a minimum, a ments under title I of the Agriculture Re- culture, Conservation, and Trade Act of 1990 contract under this subsection shall include form, Food, and Jobs Act of 2012 or an (7 U.S.C. 2279(e)). terms that cover— amendment made by that title. ‘‘(b) ESTABLISHMENT AND PURPOSE.—The ‘‘(i) an agreement to make available to the ‘‘(B) INCLUSIONS.—The term ‘eligible mate- Secretary shall establish and administer a Secretary, or to an institution of higher edu- rial’ shall only include— Biomass Crop Assistance Program to— cation or other entity designated by the Sec- ‘‘(i) eligible material that is collected or ‘‘(1) support the establishment and produc- retary, such information as the Secretary harvested by the eligible material owner— tion of eligible crops for conversion to bio- considers to be appropriate to promote the ‘‘(I) directly from— energy in selected BCAP project areas; and production of eligible crops and the develop- ‘‘(aa) National Forest System; ‘‘(2) assist agricultural and forest land ment of biomass conversion technology; ‘‘(bb) Bureau of Land Management land; owners and operators with the collection, ‘‘(ii) compliance with the highly erodible ‘‘(cc) non-Federal land; or harvest, storage, and transportation of eligi- land conservation requirements of subtitle B ‘‘(dd) land owned by an individual Indian ble material for use in a biomass conversion of title XII of the Food Security Act of 1985 or Indian tribe that is held in trust by the facility. (16 U.S.C. 3811 et seq.) and the wetland con- United States for the benefit of the indi- servation requirements of subtitle C of title ‘‘(c) BCAP PROJECT AREA.— vidual Indian or Indian tribe or subject to a XII of that Act (16 U.S.C. 3821 et seq.); ‘‘(1) IN GENERAL.—The Secretary shall pro- restriction against alienation imposed by the ‘‘(iii) the implementation of (as deter- vide financial assistance to a producer of an United States; mined by the Secretary)— eligible crop in a BCAP project area. ‘‘(II) in a manner that is consistent with— ‘‘(I) a conservation plan; ‘‘(2) SELECTION OF PROJECT AREAS.— ‘‘(aa) a conservation plan; ‘‘(II) a forest stewardship plan; or ‘‘(A) IN GENERAL.—To be considered for se- ‘‘(bb) a forest stewardship plan; or ‘‘(III) a plan that is equivalent to a con- lection as a BCAP project area, a project ‘‘(cc) a plan that the Secretary determines servation or forest stewardship plan; and sponsor shall submit to the Secretary a pro- is equivalent to a plan described in item (aa) ‘‘(iv) any additional requirements that posal that, at a minimum, includes— or (bb) and consistent with Executive Order Secretary determines to be necessary. ‘‘(i) a description of the eligible land and 13112 (42 U.S.C. 4321 note; relating to invasive ‘‘(C) DURATION.—A contract under this sub- eligible crops of each producer that will par- species); section shall have a term of not more than— ‘‘(ii) if woody eligible material, woody eli- ticipate in the proposed BCAP project area; ‘‘(i) 5 years for annual and perennial crops; gible material that is produced on land other ‘‘(ii) a letter of commitment from a bio- or than contract acreage that— mass conversion facility that the facility ‘‘(ii) 15 years for woody biomass. will use the eligible crops intended to be pro- ‘‘(I) is a byproduct of a preventative treat- ‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In ment that is removed to reduce hazardous duced in the proposed BCAP project area; carrying out this subsection, the Secretary fuel or to reduce or contain disease or insect ‘‘(iii) evidence that the biomass conversion shall provide for the preservation of cropland infestation; and facility has sufficient equity available, as de- base and yield history applicable to the land ‘‘(II) if harvested from Federal land, is har- termined by the Secretary, if the biomass enrolled in a BCAP contract. vested in accordance with section 102(e) of conversion facility is not operational at the ‘‘(5) PAYMENTS.— the Healthy Forests Restoration Act of 2003 time the proposal is submitted to the Sec- ‘‘(A) IN GENERAL.—The Secretary shall (16 U.S.C. 6512(e)); and retary; and make establishment and annual payments ‘‘(iii) eligible material that is delivered to ‘‘(iv) any other information about the bio- directly to producers to support the estab- a qualified biomass conversion facility to be mass conversion facility or proposed biomass lishment and production of eligible crops on used for heat, power, biobased products, re- conversion facility that the Secretary deter- contract acreage. search, or advanced biofuels. mines necessary for the Secretary to be rea- ‘‘(B) AMOUNT OF ESTABLISHMENT PAY- ‘‘(C) EXCLUSIONS.—The term ‘eligible mate- sonably assured that the plant will be in op- MENTS.— rial’ does not include— eration by the date on which the eligible ‘‘(i) IN GENERAL.—Subject to clause (ii), the ‘‘(i) material that is whole grain from any crops are ready for harvest. amount of an establishment payment under crop that is eligible to receive payments ‘‘(B) BCAP PROJECT AREA SELECTION CRI- this subsection shall be not more than 50 under title I of the Agriculture Reform, TERIA.—In selecting BCAP project areas, the percent of the costs of establishing an eligi- Food, and Jobs Act of 2012 or an amendment Secretary shall consider— ble perennial crop covered by the contract made by that title, including— ‘‘(i) the volume of the eligible crops pro- but not to exceed $500 per acre, including— ‘‘(I) barley, corn, grain sorghum, oats, rice, posed to be produced in the proposed BCAP ‘‘(I) the cost of seeds and stock for or wheat; project area and the probability that those perennials; ‘‘(II) honey; crops will be used for the purposes of the ‘‘(II) the cost of planting the perennial ‘‘(III) mohair; BCAP; crop, as determined by the Secretary; and ‘‘(IV) oilseeds, including canola, crambe, ‘‘(ii) the volume of renewable biomass pro- ‘‘(III) in the case of nonindustrial private flaxseed, mustard seed, rapeseed, safflower jected to be available from sources other forestland, the costs of site preparation and seed, soybeans, sesame seed, and sunflower than the eligible crops grown on contract tree planting. seed; acres; ‘‘(ii) SOCIALLY DISADVANTAGED FARMERS OR ‘‘(V) peanuts; ‘‘(iii) the anticipated economic impact in RANCHERS.—In the case of socially disadvan- ‘‘(VI) pulse; the proposed BCAP project area; taged farmers or ranchers, the costs of estab- ‘‘(VII) chickpeas, lentils, and dry peas; ‘‘(iv) the opportunity for producers and lishment may not exceed $750 per acre. ‘‘(VIII) dairy products; local investors to participate in the owner- ‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— ‘‘(IX) sugar; and ship of the biomass conversion facility in the ‘‘(i) IN GENERAL.—Subject to clause (ii), the ‘‘(X) wool and cotton boll fiber; proposed BCAP project area; amount of an annual payment under this ‘‘(ii) animal waste and byproducts, includ- ‘‘(v) the participation rate by— subsection shall be determined by the Sec- ing fat, oil, grease, and manure; ‘‘(I) beginning farmers or ranchers (as de- retary. ‘‘(iii) food waste and yard waste; fined in accordance with section 343(a) of the ‘‘(ii) REDUCTION.—The Secretary shall re- ‘‘(iv) algae; Consolidated Farm and Rural Development duce an annual payment by an amount de- ‘‘(v) woody eligible material that— Act (7 U.S.C. 1991(a))); or termined to be appropriate by the Secretary, ‘‘(I) is removed outside contract acreage; ‘‘(II) socially disadvantaged farmers or if— and ranchers; ‘‘(I) an eligible crop is used for purposes ‘‘(II) is not a byproduct of a preventative ‘‘(vi) the impact on soil, water, and related other than the production of energy at the treatment to reduce hazardous fuel or to re- resources; biomass conversion facility; duce or contain disease or insect infestation; ‘‘(vii) the variety in biomass production ‘‘(II) an eligible crop is delivered to the ‘‘(vi) any woody eligible material collected approaches within a project area, including biomass conversion facility; or harvested outside contract acreage that (as appropriate)— ‘‘(III) the producer receives a payment would otherwise be used for existing market ‘‘(I) agronomic conditions; under subsection (d); products; or ‘‘(II) harvest and postharvest practices; ‘‘(IV) the producer violates a term of the ‘‘(vii) bagasse. and contract; or ‘‘(7) PRODUCER.—The term ‘producer’ ‘‘(III) monoculture and polyculture crop ‘‘(V) the Secretary determines a reduction means an owner or operator of contract acre- mixes; is necessary to carry out this section. age that is physically located within a BCAP ‘‘(viii) the range of eligible crops among ‘‘(D) EXCLUSION.—The Secretary shall not project area. project areas; and make any BCAP payments on land for which ‘‘(8) PROJECT SPONSOR.—The term ‘project ‘‘(ix) any additional information that the payments are received under the conserva- sponsor’ means— Secretary determines to be necessary. tion reserve program established under sub- ‘‘(A) a group of producers; or ‘‘(3) CONTRACT.— chapter B of chapter 1 of subtitle D of title ‘‘(B) a biomass conversion facility. ‘‘(A) IN GENERAL.—On approval of a BCAP XII of the Food Security Act of 1985 (16 ‘‘(9) SOCIALLY DISADVANTAGED FARMER OR project area by the Secretary, each producer U.S.C. 3831 et seq.) or the agricultural con- RANCHER.—The term ‘socially disadvantaged in the BCAP project area shall enter into a servation easement program established farmer or rancher’ has the meaning given contract directly with the Secretary. under subtitle H of title XII of that Act.

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‘‘(d) ASSISTANCE WITH COLLECTION, HAR- (3) by adding at the end the following: ‘‘(B) local and regional food enterprises VEST, STORAGE, AND TRANSPORTATION.— ‘‘(C) grants of up to $50,000 to biomass con- that are not direct producer-to-consumer ‘‘(1) IN GENERAL.—The Secretary shall sumer cooperatives for the purpose of estab- markets but process, distribute, aggregate, make a payment for the delivery of eligible lishing or expanding biomass consumer co- store, and market locally or regionally pro- material to a biomass conversion facility operatives that will provide consumers with duced food products.’’; to— services or discounts relating to— (4) in subsection (c)(1)— ‘‘(A) a producer of an eligible crop that is ‘‘(i) the purchase of biomass heating sys- (A) by inserting ‘‘or other business entity’’ produced on BCAP contract acreage; or tems; after ‘‘cooperative’’; and ‘‘(B) a person with the right to collect or ‘‘(ii) biomass heating products, including (B) by inserting ‘‘, including a community harvest eligible material, regardless of wood chips, wood pellets, and advanced supported agriculture network or associa- whether the eligible material is produced on biofuels; or tion’’ after ‘‘association’’; contract acreage. ‘‘(iii) the delivery and storage of biomass (5) by redesignating subsection (e) as sub- ‘‘(2) PAYMENTS.— of heating products.’’. section (f); ‘‘(A) COSTS COVERED.—A payment under (c) MATCHING FUNDS.—Section 9013(d) of (6) by inserting after subsection (d) the fol- this subsection shall be in an amount de- the Farm Security and Rural Investment lowing: scribed in subparagraph (B) for— Act of 2002 (7 U.S.C. 8113(d)) is amended— ‘‘(e) PRIORITIES.—In providing grants under ‘‘(i) collection; (1) by striking ‘‘A State or local govern- the Program, priority shall be given to appli- ‘‘(ii) harvest; ment that receives a grant under subsection cations that include projects that— ‘‘(iii) storage; and (b)’’ and inserting the following: ‘‘(1) benefit underserved communities; ‘‘(iv) transportation to a biomass conver- ‘‘(1) STATE AND LOCAL GOVERNMENTS.—A ‘‘(2) develop market opportunities for sion facility. State or local government that receives a small and mid-sized farm and ranch oper- ‘‘(B) AMOUNT.—Subject to paragraph (3), grant under subparagraph (A) or (B) of sub- ations; and the Secretary may provide matching pay- section (b)(1)’’; and ‘‘(3) include a strategic plan to maximize ments at a rate of up to $1 for each $1 per ton (2) by adding at the end the following: the use of funds to build capacity for local provided by the biomass conversion facility, ‘‘(2) BIOMASS CONSUMER COOPERATIVES.—A and regional food systems in a community.’’; in an amount not to exceed $20 per dry ton biomass consumer cooperative that receives (7) in subsection (f) (as redesignated by for a period of 4 years. a grant under subsection (b)(1)(C) shall con- paragraph (5))— ‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP tribute an amount of non-Federal funds (A) in paragraph (1)— CONTRACT ACREAGE.—As a condition of the (which may include State, local, and non- (i) in subparagraph (B), by striking ‘‘and’’ receipt of an annual payment under sub- profit funds and membership dues) toward after the semicolon at the end; section (c), a producer receiving a payment the establishment or expansion of a biomass (ii) in subparagraph (C), by striking the pe- under this subsection for collection, harvest, consumer cooperative that is at least equal riod at the end and inserting ‘‘; and’’; and storage, or transportation of an eligible crop to 50 percent of the amount of Federal funds (iii) by adding at the end the following: produced on BCAP acreage shall agree to a received for that purpose.’’. ‘‘(D) $20,000,000 for each of fiscal years 2013 reduction in the annual payment. (d) AUTHORIZATION OF APPROPRIATIONS.— through 2017.’’; ‘‘(e) REPORT.—Not later than 4 years after Section 9013(e) of the Farm Security and (B) by striking paragraphs (2) and (4); the date of enactment of the Agriculture Re- Rural Investment Act of 2002 (7 U.S.C. (C) by redesignating paragraph (3) as para- form, Food, and Jobs Act of 2012, the Sec- 8113(e)) is amended by inserting before the graph (4); retary shall submit to the Committee on Ag- period at the end ‘‘and $5,000,000 for each of (D) by inserting after paragraph (1) the fol- riculture of the House of Representatives fiscal years 2013 through 2017’’. lowing: and the Committee on Agriculture, Nutri- SEC. 9013. REPEAL OF RENEWABLE FERTILIZER ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In tion, and Forestry of the Senate a report on STUDY. addition to funds made available under para- the dissemination by the Secretary of the Section 9003 of the Food, Conservation, and best practice data and information gathered graph (1), there is authorized to be appro- Energy Act of 2008 (Public Law 110–246; 122 priated to carry out this section $20,000,000 from participants receiving assistance under Stat. 2096) is repealed. this section. for each of fiscal years 2013 through 2017. TITLE X—HORTICULTURE ‘‘(f) FUNDING.— ‘‘(3) USE OF FUNDS.— ‘‘(1) IN GENERAL.—Of the funds of the Com- SEC. 10001. SPECIALTY CROPS MARKET NEWS AL- ‘‘(A) IN GENERAL.—Of the funds made avail- modity Credit Corporation, the Secretary LOCATION. able to carry out the Program for each fiscal shall use to carry out this section $38,600,000 Section 10107(b) of the Food, Conservation, year, 50 percent shall be used for the pur- for each of fiscal years 2013 through 2017. and Energy Act of 2008 (7 U.S.C. 1622b(b)) is poses described in subsection (b)(1)(A) and 50 ‘‘(2) COLLECTION, HARVEST, STORAGE, AND amended by striking ‘‘2012’’ and inserting percent shall be used for the purposes de- TRANSPORTATION PAYMENTS.—Of the amount ‘‘2017’’. scribed in subsection (b)(1)(B). made available under paragraph (1) for each SEC. 10002. REPEAL OF GRANT PROGRAM TO IM- ‘‘(B) COST SHARE.—To be eligible to receive fiscal year, the Secretary shall use not less PROVE MOVEMENT OF SPECIALTY a grant for a project described in subsection than 10 percent, nor more than 50 percent, of CROPS. (b)(1)(B), a recipient shall provide a match in the amount to make collection, harvest, Section 10403 of the Food, Conservation, the form of cash or in-kind contributions in transportation, and storage payments under and Energy Act of 2008 (7 U.S.C. 1622c) is re- an amount equal to 25 percent of the total subsection (d)(2).’’. pealed. cost of the project.’’; and SEC. 9011. REPEAL OF FOREST BIOMASS FOR EN- SEC. 10003. FARMERS MARKET AND LOCAL FOOD (E) by adding at the end the following: ERGY. PROMOTION PROGRAM. ‘‘(5) ADMINISTRATIVE EXPENSES.—Not more Section 9012 of the Farm Security and Section 6 of the Farmer-to-Consumer Di- than 10 percent of the total amount made Rural Investment Act of 2002 (7 U.S.C. 8112) rect Marketing Act of 1976 (7 U.S.C. 3005) is available to carry out this section for a fis- is repealed. amended— cal year may be used for administrative ex- SEC. 9012. COMMUNITY WOOD ENERGY PRO- (1) in the section heading, by adding ‘‘AND penses. GRAM. LOCAL FOOD’’ after ‘‘MARKET’’; ‘‘(6) LIMITATIONS.—An eligible entity may (a) DEFINITION OF BIOMASS CONSUMER COOP- (2) in subsection (a)— not use a grant or other assistance provided ERATIVE.—Section 9013(a) of the Farm Secu- (A) by inserting ‘‘and Local Food’’ after under the Program for the purchase, con- rity and Rural Investment Act of 2002 (7 ‘‘Market’’; struction, or rehabilitation of a building or U.S.C. 8113(a)) is amended— (B) by striking ‘‘farmers’ markets and to structure.’’. promote’’; and (1) by redesignating paragraphs (1) and (2) SEC. 10004. STUDY ON LOCAL FOOD PRODUCTION as paragraphs (2) and (3), respectively; and (C) by inserting ‘‘and local food capacity AND PROGRAM EVALUATION. (2) by inserting before paragraph (2) (as so development’’ before the period at the end; redesignated) the following: (3) in subsection (b), by striking paragraph (a) IN GENERAL.—The Secretary shall— (1) collect data on the production and mar- ‘‘(1) BIOMASS CONSUMER COOPERATIVE.—The (1) and inserting the following: term ‘biomass consumer cooperative’ means ‘‘(1) IN GENERAL.—The purposes of the Pro- keting of locally or regionally produced agri- a consumer membership organization the gram are to increase domestic consumption cultural food products; purpose of which is to provide members with of and access to locally and regionally pro- (2) facilitate interagency collaboration and services or discounts relating to the pur- duced agricultural products by developing, data sharing on programs related to local chase of biomass heating products or bio- improving, expanding, and providing out- and regional food systems; and mass heating systems.’’. reach, training, and technical assistance to, (3) monitor the effectiveness of programs (b) GRANT PROGRAM.—Section 9013(b)(1) of or assisting in the development, improve- designed to expand or facilitate local food the Farm Security and Rural Investment ment and expansion of— systems. Act of 2002 (7 U.S.C. 8113(b)(1)) is amended— ‘‘(A) domestic farmers’ markets, roadside (b) REQUIREMENTS.—In carrying out this (1) in subparagraph (A), by striking ‘‘and’’ stands, community-supported agriculture section, the Secretary shall, at a minimum— after the semicolon at the end; programs, agritourism activities, and other (1) collect and distribute comprehensive re- (2) in subparagraph (B), by striking the pe- direct producer-to-consumer market oppor- porting of prices of locally or regionally pro- riod at the end and inserting ‘‘; and’’; and tunities; and duced agricultural food products;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00149 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4582 CONGRESSIONAL RECORD — SENATE June 25, 2012 (2) conduct surveys and analysis and pub- (i) by striking ‘‘paragraph (1)’’ and insert- ‘‘(A) consult with— lish reports relating to the production, han- ing ‘‘paragraphs (1) and (2)’’; and ‘‘(i) State departments of agriculture; and dling, distribution, retail sales, and trend (ii) by striking ‘‘2012’’ and inserting ‘‘2017’’. ‘‘(ii) land-grant colleges and universities studies (including consumer purchasing pat- (b) MODERNIZATION AND TECHNOLOGY UP- and NLGCA Institutions (as those terms are terns) of or on locally or regionally produced GRADE FOR NATIONAL ORGANIC PROGRAM.— defined in section 1404 of the National Agri- agricultural food products; Section 2123 of the Organic Foods Production cultural Research, Extension, and Teaching (3) evaluate the effectiveness of existing Act of 1990 (7 U.S.C. 6522) is amended— Policy Act of 1977 (7 U.S.C. 3103)); and programs in growing local and regional food (1) in subsection (b)— ‘‘(B) to the extent practicable and with systems, including— (A) in paragraph (5), by striking ‘‘and’’ at input from the appropriate State officials (A) the impact of local food systems on job the end; and industry representatives, use existing creation and economic development; (B) by redesignating paragraph (6) as para- Federal or State facilities to serve as clean (B) the level of participation in the Farm- graph (7); and plant centers.’’. ers’ Market and Local Food Promotion Pro- (C) by inserting after paragraph (5) the fol- (b) FUNDING.—Subsection (f) of section 420 gram established under section 6 of the lowing: of the Plant Protection Act (7 U.S.C. 7721) Farmer-to-Consumer Direct Marketing Act ‘‘(6) $15,000,000 for each of fiscal years 2013 (as redesignated by subsection (a)(1)) is of 1976 (7 U.S.C. 3005), including the percent- through 2017; and’’; and amended— age of projects funded in comparison to ap- (2) by adding at the end the following: (1) in paragraph (3), by striking ‘‘and’’ at plicants and the types of eligible entities re- ‘‘(c) MODERNIZATION AND TECHNOLOGY UP- the end; ceiving funds; GRADE FOR NATIONAL ORGANIC PROGRAM.— (2) in paragraph (4), by striking ‘‘and each (C) the ability for participants to leverage ‘‘(1) IN GENERAL.—The Secretary shall mod- fiscal year thereafter.’’ and inserting a semi- private capital and a synopsis of the places ernize database and technology systems of colon; and from which non-Federal funds are derived; the national organic program. (3) by adding at the end the following: and ‘‘(2) FUNDING.—Of the funds of the Com- ‘‘(5) $60,000,000 for each of fiscal years 2013 (D) any additional resources required to modity Credit Corporation and in addition to through 2016; and aid in the development or expansion of local any other funds made available for that pur- ‘‘(6) $65,000,000 for fiscal year 2017 and each and regional food systems; pose, the Secretary shall make available to fiscal year thereafter.’’. (4) expand the Agricultural Resource Man- carry out this subsection $5,000,000 in fiscal (c) REPEAL OF EXISTING PROVISION.—Sec- agement Survey to include questions on lo- year 2013, to remain available until ex- tion 10202 of the Food, Conservation, and En- cally or regionally produced agricultural pended. ergy Act of 2008 (7 U.S.C. 7761) is repealed. food products; and ‘‘(d) REPORT.—Not later than 180 days after (d) CLARIFICATION OF USE OF FUNDS FOR (5) seek to establish or expand private-pub- the date of enactment of this subsection, the TECHNICAL ASSISTANCE.—Section 420 of the lic partnerships to facilitate, to the max- Secretary shall submit to the Committee on Plant Protection Act (7 U.S.C. 7721) (as imum extent practicable, the collection of Agriculture of the House of Representatives amended by subsection (a)) is amended by data on locally or regionally produced agri- and the Committee on Agriculture, Nutri- adding at the end the following: cultural food products, including the devel- tion, and Forestry of the Senate a report ‘‘(g) RELATIONSHIP TO OTHER LAW.—The use opment of a nationally coordinated and re- that— of Commodity Credit Corporation funds gionally balanced evaluation of the redevel- ‘‘(1) describes the efforts of the Secretary under this section to provide technical as- opment of locally or regionally produced to ensure that activities conducted through sistance shall not be considered an allotment food systems. commodity research and promotion pro- or fund transfer from the Commodity Credit (c) REPORT.—Not later than 1 year after grams adequately reflect the priorities of all Corporation for purposes of the limit on ex- the date of enactment of this Act and annu- members of the applicable orders; and penditures for technical assistance imposed ally thereafter, the Secretary shall submit ‘‘(2) includes an assessment of the feasi- by section 11 of the Commodity Credit Cor- to the Committee on Agriculture of the House of Representatives and the Committee bility of establishing an organic research and poration Charter Act (15 U.S.C. 714i).’’. on Agriculture, Nutrition, and Forestry of promotion program, including any current SEC. 10008. SPECIALTY CROP BLOCK GRANTS. the Senate a report describing the progress barriers to establishment and challenges re- Section 101 of the Specialty Crops Com- that has been made in implementing this lated to implementation.’’. petitiveness Act of 2004 (7 U.S.C. 1621 note; section and identifying any additional needs SEC. 10006. FOOD SAFETY EDUCATION INITIA- Public Law 108–465) is amended— related to developing local and regional food TIVES. (1) in subsection (a)— systems. Section 10105(c) of the Food, Conservation, (A) by striking ‘‘subsection (j)’’ and insert- SEC. 10005. ORGANIC AGRICULTURE. and Energy Act of 2008 (7 U.S.C. 7655a(c)) is ing ‘‘subsection (l)’’; and (a) ORGANIC PRODUCTION AND MARKET DATA amended by striking ‘‘2012’’ and inserting (B) by striking ‘‘2012’’ and inserting ‘‘2017’’; INITIATIVES.—Section 7407 of the Farm Secu- ‘‘2017’’. (2) by striking subsection (b) and inserting rity and Rural Investment Act of 2002 (7 SEC. 10007. COORDINATED PLANT MANAGEMENT the following: U.S.C. 5925c) is amended— PROGRAM. ‘‘(b) GRANTS BASED ON VALUE AND ACRE- (1) in subsection (c)— (a) IN GENERAL.—Section 420 of the Plant AGE.—Subject to subsection (c), in the case (A) in the matter preceding paragraph (1), Protection Act (7 U.S.C. 7721) is amended— of each State with an application for a grant by inserting ‘‘and annually thereafter’’ after (1) by striking the section heading and infor a fiscal year that is accepted by the Sec- ‘‘this subsection’’; serting ‘‘COORDINATED PLANT MANAGE- retary of Agriculture under subsection (f), (B) in paragraph (1), by striking ‘‘and’’ at MENT PROGRAM.’’; the amount of a grant for a fiscal year to a the end; (2) by redesignating subsection (e) as sub- State under this section shall bear the same (C) by redesignating paragraph (2) as para- section (f); and ratio to the total amount made available graph (3); and (3) by inserting after subsection (d) the fol- under subsection (l) for that fiscal year as— (D) by inserting after paragraph (1) the following: ‘‘(1) the average of the most recent avail- lowing: ‘‘(e) NATIONAL CLEAN PLANT NETWORK.— able value of specialty crop production in the ‘‘(2) describes how data collection agencies ‘‘(1) IN GENERAL.—The Secretary shall es- State and the acreage of specialty crop pro- (such as the Agricultural Marketing Service tablish a program to be known as the ‘Na- duction in the State, as demonstrated in the and the National Agricultural Statistics tional Clean Plant Network’ (referred to in most recent Census of Agriculture data; Service) are coordinating with data user this subsection as the ‘Program’). bears to agencies (such as the Risk Management ‘‘(2) REQUIREMENTS.—Under the Program, ‘‘(2) the average of the most recent avail- Agency) to ensure that data collected under the Secretary shall establish a network of able value of specialty crop production in all this section can be used by data user agen- clean plant centers for diagnostic and patho- States and the acreage of specialty crop pro- cies, including by the Risk Management gen elimination services— duction in all States, as demonstrated in the Agency to offer price elections for all or- ‘‘(A) to produce clean propagative plant most recent Census of Agriculture data.’’; ganic crops; and’’; and material; and (3) by redesignating subsection (j) as sub- (2) in subsection (d)— ‘‘(B) to maintain blocks of pathogen-tested section (l); (A) by redesignating paragraph (2) as para- plant material in sites located throughout (4) by inserting after subsection (i) the fol- graph (3); the United States. lowing: (B) by inserting after paragraph (1) the fol- ‘‘(3) AVAILABILITY OF CLEAN PLANT SOURCE ‘‘(j) MULTISTATE PROJECTS.— lowing: MATERIAL.—Clean plant source material pro- ‘‘(1) IN GENERAL.—Not later than 180 days ‘‘(2) MANDATORY FUNDING.—In addition to duced or maintained under the Program may after the date of enactment of the Agri- any funds available under paragraph (1), of be made available to— culture Reform, Food, and Jobs Act of 2012, the funds of the Commodity Credit Corpora- ‘‘(A) a State for a certified plant program the Secretary of Agriculture shall issue guid- tion, the Secretary shall use to carry out of the State; and ance for the purpose of making grants to this section $5,000,000, to remain available ‘‘(B) private nurseries and producers. multistate projects under this section for until expended.’’; and ‘‘(4) CONSULTATION AND COLLABORATION.—In projects involving— (C) in paragraph (3) (as redesignated by carrying out the Program, the Secretary ‘‘(A) food safety; subparagraph (A))— shall— ‘‘(B) plant pests and disease;

