Agriculture Improvement Act of 2018 (Public Law No. 115–334), Соединенные Штаты Америки

PUBLIC LAW 115–334—DEC. 20, 2018

AGRICULTURE IMPROVEMENT ACT OF 2018

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132 STAT. 4490 PUBLIC LAW 115–334—DEC. 20, 2018

Public Law 115–334 115th Congress

An Act To provide for the reform and continuation of agricultural and other programs

of the Department of Agriculture through fiscal year 2023, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Agriculture Improvement Act of 2018’’.

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents. Sec. 2. Definition of Secretary.

TITLE I—COMMODITIES

Subtitle A—Commodity Policy Sec. 1101. Definition of effective reference price. Sec. 1102. Base acres. Sec. 1103. Payment yields. Sec. 1104. Payment acres. Sec. 1105. Producer election. Sec. 1106. Price loss coverage. Sec. 1107. Agriculture risk coverage. Sec. 1108. Repeal of transition assistance for producers of upland cotton.

Subtitle B—Marketing Loans Sec. 1201. Extensions. Sec. 1202. Loan rates for nonrecourse marketing assistance loans. Sec. 1203. Economic adjustment assistance for textile mills. Sec. 1204. Special competitive provisions for extra long staple cotton. Sec. 1205. Availability of recourse loans.

Subtitle C—Sugar Sec. 1301. Sugar policy.

Subtitle D—Dairy Margin Coverage and Other Dairy Related Provisions Sec. 1401. Dairy margin coverage. Sec. 1402. Reauthorizations. Sec. 1403. Class I skim milk price. Sec. 1404. Dairy product donation.

Subtitle E—Supplemental Agricultural Disaster Assistance Sec. 1501. Supplemental agricultural disaster assistance.

Subtitle F—Noninsured Crop Assistance Sec. 1601. Noninsured crop assistance program.

Subtitle G—Administration Sec. 1701. Regulations. Sec. 1702. Suspension of permanent price support authority.

7 USC 9001 note.

Agriculture Improvement Act of 2018.

Dec. 20, 2018 [H.R. 2]

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132 STAT. 4491PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 1703. Payment limitations. Sec. 1704. Adjusted gross income limitations. Sec. 1705. Farm Service Agency accountability. Sec. 1706. Implementation. Sec. 1707. Exemption from certain reporting requirements for certain producers.

TITLE II—CONSERVATION

Subtitle A—Wetland Conservation Sec. 2101. Wetland conversion. Sec. 2102. Wetland conservation. Sec. 2103. Mitigation banking.

Subtitle B—Conservation Reserve Program Sec. 2201. Conservation reserve. Sec. 2202. Conservation reserve enhancement program. Sec. 2203. Farmable wetland program. Sec. 2204. Pilot programs. Sec. 2205. Duties of owners and operators. Sec. 2206. Duties of the Secretary. Sec. 2207. Payments. Sec. 2208. Contracts. Sec. 2209. Eligible land; State law requirements.

Subtitle C—Environmental Quality Incentives Program and Conservation Stewardship Program

Sec. 2301. Repeal of conservation programs. Sec. 2302. Purposes of environmental quality incentives program. Sec. 2303. Definitions under environmental quality incentives program. Sec. 2304. Establishment and administration of environmental quality incentives

program. Sec. 2305. Environmental quality incentives program plan. Sec. 2306. Limitation on payments under environmental quality incentives pro-

gram. Sec. 2307. Conservation innovation grants and payments. Sec. 2308. Conservation stewardship program. Sec. 2309. Grassland conservation initiative.

Subtitle D—Other Conservation Programs Sec. 2401. Watershed protection and flood prevention. Sec. 2402. Soil and water resources conservation. Sec. 2403. Emergency conservation program. Sec. 2404. Conservation of private grazing land. Sec. 2405. Grassroots source water protection program. Sec. 2406. Voluntary public access and habitat incentive program. Sec. 2407. Wildlife management. Sec. 2408. Feral swine eradication and control pilot program. Sec. 2409. Report on small wetlands. Sec. 2410. Sense of Congress relating to increased watershed-based collaboration.

Subtitle E—Funding and Administration Sec. 2501. Commodity Credit Corporation. Sec. 2502. Delivery of technical assistance. Sec. 2503. Administrative requirements for conservation programs. Sec. 2504. Temporary administration of conservation programs.

Subtitle F—Agricultural Conservation Easement Program Sec. 2601. Establishment and purposes. Sec. 2602. Definitions. Sec. 2603. Agricultural land easements. Sec. 2604. Wetland reserve easements. Sec. 2605. Administration.

Subtitle G—Regional Conservation Partnership Program Sec. 2701. Establishment and purposes. Sec. 2702. Definitions. Sec. 2703. Regional conservation partnerships. Sec. 2704. Assistance to producers. Sec. 2705. Funding. Sec. 2706. Administration.

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132 STAT. 4492 PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 2707. Critical conservation areas.

Subtitle H—Repeals and Technical Amendments

PART I—REPEALS Sec. 2811. Repeal of Conservation Corridor Demonstration Program. Sec. 2812. Repeal of cranberry acreage reserve program. Sec. 2813. Repeal of National Natural Resources Foundation. Sec. 2814. Repeal of flood risk reduction. Sec. 2815. Repeal of study of land use for expiring contracts and extension of au-

thority. Sec. 2816. Repeal of Integrated Farm Management Program Option. Sec. 2817. Repeal of clarification of definition of agricultural lands.

PART II—TECHNICAL AMENDMENTS Sec. 2821. Technical amendments. Sec. 2822. State technical committees.

TITLE III—TRADE

Subtitle A—Food for Peace Act Sec. 3101. Labeling requirements. Sec. 3102. Food aid quality assurance. Sec. 3103. Local sale and barter of commodities. Sec. 3104. Minimum levels of assistance. Sec. 3105. Food aid consultative group. Sec. 3106. Issuance of regulations. Sec. 3107. Oversight, monitoring, and evaluation. Sec. 3108. Assistance for stockpiling and rapid transportation, delivery, and dis-

tribution of shelf-stable prepackaged foods. Sec. 3109. Consideration of impact of provision of agricultural commodities and

other assistance on local farmers and economy. Sec. 3110. Allowance for distribution costs. Sec. 3111. Prepositioning of agricultural commodities. Sec. 3112. Annual report regarding food aid programs and activities. Sec. 3113. Deadline for agreements to finance sales or to provide other assistance. Sec. 3114. Minimum level of nonemergency food assistance. Sec. 3115. Termination date for micronutrient fortification programs. Sec. 3116. John Ogonowski and Doug Bereuter Farmer-to-Farmer program.

Subtitle B—Agricultural Trade Act of 1978 Sec. 3201. Agricultural trade promotion and facilitation.

Subtitle C—Other Agricultural Trade Laws Sec. 3301. Growing American Food Exports. Sec. 3302. Food for Progress Act of 1985. Sec. 3303. Bill Emerson Humanitarian Trust Act. Sec. 3304. Promotion of agricultural exports to emerging markets. Sec. 3305. Cochran fellowship program. Sec. 3306. Borlaug International Agricultural Science and Technology Fellowship

program. Sec. 3307. International Agricultural Education Fellowship program. Sec. 3308. International food security technical assistance. Sec. 3309. McGovern-Dole International Food for Education and Child Nutrition

program. Sec. 3310. Global Crop Diversity Trust. Sec. 3311. Local and regional food aid procurement projects. Sec. 3312. Foreign trade missions.

TITLE IV—NUTRITION

Subtitle A—Supplemental Nutrition Assistance Program Sec. 4001. Requirements for online acceptance of benefits. Sec. 4002. Re-evaluation of thrifty food plan. Sec. 4003. Food distribution program on Indian reservations. Sec. 4004. Simplified homeless housing costs. Sec. 4005. Employment and training for supplemental nutrition assistance pro-

gram. Sec. 4006. Improvements to electronic benefit transfer system. Sec. 4007. Review of supplemental nutrition assistance program operations. Sec. 4008. Retail incentives.

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132 STAT. 4493PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 4009. Required action on data match information. Sec. 4010. Incentivizing technology modernization. Sec. 4011. Interstate data matching to prevent multiple issuances. Sec. 4012. Requirement of live-production environments for certain pilot projects

relating to cost sharing for computerization. Sec. 4013. Quality control improvements. Sec. 4014. Evaluation of child support enforcement cooperation requirements. Sec. 4015. Longitudinal data for research. Sec. 4016. Authorization of appropriations. Sec. 4017. Assistance for community food projects. Sec. 4018. Emergency food assistance program. Sec. 4019. Nutrition education. Sec. 4020. Retail food store and recipient trafficking. Sec. 4021. Public-private partnerships. Sec. 4022. Technical corrections.

Subtitle B—Commodity Distribution Programs Sec. 4101. Commodity distribution program. Sec. 4102. Commodity supplemental food program. Sec. 4103. Distribution of surplus commodities to special nutrition projects. Sec. 4104. Food donation standards.

Subtitle C—Miscellaneous Sec. 4201. Seniors farmers’ market nutrition program. Sec. 4202. Purchase of fresh fruits and vegetables for distribution to schools and

service institutions. Sec. 4203. Service of traditional foods in public facilities. Sec. 4204. Healthy food financing initiative. Sec. 4205. The Gus Schumacher nutrition incentive program. Sec. 4206. Micro-grants for food security. Sec. 4207. Buy American requirements. Sec. 4208. Healthy fluid milk incentives projects.

TITLE V—CREDIT

Subtitle A—Farm Ownership Loans Sec. 5101. Modification of the 3-year experience eligibility requirement for farm

ownership loans. Sec. 5102. Conservation loan and loan guarantee program. Sec. 5103. Limitations on amount of farm ownership loans. Sec. 5104. Relending program to resolve ownership and succession on farmland.

Subtitle B—Operating Loans Sec. 5201. Limitations on amount of operating loans. Sec. 5202. Microloans. Sec. 5203. Cooperative lending pilot projects.

Subtitle C—Administrative Provisions Sec. 5301. Beginning farmer and rancher individual development accounts pilot

program. Sec. 5302. Loan authorization levels. Sec. 5303. Loan fund set-asides. Sec. 5304. Use of additional funds for direct operating microloans under certain

conditions. Sec. 5305. Equitable relief. Sec. 5306. Socially disadvantaged farmers and ranchers; qualified beginning farm-

ers and ranchers. Sec. 5307. Emergency loan eligibility.

Subtitle D—Miscellaneous Sec. 5401. Technical corrections to the Consolidated Farm and Rural Development

Act. Sec. 5402. State agricultural mediation programs. Sec. 5403. Compensation of bank directors. Sec. 5404. Sharing of privileged and confidential information. Sec. 5405. Facility headquarters. Sec. 5406. Removal and prohibition authority; industry-wide prohibition. Sec. 5407. Jurisdiction over institution-affiliated parties. Sec. 5408. Definition of institution-affiliated party. Sec. 5409. Prohibition on use of funds.

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132 STAT. 4494 PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 5410. Expansion of acreage exception to loan amount limitation. Sec. 5411. Repeal of obsolete provisions; technical corrections. Sec. 5412. Corporation as conservator or receiver; certain other powers. Sec. 5413. Reporting. Sec. 5414. Study on loan risk. Sec. 5415. GAO report on ability of the Farm Credit System to meet the agricul-

tural credit needs of Indian tribes and their members. Sec. 5416. GAO report on credit service to socially disadvantaged farmers and

ranchers.

TITLE VI—RURAL DEVELOPMENT

Subtitle A—Improving Health Outcomes in Rural America Sec. 6101. Combating substance use disorder in rural America; prioritizations. Sec. 6102. Distance learning and telemedicine. Sec. 6103. Refinancing of certain rural hospital debt.

Subtitle B—Connecting Rural Americans to High Speed Broadband Sec. 6201. Access to broadband telecommunications services in rural areas. Sec. 6202. Expansion of middle mile infrastructure into rural areas. Sec. 6203. Modifications to the Rural Gigabit Program. Sec. 6204. Community Connect Grant Program. Sec. 6205. Outdated broadband systems. Sec. 6206. Default and deobligation; deferral. Sec. 6207. Public notice, assessments, and reporting requirements. Sec. 6208. Environmental reviews. Sec. 6209. Use of loan proceeds to refinance loans for deployment of broadband

service. Sec. 6210. Smart utility authority for broadband. Sec. 6211. Refinancing of telephone loans. Sec. 6212. Federal broadband program coordination. Sec. 6213. Transition rule. Sec. 6214. Rural broadband integration working group.

Subtitle C—Miscellaneous Sec. 6301. Exclusion of certain populations from definition of rural area. Sec. 6302. Establishment of technical assistance program. Sec. 6303. Rural energy savings program. Sec. 6304. Northern Border Regional Commission reauthorization. Sec. 6305. Definition of rural area for purposes of the Housing Act of 1949. Sec. 6306. Council on Rural Community Innovation and Economic Development.

Subtitle D—Additional Amendments to the Consolidated Farm and Rural Development Act

Sec. 6401. Strategic economic and community development. Sec. 6402. Expanding access to credit for rural communities. Sec. 6403. Water, waste disposal, and wastewater facility grants. Sec. 6404. Rural water and wastewater technical assistance and training programs. Sec. 6405. Rural water and wastewater circuit rider program. Sec. 6406. Tribal college and university essential community facilities. Sec. 6407. Emergency and imminent community water assistance grant program. Sec. 6408. Water systems for rural and native villages in Alaska. Sec. 6409. Rural decentralized water systems. Sec. 6410. Solid waste management grants. Sec. 6411. Rural business development grants. Sec. 6412. Rural cooperative development grants. Sec. 6413. Locally or regionally produced agricultural food products. Sec. 6414. Appropriate technology transfer for rural areas program. Sec. 6415. Rural economic area partnership zones. Sec. 6416. Intemediary relending program. Sec. 6417. Access to information to verify income for participants in certain rural

housing programs. Sec. 6418. Providing for additional fees for guaranteed loans under the Consoli-

dated Farm and Rural Development Act. Sec. 6419. Rural Business-Cooperative Service programs technical assistance and

training. Sec. 6420. National Rural Development Partnership. Sec. 6421. Grants for NOAA weather radio transmitters. Sec. 6422. Rural microentrepreneur assistance program. Sec. 6423. Health care services. Sec. 6424. Rural innovation stronger economy grant program.

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132 STAT. 4495PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 6425. Delta Regional Authority. Sec. 6426. Rural business investment program. Sec. 6427. Rural business investment program.

Subtitle E—Additional Amendments to the Rural Electrification Act of 1936 Sec. 6501. Amendments to section 2 of the Rural Electrification Act of 1936. Sec. 6502. Loans for telephone service. Sec. 6503. Cushion of credit payments program. Sec. 6504. Extension of the rural economic development loan and grant program. Sec. 6505. Guarantees for bonds and notes issued for electrification or telephone

purposes. Sec. 6506. Expansion of 911 access. Sec. 6507. Cybersecurity and grid security improvements.

Subtitle F—Program Repeals Sec. 6601. Elimination of unfunded programs. Sec. 6602. Repeal of Rural Telephone Bank. Sec. 6603. Amendments to LOCAL TV Act.

Subtitle G—Technical Corrections Sec. 6701. Corrections relating to the Consolidated Farm and Rural Development

Act. Sec. 6702. Corrections relating to the Rural Electrification Act of 1936.

TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS

Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of 1977

Sec. 7101. Purposes of agricultural research, extension, and education. Sec. 7102. Matters related to certain school designations and declarations. Sec. 7103. National Agricultural Research, Extension, Education, and Economics

Advisory Board. Sec. 7104. Specialty crop committee. Sec. 7105. Renewable energy committee discontinued. Sec. 7106. Veterinary services grant program. Sec. 7107. Grants and fellowships for food and agriculture sciences education. Sec. 7108. Agricultural and food policy research centers. Sec. 7109. Education grants to Alaska Native serving institutions and Native Ha-

waiian serving institutions. Sec. 7110. Next generation agriculture technology challenge. Sec. 7111. Land-grant designation. Sec. 7112. Nutrition education program. Sec. 7113. Continuing animal health and disease research programs. Sec. 7114. Carryover of funds for extension at 1890 land-grant colleges, including

Tuskegee University. Sec. 7115. Extension and agricultural research at 1890 land-grant colleges, includ-

ing Tuskegee University. Sec. 7116. Reports on disbursement of funds for agricultural research and exten-

sion at 1862 and 1890 land-grant colleges, including Tuskegee Univer- sity.

Sec. 7117. Scholarships for students at 1890 institutions. Sec. 7118. Grants to upgrade agricultural and food sciences facilities at 1890 land-

grant colleges, including Tuskegee University. Sec. 7119. Grants to upgrade agriculture and food sciences facilities and equipment

at insular area land-grant institutions. Sec. 7120. New Beginning for Tribal Students. Sec. 7121. Hispanic-serving institutions. Sec. 7122. Binational agricultural research and development. Sec. 7123. Partnerships to build capacity in international agricultural research, ex-

tension, and teaching. Sec. 7124. Competitive grants for international agricultural science and education

programs. Sec. 7125. Limitation on indirect costs for agricultural research, education, and ex-

tension programs. Sec. 7126. Research equipment grants. Sec. 7127. University research. Sec. 7128. Extension service. Sec. 7129. Supplemental and alternative crops; hemp. Sec. 7130. New Era Rural Technology program. Sec. 7131. Capacity building grants for NLGCA Institutions. Sec. 7132. Agriculture advanced research and development authority pilot.

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132 STAT. 4496 PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 7133. Aquaculture assistance programs. Sec. 7134. Rangeland research programs. Sec. 7135. Special authorization for biosecurity planning and response. Sec. 7136. Distance education and resident instruction grants program for insular

area institutions of higher education.

Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 Sec. 7201. Best utilization of biological applications. Sec. 7202. Integrated management systems. Sec. 7203. Sustainable agriculture technology development and transfer program. Sec. 7204. National training program. Sec. 7205. National strategic germplasm and cultivar collection assessment and uti-

lization plan. Sec. 7206. National Genetics Resources Program. Sec. 7207. National Agricultural Weather Information System. Sec. 7208. Agricultural genome to phenome initiative. Sec. 7209. High-priority research and extension initiatives. Sec. 7210. Organic agriculture research and extension initiative. Sec. 7211. Farm business management. Sec. 7212. Urban, indoor, and other emerging agricultural production research,

education, and extension initiative. Sec. 7213. Centers of excellence at 1890 Institutions. Sec. 7214. Clarification of veteran eligibility for assistive technology program for

farmers with disabilities. Sec. 7215. National Rural Information Center Clearinghouse.

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998 Sec. 7301. National food safety training, education, extension, outreach, and tech-

nical assistance program. Sec. 7302. Integrated research, education, and extension competitive grants pro-

gram. Sec. 7303. Support for research regarding diseases of wheat, triticale, and barley

caused by Fusarium graminearum or by Tilletia indica. Sec. 7304. Grants for youth organizations. Sec. 7305. Specialty crop research initiative. Sec. 7306. Food Animal Residue Avoidance Database program. Sec. 7307. Office of Pest Management Policy. Sec. 7308. Forestry products advanced utilization research.

Subtitle D—Food, Conservation, and Energy Act of 2008

PART I—AGRICULTURAL SECURITY Sec. 7401. Agricultural biosecurity communication center. Sec. 7402. Assistance to build local capacity in agricultural biosecurity planning,

preparation, and response. Sec. 7403. Research and development of agricultural countermeasures. Sec. 7404. Agricultural biosecurity grant program.

PART II—MISCELLANEOUS Sec. 7411. Grazinglands research laboratory. Sec. 7412. Farm and Ranch Stress Assistance Network. Sec. 7413. Natural products research program. Sec. 7414. Sun grant program.

Subtitle E—Amendments to Other Laws Sec. 7501. Critical Agricultural Materials Act. Sec. 7502. Equity in Educational Land-Grant Status Act of 1994. Sec. 7503. Research Facilities Act. Sec. 7504. Agriculture and Food Research Initiative. Sec. 7505. Extension design and demonstration initiative. Sec. 7506. Repeal of review of agricultural research service. Sec. 7507. Biomass research and development. Sec. 7508. Reinstatement of matching requirement for Federal funds used in exten-

sion work at the University of the District of Columbia. Sec. 7509. Renewable Resources Extension Act of 1978. Sec. 7510. National Aquaculture Act of 1980. Sec. 7511. Federal agriculture research facilities.

Subtitle F—Other Matters Sec. 7601. Enhanced use lease authority program.

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132 STAT. 4497PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 7602. Transfer of administrative jurisdiction over portion of Henry A. Wallace Beltsville Agricultural Research Center, Beltsville, Maryland.

Sec. 7603. Foundation for food and agriculture research. Sec. 7604. Assistance for forestry research under the McIntire-Stennis Cooperative

Forestry Act. Sec. 7605. Legitimacy of industrial hemp research. Sec. 7606. Collection of data relating to barley area planted and harvested. Sec. 7607. Collection of data relating to the size and location of dairy farms. Sec. 7608. Agriculture innovation center demonstration program. Sec. 7609. Smith-Lever community extension program. Sec. 7610. Mechanization and automation for specialty crops. Sec. 7611. Experienced services program. Sec. 7612. Simplified plan of work. Sec. 7613. Review of land-grant time and effort reporting requirements. Sec. 7614. Matching funds requirement.

TITLE VIII—FORESTRY

Subtitle A—Cooperative Forestry Assistance Act of 1978 Sec. 8101. Support for State assessments and strategies for forest resources. Sec. 8102. State and private forest landscape-scale restoration program.

Subtitle B—Forest and Rangeland Renewable Resources Research Act of 1978 Sec. 8201. Repeal of recycling research. Sec. 8202. Repeal of forestry student grant program.

Subtitle C—Global Climate Change Prevention Act of 1990 Sec. 8301. Repeals relating to biomass.

Subtitle D—Healthy Forests Restoration Act of 2003 Sec. 8401. Promoting cross-boundary wildfire mitigation. Sec. 8402. Authorization of appropriations for hazardous fuel reduction on Federal

land. Sec. 8403. Repeal of biomass commercial utilization grant program. Sec. 8404. Water Source Protection Program. Sec. 8405. Watershed Condition Framework. Sec. 8406. Authorization of appropriations to combat insect infestations and related

diseases. Sec. 8407. Healthy Forests Restoration Act of 2003 amendments. Sec. 8408. Authorization of appropriations for designation of treatment areas.

Subtitle E—Repeal or Reauthorization of Miscellaneous Forestry Programs Sec. 8501. Repeal of revision of strategic plan for forest inventory and analysis. Sec. 8502. Semiarid agroforestry research center. Sec. 8503. National Forest Foundation Act. Sec. 8504. Conveyance of Forest Service administrative sites.

Subtitle F—Forest Management Sec. 8601. Definition of National Forest System.

PART I—EXPEDITED ENVIRONMENTAL ANALYSIS AND AVAILABILITY OF CATEGORICAL EXCLUSIONS TO EXPEDITE FOREST MANAGEMENT ACTIVITIES

Sec. 8611. Categorical exclusion for greater sage-grouse and mule deer habitat.

PART II—MISCELLANEOUS FOREST MANAGEMENT ACTIVITIES Sec. 8621. Additional authority for sale or exchange of small parcels of National

Forest System land. Sec. 8622. Forest Service participation in ACES program. Sec. 8623. Authorization for lease of Forest Service sites. Sec. 8624. Good neighbor authority. Sec. 8625. Chattahoochee-Oconee National Forest land adjustment. Sec. 8626. Tennessee wilderness. Sec. 8627. Kisatchie National Forest land conveyance. Sec. 8628. Purchase of Natural Resources Conservation Service property, Riverside

County, California. Sec. 8629. Collaborative Forest Landscape Restoration Program. Sec. 8630. Utility infrastructure rights-of-way vegetation management pilot pro-

gram. Sec. 8631. Okhissa Lake rural economic development land conveyance. Sec. 8632. Remote sensing technologies.

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132 STAT. 4498 PUBLIC LAW 115–334—DEC. 20, 2018

PART III—TIMBER INNOVATION Sec. 8641. Definitions. Sec. 8642. Clarification of research and development program for wood building

construction. Sec. 8643. Wood innovation grant program. Sec. 8644. Community wood energy and wood innovation program.

Subtitle G—Other Matters Sec. 8701. Rural revitalization technologies. Sec. 8702. Resource Advisory Committees. Sec. 8703. Tribal forest management demonstration project. Sec. 8704. Technical corrections. Sec. 8705. Streamlining the Forest Service process for consideration of communica-

tions facility location applications. Sec. 8706. Report on wildfire, insect infestation, and disease prevention on Federal

land. Sec. 8707. West Fork Fire Station. Sec. 8708. Competitive forestry, natural resources, and environmental grants pro-

gram.

TITLE IX—ENERGY Sec. 9001. Definitions. Sec. 9002. Biobased markets program. Sec. 9003. Biorefinery assistance. Sec. 9004. Repowering assistance program. Sec. 9005. Bioenergy program for advanced biofuels. Sec. 9006. Biodiesel fuel education program. Sec. 9007. Rural Energy for America Program. Sec. 9008. Rural Energy Self-Sufficiency Initiative. Sec. 9009. Feedstock flexibility. Sec. 9010. Biomass Crop Assistance Program. Sec. 9011. Carbon utilization and biogas education program.

TITLE X—HORTICULTURE Sec. 10101. Specialty crops market news allocation. Sec. 10102. Local agriculture market program. Sec. 10103. Organic production and market data initiatives. Sec. 10104. Organic certification. Sec. 10105. National organic certification cost-share program. Sec. 10106. Food safety education initiatives. Sec. 10107. Specialty crop block grants. Sec. 10108. Amendments to the Plant Variety Protection Act. Sec. 10109. Multiple crop and pesticide use survey. Sec. 10110. Report on the arrival in the United States of forest pests through re-

strictions on the importation of certain plants for planting. Sec. 10111. Report on plant biostimulants. Sec. 10112. Clarification of use of funds for technical assistance. Sec. 10113. Hemp production. Sec. 10114. Interstate commerce. Sec. 10115. FIFRA interagency working group. Sec. 10116. Study on methyl bromide use in response to an emergency event.

TITLE XI—CROP INSURANCE Sec. 11101. Definitions. Sec. 11102. Data collection. Sec. 11103. Sharing of records. Sec. 11104. Use of resources. Sec. 11105. Specialty crops. Sec. 11106. Insurance period. Sec. 11107. Cover crops. Sec. 11108. Underserved producers. Sec. 11109. Treatment of forage and grazing. Sec. 11110. Administrative basic fee. Sec. 11111. Enterprise units. Sec. 11112. Continued authority. Sec. 11113. Submission of policies and materials to board. Sec. 11114. Crop production on native sod. Sec. 11115. Use of national agricultural statistics service data to combat waste,

fraud, and abuse. Sec. 11116. Submission of information to corporation.

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132 STAT. 4499PUBLIC LAW 115–334—DEC. 20, 2018

Sec. 11117. Continuing education for loss adjusters and agents. Sec. 11118. Program administration. Sec. 11119. Agricultural commodity. Sec. 11120. Maintenance of policies. Sec. 11121. Reimbursement of research, development, and maintenance costs. Sec. 11122. Research and development authority. Sec. 11123. Funding for research and development. Sec. 11124. Technical amendment to pilot programs. Sec. 11125. Education and risk management assistance. Sec. 11126. Repeal of cropland report annual updates.

TITLE XII—MISCELLANEOUS

Subtitle A—Livestock Sec. 12101. Animal disease prevention and management. Sec. 12102. Sheep production and marketing grant program. Sec. 12103. Feasibility study on livestock dealer statutory trust. Sec. 12104. Definition of livestock. Sec. 12105. National Aquatic Animal Health Plan. Sec. 12106. Veterinary training. Sec. 12107. Report on FSIS guidance and outreach to small meat processors. Sec. 12108. Regional Cattle and Carcass Grading Correlation and Training Cen-

ters.

Subtitle B—Agriculture and Food Defense Sec. 12201. Repeal of Office of Homeland Security. Sec. 12202. Office of Homeland Security. Sec. 12203. Agriculture and food defense. Sec. 12204. Biological agents and toxins list. Sec. 12205. Authorization of appropriations.

Subtitle C—Historically Underserved Producers Sec. 12301. Farming opportunities training and outreach. Sec. 12302. Urban agriculture. Sec. 12303. Tribal Advisory Committee. Sec. 12304. Beginning farmer and rancher coordination. Sec. 12305. Agricultural youth organization coordinator. Sec. 12306. Availability of Department of Agriculture programs for veteran farmers

and ranchers.

Subtitle D—Department of Agriculture Reorganization Act of 1994 Amendments Sec. 12401. Office of Congressional Relations and Intergovernmental Affairs. Sec. 12402. Military Veterans Agricultural Liaison. Sec. 12403. Civil rights analyses. Sec. 12404. Farm Service Agency. Sec. 12405. Under Secretary of Agriculture for Farm Production and Conservation. Sec. 12406. Office of Partnerships and Public Engagement. Sec. 12407. Under Secretary of Agriculture for Rural Development. Sec. 12408. Administrator of the Rural Utilities Service. Sec. 12409. Rural Health Liaison. Sec. 12410. Natural Resources Conservation Service. Sec. 12411. Office of the Chief Scientist. Sec. 12412. Appointment of national appeals division hearing officers. Sec. 12413. Trade and foreign agricultural affairs. Sec. 12414. Repeals. Sec. 12415. Technical corrections. Sec. 12416. Termination of authority.

Subtitle E—Other Miscellaneous Provisions

PART I—MISCELLANEOUS AGRICULTURE PROVISIONS Sec. 12501. Acer access and development program. Sec. 12502. Protecting animals with shelter. Sec. 12503. Marketing orders. Sec. 12504. Establishment of food loss and waste reduction liaison. Sec. 12505. Report on business centers. Sec. 12506. Report on personnel. Sec. 12507. Report on absent landlords. Sec. 12508. Century farms program. Sec. 12509. Report on importation of live dogs. Sec. 12510. Tribal Promise Zones.

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Sec. 12511. Precision agriculture connectivity. Sec. 12512. Improvements to United States Drought Monitor. Sec. 12513. Dairy business innovation initiatives. Sec. 12514. Report on funding for the National Institute of Food and Agriculture

and other extension programs. Sec. 12515. Prohibition on slaughter of dogs and cats for human consumption. Sec. 12516. Labeling exemption for single ingredient foods and products. Sec. 12517. South Carolina inclusion in Virginia/Carolina peanut producing region. Sec. 12518. Forest Service hire authority. Sec. 12519. Conversion authority. Sec. 12520. Authorization of protection operations for the Secretary of Agriculture

and others.

PART II—NATIONAL OILHEAT RESEARCH ALLIANCE Sec. 12531. National oilheat research alliance.

Subtitle F—General Provisions Sec. 12601. Baiting of migratory game birds. Sec. 12602. Pima agriculture cotton trust fund. Sec. 12603. Agriculture wool apparel manufacturers trust fund. Sec. 12604. Wool research and promotion. Sec. 12605. Emergency Citrus Disease Research and Development Trust Fund. Sec. 12606. Extension of merchandise processing fees. Sec. 12607. Reports on land access and farmland ownership data collection. Sec. 12608. Reauthorization of rural emergency medical services training and

equipment assistance program. Sec. 12609. Commission on Farm Transitions—Needs for 2050. Sec. 12610. Exceptions under United States Grain Standards Act. Sec. 12611. Conference report requirement threshold. Sec. 12612. National agriculture imagery program. Sec. 12613. Report on inclusion of natural stone products in Commodity Promotion,

Research, and Information Act of 1996. Sec. 12614. Establishment of food access liaison. Sec. 12615. Eligibility for operators on heirs property land to obtain a farm num-

ber. Sec. 12616. Extending prohibition on animal fighting to the territories. Sec. 12617. Exemption of exportation of certain echinoderms from permission and

licensing requirements. Sec. 12618. Data on conservation practices. Sec. 12619. Conforming changes to Controlled Substances Act.

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ‘‘Secretary’’ means the Secretary of Agri- culture.

TITLE I—COMMODITIES

Subtitle A—Commodity Policy SEC. 1101. DEFINITION OF EFFECTIVE REFERENCE PRICE.

Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended—

(1) by redesignating paragraphs (8) through (25) as para- graphs (9) through (26), respectively; and

(2) by inserting after paragraph (7) the following: ‘‘(8) EFFECTIVE REFERENCE PRICE.—The term ‘effective ref-

erence price’, with respect to a covered commodity for a crop year, means the lesser of the following:

‘‘(A) An amount equal to 115 percent of the reference price for such covered commodity.

‘‘(B) An amount equal to the greater of— ‘‘(i) the reference price for such covered commodity;

or ‘‘(ii) 85 percent of the average of the marketing

year average price of the covered commodity for the

7 USC 9001 note.

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132 STAT. 4501PUBLIC LAW 115–334—DEC. 20, 2018

most recent 5 crop years, excluding each of the crop years with the highest and lowest marketing year aver- age price.’’.

SEC. 1102. BASE ACRES.

(a) TECHNICAL CORRECTIONS.—Section 1112(c)(2) of the Agricul- tural Act of 2014 (7 U.S.C. 9012(c)(2)) is amended by striking subparagraph (A) and inserting the following:

‘‘(A) Any acreage on the farm enrolled in— ‘‘(i) the conservation reserve program established

under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.); or

‘‘(ii) a wetland reserve easement under section 1265C of the Food Security Act of 1985 (16 U.S.C. 3865c).’’.

(b) REDUCTION IN BASE ACRES.—Section 1112(d) of the Agricul- tural Act of 2014 (7 U.S.C. 9012(d)) is amended by adding at the end the following:

‘‘(3) TREATMENT OF BASE ACRES ON FARMS ENTIRELY PLANTED TO GRASS OR PASTURE.—

‘‘(A) IN GENERAL.—In the case of a farm on which all of the cropland was planted to grass or pasture (including cropland that was idle or fallow), as determined by the Secretary, during the period beginning on January 1, 2009, and ending on December 31, 2017, the Secretary shall maintain all base acres and payment yields for the covered commodities on the farm, except that no payment shall be made with respect to those base acres under section 1116 or 1117 for the 2019 through 2023 crop years.

‘‘(B) INELIGIBILITY.—The producers on a farm for which all of the base acres are maintained under subparagraph (A) shall be ineligible for the option to change the election applicable to the producers on the farm under section 1115(h). ‘‘(4) PROHIBITION ON RECONSTITUTION OF FARM.—The Sec-

retary shall ensure that producers on a farm do not reconstitute the farm to void or change the treatment of base acres under this section.’’.

SEC. 1103. PAYMENT YIELDS.

(a) TREATMENT OF DESIGNATED OILSEEDS.—Section 1113(b) of the Agricultural Act of 2014 (7 U.S.C. 9013(b)) is amended—

(1) in paragraph (1), by striking ‘‘designated oilseeds’’ and inserting ‘‘oilseeds designated before the date of enactment of the Agriculture Improvement Act of 2018’’;

(2) in paragraphs (2) and (3), by striking ‘‘a designated oilseed’’ each place it appears and inserting ‘‘an oilseed des- ignated before the date of enactment of the Agriculture Improvement Act of 2018’’; and

(3) by adding at the end the following: ‘‘(4) TREATMENT OF OILSEEDS DESIGNATED AFTER CERTAIN

DATE.—In the case of oilseeds designated on or after the date of enactment of the Agriculture Improvement Act of 2018, the payment yield shall be equal to 90 percent of the average of the yield per planted acre for the most recent 5 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero.’’.

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132 STAT. 4502 PUBLIC LAW 115–334—DEC. 20, 2018

(b) SINGLE OPPORTUNITY TO UPDATE YIELDS.—Section 1113 of the Agricultural Act of 2014 (7 U.S.C. 9013) is amended by striking subsection (d) and inserting the following:

‘‘(d) SINGLE OPPORTUNITY TO UPDATE YIELDS.— ‘‘(1) ELECTION TO UPDATE.—At the sole discretion of the

owner of a farm, the owner of a farm shall have a 1-time opportunity to update, on a covered-commodity-by-covered-com- modity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made.

‘‘(2) METHOD OF UPDATING YIELDS FOR COVERED COMMOD- ITIES.—If the owner of a farm elects to update yields under paragraph (1), the payment yield for a covered commodity on the farm, for the purpose of calculating price loss coverage payments only, shall be equal to the product obtained by multi- plying—

‘‘(A) 90 percent; ‘‘(B) the average of the yield per planted acre for the

crop of covered commodities on the farm for the 2013 through 2017 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero; and

‘‘(C) subject to paragraph (3), the ratio obtained by dividing—

‘‘(i) the average of the 2008 through 2012 national average yield per planted acre for the covered com- modity, as determined by the Secretary; by

‘‘(ii) the average of the 2013 through 2017 national average yield per planted acre for the covered com- modity, as determined by the Secretary.

‘‘(3) LIMITATION.—In no case shall the ratio obtained under paragraph (2)(C) be less than 90 percent or greater than 100 percent.

‘‘(4) USE OF COUNTY AVERAGE YIELD.—For the purposes of determining the average yield per planted acre under para- graph (2)(B), if the yield per planted acre for a crop of a covered commodity for a farm for any of the crop years described in that subparagraph was less than 75 percent of the average of county yields for those crop years for that commodity, the Secretary shall assign a yield for that crop year equal to 75 percent of the average of the 2013 through 2017 county yield for the covered commodity.

‘‘(5) UPLAND COTTON CONVERSION.—In the case of seed cotton, for purposes of determining the average of the yield per planted acre under this subsection, the average yield for seed cotton per planted acre shall be equal to 2.4 times the average yield for upland cotton per planted acre.

‘‘(6) TIME FOR ELECTION.—An election under this subsection shall be made at a time and manner so as to be in effect beginning with the 2020 crop year, as determined by the Sec- retary.’’.

SEC. 1104. PAYMENT ACRES.

Section 1114 of the Agricultural Act of 2014 (7 U.S.C. 9014) is amended—

(1) in subsection (d)—

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132 STAT. 4503PUBLIC LAW 115–334—DEC. 20, 2018

(A) in paragraph (1), by inserting ‘‘, unless the sum of the base acres on the farm, when combined with the base acres of other farms in which the producer has an interest, is more than 10 acres’’ before the period at the end; and

(B) in paragraph (2)— (i) in subparagraph (A), by striking ‘‘or’’ at the

end; (ii) in subparagraph (B), by striking the period

at the end and inserting a semicolon; and (iii) by adding at the end the following:

‘‘(C) a beginning farmer or rancher (as defined in sub- section (a) of section 2501 of the Food, Agriculture, Con- servation, and Trade Act of 1990 (7 U.S.C. 2279)); or

‘‘(D) a veteran farmer or rancher (as defined in sub- section (a) of section 2501 of the Food, Agriculture, Con- servation, and Trade Act of 1990 (7 U.S.C. 2279)).’’; and (2) in subsection (e), by adding at the end the following: ‘‘(5) EFFECT OF REDUCTION.—For each crop year for which

fruits, vegetables (other than mung beans and pulse crops), or wild rice are planted to base acres on a farm for which a reduction in payment acres is made under this subsection, the Secretary shall consider such base acres to be planted, or prevented from being planted, to a covered commodity for purposes of any adjustment or reduction of base acres for the farm under section 1112.’’.

SEC. 1105. PRODUCER ELECTION.

Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended—

(1) in subsection (a), in the matter preceding paragraph (1), by striking ‘‘Except as provided in subsection (g), for the 2014 through 2018 crop years’’ and inserting ‘‘For the 2014 through 2018 crop years (except as provided in subsection (g)) and for the 2019 through 2023 crop years (subject to subsection (h))’’;

(2) in subsection (b), in the matter preceding paragraph (1), by striking ‘‘subsection (a), the producers on a farm that elect under paragraph (2) of such subsection to obtain agri- culture risk coverage under section 1117’’ and inserting ‘‘sub- section (a) or (h), as applicable, the producers on a farm that elect to obtain agriculture risk coverage’’;

(3) in subsection (c)— (A) in the matter preceding paragraph (1), by inserting

‘‘or the 2019 crop year, as applicable’’ after ‘‘2014 crop year’’;

(B) in paragraph (1), by inserting ‘‘or the 2019 crop year, as applicable,’’ after ‘‘2014 crop year’’; and

(C) by striking paragraph (2) and inserting the fol- lowing: ‘‘(2) subject to subsection (h), the producers on the farm

shall be deemed to have elected, as applicable— ‘‘(A) price loss coverage for all covered commodities

on the farm for the 2015 through 2018 crop years; and ‘‘(B) the same coverage for each covered commodity

on the farm for the 2020 through 2023 crop years as was applicable for the 2015 through 2018 crop years.’’;

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132 STAT. 4504 PUBLIC LAW 115–334—DEC. 20, 2018

(4) in subsection (g)(1), by inserting ‘‘for the 2018 crop year,’’ before ‘‘all of the producers’’; and

(5) by adding at the end the following: ‘‘(h) OPTION TO CHANGE ELECTION.—

‘‘(1) IN GENERAL.—For the 2021 crop year and each crop year thereafter, all of the producers on a farm may change the election under subsection (a), subsection (c), or this sub- section, as applicable, to price loss coverage or agriculture risk coverage, as applicable.

‘‘(2) APPLICABILITY.—An election change under paragraph (1) shall apply to—

‘‘(A) the crop year for which the election change is made; and

‘‘(B) each crop year thereafter until another election change is made under that paragraph.’’.

SEC. 1106. PRICE LOSS COVERAGE.

Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended—

(1) in subsection (a)— (A) by redesignating paragraphs (1) and (2) as subpara-

graphs (A) and (B), respectively, and indenting appro- priately;

(B) in the matter preceding subparagraph (A) (as so redesignated)—

(i) by inserting ‘‘or (h)’’ after ‘‘subsection (a)’’; and (ii) by striking ‘‘determines that, for any of the

2014 through 2018 crop years—’’ and inserting ‘‘deter- mines that—

‘‘(1) for any of the 2014 through 2018 crop years—’’; (C) in paragraph (1)(B) (as so redesignated), by striking

the period at the end and inserting ‘‘; or’’; and (D) by adding at the end the following:

‘‘(2) for any of the 2019 through 2023 crop years— ‘‘(A) the effective price for the covered commodity for

the crop year; is less than ‘‘(B) the effective reference price for the covered com-

modity for the crop year.’’; (2) in subsection (c)—

(A) by redesignating paragraphs (1) and (2) as clauses (i) and (ii), respectively, and indenting appropriately;

(B) in the matter preceding clause (i) (as so redesig- nated), by striking ‘‘The payment rate’’ and inserting the following: ‘‘(1) IN GENERAL.—

‘‘(A) 2014 THROUGH 2018 CROP YEARS.—For the 2014 through 2018 crop years, the payment rate’’;

(C) in paragraph (1) (as so designated), by adding at the end the following:

‘‘(B) 2019 THROUGH 2023 CROP YEARS.—For the 2019 through 2023 crop years, the payment rate shall be equal to the difference between—

‘‘(i) the effective reference price for the covered commodity; and

‘‘(ii) the effective price determined under sub- section (b) for the covered commodity.’’; and (D) by adding at the end the following:

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132 STAT. 4505PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(2) ANNOUNCEMENT.—Not later than 30 days after the end of each applicable 12-month marketing year for each cov- ered commodity, the Secretary shall publish the payment rate determined under paragraph (1).

‘‘(3) INSUFFICIENT DATA.—In the case of a covered com- modity, such as temperate japonica rice, for which the Secretary cannot determine the payment rate for the most recent 12- month marketing year by the date described in paragraph (2) due to insufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, the Secretary shall pub- lish the payment rate as soon as practicable after the marketing year data are made available.’’; and

(3) by striking subsection (g) and inserting the following: ‘‘(g) REFERENCE PRICE FOR TEMPERATE JAPONICA RICE.—In

order to reflect price premiums, the Secretary shall provide a ref- erence price with respect to temperate japonica rice in an amount equal to the amount established under subparagraph (F) of section 1111(19), as adjusted by paragraph (8) of such section, multiplied by the ratio obtained by dividing—

‘‘(1) the simple average of the marketing year average price of medium grain rice from the 2012 through 2016 crop years; by

‘‘(2) the simple average of the marketing year average price of all rice from the 2012 through 2016 crop years.’’.

SEC. 1107. AGRICULTURE RISK COVERAGE.

Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended—

(1) in subsection (a), in the matter preceding paragraph (1)—

(A) by inserting ‘‘(beginning with the 2019 crop year, based on the physical location of the farm)’’ after ‘‘pay- ments’’; and

(B) by inserting ‘‘or the 2019 through 2023 crop years, as applicable’’ after ‘‘2014 through 2018 crop years’’; (2) in subsection (c)—

(A) in paragraph (2)— (i) in subparagraph (A), by striking ‘‘paragraph

(4)’’ and inserting ‘‘paragraphs (4) and (5)’’; and (ii) in subparagraph (B), by striking ‘‘(5)’’ and

inserting ‘‘(6)’’; (B) in paragraph (3)—

(i) in subparagraph (A)(ii), by striking ‘‘(5)’’ and inserting ‘‘(6)’’; and

(ii) in subparagraph (C), by striking ‘‘2018’’ and inserting ‘‘2023’’; (C) in paragraph (4)—

(i) by striking ‘‘If’’ and inserting the following: ‘‘(A) 2014 THROUGH 2018 CROP YEARS.—Effective for

the 2014 through 2018 crop years, if’’; and (ii) by adding at the end the following:

‘‘(B) 2019 THROUGH 2023 CROP YEARS.—Effective for the 2019 through 2023 crop years, if the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of

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132 STAT. 4506 PUBLIC LAW 115–334—DEC. 20, 2018

the 5 most recent crop years, as determined by the Sec- retary, is less than 80 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) or (3)(A)(i) shall be 80 percent of the transitional yield.’’;

(D) by redesignating paragraph (5) as paragraph (6); (E) by inserting after paragraph (4) the following:

‘‘(5) TREND-ADJUSTED YIELD.—The Secretary shall calculate and use a trend-adjusted yield factor to adjust the yield deter- mined under paragraph (2)(A) and subsection (b)(1)(A), taking into consideration, but not exceeding, the trend-adjusted yield factor that is used to increase yield history under the endorse- ment under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for that crop and county.’’; and

(F) in paragraph (6) (as so redesignated)— (i) by striking ‘‘REFERENCE PRICE.—If the national

average market price’’ and inserting the following: ‘‘LOW NATIONAL AVERAGE MARKET PRICE.— ‘‘(A) REFERENCE PRICE.—For the 2014 through 2018

crop years, if the national average market price’’; and (ii) by adding at the end the following:

‘‘(B) EFFECTIVE REFERENCE PRICE.—For the 2019 through 2023 crop years, if the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop years is lower than the effective reference price for the covered com- modity, the Secretary shall use the effective reference price for any of those years for the amounts in paragraph (2)(B) or (3)(A)(ii).’’; (3) in subsection (d)—

(A) in paragraph (1), by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately;

(B) by redesignating paragraphs (1) and (2) as subpara- graphs (A) and (B), respectively, and indenting appro- priately;

(C) in the matter preceding subparagraph (A) (as so redesignated), by striking ‘‘The payment’’ and inserting the following: ‘‘(1) IN GENERAL.—The payment’’; and

(D) by adding at the end the following: ‘‘(2) ANNOUNCEMENT.—Not later than 30 days after the

end of each applicable 12-month marketing year for each cov- ered commodity, the Secretary shall publish the payment rate determined under paragraph (1) for each county.’’;

(4) in subsection (e), in the matter preceding paragraph (1), by striking ‘‘2018’’ and inserting ‘‘2023’’;

(5) in subsection (g)— (A) in paragraph (2), by striking ‘‘to the maximum

extent practicable,’’; (B) in paragraph (3), by striking ‘‘and’’ after the semi-

colon at the end; (C) in paragraph (4)—

(i) in the matter preceding subparagraph (A), by inserting ‘‘effective for the 2014 through 2018 crop years,’’ before ‘‘in the case of’’; and

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132 STAT. 4507PUBLIC LAW 115–334—DEC. 20, 2018

(ii) in subparagraph (B), by striking the period at the end and inserting ‘‘; and’’; and (D) by adding at the end the following:

‘‘(5) effective for the 2019 through 2023 crop years, in the case of county coverage, assign an actual or benchmark county yield for each planted acre for the crop year for the covered commodity—

‘‘(A) for a county for which county data collected by the Risk Management Agency are sufficient for the Sec- retary to offer a county-wide insurance product, using the actual average county yield determined by the Risk Management Agency; or

‘‘(B) for a county not described in subparagraph (A), using—

‘‘(i) other sources of yield information, as deter- mined by the Secretary; or

‘‘(ii) the yield history of representative farms in the State, region, or crop reporting district, as deter- mined by the Secretary.’’; and

(6) by adding at the end the following: ‘‘(h) PUBLICATIONS.—

‘‘(1) COUNTY GUARANTEE.— ‘‘(A) IN GENERAL.—For each crop year for a covered

commodity, the Secretary shall publish information describing, for that crop year for the covered commodity in each county—

‘‘(i) the agriculture risk coverage guarantee for county coverage determined under subsection (c)(1);

‘‘(ii) the average historical county yield determined under subsection (c)(2)(A); and

‘‘(iii) the national average market price determined under subsection (c)(2)(B). ‘‘(B) TIMING.—

‘‘(i) IN GENERAL.—Except as provided in clauses (ii) and (iii), not later than 30 days after the end of each applicable 12-month marketing year, the Sec- retary shall publish the information described in subparagraph (A).

‘‘(ii) INSUFFICIENT DATA.—In the case of a covered commodity, such as temperate japonica rice, for which the Secretary cannot determine the national average market price for the most recent 12-month marketing year by the date described in clause (i) due to insuffi- cient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, as soon as prac- ticable after the pricing data are made available, the Secretary shall publish information describing—

‘‘(I) the agriculture risk coverage guarantee under subparagraph (A)(i); and

‘‘(II) the national average market price under subparagraph (A)(iii). ‘‘(iii) TRANSITION.—Not later than 60 days after

the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall publish the information described in clauses (i) and (ii) of subparagraph (A) for the 2018 crop year.

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132 STAT. 4508 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(2) ACTUAL AVERAGE COUNTY YIELD.—As soon as prac- ticable after each crop year, the Secretary shall determine and publish each actual average county yield for each covered commodity, as determined under subsection (b)(1)(A).

‘‘(3) DATA SOURCES FOR COUNTY YIELDS.—For the 2018 crop year and each crop year thereafter, the Secretary shall make publicly available information describing, for the most recent crop year—

‘‘(A) the sources of data used to calculate county yields under subsection (c)(2)(A) for each covered commodity—

‘‘(i) by county; and ‘‘(ii) nationally; and

‘‘(B) the number and outcome of occurrences in which the Farm Service Agency reviewed, changed, or determined not to change a source of data used to calculate county yields under subsection (c)(2)(A).

‘‘(i) ADMINISTRATIVE UNITS.— ‘‘(1) IN GENERAL.—For purposes of agriculture risk coverage

payments in the case of county coverage, a county may be divided into not greater than 2 administrative units in accord- ance with this subsection.

‘‘(2) ELIGIBLE COUNTIES.—A county that may be divided into administrative units under this subsection is a county that—

‘‘(A) is larger than 1,400 square miles; and ‘‘(B) contains more than 190,000 base acres.

‘‘(3) ELECTIONS.—Before making any agriculture risk cov- erage payments for the 2019 crop year, the Farm Service Agency State committee, in consultation with the Farm Service Agency county or area committee of a county described in paragraph (2), may make a 1-time election to divide the county into administrative units under this subsection along a boundary that better reflects differences in weather patterns, soil types, or other factors.

‘‘(4) LIMITATION.—The Secretary shall— ‘‘(A) limit the number of counties that may be divided

into administrative units under paragraph (3) to 25 coun- ties; and

‘‘(B) give preference to the division of counties that have greater variation in climate, soils, and expected productivity between the proposed administrative units. ‘‘(5) ADMINISTRATION.—For purposes of providing agri-

culture risk coverage payments in the case of county coverage, the Secretary shall consider an administrative unit elected under paragraph (3) to be a county for the 2019 through 2023 crop years.’’.

SEC. 1108. REPEAL OF TRANSITION ASSISTANCE FOR PRODUCERS OF UPLAND COTTON.

Section 1119 of the Agricultural Act of 2014 (7 U.S.C. 9019) is repealed.

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132 STAT. 4509PUBLIC LAW 115–334—DEC. 20, 2018

Subtitle B—Marketing Loans

SEC. 1201. EXTENSIONS.

(a) IN GENERAL.—Section 1201(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(b) REPAYMENT.—Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended—

(1) in subsection (e)(2)(B), in the matter preceding clause (i), by striking ‘‘2019’’and inserting ‘‘2024’’; and

(2) in subsection (g), by striking ‘‘2018’’ and inserting ‘‘2023’’. (c) LOAN DEFICIENCY PAYMENTS.—

(1) EXTENSION.—Section 1205(a)(2)(B) of the Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(2) PAYMENTS IN LIEU OF LDPS.—Section 1206 of the Agri- cultural Act of 2014 (7 U.S.C. 9036) is amended in subsections (a) and (d) by striking ‘‘2018’’ each place it appears and inserting ‘‘2023’’.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

(a) IN GENERAL.—Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended—

(1) in subsection (a), by striking the subsection heading and inserting ‘‘2014 THROUGH 2018 CROP YEARS’’;

(2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively;

(3) by inserting after subsection (a) the following: ‘‘(b) 2019 THROUGH 2023 CROP YEARS.—For purposes of each

of the 2019 through 2023 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:

‘‘(1) In the case of wheat, $3.38 per bushel. ‘‘(2) In the case of corn, $2.20 per bushel. ‘‘(3) In the case of grain sorghum, $2.20 per bushel. ‘‘(4) In the case of barley, $2.50 per bushel. ‘‘(5) In the case of oats, $2.00 per bushel. ‘‘(6)(A) Subject to subparagraphs (B) and (C), in the case

of base quality of upland cotton, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic planting.

‘‘(B) Except as provided in subparagraph (C), the loan rate determined under subparagraph (A) may not equal less than an amount equal to 98 percent of the loan rate for base quality of upland cotton for the preceding year.

‘‘(C) The loan rate determined under subparagraph (A) may not be equal to an amount—

‘‘(i) less than $0.45 per pound; or ‘‘(ii) more than $0.52 per pound.

‘‘(7) In the case of extra long staple cotton, $0.95 per pound.

‘‘(8) In the case of long grain rice, $7.00 per hundredweight.

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‘‘(9) In the case of medium grain rice, $7.00 per hundred- weight.

‘‘(10) In the case of soybeans, $6.20 per bushel. ‘‘(11) In the case of other oilseeds, $10.09 per hundred-

weight for each of the following kinds of oilseeds: ‘‘(A) Sunflower seed. ‘‘(B) Rapeseed. ‘‘(C) Canola. ‘‘(D) Safflower. ‘‘(E) Flaxseed. ‘‘(F) Mustard seed. ‘‘(G) Crambe. ‘‘(H) Sesame seed. ‘‘(I) Other oilseeds designated by the Secretary.

‘‘(12) In the case of dry peas, $6.15 per hundredweight. ‘‘(13) In the case of lentils, $13.00 per hundredweight. ‘‘(14) In the case of small chickpeas, $10.00 per hundred-

weight. ‘‘(15) In the case of large chickpeas, $14.00 per hundred-

weight. ‘‘(16) In the case of graded wool, $1.15 per pound. ‘‘(17) In the case of nongraded wool, $0.40 per pound. ‘‘(18) In the case of mohair, $4.20 per pound. ‘‘(19) In the case of honey, $0.69 per pound. ‘‘(20) In the case of peanuts, $355 per ton.’’; and (4) in subsection (c) (as so redesignated), by striking ‘‘sub-

section (a)(11)’’ and inserting ‘‘subsections (a)(11) and (b)(11)’’. (b) CONFORMING AMENDMENT.—Section 1204(h)(1) of the Agri-

cultural Act of 2014 (7 U.S.C. 9034(h)(1)) is amended by striking ‘‘section 1202(a)(20)’’ and inserting ‘‘subsection (a)(20) or (b)(20), as applicable, of section 1202’’. SEC. 1203. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS.

(a) 2008 AUTHORITY.—Section 1207 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8737) is amended by striking subsection (c).

(b) 2014 AUTHORITY.—Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended by striking the subsection heading and inserting ‘‘ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS’’. SEC. 1204. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG

STAPLE COTTON.

(a) IN GENERAL.—Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is amended in the matter preceding para- graph (1) by striking ‘‘2019’’ and inserting ‘‘2024’’.

(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Section 1208(b)(2) of the Agricultural Act of 2014 (7 U.S.C. 9038(b)(2)) is amended by striking ‘‘134 percent’’ and inserting ‘‘113 percent’’. SEC. 1205. AVAILABILITY OF RECOURSE LOANS.

(a) IN GENERAL.—Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended in subsections (a)(2) and (b) by striking ‘‘2018’’ each place it appears and inserting ‘‘2023’’.

(b) RECOURSE LOANS AVAILABLE FOR CONTAMINATED COMMOD- ITIES.—Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended—

(1) by redesignating subsection (c) as subsection (d); and

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132 STAT. 4511PUBLIC LAW 115–334—DEC. 20, 2018

(2) by inserting after subsection (b) the following: ‘‘(c) RECOURSE LOANS AVAILABLE FOR CONTAMINATED COMMOD-

ITIES.—In the case of a loan commodity that is ineligible for 100 percent of the nonrecourse marketing loan rate in the county due to a determination that the commodity is contaminated yet still merchantable, for each of the 2019 through 2023 crops of such loan commodity, the Secretary shall make available recourse com- modity loans, at the rate provided under section 1202, on any production.’’.

Subtitle C—Sugar SEC. 1301. SUGAR POLICY.

(a) SUGAR PROGRAM.— (1) SUGARCANE.—Section 156(a) of the Federal Agriculture

Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)) is amended—

(A) in paragraph (3), by striking ‘‘and’’ at the end; (B) in paragraph (4), by striking the period at the

end and inserting ‘‘; and’’; and (C) by adding at the end the following:

‘‘(5) 19.75 cents per pound for raw cane sugar for each of the 2019 through 2023 crop years.’’.

(2) SUGAR BEETS.—Section 156(b)(2) of the Federal Agri- culture Improvement and Reform Act of 1996 (7 U.S.C. 7272(b)(2)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(3) EFFECTIVE PERIOD.—Section 156(i) of the Federal Agri- culture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. (b) FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.—

(1) SUGAR ESTIMATES.—Section 359b(a)(1) of the Agricul- tural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(2) EFFECTIVE PERIOD.—Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

Subtitle D—Dairy Margin Coverage and Other Dairy Related Provisions

SEC. 1401. DAIRY MARGIN COVERAGE.

(a) REVIEW OF DATA USED IN CALCULATION OF AVERAGE FEED COST.—Not later than 60 days after the date of the enactment of this Act, the Secretary shall submit to the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report evalu- ating the extent to which the average cost of feed used by a dairy operation to produce a hundredweight of milk calculated by the Secretary as required by section 1402(a) of the Agricultural Act of 2014 (7 U.S.C. 9052(a)) is representative of actual dairy feed costs.

(b) CORN SILAGE REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the

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132 STAT. 4512 PUBLIC LAW 115–334—DEC. 20, 2018

Senate a report detailing the costs incurred by dairy operations in the use of corn silage as feed, and the difference between the feed cost of corn silage and the feed cost of corn.

(c) COLLECTION OF ALFALFA HAY DATA.—Not later than 120 days after the date of the enactment of this Act, the Secretary, acting through the National Agricultural Statistics Service, shall revise monthly price survey reports to include prices for high- quality alfalfa hay in the top five milk producing States, as meas- ured by volume of milk produced during the previous month.

(d) REGISTRATION OF MULTIPRODUCER DAIRY OPERATIONS.—Sec- tion 1404(b) of the Agricultural Act of 2014 (7 U.S.C. 9054(b)) is amended—

(1) by redesignating paragraph (4) as paragraph (5); and (2) by striking paragraph (3) and inserting the following: ‘‘(3) ELECTION PERIOD FOR 2019 CALENDAR YEAR.—For the

2019 calendar year, the Secretary shall— ‘‘(A) open the election period not later than 60 days

after the effective date described in section 1401(m) of the Agriculture Improvement Act of 2018; and

‘‘(B) hold that election period open for not less than 90 days. ‘‘(4) TREATMENT OF MULTIPRODUCER DAIRY OPERATION.—

‘‘(A) IN GENERAL.—If a participating dairy operation is operated by more than 1 dairy producer, the dairy pro- ducers of the dairy operation who elect to participate shall be treated as a single dairy operation for purposes of participating in dairy margin coverage.

‘‘(B) RULE OF CONSTRUCTION.—Subparagraph (A) shall not be construed to allow a producer to adjust the propor- tion of their share covered under tier I or tier II premiums from the proportion covered for the operation.’’.

(e) RELATION TO LIVESTOCK GROSS MARGIN FOR DAIRY PRO- GRAM.—

(1) IN GENERAL.—Section 1404 of the Agricultural Act of 2014 (7 U.S.C. 9054) is amended by striking subsection (d).

(2) RETROACTIVE PROGRAM OPTION.—Section 1404(b)(2) of the Agricultural Act of 2014 (7 U.S.C. 9054(b)(2)) is amended—

(A) by striking ‘‘The Secretary’’ and inserting the fol- lowing:

‘‘(A) IN GENERAL.—The Secretary’’; and (B) by adding at the end the following: ‘‘(B) RETROACTIVE PROGRAM OPTION.—In the case of

a dairy operation that, by operation of subsection (d) (as in effect on the day before the date of enactment of the Agriculture Improvement Act of 2018), was ineligible to participate in the margin protection program for any part of calendar year 2018, the Secretary shall establish a new election period for that calendar year that ends on a date that is not less than 90 days after the date of enactment of the Agriculture Improvement Act of 2018 and the Sec- retary determines is necessary for dairy operations to make new elections to participate in the margin protection pro- gram (as in effect on the day before the date of enactment of the Agriculture Improvement Act of 2018) for that cal- endar year, including dairy operations that elected to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et

7 USC 9052 note.

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132 STAT. 4513PUBLIC LAW 115–334—DEC. 20, 2018

seq.) before the date of enactment of the Bipartisan Budget Act of 2018 (Public Law 115–123).’’.

(f) PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERA- TORS.—

(1) ADJUSTMENT.—Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended—

(A) in subsection (a)— (i) in paragraph (2), by striking ‘‘In subsequent

years’’ and inserting ‘‘In the subsequent calendar years ending before January 1, 2019’’; and

(ii) in paragraph (3), by inserting ‘‘, as applicable’’ after ‘‘paragraph (2)’’; and (B) in subsection (b)—

(i) by redesignating paragraphs (1) and (2) as sub- paragraphs (A) and (B), respectively, and indenting appropriately;

(ii) in the matter preceding subparagraph (A) (as so redesignated), by striking ‘‘In the case’’ and inserting the following:

‘‘(1) DAIRY OPERATIONS WITH LESS THAN 1 YEAR OF PRODUC- TION HISTORY.—In the case’’; and

(iii) by adding at the end the following: ‘‘(2) DAIRY OPERATIONS WITH 1 YEAR OR MORE OF PRODUC-

TION HISTORY.—In the case of a participating dairy operation that was not in operation prior to January 1, 2014, that has not established a production history, and that has been in operation for equal to or longer than 1 year, the participating dairy operation shall elect the annual milk marketings during any 1 calendar year to determine the production history of the participating dairy operation.

‘‘(3) ADJUSTMENT.—The Secretary shall adjust the produc- tion history of a participating dairy operation determined under paragraph (1) or (2) to reflect any increase or decrease in the national average milk production relative to calendar year 2017.’’.

(2) LIMITATION ON CHANGES TO BUSINESS STRUCTURE.— Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended by adding at the end the following new subsection: ‘‘(d) LIMITATION ON CHANGES TO BUSINESS STRUCTURE.—The

Secretary may not make dairy margin coverage payments to a participating dairy operation if the Secretary determines that the participating dairy operation has reorganized the structure of such operation solely for the purpose of qualifying as a new operation under subsection (b).’’.

(g) COVERAGE LEVEL THRESHOLD AND COVERAGE PERCENT- AGE.—Section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056) is amended by striking subsection (a) and inserting the following:

‘‘(a) COVERAGE LEVEL THRESHOLD AND COVERAGE PERCENT- AGE.—

‘‘(1) COVERAGE LEVEL THRESHOLD.— ‘‘(A) IN GENERAL.—For purposes of receiving dairy

margin coverage payments for a month, a participating dairy operation shall annually elect a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, $8.00, $8.50, $9.00, or $9.50.

‘‘(B) APPLICABILITY.—Except as provided in subpara- graph (C), the coverage level threshold elected under

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132 STAT. 4514 PUBLIC LAW 115–334—DEC. 20, 2018

subparagraph (A) shall apply to the covered production elected by the participating dairy operation under para- graph (2).

‘‘(C) SECOND COVERAGE ELECTION FOR TIER II.—In the case of a participating dairy operation that elects a coverage level threshold of $8.50, $9.00, or $9.50 under subpara- graph (A)—

‘‘(i) that coverage level threshold shall apply to the first 5,000,000 pounds of milk marketings included in the covered production elected by the participating dairy operation; and

‘‘(ii) the participating dairy operation shall elect a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00 to apply to milk marketings in excess of 5,000,000 pounds included in the covered production elected by the participating dairy operation.

‘‘(2) COVERAGE PERCENTAGE.—For purposes of receiving dairy margin coverage payments for a month, a participating dairy operation shall annually elect a percentage of coverage, in 5-percent increments, not exceeding 95 percent of the produc- tion history of the participating dairy operation.’’. (h) PRODUCER PREMIUMS.—Section 1407 of the Agricultural

Act of 2014 (7 U.S.C. 9057) is amended— (1) in subsection (b), by striking paragraphs (2) and (3)

and inserting the following: ‘‘(2) PRODUCER PREMIUMS.—Except as provided in sub-

section (g), the following annual premiums apply:

‘‘Coverage Level Premium per Cwt.

$4.00 None $4.50 $0.0025 $5.00 $0.005 $5.50 $0.030 $6.00 $0.050 $6.50 $0.070 $7.00 $0.080 $7.50 $0.090 $8.00 $0.100 $8.50 $0.105 $9.00 $0.110 $9.50 $0.150’’; and

(2) in subsection (c), by striking paragraph (2) and inserting the following:

‘‘(2) PRODUCER PREMIUMS.—Except as provided in sub- section (g), the following annual premiums apply:

‘‘Coverage Level Premium per Cwt.

$4.00 None

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132 STAT. 4515PUBLIC LAW 115–334—DEC. 20, 2018

‘‘Coverage Level Premium per Cwt.

$4.50 $0.0025 $5.00 $0.005 $5.50 $0.100 $6.00 $0.310 $6.50 $0.650 $7.00 $1.107 $7.50 $1.413 $8.00 $1.813’’.

(i) REPAYMENT OF PREMIUMS.—Section 1407 of the Agricultural Act of 2014 (7 U.S.C. 9057) is amended by adding at the end the following:

‘‘(f) REPAYMENT OF PREMIUMS.— ‘‘(1) IN GENERAL.—Each dairy operation described in para-

graph (2) shall be eligible to receive a repayment from the Secretary in an amount equal to the difference between—

‘‘(A) the total amount of premiums paid by the partici- pating dairy operation under this section for each applicable calendar year; and

‘‘(B) the total amount of payments made to the partici- pating dairy operation under section 1406 for that calendar year. ‘‘(2) ELIGIBILITY.—A dairy operation that is eligible to

receive a repayment under paragraph (1) is a dairy operation that—

‘‘(A) participated in the margin protection program, as in effect for any of calendar years 2014 through 2017; and

‘‘(B) submits to the Secretary an application for the repayment at such time, in such manner, and containing such information as the Secretary may require. ‘‘(3) METHOD OF REPAYMENT.—A dairy operation that is

eligible to receive a repayment under paragraph (1) shall elect to receive the repayment—

‘‘(A) in an amount equal to 75 percent of the repayment calculated under that paragraph as credit that may be used by the dairy operation for dairy margin coverage premiums; or

‘‘(B) in an amount equal to 50 percent of the repayment calculated under that paragraph as a direct cash repay- ment. ‘‘(4) APPLICABILITY.—Paragraph (1) shall only apply to a

calendar year during the period of calendar years 2014 through 2017 for which the amount described in subparagraph (A) of that paragraph is greater than the amount described in subparagraph (B) of that paragraph.’’. (j) PREMIUM DISCOUNT.—Section 1407 of the Agricultural Act

of 2014 (7 U.S.C. 9057) (as amended by subsection (i)) is amended by adding at the end the following:

‘‘(g) PREMIUM DISCOUNT.—The premium per hundredweight specified in the tables contained in subsections (b) and (c) for each coverage level shall be reduced by 25 percent in accordance with the following:

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132 STAT. 4516 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(1) IN GENERAL.—For each of calendar years 2019 through 2023, for a participating dairy operation that makes a 1-time election of coverage level in a tier and of a percentage of coverage under section 1406(a) for the 5-year period beginning in January 2019.

‘‘(2) NEW DAIRY OPERATIONS.—For each applicable calendar year through 2023, for a participating dairy operation that—

‘‘(A) establishes a production history pursuant to sec- tion 1405(b); and

‘‘(B) makes a 1-time election of coverage level in a tier and of a percentage of coverage under section 1406(a) for the period beginning with the first available calendar year and ending in December 2023. ‘‘(3) FULL PARTICIPATION REQUIRED.—Notwithstanding the

annual elections under section 1406(a)— ‘‘(A) a 1-time enrollment under this subsection shall

remain in effect for the full duration applicable to a partici- pating dairy operation in accordance with paragraph (1) or (2)(B), as applicable; and

‘‘(B) a participating dairy operation that makes a 1- time enrollment under this subsection and is noncompliant under section 1408 shall be subject to that section.’’.

(k) CONFORMING AMENDMENTS RELATED TO PROGRAM NAME.— (1) HEADING.—The heading of part I of subtitle D of title

I of the Agricultural Act of 2014 (Public Law 113–79; 128 Stat. 688) is amended to read as follows:

‘‘PART I—DAIRY MARGIN COVERAGE’’. (2) DEFINITIONS.—Section 1401 of the Agricultural Act of

2014 (7 U.S.C. 9051) is amended— (A) by striking paragraphs (5) and (6) and inserting

the following new paragraphs: ‘‘(5) DAIRY MARGIN COVERAGE.—The term ‘dairy margin

coverage’ means the dairy margin coverage program required by section 1403.

‘‘(6) DAIRY MARGIN COVERAGE PAYMENT.—The term ‘dairy margin coverage payment’ means a payment made to a partici- pating dairy operation under dairy margin coverage pursuant to section 1406.’’; and

(B) in paragraphs (7) and (8), by striking ‘‘the margin protection program’’ both places it appears and inserting ‘‘dairy margin coverage’’. (3) CALCULATION OF ACTUAL DAIRY PRODUCTION MARGIN.—

Section 1402(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9052(b)(1)) is amended in the matter preceding subparagraph (A) by striking ‘‘the margin protection program’’ and inserting ‘‘dairy margin coverage’’.

(4) PROGRAM OPERATION.—Section 1403 of the Agricultural Act of 2014 (7 U.S.C. 9053) is amended—

(A) by striking the section heading and inserting ‘‘DAIRY MARGIN COVERAGE’’;

(B) by striking ‘‘Not later than September 1, 2014, the Secretary shall establish and administer a margin protection program’’ and inserting the following:

‘‘(a) IN GENERAL.—The Secretary shall continue to administer a dairy margin coverage program’’;

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132 STAT. 4517PUBLIC LAW 115–334—DEC. 20, 2018

(C) in subsection (a) (as so designated), by striking ‘‘margin protection payment’’ both places it appears and inserting ‘‘dairy margin coverage payment’’; and

(D) by adding at the end the following: ‘‘(b) REGULATIONS.—Subpart A of part 1430 of title 7, Code

of Federal Regulations (as in effect on the date of enactment of the Agriculture Improvement Act of 2018), shall remain in effect for dairy margin coverage beginning with the 2019 calendar year, except to the extent that the regulations are inconsistent with any provision of this Act.’’.

(5) PARTICIPATION.—Section 1404 of the Agricultural Act of 2014 (7 U.S.C. 9054) is amended—

(A) in the section heading, by striking ‘‘MARGIN PROTECTION PROGRAM’’ and inserting ‘‘DAIRY MARGIN COVERAGE’’;

(B) in subsection (a), by striking ‘‘the margin protection program to receive margin protection payments’’ and inserting ‘‘dairy margin coverage to receive dairy margin coverage payments’’; and

(C) in subsections (b) and (c), by striking ‘‘the margin protection program’’ each place it appears and inserting ‘‘dairy margin coverage’’. (6) PRODUCTION HISTORY.—Section 1405 of the Agricultural

Act of 2014 (7 U.S.C. 9055) is amended in subsections (a)(1) and (c) by striking ‘‘the margin protection program’’ each place it appears and inserting ‘‘dairy margin coverage’’.

(7) PAYMENTS.—Section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056) is amended—

(A) in the section heading, by striking ‘‘MARGIN PROTECTION’’ and inserting ‘‘DAIRY MARGIN COVERAGE’’;

(B) by striking ‘‘margin protection’’ each place it appears and inserting ‘‘dairy margin coverage’’; and

(C) in the heading of subsection (c), by striking ‘‘MARGIN PROTECTION’’. (8) PREMIUMS.—Section 1407 of the Agricultural Act of

2014 (7 U.S.C. 9057) is amended— (A) in the section heading, by striking ‘‘MARGIN

PROTECTION PROGRAM’’ and inserting ‘‘DAIRY MARGIN COVERAGE’’;

(B) in subsection (a), in the matter preceding paragraph (1), by striking ‘‘the margin protection program’’ and inserting ‘‘dairy margin coverage’’;

(C) in subsection (d), by striking ‘‘program’’ and inserting ‘‘dairy margin coverage’’; and

(D) in subsection (e)— (i) by striking ‘‘the margin protection program’’

both places it appears and inserting ‘‘dairy margin coverage’’; and

(ii) in paragraph (2), by striking ‘‘integrity of the program’’ and inserting ‘‘integrity of dairy margin cov- erage’’.

(9) FAILURE TO PAY ADMINISTRATIVE FEES OR PREMIUMS.— Section 1408 of the Agricultural Act of 2014 (7 U.S.C. 9058) is amended—

(A) in subsection (a)(2), by striking ‘‘margin protection’’ and inserting ‘‘dairy margin coverage’’; and

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132 STAT. 4518 PUBLIC LAW 115–334—DEC. 20, 2018

(B) in subsection (b), by striking ‘‘the margin protection program’’ and inserting ‘‘dairy margin coverage’’. (10) ADMINISTRATION AND ENFORCEMENT.—Section 1410 of

the Agricultural Act of 2014 (7 U.S.C. 9060) is amended— (A) in subsections (a) and (c), by striking ‘‘the margin

protection program’’ each place it appears and inserting ‘‘dairy margin coverage’’; and

(B) in subsection (b), by striking ‘‘margin protection’’ and inserting ‘‘dairy margin coverage’’.

(l) DURATION.—Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended—

(1) by striking ‘‘The margin protection program’’ and inserting ‘‘Dairy margin coverage’’; and

(2) by striking ‘‘2018’’ and inserting ‘‘2023’’. (m) EFFECTIVE DATE.—The amendments made by this section

shall take effect on January 1, 2019. SEC. 1402. REAUTHORIZATIONS.

(a) FORWARD PRICING.—Section 1502(e) of the Food, Conserva- tion, and Energy Act of 2008 (7 U.S.C. 8772(e)) is amended—

(1) in paragraph (1), by striking ‘‘2018’’ and inserting ‘‘2023’’; and

(2) in paragraph (2), by striking ‘‘2021’’ and inserting ‘‘2026’’. (b) INDEMNITY PROGRAM.—Section 3 of Public Law 90–484 (7

U.S.C. 4553) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. (c) PROMOTION AND RESEARCH.—Section 113(e)(2) of the Dairy

Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 1403. CLASS I SKIM MILK PRICE.

(a) CLASS I SKIM MILK PRICE.—Section 8c(5)(A) of the Agricul- tural Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amend- ments by the Agricultural Marketing Agreement Act of 1937, is amended by striking ‘‘Throughout’’ in the third sentence and all that follows through the period at the end of the fourth sentence and inserting ‘‘Throughout the 2-year period beginning on the effec- tive date of this sentence (and subsequent to such 2-year period unless modified by amendment to the order involved), for purposes of determining prices for milk of the highest use classification, the Class I skim milk price per hundredweight specified in section 1000.50(b) of title 7, Code of Federal Regulations (or successor regulations), shall be the sum of the adjusted Class I differential specified in section 1000.52 of such title 7 (or successor regulations), plus the adjustment to Class I prices specified in sections 1005.51(b), 1006.51(b), and 1007.51(b) of such title 7 (or successor regulations), plus the simple average of the advanced pricing factors computed in sections 1000.50(q)(1) and 1000.50(q)(2) of such title 7 (or suc- cessor regulations), plus $0.74.’’.

(b) EFFECTIVE DATE AND IMPLEMENTATION.— (1) EFFECTIVE DATE.—The amendment made by subsection

(a) shall take effect on the first day of the first month beginning more than 120 days after the date of enactment of this Act.

(2) IMPLEMENTATION.—Implementation of the amendment made by subsection (a) shall not be subject to any of the following:

(A) The notice and comment provisions of section 553 of title 5, United States Code.

7 USC 608c note.

7 USC 9051 note.

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132 STAT. 4519PUBLIC LAW 115–334—DEC. 20, 2018

(B) The notice and hearing requirements of section 8c(3) of the Agricultural Adjustment Act (7 U.S.C. 608c(3)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.

(C) The order amendment requirements of section 8c(17) of that Act (7 U.S.C. 608c(17)).

(D) A referendum under section 8c(19) of that Act (7 U.S.C. 608c(19)).

SEC. 1404. DAIRY PRODUCT DONATION.

(a) REPEAL OF DAIRY PRODUCT DONATION PROGRAM.—Section 1431 of the Agricultural Act of 2014 (7 U.S.C. 9071) is repealed.

(b) MILK DONATION PROGRAM.— (1) IN GENERAL.—Part III of subtitle D of title I of the

Agricultural Act of 2014 (Public Law 113–79; 128 Stat. 695) is amended to read as follows:

‘‘PART III—MILK DONATION PROGRAM

‘‘SEC. 1431. MILK DONATION PROGRAM.

‘‘(a) DEFINITIONS.—In this section: ‘‘(1) ELIGIBLE DAIRY ORGANIZATION.—The term ‘eligible

dairy organization’ means a dairy farmer (either individually or as part of a cooperative), or a dairy processor, who—

‘‘(A) accounts to a Federal milk marketing order marketwide pool; and

‘‘(B) incurs qualified expenses under subsection (e). ‘‘(2) ELIGIBLE DISTRIBUTOR.—The term ‘eligible distributor’

means a public or private nonprofit organization that distrib- utes donated eligible milk.

‘‘(3) ELIGIBLE MILK.—The term ‘eligible milk’ means Class I fluid milk products produced and processed in the United States.

‘‘(4) ELIGIBLE PARTNERSHIP.—The term ‘eligible partnership’ means a partnership between an eligible dairy organization and an eligible distributor.

