S. 954 — what changed

“I Regional Conservation Partnership Program

“1271. Establishment and purposes

“(a) Establishment—The Secretary shall establish a Regional Conservation Partnership Program to implement eligible activities through—

“(1) partnership agreements with eligible partners; and

“(2) contracts with producers.

“(b) Purposes—The purposes of the program are—

“(1) to combine the purposes and coordinate the functions of—

“(A) the agricultural water enhancement program established under section 1240I;

“(B) the Chesapeake Bay watershed program established under section 1240Q;

“(C) the cooperative conservation partnership initiative established under section 1243; and

“(D) the Great Lakes basin program for soil erosion and sediment control established under section 1240P;

“(2) to further the conservation, restoration, and sustainable use of soil, water, wildlife, and related natural resources on a regional or watershed scale; and

“(3) to encourage partners to cooperate with producers in—

“(A) meeting or avoiding the need for national, State, and local natural resource regulatory requirements related to production; and

“(B) implementing projects that will result in the installation and maintenance of eligible activities that affect multiple agricultural or nonindustrial private forest operations on a local, regional, State, or multi-State basis.

“1271A. Definitions

“In this subtitle:

“(1) Covered programs—The term “covered programs” means—

“(A) the agricultural conservation easement program;

“(B) the environmental quality incentives program;

“(C) the conservation stewardship program; and

“(D) the healthy forests reserve program established under section 501 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571).

“(2) Eligible activity—The term “eligible activity” means any of the following conservation activities when delivered through a covered program:

“(A) Water quality restoration or enhancement projects, including nutrient management and sediment reduction.

“(B) Water quantity conservation, restoration, or enhancement projects relating to surface water and groundwater resources, including—

“(i) the conversion of irrigated cropland to the production of less water-intensive agricultural commodities or dryland farming; and

“(ii) irrigation system improvement and irrigation efficiency enhancement.

“(C) Drought mitigation.

“(D) Flood prevention.

“(E) Water retention.

“(F) Habitat conservation, restoration, and enhancement.

“(G) Erosion control.

“(H) Forest restoration, including recovery of threatened and endangered species, improvement of biodiversity, and enhancement of carbon sequestration.

“(I) Other related activities that the Secretary determines will help achieve conservation benefits.

“(3) Eligible partner—The term “eligible partner” means any of the following:

“(A) An agricultural or silvicultural producer association or other group of producers.

“(B) A State or unit of local government.

“(C) An Indian tribe.

“(D) A farmer cooperative.

“(E) An institution of higher education.

“(F) A municipal water or wastewater treatment entity.

“(G) An organization or other nongovernmental entity with an established history of working cooperatively with producers on agricultural land, as determined by the Secretary, to address—

“(i) local conservation priorities related to agricultural production, wildlife habitat development, and nonindustrial private forest land management; or

“(ii) critical watershed-scale soil erosion, water quality, sediment reduction, or other natural resource concerns.

“(4) Partnership agreement—The term “partnership agreement” means an agreement between the Secretary and an eligible partner.

“(5) Program—The term “program” means the Regional Conservation Partnership Program established by this subtitle.

“1271B. Regional conservation partnerships

“(a) Partnership agreements authorized—The Secretary may enter into a partnership agreement with an eligible partner to implement a project that will assist producers with installing and maintaining an eligible activity.

“(b) Length—A partnership agreement shall be for a period not to exceed 5 years, except that the Secretary may extend the agreement 1 time for up to 12 months when an extension is necessary to meet the objectives of the program.

“(c) Duties of partners

“(1) In general—Under a partnership agreement, the eligible partner shall—

“(A) define the scope of a project, including—

“(i) the eligible activities to be implemented;

“(ii) the potential agricultural or nonindustrial private forest operations affected;

“(iii) the local, State, multi-State or other geographic area covered; and

“(iv) the planning, outreach, implementation and assessment to be conducted;

“(B) conduct outreach and education to producers for potential participation in the project;

“(C) at the request of a producer, act on behalf of a producer participating in the project in applying for assistance under section 1271C;

“(D) leverage financial or technical assistance provided by the Secretary with additional funds to help achieve the project objectives;

“(E) conduct an assessment of the project’s effects; and

“(F) at the conclusion of the project, report to the Secretary on its results and funds leveraged.

“(2) Contribution—A partner shall provide a significant portion of the overall costs of the scope of the project as determined by the Secretary.

“(d) Applications

“(1) Competitive process—The Secretary shall conduct a competitive process to select applications for partnership agreements and may assess and rank applications with similar conservation purposes as a group.

“(2) Criteria used—In carrying out the process described in paragraph (1), the Secretary shall make public the criteria used in evaluating applications.

“(3) Content—An application to the Secretary shall include a description of—

“(A) the scope of the project as described in subsection (c)(1)(A);

“(B) the plan for monitoring, evaluating, and reporting on progress made towards achieving the project’s objectives;

“(C) the program resources requested for the project, including the covered programs to be used and estimated funding needed from the Secretary;

“(D) the partners collaborating to achieve project objectives, including their roles, responsibilities, capabilities, and financial contribution; and

“(E) any other elements the Secretary considers necessary to adequately evaluate and competitively select applications for funding under the program.

“(4) Application selection

“(A) Priority to certain applications—The Secretary shall give a higher priority to applications that—

“(i) assist producers in meeting or avoiding the need for a natural resource regulatory requirement;

“(ii) significantly leverage non-Federal financial and technical resources and coordinate with other local, State, regional, or national efforts;

“(iii) deliver high percentages of applied conservation to address conservation priorities or local, State, regional, or national conservation initiatives;

“(iv) provide innovation in conservation methods and delivery, including outcome-based performance measures and methods; or

“(v) provide innovation in the improvement and delivery of water quality or quantity, including outcome-based performance measures and methods.

“(B) Other applications—The Secretary may give priority to applications that—

“(i) have a high percentage of producers in the area to be covered by the agreement; or

“(ii) meet other factors that are important for achieving the purposes of the program, as determined by the Secretary.

“1271C. Assistance to producers

“(a) In general—The Secretary shall enter into contracts to provide financial and technical assistance to—

“(1) producers participating in a project with an eligible partner as described in section 1271B; or

“(2) producers that fit within the scope of a project described in section 1271B or a critical conservation area designated pursuant to section 1271F, but who are seeking to implement an eligible activity independent of a partner.

“(b) Terms and conditions

“(1) Consistency with program rules

“(A) In general—Except as provided in paragraph (2) and subparagraph (B), the Secretary shall ensure that the terms and conditions of a contract under this section are consistent with the applicable rules of the covered programs to be used as part of the partnership agreement, as described in the application under section 1271B(d)(3)(C).

“(B) Adjustments

“(i) In general—The Secretary may adjust rules of a covered program, including—

“(I) operational guidance and requirements for a covered program at the discretion of the Secretary so as to provide a simplified application and evaluation process; and

“(II) nonstatutory, regulatory rules or provisions to better reflect unique local circumstances and purposes if the Secretary determines such adjustments are necessary to achieve the purposes of the covered program.

“(ii) Limitation—The Secretary shall not adjust the application of statutory requirements for a covered program, including requirements governing appeals, payment limits, and conservation compliance.

added “(iii) Irrigation—In States where irrigation has not been used significantly for agricultural purposes, as determined by the Secretary, the Secretary shall not limit eligibility under section 1271B or this section on the basis of prior irrigation history.

“(2) Alternative funding arrangements

“(A) In general—Notwithstanding paragraph (1)(A), for the purposes of providing assistance for land described in subsection (a) and section 1271F, the Secretary may enter into alternative funding arrangements with a multistate water resource agency or authority if—

“(i) the Secretary determines that the goals and objectives of the program will be met by the alternative funding arrangements;

“(ii) the agency or authority certifies that the limitations established under this section on agreements with individual producers will not be exceeded; and

“(iii) all participating producers meet applicable payment eligibility provisions.

“(B) Conditions—As a condition on receipt of funding under subparagraph (A), the multistate water resource agency or authority shall agree—

“(i) to submit an annual independent audit to the Secretary that describes the use of funds under this paragraph;

“(ii) to provide any data necessary for the Secretary to issue a report on the use of funds under this paragraph; and

“(iii) not to use any of the funds provided pursuant to subparagraph (A) for administration or provide for administrative costs through contracts with another entity.

“(C) Limitation—The Secretary may enter into at least 10 but not more than 20 alternative funding arrangements under this paragraph.

“(c) Payments

“(1) In general—In accordance with statutory requirements of the covered programs involved, the Secretary may make payments to a producer in an amount determined by the Secretary to be necessary to achieve the purposes of the program.

“(2) Payments to certain producers—The Secretary may provide payments for a period of 5 years—

“(A) to producers participating in a project that addresses water quantity concerns and in an amount sufficient to encourage conversion from irrigated to dryland farming; and

“(B) to producers participating in a project that addresses water quality concerns and in an amount sufficient to encourage adoption of conservation practices and systems that improve nutrient management.

“(3) Waiver authority—To assist in the implementation of the program, the Secretary may waive the applicability of the limitation in section 1001D(b)(2) of this Act for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program.

“1271D. Funding

“(a) Availability of funds—The Secretary shall use $110,000,000 of the funds of the Commodity Credit Corporation for each of fiscal years 2014 through 2018 to carry out the program established under this subtitle.

“(b) Duration of availability—Funds made available under subsection (a) shall remain available until expended.

“(c) Additional funding and acres

“(1) In general—In addition to the funds made available under subsection (a), the Secretary shall reserve 8 percent of the funds and acres made available for a covered program for each of fiscal years 2014 through 2018 in order to ensure additional resources are available to carry out this program.

“(2) Unused funds and acres—Any funds or acres reserved under paragraph (1) for a fiscal year from a covered program that are not obligated under this program by April 1 of that fiscal year shall be returned for use under the covered program.

“(d) Allocation of funding—Of the funds and acres made available for the program under subsections (a) and (c), the Secretary shall allocate—

“(1) 25 percent of the funds and acres to projects based on a State competitive process administered by the State conservationist, with the advice of the State technical committee;

“(2) 40 percent of the funds and acres to projects based on a national competitive process to be established by the Secretary; and

“(3) 35 percent of the funds and acres to projects for the critical conservation areas designated in section 1271F.

“(e) Limitation on administrative expenses—None of the funds made available under the program may be used to pay for the administrative expenses of partners.

“1271E. Administration

“(a) Disclosure—In addition to the criteria used in evaluating applications as described in section 1271B(d)(2), the Secretary shall make publicly available information on projects selected through the competitive process described in section 1271B(d)(1).

“(b) Reporting—Not later than December 31, 2014, and for every 2 years thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the status of projects funded under the program, including—

“(1) the number and types of partners and producers participating in the partnership agreements selected;

“(2) the number of producers receiving assistance;

“(3) total funding committed to projects, including Federal and non-Federal resources; and

“(4) a description of how the funds under section 1271C(b)(3) are being administered, including—

“(A) any oversight mechanisms that the Secretary has implemented;

“(B) the process through which the Secretary is resolving appeals by program participants; and

“(C) the means by which the Secretary is tracking adherence to any applicable provisions for payment eligibility.

“1271F. Critical conservation areas

“(a) In general—When administering the funding described in section 1271D(d)(3), the Secretary shall select applications for partnership agreements and producer contracts within designated critical conservation areas.

“(b) Critical conservation area designations

“(1) In general—The Secretary shall designate up to 6 geographical areas as critical conservation areas based on the degree to which an area—

“(A) includes multiple States with significant agricultural production;

“(B) is covered by an existing regional, State, binational, or multistate agreement or plan that has established objectives, goals and work plans and is adopted by a Federal, State, or regional authority;

“(C) has water quality concerns, including concerns for reducing erosion, promoting sediment control, and addressing nutrient management activities affecting large bodies of water of regional, national, or international significance;

“(D) has water quantity concerns, including—

“(i) concerns for groundwater, surface water, aquifer, or other water sources; or

“(ii) a need to promote water retention and flood prevention;

“(E) is vital habitat for migrating wildlife; or

“(F) is subject to regulatory requirements that could reduce the economic scope of agricultural operations within the area.

“(2) Expiration—Critical conservation area designations under this section shall expire after 5 years, subject to redesignation, except that the Secretary may withdraw designation from an area if the Secretary finds the area no longer meets the conditions described in paragraph (1).

“(c) Administration

“(1) In general—Except as provided in paragraph (2), the Secretary shall administer any partnership agreement or producer contract under this section in a manner that is consistent with the terms of the program.

“(2) Relationship to existing activity—The Secretary shall, to the maximum extent practicable, ensure that eligible activities carried out in critical conservation areas designated under this section complement and are consistent with other Federal and State programs and water quality and quantity strategies.”