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00150 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4583 ‘‘(C) crop-specific projects addressing com- ‘‘(B) to determine, with regard to actions, dler, or the accreditation of the certifying mon issues; and practices, or information required under this agent. ‘‘(D) any other area that furthers the pur- title, whether a person covered by this title ‘‘(3) VIOLATION OF ORDER OR REVOCATION.— poses of this section, as determined by the has committed, or will commit, a violation A person who violates an order to stop the Secretary. of any provision of this title, including an sale of a product as an organically produced ‘‘(2) FUNDING.—Of the funds provided under order or regulation promulgated by the Sec- product under paragraph (1), or a revocation subsection (l), the Secretary of Agriculture retary. of certification or accreditation under para- may allocate for grants under this sub- ‘‘(2) INVESTIGATIVE POWERS.—The Secretary graph (2)(B), shall be subject to 1 or more of section, to remain available until expended— may administer oaths and affirmations, sub- the penalties provided in subsections (a) and ‘‘(A) $1,000,000 for fiscal year 2013; poena witnesses, compel attendance of wit- (b) of section 2120. ‘‘(B) $2,000,000 for fiscal year 2014; nesses, take evidence, and require the pro- ‘‘(f) APPEAL.— ‘‘(C) $3,000,000 for fiscal year 2015; duction of any books, papers, and documents ‘‘(1) IN GENERAL.—An order under sub- ‘‘(D) $4,000,000 for fiscal year 2016; and that are relevant to the investigation. section (e)(1), or a revocation of certification or accreditation under subsection (e)(2)(B) ‘‘(E) $5,000,000 for fiscal year 2017. ‘‘(d) UNLAWFUL ACT.—It shall be unlawful ‘‘(k) ADMINISTRATION.— and a violation of this title for any person shall be final and conclusive unless the af- ‘‘(1) DEPARTMENT.—The Secretary of Agri- covered by this title— fected person files an appeal of the order— culture may not use more than 3 percent of ‘‘(1) to fail or refuse to provide, or delay ‘‘(A) first, to the administrative appeals the funds made available to carry out this the timely provision of, accurate informa- process established under section 2121(a); and section for a fiscal year for administrative ‘‘(B) second, if the affected person so tion required by the Secretary under this expenses. elects, to a United States district court as section; ‘‘(2) STATES.—A State receiving a grant provided in section 2121(b) not later than 30 ‘‘(2) to violate— under this section may not use more than 8 days after the date of the determination ‘‘(A) an order of the Secretary; percent of the funds received under the grant under subparagraph (A). ‘‘(B) a suspension or revocation of the or- for a fiscal year for administrative ex- ‘‘(2) STANDARD.—An order under subsection ganic certification of a producer or handler; penses.’’; and (e)(1), or a revocation of certification or ac- or (5) in subsection (l) (as redesignated by creditation under subsection (e)(2)(B), shall ‘‘(C) a suspension or revocation of the ac- paragraph (3))— be set aside only if the order, or the revoca- creditation of a certifying agent; or (A) in paragraph (2), by striking ‘‘and’’ at tion of certification or accreditation, is not ‘‘(3) to sell, or attempt to sell, a product the end; supported by substantial evidence. that is represented as being organically pro- (B) in paragraph (3), by striking the period ‘‘(g) NONCOMPLIANCE.— duced under this title if in fact the product at the end and inserting ‘‘; and’’; and ‘‘(1) IN GENERAL.—If a person covered by has been produced or handled by an oper- (C) by adding at the end the following: this title fails to obey an order, or a revoca- ation that is not yet a certified organic pro- ‘‘(4) $70,000,000 for fiscal year 2013 and each tion of certification or accreditation, de- ducer or handler under this title. fiscal year thereafter.’’. scribed in subsection (f)(2) after the order or ‘‘(e) ENFORCEMENT.— SEC. 10009. RECORDKEEPING, INVESTIGATIONS, revocation has become final and conclusive AND ENFORCEMENT. ‘‘(1) ORDER.—The Secretary may issue an or after the appropriate United States dis- The Organic Foods Production Act of 1990 order to stop the sale of an agricultural trict court has entered a final judgment in is amended by inserting after section 2120 (7 product that is labeled or otherwise rep- favor of the Secretary, the United States U.S.C. 6519) the following: resented as being organically produced— may apply to the appropriate United States ‘‘SEC. 2120A. RECORDKEEPING, INVESTIGATIONS, ‘‘(A) until the product can be verified— district court for enforcement of the order, AND ENFORCEMENT. ‘‘(i) as meeting the national and State or the revocation of certification or accredi- ‘‘(a) RECORDKEEPING.— standards for organic production and han- tation. ‘‘(1) IN GENERAL.—Except as otherwise pro- dling as provided in sections 2105 through ‘‘(2) ENFORCEMENT.—If the court deter- vided in this title, all persons, including pro- 2114; mines that the order or revocation was law- ducers, handlers, and certifying agents, re- ‘‘(ii) as having been produced or handled fully made and duly served and that the per- quired to report information to the Sec- without the use of a prohibited substance son violated the order or revocation, the retary under this title shall maintain, and listed under section 2118; and court shall enforce the order or revocation. make available to the Secretary on the re- ‘‘(iii) as being produced and handled by a ‘‘(3) CIVIL PENALTY.—If the court finds that quest of the Secretary, all contracts, agree- certified organic operation; and the person violated the order or revocation, ments, receipts, and other records associated ‘‘(B) if a person has committed an unlawful the person shall be subject to a civil penalty with the organic certification program es- act with respect to the product under sub- of not more than $10,000 for each offense.’’. tablished by the Secretary under this title. section (d). SEC. 10010. REPORT ON HONEY. ‘‘(2) DURATION OF RECORDKEEPING REQUIRE- ‘‘(2) CERTIFICATION OR ACCREDITATION.— (a) IN GENERAL.—Not later than 180 days MENT.—A record covered by paragraph (1) ‘‘(A) SUSPENSION.— after the date of enactment of this Act, the shall be maintained— ‘‘(i) IN GENERAL.—The Secretary may sus- Secretary, in consultation with affected ‘‘(A) by a person covered by this title, expend the organic certification of a producer stakeholders, shall submit to the Commis- cept for a certifying agent, for a period of 5 or handler, or accreditation of a certifying sioner of Food and Drugs a report describing years beginning on the date of the creation agent, for a period not to exceed 30 days, and how an appropriate Federal standard for the of the record; and may renew the suspension for an additional identity of honey would promote honesty ‘‘(B) by a certifying agent, for a period of period, under the circumstances described in and fair dealing and would be in the interest 10 years beginning on the date of the cre- clause (ii). of consumers, the honey industry, and ation of the record. ‘‘(ii) ACTIONS TRIGGERING SUSPENSION.—The United States agriculture. ‘‘(b) CONFIDENTIALITY.— Secretary may take the suspension or re- (b) CONTENTS.—In preparing the report ‘‘(1) IN GENERAL.—Subject to paragraph (2), newal actions described in clause (i), if the under subsection (a), the Secretary shall and except as otherwise directed by the Sec- Secretary has reason to believe that a person take into consideration the March 2006 retary or the Attorney General for enforce- producing or handling an agricultural prod- Standard of Identity citizens petition filed ment purposes, no officer, employee, or uct, or a certifying agent, has violated or is with the Food and Drug Administration, in- agent of the United States shall make avail- violating any provision of this title, includ- cluding any current industry amendments or able to the public information, statistics, or ing an order or regulation promulgated clarifications necessary to update that 2006 documents obtained from or made available under this title. petition. by any person under this title, other than in ‘‘(iii) CONTINUATION OF SUSPENSION SEC. 10011. EFFECTIVE DATE. a manner that ensures that confidentiality is THROUGH APPEAL.—If the Secretary deter- This title and the amendments made by preserved regarding the identity of persons, mines subsequent to an investigation that a this title take effect on October 1, 2012. including parties to a contract, and propri- violation of this title by a person covered by TITLE XI—CROP INSURANCE etary business information. this title has occurred, the suspension shall SEC. 11001. SUPPLEMENTAL COVERAGE OPTION. ‘‘(2) ALLEGED VIOLATORS AND NATURE OF AC- remain in effect until the Secretary issues a (a) AVAILABILITY OF SUPPLEMENTAL COV- TIONS.—The Secretary may release the name revocation of the certification of the person ERAGE OPTION.—Section 508(c) of the Federal of the alleged violator and the nature of the or of the accreditation of the certifying Crop Insurance Act (7 U.S.C. 1508(c)) is actions triggering an order, suspension, or agent, covered by this title, after an expe- amended by striking paragraph (3) and in- revocation under subsection (e). dited administrative appeal under section serting the following: ‘‘(c) INVESTIGATION.— 2121 has been completed. ‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A pro- ‘‘(1) IN GENERAL.—The Secretary may take ‘‘(B) REVOCATION.—After notice and oppor- ducer shall have the option of purchasing ad- such investigative actions as the Secretary tunity for an administrative appeal under ditional coverage based on— considers to be necessary to carry out this section 2121, if a violation described in sub- ‘‘(A)(i) an individual yield and loss basis; title— paragraph (A)(ii) is determined to have oc- or ‘‘(A) to verify the accuracy of any informa- curred and is an unlawful act under sub- ‘‘(ii) an area yield and loss basis; tion reported or made available under this section (d), the Secretary shall revoke the ‘‘(B) an individual yield and loss basis, sup- title; and organic certification of the producer or han- plemented with coverage based on an area

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00151 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4584 CONGRESSIONAL RECORD — SENATE June 25, 2012 yield and loss basis to cover all or a part of ‘‘(i) 70 percent of the additional premium (1) by redesignating subparagraphs (A) and the deductible under the individual yield and associated with the coverage; and (B) as clauses (i) and (ii), respectively, and loss policy, as authorized in paragraph (4)(C); ‘‘(ii) the amount determined under sub- indenting appropriately; or section (c)(4)(C)(v)(II) for the coverage to (2) by striking ‘‘(1) IN GENERAL.—’’ and in- ‘‘(C) a margin basis alone or in combina- cover operating and administrative ex- serting the following: tion with— penses.’’. ‘‘(1) SUBMISSION AND REVIEW OF POLICIES.— ‘‘(i) individual yield and loss coverage; or (d) CONFORMING AMENDMENT.—Section ‘‘(A) SUBMISSIONS.—In addition’’; and ‘‘(ii) area yield and loss coverage.’’. 508(k)(4)(F) of the Federal Crop Insurance (3) by adding at the end the following: (b) LEVEL OF COVERAGE.—Section 508(c) of Act (7 U.S.C. 1508(k)(4)(F)) is amended by in- ‘‘(B) REVIEW.—The Corporation shall re- the Federal Crop Insurance Act (7 U.S.C. serting ‘‘or authorized under subsection view any policy developed under section 1508(c)) is amended by striking paragraph (4) (c)(4)(C)’’ after ‘‘of this subparagraph’’. 522(c) or any pilot program developed under and inserting the following: (e) EFFECTIVE DATE.—The Federal Crop In- section 523 and submit the policy or program ‘‘(4) LEVEL OF COVERAGE.— surance Corporation shall begin to provide to the Board under this subsection if the ‘‘(A) DOLLAR DENOMINATION AND PERCENT- additional coverage based on an individual Corporation, at the sole discretion of the AGE OF YIELD.—Except as provided in sub- yield and loss basis, supplemented with cov- Corporation, finds that the policy or pro- paragraph (C), the level of coverage— erage based on an area yield and loss basis, gram— ‘‘(i) shall be dollar denominated; and not later than for the 2013 crop year. ‘‘(i) will likely result in a viable and mar- ‘‘(ii) may be purchased at any level not to SEC. 11002. PREMIUM AMOUNTS FOR CATA- ketable policy consistent with this sub- exceed 85 percent of the individual yield or 95 STROPHIC RISK PROTECTION. section; percent of the area yield (as determined by Section 508(d)(2) of the Federal Crop Insur- ‘‘(ii) would provide crop insurance cov- the Corporation). ance Act (7 U.S.C. 1508(d)(2)) is amended by erage in a significantly improved form; and ‘‘(B) INFORMATION.—The Corporation shall striking subparagraph (A) and inserting the ‘‘(iii) adequately protects the interests of provide producers with information on cata- following: producers.’’. strophic risk and additional coverage in ‘‘(A) In the case of catastrophic risk pro- SEC. 11008. BOARD REVIEW AND APPROVAL. terms of dollar coverage (within the allow- tection, the amount of the premium estab- (a) REVIEW AND APPROVAL BY THE BOARD.— able limits of coverage provided in this para- lished by the Corporation for each crop for Section 508(h) of the Federal Crop Insurance graph). which catastrophic risk protection is avail- Act (7 U.S.C. 1508(h)) is amended by striking ‘‘(C) SUPPLEMENTAL COVERAGE OPTION.— able shall be reduced by the percentage equal paragraph (3) and inserting the following: ‘‘(i) IN GENERAL.—Notwithstanding sub- to the difference between the average loss ‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— paragraph (A), in the case of the supple- ratio for the crop and 100 percent, plus a rea- ‘‘(A) IN GENERAL.—A policy, plan of insur- mental coverage option described in para- sonable reserve, as determined by the Cor- ance, or other material submitted to the graph (3)(B), the Corporation shall offer pro- poration.’’. Board under this subsection shall be re- ducers the opportunity to purchase coverage SEC. 11003. PERMANENT ENTERPRISE UNIT. viewed by the Board and shall be approved in combination with a policy or plan of in- Section 508(e)(5) of the Federal Crop Insur- by the Board for reinsurance and for sale by surance offered under this subtitle that ance Act (7 U.S.C. 1508(e)(5)) is amended by approved insurance providers to producers at would allow indemnities to be paid to a pro- striking subparagraph (A) and inserting the actuarially appropriate rates and under ap- ducer equal to all or part of the deductible following: propriate terms and conditions if the Board, under the policy or plan of insurance, if suf- ‘‘(A) IN GENERAL.—The Corporation may at the sole discretion of the Board, deter- ficient area data is available (as determined pay a portion of the premiums for plans or mines that— by the Corporation). policies of insurance for which the insurable ‘‘(i) the interests of producers are ade- ‘‘(ii) TRIGGER.—Coverage offered under this unit is defined on a whole farm or enterprise quately protected; subparagraph shall be triggered only if the unit basis that is higher than would other- ‘‘(ii) the rates of premium and price elec- losses in the area exceed 10 percent of nor- wise be paid in accordance with paragraph tion methodology are actuarially appro- mal levels (as determined by the Corpora- (2).’’. priate; tion). SEC. 11004. ENTERPRISE UNITS FOR IRRIGATED ‘‘(iii) the terms and conditions for the pro- ‘‘(iii) COVERAGE.—Subject to the trigger AND NONIRRIGATED CROPS. posed policy or plan of insurance are appro- described in clause (ii) and the deductible Section 508(e)(5) of the Federal Crop Insur- priate and would not unfairly discriminate imposed by clause (iv), coverage offered ance Act (7 U.S.C. 1508(e)(5)) is amended by among producers; under this subparagraph shall cover the first adding at the end the following: ‘‘(iv) the proposed policy or plan of insur- loss incurred by the producer, not to exceed ‘‘(D) NONIRRIGATED CROPS.—Beginning with ance will, at the sole discretion of the the difference between— the 2013 crop year, the Corporation shall Board— ‘‘(I) 100 percent; and make available separate enterprise units for ‘‘(I) likely result in a viable and market- ‘‘(II) the coverage level selected by the pro- irrigated and nonirrigated acreages of crops able policy that can reasonably attain levels ducer for the underlying policy or plan of in- in counties.’’. of participation similar to other like policies surance. SEC. 11005. DATA COLLECTION. or plans of insurance; ‘‘(iv) DEDUCTIBLE.—Coverage offered under Section 508(g)(2) of the Federal Crop Insur- ‘‘(II) provide crop insurance coverage in a this subparagraph shall be subject to a de- ance Act (7 U.S.C. 1508(g)(2)) is amended by significantly improved form or in a manner ductible in an amount equal to— adding at the end the following: that addresses a recognized flaw or problem ‘‘(I) in the case of a producer who partici- ‘‘(E) SOURCES OF YIELD DATA.—To deter- in an existing policy; or pates in the agriculture risk coverage pro- mine yields under this paragraph, the Cor- ‘‘(III) provide a new kind of coverage for a gram under section 1105(c) of the Agriculture poration— commodity that previously had no available Reform, Food, and Jobs Act of 2012, 21 per- ‘‘(i) shall use county data collected by the crop insurance, or has demonstrated a low cent of the expected value of the crop of the Risk Management Agency or the National level of participation under existing cov- producer covered by the underlying policy or Agricultural Statistics Service, or both; or erage; plan of insurance, as determined by the Cor- ‘‘(ii) if sufficient county data is not avail- ‘‘(v) the proposed policy or plan of insur- poration; and able, may use other data considered appro- ance will, at the sole discretion of the Board, ‘‘(II) in the case of all other producers, 10 priate by the Secretary.’’. not have a significant adverse impact on the percent of the expected value of the crop of SEC. 11006. ADJUSTMENT IN ACTUAL PRODUC- crop insurance delivery system; and the producer covered by the underlying pol- TION HISTORY TO ESTABLISH IN- ‘‘(vi) the proposed policy or plan of insur- icy or plan of insurance, as determined by SURABLE YIELDS. ance meets such other requirements as are the Corporation. Section 508(g)(4)(B) of the Federal Crop In- determined appropriate by the Board. ‘‘(v) CALCULATION OF PREMIUM.—Notwith- surance Act (7 U.S.C. 1508(g)(4)(B)) is amend- ‘‘(B) PRIORITIES.— standing subsection (d), the premium shall— ed— ‘‘(i) ESTABLISHMENT.—The Board, at the ‘‘(I) be sufficient to cover anticipated (1) in the matter preceding clause (i), by sole discretion of the Board, may— losses and a reasonable reserve; and inserting ‘‘for the 2012 crop year or any prior ‘‘(I) annually establish priorities under ‘‘(II) include an amount for operating and crop year, or 70 percent of the applicable this subsection that specify types of submis- administrative expenses established in ac- transitional yield for the 2013 or any subse- sions needed to fulfill the portfolio of poli- cordance with subsection (k)(4)(F).’’. quent crop year,’’ after ‘‘transitional yield’’; cies or plans of insurance to be reviewed and (c) PAYMENT OF PORTION OF PREMIUM BY and approved under this subsection; and CORPORATION.—Section 508(e)(2) of the Fed- (2) in clause (ii), by striking ‘‘60 percent of ‘‘(II) make the priorities available on the eral Crop Insurance Act (7 U.S.C. 1508(e)(2)) the applicable transitional yield’’ and insert- website of the Corporation. is amended by adding at the end the fol- ing ‘‘the applicable percentage of the transi- ‘‘(ii) PROCESS.— lowing: tional yield described in this subparagraph’’. ‘‘(I) IN GENERAL.—Policies or plans of in- ‘‘(H) In the case of the supplemental cov- SEC. 11007. SUBMISSION AND REVIEW OF POLI- surance that satisfy the priorities estab- erage option authorized in subsection CIES. lished by the Board under this subsection (c)(4)(C), the amount shall be equal to the Section 508(h)(1) of the Federal Crop Insur- shall be considered by the Board for approval sum of— ance Act (7 U.S.C. 1508(h)(1)) is amended— prior to other submissions.

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‘‘(II) CONSIDERATIONS.—In approving poli- ‘‘SEC. 508B. STACKED INCOME PROTECTION PLAN ‘‘(8) Notwithstanding section 508(d), in- cies or plans of insurance, the Board shall— FOR PRODUCERS OF UPLAND COT- clude a premium that— ‘‘(aa) consider providing the highest prior- TON. ‘‘(A) is sufficient to cover anticipated ities for policies or plans of insurance that ‘‘(a) AVAILABILITY.—Beginning not later losses and a reasonable reserve; and address underserved commodities, including than the 2013 crop of upland cotton, if prac- ‘‘(B) includes an amount for operating and commodities for which there is no insurance; ticable, the Corporation shall make avail- administrative expenses established in ac- and able to producers of maximum eligible acres cordance with section 508(k)(4)(F). of upland cotton an additional policy (to be ‘‘(bb) consider providing the highest prior- ‘‘(c) RELATION TO OTHER COVERAGES.— known as the ‘Stacked Income Protection ities for existing policies for which there is ‘‘(1) IN GENERAL.—Except as provided in Plan’), which shall provide coverage con- inadequate coverage or there exists low lev- paragraph (2), the Stacked Income Protec- sistent with the Group Risk Income Protec- els of participation. tion Plan is in addition to all other cov- tion Plan (and the associated Harvest Rev- ‘‘(iii) OTHER CRITERIA.—The Board may es- erages available to producers of upland cot- enue Option Endorsement) offered by the ton. tablish such other criteria as the Board de- Corporation for the 2011 crop year. ‘‘(2) LIMITATION.—Acreage of upland cotton termines to meet the needs of producers and ‘‘(b) REQUIRED TERMS.—The Corporation insured under the Supplemental Coverage the priorities of this subsection, consistent may modify the Stacked Income Protection Option shall not be eligible for the Stacked with the purposes of this subtitle.’’. Plan on a program-wide basis, except that Income Protection Plan. the Stacked Income Protection Plan shall SEC. 11009. CONSULTATION. ‘‘(d) PAYMENT OF PORTION OF PREMIUM BY comply with the following requirements: Section 508(h)(4) of the Federal Crop Insur- CORPORATION.—Subject to section 508(e)(4), ‘‘(1)(A) Provide coverage for revenue loss of the amount of premium paid by the Corpora- ance Act (7 U.S.C. 1508(h)) is amended by not more than 30 percent of expected county tion for all qualifying coverage levels of the adding at the end the following: revenue, specified in increments of 5 percent. Stacked Income Protection Plan shall be— ‘‘(E) CONSULTATION.— ‘‘(B) The deductible is the minimum per- ‘‘(1) 80 percent of the amount of the pre- ‘‘(i) REQUIREMENT.—As part of the feasi- cent of revenue loss at which indemnities are mium established under subsection (b)(8)(A) bility and research associated with the de- triggered under the plan, not to be less than for the coverage level selected; and velopment of a policy or other material con- 10 percent of the expected county revenue. ‘‘(2) the amount determined under sub- ducted prior to making a submission to the ‘‘(C) Once the deductible is met, any losses section (b)(8)(B) to cover administrative and Board under this subsection, the submitter in excess of the deductible will be paid up to operating expenses.’’. shall consult with groups representing pro- the coverage selected by the producer. (b) CONFORMING AMENDMENT.—Section ducers of agricultural commodities in all ‘‘(2) Be offered to producers of upland cot- 508(k)(4)(F) of the Federal Crop Insurance major producing areas for the commodities ton in all counties with upland cotton pro- Act (7 U.S.C. 1508(k)(4)(F)) (as amended by to be served or potentially impacted, either duction— section 11001(d)) is amended by inserting ‘‘or directly or indirectly. ‘‘(A) at a county-wide level to the fullest under section 508B’’ after ‘‘subsection ‘‘(ii) SUBMISSION TO THE BOARD.—Any sub- extent practicable; or (c)(4)(C)’’. mission made to the Board under this sub- ‘‘(B) in counties that lack sufficient data, SEC. 11012. PEANUT REVENUE CROP INSURANCE. section shall contain a summary and anal- on the basis of such larger geographical area The Federal Crop Insurance Act is amend- ysis of the feasibility and research findings as the Corporation determines to provide ed by inserting after section 508B (as added from the impacted groups described in clause sufficient data for purposes of providing the by section 11011(a)) the following: (i), including a summary assessment of the coverage. ‘‘SEC. 508C. PEANUT REVENUE CROP INSURANCE. support for or against development of the ‘‘(3) Be purchased in addition to any other ‘‘(a) IN GENERAL.—Effective beginning with policy and an assessment on the impact of individual or area coverage in effect on the the 2013 crop year, the Risk Management the proposed policy to the general marketing producer’s acreage or as a stand-alone pol- Agency and the Corporation shall make and production of the crop from both a re- icy, except that if a producer has an indi- available to producers of peanuts a revenue gional and national perspective. vidual or area coverage for the same acreage, crop insurance program for peanuts. ‘‘(iii) EVALUATION BY THE BOARD.—In evalu- the maximum coverage available under the ‘‘(b) EFFECTIVE PRICE.— ating whether the interests of producers are Stacked Income Protection Plan shall not ‘‘(1) IN GENERAL.—Subject to paragraph (2), adequately protected pursuant to paragraph exceed the deductible for the individual or for purposes of the policies and plans of in- (3) with respect to an submission made under area coverage. surance offered under subsections (a) and (b) this subsection, the Board shall review the ‘‘(4) Establish coverage based on— of section 508, the effective price for peanuts information provided pursuant to clause (ii) ‘‘(A) an expected price that is the expected shall be equal to the Rotterdam price index to determine if the submission will create price established under existing Group Risk for peanuts, as adjusted to reflect the farmer adverse market distortions with respect to Income Protection or area wide policy of- stock price of peanuts in the United States. the production of commodities that are the fered by the Corporation for the applicable ‘‘(2) ADJUSTMENTS.— subject of the submission.’’. county (or area) and crop year; and ‘‘(A) IN GENERAL.—The effective price for ‘‘(B) an expected county yield that is the peanuts established under paragraph (1) may SEC. 11010. BUDGET LIMITATIONS ON RENEGOTI- higher of— be adjusted by the Risk Management Agency ATION OF THE STANDARD REINSUR- ANCE AGREEMENT. ‘‘(i) the expected county yield established and the Corporation to correct distortions. for the existing area-wide plans offered by ‘‘(B) ADMINISTRATION.—If an adjustment is Section 508(k)(8) of the Federal Crop Insur- the Corporation for the applicable county (or made under subparagraph (A), the Risk Man- ance Act (7 U.S.C. 1508(k)(8)) is amended by area) and crop year (or, in geographic areas agement Agency and the Corporation shall— adding at the end the following: where area-wide plans are not offered, an ex- ‘‘(i) make the adjustment in an open and ‘‘(F) BUDGET.— pected yield determined in a manner con- transparent manner; and ‘‘(i) IN GENERAL.—The Board shall ensure sistent with those of area-wide plans); or ‘‘(ii) submit to the Committee on Agri- that any Standard Reinsurance Agreement ‘‘(ii)(I) the average of the applicable yield culture of the House of Representatives and negotiated under subparagraph (A)(ii), as data for the county (or area) for the most re- the Committee on Agriculture, Nutrition, compared to the previous Standard Reinsur- cent 5 years, excluding the highest and low- and Forestry of the Senate a report that de- ance Agreement— est observations, from the Risk Management scribes the reasons for the adjustment.’’. ‘‘(I) to the maximum extent practicable, Agency or the National Agricultural Statis- SEC. 11013. AUTHORITY TO CORRECT ERRORS. shall be budget neutral; and tics, or both; or Section 515(c) of the Federal Crop Insur- ‘‘(II) in no event, may significantly depart ‘‘(II) if sufficient county data is not avail- ance Act (7 U.S.C. 1515(c)) is amended— from budget neutrality. able, such other data considered appropriate (1) in the first sentence, by striking ‘‘The ‘‘(ii) USE OF SAVINGS.—To the extent that by the Secretary. Secretary’’ and inserting the following: any budget savings is realized in the renego- ‘‘(5) Use a multiplier factor to establish ‘‘(1) IN GENERAL.—The Secretary’’; tiation of a Standard Reinsurance Agree- maximum protection per acre (referred to as (2) in the second sentence, by striking ‘‘Be- ment under subparagraph (A)(ii), and the a ‘protection factor’) of not more than 120 ginning with’’ and inserting the following: savings are determined not to be a signifi- percent. ‘‘(2) FREQUENCY.—Beginning with’’; and cant departure from budget neutrality under ‘‘(6) Pay an indemnity based on the (3) by adding at the end the following: clause (i), the savings shall be used for pro- amount that the expected county revenue ‘‘(3) CORRECTIONS.— grams administered or managed by the Risk exceeds the actual county revenue, as ap- ‘‘(A) IN GENERAL.—The Corporation shall Management Agency.’’. plied to the individual coverage of the pro- establish procedures that allow an agent and ducer. Indemnities under the Stacked In- approved insurance provider within a reason- SEC. 11011. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND COT- come Protection Plan shall not include or able amount of time following the applicable TON. overlap the amount of the deductible se- sales closing date to correct information re- lected under paragraph (1). garding the entity name, social security (a) AVAILABILITY OF STACKED INCOME PRO- ‘‘(7) To the maximum extent practicable, number, tax identification number, or such TECTION PLAN.—The Federal Crop Insurance in all counties for which data are available, other eligibility information as determined Act is amended by inserting after section establish separate coverage for irrigated and by the Corporation that is provided by a pro- 508A (7 U.S.C. 1508a) the following: nonirrigated practices. ducer for the purpose of obtaining coverage

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00153 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4586 CONGRESSIONAL RECORD — SENATE June 25, 2012 under any policy or plan of insurance made ‘‘(I) the concept, in good faith, will likely farm activity the Corporation determines to available under this subtitle to ensure that result in a viable and marketable policy con- be the minimum required in order to remove the eligibility information is consistent with sistent with section 508(h); the commodity from the field. the information reported by the producer to ‘‘(II) at the sole discretion of the Board, ‘‘(E) REPORT.—Not later than 2 years after the Farm Service Agency. the concept, if developed into a policy and the date of enactment of this paragraph, the ‘‘(B) LIMITATION.—In accordance with the approved by the Board, would provide crop Corporation shall submit to the Committee procedures of the Corporation, procedures insurance coverage— on Agriculture of the House of Representa- under subparagraph (A) may include any ‘‘(aa) in a significantly improved form or tives and the Committee on Agriculture, Nu- subsequent correction to the eligibility in- that addresses a unique need of agricultural trition, and Forestry of the Senate a report formation described in that subparagraph producers; that describes the results and feasibility of made by the Farm Service Agency if the cor- ‘‘(bb) to a crop or region not traditionally the research and development conducted rections do not allow the producer— served by the Federal crop insurance pro- under this paragraph, including an analysis ‘‘(i) to obtain a disproportionate benefit gram; or of potential adverse market distortions.’’. under the crop insurance program or any re- ‘‘(cc) in a form that addresses a recognized SEC. 11017. STUDY OF FOOD SAFETY INSURANCE. lated program of the Department of Agri- flaw or problem in the program; Section 522(c) of the Federal Crop Insur- culture; ‘‘(III) the applicant agrees to provide such ance Act (7 U.S.C. 1522(c)) (as amended by ‘‘(ii) to avoid ineligibility requirements for reports as the Corporation determines are section 11016) is amended by adding at the insurance; or necessary to monitor the development effort; end the following: ‘‘(iii) to avoid an obligation or requirement ‘‘(IV) the proposed budget and timetable ‘‘(19) STUDY OF FOOD SAFETY INSURANCE.— under any Federal or State law.’’. are reasonable, as determined by the Board; ‘‘(A) IN GENERAL.—The Corporation shall SEC. 11014. IMPLEMENTATION. and offer to enter into a contract with 1 or more Section 515 of the Federal Crop Insurance ‘‘(V) the concept proposal meets any other qualified entities to conduct a study to de- Act (7 U.S.C. 1515) is amended— requirements that the Board determines ap- termine whether offering policies that pro- (1) in subsection (j), by striking paragraph propriate. vide coverage for specialty crops from food (1) and inserting the following: ‘‘(ii) WAIVER.—The Board may waive the safety and contamination issues would ben- ‘‘(1) SYSTEMS MAINTENANCE AND UP- 50-percent limitation and, upon request of efit agricultural producers. the submitter after the submitter has begun GRADES.— ‘‘(B) SUBJECT.—The study described in sub- ‘‘(A) IN GENERAL.—The Secretary shall research and development activities, the paragraph (A) shall evaluate policies and maintain and upgrade the information man- Board may approve an additional 25 percent plans of insurance coverage that provide pro- agement systems of the Corporation used in advance payment to the submitter for re- tection for production or revenue impacted search and development costs, if, at the sole the administration and enforcement of this by food safety concerns including, at a min- discretion of the Board, the Board deter- subtitle. imum, government, retail, or national con- mines that— ‘‘(B) REQUIREMENT.— sumer group announcements of a health ad- ‘‘(I) the intended policy or plan of insur- ‘‘(i) IN GENERAL.—In maintaining and up- visory, removal, or recall related to a con- grading the systems, the Secretary shall en- ance developed by the submitter will provide tamination concern. sure that new hardware and software are coverage for a region or crop that is under- ‘‘(C) REPORT.—Not later than 1 year after compatible with the hardware and software served by the Federal crop insurance pro- the date of enactment of this paragraph, the used by other agencies of the Department to gram, including specialty crops; Corporation shall submit to the Committee maximize data sharing and promote the pur- ‘‘(II) the submitter is making satisfactory on Agriculture of the House of Representa- poses of this section. progress towards developing a viable and tives and the Committee on Agriculture, Nu- ‘‘(ii) ACREAGE REPORT STREAMLINING INITIA- marketable policy or plan of insurance con- trition, and Forestry of the Senate a report TIVE PROJECT.—As soon as practicable, the sistent with section 508(h); and that describes the results of the study con- Secretary shall develop and implement an ‘‘(III) the submitter does not have suffi- ducted under subparagraph (A).’’. acreage report streamlining initiative cient financial resources to complete the de- project to allow producers to report acreage velopment of the submission into a viable SEC. 11018. CROP INSURANCE FOR LIVESTOCK. and other information directly to the De- and marketable policy or plan of insurance Section 522(c) of the Federal Crop Insur- partment.’’; and consistent with section 508(h).’’. ance Act (as amended by section 11016) is (2) in subsection (k), by striking paragraph SEC. 11016. WHOLE FARM RISK MANAGEMENT IN- amended by adding at the end the following: (1) and inserting the following: SURANCE. ‘‘(19) STUDY ON SWINE CATASTROPHIC DIS- ‘‘(1) INFORMATION TECHNOLOGY.— Section 522(c) of the Federal Crop Insur- EASE PROGRAM.— ‘‘(A) IN GENERAL.—For purposes of sub- ance Act (7 U.S.C. 1522(c)) is amended by add- ‘‘(A) IN GENERAL.—The Corporation shall section (j)(1), the Corporation may use, from ing at the end the following: contract with a qualified person to conduct a amounts made available from the insurance ‘‘(18) WHOLE FARM DIVERSIFIED RISK MAN- study to determine the feasibility of insuring fund established under section 516(c), not AGEMENT INSURANCE PLAN.— swine producers for a catastrophic event. more than— ‘‘(A) IN GENERAL.—The Corporation shall ‘‘(B) REPORT.—Not later than 1 year after ‘‘(i)(I) for fiscal year 2013, $25,000,000; and conduct activities or enter into contracts to the date of the enactment of this paragraph, ‘‘(II) for each of fiscal years 2014 through carry out research and development to de- the Corporation shall submit to the Com- 2017, $10,000,000; or velop a whole farm risk management insur- mittee on Agriculture of the House of Rep- ‘‘(ii) if the Acreage Crop Reporting ance plan, with a liability limitation of resentatives and the Committee on Agri- Streamlining Initiative (ACRSI) project is $1,500,000, that allows a diversified crop or culture, Nutrition, and Forestry of the Sen- substantially completed by September 30, livestock producer the option to qualify for ate a report that describes the results of the 2013, not more than $15,000,000 for each of fis- an indemnity if actual gross farm revenue is study conducted under subparagraph (A).’’. cal years 2014 through 2017. below 85 percent of the average gross farm SEC. 11019. MARGIN COVERAGE FOR CATFISH. ‘‘(B) NOTIFICATION.—Not later than July 1, revenue or the expected gross farm revenue Section 522(c) of the Federal Crop Insur- 2013, the Secretary shall notify the Com- that can reasonably be expected of the pro- ance Act (as amended by section 11017) is mittee on Agriculture of the House of Rep- ducer, as determined by the Corporation. amended by adding at the end the following: resentatives and the Committee on Agri- ‘‘(B) ELIGIBLE PRODUCERS.—The Corpora- ‘‘(20) MARGIN COVERAGE FOR CATFISH.— culture, Nutrition, and Forestry of the Sen- tion shall permit producers (including di- ‘‘(A) IN GENERAL.—The Corporation shall ate on the status of the substantial comple- rect-to-consumer marketers, and producers offer to enter into a contract with a qualified tion of the Acreage Crop Reporting Stream- servicing local and regional and farm iden- entity to conduct research and development lining Initiative (ACRSI) project.’’. tity-preserved markets) who produce mul- regarding a policy to insure producers SEC. 11015. APPROVAL OF COSTS FOR RESEARCH tiple agricultural commodities, including against reduction in the margin between the AND DEVELOPMENT. specialty crops, industrial crops, livestock, market value of catfish and selected costs Section 522(b)(2) of the Federal Crop Insur- and aquaculture products, to participate in incurred in the production of catfish. ance Act (7 U.S.C. 1522(b)(2)) is amended by the plan in lieu of any other plan under this ‘‘(B) ELIGIBILITY.—Eligibility for the policy striking subparagraph (E) and inserting the subtitle. described in subparagraph (A) shall be lim- following: ‘‘(C) DIVERSIFICATION.—The Corporation ited to freshwater species of catfish that are ‘‘(E) APPROVAL.— may provide diversification-based additional propagated and reared in controlled or se- ‘‘(i) IN GENERAL.—The Board may approve coverage payment rates, premium discounts, lected environments. up to 50 percent of the projected total re- or other enhanced benefits in recognition of ‘‘(C) IMPLEMENTATION.—The Board shall research and development costs to be paid in the risk management benefits of crop and view the policy described in subparagraph advance to an applicant, in accordance with livestock diversification strategies for pro- (B) under subsection 508(h) and approve the the procedures developed by the Board for ducers that grow multiple crops or that may policy if the Board finds that the policy— the making of the payments, if, after consid- have income from the production of live- ‘‘(i) will likely result in a viable and mar- eration of the reviewer reports described in stock that uses a crop grown on the farm. ketable policy consistent with this sub- subparagraph (D) and such other information ‘‘(D) MARKET READINESS.—The Corporation section; as the Board determines appropriate, the may include coverage for the value of any ‘‘(ii) would provide crop insurance cov- Board determines that— packing, packaging, or any other similar on- erage in a significantly improved form;