‘‘(5) PARTICIPATING PARTNERSHIP.—The term ‘participating partnership’ means an eligible partnership for which the Sec- retary has approved a donation and distribution plan for eligible milk under subsection (c)(2). ‘‘(b) PROGRAM REQUIRED; PURPOSES.—Not later than 180 days

after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall establish and administer a milk dona- tion program for the purposes of—

‘‘(1) encouraging the donation of eligible milk; ‘‘(2) providing nutrition assistance to individuals in low-

income groups; and ‘‘(3) reducing food waste.

‘‘(c) DONATION AND DISTRIBUTION PLANS.— ‘‘(1) IN GENERAL.—To be eligible to receive reimbursement

under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that—

‘‘(A) describes the process that the eligible partnership will use for the donation, processing, transportation, tem- porary storage, and distribution of eligible milk;

7 USC 9071.

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132 STAT. 4520 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(B) includes an estimate of the quantity of eligible milk that the eligible partnership will donate each year, based on—

‘‘(i) preplanned donations; and ‘‘(ii) contingency plans to address unanticipated

donations; and ‘‘(C) describes the rate at which the eligible partnership

will be reimbursed, which shall be based on a percentage of the limitation described in subsection (e)(2), not to exceed 100 percent. ‘‘(2) REVIEW AND APPROVAL.—Not less frequently than

annually, the Secretary shall— ‘‘(A) review donation and distribution plans submitted

under paragraph (1); and ‘‘(B) determine whether to approve or disapprove each

of those donation and distribution plans. ‘‘(d) REIMBURSEMENT.—

‘‘(1) IN GENERAL.—On receipt of appropriate documentation under paragraph (2), the Secretary shall reimburse an eligible dairy organization that is a member of a participating partner- ship on a regular basis for qualified expenses described in subsection (e).

‘‘(2) DOCUMENTATION.— ‘‘(A) IN GENERAL.—An eligible dairy organization shall

submit to the Secretary such documentation as the Sec- retary may require to demonstrate the qualified expenses described in subsection (e) of the eligible dairy organization.

‘‘(B) VERIFICATION.—The Secretary may verify the accuracy of documentation submitted under subparagraph (A) by spot checks and audits. ‘‘(3) RETROACTIVE REIMBURSEMENT.—In providing

reimbursements under paragraph (1), the Secretary may pro- vide reimbursements for qualified expenses incurred before the date on which the donation and distribution plan for the applicable participating partnership was approved by the Sec- retary. ‘‘(e) QUALIFIED EXPENSES.—

‘‘(1) IN GENERAL.—The amount of a reimbursement under subsection (d) shall be an amount equal to the product of—

‘‘(A) the quantity of eligible milk donated by the eligible dairy organization under a donation and distribution plan approved by the Secretary under subsection (c); and

‘‘(B) subject to the limitation under paragraph (2), the rate described in that donation and distribution plan under subsection (c)(1)(C). ‘‘(2) LIMITATION.—Expenses eligible for reimbursement

under subsection (d) shall not exceed the value that an eligible dairy organization incurred by accounting to the Federal milk marketing order pool at the difference in the Class I milk value and the lowest classified price for the applicable month (either Class III milk or Class IV milk). ‘‘(f) PREAPPROVAL.—

‘‘(1) IN GENERAL.—The Secretary shall— ‘‘(A) establish a process for an eligible partnership

to apply for preapproval of donation and distribution plans under subsection (c); and

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132 STAT. 4521PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(B) not less frequently than annually, preapprove an amount for qualified expenses described in subsection (e) that the Secretary will allocate for reimbursement under each donation and distribution plan preapproved under subparagraph (A), based on an assessment of—

‘‘(i) the feasibility of the plan; and ‘‘(ii) the extent to which the plan advances the

purposes described in subsection (b). ‘‘(2) PREFERENCE.—In preapproving amounts for reimburse-

ment under paragraph (1)(B), the Secretary shall give pref- erence to eligible partnerships that will provide funding and in-kind contributions in addition to the reimbursements.

‘‘(3) ADJUSTMENTS.— ‘‘(A) IN GENERAL.—The Secretary shall adjust or

increase amounts preapproved for reimbursement under paragraph (1)(B) based on performance and demand.

‘‘(B) REQUESTS FOR INCREASE.— ‘‘(i) IN GENERAL.—The Secretary shall establish a

procedure for a participating partnership to request an increase in the amount preapproved for reimburse- ment under paragraph (1)(B) based on changes in conditions.

‘‘(ii) INTERIM APPROVAL; INCREMENTAL INCREASE.— The Secretary may provide an interim approval of an increase requested under clause (i) and an incremental increase in the amount of reimbursement to the applicable participating partnership to allow time for the Secretary to review the request without interfering with the donation and distribution of eligible milk by the participating partnership.

‘‘(g) PROHIBITION ON RESALE OF PRODUCTS.— ‘‘(1) IN GENERAL.—An eligible distributor that receives

eligible milk donated under this section may not sell the prod- ucts back into commercial markets.

‘‘(2) PROHIBITION ON FUTURE PARTICIPATION.—An eligible distributor that the Secretary determines has violated para- graph (1) shall not be eligible for any future participation in the program established under this section. ‘‘(h) ADMINISTRATION.—The Secretary shall publicize opportuni-

ties to participate in the program established under this section. ‘‘(i) REVIEWS.—The Secretary shall conduct appropriate reviews

or audits to ensure the integrity of the program established under this section.

‘‘(j) FUNDING.—Of the funds of the Commodity Credit Corpora- tion, the Secretary shall use to carry out this section $9,000,000 for fiscal year 2019, and $5,000,000 for each fiscal year thereafter, to remain available until expended.’’.

(2) CONFORMING AMENDMENT.—Section 1401 of the Agricul- tural Act of 2014 (7 U.S.C. 9051) is amended, in the matter preceding paragraph (1), by striking ‘‘and part III’’.

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132 STAT. 4522 PUBLIC LAW 115–334—DEC. 20, 2018

Subtitle E—Supplemental Agricultural Disaster Assistance

SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

(a) MEMBERS OF INDIAN TRIBES.—Section 1501(a)(1)(B) of the Agricultural Act of 2014 (7 U.S.C. 9081(a)(1)(B)) is amended—

(1) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and

(2) by inserting after clause (ii) the following: ‘‘(iii) an Indian tribe or tribal organization (as those

terms are defined in section 4 of the Indian Self-Deter- mination and Education Assistance Act (25 U.S.C. 5304));’’.

(b) COVERED LIVESTOCK LOSSES FOR LIVESTOCK INDEMNITY PAY- MENTS.—Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended—

(1) in paragraph (1)— (A) by striking ‘‘or’’ at the end of subparagraph (A); (B) in subparagraph (B), by striking ‘‘cold.’’ and

inserting ‘‘cold, on the condition that in the case of the death loss of unweaned livestock due to that adverse weather, the Secretary may disregard any management practice, vaccination protocol, or lack of vaccination by the eligible producer on a farm; or’’; and

(C) by adding at the end the following new subpara- graph:

‘‘(C) disease that, as determined by the Secretary— ‘‘(i) is caused or transmitted by a vector; and ‘‘(ii) is not susceptible to control by vaccination

or acceptable management practices.’’; and (2) in paragraph (4), by striking ‘‘A payment’’ and inserting

‘‘PAYMENT REDUCTIONS.—A payment’’. (c) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND

FARM-RAISED FISH.— (1) IN GENERAL.—Section 1501(d)(2) of the Agricultural Act

of 2014 (7 U.S.C. 9081(d)(2)) is amended by inserting ‘‘, including inspections of cattle tick fever’’ before the period at the end.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to inspections of cattle tick fever conducted on or after the date of enactment of this Act. (d) TREE ASSISTANCE PROGRAM.—Section 1501(e) of the Agricul-

tural Act of 2014 (7 U.S.C. 9081(e)) is amended— (1) in paragraph (3), in the matter preceding subparagraph

(A), by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4) and (5)’’; and

(2) by adding at the end the following: ‘‘(5) PAYMENT RATE FOR BEGINNING AND VETERAN PRO-

DUCERS.—Subject to paragraph (4), in the case of a beginning farmer or rancher or a veteran farmer or rancher (as those terms are defined in subsection (a) of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) that is eligible to receive assistance under this subsection, the Secretary shall provide reimbursement of 75 percent of the costs under subparagraphs (A)(i) and (B) of paragraph (3).’’.

7 USC 9081 note.

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132 STAT. 4523PUBLIC LAW 115–334—DEC. 20, 2018

(e) PAYMENT LIMITATION.—Section 1501(f)(2) of the Agricultural Act of 2014 (7 U.S.C. 9081(f)(2)) is amended by striking ‘‘this section (excluding payments received under subsections (b) and (e))’’ and inserting ‘‘subsection (c)’’.

Subtitle F—Noninsured Crop Assistance

SEC. 1601. NONINSURED CROP ASSISTANCE PROGRAM.

Section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) is amended—

(1) in subsection (a)— (A) in paragraph (1), by adding at the end the following: ‘‘(C) DATA COLLECTION AND SHARING.—The Secretary

shall coordinate with the Administrator of the Risk Management Agency on the type and format of data received under the noninsured crop disaster assistance pro- gram that—

‘‘(i) best facilitates the use of that data in devel- oping policies or plans of insurance offered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and

‘‘(ii) ensures the availability of that data on a regular basis. ‘‘(D) COORDINATION.—The Secretary shall coordinate

between the agencies of the Department that provide pro- grams or services to farmers and ranchers that are poten- tially eligible for the noninsured crop disaster assistance program under this section—

‘‘(i) to make available coverage under— ‘‘(I) the fee waiver under subsection (k)(2); or ‘‘(II) the premium discount under subsection

(l)(3); and ‘‘(ii) to share eligibility information to reduce

paperwork and avoid duplication.’’; (B) in paragraph (2), by striking subparagraph (A)

and inserting the following: ‘‘(A) IN GENERAL.—Subject to subparagraph (B), in this

section, the term ‘eligible crop’ means each commercial crop or other agricultural commodity that is produced for food or fiber (except livestock) for which catastrophic risk protection under subsection (b) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) and additional coverage under subsections (c) and (h) of such section are not avail- able or, if such coverage is available, it is only available under a policy that provides coverage for specific intervals based on weather indexes or under a whole farm plan of insurance.’’; and

(C) in paragraph (4)(B)— (i) by striking clause (i) and inserting the following: ‘‘(i) IN GENERAL.—

‘‘(I) AGRICULTURAL ACT OF 2014.—During the first 4 crop years of planting, as determined by the Secretary, native sod acreage that has been tilled for the production of an annual crop during the period beginning on February 8, 2014, and ending on the date of enactment of the Agriculture

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132 STAT. 4524 PUBLIC LAW 115–334—DEC. 20, 2018

Improvement Act of 2018 shall be subject to a reduction in benefits under this section as described in this subparagraph.

‘‘(II) SUBSEQUENT YEARS.—Native sod acreage that has been tilled for the production of an eligible crop after the date of enactment of the Agriculture Improvement Act of 2018 shall be subject to a reduction in benefits under this section as described in this subparagraph for not more than any 4 crop years—

‘‘(aa) during the first 10 crop years after the initial tillage; and

‘‘(bb) during which a crop on that acreage is enrolled under subsection (l)(2) or (k).’’; and

(ii) in clause (iii)(I), by striking ‘‘transitional yield of the producer’’ and inserting ‘‘county expected yield’’;

(2) in subsection (b)— (A) in paragraph (1), by striking ‘‘not later than 30

days’’ and inserting ‘‘by an appropriate deadline’’; and (B) by adding at the end the following:

‘‘(4) STREAMLINED SUBMISSION PROCESS.—The Secretary shall establish a streamlined process for the submission of records and acreage reports under paragraphs (2) and (3) for diverse production systems such as those typical of urban production systems, other small-scale production systems, and direct-to-consumer production systems.’’;

(3) in subsection (d)— (A) by redesignating paragraphs (1), (2), and (3) as

paragraphs (2), (3), and (4), respectively; (B) by inserting before paragraph (2) (as so redesig-

nated) the following: ‘‘(1) the producer’s share of the total acres devoted to the

eligible crop; by’’; and (C) in paragraph (2) (as so redesignated), by striking

‘‘established yield for the crop’’ and inserting ‘‘approved yield for the crop, as determined by the Secretary’’; (4) in subsection (e)—

(A) in paragraph (1), by striking ‘‘farm’’ and inserting ‘‘approved’’;

(B) in paragraph (2)— (i) in the second sentence—

(I) by inserting ‘‘approved’’ before ‘‘yield’’; and (II) by striking ‘‘Subject’’ and inserting the

following: ‘‘(B) CALCULATION.—Subject’’; and

(ii) in the matter preceding subparagraph (B) (as so designated)—

(I) by striking ‘‘yield coverage’’ and inserting ‘‘an approved yield’’; and

(II) by striking ‘‘The Secretary’’ and inserting the following:

‘‘(A) IN GENERAL.—The Secretary’’; and (C) in paragraph (3), by striking ‘‘transitional yield

of the producer’’ and inserting ‘‘county expected yield’’; (5) in subsection (i)(2), by striking ‘‘exceed $125,000’’ and

inserting the following: ‘‘exceed—

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132 STAT. 4525PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) in the case of catastrophic coverage under sub- section (c), $125,000; and

‘‘(B) in the case of additional coverage under subsection (l), $300,000’’; (6) in subsection (k)(1)—

(A) in subparagraph (A), by striking ‘‘$250’’ and inserting ‘‘$325’’; and

(B) in subparagraph (B)— (i) by striking ‘‘$750’’ and inserting ‘‘$825’’; and (ii) by striking ‘‘$1,875’’ and inserting ‘‘$1,950’’;

and (7) in subsection (l)—

(A) in paragraph (1)— (i) by redesignating subparagraphs (A), (B), and

(C) as subparagraphs (B), (C), and (D), respectively; (ii) by inserting before subparagraph (B) (as so

redesignated) the following: ‘‘(A) the producer’s share of the total acres devoted

to the crop;’’; and (iii) in subparagraph (C) (as so redesignated), by

inserting ‘‘, contract price, or other premium price (such as a local, organic, or direct market price, as elected by the producer)’’ after ‘‘price’’; (B) in paragraph (2)(B)(i)—

(i) in subclause (IV), by striking ‘‘and’’ at the end; (ii) in subclause (V), by striking ‘‘or’’ at the end

and inserting ‘‘and’’; and (iii) by adding at the end the following:

‘‘(VI) the producer’s share of the crop; or’’; (C) by striking paragraphs (3) and (5); and (D) by redesignating paragraph (4) as paragraph (3).

Subtitle G—Administration

SEC. 1701. REGULATIONS.

Section 1601(c)(2) of the Agricultural Act of 2014 (7 U.S.C. 9091(c)(2)) is amended—

(1) in the matter preceding subparagraph (A), by striking ‘‘title and sections 11003 and 11017’’ and inserting ‘‘title, sec- tions 11003 and 11017, title I of the Agriculture Improvement Act of 2018 and the amendments made by that title, and section 10109 of that Act’’;

(2) in subparagraph (A), by adding ‘‘and’’ at the end; (3) in subparagraph (B), by striking ‘‘; and’’ and inserting

a period; and (4) by striking subparagraph (C).

SEC. 1702. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

Section 1602 of the Agricultural Act of 2014 (7 U.S.C. 9092) is amended by striking ‘‘2018’’ each place it appears and inserting ‘‘2023’’. SEC. 1703. PAYMENT LIMITATIONS.

(a) IN GENERAL.—Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(1) in subsection (a)—

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132 STAT. 4526 PUBLIC LAW 115–334—DEC. 20, 2018

(A) in paragraph (1), by striking ‘‘section 1001 of the Food, Conservation, and Energy Act of 2008’’ and inserting ‘‘section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011)’’; and

(B) in paragraph (2), by inserting ‘‘first cousin, niece, nephew,’’ after ‘‘sibling,’’; (2) in subsections (b) and (c), by striking ‘‘and as marketing

loan gains or loan deficiency payments under subtitle B of title I of the Agricultural Act of 2014’’ each place it appears and inserting ‘‘of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017)’’; and

(3) in subsection (f), by adding at the end the following: ‘‘(9) ADMINISTRATION OF REDUCTION.—The Secretary shall

apply any order described in section 1614(d)(1) of the Agricul- tural Act of 2014 (7 U.S.C. 9097(d)(1)) to payments under sections 1116 and 1117 of that Act (7 U.S.C. 9016, 9017) prior to applying payment limitations under this section.’’. (b) APPLICATION.—The amendments made by this section shall

apply beginning with the 2019 crop year.

SEC. 1704. ADJUSTED GROSS INCOME LIMITATIONS.

(a) WAIVER.—Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—

(1) in paragraph (2)(C), by inserting ‘‘title II of the Agri- culture Improvement Act of 2018,’’ after ‘‘under’’; and

(2) by adding at the end the following: ‘‘(3) WAIVER.—The Secretary may waive the limitation

established by paragraph (1) with respect to a payment pursu- ant to a covered benefit described in paragraph (2)(C), on a case-by-case basis, if the Secretary determines that environ- mentally sensitive land of special significance would be pro- tected as a result of such waiver.’’. (b) CONFORMING AMENDMENT.—Section 1001D(b)(1) of the Food

Security Act of 1985 (7 U.S.C. 1308–3a(b)(1)) is amended by inserting ‘‘subject to paragraph (3),’’ after ‘‘of law,’’.

(c) TRANSITION.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day before the date of enactment of this Act, shall apply with respect to the 2018 crop, fiscal, or program year, as appropriate, for each program described in subsection (b)(2) of that section (as so in effect on that day).

SEC. 1705. FARM SERVICE AGENCY ACCOUNTABILITY.

(a) IN GENERAL.—Not later than 1 year after the date of enact- ment of this Act, the Secretary shall establish policies, procedures, and plans to improve program accountability and integrity through targeted and coordinated activities, including utilizing data mining to identify and reduce errors, waste, fraud, and abuse in programs administered by the Farm Service Agency.

(b) REPORT.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the progress and results of the activities conducted under subsection (a).

7 USC 6932 note.

7 USC 1308–3a note.

7 USC 1308 note.

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132 STAT. 4527PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 1706. IMPLEMENTATION.

(a) MAINTENANCE OF BASE ACRES AND PAYMENT YIELDS.—Sec- tion 1614(a) of the Agricultural Act of 2014 (7 U.S.C. 9097(a)) is amended by inserting ‘‘, and as adjusted pursuant to sections 1112 and 1113’’ before the period at the end.

(b) STREAMLINING.—Section 1614 of the Agricultural Act of 2014 (7 U.S.C. 9097) is amended by striking subsection (b) and inserting the following:

‘‘(b) STREAMLINING.—In implementing this title and the amend- ments made by this title, the Secretary shall—

‘‘(1) continue to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements, to ensure that—

‘‘(A) a producer (or an agent of a producer) may report information, electronically (including geospatial data) or conventionally, to the Department of Agriculture, subject to the Secretary—

‘‘(i) establishing reasonable levels of tolerance that reflect the differences in accuracy between measures of common land units and geospatial data; and

‘‘(ii) ensuring that discrepancies that occur within the levels of tolerance established under clause (i) shall not be used to penalize a producer (or an agent of a producer) under any program administered by the Department of Agriculture; ‘‘(B) on the request of a producer (or an agent of

a producer), the Department of Agriculture electronically shares with the producer (or agent) in real time and with- out cost to the producer (or agent) the common land unit data, related farm level data, conservation practices, and other information of the producer through a single Depart- ment of Agriculture-wide login;

‘‘(C) not later than September 30, 2020, the Adminis- trator of the Risk Management Agency and the Adminis- trator of the Farm Service Agency shall implement a con- sistent method for determining crop acreage, acreage yields, farm acreage, property descriptions, and other common informational requirements, including measures of common land units;

‘‘(D) except in the case of misrepresentation, fraud, or scheme and device, no crop insurance agent, approved insurance provider, or employee or contractor of a crop insurance agency or approved insurance provider bears responsibility or liability under the Acreage Crop Reporting and Streamlining Initiative (or any successor or similar initiative) for the eligibility of a producer for a program administered by the Department of Agriculture, not including a policy or plan of insurance offered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and

‘‘(E) on request of a crop insurance agent or approved insurance provider required to deliver policies and plans of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) the crop insurance agent or approved insurance provider receives, in a timely manner, any information held by the Farm Service Agency that is nec- essary to ensure effective crop insurance coverage for farmer customers;

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132 STAT. 4528 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(2) continue to improve coordination, information sharing, and administrative work among the Farm Service Agency, Risk Management Agency, Natural Resources Conservation Service, and other agencies, as determined by the Secretary;

‘‘(3) continue to take advantage of new technologies to enhance the efficiency and effectiveness of the delivery of Department of Agriculture programs to producers, including by developing and making publicly available data standards and security procedures to allow third-party providers to develop applications that use or feed data (including geospatial and precision agriculture data) into the datasets and analyses of the Department of Agriculture; and

‘‘(4) reduce administrative burdens on producers partici- pating in price loss coverage or agriculture risk coverage by offering—

‘‘(A) those producers an option to remotely and elec- tronically sign annual contracts for that coverage; and

‘‘(B) to the maximum extent practicable, an option to sign a multiyear contract for that coverage.’’.

(c) IMPLEMENTATION.—Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following:

‘‘(4) AGRICULTURE IMPROVEMENT ACT OF 2018.—The Sec- retary shall make available to the Farm Service Agency to carry out title I of the Agriculture Improvement Act of 2018 and the amendments made by that title $15,500,000.’’. (d) LOAN IMPLEMENTATION.—Section 1614(d)(1) of the Agricul-

tural Act of 2014 (7 U.S.C. 9097(d)(1)) is amended by striking ‘‘under subtitles’’ and all that follows through ‘‘except’’ and inserting ‘‘under subtitle B or C, under the amendments made by subtitle B or C, or under the amendments made by subtitle B or C of the Agriculture Improvement Act of 2018, except’’.

(e) DEOBLIGATION OF UNLIQUIDATED OBLIGATIONS.—Section 1614 of the Agricultural Act of 2014 (7 U.S.C. 9097) is amended by adding at the end the following:

‘‘(e) DEOBLIGATION OF UNLIQUIDATED OBLIGATIONS.— ‘‘(1) IN GENERAL.—Subject to paragraph (3), any payment

obligated or otherwise made available by the Secretary under this title on or after the date of enactment of the Agriculture Improvement Act of 2018 that is not disbursed to the recipient by the date that is 5 years after the date on which the payment is obligated or otherwise made available shall—

‘‘(A) be deobligated; and ‘‘(B) revert to the Treasury.

‘‘(2) OUTSTANDING PAYMENTS.— ‘‘(A) IN GENERAL.—Subject to paragraph (3), any pay-

ment obligated or otherwise made available by the Farm Service Agency (or any predecessor agency of the Depart- ment of Agriculture) under the laws described in subpara- graph (B) before the date of enactment of the Agriculture Improvement Act of 2018, that is not disbursed by the date that is 5 years after the date on which the payment is obligated or otherwise made available shall—

‘‘(i) be deobligated; and ‘‘(ii) revert to the Treasury.

‘‘(B) LAWS DESCRIBED.—The laws referred to in subparagraph (A) are any of the following:

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132 STAT. 4529PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(i) This title. ‘‘(ii) Title I of the Food, Conservation, and Energy

Act of 2008 (7 U.S.C. 8702 et seq.). ‘‘(iii) Title I of the Farm Security and Rural Invest-

ment Act of 2002 (7 U.S.C. 7901 et seq.). ‘‘(iv) The Agricultural Market Transition Act (7

U.S.C. 7201 et seq.). ‘‘(v) Titles I through XI of the Food, Agriculture,

Conservation, and Trade Act of 1990 (Public Law 101– 624; 104 Stat. 3374) and the amendments made by those titles.

‘‘(vi) Titles I through X of the Food Security Act of 1985 (Public Law 99–198; 99 Stat. 1362) and the amendments made by those titles.

‘‘(vii) Titles I through XI of the Agriculture and Food Act of 1981 (Public Law 97–98; 95 Stat. 1218) and the amendments made by those titles.

‘‘(viii) Titles I through X of the Food and Agri- culture Act of 1977 (Public Law 95–113; 91 Stat. 917) and the amendments made by those titles.

‘‘(3) WAIVER.—The Secretary may delay the date of the deobligation and reversion under paragraph (1) or (2) of any payment—

‘‘(A) that is the subject of— ‘‘(i) ongoing administrative review or appeal; ‘‘(ii) litigation; or ‘‘(iii) the settlement of an estate; or

‘‘(B) for which the Secretary otherwise determines that the circumstances are such that the delay is equitable.’’.

(f) REPORT.—Section 1614 of the Agricultural Act of 2014 (7 U.S.C. 9097) (as amended by subsection (e)) is amended by adding at the end the following:

‘‘(f) REPORT.—Not later than January 1, 2020, and each January 1 thereafter through January 1, 2023, 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 describes the tilled native sod acreage that was subject to a reduction in benefits under section 196(a)(4)(B) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)(4)(B) and section 508(o)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(o)(2))—

‘‘(1) as of the date of submission of the report; and ‘‘(2) by State and county, relative to the total acres of

cropland in the State or county.’’.

SEC. 1707. EXEMPTION FROM CERTAIN REPORTING REQUIREMENTS FOR CERTAIN PRODUCERS.

(a) DEFINITION OF EXEMPTED PRODUCER.—In this section, the term ‘‘exempted producer’’ means an individual or entity that is eligible to participate in—

(1) a conservation program under title II or a law amended by title II;

(2) an indemnity or disease control program under the Animal Health Protection Act (7 U.S.C. 8301 et seq.) or the Plant Protection Act (7 U.S.C. 7701 et seq.); or

(3) a commodity program under title I of the Agricultural Act of 2014 (7 U.S.C. 9011 et seq.), excluding the assistance

31 USC 6101 note.

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132 STAT. 4530 PUBLIC LAW 115–334—DEC. 20, 2018

provided to users of cotton under sections 1207(c) and 1208 of that Act (7 U.S.C. 9037(c), 9038). (b) EXEMPTION.—Notwithstanding the Federal Funding

Accountability and Transparency Act of 2006 (Public Law 109– 282; 31 U.S.C. 6101 note), the requirements of parts 25 and 170 of title 2, Code of Federal Regulations (or successor regulations), shall not apply with respect to assistance received by an exempted producer from the Secretary, acting through the Chief of the Natural Resources Conservation Service, the Administrator of the Animal and Plant Health Inspection Service, or the Administrator of the Farm Service Agency.

TITLE II—CONSERVATION

Subtitle A—Wetland Conservation

SEC. 2101. WETLAND CONVERSION.

Section 1221(d) of the Food Security Act of 1985 (16 U.S.C. 3821(d)) is amended—

(1) by striking ‘‘Except as’’ and inserting the following: ‘‘(1) IN GENERAL.—Except as’’; and (2) by adding at the end the following: ‘‘(2) DUTY OF THE SECRETARY.—No person shall become

ineligible under paragraph (1) if the Secretary determines that an exemption under section 1222(b) applies to that person.’’.

SEC. 2102. WETLAND CONSERVATION.

Section 1222(c) of the Food Security Act of 1985 (16 U.S.C. 3822(c)) is amended—

(1) by striking ‘‘No program’’ and inserting the following: ‘‘(1) IN GENERAL.—No program’’; (2) in paragraph (1) (as so designated), by inserting ‘‘,

which, except as provided in paragraph (2), shall be conducted in the presence of the affected person’’ before the period at the end; and

(3) by adding at the end the following: ‘‘(2) EXCEPTION.—The Secretary may conduct an on-site

visit under paragraph (1) without the affected person present if the Secretary has made a reasonable effort to include the presence of the affected person at the on-site visit.’’.

SEC. 2103. MITIGATION BANKING.

Section 1222(k)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 3822(k)(1)(B)) is amended to read as follows:

‘‘(B) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out this paragraph $5,000,000 for each of fiscal years 2019 through 2023.’’.

Subtitle B—Conservation Reserve Program

SEC. 2201. CONSERVATION RESERVE.

(a) IN GENERAL.—Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

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132 STAT. 4531PUBLIC LAW 115–334—DEC. 20, 2018

(b) ELIGIBLE LAND.—Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended—

(1) in paragraph (1)(B), by striking ‘‘Agricultural Act of 2014 (except for land enrolled in the conservation reserve pro- gram as of that date)’’ and inserting ‘‘Agriculture Improvement Act of 2018, on the condition that the Secretary shall consider to be planted cropland enrolled in the conservation reserve program’’;

(2) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively;

(3) by inserting after paragraph (3) the following: ‘‘(4) cropland, marginal pasture land, and grasslands that

will have a positive impact on water quality and will be devoted to—

‘‘(A) a grass sod waterway; ‘‘(B) a contour grass sod strip; ‘‘(C) a prairie strip; ‘‘(D) a filterstrip; ‘‘(E) a riparian buffer; ‘‘(F) a wetland or a wetland buffer; ‘‘(G) a saturated buffer; ‘‘(H) a bioreactor; or ‘‘(I) another similar water quality practice, as deter-

mined by the Secretary;’’; (4) in paragraph (5) (as so redesignated)—

(A) in subparagraph (C), by striking ‘‘or filterstrips or riparian buffers devoted to trees, shrubs, or grasses’’ and inserting ‘‘salt tolerant vegetation, field borders, or practices to benefit State or federally identified wellhead protection areas’’; and

(B) in subparagraph (E), by striking ‘‘or’’ after the semicolon; (5) in paragraph (6) (as so redesignated), in subparagraph

(B)(ii), by striking the period at the end and inserting ‘‘; or’’; and

(6) by adding at the end the following: ‘‘(7) as determined by the Secretary, land—

‘‘(A) that was enrolled in the conservation reserve pro- gram under a 15-year contract that expired on September 30, 2017, or September 30, 2018;

‘‘(B) for which there was no opportunity for additional enrollment in that program; and

‘‘(C) on which the conservation practice under the expired contract under subparagraph (A) is maintained.’’.

(c) ENROLLMENT.—Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended—

(1) in paragraph (1), by striking subparagraphs (A) through (E) and inserting the following:

‘‘(A) fiscal year 2019, not more than 24,000,000 acres; ‘‘(B) fiscal year 2020, not more than 24,500,000 acres; ‘‘(C) fiscal year 2021, not more than 25,000,000 acres; ‘‘(D) fiscal year 2022, not more than 25,500,000 acres;

and ‘‘(E) fiscal year 2023, not more than 27,000,000 acres.’’;

(2) in paragraph (2)— (A) by striking subparagraphs (A) and (B) and inserting

the following:

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132 STAT. 4532 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) LIMITATION.—For purposes of applying the limita- tions in paragraph (1)—

‘‘(i) the Secretary shall enroll and maintain in the conservation reserve not fewer than 2,000,000 acres of the land described in subsection (b)(3) by September 30, 2023; and

‘‘(ii) in carrying out clause (i), to the maximum extent practicable, the Secretary shall maintain in the conservation reserve at any one time during—

‘‘(I) fiscal year 2019, 1,000,000 acres; ‘‘(II) fiscal year 2020, 1,500,000 acres; and ‘‘(III) fiscal years 2021 through 2023, 2,000,000

acres. ‘‘(B) PRIORITY.—In enrolling acres under subparagraph

(A), the Secretary may give priority to land, as determined by the Secretary—

‘‘(i) with expiring conservation reserve contracts; ‘‘(ii) at risk of conversion or development; or ‘‘(iii) of ecological significance, including land

that— ‘‘(I) may assist in the restoration of threatened

or endangered species under the Endangered Spe- cies Act of 1973 (16 U.S.C. 1531 et seq.);

‘‘(II) may assist in preventing a species from being listed as a threatened or endangered species under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); or

‘‘(III) improves or creates wildlife habitat cor- ridors.’’;

(B) in subparagraph (C)— (i) by striking ‘‘In enrolling’’ and inserting the fol-

lowing: ‘‘(i) IN GENERAL.—In enrolling’’; (ii) in clause (i) (as so designated), by striking

‘‘a continuous’’ and inserting ‘‘an annual’’; and (iii) by adding at the end the following: ‘‘(ii) TIMING OF GRASSLAND RANKING PERIOD.—For

purposes of grasslands described in subsection (b)(3), the Secretary shall announce at least 1 ranking period subsequent to the announcement of general enrollment offers.’’; and (C) by adding at the end the following: ‘‘(D) RESERVATION OF UNENROLLED ACRES.—If the Sec-

retary is unable in a fiscal year to enroll enough acres of land described in subsection (b)(3) to meet the number of acres described in clause (ii) or (iii) of subparagraph (A) for the fiscal year—

‘‘(i) the Secretary shall reserve the remaining number of acres for that fiscal year for the enrollment of land described in subsection (b)(3); and

‘‘(ii) that number of acres shall not be available for the enrollment of any other type of eligible land.’’; and

(3) by adding at the end the following: ‘‘(3) WATER QUALITY PRACTICES TO FOSTER CLEAN LAKES,

ESTUARIES, AND RIVERS (CLEAR INITIATIVE).—

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132 STAT. 4533PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) IN GENERAL.—The Secretary shall give priority within continuous enrollment under paragraph (6) to the enrollment of land described in subsection (b)(4).

‘‘(B) SEDIMENT AND NUTRIENT LOADINGS.—In carrying out subparagraph (A), the Secretary shall give priority to the implementation of practices on land that, if enrolled, will help reduce sediment loadings, nutrient loadings, and harmful algal blooms, as determined by the Secretary.

‘‘(C) ACREAGE.— ‘‘(i) IN GENERAL.—Of the acres maintained in the

conservation reserve in accordance with paragraph (1), to the maximum extent practicable, not less than 40 percent of acres enrolled in the conservation reserve using continuous enrollment under paragraph (6) shall be of land described in subsection (b)(4).

‘‘(ii) LIMITATION.—The acres described in clause (i) shall not include grasslands described in subsection (b)(3). ‘‘(D) REPORT.—The Secretary shall—

‘‘(i) in the monthly publication of the Secretary describing conservation reserve program statistics, include a description of enrollments through the pri- ority under this paragraph; and

‘‘(ii) publish on the website of the Farm Service Agency an annual report describing a summary of, with respect to the enrollment priority under this para- graph—

‘‘(I) new enrollments; ‘‘(II) expirations; ‘‘(III) geographic distribution; and ‘‘(IV) estimated water quality benefits.

‘‘(4) STATE ENROLLMENT RATES.—At the beginning of each of fiscal years 2019 through 2023, to the maximum extent practicable, the Secretary shall allocate to the States propor- tionately 60 percent of the available number of acres each year for enrollment in the conservation reserve, in accordance with historical State enrollment rates, taking into consider- ation—

‘‘(A) the average number of acres of all land enrolled in the conservation reserve in each State during each of fiscal years 2007 through 2016;

‘‘(B) the average number of acres of all land enrolled in the conservation reserve nationally during each of fiscal years 2007 through 2016; and

‘‘(C) the acres available for enrollment during each of fiscal years 2019 through 2023, excluding acres described in paragraph (2). ‘‘(5) FREQUENCY.—In carrying out this subchapter, for con-

tracts that are not available on a continuous enrollment basis, the Secretary shall hold a signup and enrollment not less often than once each year.

‘‘(6) CONTINUOUS ENROLLMENT PROCEDURE.— ‘‘(A) IN GENERAL.—To the maximum extent practicable,

the Secretary shall allow producers to submit applications on a continuous basis for enrollment in—

‘‘(i) the conservation reserve of—

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132 STAT. 4534 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(I) marginal pasture land described in sub- section (b)(2);

‘‘(II) land described in subsection (b)(4); and ‘‘(III) cropland described in subsection (b)(5);

and ‘‘(ii) the conservation reserve enhancement pro-

gram under section 1231A. ‘‘(B) LIMITATION.—For purposes of applying the limita-

tions in paragraph (1)— ‘‘(i) the Secretary shall, to the maximum extent

practicable, enroll and maintain not fewer than 8,600,000 acres of land under subparagraph (A) by September 30, 2023; and

‘‘(ii) in carrying out clause (i), to the maximum extent practicable, the Secretary shall maintain in the conservation reserve at any one time during—

‘‘(I) fiscal year 2019, 8,000,000 acres; ‘‘(II) fiscal year 2020, 8,250,000 acres; ‘‘(III) fiscal year 2021, 8,500,000 acres; and ‘‘(IV) fiscal years 2022 and 2023, 8,600,000

acres.’’. (d) ELIGIBILITY FOR CONSIDERATION.—Section 1231(h) of the

Food Security Act of 1985 (16 U.S.C. 3831(h)) is amended— (1) by striking ‘‘On the expiration’’ and inserting the fol-

lowing: ‘‘(1) IN GENERAL.—On the expiration’’; and (2) by adding at the end the following: ‘‘(2) REENROLLMENT LIMITATION FOR CERTAIN LAND.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), land subject to a contract entered into under this subchapter shall be eligible for only one reenrollment in the conservation reserve under paragraph (1) if the land is devoted to hardwood trees.

‘‘(B) EXCLUSIONS.—Subparagraph (A) shall not apply to—

‘‘(i) riparian forested buffers; ‘‘(ii) forested wetlands enrolled under subsection

(d)(3) or the conservation reserve enhancement pro- gram under section 1231A; and

‘‘(iii) shelterbelts.’’.

SEC. 2202. CONSERVATION RESERVE ENHANCEMENT PROGRAM.

(a) IN GENERAL.—Subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 is amended by inserting after section 1231 (16 U.S.C. 3831) the following:

‘‘SEC. 1231A. CONSERVATION RESERVE ENHANCEMENT PROGRAM.

‘‘(a) DEFINITIONS.—In this section: ‘‘(1) CREP.—The term ‘CREP’ means a conservation reserve

enhancement program carried out under subsection (b)(1). ‘‘(2) ELIGIBLE LAND.—The term ‘eligible land’ means land

that is eligible to be included in the program established under this subchapter.

‘‘(3) ELIGIBLE PARTNER.—The term ‘eligible partner’ means—

‘‘(A) a State; ‘‘(B) a political subdivision of a State;

16 USC 3831a.

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132 STAT. 4535PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(C) an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); or

‘‘(D) a nongovernmental organization. ‘‘(4) MANAGEMENT.—The term ‘management’ means an

activity conducted by an owner or operator under a contract entered into under this subchapter after the establishment of a conservation practice on eligible land, to regularly maintain or enhance the vegetative cover established by the conservation practice—

‘‘(A) throughout the term of the contract; and ‘‘(B) consistent with the conservation plan that covers

the eligible land. ‘‘(b) AGREEMENTS.—

‘‘(1) IN GENERAL.—The Secretary may enter into an agree- ment with an eligible partner to carry out a conservation reserve enhancement program—

‘‘(A) to assist in enrolling eligible land in the program established under this subchapter; and

‘‘(B) that the Secretary determines will advance the purposes of this subchapter. ‘‘(2) CONTENTS.—An agreement entered into under para-

graph (1) shall— ‘‘(A) describe—

‘‘(i) 1 or more specific State or nationally significant conservation concerns to be addressed by the agree- ment;

‘‘(ii) quantifiable environmental goals for addressing the concerns under clause (i);

‘‘(iii) a suitable acreage goal for enrollment of eligible land under the agreement, as determined by the Secretary;

‘‘(iv) the location of eligible land to be enrolled in the project area identified under the agreement;

‘‘(v) the payments to be offered by the Secretary and eligible partner to an owner or operator; and

‘‘(vi) an appropriate list of conservation reserve program conservation practices that are appropriate to meeting the concerns described under clause (i), as determined by the Secretary in consultation with eligible partners; ‘‘(B) subject to subparagraph (C), require the eligible

partner to provide matching funds— ‘‘(i) in an amount determined during a negotiation

between the Secretary and 1 or more eligible partners, if the majority of the matching funds to carry out the agreement are provided by 1 or more eligible part- ners that are not nongovernmental organizations; or

‘‘(ii) in an amount not less than 30 percent of the cost required to carry out the conservation meas- ures and practices described in the agreement, if a majority of the matching funds to carry out the agree- ment are provided by 1 or more nongovernmental organizations; and ‘‘(C) include procedures to allow for a temporary waiver

of the matching requirements under subparagraph (B), or

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132 STAT. 4536 PUBLIC LAW 115–334—DEC. 20, 2018

continued enrollment with a temporary suspension of incen- tives or eligible partner contributions for new agreements, during a period when an eligible partner loses the authority or ability to provide matching contributions, if the Sec- retary determines that the temporary waiver or continued enrollment with a temporary suspension will advance the purposes of this subchapter. ‘‘(3) EFFECT ON EXISTING AGREEMENTS.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), an agreement under this subsection shall not affect, modify, or interfere with existing agreements under this sub- chapter.