Section 3206 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1726c) is amended—

“(b) Field-Based projects”

“(A) In general—To be eligible”

“(e) Funding

changed “(1) Authorization of appropriations—There is authorized to be appropriated to carry out this section $40,000,000 $60,000,000 for each of fiscal years 2014 through 2018.

“(2) Preference—In carrying out this section, the Secretary may give a preference to eligible organizations that have, or are working toward, projects under the McGovern-Dole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1).

“(3) Reporting—Each year, the Secretary shall submit to the appropriate committees of Congress a report that describes the use of funds under this section, including—

“(A) the impact of procurements and projects on—

“(i) local and regional agricultural producers; and

“(ii) markets and consumers, including low-income consumers; and

“(B) implementation time frames and costs.”

added “(5) a public or private nonprofit food purchasing and delivery service that—

added “(A) purchases food for, and delivers the food to, individuals who are—

added “(i) unable to shop for food; and

added “(ii)

added “(I) not less than 60 years of age; or

added “(II) individuals with disabilities;

added “(B) clearly notifies the participating household at the time the household places a food order—

added “(i) of any delivery fee associated with the food purchase and delivery provided to the household by the service; and

added “(ii) that a delivery fee cannot be paid with benefits provided under the supplemental nutrition assistance program; and

added “(C) sells food purchased for the household at the price paid by the service for the food without any additional cost markup.”

removed “(l) Feasibility study for Indian tribes

removed “(1) In general—The Secretary shall conduct a study to determine the feasibility of a tribal demonstration project for tribes, in lieu of State agencies or other administrating entities, to administer Federal food assistance programs, services, functions, and activities (or portions thereof).

removed “(2) Considerations—In conducting the study, the Secretary shall consider—

removed “(A) the probable effects on specific programs and program beneficiaries of such a demonstration project;

removed “(B) statutory, regulatory, or other impediments to implementation of such a demonstration project;

removed “(C) strategies for implementing such a demonstration project;

removed “(D) probable costs or savings associated with such a demonstration project;

removed “(E) methods to assure quality and accountability in such a demonstration project; and

removed “(F) such other issues that may be determined by the Secretary or developed through consultation pursuant to paragraph (4).

removed “(3) Report—Not later than 18 months after the date of the enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that contains—

removed “(A) the results of the study under this subsection;

removed “(B) a list of programs, services, functions, and activities (or portions thereof) within each agency that would be feasible to include in a tribal demonstration project;

removed “(C) a list of programs, services, functions, and activities (or portions thereof) included in the list described in subparagraph (B) that could be included in a tribal demonstration project without amending existing law or without waiving regulations that the Secretary may not waive; and

removed “(D) a list of legislative actions required in order to include those programs, services, functions, and activities (or portions thereof) included in the list described in subparagraph (B) but not included in the list described in subparagraph (C) in a tribal demonstration project.

removed “(4) Consultation with Indian tribes

removed “(A) In general—Prior to consultation, the Secretary shall consult with Indian tribes to determine a protocol for consultation.

removed “(B) Requirements—The protocol shall require, at a minimum, that—

removed “(i) the government-to-government relationship with Indian tribes forms the basis for the consultation process;

removed “(ii) the Indian tribes and the Secretary jointly conduct the consultations required by this paragraph; and

removed “(iii) the consultation process allows for separate and direct recommendations from the Indian tribes and other entities referenced in this subsection.”

removed “(F) Traditional and locally-grown food—A tribe that is authorized to administer the distribution described in paragraph (1) shall have the option to use 5 percent of the program funding of the tribe to promote local purchase of traditional and locally-grown food to be used in the food package of the tribe by purchasing traditional and locally-grown foods from local Native American farmers, ranchers, and producers.”

removed “(I) In general—Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating and cooling costs, the standard utility allowance shall be made available to households that have received a payment, or on behalf of which a payment has been made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if in the current month or during the immediately preceding 12 months, the household either has received a payment, or a payment has been made on behalf of the household, that is greater than $10 annually, as determined by the Secretary.”

added “(l) Feasibility study for Indian tribes

added “(1) In general—The Secretary shall conduct a study to determine the feasibility of a tribal demonstration project for tribes, in lieu of State agencies or other administrating entities, to administer Federal food assistance programs, services, functions, and activities (or portions thereof).

added “(2) Considerations—In conducting the study, the Secretary shall consider—

added “(A) the probable effects on specific programs and program beneficiaries of such a demonstration project;

added “(B) statutory, regulatory, or other impediments to implementation of such a demonstration project;

added “(C) strategies for implementing such a demonstration project;

added “(D) probable costs or savings associated with such a demonstration project;

added “(E) methods to assure quality and accountability in such a demonstration project; and

added “(F) such other issues that may be determined by the Secretary or developed through consultation pursuant to paragraph (4).

added “(3) Report—Not later than 18 months after the date of the enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that contains—

added “(A) the results of the study under this subsection;

added “(B) a list of programs, services, functions, and activities (or portions thereof) within each agency that would be feasible to include in a tribal demonstration project;

added “(C) a list of programs, services, functions, and activities (or portions thereof) included in the list described in subparagraph (B) that could be included in a tribal demonstration project without amending existing law or without waiving regulations that the Secretary may not waive; and

added “(D) a list of legislative actions required in order to include those programs, services, functions, and activities (or portions thereof) included in the list described in subparagraph (B) but not included in the list described in subparagraph (C) in a tribal demonstration project.

added “(4) Consultation with Indian tribes

added “(A) In general—Prior to consultation, the Secretary shall consult with Indian tribes to determine a protocol for consultation.

added “(B) Requirements—The protocol shall require, at a minimum, that—

added “(i) the government-to-government relationship with Indian tribes forms the basis for the consultation process;

added “(ii) the Indian tribes and the Secretary jointly conduct the consultations required by this paragraph; and

added “(iii) the consultation process allows for separate and direct recommendations from the Indian tribes and other entities referenced in this subsection.”

added “(F) Traditional and locally-grown food—A tribe that is authorized to administer the distribution described in paragraph (1) shall have the option to use 5 percent of the program funding of the tribe to promote local purchase of traditional and locally-grown food to be used in the food package of the tribe by purchasing traditional and locally-grown foods from local Native American farmers, ranchers, and producers.”

added “(I) In general—Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating and cooling costs, the standard utility allowance shall be made available to households that have received a payment, or on behalf of which a payment has been made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if in the current month or during the immediately preceding 12 months, the household either has received a payment, or a payment has been made on behalf of the household, that is greater than $10 annually, as determined by the Secretary.”

removed Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking “section” and inserting the following: “section, subject to the condition that the course or program of study—

removed “(i) is part of a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302)) that may be completed in not more than 4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)); or

removed “(ii) is limited to remedial courses, basic adult education, literacy, or English as a second language;”

added Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking “section” and inserting the following: “section, subject to the condition that the course or program of study—

added “(i) is part of a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302)) that may be completed in not more than 4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)); or

added “(ii) is limited to remedial courses, basic adult education, literacy, or English as a second language;”

removed “(r) Ineligibility for benefits due to receipt of substantial lottery or gambling winnings

removed “(1) In general—Any household in which a member receives substantial lottery or gambling winnings, as determined by the Secretary, shall lose eligibility for benefits immediately upon receipt of the winnings.

removed “(2) Duration of ineligibility—A household described in paragraph (1) shall remain ineligible for participation until the household meets the allowable financial resources and income eligibility requirements under subsections (c), (d), (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.

removed “(3) Agreements—As determined by the Secretary, each State agency, to the maximum extent practicable, shall establish agreements with entities responsible for the regulation or sponsorship of gaming in the State to determine whether individuals participating in the supplemental nutrition assistance program have received substantial lottery or gambling winnings.”

added “(r) Ineligibility for benefits due to receipt of substantial lottery or gambling winnings

added “(1) In general—Any household in which a member receives substantial lottery or gambling winnings, as determined by the Secretary, shall lose eligibility for benefits immediately upon receipt of the winnings.

added “(2) Duration of ineligibility—A household described in paragraph (1) shall remain ineligible for participation until the household meets the allowable financial resources and income eligibility requirements under subsections (c), (d), (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.

added “(3) Agreements—As determined by the Secretary, each State agency, to the maximum extent practicable, shall establish agreements with entities responsible for the regulation or sponsorship of gaming in the State to determine whether individuals participating in the supplemental nutrition assistance program have received substantial lottery or gambling winnings.”

removed “(2) Imposition of costs

removed “(A) In general—Except as provided in subparagraph (B), the Secretary shall require participating retail food stores (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies, including related services.

removed “(B) Exemptions—The Secretary may exempt from subparagraph (A)—

removed “(i) farmers’ markets and other direct-to-consumer markets, military commissaries, nonprofit food buying cooperatives, and establishments, organizations, programs, or group living arrangements described in paragraphs (5), (7), and (8) of section 3(k); and

removed “(ii) establishments described in paragraphs (3), (4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.

removed “(C) Interchange fees—Nothing in this paragraph permits the charging of fees relating to the redemption of supplemental nutrition assistance program benefits, in accordance with subsection (h)(13).”

removed “(4) Termination of manual vouchers

removed “(A) In general—Effective beginning on the date of enactment of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a household that receives supplemental nutrition assistance under this Act or allow retail food stores to accept manual vouchers as payment, unless the Secretary determines that the manual vouchers are necessary, such as in the event of an electronic benefit transfer system failure or a disaster situation.

removed “(B) Exemptions—The Secretary may exempt categories of retail food stores or individual retail food stores from subparagraph (A) based on criteria established by the Secretary.

removed “(5) Unique identification number required

removed “(A) In general—To enhance the anti-fraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide for and maintain unique terminal identification number information through the supplemental nutrition assistance program electronic benefit transfer transaction routing system.

removed “(B) Regulations

removed “(i) In general—Not earlier than 2 years after the date of enactment of this paragraph, the Secretary shall issue proposed regulations to carry out this paragraph.

removed “(ii) Commercial practices—In issuing regulations to carry out this paragraph, the Secretary shall consider existing commercial practices for other point-of-sale debit transactions.”

removed “(g) EBT service requirement—An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).”

removed Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(8)) is amended—

added “(2) Imposition of costs

added “(A) In general—Except as provided in subparagraph (B), the Secretary shall require participating retail food stores (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies, including related services.

added “(B) Exemptions—The Secretary may exempt from subparagraph (A)—

added “(i) farmers’ markets and other direct-to-consumer markets, military commissaries, nonprofit food buying cooperatives, and establishments, organizations, programs, or group living arrangements described in paragraphs (5), (7), and (8) of section 3(k); and

added “(ii) establishments described in paragraphs (3), (4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.

added “(C) Interchange fees—Nothing in this paragraph permits the charging of fees relating to the redemption of supplemental nutrition assistance program benefits, in accordance with subsection (h)(13).”

added “(4) Termination of manual vouchers

added “(A) In general—Effective beginning on the date of enactment of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a household that receives supplemental nutrition assistance under this Act or allow retail food stores to accept manual vouchers as payment, unless the Secretary determines that the manual vouchers are necessary, such as in the event of an electronic benefit transfer system failure or a disaster situation.

added “(B) Exemptions—The Secretary may exempt categories of retail food stores or individual retail food stores from subparagraph (A) based on criteria established by the Secretary.

added “(5) Unique identification number required

added “(A) In general—To enhance the anti-fraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide for and maintain unique terminal identification number information through the supplemental nutrition assistance program electronic benefit transfer transaction routing system.

added “(B) Regulations

added “(i) In general—Not earlier than 2 years after the date of enactment of this paragraph, the Secretary shall issue proposed regulations to carry out this paragraph.

added “(ii) Commercial practices—In issuing regulations to carry out this paragraph, the Secretary shall consider existing commercial practices for other point-of-sale debit transactions.”

removed “(A) Fees—A State”

added “(g) EBT service requirement—An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).”

removed “(B) Purposeful loss of cards

removed “(i) In general—Subject to terms and conditions established by the Secretary in accordance with clause (ii), if a household makes excessive requests for replacement of the electronic benefit transfer card of the household, the Secretary may require a State agency to decline to issue a replacement card to the household unless the household, upon request of the State agency, provides an explanation for the loss of the card.

removed “(ii) Requirements—The terms and conditions established by the Secretary shall provide that—

removed “(I) the household be given the opportunity to provide the requested explanation and meet the requirements under this paragraph promptly;

removed “(II) after an excessive number of lost cards, the head of the household shall be required to review program rights and responsibilities with State agency personnel authorized to make determinations under section 5(a); and

removed “(III) any action taken, including actions required under section 6(b)(2), other than the withholding of the electronic benefit transfer card until an explanation described in subclause (I) is provided, shall be consistent with the due process protections under section 6(b) or 11(e)(10), as appropriate.