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‘‘(iii) adequately protects the interests of ‘‘(III) the development of new insurance ‘‘(i) IN GENERAL.—Notwithstanding sub- producers; and approaches relevant to organic producers; paragraph (A), the Corporation, at the sole ‘‘(iv) the proposed policy meets other re- and discretion of the Corporation, may conduct a quirements of this subtitle determined ap- ‘‘(IV) any recommendations the Corpora- pilot program to provide financial assistance propriate by the Board.’’. tion considers appropriate to improve Fed- for producers of underserved crops and live- SEC. 11020. POULTRY BUSINESS DISRUPTION IN- eral crop insurance coverage for organic stock (including specialty crops) to purchase SURANCE POLICY. crops.’’. an index-based weather insurance product Section 522(c) of the Federal Crop Insur- (b) CONFORMING AMENDMENT.—Section from a private insurance company, subject ance Act (7 U.S.C. 1522(c)) (as amended by 522(c) of the Federal Crop Insurance Act (7 to the requirements of this subparagraph. sections 11016, 11017, and 11018) is amended by U.S.C. 1522(c)) (as amended by section 11018) ‘‘(ii) PAYMENT OF PREMIUM.— adding at the end the following: is amended— ‘‘(I) IN GENERAL.—Subject to subclause (II) ‘‘(21) POULTRY BUSINESS DISRUPTION INSUR- (1) by striking paragraph (10); and and clause (v), the Corporation may pay a ANCE POLICY AND CATASTROPHIC DISEASE PRO- (2) by redesignating paragraphs (11) portion of the premium for producers who GRAM.— through (20) as paragraphs (10) through (19), purchase index-based weather insurance pro- ‘‘(A) DEFINITION OF POULTRY.—In this para- respectively. tection from a private insurance company graph, the term ‘poultry’ has the meaning SEC. 11022. RESEARCH AND DEVELOPMENT. for a crop and policy that is not reinsured given the term in section 2(a) of the Packers (a) IN GENERAL.—Section 522(c) of the Fed- under this subtitle, as determined by the and Stockyards Act, 1921 (7 U.S.C. 182(a)). eral Crop Insurance Act (7 U.S.C. 1522(c)) is Corporation. ‘‘(B) AUTHORITY.—The Corporation shall amended— ‘‘(II) CONDITION.—The premium assistance offer to enter into 1 or more contracts with (1) in the subsection heading, by striking under subclause (I) shall not exceed 60 per- qualified entities to carry out— ‘‘Contracting’’; cent of the estimated premium amount, ‘‘(i) a study to determine the feasibility of (2) in paragraph (1), in the matter pre- based on expected losses, representative op- insuring commercial poultry production ceding subparagraph (A), by striking ‘‘may erating expenses, and representative profit against business disruptions caused by inte- enter into contracts to carry out research margins, as determined by the Corporation. grator bankruptcy; and and development to’’ and inserting ‘‘may ‘‘(iii) ELIGIBLE PROVIDERS.—Before pro- ‘‘(ii) a study to determine the feasibility of conduct activities or enter into contracts to viding premium assistance to producers to insuring poultry producers for a catastrophic carry out research and development to main- purchase index-based weather insurance event. tain or improve existing policies or develop from a private insurance company pursuant ‘‘(C) BUSINESS DISRUPTION STUDY.—The new policies to’’; to this subparagraph, the Corporation shall study described in subparagraph (B)(i) (3) in paragraph (2)— verify that the company has adequate expe- shall— (A) in subparagraph (A), by inserting ‘‘con- rience— ‘‘(i) evaluate the market place for business duct research and development or’’ after ‘‘(I) to develop and manage the index-based disruption insurance that is available to ‘‘The Corporation may’’; and weather insurance products, including ade- poultry producers; (B) by striking subparagraph (B) and in- quate resources, experience, and assets or ‘‘(ii) assess the feasibility of a policy to serting the following: sufficient reinsurance to meet the obliga- allow producers to ensure against a portion ‘‘(B) CONSULTATION.—Before conducting re- tions of the company under this subpara- of losses from loss under contract due to search and development or entering into a graph; and business disruption from integrator bank- contract under subparagraph (A), the Cor- ‘‘(II) to support and deliver the index-based ruptcy; and poration shall follow the consultation re- weather insurance products. ‘‘(iii) analyze the costs to the Federal gov- quirements described in section ‘‘(iv) PROCEDURES.—The Corporation shall ernment of a Federal business disruption in- 508(h)(4)(E).’’; develop and publish procedures to administer surance program for poultry producers. (4) in paragraph (5), by inserting ‘‘after ex- the pilot program under this subparagraph ‘‘(D) REPORTS.—Not later than 1 year after pert review in accordance with section 505(e) that— the date of enactment of this paragraph, the and procedures of the Board’’ after ‘‘ap- ‘‘(I) require each applicable private insur- Corporation shall submit to the Committee proved by the Board’’; and ance company to report claim and sales data, on Agriculture of the House of Representa- (5) in paragraph (6), by striking ‘‘a pasture, and any other data the Corporation deter- tives and the Committee on Agriculture, Nu- range, and forage program’’ and inserting mines to be appropriate, to allow the Cor- trition, and Forestry of the Senate a report ‘‘policies that increase participation by pro- poration to evaluate product pricing and per- that describes the results of— ducers of underserved agricultural commod- formance; ‘‘(i) the study carried out under subpara- ities, including sweet sorghum, sorghum for ‘‘(II) allow the private insurance compa- graph (B)(i); and biomass, specialty crops, sugarcane, and nies exclusive rights over the private insur- ‘‘(ii) the study carried out under subpara- dedicated energy crops’’. ance offered under this subparagraph, includ- graph (B)(ii).’’. (b) FUNDING.—Section 522(e) of the Federal ing rating of policies, protection of intellec- SEC. 11021. CROP INSURANCE FOR ORGANIC Crop Insurance Act (7 U.S.C. 1522(e)) is tual property rights on the product or pol- CROPS. amended— icy, and associated rating methodology, for (a) IN GENERAL.—Section 508(c)(6) of the (1) in paragraph (2)— the period during which the companies are Federal Crop Insurance Act (7 U.S.C. (A) by striking ‘‘(A) AUTHORITY.—’’ and ineligible under clause (iii); and 1508(c)(6)) is amended by adding at the end serting ‘‘(A) CONDUCTING AND CONTRACTING ‘‘(III) contain such other requirements as the following: FOR RESEARCH AND DEVELOPMENT.—’’; the Corporation determines to be necessary ‘‘(D) ORGANIC CROPS.— (B) in subparagraph (A), by inserting ‘‘con- to ensure that— ‘‘(i) IN GENERAL.—As soon as possible, but duct research and development and’’ after ‘‘(aa) the interests of producers are pro- not later than the 2015 reinsurance year, the ‘‘the Corporation may use to’’; and tected; and Corporation shall offer producers of organic (C) in subparagraph (B), by inserting ‘‘con- ‘‘(bb) the program operates in an actuari- crops price elections for all organic crops duct research and development and’’ after ally sound manner. produced in compliance with standards ‘‘for the fiscal year to’’; ‘‘(v) FUNDING.—Of the funds of the Corpora- issued by the Department of Agriculture (2) in paragraph (3), in the matter pre- tion, the Corporation shall use to carry out under the national organic program estab- ceding subparagraph (A), by striking ‘‘to pro- this subparagraph $10,000,000 for each of fis- lished under the Organic Foods Production vide either reimbursement payments or con- cal years 2013 through 2017, to remain avail- Act of 1990 (7 U.S.C. 6501 et seq.) that reflect tract payments’’; and able until expended.’’. the actual retail or wholesale prices, as ap- (3) by striking paragraph (4). propriate, received by producers for organic SEC. 11023. PILOT PROGRAMS. SEC. 11025. ENHANCING PRODUCER SELF-HELP THROUGH FARM FINANCIAL crops, as determined by the Secretary using Section 523(a) of the Federal Crop Insur- BENCHMARKING. all relevant sources of information. ance Act (7 U.S.C. 1523(a)) is amended— ‘‘(ii) ANNUAL REPORT.—The Corporation (1) in paragraph (1), by inserting ‘‘, at the (a) DEFINITION.—Section 502(b) of the Fed- shall submit to the Committee on Agri- sole discretion of the Corporation,’’ after eral Crop Insurance Act (7 U.S.C. 1502(b)) is culture of the House of Representatives and ‘‘may’’; and amended— the Committee on Agriculture, Nutrition, (2) by striking paragraph (5). (1) by redesignating paragraphs (6) through and Forestry of the Senate an annual report SEC. 11024. INDEX-BASED WEATHER INSURANCE (9) as paragraphs (7) through (10), respec- on progress made in developing and improv- PILOT PROGRAM. tively; and ing Federal crop insurance for organic crops, Section 523(a)(2) of the Federal Crop Insur- (2) by inserting after paragraph (5) the fol- including— ance Act (7 U.S.C. 1523(a)(2)) is amended— lowing: ‘‘(I) the numbers and varieties of organic (1) by striking ‘‘Under’’ inserting the fol- ‘‘(6) FARM FINANCIAL BENCHMARKING.—The crops insured; lowing: term ‘farm financial benchmarking’ means— ‘‘(II) the progress of implementing the ‘‘(A) IN GENERAL.—Under’’; and ‘‘(A) the process of comparing the perform- price elections required under this subpara- (2) by adding at the end the following: ance of an agricultural enterprise against graph, including the rate at which additional ‘‘(B) INDEX-BASED WEATHER INSURANCE the performance of other similar enterprises, price elections are adopted for organic crops; PILOT PROGRAM.— through the use of comparable and reliable

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CROP PRODUCTION ON NATIVE SOD. and business profitability; and (ii) by striking the period at the end and (a) FEDERAL CROP INSURANCE.—Section ‘‘(B) benchmarking of the type conducted inserting ‘‘; or’’; and 508(o) of the Federal Crop Insurance Act (7 by farm management and producer associa- (iii) by adding at the end the following: U.S.C. 1508(o)) is amended— tions consistent with the activities described ‘‘(II) in the case of beginning farmers or (1) in paragraph (1)(B), by inserting ‘‘, or in or funded pursuant to section 1672D of the ranchers, replace each excluded yield with a the producer cannot substantiate that the Food, Agriculture, Conservation, and Trade yield equal to 80 percent of the applicable ground has ever been tilled,’’ after ‘‘tilled’’; Act of 1990 (7 U.S.C. 5925f).’’. transitional yield.’’. (2) in paragraph (2)(A), by striking ‘‘for (b) PARTNERSHIPS FOR RISK MANAGEMENT SEC. 11027. AGRICULTURAL MANAGEMENT AS- benefits under—’’ and all that follows FOR PRODUCERS OF SPECIALTY CROPS AND UN- SISTANCE, RISK MANAGEMENT EDU- through the period at the end and inserting DERSERVED AGRICULTURAL COMMODITIES.— CATION, AND ORGANIC CERTIFI- ‘‘for— CATION COST SHARE ASSISTANCE. Section 522(d)(3)(F) of the Federal Crop In- ‘‘(i) a portion of crop insurance premium Section 524 of the Federal Crop Insurance surance Act (7 U.S.C. 1522(d)(3)(F)) is amend- subsidies under this subtitle in accordance Act (7 U.S.C. 1524) is amended by striking ed by inserting ‘‘farm financial with paragraph (3); subsection (b) and inserting the following: ‘‘(ii) benefits under section 196 of the Fed- benchmarking,’’ after ‘‘management,’’. ‘‘(b) AGRICULTURAL MANAGEMENT ASSIST- eral Agriculture Improvement and Reform (c) CROP INSURANCE EDUCATION AND RISK ANCE, RISK MANAGEMENT EDUCATION, AND OR- Act of 1996 (7 U.S.C. 7333); and MANAGEMENT ASSISTANCE.—Section 524(a) of GANIC CERTIFICATION COST SHARE ASSIST- ‘‘(iii) payments described in subsection (b) the Federal Crop Insurance Act (7 U.S.C. ANCE.— of section 1001 of the Food Security Act of 1524(a)) is amended— ‘‘(1) AUTHORITY FOR PROVISION OF ASSIST- 1985 (7 U.S.C. 1308).’’; and (1) in paragraph (3)(A), by inserting ‘‘farm ANCE.—The Secretary shall provide assist- (3) by striking paragraph (3) and inserting financial benchmarking,’’ after ‘‘risk reduc- ance under this section as follows: the following: tion,’’; and ‘‘(A) Provision of organic certification cost ‘‘(3) ADMINISTRATION.— (2) in paragraph (4), in the matter pre- share assistance pursuant to section 10606 of ‘‘(A) IN GENERAL.—During the first 4 crop ceding subparagraph (A), by inserting ‘‘(in- the Farm Security and Rural Investment years of planting on native sod acreage by a cluding farm financial benchmarking)’’ after Act of 2002 (7 U.S.C. 6523). producer described in paragraph (2)— ‘‘management strategies’’. ‘‘(B) Activities to support risk manage- ‘‘(i) paragraph (2) shall apply to 65 percent SEC. 11026. BEGINNING FARMER AND RANCHER ment education and community outreach of the applicable transitional yield; and PROVISIONS. partnerships pursuant to section 522(d), in- ‘‘(ii) the crop insurance premium subsidy (a) DEFINITION.—Section 502(b) of the Fed- cluding— provided for the producer under this subtitle eral Crop Insurance Act (7 U.S.C. 1502(b)) (as ‘‘(i) entering into futures or hedging; shall be 50 percentage points less than the amended by section 11022(a)) is amended— ‘‘(ii) entering into agricultural trade op- premium subsidy that would otherwise (1) by redesignating paragraphs (3) through tions as a hedging transaction to reduce pro- apply. (10) as paragraphs (4) through (11), respec- duction, price, or revenue risk; or ‘‘(B) YIELD SUBSTITUTION.—During the pe- tively; and ‘‘(iii) conducting any other activity relat- riod native sod acreage is covered by this (2) by inserting after paragraph (2) the fol- ing to an activity described in clause (i) or subsection, a producer may not substitute lowing: (ii), including farm financial benchmarking, yields for the native sod acreage.’’. ‘‘(3) BEGINNING FARMER OR RANCHER.—The as determined by the Secretary. (b) NONINSURED CROP DISASTER ASSIST- term ‘beginning farmer or rancher’ means a ‘‘(C) Provision of agricultural management ANCE.—Section 196(a)(4) of the Federal Agri- farmer or rancher who has not actively oper- assistance grants to producers in States in culture Improvement and Reform Act of 1996 ated and managed a farm or ranch with a which there has been traditionally, and con- (7 U.S.C. 7333(a)(4)) is amended— bona fide insurable interest in a crop or live- tinues to be, a low level of Federal crop in- (1) in subparagraph (A)(ii), by inserting ‘‘, stock as an owner-operator, landlord, tenant, surance participation and availability, and or the producer cannot substantiate that the or sharecropper for more than 5 crop years, producers underserved by the Federal crop ground has ever been tilled,’’ after ‘‘tilled’’; as determined by the Secretary.’’. insurance program, as determined by the (2) in subparagraph (B)(i), by striking ‘‘for (b) PREMIUM ADJUSTMENTS.—Section 508 of Secretary, for the purposes of— benefits under—’’ and all that follows the Federal Crop Insurance Act (7 U.S.C. ‘‘(i) constructing or improving— through the period at the end and inserting 1508) is amended— ‘‘(I) watershed management structures; or ‘‘for— (1) in subsection (b)(5)(E), by inserting ‘‘(II) irrigation structures; ‘‘(I) benefits under this section; ‘‘and beginning farmers or ranchers’’ after ‘‘(ii) planting trees to form windbreaks or ‘‘(II) a portion of crop insurance premium ‘‘limited resource farmers’’; to improve water quality; and subsidies under the Federal Crop Insurance (2) in subsection (e), by adding at the end ‘‘(iii) mitigating financial risk through Act (7 U.S.C. 1501 et seq.) in accordance with the following: production or marketing diversification or subparagraph (C); and ‘‘(8) PREMIUM FOR BEGINNING FARMERS OR resource conservation practices, including— ‘‘(III) payments described in subsection (b) RANCHERS.—Notwithstanding any other pro- ‘‘(I) soil erosion control; of section 1001 of the Food Security Act of vision of this subsection regarding payment ‘‘(II) integrated pest management; 1985 (7 U.S.C. 1308).’’; and of a portion of premiums, a beginning farmer ‘‘(III) organic farming; or (3) by striking subparagraph (C) and insert- or rancher shall receive premium assistance ‘‘(IV) to develop and implement a plan to ing the following: that is 10 percentage points greater than pre- create marketing opportunities for the pro- ‘‘(C) ADMINISTRATION.— mium assistance that would otherwise be ducer, including through value-added proc- ‘‘(i) IN GENERAL.—During the first 4 crop available under paragraphs (2) (except for essing. years of planting on native sod acreage by a subparagraph (A) of that paragraph), (5), (6), ‘‘(2) PAYMENT LIMITATION.—The total producer described in subparagraph (B)— and (7) for the applicable policy, plan of in- amount of payments made to a person (as de- ‘‘(I) subparagraph (B) shall apply to 65 per- surance, and coverage level selected by the fined in section 1001(5) of the Food Security cent of the applicable transitional yield; and beginning farmer or rancher.’’; and Act (7 U.S.C. 1308(5))) (as in existence before ‘‘(II) the crop insurance premium subsidy (3) in subsection (g)— the amendment made by section 1603(b) of provided for the producer under the Federal (A) in paragraph (2)(B)— the Food, Conservation, and Energy Act of Crop Insurance Act (7 U.S.C. 1501 et seq.) (i) in clause (i), by striking ‘‘or’’ at the 2008 (Public Law 110–246; 122 Stat. 1730)) shall be 50 percentage points less than the end; under paragraph (1) for any year may not ex- premium subsidy that would otherwise (ii) in clause (ii)(III), by striking the period ceed $50,000. apply. at the end and inserting ‘‘; or’’; and ‘‘(3) FUNDING.— ‘‘(ii) YIELD SUBSTITUTION.—During the pe- (iii) by adding at the end the following: ‘‘(A) IN GENERAL.—The Secretary shall riod native sod acreage is covered by this ‘‘(iii) if the producer is a beginning farmer carry out this subsection through the Com- paragraph, a producer may not substitute or rancher who was previously involved in a modity Credit Corporation. yields for the native sod acreage.’’. farming or ranching operation, including in- ‘‘(B) FUNDING.—For each of fiscal years (c) CROPLAND REPORT.— volvement in the decisionmaking or physical 2013 through 2017, the Commodity Credit Cor- (1) BASELINE.—Not later than 180 days after involvement in the production of the crop or poration shall make available to carry out the date of enactment of this Act, the Sec- livestock on the farm, for any acreage ob- this subsection $23,000,000. retary of Agriculture shall submit to the tained by the beginning farmer or rancher, a ‘‘(C) DISTRIBUTION OF FUNDS.—Of the Committee on Agriculture of the House of yield that is the higher of— amount made available to carry out this sub- Representatives and the Committee on Agri- ‘‘(I) the actual production history of the section for a fiscal year, the Commodity culture, Nutrition, and Forestry of the Sen- previous producer of the crop or livestock on Credit Corporation shall use not less than— ate a report that describes the cropland acre- the acreage determined under subparagraph ‘‘(i) 50 percent to carry out paragraph age in each county and State, and the (A); or (1)(A); change in cropland acreage from the pre- ‘‘(II) a yield of the producer, as determined ‘‘(ii) 26 percent to carry out paragraph ceding year in each county and State, begin- in clause (i).’’; and (1)(B); and ning with calendar year 2000 and including

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that information for the most recent year actment of this paragraph, the Comptroller ERS AND VETERAN FARMERS AND RANCHERS.— for which that information is available. General of the United States shall conduct, Section 2501 of the Food, Agriculture, Con- (2) ANNUAL UPDATES.—Not later than Janu- and submit to Congress a report describing servation, and Trade Act of 1990 (7 U.S.C. ary 1, 2014, and each January 1 thereafter the results of, a study regarding fraudulent 2279) is amended— through January 1, 2017, the Secretary of Ag- claims filed, and benefits provided, under (1) in the section heading, by inserting riculture shall submit to the Committee on this subtitle.’’. ‘‘AND VETERAN FARMERS AND RANCH- Agriculture of the House of Representatives SEC. 11032. LIMITATION ON PREMIUM SUBSIDY ERS’’ after ‘‘RANCHERS’’; and the Committee on Agriculture, Nutri- BASED ON AVERAGE ADJUSTED (2) in subsection (a)— tion, and Forestry of the Senate a report GROSS INCOME. (A) in paragraph (2)(B)(i), by inserting that describes— Section 508(e) of the Federal Crop Insur- ‘‘and veteran farmers or ranchers’’ after (A) the cropland acreage in each county ance Act (7 U.S.C. 1508(e)) (as amended by ‘‘ranchers’’; and and State as of the date of submission of the section 11023(b)) is amended by adding at the (B) in paragraph (4)— report; and end the following: (i) in subparagraph (A)— (B) the change in cropland acreage from ‘‘(9) LIMITATION ON PREMIUM SUBSIDY BASED (I) in clause (i), by striking ‘‘and’’ at the the preceding year in each county and State. ON AVERAGE ADJUSTED GROSS INCOME.— end; SEC. 11029. TECHNICAL AMENDMENTS. ‘‘(A) DEFINITION OF AVERAGE ADJUSTED (II) in clause (ii), by striking the period at Section 508(b) of the Federal Crop Insur- GROSS INCOME.—In this paragraph, the term the end and inserting ‘‘; and’’; and ance Act (7 U.S.C. 1508(b)) is amended— ‘average adjusted gross income’ has the (III) by adding at the end the following: (1) by striking paragraph (7); and meaning given the term in section 1001D(a) ‘‘(iii) $5,000,000 for each of fiscal years 2013 (2) by redesignating paragraphs (8) through of the Food Security Act of 1985 (7 U.S.C. through 2017.’’; and (11) as paragraphs (7) through (10), respec- 1308–3a(a)). (ii) by adding at the end the following: ‘‘(B) LIMITATION.—Notwithstanding any tively. ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— other provision of this subtitle and begin- SEC. 11030. GREATER ACCESSIBILITY FOR CROP There is authorized to be appropriated to INSURANCE. ning with the 2014 reinsurance year, in the carry out this section $20,000,000 for each of case of any producer that is a person or legal (a) FINDINGS.—Congress finds that— fiscal years 2013 through 2017.’’; entity that has an average adjusted gross in- (1) due to changes in commodity and other (3) in subsection (b)(2), by inserting ‘‘or come in excess of $750,000 based on the most agricultural programs made by the Agri- veteran farmers and ranchers’’ after ‘‘so- recent data available from the Farm Service culture Reform, Food, and Jobs Act of 2012, cially disadvantaged farmers and ranchers’’; Agency as of the beginning of the reinsur- it is more important than ever that agricul- and ance year, the total amount of premium sub- tural producers be able to fully understand (4) in subsection (c)— sidy provided with respect to additional cov- the terms of plans and policies of crop insur- (A) in paragraph (1)(A), by inserting ‘‘vet- erage under subsection (c), section 508B, or ance offered under the Federal Crop Insur- eran farmers or ranchers and’’ before ‘‘mem- section 508C issued on behalf of the producer ance Act (7 U.S.C. 1501 et seq.); and bers’’; and (2) proposed reductions by the Secretary in for a reinsurance year shall be 15 percentage points less than the premium subsidy pro- (B) in paragraph (2)(A), by inserting ‘‘vet- the number of State and local offices of the eran farmers or ranchers and’’ before ‘‘mem- Farm Service Agency will reduce the serv- vided in accordance with this subsection that would otherwise be available for the ap- bers’’. ices available to assist agricultural pro- (b) DEFINITION OF VETERAN FARMER OR plicable policy, plan of insurance, and cov- ducers in understanding crop insurance. RANCHER.—Section 2501(e) of the Food, Agri- erage level selected by the producer. (b) REQUIREMENT FOR USE OF PLAIN LAN- culture, Conservation, and Trade Act of 1990 ‘‘(C) APPLICATION.— GUAGE.— (7 U.S.C. 2279(e)) is amended by adding at the ‘‘(i) STUDY.—Not later than 1 year after the (1) IN GENERAL.—In issuing regulations and end the following: date of enactment of this Act, the Secretary, guidance relating to plans and policies of ‘‘(7) VETERAN FARMER OR RANCHER.—The in consultation with the Government Ac- crop insurance, the Risk Management Agen- term ‘veteran farmer or rancher’ means a countability Office, shall carry out a study cy and the Federal Crop Insurance Corpora- farmer or rancher who served in the active to determine the effects of the limitation de- tion shall, to the greatest extent practicable, military, naval, or air service, and who was scribed in subparagraph (B) on— use plain language, as required under Execu- discharged or released from the service ‘‘(I) the overall operations of the Federal tive Orders 12866 (5 U.S.C. 601 note; relating under conditions other than dishonorable.’’. crop insurance program; to regulatory planning and review) and 12988 ‘‘(II) the number of producers participating SEC. 12002. OFFICE OF ADVOCACY AND OUT- (28 U.S.C. 519 note; relating to civil justice REACH. in the Federal crop insurance program; reform). Section 226B(f)(3) of the Department of Ag- ‘‘(III) the level of coverage purchased by (2) REPORT.—Not later than 180 days after riculture Reorganization Act of 1994 (7 U.S.C. participating producers; the date of enactment of this Act, the Sec- 6934(f)(3)) is amended to read as follows: ‘‘(IV) the amount of premiums paid by par- retary shall submit to the Committee on Ag- ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— ticipating producers and the Federal Govern- riculture of the House of Representatives There are authorized to be appropriated to ment; and the Committee on Agriculture, Nutri- carry out this subsection— ‘‘(V) any potential liability for partici- tion, and Forestry of the Senate a report de- ‘‘(A) such sums as are necessary for each of pating producers, approved insurance pro- scribing the efforts of the Secretary to accel- fiscal years 2009 through 2012; and viders, and the Federal Government; erate compliance with the Executive Orders ‘‘(B) $2,000,000 for each of fiscal years 2013 ‘‘(VI) different crops or growing regions; described in paragraph (1). through 2017.’’. ‘‘(VII) program rating structures; (c) WEBSITE.— ‘‘(VIII) creation of schemes or devices to Subtitle B—Livestock (1) IN GENERAL.—Not later than 1 year after evade the impact of the limitation; and SEC. 12101. WILDLIFE RESERVOIR ZOONOTIC DIS- the date of enactment of this Act, the Sec- EASE INITIATIVE. retary, in consultation with the approved in- ‘‘(IX) administrative and operating expenses paid to approved insurance providers Title IV of the Agricultural Research, Ex- surance providers (as defined in section tension, and Education Reform Act of 1998 (7 502(b) of the Federal Crop Insurance Act (7 and underwriting gains and loss for the Fed- eral government and approved insurance pro- U.S.C. 7621 et seq.) is amended by adding at U.S.C. 1502(b)), shall improve the existing the end the following: viders. Internet website through which agricultural ‘‘SEC. 413. WILDLIFE RESERVOIR ZOONOTIC DIS- ‘‘(ii) EFFECTIVENESS.—The limitation de- producers in any State may identify crop in- EASE INITIATIVE. scribed in subparagraph (B) shall not take ef- surance options in that State. ‘‘(a) DEFINITION OF COVERED DISEASE.—In fect unless the Secretary determines, (2) REQUIREMENTS.—The website described this section, the term ‘covered disease’ in paragraph (1) shall— through the study described in clause (i), means a zoonotic disease affecting domestic (A) provide answers in an easily accessible that the limitation would not— livestock that is transmitted primarily from format to frequently asked questions; and ‘‘(I) significantly increase the premium wildlife. (B) include published materials of the De- amount paid by producers with an average ‘‘(b) ESTABLISHMENT.—There is established partment of Agriculture that relate to plans adjusted gross income of less than $750,000; within the Department a wildlife reservoir and policies of crop insurance offered under ‘‘(II) result in a decline in the crop insur- zoonotic disease initiative to provide assist- that Act. ance coverage available to producers; and ance through Coordinated Agricultural (d) ADMINISTRATION.—Nothing in this sec- ‘‘(III) increase the total cost of the Federal Project grants for research and development tion authorizes the Risk Management Agen- crop insurance program.’’. of surveillance methods, vaccines, vaccina- cy to sell a crop insurance policy or plan of TITLE XII—MISCELLANEOUS tion delivery systems, or diagnostic tests for insurance. Subtitle A—Socially Disadvantaged covered diseases. SEC. 11031. GAO CROP INSURANCE FRAUD RE- Producers and Limited Resource Producers ‘‘(c) COVERED DISEASE.— ‘‘(1) IN GENERAL.—To be eligible for a grant PORT. SEC. 12001. OUTREACH AND ASSISTANCE FOR SO- Section 515(d) of the Federal Crop Insur- CIALLY DISADVANTAGED FARMERS under this section, an eligible entity shall ance Act (7 U.S.C. 1515(d)) is amended by add- AND RANCHERS AND VETERAN conduct research and development of surveil- ing at the end the following: FARMERS AND RANCHERS. lance methods, vaccines, vaccination deliv- ‘‘(6) GAO CROP INSURANCE FRAUD REPORT.— (a) OUTREACH AND ASSISTANCE FOR SO- ery systems, or diagnostic tests for covered As soon as practicable after the date of en- CIALLY DISADVANTAGED FARMERS AND RANCH- diseases in—