‘‘(B) MODIFICATION OF EXISTING AGREEMENTS.—To implement this section, the signatories to an agreement under this subsection may mutually agree to a modification of an agreement entered into before the date of enactment of this section under the Conservation Reserve Enhance- ment Program established by the Secretary under this subchapter.

‘‘(c) PAYMENTS.— ‘‘(1) MATCHING REQUIREMENT.—Funds provided by an

eligible partner may be in cash, in-kind contributions, or tech- nical assistance, as determined by the Secretary.

‘‘(2) MARGINAL PASTURELAND COST-SHARE PAYMENTS.—The Secretary shall ensure that cost-share payments to an owner or operator to install stream fencing, crossings, and alternative water development on marginal pastureland under a CREP reflect the fair market value of the cost of installation.

‘‘(3) COST-SHARE AND PRACTICE INCENTIVE PAYMENTS.— ‘‘(A) IN GENERAL.—On request of an owner or operator,

the Secretary shall provide cost-share payments when a major component of a conservation practice is completed under a CREP, as determined by the Secretary.

‘‘(B) EXEMPTION.—For purposes of implementing con- servation practices on land enrolled under a CREP, the Secretary may waive the contribution limitation described in section 1234(b)(2)(A). ‘‘(4) RIPARIAN BUFFER MANAGEMENT PAYMENTS.—

‘‘(A) IN GENERAL.—In the case of an agreement under subsection (b)(1) that includes riparian buffers as an eligible practice, the Secretary shall make cost-share pay- ments to encourage the regular management of the riparian buffer throughout the term of the agreement, consistent with the conservation plan that covers the eligible land.

‘‘(B) LIMITATION.—The amount of payments received by an owner or operator under subparagraph (A) shall not be greater than 100 percent of the normal and cus- tomary projected management cost, as determined by the Secretary, in consultation with the applicable State tech- nical committee established under section 1261(a).

‘‘(d) FORESTED RIPARIAN BUFFER PRACTICE.— ‘‘(1) FOOD-PRODUCING WOODY PLANTS.—In the case of an

agreement under subsection (b)(1) that includes forested riparian buffers as an eligible practice, the Secretary shall allow an owner or operator—

‘‘(A) to plant food-producing woody plants in the for- ested riparian buffers, on the conditions that—

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132 STAT. 4537PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(i) the plants shall contribute to the conservation of soil, water quality, and wildlife habitat; and

‘‘(ii) the planting shall be consistent with— ‘‘(I) recommendations of the applicable State

technical committee established under section 1261(a); and

‘‘(II) technical guide standards of the applicable field office of the Natural Resources Conservation Service; and

‘‘(B) to harvest from plants described in subparagraph (A), on the conditions that—

‘‘(i) the harvesting shall not damage the conserving cover or otherwise have a negative impact on the con- servation concerns targeted by the CREP;

‘‘(ii) only native plant species appropriate to the region shall be used within 35 feet of the watercourse; and

‘‘(iii) the producer shall be subject to a reduction in the rental rate commensurate to the value of the crop harvested.

‘‘(2) TECHNICAL ASSISTANCE.—For the purpose of enrolling forested riparian buffers in a CREP, the Administrator of the Farm Service Agency shall coordinate with the applicable State forestry agency. ‘‘(e) DROUGHT AND WATER CONSERVATION AGREEMENTS.—In the

case of an agreement under subsection (b)(1) to address regional drought concerns, in accordance with the conservation purposes of the CREP, the Secretary, in consultation with the applicable State technical committee established under section 1261(a), may—

‘‘(1) notwithstanding subsection (a)(2), enroll other agricul- tural land on which the resource concerns identified in the agreement can be addressed if the enrollment of the land is critical to the accomplishment of the purposes of the agreement;

‘‘(2) permit dryland agricultural uses with the adoption of best management practices on enrolled land if the agreement involves the significant long-term reduction of consumptive water use and dryland production is compatible with the agree- ment; and

‘‘(3) calculate annual rental payments consistent with existing administrative practice for similar drought and water conservation agreements under this subtitle and ensure regional consistency in those rates. ‘‘(f) STATUS REPORT.—Not later than 180 days after the end

of each fiscal year, the Secretary shall submit to Congress a report that describes, with respect to each agreement entered into under subsection (b)(1)—

‘‘(1) the status of the agreement; ‘‘(2) the purposes and objectives of the agreement; ‘‘(3) the Federal and eligible partner commitments made

under the agreement; and ‘‘(4) the progress made in fulfilling those commitments.’’.

(b) CONFORMING AMENDMENTS.— (1) Section 1240R(c)(3) of the Food Security Act of 1985

(16 U.S.C. 3839bb–5(c)(3)) is amended by striking ‘‘a special conservation reserve enhancement program described in section 1234(f)(4)’’ and inserting ‘‘a conservation reserve enhancement program under section 1231A’’.

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132 STAT. 4538 PUBLIC LAW 115–334—DEC. 20, 2018

(2) Section 1244(f)(3) of the Food Security Act of 1985 (16 U.S.C. 3844(f)(3)) is amended by striking ‘‘subsection (d)(2)(A)(ii) or (g)(2) of section 1234’’ and inserting ‘‘section 1231A’’.

SEC. 2203. FARMABLE WETLAND PROGRAM.

Section 1231B of the Food Security Act of 1985 (16 U.S.C. 3831b) is amended—

(1) in subsection (a)(1), by striking ‘‘2018’’ and inserting ‘‘2023’’; and

(2) in subsection (f)(2), by striking ‘‘1234(d)(2)(A)(ii)’’ and inserting ‘‘1234(d)’’.

SEC. 2204. PILOT PROGRAMS.

Subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 is amended by inserting after section 1231B (16 U.S.C. 3831b) the following: ‘‘SEC. 1231C. PILOT PROGRAMS.

‘‘(a) CLEAR 30.— ‘‘(1) IN GENERAL.—

‘‘(A) ENROLLMENT.—The Secretary shall establish a pilot program to enroll land in the conservation reserve program through a 30-year conservation reserve contract (referred to in this subsection as a ‘CLEAR 30 contract’) in accordance with this subsection.

‘‘(B) INCLUSION OF ACREAGE LIMITATION.—For purposes of applying the limitations in section 1231(d)(1), the Sec- retary shall include acres of land enrolled under this sub- section. ‘‘(2) EXPIRED CONSERVATION CONTRACT ELECTION.—

‘‘(A) DEFINITION OF COVERED CONTRACT.—In this para- graph, the term ‘covered contract’ means a contract entered into under this subchapter that—

‘‘(i) expires on or after the date of enactment of the Agriculture Improvement Act of 2018; and

‘‘(ii) covers land enrolled in the conservation reserve program under the clean lakes, estuaries, and rivers priority described in section 1231(d)(3) (or the predecessor practices that constitute the priority, as determined by the Secretary). ‘‘(B) ELECTION.—On the expiration of a covered con-

tract, an owner or operator party to the covered contract shall elect—

‘‘(i) not to reenroll the land under the contract; ‘‘(ii) to offer to reenroll the land under the contract

if the land remains eligible under the terms in effect as of the date of expiration; or

‘‘(iii) not to reenroll the land under the contract and to enroll that land through a CLEAR 30 contract under this subsection.

‘‘(3) ELIGIBLE LAND.—Only land that is subject to an expired covered contract shall be eligible for enrollment through a CLEAR 30 contract under this subsection.

‘‘(4) TERM.—The term of a CLEAR 30 contract shall be 30 years.

‘‘(5) AGREEMENTS.—To be eligible to enroll land in the conservation reserve program through a CLEAR 30 contract,

16 USC 3831c.

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132 STAT. 4539PUBLIC LAW 115–334—DEC. 20, 2018

the owner of the land shall enter into an agreement with the Secretary—

‘‘(A) to implement a conservation reserve plan devel- oped for the land;

‘‘(B) to comply with the terms and conditions of the contract and any related agreements; and

‘‘(C) to temporarily suspend the base history for the land covered by the contract. ‘‘(6) TERMS AND CONDITIONS OF CLEAR 30 CONTRACTS.—

‘‘(A) IN GENERAL.—A CLEAR 30 contract shall include terms and conditions that—

‘‘(i) permit— ‘‘(I) repairs, improvements, and inspections on

the land that are necessary to maintain existing public drainage systems; and

‘‘(II) owners to control public access on the land while identifying access routes to be used for restoration activities and management and con- tract monitoring; ‘‘(ii) prohibit—

‘‘(I) the alteration of wildlife habitat and other natural features of the land, unless specifically authorized by the Secretary as part of the con- servation reserve plan;

‘‘(II) the spraying of the land with chemicals or the mowing of the land, except where the spraying or mowing is authorized by the Secretary or is necessary—

‘‘(aa) to comply with Federal or State nox- ious weed control laws;

‘‘(bb) to comply with a Federal or State emergency pest treatment program; or

‘‘(cc) to meet habitat needs of specific wild- life species; ‘‘(III) any activity to be carried out on the

land of the owner or successor that is immediately adjacent to, and functionally related to, the land that is subject to the contract if the activity will alter, degrade, or otherwise diminish the func- tional value of the land; and

‘‘(IV) the adoption of any other practice that would tend to defeat the purposes of the conserva- tion reserve program, as determined by the Sec- retary; and ‘‘(iii) include any additional provision that the Sec-

retary determines is appropriate to carry out this sec- tion or facilitate the practical administration of this section. ‘‘(B) VIOLATION.—On the violation of a term or condi-

tion of a CLEAR 30 contract, the Secretary may require the owner to refund all or part of any payments received by the owner under the conservation reserve program, with interest on the payments, as determined appropriate by the Secretary.

‘‘(C) COMPATIBLE USES.—Land subject to a CLEAR 30 contract may be used for compatible economic uses,

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132 STAT. 4540 PUBLIC LAW 115–334—DEC. 20, 2018

including hunting and fishing, managed timber harvest, or periodic haying or grazing, if the use—

‘‘(i) is specifically permitted by the conservation reserve plan developed for the land; and

‘‘(ii) is consistent with the long-term protection and enhancement of the conservation resources for which the contract was established.

‘‘(7) COMPENSATION.— ‘‘(A) AMOUNT OF PAYMENTS.—The Secretary shall pro-

vide payment under this subsection to an owner of land enrolled through a CLEAR 30 contract using 30 annual payments in an amount equal to the amount that would be used if the land were to be enrolled in the conservation reserve program under section 1231(d)(3).

‘‘(B) FORM OF PAYMENT.—Compensation for a CLEAR 30 contract shall be provided by the Secretary in the form of a cash payment in an amount determined under subpara- graph (A).

‘‘(C) TIMING.—The Secretary shall provide any annual payment obligation under subparagraph (A) as early as practicable in each fiscal year.

‘‘(D) PAYMENTS TO OTHERS.—The Secretary shall make a payment, in accordance with regulations prescribed by the Secretary, in a manner as the Secretary determines is fair and reasonable under the circumstances, if an owner who is entitled to a payment under this section—

‘‘(i) dies; ‘‘(ii) becomes incompetent; ‘‘(iii) is succeeded by another person or entity who

renders or completes the required performance; or ‘‘(iv) is otherwise unable to receive the payment.

‘‘(8) TECHNICAL ASSISTANCE.— ‘‘(A) IN GENERAL.—The Secretary shall assist owners

in complying with the terms and conditions of a CLEAR 30 contract.

‘‘(B) CONTRACTS OR AGREEMENTS.—The Secretary may enter into 1 or more contracts with private entities or agreements with a State, nongovernmental organization, or Indian Tribe to carry out necessary maintenance of a CLEAR 30 contract if the Secretary determines that the contract or agreement will advance the purposes of the conservation reserve program. ‘‘(9) ADMINISTRATION.—

‘‘(A) CONSERVATION RESERVE PLAN.—The Secretary shall develop a conservation reserve plan for any land subject to a CLEAR 30 contract, which shall include prac- tices and activities necessary to maintain, protect, and enhance the conservation value of the enrolled land.

‘‘(B) DELEGATION OF CONTRACT ADMINISTRATION.— ‘‘(i) FEDERAL, STATE, OR LOCAL GOVERNMENT AGEN-

CIES.—The Secretary may delegate any of the manage- ment, monitoring, and enforcement responsibilities of the Secretary under this subsection to other Federal, State, or local government agencies that have the appropriate authority, expertise, and resources nec- essary to carry out those delegated responsibilities.

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132 STAT. 4541PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) CONSERVATION ORGANIZATIONS.—The Sec- retary may delegate any management responsibilities of the Secretary under this subsection to conservation organizations if the Secretary determines the conserva- tion organization has similar expertise and resources.

‘‘(b) SOIL HEALTH AND INCOME PROTECTION PILOT PROGRAM.— ‘‘(1) DEFINITION OF ELIGIBLE LAND.—In this subsection:

‘‘(A) IN GENERAL.—The term ‘eligible land’ means crop- land that—

‘‘(i) is selected by the owner or operator of the land for proposed enrollment in the pilot program under this subsection; and

‘‘(ii) as determined by the Secretary— ‘‘(I) is located within 1 or more States that

are part of the prairie pothole region, as selected by the Secretary based on consultation with State Committees of the Farm Service Agency and State technical committees established under section 1261(a) from that region;

‘‘(II) had a cropping history or was considered to be planted during each of the 3 crop years preceding enrollment; and

‘‘(III) is verified to be less-productive land, as compared to other land on the applicable farm.

‘‘(B) EXCLUSION.—The term ‘eligible land’ does not include any land that was enrolled in a conservation reserve program contract in any of the 3 crop years pre- ceding enrollment in the pilot program under this sub- section. ‘‘(2) ESTABLISHMENT.—

‘‘(A) IN GENERAL.—The Secretary shall establish a vol- untary soil health and income protection pilot program under which eligible land is enrolled through the use of contracts to assist owners and operators of eligible land to conserve and improve the soil, water, and wildlife resources of the eligible land.

‘‘(B) DEADLINE FOR PARTICIPATION.—Eligible land may be enrolled in the program under this section through December 31, 2020. ‘‘(3) CONTRACTS.—

‘‘(A) REQUIREMENTS.—A contract described in para- graph (2) shall—

‘‘(i) be entered into by the Secretary, the owner of the eligible land, and (if applicable) the operator of the eligible land; and

‘‘(ii) provide that, during the term of the contract— ‘‘(I) the lowest practicable cost perennial con-

serving use cover crop for the eligible land, as determined by the applicable State conservationist after considering the advice of the applicable State technical committee, shall be planted on the eligible land;

‘‘(II) except as provided in subparagraph (E), the owner or operator of the eligible land shall pay the cost of planting the conserving use cover crop under subclause (I);

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132 STAT. 4542 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(III) subject to subparagraph (F), the eligible land may be harvested for seed, hayed, or grazed outside the primary nesting season established for the applicable county;

‘‘(IV) the eligible land may be eligible for a walk-in access program of the applicable State, if any; and

‘‘(V) a nonprofit wildlife organization may pro- vide to the owner or operator of the eligible land a payment in exchange for an agreement by the owner or operator not to harvest the conserving use cover.

‘‘(B) PAYMENTS.—Except as provided in subparagraphs (E) and (F)(ii)(II), the annual rental rate for a payment under a contract described in paragraph (2) shall be equal to 50 percent of the average rental rate for the applicable county under section 1234(d), as determined by the Sec- retary.

‘‘(C) LIMITATION ON ENROLLED LAND.—Not more than 15 percent of the eligible land on a farm may be enrolled in the pilot program under this subsection.

‘‘(D) TERM.— ‘‘(i) IN GENERAL.—Except as provided in clause

(ii), each contract described in paragraph (2) shall be for a term of 3, 4, or 5 years, as determined by the parties to the contract.

‘‘(ii) EARLY TERMINATION.— ‘‘(I) SECRETARY.—The Secretary may termi-

nate a contract described in paragraph (2) before the end of the term described in clause (i) if the Secretary determines that the early termination of the contract is necessary.

‘‘(II) OWNERS AND OPERATORS.—An owner and (if applicable) an operator of eligible land enrolled in the pilot program under this subsection may terminate a contract described in paragraph (2) before the end of the term described in clause (i) if the owner and (if applicable) the operator pay to the Secretary an amount equal to the amount of rental payments received under the con- tract.

‘‘(E) BEGINNING, LIMITED RESOURCE, SOCIALLY DIS- ADVANTAGED, OR VETERAN FARMERS AND RANCHERS.—With respect to a beginning, limited resource, socially disadvan- taged, or veteran farmer or rancher, as determined by the Secretary—

‘‘(i) a contract described in paragraph (2) shall provide that, during the term of the contract, of the actual cost of establishment of the conserving use cover crop under subparagraph (A)(ii)(I)—

‘‘(I) using the funds of the Commodity Credit Corporation, the Secretary shall pay 50 percent; and

‘‘(II) the beginning, limited resource, socially disadvantaged, or veteran farmer or rancher shall pay 50 percent; and

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132 STAT. 4543PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) the annual rental rate for a payment under a contract described in paragraph (2) shall be equal to 75 percent of the average rental rate for the applicable county under section 1234(d), as determined by the Secretary. ‘‘(F) HARVESTING, HAYING, AND GRAZING OUTSIDE

APPLICABLE PERIOD.—The harvesting for seed, haying, or grazing of eligible land under subparagraph (A)(ii)(III) out- side of the primary nesting season established for the applicable county shall be subject to the conditions that—

‘‘(i) with respect to eligible land that is so hayed or grazed, adequate stubble height shall be maintained to protect the soil on the eligible land, as determined by the applicable State conservationist after consid- ering the advice of the applicable State technical com- mittee; and

‘‘(ii) with respect to eligible land that is so har- vested for seed—

‘‘(I) the eligible land shall not be eligible to be insured or reinsured under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and

‘‘(II) the rental payment otherwise applicable to the eligible land under this subsection shall be reduced by 25 percent.

‘‘(4) ACREAGE LIMITATION.—Of the number of acres avail- able for enrollment in the conservation reserve under section 1231(d)(1), not more than 50,000 total acres of eligible land may be enrolled under the pilot program under this subsection.

‘‘(5) REPORT.—The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Com- mittee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the eligible land enrolled in the pilot program under this subsection, including—

‘‘(A) the estimated conservation value of the land; and ‘‘(B) estimated savings from reduced commodity pay-

ments, crop insurance indemnities, and crop insurance pre- mium subsidies.’’.

SEC. 2205. DUTIES OF OWNERS AND OPERATORS.

Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended—

(1) by redesignating paragraphs (10) and (11) as paragraphs (11) and (12), respectively; and

(2) by inserting after paragraph (9) the following: ‘‘(10) on land devoted to hardwood or other trees, excluding

windbreaks and shelterbelts, to carry out proper thinning and other practices—

‘‘(A) to enhance the conservation benefits and wildlife habitat resources addressed by the conservation practice under which the land is enrolled; and

‘‘(B) to promote forest management;’’. SEC. 2206. DUTIES OF THE SECRETARY.

(a) COST-SHARE AND RENTAL PAYMENTS.—Section 1233(a) of the Food Security Act of 1985 (16 U.S.C. 3833(a)) is amended—

(1) in paragraph (1), by inserting ‘‘, including the cost of fencing and other water distribution practices, if applicable’’ after ‘‘interest’’; and

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132 STAT. 4544 PUBLIC LAW 115–334—DEC. 20, 2018

(2) in paragraph (2)— (A) in the matter preceding subparagraph (A), by

striking ‘‘in an amount necessary to compensate’’ and inserting ‘‘, in accordance with section 1234(d),’’;

(B) in subparagraph (A)— (i) by inserting ‘‘, marginal pastureland,’’ after

‘‘cropland’’; and (ii) by adding ‘‘or’’ at the end;

(C) by striking subparagraph (B); and (D) by redesignating subparagraph (C) as subpara-

graph (B). (b) SPECIFIED ACTIVITIES PERMITTED.—Section 1233 of the Food

Security Act of 1985 (16 U.S.C. 3833) is amended by striking subsection (b) and inserting the following:

‘‘(b) SPECIFIED ACTIVITIES PERMITTED.— ‘‘(1) IN GENERAL.—The Secretary, in coordination with the

applicable State technical committee established under section 1261(a), shall permit certain activities or commercial uses of established cover on land that is subject to a contract under the conservation reserve program if—

‘‘(A) those activities or uses— ‘‘(i) are consistent with the conservation of soil,

water quality, and wildlife habitat; ‘‘(ii) are subject to appropriate restrictions during

the primary nesting season for birds in the local area that are economically significant, in significant decline, or conserved in accordance with Federal or State law;

‘‘(iii) contribute to the health and vigor of the established cover; and

‘‘(iv) are consistent with a site-specific plan, including vegetative management requirements, stocking rates, and frequency and duration of activity, taking into consideration regional differences, such as climate, soil type, and natural resources; and ‘‘(B) the Secretary, in coordination with the State tech-

nical committee, includes contract modifications— ‘‘(i) without any reduction in the rental rate for—

‘‘(I) emergency haying, emergency grazing, or other emergency use of the forage in response to a localized or regional drought, flooding, wildfire, or other emergency, on all practices, outside the primary nesting season, when—

‘‘(aa) the county is designated as D2 (severe drought) or greater according to the United States Drought Monitor;

‘‘(bb) there is at least a 40 percent loss in forage production in the county; or

‘‘(cc) the Secretary, in coordination with the State technical committee, determines that the program can assist in the response to a natural disaster event without permanent damage to the established cover; ‘‘(II) emergency grazing on all practices during

the primary nesting season if payments are authorized for a county under the livestock forage disaster program under clause (ii) of section 1501(c)(3)(D) of the Agricultural Act of 2014 (7

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132 STAT. 4545PUBLIC LAW 115–334—DEC. 20, 2018

U.S.C. 9081(c)(3)(D)), at 50 percent of the normal carrying capacity determined under clause (i) of that section, adjusted to the site-specific plan;

‘‘(III) emergency haying on certain practices, outside the primary nesting season, if payments are authorized for a county under the livestock forage disaster program under clause (ii) of section 1501(c)(3)(D) of the Agricultural Act of 2014 (7 U.S.C. 9081(c)(3)(D)), on not more than 50 percent of contract acres, as identified in the site-specific plan;

‘‘(IV) grazing of all practices, outside the pri- mary nesting season, if included as a mid-contract management practice under section 1232(a)(5);

‘‘(V) the intermittent and seasonal use of vege- tative buffer established under paragraphs (4) and (5) of section 1231(b) that are incidental to agricul- tural production on land adjacent to the buffer such that the permitted use—

‘‘(aa) does not destroy the permanent vege- tative cover; and

‘‘(bb) retains suitable vegetative structure for wildlife cover and shelter outside the pri- mary nesting season; or ‘‘(VI) grazing on all practices, outside the pri-

mary nesting season, if conducted by a beginning farmer or rancher; or ‘‘(ii) with a 25 percent reduction in the annual

rental rate for the acres covered by the authorized activity, including—

‘‘(I) grazing not more frequently than every other year on the same land, except that during the primary nesting season, grazing shall be sub- ject to a 50 percent reduction in the stocking rate specified in the site-specific plan;

‘‘(II) grazing of all practices during the primary nesting season, with a 50 percent reduction in the stocking rate specified in the site-specific plan;

‘‘(III) haying and other commercial use (including the managed harvesting of biomass and excluding the harvesting of vegetative cover), on the condition that the activity—

‘‘(aa) is completed outside the primary nesting season;

‘‘(bb) occurs not more than once every 3 years; and

‘‘(cc) maintains 25 percent of the total con- tract acres unharvested, in accordance with a site-specific plan that provides for wildlife cover and shelter; ‘‘(IV) annual grazing outside the primary

nesting season if consistent with a site-specific plan that is authorized for the control of invasive species; and

‘‘(V) the installation of wind turbines and asso- ciated access, except that in permitting the installation of wind turbines, the Secretary shall

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132 STAT. 4546 PUBLIC LAW 115–334—DEC. 20, 2018

determine the number and location of wind tur- bines that may be installed, taking into account—

‘‘(aa) the location, size, and other physical characteristics of the land;

‘‘(bb) the extent to which the land contains threatened or endangered wildlife and wildlife habitat; and

‘‘(cc) the purposes of the conservation reserve program under this subchapter.

‘‘(2) CONDITIONS ON HAYING AND GRAZING.— ‘‘(A) IN GENERAL.—The Secretary may permit haying

or grazing in accordance with paragraph (1) on any land or practice subject to a contract under the conservation reserve program.

‘‘(B) EXCEPTIONS.— ‘‘(i) DAMAGE TO VEGETATIVE COVER.—Haying or

grazing described in paragraph (1) shall not be per- mitted on land subject to a contract under the conserva- tion reserve program, or under a particular practice, if haying or grazing for that year under that practice, as applicable, would cause long-term damage to vegeta- tive cover on that land.

‘‘(ii) SPECIAL AGREEMENTS.— ‘‘(I) IN GENERAL.—Except as provided in sub-

clause (II), haying or grazing described in para- graph (1) shall not be permitted on—

‘‘(aa) land covered by a contract enrolled under the State acres for wildlife enhancement program established by the Secretary; or

‘‘(bb) land covered by a contract enrolled under a conservation reserve enhancement program established under section 1231A or the Conservation Reserve Enhancement Pro- gram established by the Secretary under this subchapter. ‘‘(II) EXCEPTION.—Subclause (I) shall not apply

to land on which haying or grazing is specifically permitted under the applicable conservation reserve enhancement program agreement or other partnership agreement entered into under this subchapter.’’.

(c) NATURAL DISASTER OR ADVERSE WEATHER AS MID-CONTRACT MANAGEMENT.—Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is amended by adding at the end the following:

‘‘(e) NATURAL DISASTER OR ADVERSE WEATHER AS MID-CON- TRACT MANAGEMENT.—In the case of a natural disaster or adverse weather event that has the effect of a management practice con- sistent with the conservation plan, the Secretary shall not require further management practices pursuant to section 1232(a)(5) that are intended to achieve the same effect.’’.

SEC. 2207. PAYMENTS.

(a) COST SHARING PAYMENTS.—Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 3834(b)) is amended—

(1) by striking paragraphs (2) through (4) and inserting the following:

‘‘(2) LIMITATIONS.—

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132 STAT. 4547PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) IN GENERAL.—The Secretary shall ensure, to the maximum extent practicable, that cost sharing payments to an owner or operator under this subchapter, when com- bined with the sum of payments from all other funding sources for measures and practices described in paragraph (1), do not exceed 100 percent of the total actual cost of establishing those measures and practices, as determined by the Secretary.

‘‘(B) MID-CONTRACT MANAGEMENT GRAZING.—The Sec- retary may not make any cost sharing payment to an owner or operator under this subchapter pursuant to sec- tion 1232(a)(5).

‘‘(C) SEED COST.—In the case of seed costs related to the establishment of cover, cost sharing payments under this subchapter shall not exceed 50 percent of the actual cost of the seed mixture, as determined by the Secretary.’’; (2) by redesignating paragraph (5) as paragraph (3); (3) in paragraph (3) (as so redesignated), by striking ‘‘An

owner’’ and inserting ‘‘Except in the case of incentive payments that are related to the cost of the establishment of a practice and received from eligible partners under the conservation reserve enhancement program under section 1231A, an owner’’; and

(4) by adding at the end the following: ‘‘(4) PRACTICE INCENTIVES FOR CONTINUOUS PRACTICES.—

In addition to the cost sharing payment described in this sub- section, the Secretary shall make an incentive payment to an owner or operator of land enrolled under section 1231(d)(6) in an amount not to exceed 50 percent of the actual cost of establishing all measures and practices described in para- graph (1), including seed costs related to the establishment of cover, as determined by the Secretary.’’. (b) INCENTIVE PAYMENTS.—Section 1234(c) of the Food Security

Act of 1985 (16 U.S.C. 3834(c)) is amended— (1) in the subsection heading, by striking ‘‘INCENTIVE’’ and

inserting ‘‘FOREST MANAGEMENT INCENTIVE’’; (2) in paragraph (1), by striking ‘‘The Secretary’’ and

inserting ‘‘Using funds made available under section 1241(a)(1)(A), the Secretary’’; and

(3) in paragraph (2), by striking ‘‘150 percent’’ and inserting ‘‘100 percent’’. (c) ANNUAL RENTAL PAYMENTS.—Section 1234(d) of the Food

Security Act of 1985 (16 U.S.C. 3834(d)) is amended— (1) in paragraph (1)—

(A) by striking ‘‘the Secretary may consider, among other things, the amount’’ and inserting the following: ‘‘the Secretary shall consider—

‘‘(A) the amount’’; (B) in subparagraph (A) (as so designated), by striking

the period at the end and inserting a semicolon; and (C) by adding at the end the following: ‘‘(B) the impact on the local farmland rental market;

and ‘‘(C) such other factors as the Secretary determines

to be appropriate.’’; (2) in paragraph (2)—

(A) in subparagraph (A)—

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132 STAT. 4548 PUBLIC LAW 115–334—DEC. 20, 2018

(i) in clause (i), by striking ‘‘; or’’ and inserting a period;

(ii) by striking clause (ii); and (iii) by striking ‘‘determined through—’’ in the

matter preceding clause (i) and all that follows through ‘‘the submission of bids’’ in clause (i) and inserting ‘‘determined through the submission of applications’’; (B) by redesignating subparagraph (B) as subpara-

graph (C); (C) by inserting after subparagraph (A) the following: ‘‘(B) MULTIPLE ENROLLMENTS.—

‘‘(i) IN GENERAL.—Subject to clause (ii), if land subject to a contract entered into under this subchapter is reenrolled under section 1231(h)(1) or has been pre- viously enrolled in the conservation reserve, the annual rental payment shall be in an amount that is not more than 85 percent in the case of general enrollment contacts, or 90 percent in the case of continuous enroll- ment contracts, of the applicable estimated average county rental rate published pursuant to paragraph (4) for the year in which the reenrollment occurs.

‘‘(ii) CONSERVATION RESERVE ENHANCEMENT PRO- GRAM.—The reduction in annual rental payments under clause (i) may be waived as part of the negotia- tion between the Secretary and an eligible partner to enter into a conservation reserve enhancement pro- gram agreement under section 1231A.’’; (D) in subparagraph (C) (as so redesignated), by

striking ‘‘In the case’’ and inserting ‘‘Notwithstanding subparagraph (A), in the case’’; and

(E) by adding at the end the following: ‘‘(D) CONTINUOUS SIGN-UP INCENTIVES.—The Secretary

shall make an incentive payment to the owner or operator of land enrolled under section 1231(d)(6) at the time of initial enrollment in an amount equal to 32.5 percent of the amount of the first annual rental payment under subparagraph (A).’’; (3) by striking paragraph (4); (4) by redesignating paragraph (5) as paragraph (4); and (5) in paragraph (4) (as so redesignated)—

(A) in subparagraph (A)— (i) by striking ‘‘, not less frequently than once

every other year,’’ and inserting ‘‘annually’’; and (ii) by inserting ‘‘, and shall publish the estimates

derived from the survey not later than September 15 of each year’’ before the period at the end; (B) in subparagraph (B), by inserting ‘‘and the average

current and previous soil rental rates for each county’’ after ‘‘subparagraph (A)’’;

(C) in subparagraph (C), by striking ‘‘may use’’ and inserting ‘‘shall consider’’; and

(D) by adding at the end the following: ‘‘(D) SUBMISSION OF ADDITIONAL INFORMATION BY STATE

FSA OFFICES AND CREP PARTNERS.— ‘‘(i) IN GENERAL.—The Secretary shall provide an

opportunity for State Committees of the Farm Service Agency or eligible partners (as defined in section

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132 STAT. 4549PUBLIC LAW 115–334—DEC. 20, 2018

1231A(a)) in conservation reserve enhancement pro- grams under section 1231A to propose an alternative soil rental rate prior to finalizing new rates, on the condition that documentation described in clause (ii) is provided to support the proposed alternative.

‘‘(ii) ACCEPTABLE DOCUMENTATION.—Documenta- tion referred to in clause (i) includes—

‘‘(I) an average of cash rents from a random sample of lease agreements;

‘‘(II) cash rent estimates from a published survey;

‘‘(III) neighboring county estimate comparisons from the National Agricultural Statistics Service;

‘‘(IV) an average of cash rents from Farm Service Agency farm business plans;

‘‘(V) models that estimate cash rents, such as models that use returns to estimate crop produc- tion or land value data; or

‘‘(VI) other documentation, as determined by the Secretary. ‘‘(iii) NOTIFICATION.—Not less than 14 days prior

to the announcement of new or revised soil rental rates, the Secretary shall offer a briefing to the Chair- man and Ranking Member of the Committee on Agri- culture of the House of Representatives and the Chair- man and Ranking Member of the Committee on Agri- culture, Nutrition, and Forestry of the Senate, including information on and the rationale for the alternative rates proposed under clause (i) that were accepted or rejected. ‘‘(E) RENTAL RATE LIMITATION.—Notwithstanding forest

management incentive payments described in subsection (c), the county average soil rental rate (before any adjust- ments relating to specific practices, wellhead protection, or soil productivity) shall not exceed—

‘‘(i) 85 percent of the estimated rental rate deter- mined under this paragraph for general enrollment; or

‘‘(ii) 90 percent of the estimated rental rate deter- mined under this paragraph for continuous enroll- ment.’’.

(d) PAYMENT LIMITATION FOR RENTAL PAYMENTS.—Section 1234(g) of the Food Security Act of 1985 (16 U.S.C. 3834(g)) is amended—

(1) in paragraph (1), by striking ‘‘The total’’ and inserting ‘‘Except as provided in paragraph (2), the total’’; and

(2) by striking paragraph (2) and inserting the following: ‘‘(2) WELLHEAD PROTECTION.—Paragraph (1) and section

1001D(b) shall not apply to rental payments received by a rural water district or association for land that is enrolled under this subchapter for the purpose of protecting a wellhead.’’.

SEC. 2208. CONTRACTS.

(a) TRANSITION OPTION FOR CERTAIN FARMERS OR RANCHERS.— Section 1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is amended—

(1) in paragraph (1)—

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132 STAT. 4550 PUBLIC LAW 115–334—DEC. 20, 2018

(A) in the matter preceding subparagraph (A), by striking ‘‘retired farmer or rancher’’ and inserting ‘‘contract holder’’;

(B) by striking ‘‘retired or retiring owner or operator’’ each place it appears and inserting ‘‘contract holder’’;

(C) in subparagraph (A), in the matter preceding clause (i), by striking ‘‘1 year’’ and inserting ‘‘2 years’’;

(D) in subparagraph (B), by inserting ‘‘, including a lease with a term of less than 5 years and an option to purchase’’ after ‘‘option to purchase’’;

(E) in subparagraph (D), by striking ‘‘; and’’ and inserting a semicolon;

(F) by redesignating subparagraph (E) as subparagraph (F); and

(G) by inserting after subparagraph (D) the following: ‘‘(E) give priority to the enrollment of the land covered

by the contract in— ‘‘(i) the environmental quality incentives program

established under subchapter A of chapter 4; ‘‘(ii) the conservation stewardship program estab-

lished under subchapter B of chapter 4; or ‘‘(iii) the agricultural conservation easement pro-

gram established under subtitle H; and’’; and (2) in paragraph (2)—

(A) in the matter preceding subparagraph (A), by striking ‘‘The Secretary’’ and inserting ‘‘To the extent that the maximum number of acres permitted to be enrolled under the conservation reserve program has not been met, the Secretary’’; and

(B) by striking subparagraph (A) and inserting the following:

‘‘(A)(i) is carried out on land described in paragraph (4) or (5) of section 1231(b); and

‘‘(ii) is eligible for continuous enrollment under section 1231(d)(6); and’’.

(b) END OF CONTRACT CONSIDERATIONS.—Section 1235(g) of the Food Security Act of 1985 (16 U.S.C. 3835(g)) is amended to read as follows:

‘‘(g) END OF CONTRACT CONSIDERATIONS.—The Secretary shall not consider an owner or operator to be in violation of a term or condition of the conservation reserve contract if—

‘‘(1) during the year prior to expiration of the contract, the owner or operator—

‘‘(A)(i) enters into a contract under the environmental quality incentives program established under subchapter A of chapter 4; and

‘‘(ii) begins the establishment of a practice under that contract; or

‘‘(B)(i) enters into a contract under the conservation stewardship program established under subchapter B of chapter 4; and

‘‘(ii) begins the establishment of a practice under that contract; or ‘‘(2) during the 3 years prior to the expiration of the con-

tract, the owner or operator begins the certification process under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).’’.

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132 STAT. 4551PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 2209. ELIGIBLE LAND; STATE LAW REQUIREMENTS.

The Secretary shall revise paragraph (4) of section 1410.6(d) of title 7, Code of Federal Regulations, to provide that land enrolled under a Conservation Reserve Enhancement Program agreement initially established before January 1, 2014 (including an amended or successor Conservation Reserve Enhancement Program agree- ment, as determined by the Secretary), shall not be ineligible for enrollment in the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) under that paragraph if the Deputy Administrator (as defined in section 1410.2(b) of title 7, Code of Federal Regulations (or successor regulations)), on recommendation from and in consultation with the applicable State technical committee established under section 1261(a) of the Food Security Act of 1985 (16 U.S.C. 3861(a)) determines, under such terms and conditions as the Deputy Administrator, in consulta- tion with the State technical committee, determines to be appro- priate, that making that land eligible for enrollment in that program is not contrary to the purposes of that program.

Subtitle C—Environmental Quality Incen- tives Program and Conservation Stew- ardship Program

SEC. 2301. REPEAL OF CONSERVATION PROGRAMS.

(a) IN GENERAL.—Chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) is amended—

(1) by striking the chapter designation and heading and inserting the following:

‘‘CHAPTER 4—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM AND CONSERVATION STEWARDSHIP PRO- GRAM

‘‘Subchapter A—Environmental Quality Incentives Program’’; and

(2) by inserting after section 1240H the following:

‘‘Subchapter B—Conservation Stewardship Program’’.

(b) CONSERVATION STEWARDSHIP PROGRAM.—Subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) is amended—

(1) by redesignating sections 1238D through 1238G as sec- tions 1240I through 1240L, respectively; and

(2) by moving sections 1240I through 1240L (as so redesig- nated) so as to appear after the subchapter heading for sub- chapter B of chapter 4 of subtitle D of title XII of that Act (as added by subsection (a)(2)). (c) REPEAL.—

(1) IN GENERAL.—Chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) (as amended by subsection (b)) is repealed. 16 USC

3838–3838c.

16 USC 3839aa–21— 3839aa–24.

16 USC 3838d–3838g.

16 USC 3831 note.

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132 STAT. 4552 PUBLIC LAW 115–334—DEC. 20, 2018

(2) TERMINATION OF CONSERVATION STEWARDSHIP PRO- GRAM.—Effective on the date of enactment of this Act, the conservation stewardship program under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) (as in effect on the day before the date of enactment of this Act) shall cease to be effective.