removed “(C) Protecting vulnerable persons—In implementing this paragraph, a State agency shall act to protect homeless persons, persons with disabilities, victims of crimes, and other vulnerable persons who lose electronic benefit transfer cards but are not intentionally committing fraud.

removed “(D) Effect on eligibility—While a State may decline to issue an electronic benefits transfer card until a household satisfies the requirements under this paragraph, nothing in this paragraph shall be considered a denial of, or limitation on, the eligibility for benefits under section 5.”

added Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(8)) is amended—

removed “(14) Mobile technologies

removed “(A) In general—Subject to subparagraph (B), the Secretary shall approve retail food stores to redeem benefits through electronic means other than wired point of sale devices for electronic benefit transfer transactions, if the retail food stores—

removed “(i) establish recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores;

removed “(ii) bear the costs of obtaining, installing, and maintaining mobile technologies, including mechanisms needed to process EBT cards and transaction fees;

removed “(iii) demonstrate the foods purchased with benefits issued under this section through mobile technologies are purchased at a price not higher than the price of the same food purchased by other methods used by the retail food store, as determined by the Secretary;

removed “(iv) provide adequate documentation for each authorized transaction, as determined by the Secretary; and

removed “(v) meet other criteria as established by the Secretary.

removed “(B) Demonstration project on acceptance of benefits of mobile transactions

removed “(i) In general—Before authorizing implementation of subparagraph (A) in all States, the Secretary shall pilot the use of mobile technologies determined by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores to accept benefits from recipients of supplemental nutrition assistance through mobile transactions.

removed “(ii) Demonstration projects—To be eligible to participate in a demonstration project under clause (i), a retail food store shall submit to the Secretary for approval a plan that includes—

removed “(I) a description of the technology;

removed “(II) the manner by which the retail food store will provide proof of the transaction to households;

removed “(III) the provision of data to the Secretary, consistent with requirements established by the Secretary, in a manner that allows the Secretary to evaluate the impact of the demonstration on participant access, ease of use, and program integrity; and

removed “(IV) such other criteria as the Secretary may require.

removed “(iii) Date of completion—The demonstration projects under this subparagraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.

removed “(C) Report to Congress—The Secretary shall—

removed “(i) by not later than January 1, 2016, authorize implementation of subparagraph (A) in all States, unless the Secretary makes a finding, based on the data provided under subparagraph (B), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and

removed “(ii) if the determination made in clause (i) is not to implement subparagraph (A) in all States, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the basis of the finding.”

removed “(k) Option To accept program benefits through on-Line transactions

removed “(1) In general—Subject to paragraph (4), the Secretary shall approve retail food stores to accept benefits from recipients of supplemental nutrition assistance through on-line transactions.

removed “(2) Requirements to accept benefits—A retail food store seeking to accept benefits from recipients of supplemental nutrition assistance through on-line transactions shall—

removed “(A) establish recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores;

removed “(B) ensure benefits are not used to pay delivery, ordering, convenience, or other fees or charges;

removed “(C) clearly notify participating households at the time a food order is placed—

removed “(i) of any delivery, ordering, convenience, or other fee or charge associated with the food purchase; and

removed “(ii) that any such fee cannot be paid with benefits provided under this Act;

removed “(D) ensure the security of on-line transactions by using the most effective technology available that the Secretary considers appropriate and cost-effective and that is comparable to the security of transactions at retail food stores; and

removed “(E) meet other criteria as established by the Secretary.

removed “(3) State agency action—Each State agency shall ensure that recipients of supplemental nutrition assistance can use benefits on-line as described in this subsection as appropriate.

removed “(4) Demonstration project on acceptance of benefits through on-line transactions

removed “(A) In general—Before the Secretary authorizes implementation of paragraph (1) in all States, the Secretary shall carry out a number of demonstration projects as determined by the Secretary to test the feasibility of allowing retail food stores to accept benefits through on-line transactions.

removed “(B) Demonstration projects—To be eligible to participate in a demonstration project under subparagraph (A), a retail food store shall submit to the Secretary for approval a plan that includes—

removed “(i) a method of ensuring that benefits may be used to purchase only eligible items under this Act;

removed “(ii) a description of the method of educating participant households about the availability and operation of on-line purchasing;

removed “(iii) adequate testing of the on-line purchasing option prior to implementation;

removed “(iv) the provision of data as requested by the Secretary for purposes of analyzing the impact of the project on participant access, ease of use, and program integrity;

removed “(v) reports on progress, challenges, and results, as determined by the Secretary; and

removed “(vi) such other criteria, including security criteria, as established by the Secretary.

removed “(C) Date of completion—The demonstration projects under this paragraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.

removed “(5) Report to Congress—The Secretary shall—

removed “(A) by not later than January 1, 2016, authorize implementation of paragraph (1) in all States, unless the Secretary makes a finding, based on the data provided under paragraph (4), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and

removed “(B) if the determination made in subparagraph (A) is not to implement in all States, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the basis of the finding.”

added “(A) Fees—A State”

added “(B) Purposeful loss of cards

added “(i) In general—Subject to terms and conditions established by the Secretary in accordance with clause (ii), if a household makes excessive requests for replacement of the electronic benefit transfer card of the household, the Secretary may require a State agency to decline to issue a replacement card to the household unless the household, upon request of the State agency, provides an explanation for the loss of the card.

added “(ii) Requirements—The terms and conditions established by the Secretary shall provide that—

added “(I) the household be given the opportunity to provide the requested explanation and meet the requirements under this paragraph promptly;

added “(II) after an excessive number of lost cards, the head of the household shall be required to review program rights and responsibilities with State agency personnel authorized to make determinations under section 5(a); and

added “(III) any action taken, including actions required under section 6(b)(2), other than the withholding of the electronic benefit transfer card until an explanation described in subclause (I) is provided, shall be consistent with the due process protections under section 6(b) or 11(e)(10), as appropriate.

added “(C) Protecting vulnerable persons—In implementing this paragraph, a State agency shall act to protect homeless persons, persons with disabilities, victims of crimes, and other vulnerable persons who lose electronic benefit transfer cards but are not intentionally committing fraud.

added “(D) Effect on eligibility—While a State may decline to issue an electronic benefits transfer card until a household satisfies the requirements under this paragraph, nothing in this paragraph shall be considered a denial of, or limitation on, the eligibility for benefits under section 5.”

added “(14) Mobile technologies

added “(A) In general—Subject to subparagraph (B), the Secretary shall approve retail food stores to redeem benefits through electronic means other than wired point of sale devices for electronic benefit transfer transactions, if the retail food stores—

added “(i) establish recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores;

added “(ii) bear the costs of obtaining, installing, and maintaining mobile technologies, including mechanisms needed to process EBT cards and transaction fees;

added “(iii) demonstrate the foods purchased with benefits issued under this section through mobile technologies are purchased at a price not higher than the price of the same food purchased by other methods used by the retail food store, as determined by the Secretary;

added “(iv) provide adequate documentation for each authorized transaction, as determined by the Secretary; and

added “(v) meet other criteria as established by the Secretary.

added “(B) Demonstration project on acceptance of benefits of mobile transactions

added “(i) In general—Before authorizing implementation of subparagraph (A) in all States, the Secretary shall pilot the use of mobile technologies determined by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores to accept benefits from recipients of supplemental nutrition assistance through mobile transactions.

added “(ii) Demonstration projects—To be eligible to participate in a demonstration project under clause (i), a retail food store shall submit to the Secretary for approval a plan that includes—

added “(I) a description of the technology;

added “(II) the manner by which the retail food store will provide proof of the transaction to households;

added “(III) the provision of data to the Secretary, consistent with requirements established by the Secretary, in a manner that allows the Secretary to evaluate the impact of the demonstration on participant access, ease of use, and program integrity; and

added “(IV) such other criteria as the Secretary may require.

added “(iii) Date of completion—The demonstration projects under this subparagraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.

added “(C) Report to Congress—The Secretary shall—

added “(i) by not later than January 1, 2016, authorize implementation of subparagraph (A) in all States, unless the Secretary makes a finding, based on the data provided under subparagraph (B), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and

added “(ii) if the determination made in clause (i) is not to implement subparagraph (A) in all States, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the basis of the finding.”

added “(k) Option To accept program benefits through on-Line transactions

added “(1) In general—Subject to paragraph (4), the Secretary shall approve retail food stores to accept benefits from recipients of supplemental nutrition assistance through on-line transactions.

added “(2) Requirements to accept benefits—A retail food store seeking to accept benefits from recipients of supplemental nutrition assistance through on-line transactions shall—

added “(A) establish recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores;

added “(B) ensure benefits are not used to pay delivery, ordering, convenience, or other fees or charges;

added “(C) clearly notify participating households at the time a food order is placed—

added “(i) of any delivery, ordering, convenience, or other fee or charge associated with the food purchase; and

added “(ii) that any such fee cannot be paid with benefits provided under this Act;

added “(D) ensure the security of on-line transactions by using the most effective technology available that the Secretary considers appropriate and cost-effective and that is comparable to the security of transactions at retail food stores; and

added “(E) meet other criteria as established by the Secretary.

added “(3) State agency action—Each State agency shall ensure that recipients of supplemental nutrition assistance can use benefits on-line as described in this subsection as appropriate.

added “(4) Demonstration project on acceptance of benefits through on-line transactions

added “(A) In general—Before the Secretary authorizes implementation of paragraph (1) in all States, the Secretary shall carry out a number of demonstration projects as determined by the Secretary to test the feasibility of allowing retail food stores to accept benefits through on-line transactions.

added “(B) Demonstration projects—To be eligible to participate in a demonstration project under subparagraph (A), a retail food store shall submit to the Secretary for approval a plan that includes—

added “(i) a method of ensuring that benefits may be used to purchase only eligible items under this Act;

added “(ii) a description of the method of educating participant households about the availability and operation of on-line purchasing;

added “(iii) adequate testing of the on-line purchasing option prior to implementation;

added “(iv) the provision of data as requested by the Secretary for purposes of analyzing the impact of the project on participant access, ease of use, and program integrity;

added “(v) reports on progress, challenges, and results, as determined by the Secretary; and

added “(vi) such other criteria, including security criteria, as established by the Secretary.

added “(C) Date of completion—The demonstration projects under this paragraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.

added “(5) Report to Congress—The Secretary shall—

added “(A) by not later than January 1, 2016, authorize implementation of paragraph (1) in all States, unless the Secretary makes a finding, based on the data provided under paragraph (4), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and

added “(B) if the determination made in subparagraph (A) is not to implement in all States, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the basis of the finding.”

removed Subsection (o)(4) of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) (as redesignated by section 4018(a)(4)) is amended by inserting “, or agricultural producers who market agricultural products directly to consumers” after “such food”.

added Subsection (o)(4) of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) (as redesignated by section 4018(a)(4)) is amended by inserting “, or agricultural producers who market agricultural products directly to consumers” after “such food”.

removed “(24) if the State elects to carry out a program to contract with private establishments to offer meals at concessional prices, as described in paragraphs 3, 4, and 9 of section 3(k)—

removed “(A) the plans of the State agency for operating the program, including—

removed “(i) documentation of a need that eligible homeless, elderly, and disabled clients are underserved in a particular geographic area;

removed “(ii) the manner by which the State agency will limit participation to only those private establishments that the State determines necessary to meet the need identified in clause (i); and

removed “(iii) any other conditions the Secretary may prescribe, such as the level of security necessary to ensure that only eligible recipients participate in the program; and

removed “(B) a report by the State agency to the Secretary annually, the schedule of which shall be established by the Secretary, that includes—

removed “(i) the number of households and individual recipients authorized to participate in the program, including any information on whether the individual recipient is elderly, disabled, or homeless; and

removed “(ii) an assessment of whether the program is meeting an established need, as documented under subparagraph (A)(i).”

removed “(h) Private establishments

removed “(1) In general—Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals at concessional prices as described in paragraphs 3, 4, and 9 of section 3(k) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the private establishment is required to meet a documented need in accordance with section 11(e)(24).

removed “(2) Existing contracts

removed “(A) In general—If, on the day before the date of enactment of this subsection, a State has entered into a contract with a private establishment described in paragraph (1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a documented need in accordance with section 11(e)(24), the Secretary shall allow the operation of the private establishment to continue without that determination of need for a period not to exceed 180 days from the date on which the Secretary establishes determination criteria, by regulation, under section 11(e)(24).

removed “(B) Justification—If the Secretary makes a determination to terminate a contract with a private establishment that is in effect on the date of enactment of this subsection, the Secretary shall provide justification to the State in which the private establishment is located for that termination.