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There is authorized to be appropriated to ‘‘(2) PRIORITY.—In making grants under (a) IN GENERAL.—Subtitle A of the Agricul- carry out this section $2,000,000 for each of this section, the Secretary shall give pri- tural Marketing Act of 1946 (7 U.S.C. 1621 et fiscal years 2013 through 2017. ority to grants that address— seq.) is amended by adding at the end the fol- Subtitle C—Other Miscellaneous Provisions ‘‘(A) Brucella abortus (Bovine Brucellosis); lowing: SEC. 12201. MILITARY VETERANS AGRICULTURAL ‘‘(B) Mycobacterium bovis (Bovine Tuber- ‘‘SEC. 209. SHEEP PRODUCTION AND MARKETING LIAISON. culosis); or GRANT PROGRAM. (a) IN GENERAL.—Subtitle A of the Depart- ‘‘(C) other zoonotic disease in livestock ‘‘(a) ESTABLISHMENT.—The Secretary, actment of Agriculture Reorganization Act of that is covered by a high-priority research ing through the Administrator of the Agri- 1994 is amended by inserting after section 218 and extension initiative conducted under cultural Marketing Service (referred to in (7 U.S.C. 6918) the following: section 1672 of the Food, Agriculture, Con- this section as the ‘Secretary’) shall estab- ‘‘SEC. 219. MILITARY VETERANS AGRICULTURAL servation, and Trade Act of 1990 (7 U.S.C. lish a competitive grant program for the pur- LIAISON. 5925). poses of improving the United States sheep ‘‘(a) AUTHORIZATION.—The Secretary shall ‘‘(d) ELIGIBLE ENTITIES.—The Secretary industry. establish in the Department the position of shall carry out the initiative established ‘‘(b) PURPOSE.—The purpose of the grant Military Veterans Agricultural Liaison. under subsection (b) through public sci- program shall be to strengthen and enhance ‘‘(b) DUTIES.—The Military Veterans Agri- entific research consortia that may consist the production and marketing of sheep and cultural Liaison shall— of members from— sheep products, including improvement of— ‘‘(1) provide information to returning vet- ‘‘(1) Federal agencies; ‘‘(1) infrastructure; erans about, and connect returning veterans ‘‘(2) National Laboratories; ‘‘(2) business; with, beginning farmer training and agricul- ‘‘(3) institutions of higher education; ‘‘(3) resource development; and tural vocational and rehabilitation programs ‘‘(4) research institutions and organiza- ‘‘(4) innovative approaches to solve long- appropriate to the needs and interests of re- tions; or term needs. turning veterans, including assisting vet- ‘‘(5) State agricultural experiment sta- ‘‘(c) ELIGIBILITY.—The Secretary shall erans in using Federal veterans educational tions. make grants under this section to 1 or more benefits for purposes relating to beginning a ‘‘(e) RESEARCH PROJECTS.—In carrying out national entities the mission of which is con- farming or ranching career; this section, the Secretary shall award sistent with the purpose of the grant pro- ‘‘(2) provide information to veterans con- grants on a competitive basis. gram. cerning the availability of and eligibility re- ‘‘(f) ADMINISTRATION.— ‘‘(d) FUNDING.—Of the funds of the Com- quirements for participation in agricultural ‘‘(1) IN GENERAL.—In the case of grants modity Credit Corporation, the Secretary awarded under this section, the Secretary programs, with particular emphasis on be- shall use to carry out this section $1,500,000 shall— ginning farmer and rancher programs; for fiscal year 2013, to remain available until ‘‘(A) seek and accept proposals for grants; ‘‘(3) serving as a resource for assisting vet- expended.’’. ‘‘(B) determine the relevance and merit of eran farmers and ranchers, and potential (b) CONFORMING AMENDMENT.—Section 374 proposals through a system of peer and merit farmers and ranchers, in applying for partici- of the Consolidated Farm and Rural Develop- review in accordance with section 103; pation in agricultural programs; and ment Act (7 U.S.C. 2008j) (as in existence on ‘‘(C) award grants on the basis of merit, ‘‘(4) advocating on behalf of veterans in the day before the date of enactment of this quality, and relevance; and interactions with employees of the Depart- Act) is— ‘‘(D) manage the initiative established ment. (1) amended in subsection (e)— ‘‘(c) CONTRACTS AND COOPERATIVE AGREE- under subsection (b) using a Coordinated Ag- (A) in paragraph (3)(D), by striking ‘‘3 per- MENTS.—For purposes of carrying out the du- ricultural Project format. cent’’ and inserting ‘‘10 percent’’; and ties under subsection (b), the Military Vet- ‘‘(2) TERM.—The term of a grant under this (B) by striking paragraph (6); and erans Agricultural Liaison may enter into section may not exceed 10 years. (2) redesignated as section 210 of the Agri- contracts or cooperative agreements with ‘‘(3) MATCHING FUNDS REQUIRED.—The Sec- cultural Marketing Act of 1946; and the research centers of the Agricultural Re- retary shall require the recipient of a grant (3) moved so as to appear at the end of sub- search Service, institutions of higher edu- under this section to provide funds or in- title A of that Act (as amended by sub- cation, or nonprofit organizations for— kind support from non-Federal sources in an section (a)). ‘‘(1) the conduct of regional research on amount that is not less than 25 percent of the profitability of small farms; the amount provided by the Federal Govern- SEC. 12105. FERAL SWINE ERADICATION PILOT ‘‘(2) the development of educational mate- ment. PROGRAM. (a) IN GENERAL.—To eradicate or control rials; ‘‘(4) OTHER CONDITIONS.—The Secretary ‘‘(3) the conduct of workshops, courses, and may set such other conditions on the award the threat feral swine pose to the domestic certified vocational training; of a grant under this section as the Sec- swine population, the entire livestock indus- ‘‘(4) the conduct of mentoring activities; or retary determines to be appropriate. try, and the destruction of crops and natural ‘‘(5) the provision of internship opportuni- ‘‘(g) BUILDINGS AND FACILITIES.—Funds plant communities and native habitats, the made available under this section shall not Secretary of Agriculture may establish a ties.’’. be used for— feral swine eradication pilot program. (b) CONFORMING AMENDMENTS.—Section ‘‘(1) the construction of a new building or (b) PILOT.—Subject to the availability of 296(b) of the Department of Agriculture Re- facility; or appropriations under this section, the Sec- organization Act of 1994 (7 U.S.C. 7014(b)) (as ‘‘(2) the acquisition, expansion, remod- retary may provide financial assistance for amended by section 4206(b)) is amended— eling, or alteration of an existing building or the cost of carrying out a pilot program— (1) in paragraph (8), by striking the ‘‘or’’ at facility (including site grading and improve- (1) to study and assess the nature and ex- the end; ment and architect fees). tent of damage to the pilot area caused by (2) in paragraph (9), by striking the period ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— feral swine; at the end and inserting ‘‘; or’’; and ‘‘(1) IN GENERAL.—There is authorized to be (2) to develop methods to eradicate or con- (3) by adding at the end the following: appropriated to carry out this section trol feral swine in the pilot area; and ‘‘(10) the authority of the Secretary to es- $7,000,000 for each of fiscal years 2012 through (3) to develop methods to restore damage tablish in the Department the position of 2017. caused by feral swine. Military Veterans Agricultural Liaison in ‘‘(2) ALLOCATION.—Of the amount made (c) COORDINATION.—The Secretary shall en- accordance with section 219.’’. available for a fiscal year under paragraph sure that the Natural Resource Conservation SEC. 12202. INFORMATION GATHERING. (1), the Secretary shall use not less than 30 Service and the Animal and Plant Health In- Section 1619(b)(3) of the Food, Conserva- percent of the amount for the fiscal year to spection Service coordinate to carry out the tion, and Energy Act of 2008 (7 U.S.C. 8791) is carry out activities under each of subpara- pilot program. amended by adding at the end the following: graphs (A) and (B) of subsection (c)(2).’’. (d) COST SHARING.— ‘‘(B) COOPERATION WITH STATE AND LOCAL SEC. 12102. TRICHINAE CERTIFICATION PRO- (1) FEDERAL SHARE.—The Federal share of GOVERNMENTS.— GRAM. the costs of the pilot program under this sec- ‘‘(i) IN GENERAL.—Subject to clause (ii), in Section 10405(d)(1) of the Animal Health tion may not exceed 75 percent of the total the case of a State agency, political subdivi- Protection Act (7 U.S.C. 8304(d)(1)) is amend- costs of carrying out the pilot program. sion, or local governmental agency that is ed in subparagraphs (A) and (B) by striking (2) IN-KIND CONTRIBUTIONS.—The non-Fed- charged with implementing an agriculture or ‘‘2012’’ each place it appears and inserting eral share of the costs of the pilot program conservation program under State law, on ‘‘2017’’. may be provided in the form of in-kind con- request of the State agency, political sub- SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH tributions of materials or services. division, or local governmental agency, the PLAN. (e) LIMITATION ON ADMINISTRATIVE EX- information described in paragraph (2) shall Section 11013(d) of the Food, Conservation, PENSES.—Not more than 10 percent of finan- be disclosed to the State agency, political and Energy Act of 2008 (7 U.S.C. 8322(d)) is cial assistance provided by the Secretary subdivision, or local governmental agency if

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00158 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4591 the Secretary determines that the State (ii) by striking ‘‘$1,875’’ and inserting U.S.C. 7333) shall be applied and adminis- agency, political subdivision, or local gov- ‘‘$1,950’’; and tered as if subsection (a) and the amend- ernmental agency demonstrates that the dis- (4) by adding at the end the following: ments made by subsection (a) (other than closure is required for implementing the ‘‘(l) PAYMENT EQUIVALENT TO ADDITIONAL the amendments made by clauses (i)(I) and State program. COVERAGE.— (ii) of subsection (a)(1)(B)) had not been en- ‘‘(ii) RESTRICTION.—Any information dis- ‘‘(1) IN GENERAL.—The Secretary shall acted. closed to a State agency, political subdivi- make available to a producer eligible for SEC. 12205. REGIONAL ECONOMIC AND INFRA- sion, or local governmental agency under noninsured assistance under this section a STRUCTURE DEVELOPMENT. clause (i) shall be— payment equivalent to an indemnity for ad- Section 15751 of title 40, United States ‘‘(I) used solely by the State agency, polit- ditional coverage under subsections (c) and Code, is amended— ical subdivision, or local governmental agen- (h) of section 508 of the Federal Crop Insur- (1) in subsection (a), by striking ‘‘2012’’ and cy; and ance Act (7 U.S.C. 1508) that does not exceed inserting ‘‘2017’’; and ‘‘(II) exempt from disclosure to the public, 65 percent, computed by multiplying— (2) in subsection (b)— including under any State law that allows a ‘‘(A) the quantity that is less than 50 to 65 (A) by striking ‘‘Not more than’’ and in- citizen to petition a State agency for that percent of the established yield for the crop, serting the following: information.’’. as determined by the Secretary, specified in ‘‘(1) IN GENERAL.—Except as provided in SEC. 12203. GRANTS TO IMPROVE SUPPLY, STA- increments of 5 percent; paragraph (2), not more than’’; and BILITY, SAFETY, AND TRAINING OF ‘‘(B) 100 percent of the average market (B) by adding at the end the following: AGRICULTURAL LABOR FORCE. price for the crop, as determined by the Sec- ‘‘(2) LIMITED FUNDING.—In a case in which Section 14204(d) of the Food, Conservation, retary; and less than $10,000,000 is made available to a and Energy Act of 2008 (7 U.S.C. 2008q–1(d)) is ‘‘(C) a payment rate for the type of crop, as Commission for a fiscal year under this sec- amended to read as follows: determined by the Secretary, that reflects— tion, paragraph (1) shall not apply.’’. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(i) in the case of a crop that is produced SEC. 12206. CANADA GEESE REMOVAL. There are authorized to be appropriated to with a significant and variable harvesting (a) IN GENERAL.—On a determination by carry out this section— expense, the decreasing cost incurred in the the Administrator of the Federal Aviation ‘‘(1) such sums as are necessary for each of production cycle for the crop that is, as ap- Administration that the population of Can- fiscal years 2008 through 2012; and plicable— ada geese residing on land under the jurisdic- ‘‘(2) $10,000,000 for each of fiscal years 2013 ‘‘(I) harvested; tion of the National Park Service that is lo- through 2017.’’. ‘‘(II) planted but not harvested; or cated within 5 miles of any commercial air- SEC. 12204. NONINSURED CROP ASSISTANCE PRO- ‘‘(III) prevented from being planted be- port poses a risk to flight safety, the Sec- GRAM. cause of drought, flood, or other natural dis- retary (acting through the Administrator of (a) IN GENERAL.—Section 196 of the Federal aster, as determined by the Secretary; or Agriculture Improvement and Reform Act of ‘‘(ii) in the case of a crop that is produced the Animal and Plant Health Inspection 1996 (7 U.S.C. 7333) is amended— without a significant and variable harvesting Service), in consultation with the Secretary (1) in subsection (a)— expense, such rate as shall be determined by of the Interior and the Administrator of the (A) by striking paragraph (1) and inserting the Secretary. Federal Aviation Administration, shall— (1) by the first subsequent molting period the following: ‘‘(2) PREMIUM.—To be eligible to receive a ‘‘(1) IN GENERAL.— payment under this subsection, a producer for Canada geese that occurs after the date ‘‘(A) COVERAGES.—In the case of an eligible shall pay— of enactment of this Act, publish a manage- crop described in paragraph (2), the Sec- ‘‘(A) the service fee required by subsection ment plan that provides for the removal, by retary of Agriculture shall operate a non- (k); and not later than 1 year after the date of publi- insured crop disaster assistance program to ‘‘(B) a premium for the applicable crop cation, of all Canada geese residing on the provide coverages based on individual yields year that is equal to— applicable land; and (other than for value-loss crops) equivalent ‘‘(i) the product obtained by multiplying— (2) as soon as practicable after the date of to— ‘‘(I) the number of acres devoted to the eli- publication of the management plan under ‘‘(i) catastrophic risk protection available gible crop; paragraph (1), commence removal of Canada under section 508(b) of the Federal Crop In- ‘‘(II) the yield, as determined by the Sec- geese from the applicable land. surance Act (7 U.S.C. 1508(b)); or retary under subsection (e); (b) JFK INTERNATIONAL AIRPORT.—Not ‘‘(ii) additional coverage available under ‘‘(III) the coverage level elected by the pro- later than June 1, 2012, the Secretary (acting subsections (c) and (h) of section 508 of that ducer; through the Administrator of the Animal Act (7 U.S.C. 1508) that does not exceed 65 ‘‘(IV) the average market price, as deter- and Plant Health Inspection Service) shall— percent. mined by the Secretary; and (1) issue a record of decision for the docu- ‘‘(B) ADMINISTRATION.—The Secretary shall ‘‘(ii) 5.25-percent premium fee. ment entitled ‘‘Supplement to the Environ- carry out this section through the Farm ‘‘(3) LIMITED RESOURCE, BEGINNING, AND SO- mental Impact Statement Bird Hazard Re- Service Agency (referred to in this section as CIALLY DISADVANTAGED FARMERS.—The addi- duction Program: John F. Kennedy Inter- the ‘Agency’).’’; and tional coverage made available under this national Airport’’; and (B) in paragraph (2)— subsection shall be available to limited re- (2) commence consultation with the Sec- (i) in subparagraph (A)— source, beginning, and socially disadvan- retary of the Interior to complete the collec- (I) in the matter before clause (i), by strik- taged producers, as determined by the Sec- tion and removal of Canada geese from the ing ‘‘(except livestock)’’ and inserting ‘‘(ex- retary, in exchange for a premium that is 50 applicable National Park Service land to en- cept livestock and crops and grasses used for percent of the premium determined for a sure that the removal is completed by not grazing)’’; producer under paragraph (2). later than August 1, 2012. (II) in clause (i), by striking ‘‘and’’ after ‘‘(4) ADDITIONAL AVAILABILITY.— SEC. 12207. OFFICE OF TRIBAL RELATIONS. the semicolon at the end; ‘‘(A) IN GENERAL.—As soon as practicable (a) IN GENERAL.—Title III of the Depart- (III) by redesignating clause (ii) as clause after October 1, 2013, the Secretary shall ment of Agriculture Reorganization Act of (iii); and make assistance available to producers of an 1994 is amended by adding after section 308 (7 (IV) by inserting after clause (i) the fol- otherwise eligible crop described in sub- U.S.C. 3125a note; Public Law 103–354) the following: section (a)(2) that suffered losses— lowing: ‘‘(ii) for which additional coverage under ‘‘(i) to a 2012 annual fruit crop grown on a ‘‘SEC. 309. OFFICE OF TRIBAL RELATIONS. subsections (c) and (h) of section 508 of that bush or tree; and ‘‘The Secretary shall establish in the Of- Act (7 U.S.C. 1508) is not available; and’’; and ‘‘(ii) in a county covered by a declaration fice of the Secretary an Office of Tribal Rela- (ii) in subparagraph (B)— by the Secretary of a natural disaster for tions.’’. (I) by inserting ‘‘(except ferns)’’ after ‘‘flo- production losses due to a freeze or frost. (b) CONFORMING AMENDMENTS.—Section ricultural’’; ‘‘(B) ASSISTANCE.—The Secretary shall 296(b) of the Department of Agriculture Re- (II) by inserting ‘‘(except ferns)’’ after ‘‘or- make assistance available under subpara- organization Act of 1994 (7 U.S.C. 7014(b)) (as namental nursery’’; and graph (A) in an amount equivalent to assist- amended by section 12201(b)) is amended— (III) by striking ‘‘(including ornamental ance available under paragraph (1), less any (1) in paragraph (8), by striking ‘‘or’’ at the fish)’’ and inserting ‘‘(including ornamental fees not previously paid under paragraph end; fish, but excluding tropical fish)’’; (2).’’. (2) in paragraph (9), by striking the period (2) in subsection (d), by striking ‘‘The Sec- (b) TERMINATION DATE.— at the end and inserting ‘‘; or’’; and retary’’ and inserting ‘‘Subject to subsection (1) IN GENERAL.—Effective October 1, 2017, (3) by adding at the end the following: (l), the Secretary’’; subsection (a) and the amendments made by ‘‘(10) the authority of the Secretary to es- (3) in subsection (k)(1)— subsection (a) (other than the amendments tablish in the Office of the Secretary the Of- (A) in subparagraph (A), by striking ‘‘$250’’ made by clauses (i)(I) and (ii) of subsection fice of Tribal Relations in accordance with and inserting ‘‘$260’’; and (a)(1)(B)) are repealed section 309.’’. (B) in subparagraph (B)— (2) ADMINISTRATION.—Effective October 1, SEC. 12208. REPEAL OF DUPLICATIVE PROGRAM. (i) by striking ‘‘$750’’ and inserting ‘‘$780’’; 2017, section 196 of the Federal Agriculture (a) IN GENERAL.—Effective on the date of and Improvement and Reform Act of 1996 (7 enactment of the Food, Conservation, and

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Section 2(h) of the Animal Welfare Act (7 paragraph (3) and inserting a period; and (b) APPLICATION.—The Agricultural Mar- U.S.C. 2132(h)) is amended by adding ‘‘an (C) by striking paragraphs (4), (5), and (6). keting Act of 1946 (7 U.S.C. 1621 et seq.) and owner of a common, domesticated household (3) PENALTIES.—Section 9012 of such Code is the Federal Meat Inspection Act (21 U.S.C. pet who derives less than a substantial por- amended— 601 et seq.) shall be applied and administered tion of income from a nonprimary source (as (A) in subsection (a)(1), by striking the sec- as if section 11016 of the Food, Conservation, determined by the Secretary) for exhibiting ond sentence; and and Energy Act (Public Law 110–246; 122 Stat. an animal that exclusively resides at the res- (B) in subsection (c), by striking paragraph 2130) and the amendments made by that sec- idence of the pet owner,’’ after ‘‘stores,’’. (2) and redesignating paragraph (3) as para- tion had not been enacted. SEC. 12213. PROHIBITION ON ATTENDING AN ANI- graph (2). SEC. 12209. SENSE OF THE SENATE. MAL FIGHT OR CAUSING A MINOR (4) AVAILABILITY OF PAYMENTS FROM PRESI- TO ATTEND AN ANIMAL FIGHT; EN- DENTIAL PRIMARY MATCHING PAYMENT AC- It is the sense of the Senate that nothing FORCEMENT OF ANIMAL FIGHTING in this Act or an amendment made by this PROVISIONS. COUNT.—The second sentence of section Act should manipulate prices or interfere (a) PROHIBITION ON ATTENDING AN ANIMAL 9037(a) of such Code is amended by striking with the free market. FIGHT OR CAUSING A MINOR TO ATTEND AN ‘‘and for payments under section 9008(b)(3)’’. (c) RETURN OF PREVIOUSLY SUBMITTED SEC. 12210. ACER ACCESS AND DEVELOPMENT ANIMAL FIGHT.—Section 26 of the Animal MONEY FOR DEFICIT REDUCTION.—Any PROGRAM. Welfare Act (7 U.S.C. 2156) is amended— amount which is returned by the national (a) GRANTS AUTHORIZED; AUTHORIZED AC- (1) in subsection (a)— committee of a major party or a minor party TIVITIES.—The Secretary of Agriculture may (A) in the heading, by striking ‘‘SPON- to the general fund of the Treasury from an make grants to States and tribal govern- SORING OR EXHIBITING AN ANIMAL IN’’ and in- account established under section 9008 of the ments to support their efforts to promote serting ‘‘SPONSORING OR EXHIBITING AN ANI- Internal Revenue Code of 1986 after the date MAL IN, ATTENDING, OR CAUSING A MINOR TO the domestic maple syrup industry through of the enactment of this Act shall be dedi- ATTEND’’; the following activities: cated to the sole purpose of deficit reduction. (B) in paragraph (1)— (1) Promotion of research and education re- (d) EFFECTIVE DATE.—The amendments lated to maple syrup production. (i) in the heading, by striking ‘‘IN GEN- made by this section shall apply with respect (2) Promotion of natural resource sustain- ERAL’’ and inserting ‘‘SPONSORING OR EXHIB- to elections occurring after December 31, ability in the maple syrup industry. ITING’’; and 2012. (ii) by striking ‘‘paragraph (2)’’ and insert- (3) Market promotion for maple syrup and SEC. 12215. REPORTS ON EFFECTS OF DEFENSE maple-sap products. ing ‘‘paragraph (3)’’; AND NONDEFENSE BUDGET SEQUES- (4) Encouragement of owners and operators (C) by redesignating paragraph (2) as para- TRATION. of privately held land containing species of graph (3); and (a) FINDINGS.—Congress makes the fol- tree in the genus Acer— (D) by inserting after paragraph (1) the following findings: (A) to initiate or expand maple-sugaring lowing new paragraph: (1) The inability of the Joint Select Com- activities on the land; or ‘‘(2) ATTENDING OR CAUSING A MINOR TO AT- mittee on Deficit Reduction to find (B) to voluntarily make the land available, TEND.—It shall be unlawful for any person $1,200,000,000,000 in savings will trigger auto- including by lease or other means, for access to— matic funding reductions known as ‘‘seques- by the public for maple-sugaring activities. ‘‘(A) knowingly attend an animal fighting tration’’ to raise an equivalent level of sav- (b) APPLICATIONS.—In submitting an appli- venture; or ings between fiscal years 2013 and 2021. cation for a grant under this section, a State ‘‘(B) knowingly cause a minor to attend an (2) These savings are in addition to or tribal government shall include— animal fighting venture.’’; and $900,000,000,000 in deficit reduction resulting (1) a description of the activities to be sup- (2) in subsection (g), by adding at the end from discretionary spending limits estab- ported using the grant funds; the following new paragraph: lished by the Budget Control Act of 2011. (2) a description of the benefits that the ‘‘(5) the term ‘minor’ means a person under (b) REPORTS.— State or tribal government intends to the age of 18 years old.’’. (1) REPORT BY THE DIRECTOR OF THE OFFICE achieve as a result of engaging in such ac- (b) ENFORCEMENT OF ANIMAL FIGHTING PRO- OF MANAGEMENT AND BUDGET.— tivities; and HIBITIONS.—Section 49 of title 18, United (A) IN GENERAL.—Not later than 30 days (3) an estimate of the increase in maple- States Code, is amended— after the date of enactment of this Act, the sugaring activities or maple syrup produc- (1) by striking ‘‘Whoever’’ and inserting Director of the Office of Management and tion that the State or tribal government an- ‘‘(a) IN GENERAL.—Whoever’’; Budget shall report upon the impact of se- ticipates will occur as a result of engaging in (2) in subsection (a), as designated by para- questration of funds with respect to a se- such activities. graph (1) of this section, by striking ‘‘sub- questration under paragraphs (7)(A) and (8) (c) RELATIONSHIP TO OTHER LAWS.—Nothing section (a),’’ and inserting ‘‘subsection of section 251(A) of the Balanced Budget and in this section preempts a State or tribal (a)(1),’’; and Emergency Deficit Control Act of 1985 (2 government law, including any State or trib- (3) by adding at the end the following new U.S.C. 901a) for fiscal year 2013 on January 2, al government liability law. subsections: 2013, using enacted levels of appropriations ‘‘(b) ATTENDING AN ANIMAL FIGHTING VEN- (d) DEFINITION OF MAPLE SUGARING.—In for accounts funded pursuant to an enacted this section, the term ‘‘maple-sugaring’’ TURE.—Whoever violates subsection (a)(2)(A) regular appropriations bill for fiscal year means the collection of sap from any species of section 26 of the Animal Welfare Act (7 2013, and estimates pursuant to a current U.S.C. 2156) shall be fined under this title, of tree in the genus Acer for the purpose of rate continuing resolution for accounts not imprisoned for not more than 1 year, or both, boiling to produce food. funded through an enacted appropriations for each violation. (e) REGULATIONS.—The Secretary of Agri- measure for fiscal year 2013 as the levels to ‘‘(c) CAUSING A MINOR TO ATTEND AN ANI- culture shall promulgate such regulations as which the sequestration should be applied. MAL FIGHTING VENTURE.—Whoever violates are necessary to carry out this section. subsection (a)(2)(B) of section 26 (7 U.S.C. (B) ELEMENTS.—The report required by (f) AUTHORIZATION OF APPROPRIATIONS.— 2156) of the Animal Welfare Act shall be fined subparagraph (A) shall include the following: There is authorized to be appropriated to under this title, imprisoned for not more (i) Each account that would be subject to carry out this section $20,000,000 for each of than 3 years, or both, for each violation.’’. such a sequestration. fiscal years 2012 through 2015. SEC. 12214. PROHIBITING USE OF PRESIDENTIAL (ii) Each account that would be subject to SEC. 12211. DEFINITION OF RURAL AREA FOR ELECTION CAMPAIGN FUNDS FOR such a sequestration but subject to a special PURPOSES OF THE HOUSING ACT OF PARTY CONVENTIONS. rule under section 255 or 256 of the Balanced 1949. (a) IN GENERAL.— Budget and Emergency Deficit Control Act The second sentence of section 520 of the (1) IN GENERAL.—Chapter 95 of the Internal of 1985 (and the citation to such rule). Housing Act of 1949 (42 U.S.C. 1490) is amend- Revenue Code of 1986 is amended by striking (iii) Each account that would be exempt ed— section 9008. from such a sequestration. (1) by striking ‘‘1990 or 2000 decennial cen- (2) CLERICAL AMENDMENT.—The table of (iv) Any other data or information that sus shall continue to be so classified until sections of chapter 95 of such Code is amend- would enhance public understanding of the the receipt of data from the decennial census ed by striking the item relating to section sequester and its effect on the defense and in the year 2010’’ and inserting ‘‘1990, 2000, or 9008. nondefense functions of the Federal Govern- 2010 decennial census, and any area deemed (b) CONFORMING AMENDMENTS.— ment including the impact on essential pub- to be a ‘rural area’ for purposes of this title (1) AVAILABILITY OF PAYMENTS TO CAN- lic safety responsibilities such as homeland under any other provision of law at any time DIDATES.—The third sentence of section security, food safety, and air traffic control during the period beginning January 1, 2000, 9006(c) of the Internal Revenue Code of 1986 is activities. and ending December 31, 2010, shall continue amended by striking ‘‘, section 9008(b)(3),’’. (C) CATAGORIZE AND GROUP.—The report re- to be so classified until the receipt of data (2) REPORTS BY FEDERAL ELECTION COMMIS- quired under this paragraph shall categorize from the decennial census in the year 2020’’; SION.—Section 9009(a) of such Code is amend- and group the listed accounts by the appro- and ed— priations Act covering such accounts.