(3) TRANSITIONAL PROVISIONS.— (A) EFFECT ON EXISTING CONTRACTS AND AGREE-

MENTS.—The cessation of effectiveness under paragraph (2) shall not affect—

(i) the validity or terms of any contract entered into by the Secretary under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) before the date of enactment of this Act, or any payments, modifications, or technical assistance required to be made in connec- tion with the contract; or

(ii) subject to subparagraph (D), any agreement entered into by the Secretary under the regional con- servation partnership program under subtitle I of title XII of the Food Security Act of 1985 (16 U.S.C. 3871 et seq.) on or before September 30, 2018, under which conservation stewardship program acres and associated funding have been allocated to the agreement for the purpose of entering into a contract under subchapter B of chapter 2 of subtitle D of title XII of that Act (16 U.S.C. 3838d et seq.) (as in effect on the day before the date of enactment of this Act). (B) EXTENSION PERMITTED.—Notwithstanding para-

graph (2), the Secretary may extend for 1 year a contract described in subparagraph (A)(i) if that contract expires on or before December 31, 2019, under the terms and payment rate of the existing contract and in accordance with subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) (as in effect on the day before the date of enactment of this Act).

(C) RENEWAL NOT PERMITTED.— (i) IN GENERAL.—Notwithstanding subparagraph

(A), and subject to clause (ii), the Secretary may not renew a contract or agreement described in that subparagraph.

(ii) EXCEPTION.—The Secretary may renew a con- tract described in subparagraph (A)(i)—

(I) if that contract expires on or after December 31, 2019;

(II) under the terms of the conservation stewardship program under subchapter B of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (as added by subsections (a)(2) and (b)); and

(III) subject to the limitation on funding for that subchapter under section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841).

(D) RCPP CONTRACTS.—

16 USC 3839aa–21 note.

16 USC 3838d note.

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132 STAT. 4553PUBLIC LAW 115–334—DEC. 20, 2018

(i) TREATMENT OF ACREAGE.—In the case of an agreement described in subparagraph (A)(ii), the Sec- retary may provide an amount of funding that is equivalent to the value of any acres covered by the agreement.

(ii) FUNDS AND ACRES NOT OBLIGATED.—In the case of an agreement described in subparagraph (A)(ii) to which program acres and associated funding have been allocated but not yet obligated to enter into a contract under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) (as in effect on the day before the date of enactment of this Act)—

(I) the Secretary shall modify the agreement to authorize the entrance into a contract under subchapter B of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (as added by subsections (a)(2) and (b)); and

(II) the funds associated with the conservation stewardship program acres allocated under that agreement, on modification under subclause (I), may be used to enter into conservation stewardship program contracts with producers under sub- chapter B of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (as added by subsections (a)(2) and (b)).

(4) CONTRACT ADMINISTRATION.—Subject to paragraphs (3)(C) and (3)(D)(ii)(II), the Secretary shall administer each contract and agreement described in clauses (i) and (ii) of paragraph (3)(A) until the expiration of the contract or agree- ment in accordance with the regulations to carry out the con- servation stewardship program under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) (as in effect on the day before the date of enactment of this Act) that are in effect on the day before that date of enactment.

(5) FUNDING.—Notwithstanding paragraphs (1) and (2), any funds made available from the Commodity Credit Corporation under section 1241(a)(4) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) for fiscal years 2014 through 2018 shall be available to carry out—

(A) any contract or agreement described in paragraph (3)(A)(i) for fiscal year 2019;

(B) any contract or agreement described in paragraph (3)(A)(ii);

(C) any contract extended under paragraph (3)(B); and (D) any contract or agreement under subchapter B

of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (as added by subsections (a)(2) and (b)).

(d) CONFORMING AMENDMENTS.— (1) FOOD SECURITY ACT OF 1985.—

(A) Section 1211(a)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3811(a)(3)(A)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(B) Section 1221(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3821(b)(3)(A)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

16 USC 3839aa–21 note.

16 USC 3839aa–21 note.

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132 STAT. 4554 PUBLIC LAW 115–334—DEC. 20, 2018

(C) Section 1240J(b)(1) of the Food Security Act of 1985 (as redesignated by subsection (b)(1)) is amended by striking subparagraph (C).

(D) Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended in the matter preceding paragraph (1) by striking ‘‘chapter’’ and inserting ‘‘sub- chapter’’.

(E) Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is amended by striking ‘‘chapter’’ each place it appears and inserting ‘‘subchapter’’.

(F) Section 1240B(i)(2)(B) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(i)(2)(B)) is amended by striking ‘‘chapter’’ and inserting ‘‘subchapter’’.

(G) Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C. 3839aa–3(b)) is amended in the matter preceding paragraph (1) by striking ‘‘chapter’’ and inserting ‘‘sub- chapter’’.

(H) Section 1240E(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–5(b)(2)) is amended by striking ‘‘chapter’’ and inserting ‘‘subchapter’’.

(I) Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa–7) is amended by striking ‘‘chapter’’ each place it appears and inserting ‘‘subchapter’’.

(J) Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa–8) is amended by striking ‘‘chapter’’ each place it appears and inserting ‘‘subchapter’’.

(K) Section 1244(c)(3) of the Food Security Act of 1985 (16 U.S.C. 3844(c)(3)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(L) Section 1244(l) of the Food Security Act of 1985 (16 U.S.C. 3844(l)) is amended—

(i) by striking ‘‘chapter 2’’ and inserting ‘‘chapter 4’’; and

(ii) by inserting ‘‘subchapter A of’’ after ‘‘incentives program under’’.

(2) OTHER LAWS.— (A) Section 344(f)(8) of the Agricultural Adjustment

Act of 1938 (7 U.S.C. 1344(f)(8)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(B) Section 377 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1377) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(C) Paragraph (1) of the last proviso of the matter under the heading ‘‘CONSERVATION RESERVE PROGRAM’’ under the heading ‘‘SOIL BANK PROGRAMS’’ of title I of the Department of Agriculture and Farm Credit Adminis- tration Appropriation Act, 1959 (7 U.S.C. 1831a), is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(D) Section 8(b)(1) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(1)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(E) Section 1271(c)(3)(C) of the Food, Agriculture, Con- servation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(C)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

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132 STAT. 4555PUBLIC LAW 115–334—DEC. 20, 2018

(F) Section 304(a)(1) of the Lake Champlain Special Designation Act of 1990 (33 U.S.C. 1270 note; Public Law 101–596) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

(G) Section 202(c) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 4’’.

SEC. 2302. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PRO- GRAM.

Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended by striking paragraph (4) and inserting the following:

‘‘(4) assisting producers to make beneficial, cost-effective changes to production systems, including addressing identified, new, or expected resource concerns related to organic produc- tion, grazing management, fuels management, forest manage- ment, nutrient management associated with crops and live- stock, pest management, irrigation management, adapting to, and mitigating against, increasing weather volatility, drought resiliency measures, or other practices on agricultural and for- ested land.’’.

SEC. 2303. DEFINITIONS UNDER ENVIRONMENTAL QUALITY INCEN- TIVES PROGRAM.

Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is amended—

(1) by redesignating paragraphs (1), (2), (3), (4) and (5) as paragraphs (2), (4), (5), (6), and (8), respectively;

(2) by inserting before paragraph (2) (as so redesignated) the following:

‘‘(1) CONSERVATION PLANNING ASSESSMENT.—The term ‘con- servation planning assessment’ means a report, as determined by the Secretary, that—

‘‘(A) is developed by— ‘‘(i) a State or unit of local government (including

a conservation district); ‘‘(ii) a Federal agency; or ‘‘(iii) a third-party provider certified under section

1242(e) (including a certified rangeland professionan( � ‘‘(B) assesses rangeland or cropland function and

describes conservation activities to enhance the economic and ecological management of that land; and

‘‘(C) can be incorporated into a comprehensive planning document required by the Secretary for enrollment in a conservation program of the Department of Agriculture.’’; (3) in paragraph (2) (as so redesignated), in subparagraph

(B)(vi)— (A) by inserting ‘‘environmentally sensitive areas,’’

after ‘‘marshes,’’; and (B) by inserting ‘‘identified or expected’’ before

‘‘resource concerns’’; (4) by inserting after paragraph (2) (as so redesignated)

the following: ‘‘(3) INCENTIVE PRACTICE.—The term ‘incentive practice’

means a practice or set of practices approved by the Secretary that, when implemented and maintained on eligible land, address 1 or more priority resource concerns.’’;

(5) in paragraph (6) (as so redesignated)—

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132 STAT. 4556 PUBLIC LAW 115–334—DEC. 20, 2018

(A) in subparagraph (A)— (i) in clause (iv), by striking ‘‘and’’ at the end; (ii) by redesignating clause (v) as clause (vii); and (iii) by inserting after clause (iv) the following: ‘‘(v) soil testing; ‘‘(vi) soil remediation to be carried out by the pro-

ducer; and’’; and (B) in subparagraph (B)—

(i) in clause (i), by striking ‘‘and’’ at the end; (ii) by redesignating clause (ii) as clause (vi); and (iii) by inserting after clause (i) the following: ‘‘(ii) planning for resource-conserving crop rota-

tions (as defined in section 1240L(d)(1)); ‘‘(iii) soil health planning, including increasing soil

organic matter and the use of cover crops; ‘‘(iv) a conservation planning assessment; ‘‘(v) precision conservation management planning;

and’’; (6) by inserting after paragraph (6) (as so redesignated)

the following: ‘‘(7) PRIORITY RESOURCE CONCERN.—The term ‘priority

resource concern’ means a natural resource concern or problem, as determined by the Secretary, that—

‘‘(A) is identified at the national, State, or local level as a priority for a particular area of a State; and

‘‘(B) represents a significant concern in a State or region.’’; and (7) by adding at the end the following: ‘‘(9) SOIL REMEDIATION.—The term ‘soil remediation’ means

scientifically based practices that— ‘‘(A) ensure the safety of producers from contaminants

in soil; ‘‘(B) limit contaminants in soil from entering agricul-

tural products for human or animal consumption; and ‘‘(C) regenerate and sustain the soil.

‘‘(10) SOIL TESTING.—The term ‘soil testing’ means the evaluation of soil health, including testing for—

‘‘(A) the optimal level of constituents in the soil, such as organic matter, nutrients, and the potential presence of soil contaminants, including heavy metals, volatile organic compounds, polycyclic aromatic hydrocarbons, or other contaminants; and

‘‘(B) the biological and physical characteristics indic- ative of proper soil functioning.’’.

SEC. 2304. ESTABLISHMENT AND ADMINISTRATION OF ENVIRON- MENTAL QUALITY INCENTIVES PROGRAM.

(a) ESTABLISHMENT.—Section 1240B(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(a)) is amended by striking ‘‘2019’’ and inserting ‘‘2023’’.

(b) PAYMENTS.—Section 1240B(d) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(d)) is amended—

(1) in paragraph (4)(B)— (A) in clause (i)—

(i) by striking ‘‘Not more than’’ and inserting ‘‘On an election by a producer described in subparagraph (A), the Secretary shall provide at least’’;

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132 STAT. 4557PUBLIC LAW 115–334—DEC. 20, 2018

(ii) by striking ‘‘may be provided’’; and (iii) by striking ‘‘the purpose of’’ and inserting ‘‘all

costs related to’’; and (B) by adding at the end the following:

‘‘(iii) NOTIFICATION AND DOCUMENTATION.—The Secretary shall—

‘‘(I) notify each producer described in subpara- graph (A), at the time of enrollment in the pro- gram, of the option to receive advance payments under clause (i); and

‘‘(II) document the election of each producer described in subparagraph (A) to receive advance payments under clause (i) with respect to each practice that has costs described in that clause.’’; and

(2) by adding at the end the following: ‘‘(7) INCREASED PAYMENTS FOR HIGH-PRIORITY PRACTICES.—

‘‘(A) STATE DETERMINATION.—Each State, in consulta- tion with the State technical committee established under section 1261(a) for the State, may designate not more than 10 practices to be eligible for increased payments under subparagraph (B), on the condition that the practice, as determined by the Secretary—

‘‘(i) addresses specific causes of impairment relating to excessive nutrients in groundwater or sur- face water;

‘‘(ii) addresses the conservation of water to advance drought mitigation and declining aquifers;

‘‘(iii) meets other environmental priorities and other priority resource concerns identified in habitat or other area restoration plans; or

‘‘(iv) is geographically targeted to address a natural resource concern in a specific watershed. ‘‘(B) INCREASED PAYMENTS.—Notwithstanding para-

graph (2), in the case of a practice designated under subparagraph (A), the Secretary may increase the amount that would otherwise be provided for a practice under this subsection to not more than 90 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training.’’.

(c) ALLOCATION OF FUNDING.—Section 1240B(f) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(f)) is amended—

(1) in paragraph (1)— (A) by striking ‘‘2014 through 2018’’ and inserting

‘‘2019 through 2023’’; (B) by striking ‘‘60’’ and inserting ‘‘50’’; and (C) by striking ‘‘production.’’ and inserting ‘‘production,

including grazing management practices.’’; and (2) in paragraph (2)—

(A) by striking ‘‘For each’’ and inserting the following: ‘‘(A) FISCAL YEARS 2014 THROUGH 2018.—For each’’; and (B) by adding at the end the following: ‘‘(B) FISCAL YEARS 2019 THROUGH 2023.—For each of

fiscal years 2019 through 2023, at least 10 percent of the funds made available for payments under the program

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132 STAT. 4558 PUBLIC LAW 115–334—DEC. 20, 2018

shall be targeted at practices benefitting wildlife habitat under subsection (g).’’.

(d) WILDLIFE HABITAT INCENTIVE PROGRAM.—Section 1240B(g) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) is amended by adding at the end the following:

‘‘(3) MAXIMUM TERM.—In the case of a contract under the program entered into solely for the establishment of 1 or more annual management practices for the benefit of wildlife as described in paragraph (1), notwithstanding any maximum con- tract term established by the Secretary, the contract shall have a term that does not exceed 10 years.

‘‘(4) INCLUDED PRACTICES.—For the purpose of providing seasonal wetland habitat for waterfowl and migratory birds, a practice that is eligible for payment under paragraph (1) and targeted for funding under subsection (f) may include—

‘‘(A) a practice to carry out postharvest flooding; or ‘‘(B) a practice to maintain the hydrology of temporary

and seasonal wetlands of not more than 2 acres to maintain waterfowl and migratory bird habitat on working crop- land.’’.

(e) WATER CONSERVATION OR IRRIGATION EFFICIENCY PRAC- TICE.—Section 1240B(h) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(h)) is amended—

(1) by striking paragraph (1) and inserting the following: ‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary may pro-

vide water conservation and system efficiency payments under this subsection to an entity described in paragraph (2) or a producer for—

‘‘(A) water conservation scheduling, water distribution efficiency, soil moisture monitoring, or an appropriate com- bination thereof;

‘‘(B) irrigation-related structural or other measures that conserve surface water or groundwater, including man- aged aquifer recovery practices; or

‘‘(C) a transition to water-conserving crops, water-con- serving crop rotations, or deficit irrigation.’’; (2) by redesignating paragraph (2) as paragraph (3); (3) by inserting after paragraph (1) the following: ‘‘(2) ELIGIBILITY OF CERTAIN ENTITIES.—

‘‘(A) IN GENERAL.—Notwithstanding section 1001(f)(6), the Secretary may enter into a contract under this sub- section with a State, irrigation district, groundwater management district, acequia, land-grant mercedes, or similar entity under a streamlined contracting process to implement water conservation or irrigation practices under a watershed-wide project that will effectively conserve water, provide fish and wildlife habitat, or provide for drought-related environmental mitigation, as determined by the Secretary.

‘‘(B) IMPLEMENTATION.—Water conservation or irriga- tion practices that are the subject of a contract entered into under subparagraph (A) shall be implemented on—

‘‘(i) eligible land of a producer; or ‘‘(ii) land that is—

‘‘(I) under the control of an irrigation district, groundwater management district, acequia, land- grant mercedes, or similar entity; and

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132 STAT. 4559PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(II) adjacent to eligible land described in clause (i), as determined by the Secretary.

‘‘(C) WAIVER AUTHORITY.—The Secretary may waive the applicability of the limitations in section 1001D(b) or section 1240G for a payment made under a contract entered into under this paragraph if the Secretary determines that the waiver is necessary to fulfill the objectives of the project.

‘‘(D) CONTRACT LIMITATIONS.—If the Secretary grants a waiver under subparagraph (C), the Secretary may impose a separate payment limitation for the contract with respect to which the waiver applies.’’; (4) in paragraph (3) (as so redesignated)—

(A) in the matter preceding subparagraph (A), by striking ‘‘to a producer’’ and inserting ‘‘under this sub- section’’;

(B) in subparagraph (A), by striking ‘‘the eligible land of the producer is located, there is a reduction in water use in the operation of the producer’’ and inserting ‘‘the land on which the practices will be implemented is located, there is a reduction in water use in the operation on that land’’; and

(C) in subparagraph (B), by inserting ‘‘except in the case of an application under paragraph (2),’’ before ‘‘the producer agrees’’; and (5) by adding at the end the following: ‘‘(4) EFFECT.—Nothing in this subsection authorizes the

Secretary to modify the process for determining the annual allocation of funding to States under the program.’’. (f) PAYMENTS FOR CONSERVATION PRACTICES RELATED TO

ORGANIC PRODUCTION.—Section 1240B(i)(3) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(i)(3)) is amended—

(1) in the first sentence, by striking ‘‘Payments’’ and inserting the following:

‘‘(A) IN GENERAL.—Payments’’; (2) in the second sentence, by striking ‘‘In applying these

limitations’’ and inserting the following: ‘‘(B) TECHNICAL ASSISTANCE.—In applying the limita-

tions under subparagraph (A)’’; and (3) in subparagraph (A) (as so designated)—

(A) by striking ‘‘aggregate, $20,000 per year or $80,000 during any 6-year period.’’ and inserting the following: ‘‘aggregate—

‘‘(i) through fiscal year 2018— ‘‘(I) $20,000 per year; or ‘‘(II) $80,000 during any 6-year period; and’’;

and (B) by adding at the end the following:

‘‘(ii) during the period of fiscal years 2019 through 2023, $140,000.’’.

(g) CONSERVATION INCENTIVE CONTRACTS.—Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–2) is amended by adding at the end the following:

‘‘(j) CONSERVATION INCENTIVE CONTRACTS.— ‘‘(1) IDENTIFICATION OF ELIGIBLE PRIORITY RESOURCE CON-

CERNS FOR STATES.—

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132 STAT. 4560 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) IN GENERAL.—The Secretary, in consultation with the applicable State technical committee established under section 1261(a), shall identify watersheds (or other appro- priate regions or areas within a State) and the cor- responding priority resource concerns for those watersheds or other regions or areas that are eligible to be the subject of an incentive contract under this subsection.

‘‘(B) LIMITATION.—For each of the relevant land uses within the watersheds, regions, or other areas identified under subparagraph (A), the Secretary shall identify not more than 3 eligible priority resource concerns. ‘‘(2) CONTRACTS.—

‘‘(A) AUTHORITY.— ‘‘(i) IN GENERAL.—The Secretary shall enter into

contracts with producers under this subsection that require the implementation, adoption, management, and maintenance of incentive practices that effectively address at least 1 eligible priority resource concern identified under paragraph (1) for the term of the contract.

‘‘(ii) INCLUSIONS.—Through a contract entered into under clause (i), the Secretary may provide—

‘‘(I) funding, through annual payments, for cer- tain incentive practices to attain increased levels of conservation on eligible land; or

‘‘(II) assistance, through a practice payment, to implement an incentive practice.

‘‘(B) TERM.—A contract under this subsection shall have a term of not less than 5, and not more than 10, years.

‘‘(C) PRIORITIZATION.—Notwithstanding section 1240C, the Secretary shall develop criteria for evaluating incentive practice applications that—

‘‘(i) give priority to applications that address eligible priority resource concerns identified under paragraph (1); and

‘‘(ii) evaluate applications relative to other applica- tions for similar agriculture and forest operations.

‘‘(3) INCENTIVE PRACTICE PAYMENTS.— ‘‘(A) IN GENERAL.—The Secretary shall provide pay-

ments to producers through contracts entered into under paragraph (2) for—

‘‘(i) adopting and installing incentive practices; and ‘‘(ii) managing, maintaining, and improving the

incentive practices for the duration of the contract, as determined appropriate by the Secretary. ‘‘(B) PAYMENT AMOUNTS.—In determining the amount

of payments under subparagraph (A), the Secretary shall consider, to the extent practicable—

‘‘(i) the level and extent of the incentive practice to be installed, adopted, completed, maintained, man- aged, or improved;

‘‘(ii) the cost of the installation, adoption, comple- tion, management, maintenance, or improvement of the incentive practice;

‘‘(iii) income foregone by the producer, including payments, as appropriate, to address—

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132 STAT. 4561PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(I) increased economic risk; ‘‘(II) loss in revenue due to anticipated reduc-

tions in yield; and ‘‘(III) economic losses during transition to a

resource-conserving cropping system or resource- conserving land use; and ‘‘(iv) the extent to which compensation would

ensure long-term continued maintenance, manage- ment, and improvement of the incentive practice. ‘‘(C) DELIVERY OF PAYMENTS.—In making payments

under subparagraph (A), the Secretary shall, to the extent practicable—

‘‘(i) in the case of annual payments under para- graph (2)(A)(ii)(I), make those payments as soon as practicable after October 1 of each fiscal year for which increased levels of conservation are maintained during the term of the contract; and

‘‘(ii) in the case of practice payments under para- graph (2)(A)(ii)(II), make those payments as soon as practicable on the implementation of an incentive prac- tice.’’.

SEC. 2305. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

Section 1240E(a)(3) of the Food Security Act of 1985 (16 U.S.C. 3839aa–5(a)(3)) is amended by inserting ‘‘progressive’’ before ‘‘implementation’’. SEC. 2306. LIMITATION ON PAYMENTS UNDER ENVIRONMENTAL

QUALITY INCENTIVES PROGRAM.

Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa–7) is amended—

(1) by striking ‘‘A person’’ and inserting ‘‘Not including payments made under section 1240B(j), a person’’; and

(2) by inserting ‘‘or the period of fiscal years 2019 through 2023,’’ after ‘‘2018,’’.

SEC. 2307. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

(a) COMPETITIVE GRANTS FOR INNOVATIVE CONSERVATION APPROACHES.—Section 1240H(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–8(a)(2)) is amended—

(1) in subparagraph (A), by striking ‘‘program;’’ and inserting ‘‘program or community colleges (as defined in section 1473E(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319e(a))) carrying out demonstration projects on land of the community college;’’;

(2) by redesignating subparagraphs (E) and (F) as subpara- graphs (G) and (H), respectively; and

(3) by inserting after subparagraph (D) the following: ‘‘(E) partner with farmers to develop innovative prac-

tices for urban, indoor, or other emerging agricultural oper- ations;

‘‘(F) utilize edge-of-field and other monitoring practices on farms—

‘‘(i) to quantify the impacts of practices imple- mented under the program; and

‘‘(ii) to assist producers in making the best con- servation investments for the operations of the pro- ducers;’’.

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132 STAT. 4562 PUBLIC LAW 115–334—DEC. 20, 2018

(b) AIR QUALITY CONCERNS FROM AGRICULTURAL OPER- ATIONS.—Section 1240H(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–8(b)(2)) is amended by striking ‘‘$25,000,000 for each of fiscal years 2009 through 2018’’ and inserting ‘‘$37,500,000 for each of fiscal years 2019 through 2023’’.

(c) ON-FARM CONSERVATION INNOVATION TRIALS; REPORTING AND DATABASE.—Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa–8) is amended by striking subsection (c) and inserting the following:

‘‘(c) ON-FARM CONSERVATION INNOVATION TRIALS.— ‘‘(1) DEFINITIONS.—In this subsection:

‘‘(A) ELIGIBLE ENTITY.—The term ‘eligible entity’ means, as determined by the Secretary—

‘‘(i) a third-party private entity the primary busi- ness of which is related to agriculture;

‘‘(ii) a nongovernmental organization with experi- ence working with agricultural producers; or

‘‘(iii) a governmental organization. ‘‘(B) NEW OR INNOVATIVE CONSERVATION APPROACH.—

The term ‘new or innovative conservation approach’ means—

‘‘(i) new or innovative— ‘‘(I) precision agriculture technologies; ‘‘(II) enhanced nutrient management plans,

nutrient recovery systems, and fertilization sys- tems;

‘‘(III) soil health management systems, including systems to increase soil carbon levels;

‘‘(IV) water management systems; ‘‘(V) resource-conserving crop rotations (as

defined in section 1240L(d)(1)); ‘‘(VI) cover crops; and ‘‘(VII) irrigation systems; and

‘‘(ii) any other conservation approach approved by the Secretary as new or innovative.

‘‘(2) TESTING NEW OR INNOVATIVE CONSERVATION APPROACHES.—Using $25,000,000 of the funds made available to carry out this subchapter for each of fiscal years 2019 through 2023, the Secretary shall carry out on-farm conserva- tion innovation trials, on eligible land of producers, to test new or innovative conservation approaches—

‘‘(A) directly with producers; or ‘‘(B) through eligible entities.

‘‘(3) INCENTIVE PAYMENTS.— ‘‘(A) AGREEMENTS.—In carrying out paragraph (2), the

Secretary shall enter into agreements with producers (either directly or through eligible entities) on whose land an on-farm conservation innovation trial is being carried out to provide payments (including payments to compensate for foregone income, as appropriate to address the increased economic risk potentially associated with new or innovative conservation approaches) to the producers to assist with adopting and evaluating new or innovative conservation approaches to achieve conservation benefits.

‘‘(B) ADJUSTED GROSS INCOME REQUIREMENTS.— ‘‘(i) IN GENERAL.—Adjusted gross income require-

ments under section 1001D(b)(1) shall—

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132 STAT. 4563PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(I) apply to producers receiving payments under this subsection; and

‘‘(II) be enforced by the Secretary. ‘‘(ii) REPORTING.—An eligible entity participating

in an on-farm conservation innovation trial under this subsection shall report annually to the Secretary on the amount of payments made to individual farm oper- ations under this subsection. ‘‘(C) LIMITATION ON ADMINISTRATIVE EXPENSES.—None

of the funds made available to carry out this subsection may be used to pay for the administrative expenses of an eligible entity.

‘‘(D) LENGTH OF AGREEMENTS.—An agreement entered into under subparagraph (A) shall be for a period deter- mined by the Secretary that is—

‘‘(i) not less than 3 years; and ‘‘(ii) if appropriate, more than 3 years, including

if such a period is appropriate to support— ‘‘(I) adaptive management over multiple crop

years; and ‘‘(II) adequate data collection and analysis by

a producer or eligible entity to report the natural resource and agricultural production benefits of the new or innovative conservation approaches to the Secretary.

‘‘(4) FLEXIBLE ADOPTION.—The scale of adoption of a new or innovative conservation approach under an on-farm con- servation innovation trial under an agreement under paragraph (2) may include multiple scales on an operation, including whole farm, field-level, or sub-field scales.

‘‘(5) TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance—

‘‘(A) to each producer or eligible entity participating in an on-farm conservation innovation trial under para- graph (2) with respect to the design, installation, and management of the new or innovative conservation approaches; and

‘‘(B) to each eligible entity participating in an on-farm conservation innovation trial under paragraph (2) with respect to data analyses of the on-farm conservation innova- tion trial. ‘‘(6) GEOGRAPHIC SCOPE.—The Secretary shall identify a

diversity of geographic regions of the United States in which to establish on-farm conservation innovation trials under para- graph (2), taking into account factors such as soil type, cropping history, and water availability.

‘‘(7) SOIL HEALTH DEMONSTRATION TRIAL.—Using funds made available to carry out this subsection, the Secretary shall carry out a soil health demonstration trial under which the Secretary coordinates with eligible entities—

‘‘(A) to provide incentives to producers to implement conservation practices that—

‘‘(i) improve soil health; ‘‘(ii) increase carbon levels in the soil; or ‘‘(iii) meet the goals described in clauses (i) and

(ii);

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132 STAT. 4564 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(B) to establish protocols for measuring carbon levels in the soil and testing carbon levels on land where con- servation practices described in subparagraph (A) were applied to evaluate gains in soil health as a result of the practices implemented by the producers in the soil health demonstration trial; and

‘‘(C)(i) not later than September 30, 2020, to initiate a study regarding changes in soil health and, if feasible, economic outcomes, generated as a result of the conserva- tion practices described in subparagraph (A) that were applied by producers through the soil health demonstration trial; and

‘‘(ii) to submit to the Committee on Agriculture of the House of Representatives and the Committee on Agri- culture, Nutrition, and Forestry of the Senate annual reports on the progress and results of the study under clause (i).

‘‘(d) REPORTING AND DATABASE.— ‘‘(1) REPORT REQUIRED.—Not later than September 30,

2019, and every 2 years thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representa- tives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the status of activities funded under this section, including—

‘‘(A) funding awarded; ‘‘(B) results of the activities, including, if feasible, eco-

nomic outcomes; ‘‘(C) incorporation of findings from the activities, such

as new technology and innovative approaches, into the conservation efforts implemented by the Secretary; and

‘‘(D) on completion of the study required under sub- section (c)(7)(C), the findings of the study. ‘‘(2) CONSERVATION PRACTICE DATABASE.—

‘‘(A) IN GENERAL.—The Secretary shall use the data reported under paragraph (1) to establish and maintain a publicly available conservation practice database that provides—

‘‘(i) a compilation and analysis of effective con- servation practices for soil health, nutrient manage- ment, and source water protection in varying soil com- positions, cropping systems, slopes, and landscapes; and

‘‘(ii) a list of recommended new and effective con- servation practices. ‘‘(B) PRIVACY.—Information provided under subpara-

graph (A) shall be transformed into a statistical or aggre- gate form so as to not include any identifiable or personal information of individual producers.’’.

SEC. 2308. CONSERVATION STEWARDSHIP PROGRAM.

(a) DEFINITIONS.—Section 1240I of the Food Security Act of 1985 (as redesignated by section 2301(b)) is amended—

(1) in paragraph (2)(B)— (A) in clause (i), by striking ‘‘and’’ at the end; (B) in clause (ii), by striking the period at the end

and inserting a semicolon; and (C) by adding at the end the following:

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132 STAT. 4565PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(iii) development of a comprehensive conservation plan, as defined in section 1240L(e)(1);

‘‘(iv) soil health planning, including planning to increase soil organic matter; and

‘‘(v) activities that will assist a producer to adapt to, or mitigate against, increasing weather volatility.’’; and

(2) in paragraph (7), by striking the period at the end and inserting the following: ‘‘through the use of—

‘‘(A) quality criteria under a resource management system;

‘‘(B) predictive analytics tools or models developed or approved by the Natural Resources Conservation Service;

‘‘(C) data from past and current enrollment in the program; and

‘‘(D) other methods that measure conservation and improvement in priority resource concerns, as determined by the Secretary.’’.

(b) CONSERVATION STEWARDSHIP PROGRAM.— (1) ESTABLISHMENT.—Subsection (a) of section 1240J of

the Food Security Act of 1985 (as redesignated by section 2301(b)) is amended in the matter preceding paragraph (1) by striking ‘‘2014 through 2018’’ and inserting ‘‘2019 through 2023’’.

(2) EXCLUSIONS.—Subsection (b)(2) of section 1240J of the Food Security Act of 1985 (as redesignated by section 2301(b)) is amended in the matter preceding paragraph (1) by striking ‘‘the Agricultural Act of 2014’’ and inserting the ‘‘Agriculture Improvement Act of 2018’’. (c) STEWARDSHIP CONTRACTS.—Section 1240K of the Food Secu-

rity Act of 1985 (as redesignated by section 2301(b)) is amended— (1) in subsection (b), by striking paragraph (1) and inserting

the following: ‘‘(1) RANKING OF APPLICATIONS.—

‘‘(A) IN GENERAL.—In evaluating contract offers sub- mitted under subsection (a) and contract renewals under subsection (e), the Secretary shall rank applications based on—

‘‘(i) the natural resource conservation and environ- mental benefits that result from the conservation treat- ment on all applicable priority resource concerns at the time of submission of the application;

‘‘(ii) the degree to which the proposed conservation activities increase natural resource conservation and environmental benefits; and

‘‘(iii) other consistent criteria, as determined by the Secretary. ‘‘(B) ADDITIONAL CRITERION.—If 2 or more applications

receive the same ranking under subparagraph (A), the Secretary shall rank those contracts based on the extent to which the actual and anticipated conservation benefits from each contract are provided at the lowest cost relative to other similarly beneficial contract offers.’’; (2) in subsection (c)—

(A) by striking ‘‘the program under subsection (a)’’ and inserting ‘‘a contract or contract renewal under this section’’;

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132 STAT. 4566 PUBLIC LAW 115–334—DEC. 20, 2018

(B) by inserting ‘‘or contract renewal’’ before ‘‘offer ranks’’;

(C) by inserting ‘‘or contract renewal’’ after ‘‘steward- ship contract’’; and

(D) by adding ‘‘or contract renewal’’ before the period at the end; (3) in subsection (d)(2)(A), by striking ‘‘1238G(d)’’ and

inserting ‘‘1240L(c)’’; and (4) in subsection (e)—

(A) in the matter preceding paragraph (1), by striking ‘‘At the end’’ and all that follows through ‘‘period’’ the second place it appears and inserting the following: ‘‘The Secretary may provide the producer an opportunity to renew an existing contract in the first half of the fifth year of the contract period’’;

(B) in paragraph (1), by striking ‘‘initial’’ and inserting ‘‘existing’’;

(C) in paragraph (2)— (i) by inserting ‘‘new or improved’’ after ‘‘integrate’’;

and (ii) by inserting ‘‘demonstrating continued improve-

ment during the additional 5-year period,’’ after ‘‘oper- ation,’’; and (D) in paragraph (3)(B), by striking ‘‘to exceed the

stewardship threshold of’’ and inserting ‘‘to adopt or improve conservation activities, as determined by the Sec- retary, to achieve higher levels of performance with respect to not less than’’.

(d) DUTIES OF SECRETARY.—Section 1240L of the Food Security Act of 1985 (as redesignated by section 2301(b)) is amended—

(1) in subsection (b), in the matter preceding paragraph (1), by striking ‘‘acres’’ and inserting ‘‘funding’’;

(2) by striking subsection (c); (3) by redesignating subsections (d) and (e) as subsections

(c) and (d), respectively; (4) in subsection (c) (as so redesignated), by adding at

the end the following: ‘‘(5) PAYMENT FOR COVER CROP ACTIVITIES.—The amount

of a payment under this subsection for cover crop activities shall be not less than 125 percent of the annual payment amount determined by the Secretary under paragraph (2).’’;

(5) in subsection (d) (as so redesignated)— (A) in the subsection heading, by inserting ‘‘AND

ADVANCED GRAZING MANAGEMENT’’ after ‘‘ROTATIONS’’; (B) by striking paragraph (2); (C) by redesignating paragraphs (1) and (4) as para-

graphs (2) and (1), respectively, and moving the paragraphs so as to appear in numerical order;

(D) in paragraph (1) (as so redesignated)— (i) by redesignating subparagraphs (A) through (D)

and (E) as clauses (i) through (iv) and (vi), respectively, and indenting appropriately;

(ii) by striking the paragraph designation and all that follows through ‘‘the term’’ in the matter preceding clause (i) (as so redesignated) and inserting the fol- lowing:

‘‘(1) DEFINITIONS.—In this subsection:

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132 STAT. 4567PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) ADVANCED GRAZING MANAGEMENT.—The term ‘advanced grazing management’ means the use of a com- bination of grazing practices (as determined by the Sec- retary), which may include management-intensive rota- tional grazing, that provide for—

‘‘(i) improved soil health and carbon sequestration; ‘‘(ii) drought resilience; ‘‘(iii) wildlife habitat; ‘‘(iv) wildfire mitigation; ‘‘(v) control of invasive plants; and ‘‘(vi) water quality improvement.

‘‘(B) MANAGEMENT-INTENSIVE ROTATIONAL GRAZING.— The term ‘management-intensive rotational grazing’ means a strategic, adaptively managed multipasture grazing system in which animals are regularly and systematically moved to fresh pasture in a manner that—

‘‘(i) maximizes the quantity and quality of forage growth;

‘‘(ii) improves manure distribution and nutrient cycling;

‘‘(iii) increases carbon sequestration from greater forage harvest;

‘‘(iv) improves the quality and quantity of cover for wildlife;

‘‘(v) provides permanent cover to protect the soil from erosion; and

‘‘(vi) improves water quality. ‘‘(C) RESOURCE-CONSERVING CROP ROTATION.—The

term’’; and (iii) in subparagraph (C) (as so designated)—

(I) in clause (iv) (as so redesignated), by striking ‘‘and’’ at the end; and

(II) by inserting after clause (iv) (as so redesig- nated) the following: ‘‘(v) builds soil organic matter; and’’;

(E) in paragraph (2) (as so redesignated), by striking ‘‘improve resource-conserving’’ and all that follows through the period at the end and inserting the following: ‘‘improve, manage, and maintain—

‘‘(A) resource-conserving crop rotations; or ‘‘(B) advanced grazing management.’’; (F) in paragraph (3)—

(i) by striking ‘‘paragraph (1)’’ and inserting ‘‘para- graph (2)’’; and

(ii) by striking ‘‘and maintain’’ and all that follows through the period at the end and inserting ‘‘or improve, manage, and maintain resource-conserving crop rotations or advanced grazing management for the term of the contract.’’; and (G) by adding at the end the following:

‘‘(4) AMOUNT OF PAYMENT.—An additional payment pro- vided under paragraph (2) shall be not less than 150 percent of the annual payment amount determined by the Secretary under subsection (c)(2).’’;

(6) by inserting after subsection (d) (as so redesignated) the following: ‘‘(e) PAYMENT FOR COMPREHENSIVE CONSERVATION PLAN.—

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132 STAT. 4568 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(1) DEFINITION OF COMPREHENSIVE CONSERVATION PLAN.— In this subsection, the term ‘comprehensive conservation plan’ means a conservation plan that meets or exceeds the steward- ship threshold for each priority resource concern identified by the Secretary under subsection (a)(2).

‘‘(2) PAYMENT FOR COMPREHENSIVE CONSERVATION PLAN.— The Secretary shall provide a 1-time payment to a producer that develops a comprehensive conservation plan.

‘‘(3) AMOUNT OF PAYMENT.—The Secretary shall determine the amount of payment under paragraph (2) based on—

‘‘(A) the number of priority resource concerns addressed in the comprehensive conservation plan; and

‘‘(B) the number of types of land uses included in the comprehensive conservation plan.’’; (7) in subsection (f), by striking ‘‘2014 through 2018’’ and

inserting ‘‘2019 through 2023’’; (8) in subsection (h)—

(A) by striking the subsection designation and heading and all that follows through ‘‘The Secretary’’ and inserting the following:

‘‘(h) ORGANIC CERTIFICATION.— ‘‘(1) COORDINATION.—The Secretary’’; and

(B) by adding at the end the following: ‘‘(2) ALLOCATION.—

‘‘(A) IN GENERAL.—Using funds made available for the program for each of fiscal years 2019 through 2023, the Secretary shall allocate funding to States to support organic production and transition to organic production through paragraph (1).

‘‘(B) DETERMINATION.—The Secretary shall determine the allocation to a State under subparagraph (A) based on—

‘‘(i) the number of certified and transitioning organic operations within the State; and

‘‘(ii) the number of acres of certified and transitioning organic production within the State.’’; and

(9) by adding at the end the following: ‘‘(j) STREAMLINING AND COORDINATION.—To the maximum

extent feasible, the Secretary shall provide for streamlined and coordinated procedures for the program and the environmental quality incentives program under subchapter A, including applica- tions, contracting, conservation planning, conservation practices, and related administrative procedures.

‘‘(k) SOIL HEALTH.—To the maximum extent feasible, the Sec- retary shall manage the program to enhance soil health.