removed “(3) Report to Congress—Not later than 90 days after September 30, 2013, and 90 days after the last day of each fiscal year thereafter, the Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the effectiveness of a program under this subsection using any information received from States under section 11(e)(24) as well as any other information the Secretary may have relating to the manner in which benefits are used.”

added “(24) if the State elects to carry out a program to contract with private establishments to offer meals at concessional prices, as described in paragraphs 3, 4, and 9 of section 3(k)—

added “(A) the plans of the State agency for operating the program, including—

added “(i) documentation of a need that eligible homeless, elderly, and disabled clients are underserved in a particular geographic area;

added “(ii) the manner by which the State agency will limit participation to only those private establishments that the State determines necessary to meet the need identified in clause (i); and

added “(iii) any other conditions the Secretary may prescribe, such as the level of security necessary to ensure that only eligible recipients participate in the program; and

added “(B) a report by the State agency to the Secretary annually, the schedule of which shall be established by the Secretary, that includes—

added “(i) the number of households and individual recipients authorized to participate in the program, including any information on whether the individual recipient is elderly, disabled, or homeless; and

added “(ii) an assessment of whether the program is meeting an established need, as documented under subparagraph (A)(i).”

added “(h) Private establishments

added “(1) In general—Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals at concessional prices as described in paragraphs 3, 4, and 9 of section 3(k) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the private establishment is required to meet a documented need in accordance with section 11(e)(24).

added “(2) Existing contracts

added “(A) In general—If, on the day before the date of enactment of this subsection, a State has entered into a contract with a private establishment described in paragraph (1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a documented need in accordance with section 11(e)(24), the Secretary shall allow the operation of the private establishment to continue without that determination of need for a period not to exceed 180 days from the date on which the Secretary establishes determination criteria, by regulation, under section 11(e)(24).

added “(B) Justification—If the Secretary makes a determination to terminate a contract with a private establishment that is in effect on the date of enactment of this subsection, the Secretary shall provide justification to the State in which the private establishment is located for that termination.

added “(3) Report to Congress—Not later than 90 days after September 30, 2013, and 90 days after the last day of each fiscal year thereafter, the Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the effectiveness of a program under this subsection using any information received from States under section 11(e)(24) as well as any other information the Secretary may have relating to the manner in which benefits are used.”

removed Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(d)) is amended by adding at the end the following:

removed “(5) Use of performance bonus payments—A State agency may use a performance bonus payment received under this subsection only to carry out the program established under this Act, including investments in—

removed “(A) technology;

removed “(B) improvements in administration and distribution; and

removed “(C) actions to prevent fraud, waste, and abuse.”

changed Section 16(h)(1)(A) 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) 2025(d)) is amended by striking “section 18(a)(1), $90,000,000” and all that follows through adding at the end of the subparagraph and inserting “section 18(a)(1)—following:

changed “(i) for each “(5) Use of fiscal years 2014 through 2017, $90,000,000; andperformance bonus payments—A State agency may use a performance bonus payment received under this subsection only to carry out the program established under this Act, including investments in—

changed “(ii) for fiscal year 2018 and each fiscal year thereafter, $80,000,000.”“(A) technology;

added “(B) improvements in administration and distribution; and

added “(C) actions to prevent fraud, waste, and abuse.”

changed Section 18(a)(1) 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) 2025(h)(1)(A)) is amended in the first sentence by striking “2012” “section 18(a)(1), $90,000,000” and all that follows through the end of the subparagraph and inserting “2018”.“section 18(a)(1)—

added “(i) for each of fiscal years 2014 through 2017, $90,000,000; and

added “(ii) for fiscal year 2018 and each fiscal year thereafter, $80,000,000.”

changed Section 25 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) 2027(a)(1)) is amended—amended in the first sentence by striking “2012” and inserting “2018”.

removed “(I) equipment necessary for the efficient operation of a project;”

removed “(2) Hunger-free communities goal—The term hunger-free communities goal means any of the 14 goals described in House Concurrent Resolution 302, 102nd Congress, agreed to October 5, 1992.”

removed “(C) efforts to reduce food insecurity in the community, including food distribution, improving access to services, or coordinating services and programs;”

removed “(4) collaborate with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.”

removed “(5) develop new resources and strategies to help reduce food insecurity in the community and prevent food insecurity in the future by—

removed “(A) developing creative food resources;

removed “(B) coordinating food services with park and recreation programs and other community-based outlets to reduce barriers to access; or

removed “(C) creating nutrition education programs for at- risk populations to enhance food-purchasing and food- preparation skills and to heighten awareness of the connection between diet and health.”

removed “(h) Reports to Congress—Not later than September 30, 2014, and each year thereafter, the Secretary shall submit to Congress a report that describes each grant made under this section, including—

removed “(1) a description of any activity funded;

removed “(2) the degree of success of each activity funded in achieving hunger-free community goals; and

removed “(3) the degree of success in improving the long-term capacity of a community to address food and agriculture problems related to hunger or access to healthy food.”

added Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended—

added “(I) equipment necessary for the efficient operation of a project;”

added “(2) Hunger-free communities goal—The term hunger-free communities goal means any of the 14 goals described in House Concurrent Resolution 302, 102nd Congress, agreed to October 5, 1992.”

removed “(2) Amounts—The Secretary shall use to carry out paragraph (1)—

removed “(A) for fiscal year 2013, $265,750,000; and

removed “(B) for each subsequent fiscal year, the dollar amount of commodities specified in subparagraph (A) adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2013, and June 30 of the immediately preceding fiscal year, and subsequently increased by—

removed “(i) for fiscal year 2014, $22,000,000;

removed “(ii) for fiscal year 2015, $18,000,000;

removed “(iii) for fiscal year 2016, $10,000,000; and

removed “(iv) for fiscal year 2017, $4,000,000.”

added “(C) efforts to reduce food insecurity in the community, including food distribution, improving access to services, or coordinating services and programs;”

added “(4) collaborate with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.”

added “(5) develop new resources and strategies to help reduce food insecurity in the community and prevent food insecurity in the future by—

added “(A) developing creative food resources;

added “(B) coordinating food services with park and recreation programs and other community-based outlets to reduce barriers to access; or

added “(C) creating nutrition education programs for at- risk populations to enhance food-purchasing and food- preparation skills and to heighten awareness of the connection between diet and health.”

added “(h) Reports to Congress—Not later than September 30, 2014, and each year thereafter, the Secretary shall submit to Congress a report that describes each grant made under this section, including—

added “(1) a description of any activity funded;

added “(2) the degree of success of each activity funded in achieving hunger-free community goals; and

added “(3) the degree of success in improving the long-term capacity of a community to address food and agriculture problems related to hunger or access to healthy food.”

removed “(3) Funds availability—For purposes of the funds described in this subsection, the Secretary shall—

removed “(A) make the funds available for 2 fiscal years; and

removed “(B) allow States to carry over unexpended balances to the next fiscal year pursuant to such terms and conditions as are determined by the Secretary.”

added “(2) Amounts—The Secretary shall use to carry out paragraph (1)—

added “(A) for fiscal year 2013, $265,750,000; and

added “(B) for each subsequent fiscal year, the dollar amount of commodities specified in subparagraph (A) adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2013, and June 30 of the immediately preceding fiscal year, and subsequently increased by—

added “(i) for fiscal year 2014, $22,000,000;

added “(ii) for fiscal year 2015, $18,000,000;

added “(iii) for fiscal year 2016, $10,000,000; and

added “(iv) for fiscal year 2017, $4,000,000.”

added “(3) Funds availability—For purposes of the funds described in this subsection, the Secretary shall—

added “(A) make the funds available for 2 fiscal years; and

added “(B) allow States to carry over unexpended balances to the next fiscal year pursuant to such terms and conditions as are determined by the Secretary.”

removed Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(b)) is amended by inserting “and physical activity” after “healthy food choices”.

changed The Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 2036a(b)) is amended by adding at the end the following:inserting “and physical activity” after “healthy food choices”.

removed “29. Retail food store and recipient trafficking

removed “(a) Purpose—The purpose of this section is to provide the Department of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retail food store program integrity.

removed “(b) Use of funds

removed “(1) In general—Additional funds are provided under this section to supplement the retail food store and recipient integrity activities of the Department.

removed “(2) Information technologies—The Secretary shall use an appropriate amount of the funds provided under this section to employ information technologies known as data mining and data warehousing and other available information technologies to administer the supplemental nutrition assistance program and enforce regulations promulgated under section 4(c).

removed “(c) Funding

removed “(1) Authorization of appropriations—There is authorized to be appropriated to carry out this section $12,000,000 for each of fiscal years 2014 through 2018.

removed “(2) Mandatory funding

removed “(A) In general—Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $5,000,000 for fiscal year 2014, to remain available until expended.

removed “(B) Receipt and acceptance—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under subparagraph (A), without further appropriation.

removed “(C) Maintenance of funding—The funding provided under subparagraph (A) shall supplement (and not supplant) other Federal funding for programs carried out under this Act.”

added The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

added “29. Retail food store and recipient trafficking

added “(a) Purpose—The purpose of this section is to provide the Department of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retail food store program integrity.

added “(b) Use of funds

added “(1) In general—Additional funds are provided under this section to supplement the retail food store and recipient integrity activities of the Department.

added “(2) Information technologies—The Secretary shall use an appropriate amount of the funds provided under this section to employ information technologies known as data mining and data warehousing and other available information technologies to administer the supplemental nutrition assistance program and enforce regulations promulgated under section 4(c).

added “(c) Funding

added “(1) Authorization of appropriations—There is authorized to be appropriated to carry out this section $12,000,000 for each of fiscal years 2014 through 2018.

added “(2) Mandatory funding

added “(A) In general—Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $5,000,000 for fiscal year 2014, to remain available until expended.

added “(B) Receipt and acceptance—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under subparagraph (A), without further appropriation.

added “(C) Maintenance of funding—The funding provided under subparagraph (A) shall supplement (and not supplant) other Federal funding for programs carried out under this Act.”

removed “(t) “Supplemental nutrition assistance program” means the program operated pursuant to this Act.”

Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) is amended—

changed “(3) Rural area—The term “rural area” means any area described in section 3002 of the Consolidated Farm and Rural Development Act.”Act.

added “(4) Ultra-high speed service—The term ultra-high speed service means broadband service operating at a 1 gigabit per second downstream transmission capacity.”

“(2) Priority

“(A) In general—In making grants, loans, or loan guarantees under paragraph (1), the Secretary shall—

“(i) establish not less than 2, and not more than 4, evaluation periods for each fiscal year to compare grant, loan, and loan guarantee applications and to prioritize grants, loans, and loan guarantees to all or part of rural communities that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e);

“(ii) give the highest priority to applicants that offer to provide broadband service to the greatest proportion of unserved rural households or rural households that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e), as—

“(I) certified by the affected community, city, county, or designee; or

“(II) demonstrated on—

“(aa) the broadband map of the affected State if the map contains address-level data; or

“(bb) the National Broadband Map if address-level data is unavailable; and

“(iii) provide equal consideration to all qualified applicants, including those that have not previously received grants, loans, or loan guarantees under paragraph (1).

“(B) Other—After giving priority to the applicants described in subparagraph (A), the Secretary shall then give priority to projects that serve rural communities—

“(i) with a population of less than 20,000 permanent residents;

“(ii) experiencing outmigration;

“(iii) with a high percentage of low-income residents; and

“(iv) that are isolated from other significant population centers.”

“(3) Grant amounts

“(A) Eligibility—To be eligible for a grant under this section, the project that is the subject of the grant shall be carried out in a rural area.

“(B) Maximum—Except as provided in subparagraph (D), the amount of any grant made under this section shall not exceed 50 percent of the development costs of the project for which the grant is provided.

“(C) Grant rate—The Secretary shall establish the grant rate for each project in accordance with regulations issued by the Secretary that shall provide for a graduated scale of grant rates that establish higher rates for projects in communities that have—

“(i) remote locations;

“(ii) low community populations;

“(iii) low income levels;

“(iv) developed the applications of the communities with the participation of combinations of stakeholders, including—

“(I) State, local, and tribal governments;

“(II) nonprofit institutions;

“(III) institutions of higher education;

“(IV) private entities; and

“(V) philanthropic organizations; and

“(v) targeted funding to provide the minimum acceptable level of broadband service established under subsection (e) in all or part of an unserved community that is below that minimum acceptable level of broadband service.