VerDate Mar 15 2010 04:08 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00160 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.029 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4593 (2) REPORT BY THE PRESIDENT.— sequestration, including an estimate of po- NATIONAL APHASIA AWARENESS (A) IN GENERAL.—Not later than 60 days tential termination costs and of increased MONTH after the date of the enactment of this Act, contract costs due to renegotiation and rein- Mr. WHITEHOUSE. I ask unanimous or by October 30, 2012, whichever is earlier, statement of contracts; the President shall submit to Congress a de- (iii) for direct spending— consent the Senate proceed to S. Res. tailed report on the sequestration required (I) an estimate for the defense and non- 503, submitted earlier today. by paragraphs (7)(A) and (8) of section 251A defense functions based on current law of the The PRESIDING OFFICER. The of the Balanced Budget and Emergency Def- sequestration percentages and amount nec- clerk will report. icit Control Act of 1985 (2 U.S.C. 901a) for fis- essary to achieve the required reduction; The bill clerk read as follows: cal year 2013 on January 2, 2013. (II) a specific identification of the reduc- A resolution (S. Res. 503) designating June (B) ELEMENTS.—The reports required by 2012 as ‘‘National Aphasia Awareness Month’’ subparagraph (A) shall include— tions required for each nonexempt direct spending account at the program, project, and supporting efforts to increase awareness (i) for discretionary appropriations— of aphasia. (I) an estimate for each category, of the se- and activity level; and questration percentages and amounts nec- (III) a specific identification of exempt di- There being no objection, the Senate essary to achieve the required reduction; and rect spending accounts at the program, proceeded to consider the resolution. (II) an identification of each account to be project, and activity level; and Mr. WHITEHOUSE. Mr. President, I sequestered and estimates of the level of (iv) any other data or information that ask unanimous consent the resolution sequestrable budgetary resources and result- would enhance public understanding of the be agreed to, the preamble be agreed ing outlays and the amount of budgetary re- sequester and its effect on the defense and to, the motions to reconsider be laid sources to be sequestered and resulting out- nondefense functions of the Federal Govern- upon the table, with no intervening ac- lay reductions at the program, project, and ment including the impact on essential pub- activity level, using enacted levels of appro- tion or debate, and any statements be lic safety responsibilities such as— printed in the RECORD. priations for accounts funded pursuant to an (I) homeland security, food safety, and air enacted regular appropriations bill for fiscal The PRESIDING OFFICER. Without traffic control activities; year 2013, and estimates pursuant to a cur- objection, it is so ordered. (II) an assessment of the impact of cuts to rent rate continuing resolution for accounts The resolution (S. Res. 503) was not funded through an enacted appropria- programs that the Nation’s farmers rely on agreed to. tions measure for fiscal year 2013; to help them through difficult economic The preamble was agreed to. (ii) for non-defense discretionary spending times; and The resolution, with its preamble, only— (III) an assessment of the impact of Medi- reads as follows: (I) a list of the programs, projects, and ac- care cuts to the ability for seniors to access S. RES. 503 tivities that would be reduced or terminated; care. (II) an assessment of the jobs lost directly (3) REPORT BY THE SECRETARY OF DE- Whereas aphasia is a communication im- though program and personnel cuts; FENSE.— pairment caused by brain damage that typi- (III) an estimate of the impact program (A) IN GENERAL.—Not later than August 15, cally results from a stroke; cuts would have on the long-term competi- 2012, the Secretary of Defense shall report on Whereas aphasia can also occur with other tiveness of the United States and its ability the impact on national defense accounts as neurological disorders, such as a brain tumor; to maintain its lead on research and develop- defined by paragraphs (7)(A) and (8) of sec- Whereas many people with aphasia also ment, as well as the impact on our national tion 251A of the Balanced Budget and Emer- have weakness or paralysis in the right leg goal to graduate the most students with de- gency Deficit Control Act of 1985 (2 U.S.C. grees in in-demand fields; and right arm, usually due to damage to the 901a) using enacted levels of appropriations (IV) an assessment of the impact of pro- left hemisphere of the brain, which controls for accounts funded pursuant to an enacted gram cuts to education funding across the language and movement on the right side of country, including estimates on teaching regular appropriations bill for fiscal year the body; jobs lost, the number of students cut off pro- 2013, and estimates pursuant to a current Whereas the effects of aphasia may include grams they depend on, and education re- rate continuing resolution for accounts not a loss of, or reduction in, the ability to sources lost by States and local educational funded through an enacted appropriations speak, comprehend, read, and write, but the agencies; measure for fiscal year 2013 as the levels to intelligence of a person with aphasia re- (V) an analysis of the impact of cuts to which the sequestration should be applied. mains intact; programs middle class families and the most (B) ELEMENTS OF THE DEFENSE REPORTS.— Whereas, according to the National Insti- vulnerable families depend on, including es- The report required by subparagraph (A) tute of Neurological Disorders and Stroke timates of how many families would lose ac- shall include the following: (referred to in this preamble as the cess to support for children, housing and nu- (i) An assessment of the impact on ongoing ‘‘NINDS’’), strokes are the third-leading trition assistance, and skills training to help operations and the safety of United States cause of death in the United States, ranking workers get better jobs; military and civilian personnel. behind heart disease and cancer; (VI) an analysis of the impact on small (ii) An assessment of the impact on the Whereas strokes are a leading cause of se- business owners’ ability to access credit and readiness of the Armed Forces, including im- rious, long-term disability in the United support to expand and create jobs; pacts to steaming hours, flying hours, and States; (VII) an assessment of the impact to public Whereas the NINDS estimates that there full spectrum training miles, and an esti- safety, including an estimate of the reduc- are approximately 5,000,000 stroke survivors mate of the increase or decrease in readiness tion of police officers, emergency medical in the United States; (as defined in the C status C–1 through C–5). technicians, and firefighters; Whereas the NINDS estimates that people (VIII) a review of the health and safety im- (iii) A detailed estimate of the reduction in in the United States suffer approximately force of civilian personnel, including the es- pact of cuts on communities, including the 750,000 strokes per year, with about 1⁄3 of the impact on food safety, national border secu- timated timing of such reduction in force ac- strokes resulting in aphasia; rity, and environmental cleanup; tions and timing of reduction in force notifi- Whereas, according to the NINDS, aphasia (IX) an assessment of the impact of seques- cations thereof. affects at least 1,000,000 people in the United tration on environmental programs that pro- (iv) A list of the programs, projects, and States; tect the Nation’s air and water, and safe- activities of the Department of Defense that Whereas the NINDS estimates that more guard children and families; would be reduced or terminated and the ex- than 200,000 people in the United States ac- (X) assessment of the impact of sequestra- pected savings for each program, project and quire aphasia each year; tion on the Nation’s infrastructure, includ- activity. Whereas the people of the United States ing how cuts would harm the ability of (v) An estimate of the number and value of should strive to learn more about aphasia States and communities to invest in roads, all contracts that will be terminated, re- and to promote research, rehabilitation, and bridges, and waterways; structured, or revised in scope, including an support services for people with aphasia and (XI) an assessment of the impact on ongo- estimate of potential termination costs and aphasia caregivers throughout the United ing government operations and the safety of of increased contract costs due to renegoti- States; and Federal Government personnel; ation and reinstatement of contracts. Whereas people with aphasia and their (XII) a detailed estimate of the reduction (vi) An assessment of the impact on the caregivers envision a world that recognizes in force of civilian personnel as a result of the ‘‘silent’’ disability of aphasia and pro- ability of the Department of Defense to sequestration, including the estimated tim- vides opportunity and fulfillment for people carry out the National Military Strategy of ing of such reduction in force actions and the affected by aphasia: Now, therefore, be it timing of reduction in force notifications the United States, and any changes to the Resolved, That the Senate— thereof; and most recent Risk Assessment of the Chair- (1) designates June 2012 as ‘‘National Apha- (XIII) an estimate of the number and value man of the Joint Chiefs of Staff under sec- sia Awareness Month’’; of all contracts that will be terminated, re- tion 153(b) of title 10, United States Code, (2) supports efforts to increase awareness structured, or revised in scope as a result of arising from sequestration. of aphasia;

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(3) recognizes that strokes, a primary terror took place without a full and public THE JUDICIARY cause of aphasia, are the third-largest cause commemoration of the gravity of this tragic KATHERINE POLK FAILLA, OF NEW YORK, TO BE of death and disability in the United States; event for all Olympians and all humankind: UNITED STATES DISTRICT JUDGE FOR THE SOUTHERN (4) acknowledges that aphasia deserves Now, therefore, be it DISTRICT OF NEW YORK, VICE DENISE COTE, RETIRED. TROY L. NUNLEY, OF CALIFORNIA, TO BE UNITED more attention and study to find new solu- Resolved, That the Senate— STATES DISTRICT JUDGE FOR THE EASTERN DISTRICT tions for people experiencing aphasia and (1) should observe a minute of silence to OF CALIFORNIA, VICE GARLAND E. BURRELL, JR., RETIR- their caregivers; commemorate the 40th anniversary of the ING. SHERI POLSTER CHAPPELL, OF FLORIDA, TO BE (5) supports efforts to make the voices of 1972 Munich Olympics terrorist attack and UNITED STATES DISTRICT JUDGE FOR THE MIDDLE DIS- people with aphasia heard, because people remember those who lost their lives; TRICT OF FLORIDA, VICE GREGORY A. PRESNELL, RE- with aphasia are often unable to commu- (2) urges the International Olympic Com- TIRED. nicate with others; and mittee to take the opportunity afforded by IN THE ARMY (6) encourages all people in the United the 40th anniversary of the 1972 Munich THE FOLLOWING NAMED OFFICER FOR APPOINTMENT States to observe National Aphasia Aware- Olympics terrorist attack to remind the IN THE UNITED STATES ARMY TO THE GRADE INDICATED ness Month with appropriate events and ac- world that the Olympics were established to UNDER TITLE 10, U.S.C., SECTION 624: tivities. send a message of hope and peace through To be brigadier general sport and athletic competition; and f COL. CLAYTON M. HUTMACHER (3) urges the International Olympic Com- IN THE AIR FORCE SUPPORTING A MINUTE OF SI- mittee to recognize with a minute of silence LENCE AT THE 2012 OLYMPICS at the 2012 Olympics Opening Ceremony THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT TO THE GRADES INDICATED IN THE REGULAR AIR FORCE OPENING CEREMONY those who lost their lives at the 1972 Munich UNDER TITLE 10, U.S.C., SECTION 531: Olympics in an effort to reject and repudiate To be lieutenant colonel Mr. WHITEHOUSE. Mr. President, I terrorism as antithetical to the Olympic ask unanimous consent the Senate pro- goal of peaceful competition. UCHENNA L. UMEH ceed to S. Res. 504, submitted earlier f To be major today. DANIEL X. CHOI The PRESIDING OFFICER. The ORDERS FOR TUESDAY, JUNE 26, THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT clerk will report the resolution by 2012 TO THE GRADE INDICATED IN THE UNITED STATES AIR FORCE UNDER TITLE 10, U.S.C., SECTION 624: title. Mr. WHITEHOUSE. Mr. President, I To be colonel The bill clerk read as follows: ask unanimous consent that when the CATHERINE M. FAHLING A resolution (S. Res. 504) expressing sup- Senate completes its business today, it MATTHEW R. GRANT port for the International Olympic Com- adjourn until 10 a.m. on Tuesday, June DAWN D. HANKINS mittee to recognize with a minute of silence 26; that following the prayer and SCOTT E. HARDING DANIEL J. HIGGINS at the 2012 Olympics Opening Ceremony the pledge, the Journal of proceedings be KEVIN J. HUYSER athletes and others killed at the 1972 Munich approved to date, the morning hour be HEATHER E. LOBUE Olympics. LANCE E. MATHEWS deemed expired, and the time for the RICHARD J. MCDERMOTT There being no objection, the Senate two leaders be reserved for their use WENDY L. SHERMAN MARK D. STOUP proceeded to consider the resolution. later in the day; that the first hour of REBECCA R. VERNON Mr. WHITEHOUSE. Mr. President, I debate be equally divided and con- DAVID A. WHITEFORD ask unanimous consent the resolution trolled between the two leaders or LE T. ZIMMERMAN THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT be agreed to, the preamble be agreed their designees, with the Republicans TO THE GRADE INDICATED IN THE UNITED STATES AIR to, the motions to reconsider be laid controlling the first half and the ma- FORCE UNDER TITLE 10, U.S.C., SECTION 624: upon the table, with no intervening ac- jority controlling the final half; that To be lieutenant colonel tion or debate, and any statements be the Senate recess from 12:30 p.m. until LANCE A. AIUMOPAS 2:15 p.m. to allow for the weekly caucus ANTHONY W. BELL printed in the RECORD. ALLAN S. BROCK The PRESIDING OFFICER. Without meetings; further, that at 2:15 p.m. DAVID H. CAZIER there be 6 hours 15 minutes of debate BRADLEY A. CLEVELAND objection, it is so ordered. THOMAS F. COLLICK The resolution (S. Res. 504) was remaining postcloture on the motion MICHELLE L. CRAWFORD to concur in the House message to ac- PAUL A. DAWSON agreed to. JOHN S. FREDLAND The preamble was agreed to. company S. 3187, the FDA bill, with 2 LORI M. GILL The resolution, with its preamble, hours under the control of Senator TOBIN C. GRIFFETH ANTHONY S. GUNN reads as follows: HARKIN, 4 hours under the control of MICHAEL A. HATTON Senator BURR, and 15 minutes under CRYSTAL D. HAYNES S. RES. 504 FRANCIS D. HOLLIFIELD III the control of Senator PAUL. Whereas, in September 1972, in the midst of CANDACE L. HUNSTIGER the Munich Olympics, the core spirit of the The PRESIDING OFFICER. Without KEVIN C. INGRAM objection, it is so ordered. ROBERT WILLIAM JARMAN Olympics was violated when members of the AARON G. LAKE Black September Palestinian terrorist group f RYAN J. LAMBRECHT murdered eleven members of the Israeli MARK B. MCKIERNAN PROGRAM TYLER E. MERKEL Olympic Team consisting of athletes, coach- JOHN E. OWEN es, and referees; Mr. WHITEHOUSE. Under the pre- JOY L. PRIMOLI JASON SCOTT ROBERTSON Whereas one West German police officer vious order, the Senate will proceed to TAMMIE L. SLEDGE was also killed in the terrorist attack; executive session at 11:30 a.m. tomor- SHAUN S. SPERANZA Whereas the international community was BRIAN M. THOMPSON row and vote on confirmation of the BRENDON K. TUKEY deeply touched by the brutal murders at the Rosenbaum nomination at noon. We TARA L. VILLENA Munich Olympics and memorials have been also hope to complete action on the JOSHUA D. YANOV placed around the world, including in Rock- FRANK YOON land County, New York, United States; Man- FDA bill. ROBERT S. ZAUNER f THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT chester, United Kingdom; Tel Aviv, Israel; TO THE GRADE INDICATED IN THE UNITED STATES AIR and Munich, Germany; ADJOURNMENT UNTIL 10 A.M. FORCE UNDER TITLE 10, U.S.C., SECTION 624: Whereas the International Olympic Com- TOMORROW To be lieutenant colonel mittee has an obligation and the ability to JAMES H. ABBOTT fully and publicly promote the ideals em- Mr. WHITEHOUSE. Mr. President, if ALEXANDER L. ACKERMAN bodied in the Olympic Charter, which states, there is no further business to come be- MARK T. ADAMS ‘‘The goal of Olympism is to place sport at SEAN W. ADCOCK fore the Senate, I ask unanimous con- EDUARDO D. AGUILAR the service of the harmonious development sent that it adjourn under the previous RICHARD M. AGUIRRE of humankind, with a view to promoting a JONATHAN E. AIRHART order. ALAN P. ALBERT peaceful society concerned with the preser- There being no objection, the Senate, vation of human dignity.’’ WILLIAM P. ALCORN, JR. at 7:10 p.m. adjourned until Tuesday, BRIAN M. ALEXANDER Whereas no opening ceremonies of any MATTHEW W. ALEXANDER Olympics since 1972 have marked an official June 26, 2012, at 10 a.m. TRENTON R. ALEXANDER CARLOS L. ALFORD recognition of the terrorist attack that bru- f SCOTT M. ALFORD tally betrayed the vision of the Olympic NOMINATIONS BERNIE L. ALLEMEIER Games; and MARK S. ALLEN PAMELA A. ALLEY Whereas the London Olympic Games in Executive nominations received by RUSSELL P. ALLISON 2012 will mark four decades since this act of the Senate: ALAN S. ALSOP

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KIMANI H. ALSTON SCOTT M. BREECE RONALD S. CRABTREE RICHARD C. ALTOBELLO EDWARD J. BRENNAN MARTIN H. CRAWFORD CARLOS X. ALVARADO MATTHEW SEAN BRENNAN RHONDA R. CRAWFORD DAVID R. ANDERSON BRADLEY M. BREWINGTON ROLANDIS J. CRAWL JOSHUA C. ANDERSON TY C. BRIDGE WILLIAM J. CREEDEN QUINTIN D. ANDERSON MATTHEW H. BRIGGS JOHN B. CREEL SCOTT M. ANDERSON DEREK T. BRIGHT SHANE M. CRIPPEN MARK E. ANDREWS JASON H. BRIGHTMAN LUTHER THOMAS CROSS CRAIG R. ANDRLE PAUL D. BRISTER THOMAS A. CROSS JAVIER I. ANTUNA MARC A. BROCK ERIC W. CROWELL DAVID K. ARAGON TONYA J. BRONSON EDGARDO CRUZ VELEZ JOHN M. ARELLANES COREY M. BROUSSARD GEORGE M. CUNDIFF, JR. CLINTON J. ARMANI ANGELIQUE P. BROWN VINCENT J. DABROWSKI DAVID J. ARMITAGE CORY L. BROWN PAUL G. DAMBRAUSKAS HEATHER M. ARMSTRONG DANIEL J. BROWN ROBERT WILLIAM DAVIS FRANK S. ARNOLD DOUGLAS A. BROWN GEOFFREY D. DAWSON MICHELLE ARTOLACHIPE JAMES E. BROWN RICHARD E. DAWSON MATTHEW M. ASHTON JERRY R. BROWN STEPHEN J. DAWSON ROBERT M. ATKINS MATTHEW C. BROWN FLORIAN C. DE CASTRO BRYAN C. AULNER MICHAEL L. BROWN KENNETH L. DECKER, JR. NEIL O. AURELIO RENARDO M. BROWN CONNIE R. DEIM THOMAS D. AUSHERMAN MICHELE A. BRUEMMER DANNY L. DEKINDER BRANDON J. AVELLA DAWSON A. BRUMBELOW JOHN F. DELAHANTY RUSSELL J. AYCOCK PAUL W. BRYANT CHERYL M. DELOUGHERY SHAWN R. AYERS JEFFREY H. BUCKLAND BRIAN A. DENARO CHRISTOPHER L. AYRE GRANT C. BUCKS MARC F. DESHAIES SOLOMON R. BAASE JASON J. BUDNICK DANIEL S. DEYOUNG BRIAN T. BACKMAN CORY F. BULRIS JOSE DIAZ DE LEON DONNY LYNN BAGWELL JEFFREY A. BURDETTE JONATHAN R. DIAZ JESSE M. BAKER CHAD N. BURDICK BRIAN M. DICKENSON KRISTEN D. BAKOTIC JONATHAN E. BURDICK DRU D. DICKERSON DAVID A. BALDA CORNELL A. BURGESS JONATHAN M. DIETRICH BRENT N. BALDWIN VICTOR L. BURGOS, JR. WADE E. DILLARD ROBIN E. BALDWIN BRIAN J. BURKE NATHAN P. DILLER LEE E. BALLARD, JR. EDWARD A. BURKE IAN M. DINESEN BRIAN P. BALLEW DAVID M. BURNETT MICHAEL E. DINWIDDIE DAVID M. BANKER KENNETH R. BURTON, JR. NICHOLAS M. DIPOMA CHARITY A. BANKS DEANO A. BUSCH MARK C. DMYTRYSZYN JOSEPH A. BANKS RICHARD J. BUSH BYRON W. DOBBS MARK E. BARAN KATHLEEN D. BUSS ALAN F. DOCAUER MATTHEW R. BARFUSS SCOTT D. BUSSANMAS BRYAN C. DOCKTER GARY L. BARKER MATTHEW J. BUTLER JAMES P. DOHERTY ZACHARY N. BARKER ANTHONY P. CALABRESE MEGHAN B. DOHERTY CHARLES D. BARKHURST AL J. CALDWELL II MICHAEL S. DOHERTY AARON R. BARNES BYRON J. CALHOUN JEFFREY J. DONATO JASON R. BARNES KATHERINE A. CALLAGHAN JEFFREY A. DONHAUSER JEFFREY A. BARNES RUSSELL C. CALLAWAY GARY L. DONOVAN WILLIAM A. BARRON BENJAMIN R. CAMERON BRENT D. DORSEY DANIEL W. BARROWS JASON A. CAMILLETTI JASON C. DOSTER KARL A. BASHAM ELIZABETH A. CAMPBELL HENRY J. DRAKE CLAYTON MICHAEL BASKIN JENNIFER M. B. CAMPBELL KILE R. DREHER ROGER W. BASS NATHAN E. CAMPBELL ANDREW D. DRIES PATRICK H. BAUM JAMES F. CAPLINGER STEVEN J. DRINNON STEVEN D. BAUMAN SOFIA E. CARABALLO GARCIA JOSHUA P. DROZ IAN S. BAUTISTA TROY D. CARR SCOTT B. DUBSKY STEVEN M. BEATTIE II BRIAN C. CARROLL KRISTIN N. DUBY JOHN R. BEATTY JONATHAN T. CARTER ERIK N. DUNN BRANDON M. BEAUCHAN FREDERICK V. CARTWRIGHT TROY A. DUPONT CHANDRA MARIE BECKMAN ANTHONY S. CARVER BRANDON C. DURANT BECKY M. BEERS BRENDAN K. CASEY MICHAEL J. DURBAND BRYAN E. BEIGH CHRISTOPHER R. CASSEM APRIL D. DWYER AARON J. BELL DAVID P. CASSON MICHAEL T. DYE CHRISTOPHER P. BELL TONY CASTILLO WESLEY B. EAGLE JASON B. BELL DAVID A. CASTOR HEATHER E. EASTLACK RONALD B. BELLAMY ALEXANDER CASTRO DANIEL A. EBERT CASIMIRO BENAVIDEZ III ERICK J. CASTRO JOHN R. ECHOLS RODERICK L. BENNETT RAYMOND E. CASTRO BRYAN D. EDMUNDS TODD J. BENSON BRIAN C. CHELLGREN DIMEATRIUS A. EDWARDS CASSIUS T. BENTLEY III DOMINIC V. CHIAPUSIO MATTHEW R. EDWARDS SAMMUEL C. BERENGUER MARC A. CHIASSON JOSEPH J. EGRESITS DANIEL P. BERG DAMON R. CHIDESTER KEVIN J. EHRICH CHRISTEL R. BERGIN BRIAN S. CHOATE DAVID A. EHRLICH DAVID J. BERKLAND CORY R. CHRISTOFFER BRYAN A. ELDER CHRISTOPHER D. BERNARD GEOFFREY I. CHURCH JONATHAN E. ELDRIDGE MATTHEW O. BERRY JOHN J. CLAGNAZ JOSEPH S. ELKINS MATTHEW J. BERTSCH JOSEPH T. CLANCY CHAD R. ELLSWORTH JOHN R. BEURER CHRISTOPHER G. CLARK SARAH L. EMORY DAVID A. BICKERSTAFF JAMES M. CLARK ROXANE E. ENGELBRECHT JOEL K. BIEBERLE ROBERT P. CLARK JOHN M. ENGESSER JOSEPH M. BIEDENBACH STEVEN A. CLARK MICHAEL J. ENGLEHARDT LISA M. BIEWER CYNTHIA R. CLEFISCH KEITH E. ENGLIN ERIC R. BIPPERT WILLIAM C. CLEMENTS KIRBY M. ENSSER DENNIS R. BIRCHENOUGH GEORGE W. CLIFFORD III JOEL E. EPPLEY PETER J. BIRCHENOUGH SUMMER A. CLOVIS CHAD M. ERICKSON MATTHEW J. BISSELL REBECCA ANN COBB RAYMOND R. ERICKSON ALLISON K. BLACK DANIEL J. CODDINGTON RICHARD D. ERKKILA BRETT T. BLACK DANIEL J. COE MICHAEL A. EVANCIC RICHARD E. BLAGG, JR. RYAN M. COLBURN JACK R. EVANS ROBERT B. BLAKE MATTHEW W. COLDSNOW MICHAEL A. EVANS JACK A. BLALOCK ANTHONY R. COLE ROBERT E. EVERT JAMES S. BLANCHARD MATTHEW F. COLEMAN JOSEPH R. EWING MATTHEW G. BLAND MICHAEL A. COLEMAN ELIZABETH J. EYCHNER JEFFREY A. BLANKENSHIP ROLAND M. COLINA EMILY E. FARKAS DAVID B. BLAU BRIAN P. COLLINS ERICKA S. FARMERHILL ANTHONY J. BLEVINS WILLIAM J. COLLINS PATRICK F. FARRELL EMIL L. BLISS WILLIAM T. COLLINS MARK J. FAULSTICH HEATHER BRANDT BOGSTIE DANIEL S. COLLISTER JAMES R. FEE, JR. RYAN M. BOHNER MICHAEL L. COLSON JACK M. FELICI SCOTT A. BOLE NATHAN T. COLUNGA JAMES S. FERGUSON KEVIN P. BOLLINO LISA M. COMBS JAMES S. FERNANDEZ JOHN P. BORAH KYLE M. CONE PAUL P. FIDLER MATTHEW R. BORGOS SHAWN R. CONES ERIK J. FIEDERER JOHN F. BOROWSKI CORY A. COOK PATRICK N. FIEG JOY E. BOSTON RUSSELL P. COOK BRIAN A. FILLER DOUGLAS J. BOUTON WILLIAM C. COOK JEFFREY A. FINDLEY TERRY J. BOWLES HEATHER D. COOLEY JONATHAN S. FINDLEY AARON J. BOYD JAMES C. COOPER DANIEL E. FINKELSTEIN TRAVIS J. BRABEC JASON L. COOPER SEAN M. FINNAN DANIEL A. BRADFORD PHILLIP M. CORBELL BRADY S. FISCHER MATTHEW S. BRADFORD DANIEL J. CORDES GRANT A. FISH ERIN K. BRADLEY CHRISTOPHER L. CORN KEVIN D. FISHER HEATHER D. BRAGG DANIEL L. CORNELIUS BARY D. FLACK SEAN S. BRAMMER-HOGAN JAMES RONALD COUGHLIN RYAN W. FLEISHAUER MARVIN T. BRANAN LAUREN COURCHAINE JASEM R. FLEMING JAMISON D. BRAUN KARL K. COWART LARRY B. FLETCHER, JR. ROBERT A. BRAXTON LELAND K. COWIE NATHAN D. FLINT KEVIN R. BRAY JOSEPH D. COX GARRY S. FLOYD