‘‘(l) ANNUAL REPORT.—Each fiscal year, the Secretary shall submit to the Committee on Agriculture of the House of Representa- tives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the payment rates for conservation activities offered to producers under the program and an analysis of whether payment rates can be reduced for the most expensive conservation activities.’’.

SEC. 2309. GRASSLAND CONSERVATION INITIATIVE.

Subchapter B of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (as added by subsections (a)(2) and (b) of section 2301) is amended by adding at the end the following:

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132 STAT. 4569PUBLIC LAW 115–334—DEC. 20, 2018

‘‘SEC. 1240L–1. GRASSLAND CONSERVATION INITIATIVE.

‘‘(a) DEFINITIONS.—In this section: ‘‘(1) ELIGIBLE LAND.—Notwithstanding sections 1240I(4)

and 1240J(b)(2), the term ‘eligible land’ means cropland on a farm for which base acres have been maintained by the Secretary under section 1112(d)(3) of the Agricultural Act of 2014 (7 U.S.C. 9012(d)(3)).

‘‘(2) INITIATIVE.—The term ‘initiative’ means the grassland conservation initiative established under subsection (b). ‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall estab-

lish within the program a grassland conservation initiative for the purpose of assisting producers in protecting grazing uses, con- serving and improving soil, water, and wildlife resources, and achieving related conservation values by conserving eligible land through grassland conservation contracts under subsection (e).

‘‘(c) ELECTION.—Beginning in fiscal year 2019, the Secretary shall provide a 1-time election to enroll eligible land in the initiative under a contract described in subsection (e).

‘‘(d) METHOD OF ENROLLMENT.—The Secretary shall— ‘‘(1) notwithstanding subsection (b) of section 1240K, deter-

mine under subsection (c) of that section that eligible land ranks sufficiently high under the evaluation criteria described in subsection (b) of that section; and

‘‘(2) enroll the eligible land in the initiative under a contract described in subsection (e). ‘‘(e) GRASSLAND CONSERVATION CONTRACT.—

‘‘(1) IN GENERAL.—Notwithstanding section 1240K(a)(1), to enroll eligible land in the initiative under a grassland conserva- tion contract, a producer shall agree—

‘‘(A) to meet or exceed the stewardship threshold for not less than 1 priority resource concern by the date on which the contract expires; and

‘‘(B) to comply with the terms and conditions of the contract. ‘‘(2) TERMS.—A grassland conservation contract entered

into under this section shall— ‘‘(A)(i) be for a single 5-year term; and ‘‘(ii) not be subject to renewal or reenrollment under

section 1240K(e); and ‘‘(B) be subject to section 1240K(d).

‘‘(3) EARLY TERMINATION.—The Secretary shall allow a pro- ducer that enters into a grassland conservation contract under this section—

‘‘(A) to terminate the contract at any time; and ‘‘(B) to retain payments already received under the

contract. ‘‘(f) GRASSLAND CONSERVATION PLAN.—The grassland conserva-

tion plan developed for eligible land shall be limited to— ‘‘(1) eligible land; and ‘‘(2) resource concerns and activities relating to grassland.

‘‘(g) PAYMENTS.— ‘‘(1) IN GENERAL.—Beginning in fiscal year 2019, of the

funds made available for this subchapter under section 1241(a)(3)(B), and notwithstanding any payment under title I of the Agriculture Improvement Act of 2018, an amendment made by that title, or section 1240L(c), the Secretary shall make annual grassland conservation contract payments to the

16 USC 3839aa–25.

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132 STAT. 4570 PUBLIC LAW 115–334—DEC. 20, 2018

producer of any eligible land that is the subject of a grassland conservation contract under this section.

‘‘(2) PAYMENT NONELIGIBILITY.—A grassland conservation contract under this section shall not be—

‘‘(A) eligible for payments under section 1240L(d); or ‘‘(B) subject to the payment limitations under this sub-

chapter. ‘‘(3) LIMITATION.—The amount of an annual payment under

this subsection shall be $18 per acre, not to exceed the number of base acres on a farm. ‘‘(h) CONSIDERED PLANTED.—The Secretary shall consider land

enrolled under a grassland conservation contract under this section during a crop year to be planted or considered planted to a covered commodity (as defined in section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011)) during that crop year.

‘‘(i) OTHER CONTRACTS.—A producer with an agricultural oper- ation that contains land eligible under this section and land eligible under section 1240K—

‘‘(1) may enroll the land eligible under this section through a contract under this section or under section 1240K; and

‘‘(2) shall not be prohibited from enrolling the land eligible under section 1240K through a contract under section 1240K.’’.

Subtitle D—Other Conservation Programs

SEC. 2401. WATERSHED PROTECTION AND FLOOD PREVENTION.

(a) ASSISTANCE TO LOCAL ORGANIZATIONS.—Section 3 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1003) is amended—

(1) by striking the section designation and all that follows through ‘‘In order to assist’’ and inserting the following:

‘‘SEC. 3. ASSISTANCE TO LOCAL ORGANIZATIONS.

‘‘(a) IN GENERAL.—In order to assist’’; and (2) by adding at the end the following:

‘‘(b) WAIVER.—The Secretary may waive the watershed plan for works of improvement if the Secretary determines that—

‘‘(1) the watershed plan is unnecessary or duplicative; and ‘‘(2) the works of improvement are otherwise consistent

with applicable requirements under section 4.’’. (b) AUTHORIZATION OF APPROPRIATIONS.—Section 14(h)(2)(E) of

the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(c) FUNDS OF COMMODITY CREDIT CORPORATION.—The Water- shed Protection and Flood Prevention Act (16 U.S.C. 1001 et seq.) is amended by adding at the end the following:

‘‘SEC. 15. FUNDING.

‘‘In addition to any other funds made available by this Act, of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this Act $50,000,000 for fiscal year 2019 and each fiscal year thereafter.’’.

SEC. 2402. SOIL AND WATER RESOURCES CONSERVATION.

The Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2001 et seq.) is amended—

16 USC 1012a.

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132 STAT. 4571PUBLIC LAW 115–334—DEC. 20, 2018

(1) in section 5(e) (16 U.S.C. 2004(e)), by striking ‘‘and December 31, 2015’’ and inserting ‘‘December 31, 2015, and December 31, 2022’’;

(2) in section 6(d) (16 U.S.C. 2005(d)), by striking ‘‘, respec- tively’’ and inserting ‘‘, and a program update shall be completed by December 31, 2023’’;

(3) in section 7 (16 U.S.C. 2006)— (A) in subsection (a), by striking ‘‘and 2016’’ and

inserting ‘‘, 2016, and 2022’’; and (B) in subsection (b), in the matter preceding paragraph

(1), by striking ‘‘and 2017’’ and inserting ‘‘, 2017, and 2023’’; and (4) in section 10 (16 U.S.C. 2009), by striking ‘‘2018’’ and

inserting ‘‘2023’’.

SEC. 2403. EMERGENCY CONSERVATION PROGRAM.

(a) REPAIR OR REPLACEMENT OF FENCING.— (1) IN GENERAL.—Section 401 of the Agricultural Credit

Act of 1978 (16 U.S.C. 2201) is amended— (A) by inserting ‘‘wildfires,’’ after ‘‘hurricanes,’’; (B) by striking the section designation and all that

follows through ‘‘The Secretary of Agriculture’’ and inserting the following:

‘‘SEC. 401. EMERGENCY CONSERVATION PROGRAM.

‘‘(a) IN GENERAL.—The Secretary of Agriculture (referred to in this title as the ‘Secretary’)’’; and

(C) by adding at the end the following: ‘‘(b) REPAIR OR REPLACEMENT OF FENCING.—

‘‘(1) IN GENERAL.—With respect to a payment to an agricul- tural producer under subsection (a) for the repair or replace- ment of fencing, the Secretary shall give the agricultural pro- ducer the option of receiving not more than 25 percent of the payment, determined by the Secretary based on the applicable percentage of the fair market value of the cost of the repair or replacement, before the agricultural producer carries out the repair or replacement.

‘‘(2) RETURN OF FUNDS.—If the funds provided under para- graph (1) are not expended by the end of the 60-day period beginning on the date on which the agricultural producer receives those funds, the funds shall be returned within a reasonable timeframe, as determined by the Secretary.’’.

(2) CONFORMING AMENDMENTS.— (A) Sections 402, 403, 404, and 405 of the Agricultural

Credit Act of 1978 (16 U.S.C. 2202, 2203, 2204, 2205) are amended by striking ‘‘Secretary of Agriculture’’ each place it appears and inserting ‘‘Secretary’’.

(B) Section 407(a) of the Agricultural Credit Act of 1978 (16 U.S.C. 2206(a)) is amended by striking paragraph (4).

(b) COST SHARE PAYMENTS.—Title IV of the Agricultural Credit Act of 1978 is amended by inserting after section 402 (16 U.S.C. 2202) the following:

‘‘SEC. 402A. COST-SHARE REQUIREMENT.

‘‘(a) COST-SHARE RATE.—Subject to subsections (b) and (c), the maximum cost-share payment under sections 401 and 402 shall

16 USC 2202a.

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132 STAT. 4572 PUBLIC LAW 115–334—DEC. 20, 2018

not exceed 75 percent of the total allowable cost, as determined by the Secretary.

‘‘(b) EXCEPTION.—Notwithstanding subsection (a), a payment to a limited resource farmer or rancher, a socially disadvantaged farmer or rancher (as defined in subsection (a) of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279), or a beginning farmer or rancher under section 401 or 402 shall not exceed 90 percent of the total allowable cost, as determined by the Secretary.

‘‘(c) LIMITATION.—The total payment under sections 401 and 402 for a single event may not exceed 50 percent of the agriculture value of the land, as determined by the Secretary.’’.

(c) PAYMENT LIMITATIONS.—Title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.) is amended by inserting after section 402A (as added by subsection (b)) the following: ‘‘SEC. 402B. PAYMENT LIMITATION.

‘‘The maximum payment made under the emergency conserva- tion program to an agricultural producer under sections 401 and 402 shall not exceed $500,000.’’.

(d) WATERSHED PROTECTION PROGRAM.—Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) is amended—

(1) by striking the section heading and inserting ‘‘EMER- GENCY WATERSHED PROGRAM’’; and

(2) in subsection (a), by inserting ‘‘watershed protection’’ after ‘‘emergency’’. (e) FUNDING AND ADMINISTRATION.—Section 404 of the Agricul-

tural Credit Act of 1978 (16 U.S.C. 2204) is amended— (1) in the fourth sentence, by striking ‘‘The Corporation’’

and inserting the following: ‘‘(d) LIMITATION.—The Commodity Credit Corporation’’;

(2) in the third sentence (as amended by subsection (a)(2)(A)), by striking ‘‘In implementing the provisions of’’ and inserting the following: ‘‘(c) USE OF COMMODITY CREDIT CORPORATION.—In imple-

menting’’; (3) by striking the second sentence; (4) by striking the section designation and all that follows

through ‘‘There are authorized’’ in the first sentence and inserting the following:

‘‘SEC. 404. FUNDING AND ADMINISTRATION.

‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There are author- ized’’;

(5) in subsection (a) (as so designated), by inserting ‘‘, to remain available until expended’’ before the period at the end; and

(6) by inserting after subsection (a) (as so designated) the following: ‘‘(b) SET-ASIDE FOR FENCING.—Of the amounts made available

under subsection (a) for a fiscal year, 25 percent shall be set aside until April 1 of that fiscal year for the repair or replacement of fencing.’’. SEC. 2404. CONSERVATION OF PRIVATE GRAZING LAND.

Section 1240M of the Food Security Act of 1985 (16 U.S.C. 3839bb) is amended—

(1) in subsection (c)(2), by adding at the end the following:

16 USC 2202b.

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132 STAT. 4573PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(C) PARTNERSHIPS.—In carrying out the program under this section, the Secretary shall provide education and outreach activities through partnerships with—

‘‘(i) land-grant colleges and universities (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and

‘‘(ii) nongovernmental organizations.’’; and (2) in subsection (e), by striking ‘‘2018’’ and inserting

‘‘2023’’.

SEC. 2405. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 1240O(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)(1)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(b) AVAILABILITY OF FUNDS.—Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) is amended by adding at the end the following:

‘‘(3) ADDITIONAL FUNDING.—In addition to any other funds made available under this subsection, of the funds of the Com- modity Credit Corporation, the Secretary shall use $5,000,000 beginning in fiscal year 2019, to remain available until expended.’’.

SEC. 2406. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PRO- GRAM.

Section 1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb–5) is amended—

(1) in subsections (a) and (c), by striking ‘‘grants’’ each place it appears and inserting ‘‘funding’’;

(2) in subsections (b) and (d)(2), by striking ‘‘a grant’’ each place it appears and inserting ‘‘funding’’;

(3) in subsection (c)(3) (as amended by section 2202(b)(1)), by inserting ‘‘or on land covered by a wetland reserve easement under section 1265C’’ before ‘‘by providing’’; and

(4) in subsection (f)— (A) in paragraph (1)—

(i) by striking ‘‘2012 and’’ and inserting ‘‘2012,’’; and

(ii) by inserting ‘‘, and $50,000,000 for the period of fiscal years 2019 through 2023’’ before the period at the end; (B) by redesignating paragraph (2) as paragraph (3);

and (C) by inserting after paragraph (1) the following:

‘‘(2) ENHANCED PUBLIC ACCESS TO WETLAND RESERVE EASE- MENTS.—To the maximum extent practicable, of the funds made available under paragraph (1), the Secretary shall use $3,000,000 for the period of fiscal years 2019 through 2023 to encourage public access to land covered by wetland reserve easements under section 1265C through agreements with States and tribal governments under this section.’’.

SEC. 2407. WILDLIFE MANAGEMENT.

(a) IN GENERAL.—The Secretary and the Secretary of the Interior shall continue to carry out the Working Lands for Wildlife model of conservation on working landscapes, as implemented on

16 USC 1531 note.

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132 STAT. 4574 PUBLIC LAW 115–334—DEC. 20, 2018

the day before the date of enactment of this Act, in accordance with—

(1) the document entitled ‘‘Partnership Agreement Between the United States Department of Agriculture Natural Resources Conservation Service and the United States Department of the Interior Fish and Wildlife Service’’, numbered A–3A7516– 937, and formalized by the Chief of the Natural Resources Conservation Service on September 15, 2016, and by the Director of the United States Fish and Wildlife Service on August 4, 2016, as in effect on September 15, 2016; and

(2) United States Fish and Wildlife Service Director’s Order No. 217, dated August 9, 2016, as in effect on August 9, 2016. (b) EXPANSION OF MODEL.—The Secretary and the Secretary

of the Interior may expand the conservation model described in subsection (a) through a new partnership agreement between the Farm Service Agency and the United States Fish and Wildlife Service for the purpose of carrying out conservation activities for species conservation.

(c) EXTENSION OF PERIOD OF REGULATORY PREDICTABILITY.— (1) DEFINITION OF PERIOD OF REGULATORY PREDICT-

ABILITY.—In this subsection, the term ‘‘period of regulatory predictability’’ means the period of regulatory predictability under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) initially determined in accordance with the document and order described in paragraphs (1) and (2), respectively, of subsection (a).

(2) EXTENSION.—After the period of regulatory predict- ability, on request of the Secretary, the Secretary of the Interior, acting through the Director of the United States Fish and Wildlife Service, may provide additional consultation under section 7(a)(2) of the Endangered Species Act of 1973 (16 U.S.C. 1536(a)(2)), or additional conference under section 7(a)(4) of that Act (16 U.S.C. 1536(a)(4)), as applicable, with the Chief of the Natural Resources Conservation Service or the Adminis- trator of the Farm Service Agency, as applicable, to extend the period of regulatory predictability.

SEC. 2408. FERAL SWINE ERADICATION AND CONTROL PILOT PRO- GRAM.

(a) IN GENERAL.—The Secretary shall establish a feral swine eradication and control pilot program to respond to the threat feral swine pose to agriculture, native ecosystems, and human and animal health.

(b) DUTIES OF THE SECRETARY.—In carrying out the pilot pro- gram, the Secretary shall—

(1) study and assess the nature and extent of damage to the pilot areas caused by feral swine;

(2) develop methods to eradicate or control feral swine in the pilot areas;

(3) develop methods to restore damage caused by feral swine; and

(4) provide financial assistance to agricultural producers in pilot areas. (c) ASSISTANCE.—The Secretary may provide financial assist-

ance to agricultural producers under the pilot program to implement methods to—

(1) eradicate or control feral swine in the pilot areas; and

7 USC 8351 note.

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132 STAT. 4575PUBLIC LAW 115–334—DEC. 20, 2018

(2) restore damage caused by feral swine. (d) COORDINATION.—The Secretary shall ensure that the Nat-

ural Resources Conservation Service and the Animal and Plant Health Inspection Service coordinate for purposes of this section through State technical committees established under section 1261(a) of the Food Security Act of 1985 (16 U.S.C. 3861(a)).

(e) PILOT AREAS.—The Secretary shall carry out the pilot pro- gram in areas of States in which feral swine have been identified as a threat to agriculture, native ecosystems, or human or animal health, as determined by the Secretary.

(f) COST SHARING.— (1) FEDERAL SHARE.—The Federal share of the costs of

activities under the pilot program may not exceed 75 percent of the total costs of such activities.

(2) IN-KIND CONTRIBUTIONS.—The non-Federal share of the costs of activities under the pilot program may be provided in the form of in-kind contributions of materials or services. (g) FUNDING.—

(1) MANDATORY FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $75,000,000 for the period of fiscal years 2019 through 2023.

(2) DISTRIBUTION OF FUNDS.—Of the funds made available under paragraph (1)—

(A) 50 percent shall be allocated to the Natural Resources Conservation Service to carry out the pilot pro- gram, including the provision of financial assistance to producers for on-farm trapping and technology related to capturing and confining feral swine; and

(B) 50 percent shall be allocated to the Animal and Plant Health Inspection Service to carry out the pilot pro- gram, including the use of established, and testing of innovative, population reduction methods. (3) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more

than 10 percent of funds made available under this section may be used for administrative expenses of the pilot program.

SEC. 2409. REPORT ON SMALL WETLANDS.

(a) IN GENERAL.—The Secretary, acting through the Chief of the Natural Resources Conservation Service, shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the number of wetlands with an area not more than 1 acre that have been delineated in each of the States of North Dakota, South Dakota, Minnesota, and Iowa during fiscal years 2014 through 2018.

(b) REQUIREMENT.—In the report under subsection (a), the Sec- retary, acting through the Chief of the Natural Resources Conserva- tion Service, shall list the number of wetlands acres in each State described in the report by tenths of an acre, and ensure the report is based on the best available science. SEC. 2410. SENSE OF CONGRESS RELATING TO INCREASED WATER-

SHED-BASED COLLABORATION.

It is the sense of Congress that the Federal Government should recognize and encourage partnerships at the watershed level between nonpoint sources and regulated point sources to advance the goals of the Federal Water Pollution Control Act (33 U.S.C.

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132 STAT. 4576 PUBLIC LAW 115–334—DEC. 20, 2018

1251 et seq.) and provide benefits to farmers, landowners, and the public.

Subtitle E—Funding and Administration

SEC. 2501. COMMODITY CREDIT CORPORATION.

(a) ANNUAL FUNDING.—Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended—

(1) in the matter preceding paragraph (1), by striking ‘‘2018 (and fiscal year 2019 in the case of the program specified in paragraph (5))’’ and inserting ‘‘2023’’;

(2) in paragraph (1)— (A) in subparagraph (A), by striking ‘‘$10,000,000 for

the period of fiscal years 2014 through 2018’’ and inserting ‘‘$12,000,000 for the period of fiscal years 2019 through 2023’’; and

(B) in subparagraph (B)— (i) by striking ‘‘$33,000,000 for the period of fiscal

years 2014 through 2018’’ and inserting ‘‘$50,000,000 for the period of fiscal years 2019 through 2023, including not more than $5,000,000 to provide outreach and technical assistance,’’; and

(ii) by striking ‘‘retired or retiring owners and operators’’ and inserting ‘‘contract holders’’;

(3) in paragraph (2)— (A) in subparagraph (D), by striking ‘‘and’’ at the end; (B) in subparagraph (E), by striking the period at

the end and inserting ‘‘; and’’; and (C) by adding at the end the following: ‘‘(F) $450,000,000 for each of fiscal years 2019 through

2023.’’; (4) by striking paragraph (3) and inserting the following: ‘‘(3) The programs under chapter 4, using, to the maximum

extent practicable— ‘‘(A) for the environmental quality incentives program

under subchapter A of that chapter— ‘‘(i) $1,750,000,000 for fiscal year 2019; ‘‘(ii) $1,750,000,000 for fiscal year 2020; ‘‘(iii) $1,800,000,000 for fiscal year 2021; ‘‘(iv) $1,850,000,000 for fiscal year 2022; and ‘‘(v) $2,025,000,000 for fiscal year 2023; and

‘‘(B) for the conservation stewardship program under subchapter B of that chapter—

‘‘(i) $700,000,000 for fiscal year 2019; ‘‘(ii) $725,000,000 for fiscal year 2020; ‘‘(iii) $750,000,000 for fiscal year 2021; ‘‘(iv) $800,000,000 for fiscal year 2022; and ‘‘(v) $1,000,000,000 for fiscal year 2023.’’;

(5) in paragraph (4), by inserting ‘‘(as in effect on the day before the date of enactment of the Agriculture Improve- ment Act of 2018), using such sums as are necessary to admin- ister contracts entered into before that date of enactment’’ before the period at the end; and

(6) by striking paragraph (5). (b) AVAILABILITY OF FUNDS.—Section 1241(b) of the Food Secu-

rity Act of 1985 (16 U.S.C. 3841(b)) is amended by striking ‘‘2018

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132 STAT. 4577PUBLIC LAW 115–334—DEC. 20, 2018

(and fiscal year 2019 in the case of the program specified in sub- section (a)(5))’’ and inserting ‘‘2023’’.

(c) REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE.—Sec- tion 1241(i) of the Food Security Act of 1985 (16 U.S.C. 3841(i)) is amended to read as follows:

‘‘(i) REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE.— Not later than December 15 of each of calendar years 2019 through 2023, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report containing statistics by State related to enrollments in conservation programs under this title, as follows:

‘‘(1) The annual and current cumulative activity reflecting active agreement and contract enrollment statistics.

‘‘(2) Secretarial exceptions, waivers, and significant pay- ments, including—

‘‘(A) payments made under the agricultural conserva- tion easement program for easements valued at $250,000 or greater;

‘‘(B) payments made under the regional conservation partnership program subject to the waiver of adjusted gross income limitations pursuant to section 1271C(c)(3);

‘‘(C) waivers granted by the Secretary under section 1001D(b)(3);

‘‘(D) exceptions and activity associated with section 1240B(h)(2); and

‘‘(E) exceptions provided by the Secretary under section 1265B(b)(2)(B)(ii).’’.

(d) ALLOCATIONS REVIEW AND UPDATE.—Section 1241(g) of the Food Security Act of 1985 (16 U.S.C. 3841(g)) is amended—

(1) in paragraph (1)— (A) by striking ‘‘January’’ and all that follows through

‘‘shall’’ and inserting ‘‘1 year after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary, acting through the Chief of the Natural Resources Con- servation Service and the Administrator of the Farm Service Agency, shall’’;

(B) by inserting ‘‘annual’’ after ‘‘utilize’’; and (C) by inserting ‘‘relevant data on local natural

resource concerns, resource inventories, evaluations and reports, recommendations from State technical committees established under section 1261(a),’’ after ‘‘accounting for’’; and (2) in paragraph (2)—

(A) by striking ‘‘that the formulas’’ and inserting the following: ‘‘that—

‘‘(A) the formulas’’; (B) in subparagraph (A) (as so designated), by striking

the period at the end and inserting a semicolon; and (C) by adding at the end the following: ‘‘(B) to the maximum extent practicable, local natural

resource concerns are considered a leading factor in deter- mining annual funding allocation to States;

‘‘(C) the process used at the national level to evaluate State budget proposals and to allocate funds is reviewed annually to assess the effect of allocations in addressing identified natural resource priorities and objectives; and

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132 STAT. 4578 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(D) the allocation of funds to States addresses priority natural resource concerns and objectives.’’.

(e) ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR CON- SERVATION ACCESS.—Section 1241(h) of the Food Security Act of 1985 (16 U.S.C. 3841(h)) is amended—

(1) in paragraph (1)— (A) by redesignating subparagraphs (A) and (B) as

clauses (i) and (ii), respectively, and indenting appro- priately;

(B) in the matter preceding clause (i) (as so redesig- nated), by striking ‘‘Of the funds’’ and inserting the fol- lowing:

‘‘(A) FISCAL YEARS 2009 THROUGH 2018.—Of the funds’’; and

(C) by adding at the end the following: ‘‘(B) FISCAL YEARS 2019 THROUGH 2023.—Of the funds

made available for each of fiscal years 2019 through 2023 to carry out the environmental quality incentives program under subchapter A of chapter 4 of subtitle D and the conservation stewardship program under subchapter B of chapter 4 of subtitle D, the Secretary shall use, to the maximum extent practicable—

‘‘(i) 5 percent to assist beginning farmers or ranchers; and

‘‘(ii) 5 percent to assist socially disadvantaged farmers or ranchers.’’;

(2) in paragraph (2), by inserting ‘‘and, in the case of fiscal years 2019 through 2023, under the conservation steward- ship program under subchapter B of chapter 4 of subtitle D’’ before the period at the end;

(3) in paragraph (3), by striking ‘‘year, acres not obligated under paragraph (1)’’ and inserting ‘‘year through fiscal year 2018, acres not obligated under paragraph (1)(A)’’; and

(4) in paragraph (4), by striking ‘‘subparagraph (A) or (B) of paragraph (1)’’ and inserting ‘‘, as applicable, clause (i) or (ii) of paragraph (1)(A) or clause (i) or (ii) of paragraph (1)(B)’’. (f) CONSERVATION STANDARDS AND REQUIREMENTS.—Section

1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by adding at the end the following:

‘‘(j) CONSERVATION STANDARDS AND REQUIREMENTS.— ‘‘(1) IN GENERAL.—Subject to the requirements of this title,

the Natural Resources Conservation Service shall serve as the lead agency in developing and establishing technical standards and requirements for conservation programs carried out under this title, including—

‘‘(A) standards for conservation practices under this title;

‘‘(B) technical guidelines for implementing conservation practices under this title, including the location of the conservation practices; and

‘‘(C) standards for conservation plans. ‘‘(2) CONSISTENCY OF FARM SERVICE AGENCY TECHNICAL

STANDARDS AND PAYMENT RATES.—The Administrator of the Farm Service Agency shall ensure that—

‘‘(A) technical standards of programs administered by the Farm Service Agency are consistent with the technical

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132 STAT. 4579PUBLIC LAW 115–334—DEC. 20, 2018

standards established by the Natural Resources Conserva- tion Service under paragraph (1); and

‘‘(B) payment rates, to the extent practicable, are con- sistent between the Farm Service Agency and the Natural Resources Conservation Service.’’.

SEC. 2502. DELIVERY OF TECHNICAL ASSISTANCE.

(a) DEFINITIONS.—Section 1242(a) of the Food Security Act of 1985 (16 U.S.C. 3842(a)) is amended to read as follows:

‘‘(a) DEFINITIONS.—In this section: ‘‘(1) ELIGIBLE PARTICIPANT.—The term ‘eligible participant’

means a producer, landowner, or entity that is participating in, or seeking to participate in, programs in which the producer, landowner, or entity is otherwise eligible to participate under this title or the agricultural management assistance program under section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)).

‘‘(2) THIRD-PARTY PROVIDER.—The term ‘third-party pro- vider’ means a commercial entity (including a farmer coopera- tive, agriculture retailer, or other commercial entity (as defined by the Secretary)), a nonprofit entity, a State or local govern- ment (including a conservation district), or a Federal agency, that has expertise in the technical aspect of conservation plan- ning, including nutrient management planning, watershed planning, or environmental engineering.’’. (b) CERTIFICATION PROCESS.—Section 1242(e) of the Food Secu-

rity Act of 1985 (16 U.S.C. 3842(e)) is amended by adding at the end the following:

‘‘(4) CERTIFICATION PROCESS.—The Secretary shall certify a third-party provider through—

‘‘(A) a certification process administered by the Sec- retary, acting through the Chief of the Natural Resources Conservation Service; or

‘‘(B) a non-Federal entity approved by the Secretary to perform the certification. ‘‘(5) STREAMLINED CERTIFICATION.—The Secretary shall pro-

vide a streamlined certification process for a third-party pro- vider that has an appropriate specialty certification, including a sustainability certification.’’. (c) EXPEDITED REVISION OF STANDARDS.—Section 1242(h) of

the Food Security Act of 1985 (16 U.S.C. 3842(h)) is amended— (1) in paragraph (1)—

(A) by striking subparagraph (A) and inserting the following:

‘‘(A) not later than 1 year after the date of enactment of the Agriculture Improvement Act of 2018, complete a review of each conservation practice standard, including engineering design specifications, in effect on the day before the date of enactment of that Act;’’;

(B) in subparagraph (B), by striking ‘‘and’’ at the end; (C) in subparagraph (C), by striking the period at

the end and inserting ‘‘; and’’; and (D) by adding at the end the following: ‘‘(D) evaluate opportunities to increase flexibility in

conservation practice standards in a manner that ensures equivalent natural resource benefits.’’;

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132 STAT. 4580 PUBLIC LAW 115–334—DEC. 20, 2018

(2) in paragraph (2), by inserting ‘‘State technical commit- tees established under section 1261(a),’’ before ‘‘crop consult- ants’’; and

(3) by striking paragraph (3) and inserting the following: ‘‘(3) EXPEDITED REVISION OF STANDARDS.—Not later than

1 year after the date of enactment of the Agriculture Improve- ment Act of 2018, the Secretary shall develop for the programs under this title an administrative process for—

‘‘(A) expediting the establishment and revision of con- servation practice standards;

‘‘(B) considering conservation innovations and scientific and technological advancements with respect to any establishment or revision under subparagraph (A);

‘‘(C) allowing local flexibility in the creation of— ‘‘(i) interim practice standards and supplements

to existing practice standards to address the consider- ations described in subparagraph (B); and

‘‘(ii) partnership-led proposals for new and innova- tive techniques to facilitate implementing agreements and grants under this title; and ‘‘(D) soliciting regular input from State technical

committees established under section 1261(a) for rec- ommendations that identify innovations or advancements described in subparagraph (B). ‘‘(4) REPORT.—Not later than 2 years after the date of

enactment of the Agriculture Improvement Act of 2018, and every 2 years thereafter, the Secretary shall submit to Congress a report on—

‘‘(A) the administrative process developed under para- graph (3);

‘‘(B) conservation practice standards that were estab- lished or revised under that process; and

‘‘(C) conservation innovations that were considered under that process.’’.

SEC. 2503. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

(a) ACREAGE LIMITATIONS.—Section 1244(f) of the Food Security Act of 1985 (16 U.S.C. 3844(f)) is amended—

(1) in paragraph (1)(B), by striking ‘‘10’’ and inserting ‘‘15’’; and

(2) in paragraph (5), by striking ‘‘the Agricultural Act of 2014’’ and inserting ‘‘the Agriculture Improvement Act of 2018’’. (b) REQUIREMENTS FOR CONSERVATION PROGRAMS.—Section

1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended— (1) by striking subsection (m); (2) by redesignating subsections (j) through (l) as sub-

sections (k) through (m), respectively; and (3) by inserting after subsection (i) the following:

‘‘(j) REVIEW AND GUIDANCE FOR PRACTICE COSTS AND PAYMENT RATES.—

‘‘(1) IN GENERAL.—Not later than 1 year after the date of enactment of the Agriculture Improvement Act of 2018, and not later than October 1 of each year thereafter, the Secretary shall—

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132 STAT. 4581PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) review the estimates for practice costs and rates of payments made to producers for practices on eligible land under this title; and

‘‘(B) evaluate whether those costs and rates reflect a payment that—

‘‘(i) encourages participation in a conservation pro- gram administered by the Secretary;

‘‘(ii) encourages implementation of the most effec- tive practices to address local natural resource concerns on eligible land; and

‘‘(iii) accounts for regional, State, and local varia- bility relating to the complexity, implementation, and adoption of practices on eligible land.

‘‘(2) GUIDANCE; REVIEW.—The Secretary shall— ‘‘(A) issue guidance to States to annually review and

adjust the estimates for practice costs and rates of pay- ments made to producers to reflect the evaluation factors described in paragraph (1)(B); and

‘‘(B) determine the appropriate practice costs and rates of payments for each State by—

‘‘(i) annually reviewing each conservation program payment schedule and payment rate used in the State; and

‘‘(ii) consulting with the State technical committee established under section 1261(a) in that State.’’.

(c) FUNDING FOR INDIAN TRIBES.—Section 1244(m) of the Food Security Act of 1985 (as redesignated by subsection (b)(2)) is amended—

(1) by striking ‘‘may’’ and inserting ‘‘shall’’; (2) by striking ‘‘that the goals’’ and inserting the following:

‘‘that— ‘‘(1) the goals’’; (3) in paragraph (1) (as so designated), by striking ‘‘arrange-

ments, and that statutory’’ and inserting the following: ‘‘arrangements;

‘‘(2) a sufficient number of eligible participants will be aggregated under the alternative funding arrangement to accomplish the underlying purposes and objectives of the applicable program; and

‘‘(3) statutory’’; and (4) in paragraph (3) (as so designated), by striking the

period at the end and inserting ‘‘, except that the Secretary may approve a waiver if the Secretary is authorized to approve a waiver under the statutory authority of the applicable pro- gram.’’. (d) SOURCE WATER PROTECTION THROUGH TARGETING OF AGRI-

CULTURAL PRACTICES.—Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) (as amended by subsection (b)) is amended by adding at the end the following:

‘‘(n) SOURCE WATER PROTECTION THROUGH TARGETING OF AGRI- CULTURAL PRACTICES.—

‘‘(1) IN GENERAL.—In carrying out any conservation pro- gram administered by the Secretary, the Secretary shall encour- age practices that relate to water quality and water quantity that protect source water for drinking water (including pro- tecting against public health threats) while also benefitting agricultural producers.

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132 STAT. 4582 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(2) COLLABORATION WITH WATER SYSTEMS AND INCREASED INCENTIVES.—

‘‘(A) IN GENERAL.—In encouraging practices under paragraph (1), the Secretary shall—

‘‘(i) work collaboratively with community water systems and State technical committees established under section 1261(a) to identify, in each State, local priority areas for the protection of source waters for drinking water; and

‘‘(ii) subject to subparagraph (B), for practices described in paragraph (1), offer to producers increased incentives and higher payment rates than are other- wise statutorily authorized by the applicable conserva- tion program administered by the Secretary. ‘‘(B) LIMITATION.—An increased payment under

subparagraph (A)(ii) shall not exceed 90 percent of practice costs associated with planning, design, materials, equip- ment, installation, labor, management, maintenance, or training. ‘‘(3) RESERVATION OF FUNDS.—

‘‘(A) IN GENERAL.—In each of fiscal years 2019 through 2023, the Secretary shall use to carry out this subsection not less than 10 percent of any funds available for conserva- tion programs administered by the Secretary under this title (other than the conservation reserve program estab- lished under subchapter B of chapter 1 of subtitle D).

‘‘(B) LIMITATION.—Funds available for a specific con- servation program shall not be transferred to fund a dif- ferent conservation program under this title.’’.

(e) ENVIRONMENTAL SERVICES MARKET.—Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) (as amended by sub- section (d)) is amended by adding at the end the following:

‘‘(o) ENVIRONMENTAL SERVICES MARKET.—The Secretary may not prohibit, through a contract, easement, or agreement under this title, a participant in a conservation program administered by the Secretary under this title from participating in, and receiving compensation from, an environmental services market if 1 of the purposes of the market is the facilitation of additional conservation benefits that are consistent with the purposes of the conservation program administered by the Secretary.’’.

(f) REGULATORY CERTAINTY.—Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) (as amended by subsection (e)) is amended by adding at the end the following:

‘‘(p) REGULATORY CERTAINTY.— ‘‘(1) IN GENERAL.—In addition to technical and pro-

grammatic information that the Secretary is otherwise author- ized to provide, on request of a Federal agency, a State, an Indian tribe, or a unit of local government, the Secretary may provide technical and programmatic information—

‘‘(A) subject to paragraph (2), to the Federal agency, State, Indian tribe, or unit of local government to support specifically the development of mechanisms that would pro- vide regulatory certainty, regulatory predictability, safe harbor protection, or other similar regulatory assurances to a farmer, rancher, or private nonindustrial forest land- owner under a regulatory requirement—

‘‘(i) that relates to soil, water, or wildlife; and

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132 STAT. 4583PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) over which that Federal agency, State, Indian tribe, or unit of local government has authority; and ‘‘(B) relating to conservation practices or activities that

could be implemented by a farmer, rancher, or private nonindustrial forest landowner to address a targeted soil, water, or wildlife resource concern that is the direct subject of a regulatory requirement enforced by that Federal agency, State, Indian tribe, or unit of local government, as applicable. ‘‘(2) MECHANISMS.—The Secretary shall only provide addi-

tional technical and programmatic information under para- graph (1) if the mechanisms to be developed by the Federal agency, State, Indian tribe, or unit of local government, as applicable, under paragraph (1)(A) are anticipated to include, at a minimum—

‘‘(A) the implementation of 1 or more conservation practices or activities that effectively addresses the soil, water, or wildlife resource concern identified under para- graph (1);

‘‘(B) the on-site confirmation that the applicable con- servation practices or activities identified under subpara- graph (A) have been implemented;

‘‘(C) a plan for a periodic audit, as appropriate, of the continued implementation or maintenance of each of the conservation practices or activities identified under subparagraph (A); and

‘‘(D) notification to a farmer, rancher, or private non- industrial forest landowner of, and an opportunity to cor- rect, any noncompliance with a requirement to obtain regu- latory certainty, regulatory predictability, safe harbor protection, or other similar regulatory assurance. ‘‘(3) CONTINUING CURRENT COLLABORATION ON SOIL, WATER,

OR WILDLIFE CONSERVATION PRACTICES.—The Secretary shall— ‘‘(A) continue collaboration with Federal agencies,

States, Indian tribes, or local units of government on existing regulatory certainty, regulatory predictability, safe harbor protection, or other similar regulatory assurances in accordance with paragraph (2); and

‘‘(B) continue collaboration with the Secretary of the Interior on consultation under section 7(a)(2) of the Endan- gered Species Act of 1973 (16 U.S.C. 1536(a)(2)) or con- ference under section 7(a)(4) of that Act (16 U.S.C. 1536(a)(4)), as applicable, for wildlife conservation efforts, including the Working Lands for Wildlife model of conserva- tion on working landscapes, as implemented on the day before the date of enactment of the Agriculture Improve- ment Act of 2018, in accordance with—

‘‘(i) the document entitled ‘Partnership Agreement Between the United States Department of Agriculture Natural Resources Conservation Service and the United States Department of the Interior Fish and Wildlife Service’, numbered A–3A75–16–937, and for- malized by the Chief of the Natural Resources Con- servation Service on September 15, 2016, and by the Director of the United States Fish and Wildlife Service on August 4, 2016, as in effect on September 15, 2016; and

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132 STAT. 4584 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) United States Fish and Wildlife Service Direc- tor’s Order No. 217, dated August 9, 2016, as in effect on August 9, 2016.

‘‘(4) SAVINGS CLAUSE.—Nothing in this subsection— ‘‘(A) preempts, displaces, or supplants any authority

or right of a Federal agency, a State, an Indian tribe, or a unit of local government;

‘‘(B) modifies or otherwise affects, preempts, or dis- places—

‘‘(i) any cause of action; or ‘‘(ii) a provision of Federal or State law establishing

a remedy for a civil or criminal cause of action; or ‘‘(C) applies to a case in which the Department of

Agriculture is the originating agency requesting a consulta- tion or other technical and programmatic information or assistance from another Federal agency in assisting farmers, ranchers, or nonindustrial private forest land- owners participating in a conservation program adminis- tered by the Secretary.’’.