“(D) Secretarial authority to adjust—The Secretary may make grants of up to 75 percent of the development costs of the project for which the grant is provided to an eligible entity if the Secretary determines that the project serves a remote or low income area that does not have access to broadband service from any provider of broadband service (including the applicant).”

changed “(i) demonstrate the ability to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e);”ability—

added “(I) to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e); or

added “(II) to carry out a project under paragraph (4)(B)(ii);”

“(B) Adjustments

“(i) Increase—The Secretary may increase the household percentage requirement under subparagraph (A)(i) if—

“(I) more than 25 percent of the costs of the project are funded by grants made under this section; or

“(II) the proposed service territory includes 1 or more communities with a population in excess of 20,000.

“(ii) Reduction—The Secretary may reduce the household percentage requirement under subparagraph (A)(i)—

“(I) to not less than 15 percent, if the proposed service territory does not have a population in excess of 5,000 people; or

“(II) to not less than 18 percent, if the proposed service territory does not have a population in excess of 7,500 people.”

added “(ii) Exceptions—Clause (i) shall not apply if—

added “(I) the applicant is eligible for funding under another title of this Act; or

added “(II) the project is being carried out under paragraph (4)(B)(ii), unless an incumbent service provider is providing ultra-high speed service as of the date of an application for assistance submitted to the Secretary under this section.”

“(iii) Information—Information submitted under this subparagraph shall be—

“(I) certified by the affected community, city, county, or designee; and

“(II) demonstrated on—

“(aa) the broadband map of the affected State if the map contains address-level data; or

“(bb) the National Broadband Map if address-level data is unavailable.”

“(A) In general—Subject to paragraph (1) and subparagraph (B),”

changed “(B) Pilot programs—The Secretary may carry out shall establish pilot programs in conjunction with under which the Secretary may, at the discretion of the Secretary, provide grants, loans, or loan guarantees under this section to eligible entities, including interested entities described in subparagraph (A) (which may be in partnership with other entities, as determined appropriate by the Secretary) to address areas that are unserved or have service levels below the minimum acceptable level of broadband service established under subsection (e).”(A)—

added “(i) to address areas that are unserved or have service levels below the minimum acceptable level of broadband service established under subsection (e); or

added “(ii) for the purposes of providing a proposed service territory with ultra-high speed service, subject to the conditions that—

added “(I) not more than 5 projects, and not more than 1 project in any State, shall be carried out under this clause during the period beginning on the date of enactment of this Act and ending on September 30, 2018;

added “(II) for each fiscal year, not more than 10 percent of the funds made available under subsection (l) shall be used to carry out this clause;

added “(III) for each fiscal year, not more than 20 percent of the funds made available under subclause (II) shall be used for any 1 project; and

added “(IV) paragraph (2)(A)(i) shall apply to the project, unless—

added “(aa) the Secretary determines that no other project in the State is funded under this section; and

added “(bb) no application for any other project that could be funded under this section, other than under this clause, is pending in the State.”

“(8) Transparency and reporting—The Secretary—

“(A) shall require any entity receiving assistance under this section to submit quarterly, in a format specified by the Secretary, a report that describes—

“(i) the use by the entity of the assistance, including new equipment and capacity enhancements that support high-speed broadband access for educational institutions, health care providers, and public safety service providers (including the estimated number of end users who are currently using or forecasted to use the new or upgraded infrastructure); and

“(ii) the progress towards fulfilling the objectives for which the assistance was granted, including—

“(I) the number and location of residences and businesses that will receive new broadband service, existing network service improvements, and facility upgrades resulting from the Federal assistance;

“(II) the speed of broadband service;

“(III) the price of broadband service;

“(IV) any changes in broadband service adoption rates, including new subscribers generated from demand-side projects; and

“(V) any other metrics the Secretary determines to be appropriate;

“(B) shall maintain a fully searchable database, accessible on the Internet at no cost to the public, that contains, at a minimum—

“(i) a list of each entity that has applied for assistance under this section;

“(ii) a description of each application, including the status of each application;

“(iii) for each entity receiving assistance under this section—

“(I) the name of the entity;

“(II) the type of assistance being received;

“(III) the purpose for which the entity is receiving the assistance; and

“(IV) each quarterly report submitted under subparagraph (A); and

“(iv) such other information as is sufficient to allow the public to understand and monitor assistance provided under this section;

“(C) shall, in addition to other authority under applicable law, establish written procedures for all broadband programs administered by the Secretary that, to the maximum extent practicable—

“(i) recover funds from loan defaults;

“(ii)

“(I) deobligate awards to grantees that demonstrate an insufficient level of performance (including failure to meet build-out requirements, service quality issues, or other metrics determined by the Secretary) or wasteful or fraudulent spending; and

“(II) award those funds, on a competitive basis, to new or existing applicants consistent with this section; and

“(iii) consolidate and minimize overlap among the programs;

“(D) with respect to an application for assistance under this section, shall—

“(i) promptly post on the website of the Rural Utility Service—

“(I) an announcement that identifies—

“(aa) each applicant;

“(bb) the amount and type of support requested by each applicant; and

“(II) a list of the census block groups or proposed service territory, in a manner specified by the Secretary, that the applicant proposes to service;

“(ii) provide not less than 15 days for broadband service providers to voluntarily submit information about the broadband services that the providers offer in the groups or tracts listed under clause (i)(II) so that the Secretary may assess whether the applications submitted meet the eligibility requirements under this section; and

“(iii) if no broadband service provider submits information under clause (ii), consider the number of providers in the group or tract to be established by reference to—

“(I) the most current National Broadband Map of the National Telecommunications and Information Administration; or

“(II) any other data regarding the availability of broadband service that the Secretary may collect or obtain through reasonable efforts; and

“(E) may establish additional reporting and information requirements for any recipient of any assistance under this section so as to ensure compliance with this section.”

“(1) In general—Subject to paragraph (2), for purposes of this section, the minimum acceptable level of broadband service for a rural area shall be at least—

“(A) a 4-Mbps downstream transmission capacity; and

“(B) a 1-Mbps upstream transmission capacity.

“(2) Adjustments

“(A) In general—At least once every 2 years, the Secretary shall review, and may adjust, the minimum acceptable level of broadband service established under paragraph (1) to ensure that high quality, cost-effective broadband service is provided to rural areas over time.

“(B) Considerations—In making an adjustment to the minimum acceptable level of broadband service under subparagraph (A), the Secretary may consider establishing different transmission rates for fixed broadband service and mobile broadband service.”

“(2) Terms—In determining the term and conditions of a loan or loan guarantee, the Secretary may—

“(A) consider whether the recipient would be serving an area that is unserved; and

“(B) if the Secretary makes a determination in the affirmative under subparagraph (A), establish a limited initial deferral period or comparable terms necessary to achieve the financial feasibility and long-term sustainability of the project.”

“(7) the overall progress towards fulfilling the goal of improving the quality of rural life by expanding rural broadband access, as demonstrated by metrics, including—

“(A) the number of residences and businesses receiving new broadband services;

“(B) network improvements, including facility upgrades and equipment purchases;

“(C) average broadband speeds and prices on a local and statewide basis;

“(D) any changes in broadband adoption rates; and

“(E) any specific activities that increased high speed broadband access for educational institutions, health care providers. and public safety service providers.”

“(k) Broadband buildout data

“(1) In general—As a condition of receiving a grant, loan, or loan guarantee under this section, a recipient of assistance shall provide to the Secretary address-level broadband buildout data that indicates the location of new broadband service that is being provided or upgraded within the service territory supported by the grant, loan, or loan guarantee—

“(A) for purposes of inclusion in the semiannual updates to the National Broadband Map that is managed by the National Telecommunications and Information Administration (referred to in this subsection as the “Administration”); and

“(B) not later than 30 days after the earlier of—

“(i) the date of completion of any project milestone established by the Secretary; or

“(ii) the date of completion of the project.

“(2) Address-level data—Effective beginning on the date the Administration receives data described in paragraph (1), the Administration shall use only address-level broadband buildout data for the National Broadband Map.

“(3) Corrections

“(A) In general—The Secretary shall submit to the Administration any correction to the National Broadband Map that is based on the actual level of broadband coverage within the rural area, including any requests for a correction from an elected or economic development official.

“(B) Incorporation—Not later than 30 days after the date on which the Administration receives a correction submitted under subparagraph (A), the Administration shall incorporate the correction into the National Broadband Map.

“(C) Use—If the Secretary has submitted a correction to the Administration under subparagraph (A), but the National Broadband Map has not been updated to reflect the correct by the date on which the Secretary is making a grant or loan award decision under this section, the Secretary may use the correction submitted under that subparagraph for purposes of make the grant or loan award decision.”

“(iii) set aside at least 1 percent to be used for—

“(I) conducting oversight under this section; and

“(II) implementing accountability measures and related activities authorized under this section.”

Section 1419A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended—

“(d) Authorization of appropriations—There is authorized to be appropriated to carry out this section $10,000,000 for fiscal year 2013 and each fiscal year thereafter.”

“532. Definition of 1994 Institutions

“In this part, the term 1994 Institutions means any 1 of the following:

“(1) Aaniiih Nakoda College.

“(2) Bay Mills Community College.

“(3) Blackfeet Community College.

“(4) Cankdeska Cikana Community College.

“(5) Chief Dull Knife Memorial College.

“(6) College of Menominee Nation.

“(7) College of the Muscogee Nation.

changed “(8) D-Q D–Q University.

“(9) Dine College.

“(10) Fond du Lac Tribal and Community College.

“(11) Fort Berthold Community College.

“(12) Fort Peck Community College.

“(13) Haskell Indian Nations University.

“(14) Ilisagvik College.

“(15) Institute of American Indian and Alaska Native Culture and Arts Development.

“(16) Keweenaw Bay Ojibwa Community College.

“(17) Lac Courte Oreilles Ojibwa Community College.

“(18) Leech Lake Tribal College.

“(19) Little Big Horn College.

“(20) Little Priest Tribal College.

“(21) Navajo Technical College.

“(22) Nebraska Indian Community College.

“(23) Northwest Indian College.

“(24) Oglala Lakota College.

“(25) Saginaw Chippewa Tribal College.

“(26) Salish Kootenai College.

“(27) Sinte Gleska University.

“(28) Sisseton Wahpeton College.

“(29) Sitting Bull College.

“(30) Southwestern Indian Polytechnic Institute.

“(31) Stone Child College.

“(32) Tohono O’odham Community College.

“(33) Turtle Mountain Community College.

“(34) United Tribes Technical College.

“(35) White Earth Tribal and Community College.”

“(1) the Agricultural Research Service of the Department of Agriculture; or

“(2) at least 1—

“(A) other land-grant college or university (exclusive of another 1994 Institution);

“(B) non-land-grant college of agriculture (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); or

“(C) cooperating forestry school (as defined in that section).”

Section 9001 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101) is amended—

changed “(9) Forest product—The term forest product means a product made from materials derived from the practice of forestry or the management of growing timber , timber, including—

“(A) pulp, paper, paperboard, pellets, lumber, and wood products; and

“(B) any recycled products derived from forest materials.”

“(14) Renewable chemical—The term renewable chemical means a monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass.”

The Organic Foods Production Act of 1990 is amended by inserting after section 2120 (7 U.S.C. 6519) the following:

“2120A. Recordkeeping, investigations, and enforcement

“(a) Recordkeeping

“(1) In general—Except as otherwise provided in this title, all persons, including producers, handlers, and certifying agents, required to report information to the Secretary under this title shall maintain, and make available to the Secretary on the request of the Secretary, all contracts, agreements, receipts, and other records associated with the organic certification program established by the Secretary under this title.

“(2) Duration of recordkeeping requirement—A record covered by paragraph (1) shall be maintained—

“(A) by a person covered by this title, except for a certifying agent, for a period of 5 years beginning on the date of the creation of the record; and

“(B) by a certifying agent, for a period of 10 years beginning on the date of the creation of the record.

“(b) Confidentiality

“(1) In general—Subject to paragraph (2), and except as provided in section 2107(a)(9) and as otherwise directed by the Secretary or the Attorney General for enforcement purposes, no officer, employee, or agent of the United States shall make available to the public information, statistics, or documents obtained from or made available by any person under this title, other than in a manner that ensures that confidentiality is preserved regarding the identity of persons, including parties to a contract, and proprietary business information.

“(2) Violators and nature of actions—The Secretary may release the name of the violator and the nature of the actions triggering an order or revocation under subsection (e).

“(c) Investigation

“(1) In general—The Secretary may take such investigative actions as the Secretary considers to be necessary to carry out this title—

“(A) to verify the accuracy of any information reported or made available under this title; and

“(B) to determine, with regard to actions, practices, or information required under this title, whether a person covered by this title has committed, or will commit, a violation of any provision of this title, including an order or regulation promulgated by the Secretary.

changed “(2) Investigative powers—The Secretary may administer oaths and affirmations, subpoena witnesses, compel attendance of witnesses, take evidence, and require the production of any records required to be maintained under subsection (a) or section 2112(d) or 2116(c) that are relevant to the investigation .investigation.