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ANDREW M. FOGARTY MATTHEW L. HANNON WILLIAM F. JULIAN PHILIP M. FORBES ELIZABETH A. HANSON KELLY F. KAFEYAN CHRISTOPHER L. FORD ROBERT W. HARDER OLIVER M. KAHLER III JASON M. FORD TAMMY A. HARDER ALISON L. KAMATARIS JENNIFER S. FORD JAMES M. HARMON ROBERT J. KAMMERER CHRISTOPHER D. FORREST JASON C. HARRIS THOMAS D. KANAK III LESLIE Y. FORRESTER JOHN N. HARRIS JASON P. KANE RICHARD B. FOSTER JOSHUA J. HARTIG PAUL R. KASTER, JR. WILLIAM W. FOSTER JASON W. HAVEL ZOLTAN V. KASZAS DOUGLAS J. FOWLER CHARLES H. HAWKINS JEFFREY A. KATZMAN JOSEPH B. FRAMPTOM CHRISTOPHER G. HAWN CHRIS A. KAUFMAN GREGORY G. FRANA MATTHEW A. HAYDEN BRETT N. KAYES BRYAN T. FRANCE NEAL W. HAYES ROSS A. KEENER KEITH G. FRANCIS MICHAEL P. HEALY JOHN B. KELLEY NICOLE H. FRANCIS CLINTON M. HEATON THOMAS F. KELLY TYLER P. FRANDER CHRISTOPHER M. HEBER JEFFREY M. KENNEDY JOSHUA N. FRANK JOHN P. HEIDENREICH ERICH J. KESSLER NIKKI RENEE FRANKINO CHRISTOPHER C. HEIM RICHARD CARROL KIEFFER JERRY L. FRAZIER DOUGLAS J. HELLINGER ANTHONY K. KIMBROUGH RYAN PAUL FRAZIER JAY C. HENNETTE BARRY A. KING II CHARLES M. FREEL ANDREW M. HENSON JASON M. KING JACOB A. FREEMAN WILLIAM C. HEPLER JOHN P. KINNISON MICHAEL A. FREEMAN JARED D. HERBERT JASON E. KINZER PAUL B. FREEMAN JAIME I. HERNANDEZ MICHAEL T. KIRKPATRICK WILLIAM K. FREEMAN WILLIAM R. HERSCH CHARLES KISTLER HUGH J. FREESTROM CHE S. HESTER JOSEPH R. KLEEMAN MICHAEL R. FREIMARCK MARK R. HEUSINKVELD SCOTT L. KLEMPNER LUCAS A. FRICKE JAMES V. HEWITT TONYA M. KLEMPP GEOFFREY S. FUKUMOTO ALAN J. HIETPAS DARYL S. KLENDA BRANDON S. FULLER SCOTT R. HIGGINBOTHAM JEREMIAH O. KLOMP JASON S. FULLER TIMOTHY J. HIGGINS RYAN T. KNAPP NICOLE E. FULLER DENNIS F. HIGUERA JASON D. KNOWLES ERIC M. FURMAN JAMES R. HILBURN CHEREE S. KOCHEN JEAN JACQUES FUTEY JASON C. HILBURN SCOTT D. KOECKRITZ JOSEPH D. GADDIS JUSTIN M. HILL THOMAS R. KOOTSIKAS ALLISON M. GALFORD BRIAN O. HINKEN CLAY M. KOSCHNICK JOHN B. GALLEMORE GARNER F. HIXSON, JR. ANDREW J. KOWALCHUK JEFFREY M. GALLOWAY JARRETT M. HLAVATY BRIAN D. KOZOLA DANIEL A. GALLTON DANIEL S. HOADLEY MELISSA A. KRAMBECK BRIAN J. GAMBLE VINCENT E. HODGES JOSEPH K. KRAMER FRED E. GARCIA CALVIN C. HODGSON KAREN N. KRAYBILL RICARDO R. GARCIA TIMOTHY J. HOFMAN ZACHARY J. KRBEC MICHAEL L. GARGASZ GREGG J. HOLASUT BRIAN C. KREITLOW TIMOTHY R. GARLAND RICHARD N. HOLIFIELD, JR. JAMES HERBERT KRISCHKE JASON M. GARRISON CHRISTOPHER C. HOLLAND ANTHONY J. KUCZYNSKI ROBERT E. GARRISON JEFFREY G. HOLLAND DEVIN M. KUDLAS DARIUS V. GARVIDA CORY S. HOLLON KENNETH P. KUEBLER ERIC R. GAULIN DAVID M. HOLM JASON L. KUHNS JULIE M. GAULIN PATRICE O. HOLMES JOHN KURIAN JEREMY D. GEASLIN TERRANCE J. HOLMES TODD P. LADD JASON W. GEITGEY CHAD A. HOLT ROSENDO C. LAMIS, JR. ALGERD A. GERALT BRYAN K. HOLZEMER DONALD L. LAND, JR. MICHAEL P. GERANIS KEVIN D. HORNBURG RYAN J. LANDMANN TREVOR F. GERSTEN THOMAS J. HORNIK JOEL L. C. LANE JOHN F. GETGOOD JASON D. HORTON NATHAN P. LANG MATTHEW C. GETTY SEAN A. HOSEY ROBERT V. LANKFORD JAMES B. GHERDOVICH ANDREW K. HOSLER ARMON E. LANSING, JR. AARON D. GIBSON TRAVIS G. HOWELL JAMES H. LARKIN JEREMY R. GILBERTSON KEVIN S. HUBER JOSHUA A. LARSEN MICHELLE E. GILLASPIE BETH A. HUFFMAN IAN B. LAUGHREY ADAM E. GIZELBACH JASON M. HUGHES PATRICK R. LAUNEY ROSS K. GLEASON JOSHUA F. HUGHES FRANK W. LAZZARA JASON R. GLOVER STEPHANI D. HUNSINGER DAVID A. LEACH CHRISTOPHER R. GOAD RUSSELL T. HUNT KIM T. LEBA PATRICK MICHAEL GODFREY SHANE M. HUPP MATTHEW G. LEDDY TIMOTHY M. GONYEA MATTHEW S. HUSEMANN DAVID M. LEDERER BIRMANIA M. GONZALEZ MATTHEW J. IMPERIAL JORDAN D. LEE GERARDO O. GONZALEZ WILLIAM E. IRVIN MARION J. F. LEE MICHAEL P. GOOD JACOB T. JACKSON MAURICE L. LEE DAVID P. GOODE JEFFREY W. JACKSON ROBERT H. LEE, JR. VANCE GOODFELLOW MARCUS D. JACKSON JOSEPH D. LEGRADI JOHN T. GOODSON III VINCENT M. JACOBS JASON L. LEMONS RANDEL J. GORDON GLENN C. JACOBSON ADAM G. LENFESTEY RYAN E. GORECKI MICHAEL W. JACOBSON NYREE D. LENSCH MARK D. GOULD GENE A. JACOBUS ANDREW J. LEVIEN JAMES P. GOVIN JASON W. JAMES JARRETT R. LEWIS BRENT W. GRAHAM MATTHEW B. JAMES KYLE S. LEWIS DAVID R. GRAHAM KEVIN M. JAMIESON TYLER E. LEWIS JONATHAN W. GRAHAM JENNIFER L. JEFFORDS WILLIAM H. LEWIS JORDAN G. GRANT HENRY R. JEFFRESS PETER J. LEX TODD D. GRANT WILLIAM H. JELKS STEVEN X. LI NICOLAUS P. GRAUER ANDREW B. JENNINGS CHRISTIAN F. LICHTER CHRISTOPHER P. GRAVES JEFFREY T. JENNINGS JAMES R. LIDDLE, JR. MYERS S. GRAY MARTIN T. JENNINGS MICHAEL E. LIM SCOTT A. GREATHOUSE JASON D. JENSEN JEFFREY H. LIN MERRICK J. GREEN TODD M. JENSEN SCOTT C. LINCK DONALD R. GREENE GREGG W. JEROME DAVID B. LINDLER KARA M. GREENE JAYME J. JIMENEZ LASHAUNA R. LINDSEY MARC E. GREENE JORGE I. JIMENEZ ERIC J. LINGLE BRIAN JAMES GRETE JOSE E. JIMENEZ, JR. RONALD M. LLANTADA JUSTIN T. GRIEVE ANTHONY L. JIOVANI MICHELE A. LOBIANCO ANDREW J. GRIFFIN SAMUEL L. JOBE JASON K. LOE GILBERT S. GRIFFIN NIDAL M. JODEH ANDREW J. LOFTHOUSE MICHELLE L. GRIFFITH JUSTIN L. JOFFRION ERIC S. LOPEZ KEVIN S. GRISWOLD SHERMAN E. JOHNS OSVALDO S. LOPEZ-TORRES KIMBERLY L. GROVER DANIEL C. JOHNSEN JOHN J. LOSINSKI EDWARD B. GRUNDEL BRYAN C. JOHNSON EDMUND X. LOUGHRAN II LIZABETH M. GRUPE CHRISTOPHER D. JOHNSON CHARLES M. LOYER ERIN R. GULDEN MICHAEL GERARD JOHNSON BRANDON M. LUCAS EDWARD J. GUSSMAN ROBERT W. JOHNSON PETER J. LUECK JOHN M. GUSTAFSON RUSSELL K. JOHNSON BRIAN D. LUKOWSKI JUNG H. HA SAMUEL R. JOHNSON JONATHAN E. LUMINATI CHARLES R. HAAG TAMMY JOHNSON CHRIS D. LUNDY TROY L. HACKER ROSS T. JOHNSTON GEORGE B. LUSH MARK R. HADLEY DANIEL P. JOHNSTONE NICHOLAS A. LYNCH MICHAEL J. HAGAN RICHARD WILLIAM JOKINEN SUSAN A. LYNCH MARY C. HAGUE GREGORY M. JONES JANNELL C. MACAULAY JOHN M. HALE MARK S. JONES BRIAN S. MACFARLANE RUSSELL J. HALL MATTHEW W. JONES PATRICK O. MADDOX SCOTT J. HALL PAUL R. JONES KEVIN M. MADRIGAL NILS E. HALLBERG, JR. SABRINA A. JONES MICHAEL R. MAEDER DAN C. HAMAN KATHY LYNNE JORDAN ANGELINA M. MAGUINNESS JAMES R. HAMILTON GUSTAV J. JORDT JOHN K. MAH CHRISTOPHER B. HAMMOND JONATHAN M. JOSHUA JAYANT U. MAHAJAN CARL E. HANEY THOMAS R. JOST RYAN J. MAHONEY JAMES R. HANFORD AARON A. JUHL RICHARD MAJOR JONATHAN G. HANLEY MICHAEL P. JULATON DANNY K. MAKALENA

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ROBERT M. MAMMENGA SHARON A. NICKELBERRY MEGHAN M. RIPPLE MICHAEL L. MAMULA III RICARDO M. NIEVES TIMOTHY J. RITCHIE GEOFFREY C. MANN NICHOLAS A. NOBRIGA JOEL S. RIVARD JONATHAN P. MANTERNACH DOUGLAS A. NOCERA BRIAN M. ROBERTS FREDERICK W. MANUEL GEORGE E. NOEL LEEANN N. ROBERTS CHAD E. MARCHESSEAULT DUANE E. NORDEEN, JR. PAUL I. ROBERTS EDWIN J. MARKIE, JR. RYAN J. NORMAN RONALD W. ROBERTS, JR. TODD C. MARKWART KNEILAN K. NOVAK WILLIAM F. H. ROBERTS JAMES F. MARLOW RYAN J. NOVOTNY JOHN S. ROBIN GARY R. MARLOWE CELINA E. NOYES GREGORY A. ROBY BRANDON S. MAROON SHANE C. NOYES MATTHEW J. ROCHON MICHAEL A. MARSICEK RYAN D. NUDI JEFFREY W. ROCK JOHN K. MARTIN RYAN S. NYE REGINA D. ROCKEL PAUL L. MARTIN III BENJAMIN C. OAKES ANDREW L. RODDAN RICHARD W. MARTIN, JR. WILLIAM H. OBRIEN IV AUGUST G. ROESENER CALEB M. MARTINY RYAN G. OESTMANN JOSHUA D. ROGERS JAMES H. MASONER, JR. JOHN F. OKANE H WARREN ROHLFS MARK A. MASSARO SHAN P. OKEEFFE ERIC E. ROLLMAN ERNEST J. MATA CARL J. OLSEN ANDREW C. ROLPH PATRICK J. MATAK CHRISTOPHER M. OLSEN STEVEN M. ROSE TIMOTHY R. MATLOCK SUSAN R. OLSEN DAVID J. ROSS DANIEL D. MATTIODA ANDREW P. OLSON DORENE BETSY J. ROSS JOHN C. MATUSZAK JEREMY E. OLSON BRANDON T. ROTH ANDREA R. MAUGERI STEPHEN E. OLSON JOHN P. ROZSNYAI BRIAN P. MAYER MICHAEL C. OLVERA CHRISTOPHER T. RUBIANO JAMAAL E. MAYS CAROL L. ONEIL STUART M. RUBIO JOHN C. MCCLUNG BRENDA A. OPPEL CHRISTOPHER V. RUDD PATRICK J. MCCOY SHAWN K. ORBAN EMILIO RUIZSORIANO DANIEL C. MCCRARY BRAD E. ORGERON LOUIS J. RUSCETTA MATTHEW W. MCDANIEL KEVIN J. OSBORNE NATHAN L. RUSIN BOBBY R. MCDONALD BRIAN E. OSHEA JENNIFER M. RUSSELL TAMMY L. MCELHANEY DAVID J. OSTERMAN ERIN T. RYAN CHARLES B. MCFARLAND CHRISTOPHER S. OTIS MARK H. SADLER JAMES C. MCFARLAND COREY J. OTIS CLINTON R. SAFFO KENNETH C. MCGHEE KYLE F. OYAMA MILTON T. SALDIVAR MARK MCGILL STEVEN E. PACKARD ANTHONY J. SALVATORE JONATHAN W. MCGOWEN KRISTOFER F. PADILLA MICHAEL A. SAMUEL MATTHEW J. MCGUIRE SCOTT D. PALEN DANIEL A. SANABRIA SCOTT D. MCKEEVER ADAM A. PALMER DONALD J. SANDBERG ETHAN S. MCKENNA SAMUEL S. PALMER WYNN S. SANDERS BENJAMIN T. MCKENZIE MARTIN J. PANTAZE ANGEL A. SANTIAGO WAYNE W. MCLAUGHLIN KRISTIN L. PANZENHAGEN DAVID E. SARABIA MICHAEL A. MCMELLON CHARLES S. PARENT JEREMY C. SAUNDERS JUSTIN P. MCMILLIAN CHARLES M. PARKS MICHAEL J. SCALES JOHN E. MCMULLEN JEFFREY C. PARR MARK E. SCEPANSKY DENNIS JOHN MCNABB SCOTT M. PARTIN JARED W. SCHAFER TODD E. MCNEAL JOHN D. PATRICK MARK A. SCHEER JOHN M. MCQUADE JASON P. PAX MATTHEW T. SCHELLING WILLIAM E. MCTERNAN BRIAN J. PEARSON DANIEL G. SCHILLING ROBERT G. MEADOWS II PAUL M. PECONGA ROBERT A. SCHLESIGER THEODORE R. MEEK SCOTTY A. PENDLEY KARL F. SCHLUTER CHRISTOPHER B. MEEKER MARIO PEREZ RANDALL L. SCHMEDTHORST JOHN M. MEHRMAN ANDREW C. PERRY ERIC C. SCHMIDT JAMES K. MEIER JEFFREY A. PESKE MARK A. SCHMIDT JASON B. MELLO CHRISTINE M. PEYTON R ERIC SCHMIDT SHELLY L. MENDIETA MALCOLM N. PHARR SCOTT A. SCHMUNK BENJAMIN D. MENGES JENNIFER A. PHELPS RONALD D. SCHOCHENMAIER DEREK S. MENTZER AARON SCOTT PHILLIPS JOSEPH F. SCHOLES III KENNETH M. MERCIER AMY B. PHILLIPS ERIC P. SCHOMBURG CYNTHIA M. MESENBRINK DENNIS L. PHILLIPS TODD E. SCHOPMEYER MICHAEL W. MEYER JAMES D. PHILLIPS JASON N. SCHRAMM MATTHEW J. MICHAUD JEFFREY A. PHILLIPS RICHARD E. SCHREIBER BRYAN E. MIDDLEKAUFF AARON M. PIERCE ROBERT J. SCHREINER CHARLES J. MIDDLETON NATHAN R. PIERPOINT ERIC N. SCHULZE BRIAN E. MILLER DEVIN K. PIETRZAK MICHAEL J. SCHWAN JUSTIN J. MILLER CANDICE LINETTE PIPES FRANCIS J. SCOLARO PHILLIP E. MILLER STEPHEN C. PIPES NICHOLE K. A. SCOTT SETH A. MILLER JEFFREY W. PIXLEY THOMAS A. SCOTT SCOTT C. MILLS GREGORY S. PLEINIS JEREMY C. SEALS TED J. MILLS DAVID A. POKRIFCHAK THOMAS E. SEGARS, JR. CHAD M. MINER KELLY L. POLSGROVE EDWARD W. SEIBERT JOHN M. MIRTICH BYRON R. POMPA BENA E. SELLERS JERRY D. MISH DOYLE A. POMPA GREGORY A. SEVENING JASON M. MITCHELL MICHAEL E. PONTIFF ANTHONY T. SHAFER, JR. WILLIAM M. MITCHELL JAMES H. POPPHAN BRIAN P. SHAWARYN DEMETRIUS S. MIZELL CHRISTOPHER M. PORTELE PHILLIP A. SHEA JASON P. MOBLEY JACOB D. PORTER ANDREW J. SHEEHAN CRAIG A. MOCKLER MAYNARD J. PORTER III ROBERT W. SHEEHAN CHRISTOPHER A. MOELLER CALVIN B. POWELL NATHAN P. SHERMAN MICHAEL F. MONFALCONE ERVIN T. POWERS STEVEN SHEUMAKER ANTHONY T. MONTELEPRE GARRIN W. POWERS MICHELLE L. SHICKS CECILIA I. MONTES DE OCA CONRAD A. PREEDOM FRANKLIN C. SHIFFLETT ANN M. K. MONTGOMERY BRADLEY B. PRESTON RONALD S. SHIVERS JONATHON A. MONTGOMERY JOHN M. PRESTON TRAVIS W. SHOEMAKER CHRISTOPHER I. MOORE JASON M. PRIDDLE MICHAEL J. SHREVES TYTONIA S. MOORE ROBB J. PRITCHARD TODD H. SHUGART KARNA P. MORE MICHAEL D. PRITCHETT ANDREW J. SHURTLEFF FELIX J. MORET III KEVIN M. PRITZ DONALD C. SIEGMUND DARRIN D. MORGAN KYLE J. PUMROY SCOTT M. SIETING MICHAEL H. MORGAN KIMBERLY L. PURDON JOHN E. SILL THOMAS A. MORGAN LICHEN L. PURSLEY GHIA PLESHETTE SIMMONS BRENT J. MORRIS JAMES W. QUASHNOCK BRIAN M. SIMONIS SIRENA I. MORRIS ERICA K. RABE ELTON S. SLEDGE JASON M. MORRISON RYAN C. RABER JOEL A. SLOAN PHILIP G. MORRISON CHRISTOPHER R. RAINES DOMENIC SMERAGLIA TYLER W. MORTON SCOTT R. RALEIGH THOMAS A. SMICKLAS ROBERT J. MOSCHELLA AMY M. RAMMEL ADAM R. SMITH WAYNE MOSELY, JR. BRIAN D. RANDOLPH BERNARD C. SMITH MARIA V. MOSS TODD E. RANDOLPH BRIAN J. SMITH TIMOTHY T. MOTLEY MICHAEL L. RANERE DARYL E. SMITH WENDIE L. MOUNT LISA D. RAUK JIMMY W. SMITH MATTHEW R. MOYE BRANDEN L. RAY KRISTOFFER R. SMITH KURT E. MULLER DAVID C. REA MARIE E. SMITH DAVID M. MURPHY JAMES D. REAVES PHILIP D. SMITH JILL M. MURPHY ROY P. RECKER RODRIC S. SMITH JAMES J. MURRAY JEREMY R. REEVES SHANE R. SMITH ETHAN ALLEN MYERS MATTHEW R. REILMAN STEVE A. SMITH STEVEN L. NAPIER ROBERT L. REINHARD ZACHARY L. SMITH SEAN B. NEITZKE RYAN B. REINHARDT JOSHUA E. SNOW JARED C. NELSON JASON P. RENTER JASON E. SNYDER KATHRYN M. NELSON BENJAMIN D. RETZINGER D MICHAEL SOBERS, JR. NELS C. NELSON MATTHEW H. REYNOLDS JENNIFER L. SOLES KRISTEN A. NEMISH JAMIE M. RHONE BRITT E. SONNICHSEN BRENT M. NESTOR FRANKLIN E. RICH ROBERT L. SOUTHERLAND GEOFFREY O. NETTLES OLIVER I. RICK MICHAEL A. SPADA MARK D. NEWELL CHRISTOPHER A. RIDLON BRETT R. SPANGLER CHAD R. NICHOLS BROOKE A. RINEHART CLINT HOUSTON SPARKMAN

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JUSTIN B. SPEARS JACK G. WHEELDON III MASIH M. SOLTANI CARLY R. SPERANZA DONNY L. WHITE MARYSIA L. TAYLOR THARON SPERRY JAMES D. WHITE MICHAEL D. W. YAO TODD C. SPRISTER MEGAN A. WHITE KEVIN J. ZIMMERMAN BRIAN T. STAHL PETER J. WHITE To be senior assistant grade JOHN C. STALLWORTH WILLIAM P. WHITE BYRON D. STANCLIFF BERNABE F. WHITFIELD MARIAMA J. BAH-SOW SCOTT M. STANFORD JASON A. WHITTLE JASON B. BUENAVENTURA KIPLING D. STANTON SCOTT M. WIEDERHOLT NADIA HABAL THOMAS A. STAYER RYAN M. WIERZBANOWSKI YOLANDRA E. HANCOCK-BOWMAN JON A. STERLING DENNIS C. WILDE DREW A. HARRIS CHADWICK J. STERR MONTE A. WILEY ABAYOMI HENDJE BRADLEY R. STEVENS KEVIN S. WILLIAMS JASON D. HIPP PHILIP R. STEVENS PHELEMON T. WILLIAMS DAVID E. KAROL TIMOTHY J. STEVENS STUART A. WILLIAMSON AMARDEEP KAUR STEVEN K. STORMS RUSSELL S. WILLIFORD MELISSA I. KYRIAKAKIS DANY MARK STRAKOS MICHAEL A. WILLIS LILI MEISAMY VINCENT T. SULLIVAN III TYSON M. WILLIS NOELE P. NELSON CHAD L. SUMMITT CORY R. WILSON TIN H. NGUYEN BRIAN A. SURDYK DAVID L. WILSON II BRANDY L. PEAKER ANDREW J. SWARTZER JAMES A. WILSON RAJESH REDDY WESLEY W. SWEITZER HAROLD L. WILSTEAD MARK R. SCHECKELHOFF ROBERT G. SWIECH ERIC A. WINTERBOTTOM HWA J. SONG JAMIL D. SYED PHILLIP C. WINTERTON MICHAEL E. STITZER STEVEN D. SYLVESTER GREGORY S. WINTILL ERYNN M. TAIT BERNADETTE D. WISHOM To be assistant grade DAVID A. TALAFUSE PATRICK V. WNETRZAK NATHAN W. TARKOWSKI GLORIA AIDOO THOMAS B. WOLFE MERWIN A. TATEL AMANDA N. A. AKOGYERAM CARL F. WOOD BRIAN R. TAVERNIER SHANNON E. ALDRICH JOSHUA T. WOOD DAVID M. TAYLOR ASHLEY R. ALLMAN DOUGLAS W. WOODARD JASON G. TAYLOR CHRISTOPHER L. ANDERSON WILLIAM E. WOODWARD ROBERT M. TAYLOR PRECIOUS R. ANTONIO TRAVIS L. WOODWORTH VAN T. THAI TRONG T. AO JAMES R. WOOSLEY JARIN R. THAYN NADEGE APOLEON PAUL A. THERIOT JASON M. WORK ALLEN O. APPLEGATE JOHN G. THIEN MATTHEW W. WORLING CHRISTINE C. APRAEZ DOMENIC F. THOMPSON JASON T. WRIGHT KATHERINE V. ARLINGTON DARREN P. THURM CHIAFEI V. WU ALEXANDRA H. ARMITAGE GRADY A. TIBBOEL TONYA D. YARBER OLUWASEUN A. ASANTE BRIAN E. TIDBALL SCOTT T. YEATMAN BRIYITH K. AVALOS NATHAN R. TITUS MATTHEW R. YEATTER STEPHANIE L. AVENT CATHERINE M. TODD MELISSA L. YOUDERIAN TIANA M. BABB STEVEN E. TOFTE JAMES G. YOUNG CHERLLY L. BAILEY MICHAEL A. TOMM LONI B. YU AMY C. BAKER JUAN A. TORRES ANGELENA R. YULEE-SMITH KIMBERLY L. BAKER BRIAN B. TOWELL JOHN F. ZOHN, JR. ROBBI A. BAKER ERIC D. TRIAS MARIO F. ZUNIGA MICHELE N. BALIHE LAYNE D. TROSPER IN THE ARMY FRED O. BAMFO JASON R. TRUDEL DANIEL M. BANKEN GARRETT A. TRUSKETT THE FOLLOWING NAMED OFFICER FOR APPOINTMENT KEHINDE S. BANKOLE JONATHAN E. TUCKER IN THE GRADE INDICATED IN THE RESERVE OF THE STEPHANIE G. BANKSTON SAMUEL A. TUCKER ARMY UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 716: WILLIAM T. BARKER RAYMUNDO O. TULIER CHRISTOPHER E. BARNES SEAN F. TUNALEY To be colonel JULIO F. BARRERA-ORO JOSEPH C. TURNHAM KAREN A. BALDI JEFFREY S. BARRON JUSTIN H. TYREE TERI K. BARTOSOVSKY WILLIAM L. URBAN II THE FOLLOWING NAMED OFFICER FOR APPOINTMENT JENNIFER K. BEAL ATILIO M. USSEGLIO IN THE GRADE INDICATED IN THE RESERVE OF THE AMBER R. BEARDSLEE PROSPERO A. UYBARRETA ARMY UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 716: MICHELLE BEGAY BRADY J. VAIRA To be colonel NATALIE M. BEGAY ELISA VALENZUELA TIMOTHY R. BENAC SHANNON L. VAN VLECK CHRISTOPHER W. SOIKA MELANIE C. BENJAMIN JAMES C. VANCE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT ANDREW R. BERNARD TERENCE J. VANCE TO THE GRADE INDICATED IN THE RESERVE OF THE NAVDEEP BHANDARI DAVID D. VANDERBURG ARMY UNDER TITLE 10, U.S.C., SECTION 12203: SARAH A. BILLETER RYAN E. VANDERVEEN KEVIN B. BISHOP JOSEPH M. VANONI To be colonel CAITLIN D. BLANDFORD JOHN D. VARILEK DENNIS BOATENG LUIS A. RIVERABERRIOS RICHARD G. VASQUEZ SELENA A. BOBULA JUANLUIS VELEZ THE FOLLOWING NAMED OFFICER FOR APPOINTMENT PELAYIA H. BOOSALIS MICHAEL L. VENUS TO THE GRADE INDICATED IN THE RESERVE OF THE EILEEN T. BOSSO DAMIAN J. VERELLEN ARMY UNDER TITLE 10, U.S.C., SECTION 12203: JANA M. BROOKS ROBERT P. VICARS IV To be colonel ANNA R. BROWN WARREN E. VINES DANICA J. BROWN JOHN RICHARD VIPPERMAN KIMON A. NICOLAIDES HASSAN A. BROWN BRIAN D. VLAUN TAOFIK M. BROWN THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT GEORGE N. VOGEL ALICIA M. BRYANT TO THE GRADE INDICATED IN THE RESERVE OF THE KENNETH J. VOIGT, JR. ISAAC K. BUABENG ARMY UNDER TITLE 10, U.S.C., SECTION 12203: MATTHEW R. VOLLKOMMER RYAN J. BUCKNER TIMOTHY D. VORUZ To be colonel ANNA L. BURCHFIELD KURT E. WAGNER JONATHAN M. BURGOS JOHN C. WAHRMUND PENNY P. KALUA JOHN D. BURKART ERWIN T. WAIBEL JOSEPH A. TRINIDAD JEDIDIAH M. BURKEY CASEY W. WAITE PUBLIC HEALTH SERVICE ERIC H. BUTCHER STEVEN J. WALDEN DANIELLE E. BUTTKE CHRISTOPHER V. WALKER THE FOLLOWING CANDIDATES FOR PERSONNEL AC- ROSEMARY J. CALL DANIEL M. WALKER TION IN THE REGULAR CORPS OF THE COMMISSIONED COREY R. CAMPBELL MARC A. WALKER CORPS OF THE U.S. PUBLIC HEALTH SERVICE SUBJECT TIMOTHY A. CARDENAZ S DAVID WALKER TO QUALIFICATIONS THEREFORE AS PROVIDED BY LAW CASSANDRA F. CARLISLE JEREMY L. WALLER AND REGULATIONS: THERESA A. CARPENTER JOHN D. WALSH SHANARI J. CARTER MIA L. WALSH To be full grade BRANDY L. CARULLO MARK JAMES WALSKE MELINDA ASTRAN SHANON L. CASPERSON DANIEL T. WALTER JENNEFER A. KIERAN MINDY CHANG CASEY J. WARD SANDRA G. LAFON ANDREW M. CHARLES JR. MATTHEW R. WARNER JA’NAY M. CHATMAN BRITT A. WARREN PUBLIC HEALTH SERVICE TAHIR W. CHAUDHERY CAMERON L. WARREN PAUL M. CHEFOR FRANK W. WATERS THE FOLLOWING CANDIDATES FOR PERSONNEL AC- EVA W. CHEN GEORGE R. WATKINS TION IN THE REGULAR CORPS OF THE COMMISSIONED CARRIE A. CHIARENZA JASON M. WATSON CORPS OF THE U.S. PUBLIC HEALTH SERVICE SUBJECT EDMOND CHIN LARRY S. WATSON TO QUALIFICATIONS THEREFORE AS PROVIDED BY LAW LENA Y. CHOE STEVEN L. WATTS II AND REGULATIONS: JESSICA N. CLECK-DERENICK DANIEL B. WEBB To be full grade DANIELLE O. CLIFFORD ERIC S. WEBER JOSEPH B. CLIFT DARREN P. WEES MELINDA ASTRAN HEATHER L. CLINE DAVID L. WEIDE JENNEFER A. KIERAN KIRT D. CLINE KARL WEINBRECHT SANDRA G. LAFON JAMES C. COBURN AARON M. WEINER JOHN A. LANG MELANIE B. COFFMAN RYAN P. WEISIGER THUC X. NGO SUSAN E. COLLINS ERICK O. WELCOME PRECIOSA P. PACIA-RANTAYO STEPHEN A. COLMANT BENJAMIN J. WENDIKE PAULO B. PINHO BRADLEY A. COOK REGINALD D. WESLEY EVELYN M. RODRIGUEZ JAMES R. CORLISS SHEILA N. WESLEY ALLAN ROFFE COREY A. COSGROVE ANDREW R. WEST MARK J. ROSCHEWSKI HEATHER R. COUNTS ERIC L. WESTBY KEITH W. SIMPSON DEBORAH P. COX