SEC. 2504. TEMPORARY ADMINISTRATION OF CONSERVATION PRO- GRAMS.

(a) INTERIM ADMINISTRATION.—Subject to subsection (d), the Secretary shall use the applicable regulations in effect on the day before the date of enactment of this Act, to the extent that the terms and conditions of those regulations are consistent with the amendments made by this title, to carry out the programs under laws as amended by this title, including—

(1) the conservation reserve program under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) (as amended by subtitle B);

(2) the environmental quality incentives program under subchapter A of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq) (as added by section 2301(a)(1) and amended by subtitle C);

(3) the conservation stewardship program under subchapter B of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (as added by subsections (a)(2) and (b) of section 2301 and amended by subtitle C); and

(4) the agricultural conservation easement program estab- lished under subtitle H of title XII of the Food Security Act of 1985 (16 U.S.C. 3865 et seq.) (as amended by subtitle F). (b) REGIONAL CONSERVATION PARTNERSHIP PROGRAM.—Not-

withstanding subsection (e) of section 1271E of the Food Security Act of 1985 (16 U.S.C. 3871e) (as amended by section 2706), and subject to subsection (d), for fiscal year 2019, the Secretary may use an availability of program funding announcement consistent with the amendments made by subtitle G to carry out the regional conservation partnership program under subtitle I of title XII of the Food Security Act of 1985 (16 U.S.C. 3871 et seq.) without issuing a regulation.

(c) FUNDING.—The Secretary may only use funds authorized to be made available by this title or the amendments made by this title for the specific programs described in paragraphs (1) through (4) of subsection (a) and subsection (b), in accordance

16 USC 3801 note.

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132 STAT. 4585PUBLIC LAW 115–334—DEC. 20, 2018

with any restrictions on the use of those funds, for the purposes described in subsections (a) and (b).

(d) TERMINATION OF AUTHORITY.—The authority of the Sec- retary to carry out subsections (a) and (b) shall terminate on Sep- tember 30, 2019.

(e) PERMANENT ADMINISTRATION.—Effective beginning on the termination date described in subsection (d), the Secretary shall carry out this title and the amendments made by this title in accordance with such final regulations as the Secretary considers necessary to carry out this title and the amendments made by this title.

Subtitle F—Agricultural Conservation Easement Program

SEC. 2601. ESTABLISHMENT AND PURPOSES.

Section 1265(b) of the Food Security Act of 1985 (16 U.S.C. 3865(b)) is amended—

(1) in paragraph (3), by inserting ‘‘that negatively affect the agricultural uses and conservation values’’ after ‘‘that land’’; and

(2) in paragraph (4), by striking ‘‘restoring and’’ and inserting ‘‘restoring or’’.

SEC. 2602. DEFINITIONS.

Section 1265A of the Food Security Act of 1985 (16 U.S.C. 3865a) is amended—

(1) in paragraph(1)(B), by striking ‘‘subject to an agricul- tural land easement plan, as approved by the Secretary’’;

(2) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (6), and (7), respectively;

(3) by inserting after paragraph (1) the following: ‘‘(2) BUY-PROTECT-SELL TRANSACTION.—

‘‘(A) IN GENERAL.—The term ‘buy-protect-sell trans- action’ means a legal arrangement—

‘‘(i) between an eligible entity and the Secretary relating to land that an eligible entity owns or is going to purchase prior to acquisition of an agricultural land easement;

‘‘(ii) under which the eligible entity certifies to the Secretary that the eligible entity shall—

‘‘(I)(aa) hold an agricultural land easement on that land, but transfer ownership of the land to a farmer or rancher that is not an eligible entity prior to or on acquisition of the agricultural land easement; or

‘‘(bb) hold an agricultural land easement on that land, but transfer ownership of the land to a farmer or rancher that is not an eligible entity in a timely manner and, subject to subparagraph (B), not later than 3 years after the date of acquisi- tion of the agricultural land easement; and

‘‘(II) make an initial sale of the land subject to the agricultural land easement to a farmer or rancher at not more than agricultural value, plus any reasonable holding and transaction costs

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132 STAT. 4586 PUBLIC LAW 115–334—DEC. 20, 2018

incurred by the eligible entity, as determined by the Secretary; and ‘‘(iii) under which the Secretary shall be

reimbursed for the entirety of the Federal share of the cost of the agricultural land easement by the eligible entity if the eligible entity fails to transfer ownership under item (aa) or (bb), as applicable, of clause (ii)(I). ‘‘(B) TIME EXTENSION.—Under subparagraph

(A)(ii)(I)(bb), an eligible entity may transfer land later than 3 years after the date of acquisition of the agricultural land easement if the Secretary determines an extension of time is justified.’’; (4) in paragraph (4) (as so redesignated)—

(A) in subparagraph (A)(i)— (i) by striking ‘‘to a’’ and inserting the following:

‘‘to— ‘‘(I) a’’;

(ii) in subclause (I) (as so designated), by adding ‘‘or’’ at the end; and

(iii) by adding at the end the following: ‘‘(II) a buy-protect-sell transaction;’’; and

(B) in subparagraph (B)(i)(II), by striking ‘‘, as deter- mined by the Secretary in consultation with the Secretary of the Interior at the local level’’; and (5) by inserting after paragraph (4) (as so redesignated)

the following: ‘‘(5) MONITORING REPORT.—The term ‘monitoring report’

means a report, the contents of which are formulated and prepared by the holder of an agricultural land easement, that accurately documents whether the land subject to the agricul- tural land easement is in compliance with the terms and condi- tions of the agricultural land easement.’’.

SEC. 2603. AGRICULTURAL LAND EASEMENTS.

(a) AVAILABILITY OF ASSISTANCE.—Section 1265B(a) of the Food Security Act of 1985 (16 U.S.C. 3865b(a)) is amended—

(1) in paragraph (1), by striking ‘‘and’’ at the end; (2) in paragraph (2), by striking ‘‘provide for the conserva-

tion of natural resources pursuant to an agricultural land ease- ment plan.’’ and inserting ‘‘implement the program, including technical assistance for the development of a conservation plan under subsection (b)(4)(C)(iv); and’’; and

(3) by adding at the end the following: ‘‘(3) buy-protect-sell transactions.’’.

(b) COST-SHARE ASSISTANCE.— (1) SCOPE OF ASSISTANCE AVAILABLE.—Section 1265B(b)(2)

of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(2)) is amended—

(A) in subparagraph (B), by striking clause (ii) and inserting the following:

‘‘(ii) GRASSLANDS EXCEPTION.—In the case of grass- land of special environmental significance, as deter- mined by the Secretary, the Secretary may provide an amount not to exceed 75 percent of the fair market value of the agricultural land easement.

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132 STAT. 4587PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(iii) PERMISSIBLE FORMS.—The non-Federal share provided by an eligible entity under this subparagraph may comprise—

‘‘(I) cash resources; ‘‘(II) a charitable donation or qualified con-

servation contribution (as defined in section 170(h) of the Internal Revenue Code of 1986) from the private landowner from which the agricultural land easement will be purchased;

‘‘(III) costs associated with securing a deed to the agricultural land easement, including the cost of appraisal, survey, inspection, and title; and

‘‘(IV) other costs, as determined by the Sec- retary.’’; and

(B) by striking subparagraph (C). (2) EVALUATION AND RANKING OF APPLICATIONS.—Section

1265B(b)(3) of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(3)) is amended—

(A) by redesignating subparagraph (C) as subpara- graph (E); and

(B) by inserting after subparagraph (B) the following: ‘‘(C) ACCOUNTING FOR GEOGRAPHIC DIFFERENCES.—The

Secretary may adjust the criteria established under subparagraph (A) to account for geographic differences, if the adjustments—

‘‘(i) meet the purposes of the program; and ‘‘(ii) continue to maximize the benefit of the Fed-

eral investment under the program. ‘‘(D) PRIORITY.—In evaluating applications under the

program, the Secretary may give priority to an application for the purchase of an agricultural land easement that, as determined by the Secretary, maintains agricultural viability.’’. (3) AGREEMENTS WITH ELIGIBLE ENTITIES.—Section

1265B(b)(4) of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(4)) is amended—

(A) in subparagraph (C), by striking clauses (iii) and (iv) and inserting the following:

‘‘(iii) include a right of enforcement for the Sec- retary that—

‘‘(I) may be used only if the terms and condi- tions of the easement are not enforced by the eligible entity; and

‘‘(II) does not extend to a right of inspection unless—

‘‘(aa)(AA) the holder of the easement fails to provide monitoring reports in a timely manner; or

‘‘(BB) the Secretary has a reasonable and articulable belief that the terms and conditions of the easement have been violated; and

‘‘(bb) prior to the inspection, the Secretary notifies the eligible entity and the landowner of the inspection and provides a reasonable opportunity for the eligible entity and the landowner to participate in the inspection;

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‘‘(iv) include a conservation plan only for any por- tion of the land subject to the agricultural land ease- ment that is highly erodible cropland; and’’; (B) by redesignating subparagraphs (D) and (E) as

subparagraphs (E) and (F), respectively; and (C) by inserting after subparagraph (C) the following: ‘‘(D) ADDITIONAL PERMITTED TERMS AND CONDITIONS.—

An eligible entity may include terms and conditions for an agricultural land easement that—

‘‘(i) are intended to keep the land subject to the agricultural land easement under the ownership of a farmer or rancher, as determined by the Secretary;

‘‘(ii) allow subsurface mineral development on the land subject to the agricultural land easement and in accordance with applicable State law if, as deter- mined by the Secretary—

‘‘(I) the subsurface mineral development— ‘‘(aa) has a limited and localized impact; ‘‘(bb) does not harm the agricultural use

and conservation values of the land subject to the easement;

‘‘(cc) does not materially alter or affect the existing topography;

‘‘(dd) shall comply with a subsurface min- eral development plan that—

‘‘(AA) includes a plan for the remedi- ation of impacts to the agricultural use and conservation values of the land sub- ject to the easement; and

‘‘(BB) is approved by the Secretary prior to the initiation of mineral develop- ment activity; ‘‘(ee) is not accomplished by any surface

mining method; ‘‘(ff) is within the impervious surface

limits of the easement under subparagraph (C)(v); and

‘‘(gg) uses practices and technologies that minimize the duration and intensity of impacts to the agricultural use and conservation values of the land subject to the easement; and ‘‘(II) each area impacted by the subsurface

mineral development shall be reclaimed and restored by the holder of the mineral rights at cessation of operation; and ‘‘(iii) include other relevant activities relating to

the agricultural land easement, as determined by the Secretary.’’.

(4) CERTIFICATION OF ELIGIBLE ENTITIES.—Section 1265B(b)(5) of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(5)) is amended—

(A) in subparagraph (A)— (i) in clause (ii), by striking ‘‘; and’’ and inserting

a semicolon; (ii) in clause (iii), by striking the period at the

end and inserting ‘‘; and’’; and (iii) by adding at the end the following:

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132 STAT. 4589PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(iv) allow a certified eligible entity to use its own terms and conditions, notwithstanding paragraph (4)(C), as long as the terms and conditions are con- sistent with the purposes of the program.’’; and (B) in subparagraph (B)—

(i) in clause (iii), by redesignating subclauses (I) through (III) as items (aa) through (cc), respectively, and indenting appropriately;

(ii) by redesignating clauses (i) through (iii) as subclauses (I) through (III), respectively, and indenting appropriately;

(iii) in the matter preceding subclause (I) (as so redesignated), by striking ‘‘entity will’’ and inserting the following: ‘‘eligible entity—

‘‘(i) will’’; (iv) in clause (i)(III)(cc) (as so redesignated), by

striking the period at the end and inserting a semi- colon; and

(v) by adding at the end the following: ‘‘(ii) has—

‘‘(I) been accredited by the Land Trust Accredi- tation Commission, or by an equivalent accrediting body, as determined by the Secretary;

‘‘(II) acquired not fewer than 10 agricultural land easements under the program or any prede- cessor program; and

‘‘(III) successfully met the responsibilities of the eligible entity under the applicable agreements with the Secretary, as determined by the Sec- retary, relating to agricultural land easements that the eligible entity has acquired under the program or any predecessor program; or ‘‘(iii) is a State department of agriculture or other

State agency with statutory authority for farm and ranchland protection that has—

‘‘(I) acquired not fewer than 10 agricultural land easements under the program or any prede- cessor program; and

‘‘(II) successfully met the responsibilities of the eligible entity under the applicable agreements with the Secretary, as determined by the Sec- retary, relating to agricultural land easements that the eligible entity has acquired under the program or any predecessor program.’’.

(5) TECHNICAL ASSISTANCE.—Section 1265B of the Food Security Act of 1985 (16 U.S.C. 3865b) is amended by striking subsection (d) and inserting the following: ‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may provide tech-

nical assistance, if requested, to assist in compliance with the terms and conditions of easements.’’.

SEC. 2604. WETLAND RESERVE EASEMENTS.

Section 1265C of the Food Security Act of 1985 (16 U.S.C. 3865c) is amended—

(1) in subsection (b)— (A) in paragraph (3)(C), by inserting ‘‘or improving

water quality’’ before the period at the end; and

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132 STAT. 4590 PUBLIC LAW 115–334—DEC. 20, 2018

(B) in paragraph (5)— (i) in subparagraph (C)—

(I) by striking ‘‘Land subject’’ and inserting the following: ‘‘(i) IN GENERAL.—Land subject’’;

(II) in clause (i) (as so designated), by inserting ‘‘water management,’’ after ‘‘timber harvest,’’; and

(III) by adding at the end the following: ‘‘(ii) COMPATIBLE USE AUTHORIZATION.—In evalu-

ating and authorizing a compatible economic use under clause (i), the Secretary shall—

‘‘(I) request and consider the advice of the applicable State technical committee established under section 1261(a) about the 1 or more types of uses that may be authorized to be conducted on land subject to a wetland reserve easement, including the frequency, timing, and intensity of those uses;

‘‘(II) consider the ability of an authorized use to facilitate the practical administration and management of that land; and

‘‘(III) ensure that an authorized use furthers the functions and values for which the wetland reserve easement was established.’’; and (ii) in subparagraph (D)(i)(III), by inserting after

‘‘under subsection (f)’’ the following: ‘‘or a grazing management plan that is consistent with the wetland reserve easement plan and has been reviewed, and modified as necessary, at least every 5 years’’; and

(2) in subsection (f)— (A) by striking paragraph (1) and inserting the fol-

lowing: ‘‘(1) WETLAND RESERVE EASEMENT PLAN.—

‘‘(A) IN GENERAL.—The Secretary shall develop a wet- land reserve easement plan—

‘‘(i) for any eligible land subject to a wetland reserve easement; and

‘‘(ii) that restores, protects, enhances, manages, maintains, and monitors the eligible land subject to the wetland reserve easements acquired under this section. ‘‘(B) PRACTICES AND ACTIVITIES.—A wetland reserve

easement plan under subparagraph (A) shall include prac- tices and activities, including repair or replacement, that are necessary to restore and maintain the enrolled land and the functions and values of the wetland subject to a wetland reserve easement.’’;

(B) by redesignating paragraphs (2) and (3) as para- graphs (3) and (4), respectively; and

(C) by inserting after paragraph (1) the following: ‘‘(2) ALTERNATIVE PLANT COMMUNITIES.—The Secretary, in

coordination with State technical committees established under section 1261(a) and pursuant to State-specific criteria and guidelines, may authorize the establishment or restoration of a hydrologically appropriate native community or alternative naturalized vegetative community as part of a wetland reserve easement plan on land subject to a wetland reserve easement

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132 STAT. 4591PUBLIC LAW 115–334—DEC. 20, 2018

if that hydrologically appropriate native or alternative natural- ized vegetative community shall—

‘‘(A) substantially support or benefit migratory water- fowl or other wetland wildlife; or

‘‘(B) meet local resource concerns or needs (including as an element of a regional, State, or local wildlife initiative or plan).’’.

SEC. 2605. ADMINISTRATION.

Section 1265D of the Food Security Act of 1985 (16 U.S.C. 3865d) is amended—

(1) in paragraph (a)(4), by striking ‘‘proposed’’ and inserting ‘‘permitted’’;

(2) by striking subsection (c) and inserting the following: ‘‘(c) SUBORDINATION, EXCHANGE, MODIFICATION, AND TERMI-

NATION.— ‘‘(1) SUBORDINATION.—The Secretary may subordinate any

interest in land, or portion of such interest, administered by the Secretary (including for the purposes of utilities and energy transmission services) either directly or on behalf of the Com- modity Credit Corporation under the program if the Secretary determines that the subordination—

‘‘(A) increases conservation values or has a limited negative effect on conservation values;

‘‘(B) minimally affects the acreage subject to the interest in land; and

‘‘(C) is in the public interest or furthers the practical administration of the program. ‘‘(2) MODIFICATION AND EXCHANGE.—

‘‘(A) AUTHORITY.—The Secretary may approve a modi- fication or exchange of any interest in land, or portion of such interest, administered by the Secretary, either directly or on behalf of the Commodity Credit Corporation under the program if the Secretary determines that—

‘‘(i) no reasonable alternative exists and the effect on the interest in land is avoided or minimized to the extent practicable; and

‘‘(ii) the modification or exchange— ‘‘(I) results in equal or increased conservation

values; ‘‘(II) results in equal or greater economic value

to the United States; ‘‘(III) is consistent with the original intent of

the easement; ‘‘(IV) is consistent with the purposes of the

program; and ‘‘(V) is in the public interest or furthers the

practical administration of the program. ‘‘(B) LIMITATION.—In modifying or exchanging an

interest in land, or portion of such interest, under this paragraph, the Secretary may not increase any payment to an eligible entity. ‘‘(3) TERMINATION.—The Secretary may approve a termi-

nation of any interest in land, or portion of such interest, administered by the Secretary, directly or on behalf of the Commodity Credit Corporation under the program if the Sec- retary determines that—

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132 STAT. 4592 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) termination is in the interest of the Federal Government;

‘‘(B) the United States will be fully compensated for— ‘‘(i) the fair market value of the interest in land; ‘‘(ii) any costs relating to the termination; and ‘‘(iii) any damages determined appropriate by the

Secretary; and ‘‘(C) the termination will—

‘‘(i) address a compelling public need for which there is no practicable alternative even with avoidance and minimization; and

‘‘(ii) further the practical administration of the pro- gram.

‘‘(4) CONSENT.—The Secretary shall obtain consent from the landowner and eligible entity, if applicable, for any subordi- nation, exchange, modification, or termination of interest in land, or portion of such interest, under this subsection.

‘‘(5) NOTICE.—At least 90 days before taking any termi- nation action described in paragraph (3), the Secretary shall provide written notice of such action to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.’’; and

(3) in subsection (d)— (A) in paragraph (1), by striking ‘‘transferred into the

program’’ and inserting ‘‘enrolled in an easement under section 1265C(b)’’; and

(B) by adding at the end the following: ‘‘(3) AGRICULTURAL LAND EASEMENTS.—A farmer or rancher

who owns eligible land subject to an agricultural land easement may enter into a contract under subchapter B of chapter 1 of subtitle D.’’.

Subtitle G—Regional Conservation Partnership Program

SEC. 2701. ESTABLISHMENT AND PURPOSES.

Section 1271 of the Food Security Act of 1985 (16 U.S.C. 3871) is amended—

(1) in subsection (a)— (A) in paragraph (1), by inserting ‘‘, including partner-

ship agreements funded through alternative funding arrangements or grant agreements under section 1271C(d),’’ after ‘‘partnership agreements’’; and

(B) in paragraph (2), by striking ‘‘contracts with pro- ducers’’ and inserting ‘‘program contracts with producers’’; and (2) in subsection (b)—

(A) in paragraph (1), in the matter preceding subpara- graph (A), by striking ‘‘use covered programs’’ and inserting ‘‘carry out eligible activities’’;

(B) by striking paragraph (2) and inserting the fol- lowing: ‘‘(2) To further the conservation, protection, restoration,

and sustainable use of soil, water (including sources of drinking water and groundwater), wildlife, agricultural land, and related

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132 STAT. 4593PUBLIC LAW 115–334—DEC. 20, 2018

natural resources on eligible land on a regional or watershed scale.’’;

(C) in paragraph (3)— (i) in subparagraph (A), by inserting ‘‘, including

through alignment of partnership projects with other national, State, and local agencies and programs addressing similar natural resource or environmental concerns’’ after ‘‘eligible land’’; and

(ii) in subparagraph (B), by striking ‘‘installation’’ and inserting ‘‘adoption, installation,’’; and (D) by adding at the end the following:

‘‘(4) To encourage the flexible and streamlined delivery of conservation assistance to producers through partnership agreements.

‘‘(5) To engage producers and eligible partners in conserva- tion projects to achieve greater conservation outcomes and bene- fits for producers than would otherwise be achieved.’’.

SEC. 2702. DEFINITIONS.

Section 1271A of the Food Security Act of 1985 (16 U.S.C. 3871a) is amended—

(1) in paragraph (1)— (A) in subparagraph (C), by inserting ‘‘, not including

the grassland conservation initiative under section 1240L– 1’’ before the period at the end; and

(B) by adding at the end the following: ‘‘(E) The conservation reserve program established

under subchapter B of chapter 1 of subtitle D. ‘‘(F) The programs established by the Secretary to carry

out the Watershed Protection and Flood Prevention Act (16 U.S.C. 1001 et seq.), except for any program established by the Secretary to carry out section 14 (16 U.S.C. 1012) of that Act.’’; (2) by striking paragraphs (2) and (3) and inserting the

following: ‘‘(2) ELIGIBLE ACTIVITY.—The term ‘eligible activity’ means

a practice, activity, agreement, easement, or related conserva- tion measure that is available under the statutory authority for a covered program.

‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ means any agricultural or nonindustrial private forest land or associated land on which the Secretary determines an eligible activity would help achieve conservation benefits.’’;

(3) in paragraph (4)— (A) in subparagraph (E), by inserting ‘‘acequia,’’ after

‘‘irrigation district,’’; and (B) by adding at the end the following: ‘‘(I) An organization described in section 1265A(3)(B). ‘‘(J) A conservation district.’’;

(4) by striking paragraph (5) and inserting the following: ‘‘(5) PARTNERSHIP AGREEMENT.—The term ‘partnership

agreement’ means the programmatic agreement entered into between the Secretary and an eligible partner, subject to the terms and conditions under section 1271B.’’; and

(5) by adding at the end the following: ‘‘(7) PROGRAM CONTRACT.—

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132 STAT. 4594 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) IN GENERAL.—The term ‘program contract’ means the contract between the Secretary and a producer entered into under this subtitle.

‘‘(B) EXCLUSION.—The term ‘program contract’ does not include a contract under a covered program.’’.

SEC. 2703. REGIONAL CONSERVATION PARTNERSHIPS.

Section 1271B of the Food Security Act of 1985 (16 U.S.C. 3871b) is amended—

(1) by striking subsection (b) and inserting the following: ‘‘(b) LENGTH.—

‘‘(1) IN GENERAL.—A partnership agreement shall be— ‘‘(A) for a period not to exceed 5 years; or ‘‘(B) for a period that is longer than 5 years, if the

longer period is necessary to meet the objectives of the program, as determined by the Secretary. ‘‘(2) RENEWAL.—A partnership agreement may be renewed

under subsection (e)(5) for a period not to exceed 5 years. ‘‘(3) EXTENSION.—A partnership agreement, or any renewal

of a partnership agreement, may each be extended 1 time for a period not longer than 12 months, as determined by the Secretary.’’;

(2) in subsection (c)— (A) in paragraph (1)—

(i) in subparagraph (A)— (I) by redesignating clauses (iii) and (iv) as

clauses (iv) and (v), respectively; and (II) by striking clauses (i) and (ii) and inserting

the following: ‘‘(i) 1 or more conservation benefits that the project

shall achieve; ‘‘(ii) the eligible activities on eligible land to be

conducted under the project to achieve conservation benefits;

‘‘(iii) the implementation timeline for carrying out the project, including any interim milestones;’’;

(ii) in subparagraph (D), by striking ‘‘funds’’ and inserting ‘‘contributions’’; and

(iii) in subparagraph (E), by striking ‘‘of the project’s effects; and’’ and inserting the following: ‘‘of—

‘‘(i) the progress made by the project in achieving each conservation benefit defined in the partnership agreement, including in a quantified form to the extent practicable; and

‘‘(ii) as appropriate, other outcomes of the project; and’’; and (B) in paragraph (2)—

(i) by striking ‘‘An eligible’’ and inserting the fol- lowing: ‘‘(A) IN GENERAL.—An eligible’’; and

(ii) by adding at the end the following: ‘‘(B) FORM.—A contribution of an eligible partner under

this paragraph may be in the form of— ‘‘(i) direct funding; ‘‘(ii) in-kind support; or ‘‘(iii) a combination of direct funding and in-kind

support.

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132 STAT. 4595PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(C) TREATMENT.—Any amounts expended during the period beginning on the date on which the Secretary announces the approval of an application under subsection (e) and ending on the day before the effective date of the partnership agreement by an eligible partner for staff salaries or development of the partnership agreement may be considered to be a part of the contribution of the eligible partner under this paragraph.’’; (3) by redesignating subsection (d) as subsection (e); (4) by inserting after subsection (c) the following:

‘‘(d) DUTIES OF SECRETARY.—The Secretary shall— ‘‘(1) establish a timeline for carrying out the duties of

the Secretary under a partnership agreement, including— ‘‘(A) entering into program contracts with producers; ‘‘(B) providing financial assistance to producers; and ‘‘(C) in the case of a partnership agreement that is

funded through an alternative funding arrangement or grant agreement under section 1271C(d), providing the pay- ments to the eligible partner for carrying out eligible activi- ties; ‘‘(2) identify in each State a program coordinator for the

State, who shall be responsible for providing assistance to eligible partners under the program;

‘‘(3) establish guidance to assist eligible partners with car- rying out the assessment required under subsection (c)(1)(E);

‘‘(4) provide to each eligible partner that has entered into a partnership agreement that is not funded through an alter- native funding arrangement or grant agreement under section 1271C(d)—

‘‘(A) a semiannual report describing the status of each pending and obligated contract under the project of the eligible partner; and

‘‘(B) an annual report describing how the Secretary used amounts reserved by the Secretary for that year for technical assistance under section 1271D(f); and ‘‘(5) ensure that any eligible activity effectively achieves

the conservation benefits identified in the partnership agree- ment under subsection (c)(1)(A)(i).’’;

(5) in subsection (e) (as redesignated by paragraph (3))— (A) in paragraph (1), by inserting ‘‘simplified’’ after

‘‘conduct a’’; (B) in paragraph (3)—

(i) by striking the paragraph designation and heading and all that follows through ‘‘description of— ’’ and inserting the following:

‘‘(3) CONTENTS.—The Secretary shall develop a simplified application that includes a description of—’’;

(ii) in subparagraph (C), by striking ‘‘, including the covered programs to be used’’; and

(iii) in subparagraph (D), by striking ‘‘financial’’; (C) in paragraph (4)—

(i) by striking subparagraph (D); (ii) by redesignating subparagraphs (E) and (F)

as subparagraphs (G) and (H), respectively; and (iii) by inserting after subparagraph (C) the fol-

lowing:

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132 STAT. 4596 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(D) build new partnerships with local, State, and pri- vate entities to include a diversity of stakeholders in the project;

‘‘(E) deliver a high percentage of applied conservation— ‘‘(i) to achieve conservation benefits; or ‘‘(ii) in the case of a project in a critical conserva-

tion area under section 1271F, to address the priority resource concern for that critical conservation area; ‘‘(F) implement the project consistent with existing

watershed, habitat, or other area restoration plans;’’; and (D) by adding at the end the following:

‘‘(5) RENEWALS.—If the Secretary determines that a project that is the subject of a partnership agreement has met or exceeded the objectives of the project, the Secretary may renew the partnership agreement through an expedited noncompeti- tive process if the 1 or more eligible partners that are parties to the partnership agreement request the renewal in order—

‘‘(A) to continue to implement the project under a renewal of the partnership agreement; or

‘‘(B) to expand the scope of the project under a renewal of the partnership agreement, as long as the expansion is within the objectives and purposes of the original part- nership agreement.’’; and (6) by adding at the end the following:

‘‘(f) NONAPPLICABILITY OF ADJUSTED GROSS INCOME LIMITA- TION.—The adjusted gross income limitation described in section 1001D(b)(1) shall not apply to an eligible partner under the pro- gram.’’.

SEC. 2704. ASSISTANCE TO PRODUCERS.

Section 1271C of the Food Security Act of 1985 (16 U.S.C. 3871c) is amended—

(1) by striking subsections (a) and (b) and inserting the following: ‘‘(a) IN GENERAL.—A producer may receive financial or technical

assistance to conduct eligible activities on eligible land through a program contract entered into with the Secretary.

‘‘(b) PROGRAM CONTRACTS.— ‘‘(1) IN GENERAL.—The Secretary shall establish a program

contract to be entered into with a producer to conduct eligible activities on eligible land, subject to such terms and conditions as the Secretary may establish.

‘‘(2) APPLICATION BUNDLES.— ‘‘(A) IN GENERAL.—An eligible partner may submit to

the Secretary, on behalf of producers, a bundle of applica- tions for assistance under the program through program contracts to address a substantial portion of the conserva- tion benefits to be achieved by the project, as defined in the partnership agreement.

‘‘(B) PRIORITY.—The Secretary may give priority to applications described in subparagraph (A).’’; (2) in subsection (c)—

(A) in paragraph (1), by striking ‘‘In accordance with statutory requirements of the covered programs involved, the Secretary may make payments to a producer’’ and inserting ‘‘Subject to section 1271D, the Secretary may make payments to a producer’’; and

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132 STAT. 4597PUBLIC LAW 115–334—DEC. 20, 2018

(B) in paragraph (3), by striking ‘‘participating’’; and (3) by adding at the end the following:

‘‘(d) FUNDING THROUGH ALTERNATIVE FUNDING ARRANGEMENTS OR GRANT AGREEMENTS.—

‘‘(1) IN GENERAL.—A partnership agreement entered into with an eligible partner may be funded through an alternative funding arrangement or grant in accordance with this sub- section.

‘‘(2) DUTIES OF THE SECRETARY.—The Secretary shall— ‘‘(A) under a funding agreement under paragraph (1)—

‘‘(i) use funding made available to carry out this subtitle to provide funding directly to the eligible partner; and

‘‘(ii) provide technical and administrative assist- ance, as mutually agreed by the parties; and ‘‘(B) enter into not more than 15 alternative funding

arrangements or grant agreements with 1 or more eligible partners each fiscal year. ‘‘(3) DUTIES OF ELIGIBLE PARTNERS.—Under a funding

agreement under paragraph (1), the eligible partner shall— ‘‘(A) carry out eligible activities on eligible land in

agreement with producers to achieve conservation benefits on a regional or watershed scale, such as—

‘‘(i) infrastructure investments relating to agricul- tural or nonindustrial private forest production that would—

‘‘(I) benefit multiple producers; and ‘‘(II) address natural resource concerns such

as drought, wildfire, or water quality impairment on the land covered by the project; ‘‘(ii) projects addressing natural resources concerns

in coordination with producers, including the develop- ment and implementation of watershed, habitat, or other area restoration plans;

‘‘(iii) projects that use innovative approaches to leveraging the Federal investment in conservation with private financial mechanisms, in conjunction with agri- cultural production or forest resource management, such as—

‘‘(I) the provision of performance-based pay- ments to producers; and

‘‘(II) support for an environmental market; or ‘‘(iv) other projects for which the Secretary deter-

mines that the goals and objectives of the program would be easier to achieve through the funding agree- ment under paragraph (1); and ‘‘(B) submit to the Secretary, in addition to any

information that the Secretary requires to prepare the report under section 1271E(b), an annual report that describes the status of the project, including a description of—

‘‘(i) the use of the funds awarded under paragraph (1);

‘‘(ii) any subcontracts awarded; ‘‘(iii) the producers receiving funding through the

funding agreement under paragraph (1);

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132 STAT. 4598 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(iv)(I) the progress made by the project in addressing each natural resource concern defined in the funding agreement under paragraph (1), including in a quantified form to the extent practicable; and

‘‘(II) as appropriate, other outcomes of the project; and

‘‘(v) any other reporting data the Secretary deter- mines are necessary to ensure compliance with the program rules.’’.

SEC. 2705. FUNDING.

Section 1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is amended—

(1) in subsection (a)— (A) by striking ‘‘$100,000,000’’ and inserting

‘‘$300,000,000’’; and (B) by striking ‘‘2014 through 2018’’ and inserting

‘‘2019 through 2023’’; (2) by striking subsection (c); (3) by redesignating subsections (d) and (e) as subsections

(c) and (d), respectively; (4) in subsection (c) (as so redesignated)—

(A) in the matter preceding paragraph (1)— (i) by striking ‘‘and acres’’; and (ii) by striking ‘‘and reserved for the program

under subsection (c)’’; (B) in paragraph (1)—

(i) by striking ‘‘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’’ and inserting ‘‘50 percent of the funds to projects based on a State or multistate competitive process administered by the Secretary at the local level with the advice of the applicable State technical committees’’; and

(ii) by adding ‘‘and’’ after the semicolon; (C) by striking paragraph (2); (D) by redesignating paragraph (3) as paragraph (2);

and (E) in paragraph (2) (as so redesignated), by striking

‘‘35 percent of the funds and acres’’ and inserting ‘‘50 percent of the funds’’; (5) in subsection (d) (as so redesignated)—

(A) by striking ‘‘None of the funds made available or reserved for the program’’ and inserting the following: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

none of the funds made available for the program, including for a partnership agreement funded through an alternative funding arrangement or grant agreement under section 1271C(d),’’; and

(B) by adding at the end the following: ‘‘(2) PROJECT DEVELOPMENT AND OUTREACH.—Under a part-

nership agreement that is not funded through an alternative funding arrangement or grant agreement under section 1271C(d), the Secretary may advance reasonable amounts of funding for not longer than 90 days for technical assistance

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132 STAT. 4599PUBLIC LAW 115–334—DEC. 20, 2018

to eligible partners to conduct project development and outreach activities in a project area, including—

‘‘(A) providing outreach and education to producers for potential participation in the project;

‘‘(B) establishing baseline metrics to support the development of the assessment required under section 1271B(c)(1)(E); or

‘‘(C) providing technical assistance to producers.’’; and (6) by adding at the end the following:

‘‘(e) TECHNICAL ASSISTANCE.— ‘‘(1) IN GENERAL.—At the time of project selection, the

Secretary shall identify and make publicly available the amount that the Secretary shall use to provide technical assistance under the terms of the partnership agreement.

‘‘(2) LIMITATION.—The Secretary shall limit costs of the Secretary for technical assistance to costs specific and necessary to carry out the objectives of the program.

‘‘(3) THIRD-PARTY PROVIDERS.—The Secretary shall develop and implement strategies to encourage third-party technical service providers to provide technical assistance to eligible part- ners pursuant to a partnership agreement.’’.

SEC. 2706. ADMINISTRATION.

Section 1271E of the Food Security Act of 1985 (16 U.S.C. 3871e) is amended—

(1) in subsection (a), by striking ‘‘1271B(d)’’ each place it appears and inserting ‘‘1271B(e)’’;

(2) in subsection (b)— (A) in the matter preceding paragraph (1), by striking

‘‘December 31, 2014’’ and inserting ‘‘December 31, 2019’’; (B) by redesignating paragraphs (1) through (4) as

paragraphs (2) through (5), respectively; (C) by inserting before paragraph (2) (as so redesig-

nated) the following: ‘‘(1) a summary of—

‘‘(A) the progress made towards achieving the conserva- tion benefits defined for the projects; and

‘‘(B) any other related outcomes of the projects;’’; (D) in paragraph (4) (as so redesignated), by striking

‘‘and’’ at the end; (E) in paragraph (5) (as so redesignated)—

(i) in the matter preceding subparagraph (A), by striking ‘‘1271C(b)(2)’’ and inserting ‘‘1271C(d)’’; and

(ii) in subparagraph (C), by striking the period at the end and inserting ‘‘; and’’; and (F) by adding at the end the following:

‘‘(6) in the case of a project within a critical conservation area under section 1271F, the status of each priority resource concern for each designated critical conservation area, including—

‘‘(A) the priority resource concerns for which each crit- ical conservation area is designated;

‘‘(B) conservation goals and outcomes sufficient to dem- onstrate that progress is being made to address the priority resource concerns;

‘‘(C) the partnership agreements selected to address each conservation goal and outcome; and

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132 STAT. 4600 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(D) the extent to which each conservation goal and outcome is being addressed by the partnership agree- ments.’’; and (3) by adding at the end the following:

‘‘(c) COMPLIANCE WITH CERTAIN REQUIREMENTS.—The Sec- retary may not provide assistance under the program to a producer unless the producer agrees, during the program year for which the assistance is provided—

‘‘(1) to comply with applicable conservation requirements under subtitle B; and

‘‘(2) to comply with applicable wetland protection require- ments under subtitle C. ‘‘(d) HISTORICALLY UNDERSERVED PRODUCERS.—To the max-

imum extent practicable, in carrying out the program, the Secretary and eligible partners shall conduct outreach to beginning farmers and ranchers, veteran farmers and ranchers, socially disadvantaged farmers and ranchers, and limited resource farmers and ranchers to encourage participation by those producers in a project subject to a partnership agreement or funding agreement under 1271C(d).

‘‘(e) REGULATIONS.—The Secretary shall issue regulations to carry out the program.’’.

SEC. 2707. CRITICAL CONSERVATION AREAS.

Section 1271F of the Food Security Act of 1985 (16 U.S.C. 3871f) is amended—

(1) by redesignating subsections (a), (b), and (c) as sub- sections (b), (c), and (e), respectively;

(2) by inserting before subsection (b) (as so redesignated) the following: ‘‘(a) DEFINITIONS.—In this section:

‘‘(1) CRITICAL CONSERVATION AREA.—The term ‘critical con- servation area’ means a geographical area that contains a crit- ical conservation condition that can be addressed through the program.

‘‘(2) PRIORITY RESOURCE CONCERN.—The term ‘priority resource concern’ means a natural resource concern located in a critical conservation area that can be addressed through—

‘‘(A) water quality improvement, including through reducing erosion, promoting sediment control, and addressing nutrient management activities affecting large bodies of water of regional, national, or international significance;

‘‘(B) water quantity improvement, including improve- ment relating to—

‘‘(i) drought; ‘‘(ii) groundwater, surface water, aquifer, or other

water sources; or ‘‘(iii) water retention and flood prevention;

‘‘(C) wildlife habitat restoration to address species of concern at a Federal, State, or local level; and

‘‘(D) other natural resource improvements, as deter- mined by the Secretary, within the critical conservation area.’’; (3) in subsection (b) (as so redesignated)—

(A) by striking ‘‘(b) IN GENERAL.—’’ and inserting the following:

‘‘(b) APPLICATIONS.—’’;

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132 STAT. 4601PUBLIC LAW 115–334—DEC. 20, 2018

(B) by striking ‘‘1271D(d)(3)’’ and inserting ‘‘1271D(d)(2)’’;

(C) by striking ‘‘producer’’ and inserting ‘‘program’’; and

(D) by inserting ‘‘that address 1 or more priority resource concerns for which the critical conservation area is designated’’ before the period at the end; (4) in subsection (c) (as so redesignated)—

(A) by redesignating paragraphs (1) through (3) as paragraphs (2) through (4), respectively;

(B) by inserting before paragraph (2) (as so redesig- nated) the following: ‘‘(1) IN GENERAL.—The Secretary shall identify 1 or more

priority resource concerns that apply to each critical conserva- tion area designated under this section after the date of enact- ment of the Agricultural Act of 2014 (Public Law 113–79; 128 Stat. 649), including the conservation goals and outcomes sufficient to demonstrate that progress is being made to address the priority resource concern.’’;

(C) in paragraph (2) (as so redesignated)— (i) by striking subparagraphs (C) and (D) and

inserting the following: ‘‘(C) contains 1 or more priority resource concerns;

or’’; and (ii) by redesignating subparagraph (E) as subpara-

graph (D); and (D) by striking paragraph (3) (as so redesignated) and

inserting the following: ‘‘(3) REVIEW AND WITHDRAWAL.—The Secretary may—

‘‘(A) review designations of critical conservation areas under this section not more frequently than once every 5 years; and

‘‘(B) withdraw designation of a critical conservation area only if the Secretary determines that the area is no longer a critical conservation area.’’; (5) by inserting after subsection (c) (as so redesignated)

the following: ‘‘(d) OUTREACH TO ELIGIBLE PARTNERS AND PRODUCERS.—The

Secretary shall provide outreach and education to eligible partners and producers in critical conservation areas designated under this section to encourage the development of projects to address each priority resource concern identified by the Secretary for that critical conservation area.’’; and

(6) in subsection (e) (as so redesignated)— (A) in paragraph (1), by striking ‘‘producer’’ and

inserting ‘‘program’’; and (B) by striking paragraph (3).