“(d) Unlawful Act—It shall be unlawful and a violation of this title for any person covered by this title—

“(1) to fail or refuse to provide, or delay the timely provision of, accurate information required by the Secretary under this section;

“(2) to violate—

“(A) an order of the Secretary;

“(B) a revocation of the organic certification of a producer or handler; or

“(C) a revocation of the accreditation of a certifying agent; or

“(3) to sell, or attempt to sell, a product that is represented as being organically produced under this title (including an order or regulation promulgated under this title) if in fact the product has been produced or handled by an operation that is not yet a certified organic producer or handler under this title.

“(e) Enforcement

“(1) Order

“(A) In general—The Secretary may issue an order to stop the sale of an agricultural product that is labeled or otherwise represented as being organically produced in cases of suspected fraudulent or otherwise unlawful acts as described in subsection (d) that are willful, noncorrectable, or the subject of a combined noncompliance and adverse action until the product can be verified—

“(i) as meeting the national and State standards for organic production and handling as provided in sections 2105 through 2114;

“(ii) as having been produced or handled without the use of a prohibited substance listed under section 2118; and

“(iii) as being produced and handled by a certified organic operation.

“(B) Affirmative defense to stop sale order

“(i) In general—If a producer or handler has a valid organic certification from the Department of Agriculture, the burden shall shift to the Secretary to prove fraud or unlawful activity that is willful, noncorrectable, or the subject of a combined noncompliance and adverse action before a stop sale order under subparagraph (A) may be implemented.

“(ii) Information

“(I) In general—The producer or handler shall comply with any requests of the Secretary for documents and other information not later than 30 days after a request is made.

“(II) Noncompliance—If the producer or handler fails to comply within the period described in subclause (I), the Secretary may issue a stop sale order.

“(C) Appeal of stop sale order

“(i) In general—If the Secretary proves fraud or unlawful activity that is willful, noncorrectable, or the subject of a combined noncompliance and adverse action, the determination may be appealed through an expedited administrative appeal process.

“(ii) Deadline—The expedited appeal process shall be completed not later than 30 days after the date of the issuance of the stop sale order.

“(iii) Stay—Any stop sale order shall be stayed pending the 30 day-expedited appeal under this subparagraph.

“(2) Certification or accreditation—After notice and opportunity for an administrative appeal under section 2121, if a violation described in subparagraph (A)(ii) is determined to have occurred and is an unlawful act under subsection (d), the Secretary shall revoke the organic certification of the producer or handler, or the accreditation of the certifying agent.

“(3) Violation of order or revocation—A person who violates an order to stop the sale of a product as an organically produced product under paragraph (1), or a revocation of certification or accreditation under paragraph (2), shall be subject to 1 or more of the penalties provided under subsections (a) and (b) of section 2120.

“(f) Appeal

“(1) In general—An order under subsection (e)(1), or a revocation of certification or accreditation under subsection (e)(2)(B), shall be final and conclusive unless the affected person files an appeal of the order—

“(A) first, to the administrative appeals process established under section 2121(a); and

“(B) after a final decision of the Secretary, if the affected person so elects, to a United States district court as provided in section 2121(b) not later than 30 days after the date of the determination under subparagraph (A).

“(2) Standard—An order under subsection (e)(1)(A), or a revocation of certification or accreditation under subsection (e)(2), shall be set aside if the order, or the revocation of certification or accreditation, fails to comply with section 706 of title 5, United States Code.

“(g) Noncompliance

“(1) In general—If a person covered by this title fails to obey an order, or a revocation of certification or accreditation, described in subsection (f)(2) after the order or revocation has become final and conclusive or after the appropriate United States district court has entered a final judgment in favor of the Secretary, the United States may apply to the appropriate United States district court for enforcement of the order, or the revocation of certification or accreditation.

“(2) Enforcement—If the court determines that the order or revocation was lawfully made and duly served and that the person violated the order or revocation, the court shall enforce the order or revocation.

“(3) Civil penalty—If the court finds that the person violated the order or revocation, the person shall be subject to a civil penalty of not more than $10,000 for each offense.”

changed Section 522(b)(2) 516(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)(2)) 1516(b)(2)) is amended by striking subparagraph (E) and inserting adding at the end the following:

changed “(E) Approval“(C) Reviews, compliance, and program integrity—For each of the 2014 and subsequent reinsurance years, the Corporation may use the insurance fund established under subsection (c), but not to exceed $5,000,000 for each fiscal year, to pay the following:

changed “(i) In general—The Board may approve up to 50 percent of the projected total research and development costs to be paid in advance Costs to an applicant, in accordance with the procedures developed by the Board reimburse expenses incurred for the making review of the payments, if, after consideration policies, plans of the reviewer reports described in subparagraph (D) insurance, and such other information as the Board determines appropriate, related materials and to assist the Board determines that—Corporation in maintaining program integrity.

changed “(I) “(ii) In addition to other available funds, costs incurred by the concept, in good faith, will likely result in a viable and marketable policy consistent Risk Management Agency for compliance operations associated with section 508(h);activities authorized under this title.”

removed “(II) at the sole discretion of the Board, the concept, if developed into a policy and approved by the Board, would provide crop insurance coverage—

removed “(aa) in a significantly improved form or that addresses a unique need of agricultural producers;

removed “(bb) to a crop or region not traditionally served by the Federal crop insurance program; or

removed “(cc) in a form that addresses a recognized flaw or problem in the program;

removed “(III) the applicant agrees to provide such reports as the Corporation determines are necessary to monitor the development effort;

removed “(IV) the proposed budget and timetable are reasonable, as determined by the Board; and

removed “(V) the concept proposal meets any other requirements that the Board determines appropriate.

removed “(ii) Waiver—The Board may waive the 50-percent limitation and, upon request of the submitter after the submitter has begun research and development activities, the Board may approve an additional 25 percent advance payment to the submitter for research and development costs, if, at the sole discretion of the Board, the Board determines that—

removed “(I) the intended policy or plan of insurance developed by the submitter will provide coverage for a region or crop that is underserved by the Federal crop insurance program, including specialty crops;

removed “(II) the submitter is making satisfactory progress towards developing a viable and marketable policy or plan of insurance consistent with section 508(h); and

removed “(III) the submitter does not have sufficient financial resources to complete the development of the submission into a viable and marketable policy or plan of insurance consistent with section 508(h).”

changed Section 522(c) 522(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) 1522(b)(2)) is amended by adding at the end striking subparagraph (E) and inserting the following:

changed “(18) Whole farm diversified risk management insurance plan“(E) Approval

changed “(A) “(i) In general—The Corporation shall conduct activities or enter into contracts Board may approve up to carry out 50 percent of the projected total research and development costs to develop a whole farm risk management insurance plan, be paid in advance to an applicant, in accordance with a liability limitation of $1,500,000, that allows a diversified crop or livestock producer the option to qualify procedures developed by the Board for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or making of the expected gross farm revenue that can reasonably be expected payments, if, after consideration of the producer, reviewer reports described in subparagraph (D) and such other information as determined by the Corporation.Board determines appropriate, the Board determines that—

changed “(B) Eligible producers—The Corporation shall permit producers (including direct-to-consumer marketers, and producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to participate in “(I) the plan concept, in lieu of any other plan under this subtitle.good faith, will likely result in a viable and marketable policy consistent with section 508(h);

changed “(C) Diversification—The Corporation may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of “(II) at the risk management benefits sole discretion of crop and livestock diversification strategies for producers that grow multiple crops or that may have income from the production of livestock that uses Board, the concept, if developed into a crop grown on policy and approved by the farm.Board, would provide crop insurance coverage—

changed “(D) Market readiness—The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required “(aa) in order to remove the commodity from the field.a significantly improved form or that addresses a unique need of agricultural producers;

changed “(E) Report—Not later than 2 years after the date of enactment of this paragraph, the Corporation shall submit “(bb) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results and feasibility of crop or region not traditionally served by the research and development conducted under this paragraph, including an analysis of potential adverse market distortions.”Federal crop insurance program; or

added “(cc) in a form that addresses a recognized flaw or problem in the program;

added “(III) the applicant agrees to provide such reports as the Corporation determines are necessary to monitor the development effort;

added “(IV) the proposed budget and timetable are reasonable, as determined by the Board; and

added “(V) the concept proposal meets any other requirements that the Board determines appropriate.

added “(ii) Waiver—The Board may waive the 50-percent limitation and, upon request of the submitter after the submitter has begun research and development activities, the Board may approve an additional 25 percent advance payment to the submitter for research and development costs, if, at the sole discretion of the Board, the Board determines that—

added “(I) the intended policy or plan of insurance developed by the submitter will provide coverage for a region or crop that is underserved by the Federal crop insurance program, including specialty crops;

added “(II) the submitter is making satisfactory progress towards developing a viable and marketable policy or plan of insurance consistent with section 508(h); and

added “(III) the submitter does not have sufficient financial resources to complete the development of the submission into a viable and marketable policy or plan of insurance consistent with section 508(h).”

changed Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11018) is amended by adding at the end the following:

changed “(19) Study of food safety insurance“(18) Whole farm diversified risk management insurance plan

changed “(A) In general—The Corporation shall offer to conduct activities or enter into contracts to carry out research and development to develop a contract whole farm risk management insurance plan, with 1 or more qualified entities to conduct a study to determine whether offering policies liability limitation of $1,500,000, that provide coverage allows a diversified crop or livestock producer the option to qualify for specialty crops from food safety and contamination issues would benefit agricultural producers.an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected of the producer, as determined by the Corporation.

changed “(B) Subject—The study described in subparagraph (A) Eligible producers—The Corporation shall evaluate policies permit producers (including direct-to-consumer marketers, and plans of insurance coverage that provide protection for production or revenue impacted by food safety concerns including, at a minimum, government, retail, or national consumer group announcements of a health advisory, removal, or recall related producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to a contamination concern.participate in the plan in lieu of any other plan under this subtitle.

changed “(C) Report—Not later than 1 year after the date of enactment of this paragraph, the Diversification—The Corporation shall submit to the Committee on Agriculture may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of the House risk management benefits of Representatives and the Committee on Agriculture, Nutrition, crop and Forestry of the Senate a report livestock diversification strategies for producers that describes grow multiple crops or that may have income from the results production of livestock that uses a crop grown on the study conducted under subparagraph (A).”farm.

added “(D) Market readiness—The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the commodity from the field.

added “(E) Report—Not later than 2 years after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results and feasibility of the research and development conducted under this paragraph, including an analysis of potential adverse market distortions.”

changed Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11019) 11018) is amended by adding at the end the following:

changed “(20) “(19) Study on swine catastrophic disease programof food safety insurance

changed “(A) In general—The Corporation shall offer to enter into a contract with a 1 or more qualified person entities to conduct a study to determine the feasibility of insuring swine producers whether offering policies that provide coverage for a catastrophic event.specialty crops from food safety and contamination issues would benefit agricultural producers.

changed “(B) Report—Not later than 1 year after the date of the enactment of this paragraph, the Corporation Subject—The study described in subparagraph (A) shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, evaluate policies and Forestry plans of the Senate a report insurance coverage that describes the results provide protection for production or revenue impacted by food safety concerns including, at a minimum, government, retail, or national consumer group announcements of the study conducted under subparagraph (A).”a health advisory, removal, or recall related to a contamination concern.

added “(C) Report—Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).”

changed Section 522(c) of the Federal Crop Insurance Act (as amended by section 11020) 11019) is amended by adding at the end the following:

changed “(21) Margin coverage for catfish“(20) Study on swine catastrophic disease program

changed “(A) In general—The Corporation shall offer to enter into a contract with a qualified entity person to conduct research and development regarding a policy study to insure producers against reduction in the margin between the market value of catfish and selected costs incurred in determine the production feasibility of catfish.insuring swine producers for a catastrophic event.

changed “(B) Eligibility—Eligibility for Report—Not later than 1 year after the policy described in subparagraph (A) date of the enactment of this paragraph, the Corporation shall be limited submit to freshwater species the Committee on Agriculture of catfish that are propagated the House of Representatives and reared in controlled or selected environments.the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).”

removed “(C) Implementation—The Board shall review the policy described in subparagraph (B) under subsection 508(h) and approve the policy if the Board finds that the policy—

removed “(i) will likely result in a viable and marketable policy consistent with this subsection;

removed “(ii) would provide crop insurance coverage in a significantly improved form;

removed “(iii) adequately protects the interests of producers; and

removed “(iv) the proposed policy meets other requirements of this subtitle determined appropriate by the Board.”