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PATRICK W. CROOK LARS E. KRUSHOLM NAZIA F. RAHMAN BRADLEY T. CROSS WU G. KUANGSHI JERRIS L. RAIFORD ISRAEL H. CROSS MANDY C. KWONG SARA E. RAMUSSEN CAROLINE C. CURTIS KOFI A. KYEREMATENG STEPHEN J. REIGSTAD MATTHEW M. DAHM ANTHONY J. LADNER SUSAN RHEE JASON K. DAILEY JIHYUN LAROSE DIANE M. RICHARDSON SHAWNELL D. DAMON JUN H. LEE TARA A. RICHARDSON MEGAN R. DANFORTH KIMBERLY J. LEEKS KAREN Y. RIEDL-FIGUEROA CHARLES A. DARR RAUL LEIJA LESLIE A. RIVERA ROSADO RENE J. DAUBON JONATHAN A. LESHIN LAURETTE E. RIVERS MATTHEW T. DAVID CAREY W. LEWIS LOQUITA D. ROBERTS GABRIEL DAVILA SHELBY L. LEWIS RICK T. ROBERTS MICHAEL A. DAVIS KERRY M. LIDA DALE ROBERTSON VANESSA N. DAWSON STEPHANIE C. LIM ODALYS J. RODRIQUEZ-IRIZARRY AGATHA L. D’COSTA SCOTT C. LIVINGSTON NILES N. RON ELIZABETH B. DEAN MICHAEL K. A. LO WILLIAM ROSADO AVA L. DEBRO FOLAREMI K. LOFINMAKIN KETY R. ROSARIO ELAINE M. DEGUINO CORNELIA H. LONG SAMUEL D. RUSSELL ANDREW S. DEMOTTO GREGORY A. LOOMIS MELANIE F. SANGOBOWALE CONNIE F. DENT CARINA P. LOUDIS RACHEL M. SARGEANT CHARLENE J. DEPRY WESTON W. LOVELL COREY E. SCHEER SHEYLA DESIR ANGELA M. LUCARINI MIGNON T. SCHLEY STEPHANIE R. DIALLO NEALI H. LUCAS VIRGINIA L. SCHMIT MARIA I. DIEPPA SHANNON L. LUNDAY MAVIANN M. SCHULER SHARON D. DOWNEY MARIO V. LUONG JESSICA R. SCHULTZ-FISCHER DORIS Y. DRAFTS AMBER LY NATHASHA SENAT MARILYN M. DUKES RICHARD A. LYGHT BRYAN D. SHELBY MATTHEW G. DUNBAR JOHN H. MACHIKAWA MELISSA N. SHIFFER GINA H. DUNCAN KRISTINA R. MADULA HEATHER S. SHUEY-BURTON JULASTENE DYER-MOORE NNENNA K. MAKANJUOLA JOHN P. SKENDER MICHAEL C. EADES KARINA N. MANCINI ASHLEY F. SLAGLE CHUKWUEMEKA S. EGWIM MARIELY E. MANTEUFFEL ANGELA J. SMITH KELLY M. FATH TAMEIKA L. MAPP ERICA A. SMUCKLER LANCE A. FINNICAL AMY L. MARIN KERRI E. SNYDER MIRAN H. FORSYTH ELIZABETH R. MARKS LARISSA N. FOSTER MARIELY MARQUEZ-LORENZO KYLE T. SNYDER CHARLOTTE A. FRANCIA NAHOMY M. MARRERO JEFFREY J. SONG RAVINEEL R. FRANCIS JONI L. MARSAW JENNE A. STEARNS VIRGINIA L. FULFORD AISHA M. MARTIN ERIKA J. STEVENSON EMILY M. GAFFNEY MILTON MARTINEZ ALICIA J. SWENSON-OBRIEN ROSE A. GAIKOWSKI GARRETTE C. MARTIN-YEBOAH DREW G. SWIGART TANGELA M. GAINES THOMAS J. MARUNA KRISTY J. SZRETTER RAY GARCIA JR. RUSSELL A. MASON NARISA A. TAPPITAKE JESSE R. GEFROH TANESHA R. MAYO CHRISTA L. THEMANN STEVEN J. GERFIN MARY J. MCANANY BEVERLY M. THOMAS-LEPAGE DANIEL P. GLAPA CRYSTAL R. MCBRIDE THERESA W. TREAS-CORNELIUS KARLY A. GOMEZ FRANTISHKA MCCRIMMON CHI-MING TU JESSE L. GOODMAN TRISHA A. MCCURDY LATASHA A. TURNER CATHERINE A. GOULD MELISSA S. MCGUINNESS JOHN M. VAN EYK SHANON R. GOWER MONICA L. MCKEE LOUIS D. VELASCO NALANI T. GRACE PAUL B. MCMASTER ANAYA F. VICIL CANDICE A. GREENIDGE KAYLA D. MEEKS PHUONG N. VO MEGAN E. GROSHNER JAMIE E. MELLS MORGAN A .WALKER BRANDIS J. HALL SARAH E. MELROY RACHEL N. WALKER KATHRYN E. HANLON LESLIE A. MEYER MATTHEW D. WALLIS AMBER M. HANNA LUIS E. MILLAN ANNEKE E. WARREN STEPHANIE A. HANSEN NASEYA N. MINOR FELICIA M. WARREN ROSS G. HANSON ALBERTA M. MIRAMBEAU JAMIE N. WAUGAMAN VINCENT E. HARVILLE CHRISTINA L. MNATZAGANIAN BRAD A. WEEKLEY JEANINE M. HATFIELD ELLEN F. MOLINARO JEFFREY L. WELSH MEGAN R. HAYDEN ROBERT J. MONTIERTH DAVID M. WHITE ELSBETH N. HEARN CAMERSON E. MOORE CASSIE N. WILLIAMS GEROME L. HENDERSON MEGAN C. MORGAN GLADYS A. WILLIAMS SONJA L. HERSHFIELD MILES S. MORIMOTO KAREN S. WILSON ANDREW C. HICKEY CRAIG E. MORIN SHONDELLE M. WILSON-FREDERICK MARISA J. HICKEY JORGE G. MUNIZ ORTIZ TAKISHA M. WISEMAN PATRICK M. HIGH MONICA E. MURIE DIANA Y. F. WONG ELLIOTT R. HILL FARZANA MUSAWWIR JAY T. WONG LANNY L. HOBSON STEPHEN M. MYERS IN-CHUL YEH MARCIA D. HOCUTT JEANETTE M. NAGY YVON YEO AIMEE M. HOLLANDER W.J. NAPOLEON MAKSIM YERMAKOV BROOKE E. HOOTS JULIE V. NEISHIEWAT KIRSTEN A. YOHO CHARLES A. HOOTS JOSEPH R. NEWCOMB WILLIAM T. YOUNG SHEILA M. HOUGHTON-ANTONUCCI JADILYN-NGOC B. NGUYEN ELEANOR G. YU CORWIN D. HOWARD TIEUVI H. NGUYEN NICHOLAS C. ZIELINSKI ELLEN A. HUANG LISA H. NICHOLS To be junior assistant grade GWENDOLYN N. HUDSON ROWNA M. NICOLAS SAMUEL J. HUFF MARI C. NOVOSAD TIFFANIE A. ABRAJANO TESSA M. HUFF EVONNE A. NWANKWO-IGOMU ADLAIDE ADDAWOO LINDSEY D. HUFFMAN LINDA-LOU O’CONNOR STACY E. ALLEN PETER T. HUGHES OYETOLA L. OLANREWAJU TRACEY L. ALLEN KRISTEN N. HUMMEL ZACHARY A. OLESZCZUK SAPHIRE S. ANDERSON JOHN M. HUNT OSAMEDE C. ONAGHISE SUSAN A. ANDERSON LYNELLE A. HUNT TEMITOPE B. ORIOLA JUANITA A. APPLEWHITE BRUCE I. HUTCHINS JORGE PADILLA LILIANA ARANDA HEATHER L. HUTCHINSON EMILY Y. PAK RYAN W. AUTENRIETH BAO T. HUYNH SARAH S. PAK CHRISTOPHER A. AVERY UBONG U. IBOK KATIE M. PALMER LORENA E. BADOUI TOBY J. IMLER JR. ALISON J. PARK SARAH H. BAILEY JEANETTE T. INALDO JUN W. PARK DION P. BAKER JAMES K. IRELAND KIMBERLY S. PARR MICHELE R. BAKER SUNITA V. IYER NICOLE R. PASCUA VINCENSIA O. BARNES KRISTIAN B. JACKSON HARIDARSHAN PATEL MICHELE BEDFORD VICTORIA J. JEISY SCOTT NAYAN J. PATEL NICOLE G. BELLE ISLE DIVIVIAN JEROME-MCGUIRE KIRBY PATMON CHERILYNN L. BENALLY ANNA B. JEWULA LORI M. PAYLOR ALISSA E. BERRYMAN JENNIFER C. JOHNSON BRYON M. PEARSALL ADAM R. BIZAN MATTHEW A. JOHNSON MEGAN M. PEPPLE EMILY R. BLACKMORE CHARIS J. JONES DWAYNE D. PERRILLIAT STEPHANIE D. BRIGUGLIO DARLENE JONES MONIQUE M. PERRON LATESHIA L. BROWN HEATHER A. JOSEPH DIANA L. PERRY APRIL J. BRUCKLIER KARALIN M. JOYCE THOMAS A. PETER TRACY L. BRUMSKILL GEORGE E. JULES RICHARD N. PETERSON CATHERINE N. BURKE-SHAHIN JULIANE L. JUNES-HARVEY DIANE A. PHAM CYNTHIA M. CABELLO PHILIPPE P. KANE JANELLE A. PHILLIP KRISTEN N. CALUAG PRAVEEN KC ERIN M. PIATESKI YAQUISHA S. CARTER WADE T. KECKLER WILLIAM L. PICKLER JR. LAKEVA B. CASEY FRED K. KELLY DAVID M. PIERCY JR. MATTHEW L. CHADWICK FOLASADE A. KEMBI JENNIFER J. PIETERS HELEN J. CHAVEZ LAURA B. KENNEDY EVETTER D. PINDER RAYMOND CHEN BITA KIANIMANESH ANTHONY B. POLITO III CHARLES G. CHIANG CHRISTINA L. KIRBY TITANIA L. PORTEOUS ALEX J. CHOO GARRETT G. KIRK RYAN S. PRESTO BRANDY L. CLOUD JOSEPH A. KOTAREK CLAUDIA C. PRICE CHERLYN D. CROCKERHAM MICHAEL A. KRAGE DEBORAH A. H. PRITCHETT JENNIFER L. CUEVAS MICHAEL R. KROK KIRK C. PRUTZMAN KHANH M. DAO LISA M. KROLESKI KERRY S. QUINN HOLLY A. DAVERIN

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MIKAYLA K. DEARDORFF CATHERINE K. KAMINSKI SARA M. RICHARDSON MELISSA M. DEVERA JESSICA L. KAMINSKI JONATHAN B. RIEKKOLA DEREK J. DODD KATE L. KARABINOS ALEXIS RIVERA RODRIGUEZ SEAN C. DRISKILL MERRY K. KELLEY SARAH B. ROBINSON LEAH R. DUNBAR RONAN F. KING HEIDI A. SALM KEVIN L. DUNN RAMONA D. KISTLER CORRIE A. SAMPLE FOREST W. DUTTON SAMUEL G. KNOTT KARLA J. SCHERMERHORN PAUL R. EATON TARYN D. KRIGBAUM MELISSA G. SEATON ANATHEA M. EDLEMAN KEYONICA S. LASSITER GILYARD SHENISE TESSY I. EDOMWANDAGBON MELONEY A. LAUSIER JAMES M. SIMPSON UFUOMA E. EGELEBO ARIELL B. LAWRENCE ANDREW J. SKIPPER LAUREN J. EVANS NATHANAEL M. LEMMON DAVID E. SMITH ERIKA L. FARDIG LISA M. LEMOINE MICAELA SMITH JONATHAN B. FARRELL ANGELA J. LIN PAUL W. SMITH JR. SYLLENIA FAVILA ANN E. LUCCHESI KHUSHBU M. SOLANKI MELISSA D. FELTZ ANGELICA S. LUCIANO LAUREN D. STAPLES CAITLIN M. FENERTY JENNIFER T. LUONG DEANNA R. STEWART WHITNEY D. FIELDS KIMBERLY M. LYNES TIFFANY C. STRADFORD ALYSSA C. FINE MEGAN MACQUIRE-MARSHALL TRISTIAN E. STRAIT LAUREN K. FLAHERTY TEMITOPE A. MAGBAGBEOLA TARANGI SUTARIA MONICA A. FLORES DANA M. MARSHALL HANNAH J. TAYLOR ALEX A. FOLAMI STANLEE J. MASLONKA REGINALD E. TAYLOR ASHLEY N. FREEMAN DAKOTA E. MCMURRAY CHARLES H. THOMAS IRASEMA GARCIA AMARYLLIS D. MCRAE KATELYNN P. TONN ROBERTO C. GARZA JUSTIN A. MILTON JACKIE TRAN JACOB W. GERKE PHUONG H. NGUYEN JENNIFER N. UNDERWOOD GOMEZ D. GOMEZ TUAN A. NGUYEN JOSE G. VELASCOSOLTERO BENJAMIN D. GROTH SAMANTHA L. NOLA MICHAEL D. WAGNER MICHAEL L. M. GU UZOMA C. NWACHUKWU JASMINE H. WANDERS KYLE O. GUSTOFSON CECILIA A. OCHEI SURAYYO WANG TRAVIS L. HAINES AMANDA R. PALERMO SARAH A. WANGSENG TONI L. HALLMAN NICHOLAS V. PALUMBO RALPH D. WARDROUP JAMIE A. HAMILTON LISHUNDA D. PARK MATHHEW WAZENBACH PRASHANT K. HARJAI JENNIFER D. PETRO DALE W. WELSH NICOLE E. HEIDARAN JESSICA R. PFORR KAREN L. WHEELER KARI L. HERBER LYNELLE K. PHILEMONOFF CYNTHIA B. WHITMAN DAJA C. HERNANDEZ LADONNA R. PICKETT ALEXIS B. WILLIAMS COURTNEY F. HIGGINS EMYLEE B. PREVETTE LINDSAY A. WILLIAMS KARA G. P. HUFFAKER WILL PRICE EMILY S. WILSON KACI A. HUGHES JENNIFER D. PRUNTY ERIC T. WONG CAMILIA R. JAMES RONALYNN A. RAMOS JASON H. WOOD PAUL A. JONES JEDIDIAH P. REIMNITZ MATTHEW R. YOUNG NANCY JORDAN JEREMY P. RHYMER CHELSEA TRUE

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IN RECOGNITION OF BOBBY MOSER HONORING THE MUTUAL Washington, DC, on June 19, 2012 with Honor UPON HIS RETIREMENT AS THE MUSICIANS FOUNDATION Flight Chicago, a program that provides World LONGEST-TENURED DEAN AT War II veterans the opportunity to visit the THE OHIO STATE UNIVERSITY HON. EMANUEL CLEAVER World War II Memorial on The National Mall in OF MISSOURI Washington, DC. This memorial was built to HON. PATRICK J. TIBERI IN THE HOUSE OF REPRESENTATIVES honor their courage and service to their coun- OF OHIO Monday, June 25, 2012 try. IN THE HOUSE OF REPRESENTATIVES Mr. CLEAVER. Mr. Speaker, I proudly rise The American Veteran is one of our great- Monday, June 25, 2012 today to acknowledge the Mutual Musicians est treasures. The Soldiers, Airmen, Sailors, Foundation for their tireless efforts in pre- Mr. TIBERI. Mr. Speaker, I rise to recognize Marines, and Coast Guardsmen who traveled serving Kansas City Jazz history. Jazz music Bobby Moser upon his retirement from the po- here on June 19 answered our nation’s call to has greatly influenced the history and culture service during one of its greatest times of sition of vice president for Agricultural Admin- of the United States and of Missouri’s Fifth istration and dean of the College of Food, Ag- need. From the European Campaign to the Congressional District, which I am honored to Pacific Asian Theatre to the African Theater, ricultural, and Environmental Sciences at The represent. Located in the heart of the historic these brave Americans risked life and limb, Ohio State University. 18th and Vine Jazz District, the Mutual Musi- gave service and sacrificed much, all while Since its inception, the United States has al- cians Foundation continues to bring the nos- ways been known for its institutions of higher talgia of early jazz to the forefront of the music embodying what it is to be a hero. We owe education. Our universities and colleges rep- scene for generations to come. them more gratitude than can ever be ex- resent some of the most well-known and re- Originally home to the Colored Musicians pressed. spected schools in the world. In my opinion, Protective Local Union #627, the historic I welcome these brave veterans to Wash- these heavily lauded institutions remain only venue opened its doors in 1930. Established ington and to their memorial. I am proud to as successful as the administrators and pro- in 1917, Local Union #627, then known as the submit the names of these men and women fessors who make up its faculty. Every Amer- ‘‘Colored Musicians Union’’ operated as a so- for all to see, hear, and recognize, and I call ican who has attended a school of higher cial center, engagement clearinghouse, and as learning can fondly remember one or more on my colleagues to rise and join me in ex- a vehicle for grievances against unfair prac- pressing gratitude. faculty members whose impact resonates with tices from booking agents and band leaders. him or her today. We must not forget the role Some of the jazz music’s most influential mu- Nick Angelopulos, Olin Apgar, James E. At- of educators and administrators whose unwav- sicians have walked through their doors, in- kinson, Albert Augustyn, Douglas Babitzke, ering efforts sometimes go unnoticed. It is be- cluding Charlie Parker, Count Basie, Big Joe David Baruch, John M. Campbell, Lester cause of the intelligence and hard work of Turner, Hot Lips Page, and Mary Lou Wil- Catlin, John Ciolek, Joseph T. Connelly, Ed- these men and women that our schools stand liams. ward W. Connelly, Peter J. Cortopassi, Eldon today as some of the world’s finest places of In collaboration with the Historic Jazz Foun- L. Cueno, Charlie L. Davis, Donald DeKraker, learning and educational development. dation, the Mutual Musicians Foundation has Thaddeus J. Dobrowolski, Francis Duffy, For over 20 years Bobby Moser has rep- created an educational experience that will be Ladimir F. Dvorak, Bernard Ellman, Melvin resented one such educator and administrator. relished for many generations to come. Elmhorst, Eugene T. Entrican, Peter Eugenis, Since his introduction to The Ohio State Uni- Through my support for congressional funding, Alfred Evinger, Robert M. Flynn, Charles Ford, versity, the College of Food, Agricultural, and the Film Archival Project has been made pos- Rogers P. Freedlund, Wilbur Lee German, Environmental Sciences has gone on to be- sible. This project will be beneficial in Lawrence E. Gilford, Frank J. Gliwa, George come a well-recognized and respected depart- archiving historical photography, videos, and Griner, Eugene E. Hainchek, Martin A. ment nationwide. In light of his efforts, the col- memorabilia of jazz music’s most significant Halloran, Harold M. Halsten, William V. lege has seen an increase in grant awards, musicians. This project will also make the issuance of patents and donations. As an preservation of important film from jazz musi- Hervoy, Elden E. Holzwart, Ernest Hoskins, alumnus and a former member of the march- cians possible. Richard H. Hyde, David S. Jameson, Evert P. ing band at OSU, I can appreciate the efforts Jazz has been played continuously at the Johnson, Edward S. Killian, Edward Kozlow, and impact of quality individuals like Bobby. Mutual Musicians Foundation since 1930, Ralph H. Krichbaum, William E. Krueger, Clar- Much of his career has remained dedicated to making it the longest running jazz location in ence E. Kuhlman, Walter Leslie, Aaron H. the development of this college and the stu- the United States and in the world. Because it Levin, Louis G. Limperes, Edmund Lozano, dents who have devoted themselves to Ohio’s is the place where the Kansas City Style of Frederick Ruiz Maravilla, Emil L. Marcotte, oldest and most reputable industry. I am proud jazz was born, it has been designated as a Donald J. Marsaglia, Henry Alvin Mathews, to recognize the career of such a supreme National Historic Landmark by the U.S. De- William McNabola, Robert A. Mortensen, leader at OSU and look forward to hearing of partment of the Interior. Mr. Speaker, I ask that you and our col- Frank J. Muehlbauer, James M. Muirhead, his future successes and contributions to our John Mullen, Thomas J. Mulligan, Harold community. leagues in the House join me in honoring the Mutual Musicians Foundation for their years of Nicodem, Lawrence E. Nielsen, John S. Opitz, On behalf of the citizens of Ohio’s 12th Robert D. Pasquale, Angelo J. Pasquesi, Wil- Congressional District, I would like to thank dedicated service to Kansas City’s rich jazz community. Continuing to support such a wor- liam Payne, Sr., Frederick Thomas Pennix, Jo- Bobby Moser for his steadfast commitment to seph Persico, Edward Richards, Kenneth The Ohio State University. thy institution is not a duty, but instead an honor. Richardt, Walter Schauer, Arthur Shapiro, Jo- f f seph W. Sheade, William S. Sherwood, Wil- PERSONAL EXPLANATION liam F. Shipp, Edward Skrapka, Donald Frank HONORING THE WORLD WAR II Slapak, Calvin Sleeman, Robert N. Smedberg, HON. ROBERT E. ANDREWS VETERANS OF ILLINOIS Arne Sorensen, Salvatore Sparacio, Donald F. Spitzer, Lyle Claude Springer, Robert Steege, OF NEW JERSEY HON. MIKE QUIGLEY Conrad L. Steindler, Lester Strejc, Evan B. IN THE HOUSE OF REPRESENTATIVES OF ILLINOIS Stubbs, Benjamin Sultz, Edward Telman, Wil- Monday, June 25, 2012 IN THE HOUSE OF REPRESENTATIVES liam L. Tiffin, Alexander T. Valos, Joseph J. Mr. ANDREWS. Mr. Speaker, on rollcall No. Monday, June 25, 2012 Waickus, Reginald R. Watt, Bentley 395, I mistakenly voted ‘‘nay’’ when I had in- Mr. QUIGLEY. Mr. Speaker, I rise to honor Weitzman, Bobby D. Whisler, Sidney Winters, tended to vote ‘‘yea.’’ the World War II veterans who traveled to Richard N. Wunderink.

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

VerDate Mar 15 2010 01:25 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00001 Fmt 0626 Sfmt 9920 E:\CR\FM\K25JN8.001 E25JNPT1 tjames on DSK6SPTVN1PROD with REMARKS E1132 CONGRESSIONAL RECORD — Extensions of Remarks June 25, 2012 OREGON HOME HEALTH CARE AND egon have been saying for years: when it For these reasons, I am proud to applaud MEDICARE comes to waste, fraud, and abuse in the the Dave Thomas Foundation for Adoption health care system, Oregon providers as a and its dedicated staff for their extraordinary HON. GREG WALDEN whole are not the problem. contributions to the people of Ohio’s 12th Con- OF OREGON So while no State is 100 percent without gressional District and throughout the United IN THE HOUSE OF REPRESENTATIVES fault, and while every provider should make it States. their goal to act only in the best interest of f Monday, June 25, 2012 their patients, these figures have shown us the Mr. WALDEN. Mr. Speaker, I rise to ad- main source of abuse. Therefore, any future SENATE COMMITTEE MEETINGS dress the House about an issue of particular home health proposal should target these Title IV of Senate Resolution 4, importance to seniors and health care patients higher spending counties rather than indis- agreed to by the Senate on February 4, in Oregon’s 70,000 square-mile Second Dis- criminately harming the good players in the in- 1977, calls for establishment of a sys- trict: access to home health care. Some coun- dustry. Isolating and rooting out fraud simply tem for a computerized schedule of all ties in my largely rural district are without a makes sense for providers, patients, and tax- meetings and hearings of Senate com- single hospital or physician, meaning finding payers. mittees, subcommittees, joint commit- care can be difficult. Fortunately, however, Mr. Speaker, while we can always do more tees, and committees of conference. each of the 20 counties in the district does to ensure access to health care services in This title requires all such committees have skilled, dedicated home health providers rural areas like Oregon’s Second District, I to notify the Office of the Senate Daily willing to care for those in need. take comfort in knowing that there are many Digest—designated by the Rules Com- Ninety-six percent of all Medicare spending home health providers willing to serve seniors mittee—of the time, place, and purpose goes toward patients with more than one in Oregon and elsewhere. Because of these of the meetings, when scheduled, and chronic disease, and sixty-six percent of the dedicated providers, patients receive the care any cancellations or changes in the program’s funds are used for those with five or they need in the comfort of their homes, with meetings as they occur. more chronic conditions. With ten thousand their families and loved ones at their side. As an additional procedure along new Medicare beneficiaries added every day, f with the computerization of this infor- we must work to ensure the program’s long- mation, the Office of the Senate Daily term sustainability. IN RECOGNITION OF THE 20TH AN- Digest will prepare this information for Fortunately for Medicare, home health care NIVERSARY OF THE DAVE THOM- printing in the Extensions of Remarks AS FOUNDATION FOR ADOPTION providers go above and beyond to deliver section of the CONGRESSIONAL RECORD high-quality, clinically effective, efficient care, on Monday and Wednesday of each and many medical treatments that were once HON. PATRICK J. TIBERI week. offered in hospital or nursing home settings OF OHIO Meetings scheduled for Tuesday, are now being safely and more cost-efficiently IN THE HOUSE OF REPRESENTATIVES June 26, 2012 may be found in the Daily provided in patients’ homes. Further, the home Monday, June 25, 2012 Digest of today’s RECORD. health and hospice industry helps fuel the Mr. TIBERI. Mr. Speaker, I rise to congratu- economy with nearly 1.5 million jobs nation- late the Dave Thomas Foundation for Adop- MEETINGS SCHEDULED wide. tion on the occasion of its 20th anniversary. JUNE 27 I have seen first-hand the compassionate The Foundation was established in 1992 by 10 a.m. and highly skilled care home health nurses Dave Thomas as a public charity with one pri- provide to patients. My wife Mylene and I have Homeland Security and Governmental Af- mary goal: to help every child in foster care fairs seen it on a personal level with our own fami- find a loving, permanent family. Throughout its Business meeting to consider S. 2345, to lies, and talked to numerous Oregonians who history, the Foundation has set forth on a mis- amend the District of Columbia Home are grateful for the opportunity to recover in sion of dramatically increasing the number of Rule Act to permit the Government of their own home with their spouse and loved adoptions of waiting children. the District of Columbia to determine ones by their side. For 20 years, the Dave Thomas Foundation the fiscal year period, to make local In addition to being good for patients, home for Adoption has committed itself to finding funds of the District of Columbia for a fiscal year available for use by the Dis- health is also good for federal taxpayers. permanent families for the more than 100,000 When seniors choose home health, they stay trict upon enactment of the local budg- children waiting in the United States foster et act for the year subject to a period in their own beds, pay their own utilities, do care system. of Congressional review, S. 2178, to re- their own laundry, and provide for their own The Dave Thomas Foundation for Adoption quire the Federal Government to expe- meals. This is also often supplemented by awards grants to public and private adoption dite the sale of underutilized Federal family members who help keep them safe and agencies all across the country. Last year real property, S. 2170, to amend the well in the place they most want to be—their these grants totaled more than $8 million and provisions of title 5, United States home. When Medicare covers the costs of focused on supporting adoption professionals Code, which are commonly referred to room and board and 24 hour care in more ex- who implement proactive, child-focused re- as the ‘‘Hatch Act’’ to eliminate the pensive institutional settings, taxpayers spend provision preventing certain State and cruitment programs targeted exclusively on local employees from seeking elective thousands of dollars they would otherwise moving the longest-waiting children from foster office, clarify the application of certain save in home health settings. care into adoptive families. This signature pro- provisions to the District of Columbia, Unfortunately, however, for the majority of gram is Wendy’s Wonderful Kids (WWK). and modify the penalties which may be compassionate, skilled home health providers The results from an empirical five-year case imposed for certain violations under truly dedicated to the patients they serve, a study on WWK were released in October, subchapter III of chapter 73 of that narrow sliver of operators are tarnishing their 2011. The research showed that children in title, S. 2234, to prevent human traf- good work. MedPAC has found that a small the program are up to three times more likely ficking in government contracting, S. number of bad actors in just 25 counties na- to be adopted. 2239, to direct the head of each agency tion wide are disproportionately taking advan- The Foundation also supports employers to treat relevant military training as sufficient to satisfy training or certifi- tage of Medicare beneficiaries and taxpayers. through the Adoption-Friendly Workplace pro- cation requirements for Federal li- According to MedPAC’s figures, the total gram, is a founding member of National Adop- censes, H.R. 915, to establish a Border number of home health providers in these top tion Day, and is a proud partner of the annual Enforcement Security Task Force pro- 25 highest spending counties rose from 290 in television special, A Home for the Holidays. gram to enhance border security by 2005 to 775 in 2009, an increase of over 167 The Foundation is an accredited charity of fostering coordinated efforts among percent. During this time, Medicare payments the Better Business Bureau Wise Giving Alli- Federal, State, and local border and to these providers went from $592 million to ance, Standards for Excellence certified, and law enforcement officials to protect $1.6 billion, a 163 percent increase in tax- has received the highest possible rating on United States border cities and communities from trans-national crime, in- payer spending. Charity Navigator. The Foundation has helped cluding violence associated with drug In Oregon during that same time period, the more than 3,000 children find their forever trafficking, arms smuggling, illegal total number of providers, as well as overall families and provided information and support alien trafficking and smuggling, vio- Medicare reimbursement, actually decreased. to tens of thousands of potential adoptive fam- lence, and kidnapping along and across These figures confirm what many of us in Or- ilies. the international borders of the United

VerDate Mar 15 2010 01:25 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00002 Fmt 0626 Sfmt 0634 E:\CR\FM\A25JN8.004 E25JNPT1 tjames on DSK6SPTVN1PROD with REMARKS June 25, 2012 CONGRESSIONAL RECORD — Extensions of Remarks E1133 States, and S. 3315, to repeal or modify itor Center’’, S. 2324, to amend the Wild persons, and the nominations of Ter- certain mandates of the Government and Scenic Rivers Act to designate a rence G. Berg, to be United States Dis- Accountability Office. segment of the Neches River in the trict Judge for the Eastern District of SD–342 State of Texas for potential addition to Michigan, Jesus G. Bernal, to be Judiciary the National Wild and Scenic River United States District Judge for the To hold hearings to examine the nomina- System, S. 2372, to authorize pedes- Central District of California, Lorna G. tions of Frank Paul Geraci, Jr., to be trian and motorized vehicular access in Schofield, to be United States District United States District Judge for the Cape Hatteras National Seashore Rec- Judge for the Southern District of New Western District of New York, Fer- reational Area, S. 3300, to establish the York, and Danny Chappelle Williams, nando M. Olguin, to be United States Manhattan Project National Historical Sr., of Oklahoma, to be United States District Judge for the Central District Park in Oak Ridge, Tennessee, Los Ala- Attorney for the Northern District of of California, Malachy Edward mos, New Mexico, and Hanford, Wash- Oklahoma, Department of Justice. Mannion, and Matthew W. Brann, both ington, and S. 3078, to direct the Sec- SD–226 to be a United States District Judge retary of the Interior to install in the 2:15 p.m. for the Middle District of Pennsyl- area of the World War II Memorial in Indian Affairs vania, and Charles R. Breyer, of Cali- the District of Columbia a suitable Business meeting to consider H.R. 443, to fornia, to be a Member of the United plaque or an inscription with the words provide for the conveyance of certain States Sentencing Commission. that President Franklin D. Roosevelt property from the United States to the SD–226 prayed with the United States on June Maniilaq Association located in Veterans’ Affairs 6, 1944, the morning of D–Day. Kotzebue, Alaska, H.R. 1560, to amend To hold hearings to examine health and SD–366 the Ysleta del Sur Pueblo and Alabama benefits legislation. and Coushatta Indian Tribes of Texas SD–124 JUNE 28 Restoration Act to allow the Ysleta del 10:30 a.m. 9:30 a.m. Sur Pueblo Tribe to determine blood Foreign Relations quantum requirement for membership To hold hearings to examine the nomina- Energy and Natural Resources To hold hearings to examine innovative in that tribe, H.R. 1272, to provide for tion of Derek J. Mitchell, of Con- the use and distribution of the funds necticut, to be Ambassador to the non-federal programs for financing en- awarded to the Minnesota Chippewa Union of Burma, Department of State. ergy efficient building retrofits. Tribe, et al, by the United States Court SD–419 SD–366 of Federal Claims in Docket Numbers 2 p.m. Foreign Relations 19 and 188, S. 134, to authorize the Mes- Foreign Relations To hold hearings to examine The Law of calero Apache Tribe to lease adju- To receive a closed briefing on Syria. the Sea Convention (Treaty Doc. 103– dicated water rights, S. 1065, to settle SVC–217 39), focusing on perspectives from busi- land claims within the Fort Hall Res- 3 p.m. ness and industry. ervation, S. 2389, to deem the submis- Energy and Natural Resources SH–216 sion of certain claims to an Indian National Parks Subcommittee 10 a.m. To hold hearings to examine S. 1897, to Commerce, Science, and Transportation Health Service contracting officer as amend Public Law 101–377 to revise the To hold hearings to examine the need for timely, and S. 3193, to make technical boundaries of the Gettysburg National privacy protections, focusing on indus- corrections to the legal description of Military Park to include the Gettys- try self-regulation. certain land to be held in trust for the burg Train Station, S. 2158, to establish SR–253 Barona Band of Mission Indians. the Fox-Wisconsin Heritage Parkway Finance SD–628 National Heritage Area, S. 2229, to au- To hold a joint hearing with the House 2:30 p.m. thorize the issuance of right-of-way Committee on Ways and Means to ex- Intelligence permits for natural gas pipelines in amine tax reform and the tax treat- To hold closed hearings to examine cer- Glacier National Park, S. 2267, to reau- ment of capital gains. tain intelligence matters. thorize the Hudson Valley National HVC–210 SH–219 Heritage Area, S. 2272, to designate a Judiciary 3 p.m. mountain in the State of Alaska as Business meeting to consider S. 285, for Foreign Relations Mount Denali, S. 2273, to designate the the relief of Sopuruchi Chukwueke, S. African Affairs Subcommittee Talkeetna Ranger Station in 1744, to provide funding for State To hold hearings to examine economic Talkeetna, Alaska, as the Walter Har- courts to assess and improve the han- statecraft, focusing on embracing Afri- per Talkeetna Ranger Station, S. 2286, dling of proceedings relating to adult ca’s market potential. to amend the Wild and Scenic Rivers guardianship and conservatorship, to SD–419 Act to designate certain segments of authorize the Attorney General to the Farmington River and Salmon carry out a pilot program for the con- JULY 12 Brook in the State of Connecticut as duct of background checks on individ- 10 a.m. components of the National Wild and uals to be appointed as guardians or Health, Education, Labor, and Pensions Scenic Rivers System, S. 2316, to des- conservators, and to promote the wide- To hold hearings to examine creating ignate the Salt Pond Visitor Center at spread adoption of information tech- positive learning environments for all the Cape Cod National Seashore as the nology to better monitor, report, and students. ‘‘Thomas P. O’Neill, Jr. Salt Pond Vis- audit conservatorships of protected Room to be announced

VerDate Mar 15 2010 01:25 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00003 Fmt 0626 Sfmt 0634 E:\CR\FM\M25JN8.000 E25JNPT1 tjames on DSK6SPTVN1PROD with REMARKS Monday, June 25, 2012 Daily Digest Senate plying the mandatory purchase requirements to areas Chamber Action of residual risk, and to require the Administrator to Routine Proceedings, pages S4433–S4600 study voluntary community-based flood insurance Measures Introduced: Four bills and two resolu- options. Page S4447 tions were introduced, as follows: S. 3337–3340, and Reid Amendment No. 2470, to change the enact- S. Res. 503–504. Page S4460 ment date. Pages S4447–48 Measures Reported: Reid Amendment No. 2471 (to the language pro- S. 1379, to amend title 11, District of Columbia posed to be stricken by Amendment No. 2468), to Official Code, to revise certain administrative au- change the enactment date. Page S4448 thorities of the District of Columbia courts, and to Reid Amendment No. 2472 (to Amendment No. authorize the District of Columbia Public Defender 2471), of a perfecting nature. Page S4448 Service to provide professional liability insurance for Reid motion to recommit the bill to the Com- officers and employees of the Service for claims relat- mittee on Banking, Housing, and Urban Affairs, ing to services furnished within the scope of employ- with instructions, Reid Amendment No. 2473, to ment with the Service, with an amendment. (S. change the enactment date. Page S4448 Rept. No. 112–178) Pages S4459–60 Reid Amendment No. 2474 (to (the instructions) Measures Passed: Amendment No. 2473), of a perfecting nature. Page S4448 National Aphasia Awareness Month: Senate Reid Amendment No. 2475 (to Amendment No. agreed to S. Res. 503, designating June 2012 as 2474), of a perfecting nature. Page S4448 ‘‘National Aphasia Awareness Month’’ and supporting efforts to increase awareness of aphasia. Small Business Jobs and Tax Relief Act: Senate Pages S4593–94 began consideration of the motion to proceed to consideration of S. 2237, to provide a temporary income Honoring the Athletes and Others Killed at the tax credit for increased payroll and extend bonus de- 1972 Munich Olympics: Senate agreed to S. Res. 504, expressing support for the International Olym- preciation for an additional year. Page S4448 pic Committee to recognize with a minute of silence House Messages: at the 2012 Olympics Opening Ceremony the ath- Food and Drug Administration Safety and In- letes and others killed at the 1972 Munich Olym- novation Act—Agreement: By 89 yeas to 3 nays pics. Page S4594 (Vote No. 166), three-fifths of those Senators duly Measures Considered: chosen and sworn, having voted in the affirmative, Flood Insurance Reform and Modernization Act: Senate agreed to the motion to close further debate Senate began consideration of S. 1940, to amend the on Reid motion to concur in the amendment of the National Flood Insurance Act of 1968, to restore the House of Representatives to S. 3187, to amend the financial solvency of the flood insurance fund, after Federal Food, Drug, and Cosmetic Act to revise and agreeing to the motion to proceed, and taking action extend the user-fee programs for prescription drugs on the following amendments and motion proposed and medical devices, to establish user-fee programs thereto: Pages S4434, S4446–48 for generic drugs and biosimilars. Page S4449 Pending: A unanimous-consent-time agreement was reached Reid (for Johnson (SD)/Shelby) Amendment No. providing that at 2:15 p.m., on Tuesday, June 26, 2468, in the nature of a substitute. Page S4447 2012, there be 6 hours and 15 minutes of debate re- Reid (for Pryor/Hoeven) Amendment No. 2469 maining post-cloture on the Reid motion to concur (to Amendment No. 2468), to require the Govern- in the amendment of the House of Representatives ment Accountability Office to study the effect of ap- to the bill, with 2 hours under the control of Senator D648

VerDate Mar 15 2010 05:05 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D25JN2.REC D25JNPT1 tjames on DSK6SPTVN1PROD with DIGEST June 25, 2012 CONGRESSIONAL RECORD — DAILY DIGEST D649 Harkin, 4 hours under the control of Senator Burr Statements on Introduced Bills/Resolutions: and 15 minutes under the control of Senator Paul. Pages S4461–64 Page S4594 Additional Statements: Pages S4455–59 Nominations Received: Senate received the fol- Amendments Submitted: Pages S4464–83 lowing nominations: Katherine Polk Failla, of New York, to be United Notices of Hearings/Meetings: Page S4483 States District Judge for the Southern District of Privileges of the Floor: Page S4483 New York. Record Votes: One record vote was taken today. Troy L. Nunley, of California, to be United States (Total—166) Page S4449 District Judge for the Eastern District of California. Adjournment: Senate convened at 2 p.m. and ad- Sheri Polster Chappell, of Florida, to be United journed at 7:10 p.m., until 10 a.m. on Tuesday, States District Judge for the Middle District of Flor- June 26, 2012. (For Senate’s program, see the re- ida. marks of the Acting Majority Leader in today’s 1 Army nomination in the rank of general. Record on page S4594.) Routine lists in the Air Force, Army, and Public Health Service. Pages S4594–S4600 Committee Meetings Messages from the House: Page S4459 Measures Referred: Page S4459 (Committees not listed did not meet) Additional Cosponsors: Pages S4460–61 No committee meetings were held. h House of Representatives Speaker: Read a letter from the Speaker wherein he Chamber Action appointed Representative Harris to act as Speaker Public Bills and Resolutions Introduced: 1 public pro tempore for today. Page H3979 bill, H.R. 6017 and 2 resolutions, H. Res. 701–702 Chaplain: The prayer was offered by the guest chap- were introduced. Page H3981 lain, Reverend Aaron Damiani, Church of the Res- Additional Cosponsors: Page H3981 urrection, Washington, DC. Page H3979 Reports Filed: A report was filed on June 22, 2012 Committee Leave of Absence: Read a letter from as follows: Representative Ruppersberger wherein he notified Recommending that the House of Representatives the House that he is taking a leave of absence from find Eric H. Holder, Jr., Attorney General, U.S. De- the Committee on Armed Services, effective imme- partment of Justice, in Contempt of Congress for diately. Page H3979 Refusal to Comply with a Subpoena Duly Issued by Senate Message: Message received from the Senate the Committee on Oversight and Government Re- by the Clerk and subsequently presented to the form (H. Rept. 112–546). House today appears on page H3979. Reports were filed today as followed: Third Quarter Report of the Activities of the Amendments: Amendments ordered printed pursu- Committee on Veterans’ Affairs During the 112th ant to the rule appear on page H3981. Congress (H. Rept. 112–547); Quorum Calls—Votes: There were no Yea-and-Nay H.R. 4018, to improve the Public Safety Officers’ votes, and there were no Recorded votes. There were Benefits Program, with an amendment (H. Rept. no quorum calls. 112–548); and Adjournment: The House met at 2 p.m. and ad- H.R. 4223, to amend title 18, United States journed at 2:03 p.m. Code, to prohibit theft of medical products, and for other purposes, with an amendment (H. Rept. 112–549). Page H3981 Committee Meetings No hearings were held.

VerDate Mar 15 2010 05:05 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D25JN2.REC D25JNPT1 tjames on DSK6SPTVN1PROD with DIGEST D650 CONGRESSIONAL RECORD — DAILY DIGEST June 25, 2012 of Florida, to be United States District Judge for the Joint Meetings Southern District of Florida, and vote on confirma- No joint committee meetings were held. tion of the nomination at approximately 12 p.m. f During the balance of the week, Senate may con- NEW PUBLIC LAWS sider any cleared legislative and executive business. (For last listing of Public Laws, see DAILY DIGEST, p. D624) Senate Committees H.R. 5883, to make a technical correction in Pub- (Committee meetings are open unless otherwise indicated) lic Law 112–108. Signed on June 21, 2012. (Public Law 112–135) Committee on Banking, Housing, and Urban Affairs: June H.R. 5890, to correct a technical error in Public 26, to hold hearings to examine empowering and protecting servicemembers, veterans and their families in the Law 112–122. Signed on June 21, 2012. (Public consumer financial marketplace, focusing on a status up- Law 112–136) date, 10 a.m., SD–538. f Committee on Commerce, Science, and Transportation: June 28, to hold hearings to examine the need for privacy pro- COMMITTEE MEETINGS FOR TUESDAY, tections, focusing on industry self-regulation, 10 a.m., JUNE 26, 2012 SR–253. (Committee meetings are open unless otherwise indicated) Committee on Energy and Natural Resources: June 27, Sub- committee on National Parks, to hold hearings to exam- Senate ine S. 1897, to amend Public Law 101–377 to revise the Committee on Banking, Housing, and Urban Affairs: to boundaries of the Gettysburg National Military Park to hold hearings to examine empowering and protecting include the Gettysburg Train Station, S. 2158, to estab- servicemembers, veterans and their families in the con- lish the Fox-Wisconsin Heritage Parkway National Herit- sumer financial marketplace, focusing on a status update, age Area, S. 2229, to authorize the issuance of right-of- 10 a.m., SD–538. way permits for natural gas pipelines in Glacier National Committee on Foreign Relations: business meeting to con- Park, S. 2267, to reauthorize the Hudson Valley National sider S. 1039, to impose sanctions on persons responsible Heritage Area, S. 2272, to designate a mountain in the for the detention, abuse, or death of Sergei Magnitsky, for State of Alaska as Mount Denali, S. 2273, to designate the conspiracy to defraud the Russian Federation of taxes the Talkeetna Ranger Station in Talkeetna, Alaska, as the on corporate profits through fraudulent transactions and Walter Harper Talkeetna Ranger Station, S. 2286, to lawsuits against Hermitage, and for other gross violations amend the Wild and Scenic Rivers Act to designate cer- of human rights in the Russian Federation, 2:15 p.m., tain segments of the Farmington River and Salmon Brook S–116, Capitol. in the State of Connecticut as components of the National Committee on the Judiciary: to hold hearings to examine Wild and Scenic Rivers System, S. 2316, to designate the S. 1994, to prohibit deceptive practices in Federal elec- Salt Pond Visitor Center at the Cape Cod National Sea- tions, 10 a.m., SD–226. shore as the ‘‘Thomas P. O’Neill, Jr. Salt Pond Visitor Select Committee on Intelligence: to hold closed hearings to Center’’, S. 2324, to amend the Wild and Scenic Rivers examine certain intelligence matters, 2:30 p.m., SH–219. Act to designate a segment of the Neches River in the House State of Texas for potential addition to the National Wild and Scenic River System, S. 2372, to authorize pedestrian Committee on Oversight and Government Reform: Sub- and motorized vehicular access in Cape Hatteras National committee on TARP, Financial Services and Bailout of Seashore Recreational Area, S. 3300, to establish the Public and Private Programs, hearing entitled ‘‘The JOBS Manhattan Project National Historical Park in Oak Act in Action: Overseeing Effective Implementation That Ridge, Tennessee, Los Alamos, New Mexico, and Han- Can Grow American Jobs’’, 2 p.m., 2154 Rayburn. ford, Washington, and S. 3078, to direct the Secretary of f the Interior to install in the area of the World War II CONGRESSIONAL PROGRAM AHEAD Memorial in the District of Columbia a suitable plaque or an inscription with the words that President Franklin Week of June 26 through June 29, 2012 D. Roosevelt prayed with the United States on June 6, 1944, the morning of D–Day, 3 p.m., SD–366. Senate Chamber June 28, Full Committee, to hold hearings to examine On Tuesday, Senate will resume consideration of innovative non-federal programs for financing energy effi- the Reid motion to concur in the amendment of the cient building retrofits, 9:30 a.m., SD–366. House of Representatives to S. 3187, Food and Drug Committee on Foreign Relations: June 26, business meet- Administration Safety and Innovation Act, post-clo- ing to consider S. 1039, to impose sanctions on persons ture. responsible for the detention, abuse, or death of Sergei Magnitsky, for the conspiracy to defraud the Russian Fed- On Tuesday, at 11:30 a.m., Senate will begin consideration of taxes on corporate profits through fraudulent eration of the nomination of Robin S. Rosenbaum, transactions and lawsuits against Hermitage, and for

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other gross violations of human rights in the Russian 2389, to deem the submission of certain claims to an In- Federation, 2:15 p.m., S–116, Capitol. dian Health Service contracting officer as timely, and S. June 27, Full Committee, to hold hearings to examine 3193, to make technical corrections to the legal descrip- the nomination of Derek J. Mitchell, of Connecticut, to tion of certain land to be held in trust for the Barona be Ambassador to the Union of Burma, Department of Band of Mission Indians, 2:15 p.m., SD–628. State, 10:30 a.m., SD–419. Committee on the Judiciary: June 26, to hold hearings to June 27, Full Committee, to receive a closed briefing examine S. 1994, to prohibit deceptive practices in Fed- on Syria, 2 p.m., SVC–217. eral elections, 10 a.m., SD–226. June 28, Full Committee, to hold hearings to examine June 27, Full Committee, to hold hearings to examine The Law of the Sea Convention (Treaty Doc. 103–39), fo- the nominations of Frank Paul Geraci, Jr., to be United cusing on perspectives from business and industry, 9:30 States District Judge for the Western District of New a.m., SH–216. York, Fernando M. Olguin, to be United States District June 28, Subcommittee on African Affairs, to hold Judge for the Central District of California, Malachy Ed- hearings to examine economic statecraft, focusing on em- ward Mannion, and Matthew W. Brann, both to be a bracing Africa’s market potential, 3 p.m., SD–419. United States District Judge for the Middle District of Committee on Homeland Security and Governmental Affairs: Pennsylvania, and Charles R. Breyer, of California, to be June 27, business meeting to consider S. 2345, to amend a Member of the United States Sentencing Commission, the District of Columbia Home Rule Act to permit the 10 a.m., SD–226. Government of the District of Columbia to determine the June 28, Full Committee, business meeting to consider fiscal year period, to make local funds of the District of S. 285, for the relief of Sopuruchi Chukwueke, S. 1744, Columbia for a fiscal year available for use by the District to provide funding for State courts to assess and improve upon enactment of the local budget act for the year sub- the handling of proceedings relating to adult guardian- ject to a period of Congressional review, S. 2178, to re- ship and conservatorship, to authorize the Attorney Gen- quire the Federal Government to expedite the sale of un- eral to carry out a pilot program for the conduct of back- derutilized Federal real property, S. 2170, to amend the ground checks on individuals to be appointed as guard- provisions of title 5, United States Code, which are com- ians or conservators, and to promote the widespread adop- monly referred to as the ‘‘Hatch Act’’ to eliminate the tion of information technology to better monitor, report, provision preventing certain State and local employees and audit conservatorships of protected persons, and the from seeking elective office, clarify the application of cer- nominations of Terrence G. Berg, to be United States tain provisions to the District of Columbia, and modify District Judge for the Eastern District of Michigan, Jesus the penalties which may be imposed for certain violations G. Bernal, to be United States District Judge for the under subchapter III of chapter 73 of that title, S. 2234, Central District of California, Lorna G. Schofield, to be to prevent human trafficking in government contracting, United States District Judge for the Southern District of S. 2239, to direct the head of each agency to treat rel- New York, and Danny Chappelle Williams, Sr., of Okla- evant military training as sufficient to satisfy training or homa, to be United States Attorney for the Northern certification requirements for Federal licenses, H.R. 915, District of Oklahoma, Department of Justice, 10 a.m., to establish a Border Enforcement Security Task Force SD–226. program to enhance border security by fostering coordi- Committee on Veterans’ Affairs: June 27, to hold hearings nated efforts among Federal, State, and local border and to examine health and benefits legislation, 10 a.m., law enforcement officials to protect United States border SD–124. cities and communities from trans-national crime, includ- Select Committee on Intelligence: June 26, to hold closed ing violence associated with drug trafficking, arms smug- hearings to examine certain intelligence matters, 2:30 gling, illegal alien trafficking and smuggling, violence, p.m., SH–219. and kidnapping along and across the international borders June 28, Full Committee, to hold closed hearings to of the United States, and S. 3315, to repeal or modify certain mandates of the Government Accountability Of- examine certain intelligence matters, 2:30 p.m., SH–219. fice, 10 a.m., SD–342. House Committees Committee on Indian Affairs: June 28, business meeting to consider H.R. 443, to provide for the conveyance of Committee on Agriculture: June 27, Full Committee, certain property from the United States to the Maniilaq markup of Activity Report of the Committee on Agri- Association located in Kotzebue, Alaska, H.R. 1560, to culture for the 3rd Quarter of the 112th Congress, 10 amend the Ysleta del Sur Pueblo and Alabama and a.m., 1300 Longworth. Coushatta Indian Tribes of Texas Restoration Act to Committee on Appropriations: June 27, Full Committee, allow the Ysleta del Sur Pueblo Tribe to determine blood markup of the adoption of the Semiannual Activities Re- quantum requirement for membership in that tribe, H.R. port of the Committee on Appropriations; and Interior, 1272, to provide for the use and distribution of the funds Environment, and Related Agencies Appropriations Bill, awarded to the Minnesota Chippewa Tribe, et al., by the FY 2013, 10 a.m., 2359 Rayburn. United States Court of Federal Claims in Docket Num- Committee on Armed Services: June 27, Full Committee, bers 19 and 188, S. 134, to authorize the Mescalero markup of the Third Semiannual Report on the Activities Apache Tribe to lease adjudicated water rights, S. 1065, of the Committee on Armed Services for the 112th Con- to settle land claims within the Fort Hall Reservation, S. gress, 10 a.m., 2118 Rayburn.

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June 27, Subcommittee on Strategic Forces, hearing ‘‘Economic Espionage: A Foreign Intelligence Threat to entitled ‘‘The Creation and Implementation of the Na- American Jobs and Homeland Security’’, 10 a.m., 311 tional Nuclear Security Administration’’, 3:30 p.m., 2118 Cannon. Rayburn. Committee on the Judiciary: June 27, Subcommittee on Committee on the Budget: June 27, Full Committee, Intellectual Property, Competition and the Internet, hear- markup of H.R. 5872, the ‘‘Sequestration Transparency ing entitled ‘‘International IP Enforcement: Protecting Act of 2012’’, 10 a.m., 210 Cannon. Patents, Trade Secrets and Market Access’’, 10 a.m., 2141 Committee on Education and the Workforce: June 27, Full Rayburn. Committee, markup of Report on the Activities of the June 27, Subcommittee on the Constitution, hearing Committee on Education and the Workforce for the third on H.R. 3356, the ‘‘ACCESS (ADA Compliance for Cus- quarter of the 112th Congress, 10 a.m., 2175 Rayburn. tomer Entry to Stores and Services) Act’’, 1:30 p.m., June 28, Subcommittee on Workforce Protections, 2141 Rayburn. hearing entitled ‘‘Promoting Safe Workplaces Through June 28, Subcommittee on Crime, Terrorism, and Voluntary Protection Programs’’, 10 a.m., 2175 Rayburn. Homeland Security, hearing entitled ‘‘Identity Theft and Committee on Energy and Commerce: June 27, Sub- Income Tax Preparation Fraud’’, 10 a.m., 2141 Rayburn. committee on Environment and the Economy, hearing on Committee on Natural Resources: June 27, Subcommittee discussion draft of the ‘‘Increasing Manufacturing Com- on Water and Power, hearing entitled ‘‘Mandatory Condi- petitiveness Through Improved Recycling Act of 2012’’; tioning Requirements on Hydropower: How Federal Re- and H.R. 2997, the ‘‘Superfund Common Sense Act’’, source Agencies are Driving Up Electricity Costs and De- 10:15 a.m., 2322 Rayburn. creasing the Original Green Energy’’, 10 a.m., 1324 June 27, Subcommittee on Communications and Tech- Longworth. nology, hearing entitled ‘‘The Future of Video’’, 10 a.m., June 27, Subcommittee on Indian and Alaska Native 2123 Rayburn. Affairs, hearing entitled ‘‘Authorization, standards, and June 28, Subcommittee on Workforce Protections, procedures for whether, how, and when Indian tribes hearing entitled ‘‘Promoting Safe Workplaces Through should be newly recognized by the federal government’’, Voluntary Protection Programs’’, 10 a.m., 2175 Rayburn. 2 p.m., 1334 Longworth. June 28, Subcommittee on Energy and Power, hearing June 28, Subcommittee on National Parks, Forests and entitled ‘‘The American Energy Initiative: A Focus on the Public Lands, hearing on the following measures: H.R. New Proposal to Tighten National Standards for Fine 5987, the ‘‘Manhattan Project National Historical Park Particulate Matter’’, 10 a.m., 2123 Rayburn. Act’’; H.R. 624, the ‘‘First State National Historic Park June 29, Subcommittee on Energy and Power, hearing Act’’; H.R. 3640, to authorize the Secretary of the Inte- entitled ‘‘The American Energy Initiative: A Focus on rior to acquire not more than 18 acres of land and inter- EPA’s Greenhouse Gas Regulations’’, 9 a.m., 2123 Ray- ests in land in Mariposa, California, and for other pur- burn. poses; H.R. 4109, the ‘‘Los Padres Conservation and Committee on Financial Services: June 27, Full Com- Recreation Act of 2012’’; H.R. 4334, the ‘‘Organ Moun- mittee, markup of Semiannual Report on Activities of the tains National Monument Establishment Act’’; H.R. Committee on Financial Services of the House of Rep- 4484, the ‘‘Y Mountain Access Enhancement Act’’; H.R. resentatives During the 112th Congress; and H.R. 4367, 5319, the ‘‘Nashua River Wild and Scenic River Study to amend the Electronic Fund Transfer Act to limit the Act’’; H.R. 5958, to name the Jamaica Bay Wildlife Ref- fee disclosure requirement for an automatic teller machine uge Visitor Contact Station of the Jamaica Bay Wildlife to the screen of that machine, 10 a.m., 2128 Rayburn. Refuge unit of Gateway National Recreation Area in June 28, Subcommittee on Domestic Monetary Policy, honor of James L. Buckley, 10 a.m., 1324 Longworth. hearing entitled ‘‘Fractional Reserve Banking and the Committee on Oversight and Government Reform: June 27, Federal Reserve: The Economic Consequences of High- Full Committee, business meeting, 10 a.m., 2154 Ray- Powered Money’’, 2 p.m., 2128 Rayburn. burn. June 28, Subcommittee on Insurance, Housing and June 28, Subcommittee on National Security, Home- Community Opportunity, hearing entitled ‘‘Appraisal land Defense and Foreign Operations, hearing entitled Oversight: The Regulatory Impact on Consumers and ‘‘Assessment of the Transition from a Military to a Civil- Businesses’’, 10 a.m., 2128 Rayburn. ian-Led Mission in Iraq’’, 9:15 a.m., 2154 Rayburn. June 29, Subcommittee on Financial Institutions and June 28, Subcommittee on TARP, Financial Services Consumer Credit, hearing entitled ‘‘The Future of Money: and Bailout of Public and Private Programs, hearing enti- Where Do Mobile Payments Fit the Current Regulatory tled ‘‘The JOBS Act in Action Part II: Overseeing Effec- Structure?’’, 9:30 a.m., Rayburn. tive Implementation of the JOBS Act at the SEC’’, 9:30 Committee on Foreign Affairs: June 27, Full Committee, a.m., 2247 Rayburn. markup of the ‘‘Foreign Relations Authorization Act, Fis- June 28, Subcommittee on Technology, Information cal Year 2013’’, 10 a.m., 2172 Rayburn. Policy, Intergovernmental Relations and Procurement Re- June 29, Subcommittee on Africa, Global Health, and form, hearing entitled, ‘‘Mandate Madness: When Sue Human Rights, hearing entitled ‘‘The Tuareg Revolt and and Settle Just Isn’t Enough’’, 9 a.m., 2203 Rayburn. the Mali Coup’’, 10 a.m., 2172 Rayburn. Committee on Science, Space, and Technology: June 27, Sub- Committee on Homeland Security: June 28, Subcommittee committee on Research and Science Education, hearing on Counterterrorism and Intelligence, hearing entitled entitled ‘‘The Role of Research Universities in Securing

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America’s Future Prosperity: Challenges and Expecta- Committee on Veterans’ Affairs: June 27, Subcommittee tions’’, 10 a.m., 2318 Rayburn. on Oversight and Investigation, markup of pending legis- June 28, Subcommittee on Investigations and Over- lation, 10 a.m., 334 Cannon. sight and Subcommittee on Energy and Environment, June 27, Subcommittee on Disability Assistance and joint hearing entitled ‘‘Continuing Oversight of the Na- Memorial Affairs, markup of pending legislation, 2 p.m., tion’s Weather Satellite Programs: An Update on JPSS 334 Cannon. and GOES–R’’, 2 p.m., 2318 Rayburn. Committee on Ways and Means: June 27, Subcommittee June 28, Full Committee, hearing entitled ‘‘Strength- on Human Resources and Subcommittee on Select Rev- ening the Scientific Backbone of the EPA: An Examina- enue Measure, joint hearing entitled ‘‘How Welfare and tion of Agency Practices and Foundations for Regulations Tax Benefits Can Discourage Work’’, 10 a.m., 1100 Affecting the American Economy’’, 10 a.m., 2318 Ray- Longworth. burn. Committee on Small Business: June 27, Full Committee, June 27, Subcommittee on Social Security, hearing en- markup of Semiannual Report on the Activity of the titled ‘‘Securing the Future of the Disability Insurance Committee on Small Business; and Full Committee, hear- Program’’, 2 p.m., B–318 Rayburn. ing entitled ‘‘Regulatory Flexibility Act Compliance: Is House Permanent Select Committee on Intelligence: June 27, EPA Failing Small Businesses?’’ 1 p.m., 2360 Rayburn. Full Committee, hearing on ongoing intelligence activi- June 28, Subcommittee on Contracting and Workforce, ties, 10 a.m., HVC–304 Capitol. hearing entitled ‘‘Unlocking Opportunities: Recidivism June 28, Full Committee, hearing on H.R. 5949, the versus Fair Competition in Federal Contracting’’, 10 a.m., ‘‘FISA Amendments Act Reauthorization Act of 2012’’; 2360 Rayburn. and adoption of the Semiannual Committee Activity Re- Committee on Transportation and Infrastructure: June 27, port, 10 a.m., HVC–304 Capitol. A portion of this hear- Subcommittee on Coast Guard & Maritime Transpor- ing will be closed. tation, hearing entitled ‘‘A Review of Vessels Used To Carry Strategic Petroleum Reserve Drawdowns’’, 10 a.m., Joint Meetings 2167 Rayburn. Joint Hearing: June 28, Senate Committee on Finance, June 28, Full Committee, hearing entitled ‘‘A Review to hold a joint hearing with the House Committee on of the Delays and Problems Associated with TSA’s Trans- Ways and Means to examine tax reform and the tax treat- portation Worker Identification Credential’’, 10 a.m., 2167 Rayburn. ment of capital gains, 10 a.m., HVC–210.

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Next Meeting of the SENATE olas Scott Hartge Post Office’’; (7) H.R. 3412—To designate 10 a.m., Tuesday, June 26 the facility of the United States Postal Service located at 1421 Veterans Memorial Drive in Abbeville, Louisiana, as the ‘‘Ser- Senate Chamber geant Richard Franklin Abshire Post Office Building’’; (8) H.R. 3593—To designate the facility of the United States Program for Tuesday: Senate will resume consideration of the Postal Service located at 787 State Route 17M in Monroe, New Reid motion to concur in the amendment of the House of Rep- resentatives to S. 3187, Food and Drug Administration Safety York, as the ‘‘National Clandestine Service of the Central Intel- and Innovation Act, post-cloture. ligence Agency NCS Officer Gregg David Wenzel Memorial At 11:30 a.m., Senate will begin consideration of the nomi- Post Office’’; (9) H.R. 3772—To designate the facility of the nation of Robin S. Rosenbaum, of Florida, to be United States United States Postal Service located at 150 South Union Street District Judge for the Southern District of Florida, and vote on in Canton, Mississippi, as the ‘‘First Sergeant Landres Cheeks confirmation of the nomination at approximately 12 p.m. Post Office Building’’; (10) H.R. 3276—To designate the facil- (Senate will recess from 12:30 p.m. until 2:15 p.m. for their re- ity of the United States Postal Service located at 2810 East spective party conferences.) Hillsborough Avenue in Tampa, Florida, as the ‘‘Reverend Abe Brown Post Office Building’’; (11) Senate Amendment to H.R. Next Meeting of the HOUSE OF REPRESENTATIVES 2297—To promote the development of the Southwest water- front in the District of Columbia, and for other purposes; (12) 12 p.m., Tuesday, June 26 H.R. 4251—Securing Maritime Activities through Risk-based Targeting for Port Security Act; (13) H.R. 4005—GAPS Act; (14) H.R. 1447—Aviation Security Stakeholder Participation House Chamber Act; (15) H.R. 5843—To amend the Homeland Security Act Program for Tuesday: Consideration of the following meas- of 2002 to permit use of certain grant funds for training con- ures under suspension of the Rules: (1) H.R. 4850—Enabling ducted in conjunction with a national laboratory or research fa- Energy Saving Innovations Act; (2) H.R. 5625—Collinsville cility; and (16) H.R. 3173—To direct the Secretary of Home- Renewable Energy Promotion Act; (3) H.R. 5889—Nuclear land Security to reform the process for the enrollment, activa- Terrorism Conventions Implementation and Safety of Maritime tion, issuance, and renewal of a Transportation Worker Identi- Navigation Act of 2012, as amended; (4) H.R. 4223—Safe fication Credential (TWIC) to require, in total, not more than Doses Act; (5) H.R. 4018—Public Safety Officers’ Benefits Im- one in-person visit to a designated enrollment center. Begin provements Act of 2012, as amended; (6) H.R. 3501—To des- Consideration of H.R. 5972—Transportation, Housing and ignate the facility of the United States Postal Service located Urban Development, and Related Agencies Appropriations Act, at 125 Kerr Avenue in Rome City, Indiana, as the ‘‘SPC Nich- 2013.

Extensions of Remarks, as inserted in this issue

HOUSE

Andrews, Robert E., N.J., E1131 Cleaver, Emanuel, Mo., E1131 Quigley, Mike, Ill., E1131 Tiberi, Patrick J., Ohio, E1131, E1132 Walden, Greg, Ore., E1132

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