changed Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11021) 11020) is amended by adding at the end the following:

changed “(22) Poultry business disruption insurance policy and catastrophic disease program“(21) Margin coverage for catfish

changed “(A) Definition of poultry—In this paragraph, the term poultry has In general—The Corporation shall offer to enter into a contract with a qualified entity to conduct research and development regarding a policy to insure producers against reduction in the meaning given margin between the term in section 2(a) market value of the Packers catfish and Stockyards Act, 1921 (7 U.S.C. 182(a)).selected costs incurred in the production of catfish.

changed “(B) Authority—The Corporation Eligibility—Eligibility for the policy described in subparagraph (A) shall offer be limited to enter into 1 freshwater species of catfish that are propagated and reared in controlled or more contracts with qualified entities to carry out—selected environments.

changed “(i) a study to determine “(C) Implementation—The Board shall review the feasibility of insuring commercial poultry production against business disruptions caused by integrator bankruptcy; andpolicy described in subparagraph (B) under subsection 508(h) and approve the policy if the Board finds that the policy—

changed “(ii) a study to determine the feasibility of insuring poultry producers for “(i) will likely result in a catastrophic event.viable and marketable policy consistent with this subsection;

changed “(C) Business disruption study—The study described “(ii) would provide crop insurance coverage in subparagraph (B)(i) shall—a significantly improved form;

changed “(i) evaluate “(iii) adequately protects the market place for business disruption insurance that is available to poultry producers;interests of producers; and

changed “(ii) assess “(iv) the feasibility of a proposed policy to allow producers to ensure against a portion meets other requirements of losses from loss under contract due to business disruption from integrator bankruptcy; andthis subtitle determined appropriate by the Board.”

removed “(iii) analyze the costs to the Federal Government of a Federal business disruption insurance program for poultry producers.

removed “(D) Reports—Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of—

removed “(i) the study carried out under subparagraph (B)(i); and

removed “(ii) the study carried out under subparagraph (B)(ii).”

changed Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11022) 11021) is amended by adding at the end the following:

changed “(23) Feasibility study to assist seafood harvesters“(22) Poultry business disruption insurance policy and catastrophic disease program

changed “(A) In general—The Corporation shall offer to enter into a contract with a qualified entity to conduct a feasibility study to determine Definition of poultry—In this paragraph, the best method term poultry has the meaning given the term in section 2(a) of insuring seafood harvesters, including such data collection and analysis as is necessary to conduct the study.Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).

changed “(B) Report—Not later than 1 year after the date of enactment of this subsection, the Authority—The Corporation shall submit offer to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the results of the study.”enter into 1 or more contracts with qualified entities to carry out—

added “(i) a study to determine the feasibility of insuring commercial poultry production against business disruptions caused by integrator bankruptcy; and

added “(ii) a study to determine the feasibility of insuring poultry producers for a catastrophic event.

added “(C) Business disruption study—The study described in subparagraph (B)(i) shall—

added “(i) evaluate the market place for business disruption insurance that is available to poultry producers;

added “(ii) assess the feasibility of a policy to allow producers to ensure against a portion of losses from loss under contract due to business disruption from integrator bankruptcy; and

added “(iii) analyze the costs to the Federal Government of a Federal business disruption insurance program for poultry producers.

added “(D) Reports—Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of—

added “(i) the study carried out under subparagraph (B)(i); and

added “(ii) the study carried out under subparagraph (B)(ii).”

changed Section 522(c) of the Federal Crop Insurance Act of 1938 (7 U.S.C. 1522(c)) (as amended by section 11023) 11022) is amended by adding at the end the following:

changed “(24) Biomass and sweet sorghum energy crop insurance policies“(23) Feasibility study to assist seafood harvesters

changed “(A) Authority—The In general—The Corporation shall offer to enter into 1 or more contracts a contract with a qualified entities entity to carry out research conduct a feasibility study to determine the best method of insuring seafood harvesters, including such data collection and development regarding—analysis as is necessary to conduct the study.

changed “(i) a policy “(B) Report—Not later than 1 year after the date of enactment of this subsection, the Corporation shall submit to insure biomass sorghum that is grown expressly for the purpose Committee on Agriculture of producing the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a feedstock for renewable biofuel, renewable electricity, or biobased products; andreport describing the results of the study.”

removed “(ii) a policy to insure sweet sorghum that is grown for a purpose described in clause (i).

removed “(B) Research and development—Research and development with respect to each of the policies described in subparagraph (A) shall evaluate the effectiveness of risk management tools for the production of biomass sorghum or sweet sorghum, including policies and plans of insurance that—

removed “(i) are based on market prices and yields;

removed “(ii) to the extent that insufficient data exist to develop a policy based on market prices and yields, are based on the use of weather indices, including, at a minimum, excessive or inadequate rainfall, to protect the interests of crop producers; and

removed “(iii) provide protection for production or revenue losses, or both.”

added Section 522(c) of the Federal Crop Insurance Act of 1938 (7 U.S.C. 1522(c)) (as amended by section 11023) is amended by adding at the end the following:

added “(24) Biomass and sweet sorghum energy crop insurance policies

added “(A) Authority—The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding—

added “(i) a policy to insure biomass sorghum that is grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or biobased products; and

added “(ii) a policy to insure sweet sorghum that is grown for a purpose described in clause (i).

added “(B) Research and development—Research and development with respect to each of the policies described in subparagraph (A) shall evaluate the effectiveness of risk management tools for the production of biomass sorghum or sweet sorghum, including policies and plans of insurance that—

added “(i) are based on market prices and yields;

added “(ii) to the extent that insufficient data exist to develop a policy based on market prices and yields, are based on the use of weather indices, including, at a minimum, excessive or inadequate rainfall, to protect the interests of crop producers; and

added “(iii) provide protection for production or revenue losses, or both.”

removed “(D) Organic crops

removed “(i) In general—As soon as possible, but not later than the 2015 reinsurance year, the Corporation shall offer producers of organic crops price elections for all organic crops produced in compliance with standards issued by the Department of Agriculture under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) that reflect the actual retail or wholesale prices, as appropriate, received by producers for organic crops, as determined by the Secretary using all relevant sources of information.

removed “(ii) Annual report—The Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on progress made in developing and improving Federal crop insurance for organic crops, including—

removed “(I) the numbers and varieties of organic crops insured;

removed “(II) the progress of implementing the price elections required under this subparagraph, including the rate at which additional price elections are adopted for organic crops;

removed “(III) the development of new insurance approaches relevant to organic producers; and

removed “(IV) any recommendations the Corporation considers appropriate to improve Federal crop insurance coverage for organic crops.”

added Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11024) is amended by adding at the end the following:

added “(25) Alfalfa crop insurance policy

added “(A) In general—The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding a policy to insure alfalfa.

added “(B) Report—Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).”

removed “(B) Consultation—Before conducting research and development or entering into a contract under subparagraph (A), the Corporation shall follow the consultation requirements described in section 508(h)(4)(E).”

added “(D) Organic crops

added “(i) In general—As soon as possible, but not later than the 2015 reinsurance year, the Corporation shall offer producers of organic crops price elections for all organic crops produced in compliance with standards issued by the Department of Agriculture under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) that reflect the actual retail or wholesale prices, as appropriate, received by producers for organic crops, as determined by the Secretary using all relevant sources of information.

added “(ii) Annual report—The Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on progress made in developing and improving Federal crop insurance for organic crops, including—

added “(I) the numbers and varieties of organic crops insured;

added “(II) the progress of implementing the price elections required under this subparagraph, including the rate at which additional price elections are adopted for organic crops;

added “(III) the development of new insurance approaches relevant to organic producers; and

added “(IV) any recommendations the Corporation considers appropriate to improve Federal crop insurance coverage for organic crops.”

removed Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)) is amended—

added “(B) Consultation—Before conducting research and development or entering into a contract under subparagraph (A), the Corporation shall follow the consultation requirements described in section 508(h)(4)(E).”

removed Section 523(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)(2)) is amended—

removed “(A) In general—Under”

removed “(B) Index-based weather insurance pilot program

removed “(i) In general—Notwithstanding subparagraph (A), the Corporation, at the sole discretion of the Corporation, may conduct a pilot program to provide financial assistance for producers of underserved crops and livestock (including specialty crops) to purchase an index-based weather insurance product from a private insurance company, subject to the requirements of this subparagraph.

removed “(ii) Payment of premium

removed “(I) In general—Subject to subclause (II) and clause (v), the Corporation may pay a portion of the premium for producers who purchase index-based weather insurance protection from a private insurance company for a crop and policy that is not reinsured under this subtitle, as determined by the Corporation.

removed “(II) Condition—The premium assistance under subclause (I) shall not exceed 60 percent of the estimated premium amount, based on expected losses, representative operating expenses, and representative profit margins, as determined by the Corporation.

removed “(iii) Eligible providers—Before providing premium assistance to producers to purchase index-based weather insurance from a private insurance company pursuant to this subparagraph, the Corporation shall verify that the company has adequate experience—

removed “(I) to develop and manage the index-based weather insurance products, including adequate resources, experience, and assets or sufficient reinsurance to meet the obligations of the company under this subparagraph; and

removed “(II) to support and deliver the index-based weather insurance products.

removed “(iv) Procedures—The Corporation shall develop and publish procedures to administer the pilot program under this subparagraph that—

removed “(I) require each applicable private insurance company to report claim and sales data, and any other data the Corporation determines to be appropriate, to allow the Corporation to evaluate product pricing and performance;

removed “(II) allow the private insurance companies exclusive rights over the private insurance offered under this subparagraph, including rating of policies, protection of intellectual property rights on the product or policy, and associated rating methodology, for the period during which the companies are eligible under clause (iii); and

removed “(III) contain such other requirements as the Corporation determines to be necessary to ensure that—

removed “(aa) the interests of producers are protected; and

removed “(bb) the program operates in an actuarially sound manner.

removed “(v) Funding—Of the funds of the Corporation, the Corporation shall use to carry out this subparagraph $10,000,000 for each of fiscal years 2014 through 2018, to remain available until expended.”

added Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)) is amended—

removed “(6) Farm financial benchmarking—The term farm financial benchmarking means—

removed “(A) the process of comparing the performance of an agricultural enterprise against the performance of other similar enterprises, through the use of comparable and reliable data, in order to identify business management strengths, weaknesses, and steps necessary to improve management performance and business profitability; and

removed “(B) benchmarking of the type conducted by farm management and producer associations consistent with the activities described in or funded pursuant to section 1672D of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925f).”

added Section 523(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)(2)) is amended—

removed “(3) Beginning farmer or rancher—The term beginning farmer or rancher means a farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 5 crop years, as determined by the Secretary.”

added “(A) In general—Under”

removed “(8) Premium for beginning farmers or ranchers—Notwithstanding any other provision of this subsection regarding payment of a portion of premiums, a beginning farmer or rancher shall receive premium assistance that is 10 percentage points greater than premium assistance that would otherwise be available under paragraphs (2) (except for subparagraph (A) of that paragraph), (5), (6), and (7) for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher.”

removed “(iii) if the producer is a beginning farmer or rancher who was previously involved in a farming or ranching operation, including involvement in the decisionmaking or physical involvement in the production of the crop or livestock on the farm, for any acreage obtained by the beginning farmer or rancher, a yield that is the higher of—

removed “(I) the actual production history of the previous producer of the crop or livestock on the acreage determined under subparagraph (A); or

removed “(II) a yield of the producer, as determined in clause (i).”

added “(B) Index-based weather insurance pilot program

added “(i) In general—Notwithstanding subparagraph (A), the Corporation, at the sole discretion of the Corporation, may conduct a pilot program to provide financial assistance for producers of underserved crops and livestock (including specialty crops) to purchase an index-based weather insurance product from a private insurance company, subject to the requirements of this subparagraph.

added “(ii) Payment of premium

added “(I) In general—Subject to subclause (II) and clause (v), the Corporation may pay a portion of the premium for producers who purchase index-based weather insurance protection from a private insurance company for a crop and policy that is not reinsured under this subtitle, as determined by the Corporation.

added “(II) Condition—The premium assistance under subclause (I) shall not exceed 60 percent of the estimated premium amount, based on expected losses, representative operating expenses, and representative profit margins, as determined by the Corporation.

added “(iii) Eligible providers—Before providing premium assistance to producers to purchase index-based weather insurance from a private insurance company pursuant to this subparagraph, the Corporation shall verify that the company has adequate experience—

added “(I) to develop and manage the index-based weather insurance products, including adequate resources, experience, and assets or sufficient reinsurance to meet the obligations of the company under this subparagraph; and

added “(II) to support and deliver the index-based weather insurance products.

added “(iv) Procedures—The Corporation shall develop and publish procedures to administer the pilot program under this subparagraph that—

added “(I) require each applicable private insurance company to report claim and sales data, and any other data the Corporation determines to be appropriate, to allow the Corporation to evaluate product pricing and performance;

added “(II) allow the private insurance companies exclusive rights over the private insurance offered under this subparagraph, including rating of policies, protection of intellectual property rights on the product or policy, and associated rating methodology, for the period during which the companies are eligible under clause (iii); and

added “(III) contain such other requirements as the Corporation determines to be necessary to ensure that—

added “(aa) the interests of producers are protected; and

added “(bb) the program operates in an actuarially sound manner.

added “(v) Funding—Of the funds of the Corporation, the Corporation shall use to carry out this subparagraph $10,000,000 for each of fiscal years 2014 through 2018, to remain available until expended.”

removed “(II) in the case of beginning farmers or ranchers, replace each excluded yield with a yield equal to 80 percent of the applicable transitional yield.”

added “(6) Farm financial benchmarking—The term farm financial benchmarking means—

added “(A) the process of comparing the performance of an agricultural enterprise against the performance of other similar enterprises, through the use of comparable and reliable data, in order to identify business management strengths, weaknesses, and steps necessary to improve management performance and business profitability; and

added “(B) benchmarking of the type conducted by farm management and producer associations consistent with the activities described in or funded pursuant to section 1672D of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925f).”

removed Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is amended by striking subsection (b) and inserting the following:

removed “(b) Agricultural management assistance, risk management education, and organic certification cost share assistance

removed “(1) Authority for provision of assistance—The Secretary shall provide assistance under this section as follows:

removed “(A) Provision of organic certification cost share assistance pursuant to section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523).

removed “(B) Activities to support risk management education and community outreach partnerships pursuant to section 522(d), including—

removed “(i) entering into futures or hedging;

removed “(ii) entering into agricultural trade options as a hedging transaction to reduce production, price, or revenue risk; or

removed “(iii) conducting any other activity relating to an activity described in clause (i) or (ii), including farm financial benchmarking, as determined by the Secretary.

removed “(C) Provision of agricultural management assistance grants to producers in States in which there has been traditionally, and continues to be, a low level of Federal crop insurance participation and availability, and producers underserved by the Federal crop insurance program, as determined by the Secretary, for the purposes of—

removed “(i) constructing or improving—

removed “(I) watershed management structures; or

removed “(II) irrigation structures;

removed “(ii) planting trees to form windbreaks or to improve water quality; and

removed “(iii) mitigating financial risk through production or marketing diversification or resource conservation practices, including—

removed “(I) soil erosion control;

removed “(II) integrated pest management;

removed “(III) organic farming; or

removed “(IV) to develop and implement a plan to create marketing opportunities for the producer, including through value-added processing.

removed “(2) Payment limitation—The total amount of payments made to a person (as defined in section 1001(a)(5) of the Food Security Act (7 U.S.C. 1308(a)(5))) (as in existence before the amendment made by section 1603(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1730)) under paragraph (1) for any year may not exceed $50,000.

removed “(3) Funding

removed “(A) In general—The Secretary shall carry out this subsection through the Commodity Credit Corporation.

removed “(B) Funding—For each of fiscal years 2014 through 2018, the Commodity Credit Corporation shall make available to carry out this subsection $23,000,000.

removed “(C) Distribution of funds—Of the amount made available to carry out this subsection for a fiscal year, the Commodity Credit Corporation shall use not less than—

removed “(i) 50 percent to carry out paragraph (1)(A);

removed “(ii) 26 percent to carry out paragraph (1)(B); and

removed “(iii) 24 percent to carry out paragraph (1)(C).”

changed “(i) “(3) Beginning farmer or rancher—The term beginning farmer or rancher means a portion of crop insurance premium subsidies under this subtitle in accordance farmer or rancher who has not actively operated and managed a farm or ranch with paragraph (3);a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 5 crop years, as determined by the Secretary.”

removed “(ii) benefits under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and

removed “(iii) payments described in section 1001(b) of the Food Security Act of 1985 (7 U.S.C. 1308(b)).”

removed “(3) Administration

removed “(A) In general—During the first 4 crop years of planting on native sod acreage by a producer described in paragraph (2)—

removed “(i) paragraph (2) shall apply to 65 percent of the applicable transitional yield; and

removed “(ii) the crop insurance premium subsidy provided for the producer under this subtitle shall be 50 percentage points less than the premium subsidy that would otherwise apply.

removed “(B) Yield substitution—During the period native sod acreage is covered by this subsection, a producer may not substitute yields for the native sod acreage.”

changed “(I) benefits under “(8) Premium for beginning farmers or ranchers—Notwithstanding any other provision of this section;subsection regarding payment of a portion of premiums, a beginning farmer or rancher shall receive premium assistance that is 10 percentage points greater than premium assistance that would otherwise be available under paragraphs (2) (except for subparagraph (A) of that paragraph), (5), (6), and (7) for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher.”

removed “(II) a portion of crop insurance premium subsidies under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) in accordance with subparagraph (C); and

removed “(III) payments described in section 1001(b) of the Food Security Act of 1985 (7 U.S.C. 1308(b)).”

added “(iii) if the producer is a beginning farmer or rancher who was previously involved in a farming or ranching operation, including involvement in the decisionmaking or physical involvement in the production of the crop or livestock on the farm, for any acreage obtained by the beginning farmer or rancher, a yield that is the higher of—

added “(I) the actual production history of the previous producer of the crop or livestock on the acreage determined under subparagraph (A); or

added “(II) a yield of the producer, as determined in clause (i).”

added “(II) in the case of beginning farmers or ranchers, replace each excluded yield with a yield equal to 80 percent of the applicable transitional yield.”

removed “(C) Administration

removed “(i) In general—During the first 4 crop years of planting on native sod acreage by a producer described in subparagraph (B)—

removed “(I) subparagraph (B) shall apply to 65 percent of the applicable transitional yield; and

removed “(II) the crop insurance premium subsidy provided for the producer under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) shall be 50 percentage points less than the premium subsidy that would otherwise apply.

removed “(ii) Yield substitution—During the period native sod acreage is covered by this paragraph, a producer may not substitute yields for the native sod acreage.”

changed Section 508(b) 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) 1508(e)) (as amended by section 11030(b)) is amended—amended by adding at the end the following:

added “(9) Limitation on premium subsidy based on average adjusted gross income

added “(A) Definition of average adjusted gross income—In this paragraph, the term average adjusted gross income has the meaning given the term in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a)).

added “(B) Limitation—Notwithstanding any other provision of this subtitle and beginning with the 2014 reinsurance year, in the case of any producer that is a person or legal entity that has an average adjusted gross income in excess of $750,000 based on the most recent data available from the Farm Service Agency as of the beginning of the reinsurance year, the total amount of premium subsidy provided with respect to additional coverage under subsection (c), section 508B, or section 508C issued on behalf of the producer for a reinsurance year shall be 15 percentage points less than the premium subsidy provided in accordance with this subsection that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the producer.

added “(C) Application

added “(i) Study—Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Government Accountability Office, shall carry out a study to determine the effects of the limitation described in subparagraph (B) on—

added “(I) the overall operations of the Federal crop insurance program;

added “(II) the number of producers participating in the Federal crop insurance program;

added “(III) the level of coverage purchased by participating producers;

added “(IV) the amount of premiums paid by participating producers and the Federal Government;

added “(V) any potential liability for participating producers, approved insurance providers, and the Federal Government;

added “(VI) different crops or growing regions;

added “(VII) program rating structures;

added “(VIII) creation of schemes or devices to evade the impact of the limitation; and

added “(IX) administrative and operating expenses paid to approved insurance providers and underwriting gains and loss for the Federal government and approved insurance providers.

added “(ii) Effectiveness—The limitation described in subparagraph (B) shall not take effect unless the Secretary determines, through the study described in clause (i), that the limitation would not—

added “(I) significantly increase the premium amount paid by producers with an average adjusted gross income of less than $750,000;

added “(II) result in a decline in the crop insurance coverage available to producers; and

added “(III) increase the total cost of the Federal crop insurance program.”

added Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is amended by striking subsection (b) and inserting the following:

added “(b) Agricultural management assistance, risk management education, and organic certification cost share assistance

added “(1) Authority for provision of assistance—The Secretary shall provide assistance under this section as follows:

added “(A) Provision of organic certification cost share assistance pursuant to section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523).

added “(B) Activities to support risk management education and community outreach partnerships pursuant to section 522(d), including—

added “(i) entering into futures or hedging;

added “(ii) entering into agricultural trade options as a hedging transaction to reduce production, price, or revenue risk; or

added “(iii) conducting any other activity relating to an activity described in clause (i) or (ii), including farm financial benchmarking, as determined by the Secretary.

added “(C) Provision of agricultural management assistance grants to producers in States in which there has been traditionally, and continues to be, a low level of Federal crop insurance participation and availability, and producers underserved by the Federal crop insurance program, as determined by the Secretary, for the purposes of—

added “(i) constructing or improving—

added “(I) watershed management structures; or

added “(II) irrigation structures;

added “(ii) planting trees to form windbreaks or to improve water quality; and

added “(iii) mitigating financial risk through production or marketing diversification or resource conservation practices, including—

added “(I) soil erosion control;

added “(II) integrated pest management;

added “(III) organic farming; or

added “(IV) to develop and implement a plan to create marketing opportunities for the producer, including through value-added processing.

added “(2) Payment limitation—The total amount of payments made to a person (as defined in section 1001(a)(5) of the Food Security Act (7 U.S.C. 1308(a)(5))) (as in existence before the amendment made by section 1603(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1730)) under paragraph (1) for any year may not exceed $50,000.

added “(3) Funding

added “(A) In general—The Secretary shall carry out this subsection through the Commodity Credit Corporation.

added “(B) Funding—For each of fiscal years 2014 through 2018, the Commodity Credit Corporation shall make available to carry out this subsection $23,000,000.

added “(C) Distribution of funds—Of the amount made available to carry out this subsection for a fiscal year, the Commodity Credit Corporation shall use not less than—

added “(i) 50 percent to carry out paragraph (1)(A);

added “(ii) 26 percent to carry out paragraph (1)(B); and

added “(iii) 24 percent to carry out paragraph (1)(C).”

added “(i) a portion of crop insurance premium subsidies under this subtitle in accordance with paragraph (3);

added “(ii) benefits under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and

added “(iii) payments described in section 1001(b) of the Food Security Act of 1985 (7 U.S.C. 1308(b)).”

added “(3) Administration

added “(A) In general—During the first 4 crop years of planting on native sod acreage by a producer described in paragraph (2)—

added “(i) paragraph (2) shall apply to 65 percent of the applicable transitional yield; and

added “(ii) the crop insurance premium subsidy provided for the producer under this subtitle shall be 50 percentage points less than the premium subsidy that would otherwise apply.

added “(B) Yield substitution—During the period native sod acreage is covered by this subsection, a producer may not substitute yields for the native sod acreage.”

added “(I) benefits under this section;

added “(II) a portion of crop insurance premium subsidies under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) in accordance with subparagraph (C); and

added “(III) payments described in section 1001(b) of the Food Security Act of 1985 (7 U.S.C. 1308(b)).”

added “(C) Administration

added “(i) In general—During the first 4 crop years of planting on native sod acreage by a producer described in subparagraph (B)—

added “(I) subparagraph (B) shall apply to 65 percent of the applicable transitional yield; and

added “(II) the crop insurance premium subsidy provided for the producer under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) shall be 50 percentage points less than the premium subsidy that would otherwise apply.

added “(ii) Yield substitution—During the period native sod acreage is covered by this paragraph, a producer may not substitute yields for the native sod acreage.”

removed Section 515(d) of the Federal Crop Insurance Act (7 U.S.C. 1515(d)) is amended by adding at the end the following:

removed “(6) GAO crop insurance fraud report—As soon as practicable after the date of enactment of this paragraph, the Comptroller General of the United States shall conduct, and submit to Congress a report describing the results of, a study regarding fraudulent claims filed, and benefits provided, under this subtitle.”

“(2) Attending or causing a minor to attend—It shall be unlawful for any person to—

“(A) knowingly attend an animal fighting venture; or

“(B) knowingly cause a minor to attend an animal fighting venture.”

“(5) the term minor means a person under the age of 18 years old.”

“(b) Attending an animal fighting venture—Whoever violates subsection (a)(2)(A) of section 26 of the Animal Welfare Act (7 U.S.C. 2156) shall be fined under this title, imprisoned for not more than 1 year, or both, for each violation.

changed “(c) Causing a minor to T o attend an animal fighting venture—Whoever violates subsection (a)(2)(B) of section 26 (7 U.S.C. 2156) of the Animal Welfare Act shall be fined under this title, imprisoned for not more than 3 years, or both, for each violation.”