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132 STAT. 4602 PUBLIC LAW 115–334—DEC. 20, 2018

Subtitle H—Repeals and Technical Amendments

PART I—REPEALS

SEC. 2811. REPEAL OF CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.

(a) IN GENERAL.—Subtitle G of title II of the Farm Security and Rural Investment Act of 2002 (16 U.S.C. 3801 note; Public Law 107–171) is repealed.

(b) CONFORMING AMENDMENT.—Section 5059 of the Water Resources Development Act of 2007 (16 U.S.C. 3801 note; Public Law 110–114) is repealed.

SEC. 2812. REPEAL OF CRANBERRY ACREAGE RESERVE PROGRAM.

Section 10608 of the Farm Security and Rural Investment Act of 2002 (16 U.S.C. 3801 note; Public Law 107–171) is repealed.

SEC. 2813. REPEAL OF NATIONAL NATURAL RESOURCES FOUNDATION.

Subtitle F of title III of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 5801 et seq.) is repealed.

SEC. 2814. REPEAL OF FLOOD RISK REDUCTION.

Section 385 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7334) is repealed.

SEC. 2815. REPEAL OF STUDY OF LAND USE FOR EXPIRING CONTRACTS AND EXTENSION OF AUTHORITY.

Section 1437 of the Food, Agriculture, Conservation, and Trade Act of 1990 (16 U.S.C. 3831 note; Public Law 101–624) is repealed.

SEC. 2816. REPEAL OF INTEGRATED FARM MANAGEMENT PROGRAM OPTION.

Section 1451 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5822) is repealed.

SEC. 2817. REPEAL OF CLARIFICATION OF DEFINITION OF AGRICUL- TURAL LANDS.

Section 325 of the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104–127; 110 Stat. 992) is repealed.

PART II—TECHNICAL AMENDMENTS

SEC. 2821. TECHNICAL AMENDMENTS.

(a) WATERSHED PROTECTION AND FLOOD PREVENTION ACT.— Section 5(4) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1005(4)) is amended—

(1) by striking ‘‘goodwater’’ and inserting ‘‘floodwater’’; and (2) by striking ‘‘Secretary of Health, Education, and Wel-

fare’’ each place it appears and inserting ‘‘Secretary of Health and Human Services’’. (b) DELINEATION OF WETLANDS; EXEMPTIONS.—Section 1222(j)

of the Food Security Act of 1985 (16 U.S.C. 3822(j)) is amended by striking ‘‘National Resources Conservation Service’’ and inserting ‘‘Natural Resources Conservation Service’’.

16 USC 5801 and note, 5802–5809.

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132 STAT. 4603PUBLIC LAW 115–334—DEC. 20, 2018

(c) FARMABLE WETLAND PROGRAM.—Section 1231B(b)(2)(A)(i) of the Food Security Act of 1985 (16 U.S.C. 3831b(b)(2)(A)(i)) is amended by adding a semicolon at the end.

(d) TERMINAL LAKES ASSISTANCE.—Section 2507 of the Farm Security and Rural Investment Act of 2002 (16 U.S.C. 3839bb– 6) is amended—

(1) in subsection (e)— (A) by striking paragraph (1); (B) by redesignating paragraph (2) as paragraph (1);

and (C) by adding at the end the following:

‘‘(2) NO ADDITIONAL FUNDS.— ‘‘(A) IN GENERAL.—Nothing in this section authorizes

any additional funds to carry out this section. ‘‘(B) AVAILABILITY OF FUNDS.—Any funds made avail-

able to carry out this section before the date of enactment of the Agriculture Improvement Act of 2018 may remain available until expended.’’; and (2) by adding at the end the following:

‘‘(f) TERMINATION OF AUTHORITY.—The authority provided by this section shall terminate on October 1, 2023.’’.

(e) DELIVERY OF TECHNICAL ASSISTANCE.—Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is amended by striking ‘‘third party’’ each place it appears and inserting ‘‘third-party’’.

(f) ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PRO- GRAMS.—Section 1244(b)(4)(B) of the Food Security Act of 1985 (16 U.S.C. 3844(b)(4)(B)) is amended by striking ‘‘General Accounting Office’’ and inserting ‘‘Government Accountability Office’’.

SEC. 2822. STATE TECHNICAL COMMITTEES.

(a) STANDARDS.—Section 1261(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3861(b)(2)) is amended by striking ‘‘under section 1262(b)’’.

(b) COMPOSITION.—Section 1261(c) of the Food Security Act of 1985 (16 U.S.C. 3861(c)) is amended by adding at the end the following:

‘‘(14) The State Cooperative Extension Service and land grant university in the State.’’.

TITLE III—TRADE

Subtitle A—Food for Peace Act

SEC. 3101. LABELING REQUIREMENTS.

Section 202(g) of the Food for Peace Act (7 U.S.C. 1722(g)) is amended to read as follows:

‘‘(g) LABELING OF ASSISTANCE.—Agricultural commodities and other assistance provided under this title shall, to the extent prac- ticable, be clearly identified with appropriate markings on the pack- age or container of such agricultural commodities or food procured outside of the United States, or on printed material that accom- panies other assistance, in the language of the locality in which such commodities and other assistance are distributed, as being furnished by the people of the United States of America.’’.

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132 STAT. 4604 PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 3102. FOOD AID QUALITY ASSURANCE.

Section 202(h)(3) of the Food for Peace Act (7 U.S.C. 1722(h)(3)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 3103. LOCAL SALE AND BARTER OF COMMODITIES.

Section 203 of the Food for Peace Act (7 U.S.C. 1723) is amended—

(1) in subsection (a), by inserting ‘‘to generate proceeds to be used as provided in this section’’ before the period at the end;

(2) by striking subsection (b); and (3) by redesignating subsections (c) and (d) as subsections

(b) and (c), respectively. SEC. 3104. MINIMUM LEVELS OF ASSISTANCE.

Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is amended in paragraphs (1) and (2) by striking ‘‘2018’’ both places it appears and inserting ‘‘2023’’. SEC. 3105. FOOD AID CONSULTATIVE GROUP.

Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended—

(1) in subsection (d)(1), in the first sentence, by striking ‘‘45’’ and inserting ‘‘30’’; and

(2) in subsection (f), by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 3106. ISSUANCE OF REGULATIONS.

Section 207(c)(1) of the Food for Peace Act (7 U.S.C. 1726a(c)(1)) is amended by striking ‘‘the Agricultural Act of 2014’’and inserting ‘‘the Agriculture Improvement Act of 2018’’. SEC. 3107. OVERSIGHT, MONITORING, AND EVALUATION.

Section 207(f)(4) of the Food for Peace Act (7 U.S.C. 1726a(f)(4)) is amended—

(1) in subparagraph (A)— (A) by striking ‘‘$17,000,000’’ and inserting ‘‘1.5 per-

cent, but not less than $17,000,000,’’; and (B) by striking ‘‘2018’’ each place it appears and

inserting ‘‘2023’’; and (2) in subparagraph (B)—

(A) in clause (i), by striking ‘‘2018’’ and inserting ‘‘2023’’; and

(B) in clause (ii), by striking ‘‘chapter 1 of part I of’’.

SEC. 3108. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPOR- TATION, DELIVERY, AND DISTRIBUTION OF SHELF- STABLE PREPACKAGED FOODS.

Section 208 of the Food for Peace Act (7 U.S.C. 1726b) is amended—

(1) by amending the section heading to read as follows: ‘‘INTERNATIONAL FOOD RELIEF PARTNERSHIP.’’; and

(2) in subsection (f), by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 3109. CONSIDERATION OF IMPACT OF PROVISION OF AGRICUL-

TURAL COMMODITIES AND OTHER ASSISTANCE ON LOCAL FARMERS AND ECONOMY.

(a) INCLUSION OF ALL MODALITIES.—Section 403(a) of the Food for Peace Act (7 U.S.C. 1733(a)) is amended—

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132 STAT. 4605PUBLIC LAW 115–334—DEC. 20, 2018

(1) in the matter preceding paragraph (1), by inserting ‘‘, food procured outside of the United States, food voucher, or cash transfer for food’’ after ‘‘agricultural commodity’’;

(2) in paragraph (1), by inserting ‘‘in the case of the provi- sion of an agricultural commodity,’’ before ‘‘adequate’’; and

(3) in paragraph (2), by striking ‘‘commodity’’ and inserting ‘‘agricultural commodity or use of the food procured outside of the United States, food voucher, or cash transfer for food’’. (b) AVOIDANCE OF DISRUPTIVE IMPACT.—Section 403(b) of the

Food for Peace Act (7 U.S.C. 1733(b)) is amended— (1) in the first sentence, by inserting ‘‘, the use of food

procured outside of the United States, food vouchers, and cash transfers for food,’’ after ‘‘agricultural commodities’’; and

(2) in the second sentence, by striking ‘‘of sales of agricul- tural commodities’’.

SEC. 3110. ALLOWANCE FOR DISTRIBUTION COSTS.

Section 406(b)(6) of the Food for Peace Act (7 U.S.C. 1736(b)(6)) is amended by striking ‘‘and distribution costs’’ and inserting ‘‘, distribution, and program implementation costs to use the commod- ities’’. SEC. 3111. PREPOSITIONING OF AGRICULTURAL COMMODITIES.

Section 407(c)(4)(A) of the Food for Peace Act (7 U.S.C. 1736a(c)(4)(A)) is amended by striking ‘‘2018’’ each place it appears and inserting ‘‘2023’’. SEC. 3112. ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND

ACTIVITIES.

(a) IN GENERAL.—Section 407(f) of the Food for Peace Act (7 U.S.C. 1736a(f)) is amended to read as follows:

‘‘(f) ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND ACTIVITIES.—

‘‘(1) ANNUAL REPORT.—Not later than April 1 of each fiscal year, the Administrator and the Secretary shall jointly, or each separately, prepare and submit to the appropriate commit- tees of Congress a report regarding each program and activity carried out under this Act by the Administrator, the Secretary, or both, as applicable, during the prior fiscal year.

‘‘(2) CONTENTS.—An annual report described in paragraph (1) shall include, with respect to the prior fiscal year, the following:

‘‘(A) A list that contains a description of each country and organization that receives food and other assistance under this Act (including the quantity of food and assist- ance provided to each country and organization).

‘‘(B) A general description of each project and activity implemented under this Act (including each activity funded through the use of local currencies) and the total number of beneficiaries of the project.

‘‘(C) A statement describing the quantity of agricultural commodities made available to, and the total number of beneficiaries in, each country pursuant to—

‘‘(i) this Act; ‘‘(ii) section 416(b) of the Agricultural Act of 1949

(7 U.S.C. 1431(b)); ‘‘(iii) the Food for Progress Act of 1985 (7 U.S.C.

1736o); and

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132 STAT. 4606 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(iv) the McGovern-Dole International Food for Education and Child Nutrition Program established by section 3107 of the Farm Security and Rural Invest- ment Act of 2002 (7 U.S.C. 1736o–1). ‘‘(D) An assessment of the progress made through pro-

grams under this Act towards reducing food insecurity in the populations receiving food assistance from the United States.

‘‘(E) A description of efforts undertaken by the Food Aid Consultative Group under section 205 to achieve an integrated and effective food assistance program.

‘‘(F) An assessment of— ‘‘(i) each program oversight, monitoring, and

evaluation system implemented under section 207(f); and

‘‘(ii) the impact of each program oversight, moni- toring, and evaluation system on the effectiveness and efficiency of assistance provided under this title. ‘‘(G) An assessment of the progress made by the

Administrator in addressing issues relating to quality with respect to the provision of food assistance.

‘‘(H) A statement of the amount of funds (including funds for administrative costs, indirect cost recovery, internal transportation, storage and handling, and associ- ated distribution costs) provided to each eligible organiza- tion that received assistance under this Act, that further describes the following:

‘‘(i) How such funds were used by the eligible organization.

‘‘(ii) The actual rate of return for each commodity made available under this Act, including factors that influenced the rate of return, and, for the commodity, the costs of bagging or further processing, ocean transportation, inland transportation in the recipient country, storage costs, and any other information that the Administrator and the Secretary determine to be necessary.

‘‘(iii) For each instance in which a commodity was made available under this Act at a rate of return less than 70 percent, the reasons for the rate of return realized. ‘‘(I) For funds expended for purposes of section 202(e),

406(b)(6), and 407(c)(1)(B), a detailed accounting of the expenditures and purposes of such expenditures with respect to each such section. ‘‘(3) RATE OF RETURN DESCRIBED.—For purposes of applying

subparagraph (H) of paragraph (2), the rate of return for a commodity shall be equal to the proportion that—

‘‘(A) the proceeds the implementing partners generate through monetization; bears to

‘‘(B) the cost to the Federal Government to procure and ship the commodity to a recipient country for monetiza- tion.’’.

(b) CONFORMING REPEAL.—Subsection (m) of section 403 of the Food for Peace Act (7 U.S.C. 1733) is repealed.

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132 STAT. 4607PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 3113. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO PROVIDE OTHER ASSISTANCE.

Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 3114. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

Section 412(e) of the Food for Peace Act (7 U.S.C. 1736f(e)) is amended to read as follows:

‘‘(e) MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.— ‘‘(1) IN GENERAL.—For each of fiscal years 2019 through

2023, not less than $365,000,000 of the amounts made available to carry out emergency and nonemergency food assistance pro- grams under title II, nor more than 30 percent of such amounts, shall be expended for nonemergency food assistance programs under such title.

‘‘(2) COMMUNITY DEVELOPMENT FUNDS.—Funds appro- priated each year to carry out part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) that are made available through grants or cooperative agreements to strengthen food security in developing countries and that are consistent with section 202(e)(1)(C) may be considered amounts expended for nonemergency food assistance programs for purposes of para- graph (1).

‘‘(3) FARMER-TO-FARMER PROGRAM.—In determining the amount expended for a fiscal year for nonemergency food assist- ance programs under paragraph (1), amounts expended for that year to carry out programs under section 501 may be considered amounts expended for nonemergency food assistance programs.’’.

SEC. 3115. TERMINATION DATE FOR MICRONUTRIENT FORTIFICATION PROGRAMS.

Section 415(c) of the Food for Peace Act (7 U.S.C. 1736g– 2(c)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 3116. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO- FARMER PROGRAM.

Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended—

(1) in subsection (b)— (A) in the matter preceding paragraph (1), by inserting

‘‘section 1342 of title 31, United States Code, or’’ after ‘‘Notwithstanding’’;

(B) in paragraph (1) by inserting ‘‘technical’’ before ‘‘assistance’’; and

(C) in paragraph (2)— (i) in the matter preceding subparagraph (A), by

inserting ‘‘employees or staff of a State cooperative institution (as such term is defined in paragraph 18 of section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103), except that subparagraphs (E), (F), and (G) of such paragraph shall not apply),’’ after ‘‘private cor- porations,’’; and

(ii) in subparagraph (A)— (I) by striking ‘‘; and’’ at the end of clause

(viii); and

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132 STAT. 4608 PUBLIC LAW 115–334—DEC. 20, 2018

(II) by striking clause (ix) and inserting the following: ‘‘(ix) agricultural education and extension; ‘‘(x) selection of seed varieties and plant stocks; ‘‘(xi) knowledge of insecticide and sanitation proce-

dures to prevent crop destruction; ‘‘(xii) use and maintenance of agricultural equip-

ment and irrigation systems; and ‘‘(xiii) selection of fertilizers and methods of soils

treatment; and’’; (2) in subsection (d), in the matter preceding paragraph

(1), by striking ‘‘2018’’ and inserting ‘‘2023’’; (3) in subsection (e)(1), in the matter preceding subpara-

graph (A), by striking ‘‘2018’’ and inserting ‘‘2023’’; and (4) by adding at the end the following:

‘‘(f) GRANT PROGRAM TO CREATE NEW PARTNERS AND INNOVA- TION.—

‘‘(1) IN GENERAL.—The Administrator of the Agency for International Development shall develop a grant program to be carried out in fiscal years 2019 through 2023 to facilitate new and innovative partnerships and activities under this title.

‘‘(2) USE OF FUNDS.—A grant recipient under this sub- section shall use funds received under this subsection to—

‘‘(A) prioritize new implementing partners; ‘‘(B) develop innovative volunteer models; ‘‘(C) develop, improve, or maintain strategic partner-

ships with other United States development programs; and ‘‘(D) expand the footprint and impact of the programs

and activities under this title, and diversity among program participants, including land-grant colleges and universities and cooperative extension services (as such terms are defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)).’’.

Subtitle B—Agricultural Trade Act of 1978

SEC. 3201. AGRICULTURAL TRADE PROMOTION AND FACILITATION.

(a) IN GENERAL.—Section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) is amended to read as follows: ‘‘SEC. 203. AGRICULTURAL TRADE PROMOTION AND FACILITATION.

‘‘(a) ESTABLISHMENT.—The Secretary shall carry out activities under this section—

‘‘(1) to access, develop, maintain, and expand markets for United States agricultural commodities; and

‘‘(2) to promote cooperation and the exchange of informa- tion. ‘‘(b) MARKET ACCESS PROGRAM.—

‘‘(1) DEFINITION OF ELIGIBLE TRADE ORGANIZATION.—In this subsection, the term ‘eligible trade organization’ means—

‘‘(A) a United States agricultural trade organization or regional State-related organization that promotes the export and sale of United States agricultural commodities and that does not stand to profit directly from specific sales of United States agricultural commodities;

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132 STAT. 4609PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(B) a cooperative organization or State agency that promotes the sale of United States agricultural commod- ities; or

‘‘(C) a private organization that promotes the export and sale of United States agricultural commodities if the Secretary determines that such organization would signifi- cantly contribute to United States export market develop- ment. ‘‘(2) IN GENERAL.—The Commodity Credit Corporation shall

establish and carry out a program, to be known as the ‘Market Access Program’, to encourage the development, maintenance, and expansion of commercial export markets for United States agricultural commodities (including commodities that are organically produced (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502))) through cost- share assistance to eligible trade organizations that implement a foreign market development program.

‘‘(3) PARTICIPATION REQUIREMENTS.— ‘‘(A) MARKETING PLAN AND OTHER REQUIREMENTS.—

To be eligible for cost-share assistance under this sub- section, an eligible trade organization shall—

‘‘(i) prepare and submit a marketing plan to the Secretary that meets the guidelines governing such a marketing plan specified in this paragraph or other- wise established by the Secretary;

‘‘(ii) meet any other requirements established by the Secretary; and

‘‘(iii) enter into an agreement with the Secretary. ‘‘(B) PURPOSE OF MARKETING PLAN.—A marketing plan

submitted under this paragraph shall describe the adver- tising or other market oriented export promotion activities to be carried out by the eligible trade organization with respect to which assistance under this subsection is being requested.

‘‘(C) SPECIFIC ELEMENTS.—To be approved by the Sec- retary, a marketing plan submitted under this paragraph shall—

‘‘(i) specifically describe the manner in which assistance received by the eligible trade organization, in conjunction with funds and services provided by the eligible trade organization, will be expended in implementing the marketing plan;

‘‘(ii) establish specific market goals to be achieved under the marketing plan; and

‘‘(iii) contain whatever additional requirements are determined by the Secretary to be necessary. ‘‘(D) BRANDED PROMOTION.—A marketing plan

approved by the Secretary may provide for the use of branded advertising to promote the sale of United States agricultural commodities in a foreign country under such terms and conditions as may be established by the Sec- retary.

‘‘(E) AMENDMENTS.—An approved marketing plan may be amended by the eligible trade organization at any time, subject to the approval of the amendment by the Secretary. ‘‘(4) LEVEL OF ASSISTANCE AND COST-SHARE REQUIRE-

MENTS.—

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132 STAT. 4610 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) IN GENERAL.—The Secretary shall justify in writing the level of assistance to be provided to an eligible trade organization under this subsection and the level of cost sharing required of the organization.

‘‘(B) LIMITATION ON BRANDED PROMOTION.—Assistance provided under this subsection for activities described in paragraph (3)(D) shall not exceed 50 percent of the cost of implementing the marketing plan, except that the Sec- retary may determine not to apply such limitation in the case of United States agricultural commodities with respect to which there has been a favorable decision by the United States Trade Representative under section 301 of the Trade Act of 1974 (19 U.S.C. 2411). Criteria used by the Secretary for determining that the limitation shall not apply shall be consistent and documented. ‘‘(5) OTHER TERMS AND CONDITIONS.—

‘‘(A) MULTIYEAR BASIS.—The Secretary may provide assistance under this subsection on a multiyear basis, sub- ject to annual review by the Secretary for compliance with the approved marketing plan.

‘‘(B) TERMINATION OF ASSISTANCE.—The Secretary may terminate any assistance made, or to be made, available under this subsection if the Secretary determines that—

‘‘(i) the eligible trade organization is not adhering to the terms and conditions applicable to the provision of the assistance;

‘‘(ii) the eligible trade organization is not imple- menting the approved marketing plan or is not ade- quately meeting the established goals of the plan;

‘‘(iii) the eligible trade organization is not ade- quately contributing its own resources to the implementation of the plan; or

‘‘(iv) the Secretary determines that termination of assistance in a particular instance is in the best interests of the Market Access Program. ‘‘(C) EVALUATIONS.—Beginning not later than 15

months after the initial provision of assistance under this subsection to an eligible trade organization, the Secretary shall monitor the expenditures by the eligible trade organization of such assistance, including the following:

‘‘(i) An evaluation of the effectiveness of the mar- keting plan of the eligible trade organization in devel- oping or maintaining markets for United States agri- cultural commodities.

‘‘(ii) An evaluation of whether assistance provided under this subsection is necessary to maintain such markets.

‘‘(iii) A thorough accounting of the expenditure by the eligible trade organization of the assistance provided under this subsection.

‘‘(6) RESTRICTIONS ON USE OF FUNDS.—Assistance provided under this subsection to an eligible trade organization may not be used—

‘‘(A) to provide direct assistance to any foreign for- profit corporation for the corporation’s use in promoting foreign-produced products; or

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132 STAT. 4611PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(B) to provide direct assistance to any for-profit cor- poration that is not recognized as a small business concern (as described in section 3(a) of the Small Business Act (15 U.S.C. 632(a))), excluding—

‘‘(i) a cooperative; ‘‘(ii) an association described in the first section

of the Act entitled ‘An Act To authorize association of producers of agricultural products’, approved Feb- ruary 18, 1922 (7 U.S.C. 291); or

‘‘(iii) a nonprofit trade association. ‘‘(7) PERMISSIVE USE OF FUNDS.—Assistance provided under

this subsection to a United States agricultural trade association, cooperative, or small business may be used for individual branded promotional activity related to a United States branded product, if the beneficiaries of the activity have provided funds for the activity in an amount that is at least equivalent to the amount of such assistance.

‘‘(8) PRIORITY.—In providing assistance for branded pro- motion, the Secretary should give priority to small-sized enti- ties.

‘‘(9) CONTRIBUTION LEVEL.— ‘‘(A) IN GENERAL.—The Secretary should require a min-

imum contribution level of 10 percent from an eligible trade organization that receives assistance for nonbranded promotion.

‘‘(B) INCREASES IN CONTRIBUTION LEVEL.—The Sec- retary may increase the contribution level in any subse- quent year that an eligible trade organization receives assistance for nonbranded promotion. ‘‘(10) ADDITIONALITY.—The Secretary should require each

participant in the Market Access Program to certify that any Federal funds received supplement, but do not supplant, private or third party participant funds or other contributions to Pro- gram activities.

‘‘(11) INDEPENDENT AUDITS.—If as a result of an evaluation or audit of activities of a participant under the Market Access Program, the Secretary determines that a further review is justified in order to ensure compliance with the requirements of the Program, the Secretary should require the participant to contract for an independent audit of the Program activities, including activities of any subcontractor.

‘‘(12) TOBACCO.—No funds made available under the Market Access Program may be used for activities to develop, maintain, or expand foreign markets for tobacco. ‘‘(c) FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.—

‘‘(1) DEFINITION OF ELIGIBLE TRADE ORGANIZATION.—In this subsection, the term ‘eligible trade organization’ means a United States trade organization that—

‘‘(A) promotes the export of 1 or more United States agricultural commodities; and

‘‘(B) does not have a business interest in or receive remuneration from specific sales of agricultural commod- ities. ‘‘(2) ESTABLISHMENT.—The Secretary shall establish and,

in cooperation with eligible trade organizations, carry out a program to be known as the ‘Foreign Market Development

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132 STAT. 4612 PUBLIC LAW 115–334—DEC. 20, 2018

Cooperator Program’ to maintain and develop foreign markets for United States agricultural commodities.

‘‘(3) USE OF FUNDS.—Funds made available to carry out this subsection shall be used only to provide—

‘‘(A) cost-share assistance to an eligible trade organiza- tion under a contract or agreement with the eligible trade organization; and

‘‘(B) assistance for other costs that are appropriate to carry out the Foreign Market Development Cooperator Program, including contingent liabilities that are not other- wise funded.

‘‘(d) E (KIKA) DE LA GARZA EMERGING MARKETS PROGRAM.— ‘‘(1) DEFINITION OF EMERGING MARKET.—In this subsection,

the term ‘emerging market’ means any country, foreign terri- tory, customs union, or other economic market that the Sec- retary determines—

‘‘(A) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of its economy; and

‘‘(B) has the potential to provide a viable and signifi- cant market for United States agricultural commodities. ‘‘(2) ESTABLISHMENT.—The Secretary shall establish and

carry out a program, to be known as the ‘E (Kika) de la Garza Emerging Markets Program’—

‘‘(A) to develop agricultural markets in emerging mar- kets; and

‘‘(B) to promote cooperation and exchange of informa- tion between agricultural institutions and agribusinesses in the United States and emerging markets. ‘‘(3) DEVELOPMENT OF AGRICULTURAL SYSTEMS.—

‘‘(A) IN GENERAL.— ‘‘(i) IMPLEMENTATION.—To develop, maintain, or

expand markets for exports of United States agricul- tural commodities, the Secretary shall make available to emerging markets the expertise of the United States—

‘‘(I) to make assessments of food and rural business systems needs;

‘‘(II) to make recommendations on measures necessary to enhance the effectiveness of the food and rural business systems described in subclause (I), including potential reductions in trade barriers; and

‘‘(III) to identify and carry out specific opportunities and projects to enhance the effective- ness of the food and rural business systems described in subclause (I). ‘‘(ii) EXTENT OF PROGRAM.—The Secretary shall

implement this subparagraph with respect to at least 3 emerging markets in each fiscal year. ‘‘(B) EXPERTS FROM THE UNITED STATES.—The Sec-

retary may implement subparagraph (A) by providing— ‘‘(i) assistance to teams (consisting primarily of

agricultural consultants, agricultural producers, other persons from the private sector, and government offi- cials expert in assessing the food and rural business systems of other countries) to enable those teams to

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132 STAT. 4613PUBLIC LAW 115–334—DEC. 20, 2018

conduct the assessments, make the recommendations, and identify the opportunities and projects described in subparagraph (A)(i) in emerging markets;

‘‘(ii) for necessary subsistence and transportation expenses of—

‘‘(I) United States food and rural business system experts, including United States agricul- tural producers and other United States individ- uals knowledgeable in agricultural and agri- business matters, to enable such United States food and rural business system experts to assist in transferring knowledge and expertise to entities from emerging markets; and

‘‘(II) individuals designated by emerging mar- kets to enable such designated individuals to con- sult with such United States experts to enhance food and rural business systems of such emerging markets and to transfer knowledge and expertise to such emerging markets.

‘‘(C) COST-SHARING.—The Secretary shall encourage the nongovernmental experts described in subparagraph (B) to share the costs of, and otherwise assist in, the participa- tion of those experts in the E (Kika) de la Garza Emerging Markets Program.

‘‘(D) TECHNICAL ASSISTANCE.—The Secretary is author- ized to provide, or pay the necessary costs for, technical assistance (including the establishment of extension serv- ices) to enable individuals or other entities to carry out recommendations, projects, and opportunities in emerging markets, including recommendations, projects, and opportunities described in subclauses (II) and (III) of subparagraph (A)(i).

‘‘(E) REPORTS TO SECRETARY.—A team that receives assistance under subparagraph (B)(i) shall prepare and submit to the Secretary such reports as the Secretary may require.

‘‘(F) ADVISORY COMMITTEE.—To provide the Secretary with information that may be useful to the Secretary in carrying out this subsection, the Secretary may establish an advisory committee composed of representatives of the various sectors of the food and rural business systems of the United States.

‘‘(G) EFFECT.—The authority provided under this sub- section shall be in addition to and not in place of any other authority of the Secretary or the Commodity Credit Corporation.

‘‘(e) TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.— ‘‘(1) ESTABLISHMENT.—The Secretary of Agriculture shall

establish an export assistance program, in this subsection referred to as the ‘program’, to address existing or potential unique barriers that prohibit or threaten the export of United States specialty crops.

‘‘(2) PURPOSE.—The program shall provide direct assistance through public and private sector projects and technical assist- ance, including through the program under section 2(e) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 3157(e)), to remove, resolve, or mitigate existing or

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132 STAT. 4614 PUBLIC LAW 115–334—DEC. 20, 2018

potential sanitary, phytosanitary, and technical barriers to trade.

‘‘(3) PRIORITY.—The program shall address time sensitive and strategic market access projects based on—

‘‘(A) trade effect on market retention, market access, and market expansion; and

‘‘(B) trade impact. ‘‘(4) MULTIYEAR PROJECTS.—The Secretary may provide

assistance under the program to a project for longer than a 5-year period if the Secretary determines that further assist- ance would effectively support the purpose described in para- graph (2).

‘‘(5) OUTREACH AND TECHNICAL ASSISTANCE.—The Secretary shall—

‘‘(A) conduct outreach to inform eligible organizations of the requirements of the program and the process by which such organizations may submit proposals for funding;

‘‘(B) provide technical assistance to eligible organiza- tions to assist in developing proposals and complying with the requirements of the program; and

‘‘(C) solicit input from eligible organizations on improvements to streamline and facilitate the provision of assistance under this subsection. ‘‘(6) REGULATIONS AND PROCEDURES.—

‘‘(A) IN GENERAL.—Not later than 1 year after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall review program regulations, procedures, and guidelines for assistance under this sub- section and make revisions to streamline, improve, and clarify the application, approval and compliance processes for such assistance, including revisions to implement the requirements of paragraph (5).

‘‘(B) CONSIDERATIONS.—In reviewing and making revi- sions under subparagraph (A), the Secretary shall con- sider—

‘‘(i) establishing accountability standards that are appropriate for the size and scope of a project; and

‘‘(ii) establishing streamlined application and approval processes, including for smaller-scale projects or projects to address time-sensitive trade barriers.

‘‘(7) ANNUAL REPORT.—Each year, the Secretary shall submit to the appropriate committees of Congress a report that contains, for the period covered by the report, a description of—

‘‘(A) each factor that affects the export of specialty crops, including each factor relating to any—

‘‘(i) significant sanitary or phytosanitary issue; ‘‘(ii) trade barrier; or ‘‘(iii) emerging sanitary or phytosanitary issue or

trade barrier; and ‘‘(B)(i) any funds provided under subsection (f)(3)(A)(iv)

that were not obligated in a fiscal year; and ‘‘(ii) the reason such funds were not obligated.

‘‘(f) FUNDING AND ADMINISTRATION.—

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132 STAT. 4615PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(1) COMMODITY CREDIT CORPORATION.—The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.

‘‘(2) FUNDING AMOUNT.—For each of fiscal years 2019 through 2023, of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, the Secretary shall use to carry out this section $255,000,000, to remain available until expended.

‘‘(3) ALLOCATION.— ‘‘(A) IN GENERAL.—For each of fiscal years 2019

through 2023, the Secretary shall allocate funds to carry out this section in accordance with the following:

‘‘(i) MARKET ACCESS PROGRAM.—For market access activities authorized under subsection (b), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not less than $200,000,000 for each fiscal year.

‘‘(ii) FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.—To carry out subsection (c), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not less than $34,500,000 for each fiscal year.

‘‘(iii) E (KIKA) DE LA GARZA EMERGING MARKETS PROGRAM.—To provide assistance under subsection (d), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not more than $8,000,000 for each fiscal year.

‘‘(iv) TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.—To carry out subsection (e), of the funds of, or an equal value of the commodities owned by, the Commodity Credit Corporation, $9,000,000 for each fiscal year.

‘‘(v) PRIORITY TRADE FUND.— ‘‘(I) IN GENERAL.—In addition to the amounts

allocated under clauses (i) through (iv), and not- withstanding any limitations in those clauses, as determined by the Secretary, for 1 or more pro- grams under this section for authorized activities to access, develop, maintain, and expand markets for United States agricultural commodities, $3,500,000 for each fiscal year.

‘‘(II) CONSIDERATIONS.—In allocating funds made available under subclause (I), the Secretary may consider providing a greater allocation to 1 or more programs under this section for which the amounts requested under applications exceed available funding for the 1 or more programs.

‘‘(B) REALLOCATION.—Any funds allocated under clauses (i) through (iv) of subparagraph (A) that remain unobligated one year after the end of the fiscal year in which they are first made available shall be reallocated to the priority trade fund under subparagraph (A)(v). To the maximum extent practicable, the Secretary shall allo- cate such reallocated funds to support exports of those types of United States agricultural commodities eligible for assistance under the program for which the funds were originally allocated under subparagraph (A).

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132 STAT. 4616 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(4) CUBA.—Notwithstanding section 908 of the Trade Sanc- tions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7207) or any other provision of law, funds made available under this section may be used to carry out the programs authorized under subsections (b) and (c) in Cuba. Funds may not be used as described in the previous sentence in contraven- tion with directives set forth under the National Security Presi- dential Memorandum entitled ‘Strengthening the Policy of the United States Toward Cuba’ issued by the President on June 16, 2017, during the period in which that memorandum is in effect.

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—In addition to any other amounts provided under this subsection, there are authorized to be appropriated such sums as are necessary to carry out the programs and authorities under paragraph (3)(A)(v) and subsections (b) through (e).’’. (b) CONFORMING AMENDMENTS.—

(1) MARKET ACCESS PROGRAM.— (A) Section 211 of the Agricultural Trade Act of 1978

(7 U.S.C. 5641) is amended by striking subsection (c). (B) Section 402(a)(1) of the Agricultural Trade Act

of 1978 (7 U.S.C. 5662(a)(1)) is amended by striking ‘‘203’’ and inserting ‘‘203(b)’’.

(C) Section 282(f)(2)(C) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1638a(f)(2)(C)) is amended by striking ‘‘section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623)’’ and inserting ‘‘section 203(b) of the Agricultural Trade Act of 1978 (7 U.S.C. 5623(b))’’.

(D) Section 718 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (7 U.S.C. 5623 note; Public Law 105–277) is amended by striking ‘‘section 203 of the Agricul- tural Trade Act of 1978 (7 U.S.C. 5623)’’ and inserting ‘‘section 203(b) of the Agricultural Trade Act of 1978 (7 U.S.C. 5623(b)’’.

(E) Section 1302 of the Omnibus Budget Reconciliation Act of 1993 is repealed. (2) FOREIGN MARKET DEVELOPMENT COOPERATOR PRO-

GRAM.—Title VII of the Agricultural Trade Act of 1978 (7 U.S.C. 5721 et seq.) is repealed.

(3) E (KIKA) DE LA GARZA EMERGING MARKETS PROGRAM.— (A) Section 1542 of the Food, Agriculture, Conserva-

tion, and Trade Act of 1990 (7 U.S.C 5622 note; Public Law 101–624) is amended—

(i) by striking subsection (d); (ii) by redesignating subsections (e) and (f) as sub-

sections (d) and (e), respectively; and (iii) in subsection (e) (as so redesignated)—

(I) in the matter preceding paragraph (1), by striking ‘‘country’’ and inserting ‘‘country, foreign territory, customs union, or other economic market’’; and

(II) in paragraph (1), by striking ‘‘the economy of the country’’ and inserting ‘‘its economy’’.

(B) Section 1543(b)(5) of the Food, Agriculture, Con- servation, and Trade Act of 1990 (7 U.S.C. 3293(b)(5))

7 USC 5721–5723.

7 USC 5623 note.

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132 STAT. 4617PUBLIC LAW 115–334—DEC. 20, 2018

is amended by striking ‘‘section 1542(f)’’ and inserting ‘‘sec- tion 1542(e)’’.

(C) Section 1543A(c)(2) of the Food, Agriculture, Con- servation, and Trade Act of 1990 (7 U.S.C. 5679(c)(2)) is amended by inserting ‘‘and section 203(d) of the Agricul- tural Trade Act of 1978’’ after ‘‘section 1542’’. (4) TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.—Section

3205 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680) is repealed.

Subtitle C—Other Agricultural Trade Laws

SEC. 3301. GROWING AMERICAN FOOD EXPORTS.

Section 1543A of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5679) is amended—

(1) in subsection (b)(1)(A), by inserting ‘‘or new agricultural production technologies’’ after ‘‘biotechnology’’; and

(2) in subsection (d), by striking ‘‘$6,000,000’’ and all that follows through the period at the end and inserting ‘‘$2,000,000 for each of fiscal years 2019 through 2023.’’.

SEC. 3302. FOOD FOR PROGRESS ACT OF 1985.

Section 1110 of the Food Security Act of 1985 (also known as the Food for Progress Act of 1985 (7 U.S.C. 1736o)) is amended—

(1) by striking ‘‘President’’ each place it appears and inserting ‘‘Secretary’’;

(2) in subsection (b)— (A) in paragraph (5)—

(i) by striking ‘‘and’’ at the end of subparagraph (E);

(ii) by redesignating subparagraph (F) as subpara- graph (G); and

(iii) by inserting after subparagraph (E) the fol- lowing new subparagraph: ‘‘(F) a college or university (as such terms are defined

in section 1404(4) of the Food and Agriculture Act of 1977 (7 U.S.C. 3103(4)); and’’; and

(B) by adding at the end the following new paragraphs: ‘‘(10) RATE OF RETURN.—For purposes of applying sub-

section (j)(3), the rate of return for an eligible commodity shall be equal to the proportion that—

‘‘(A) the proceeds eligible entities generate through monetization of such commodity, bears to

‘‘(B) the cost to the Federal Government to procure and ship the commodity to the country where it is mone- tized. ‘‘(11) SECRETARY.—The term ‘Secretary’ means the Sec-

retary of Agriculture.’’; (3) in subsection (f)(3), by striking ‘‘2018’’ and inserting

‘‘2023’’; (4) in subsection (g), by striking ‘‘2018’’ and inserting

‘‘2023’’; (5) in subsection (j)(3)—

(A) by striking ‘‘December 1’’ and inserting ‘‘April 1’’; (B) by striking ‘‘of the Senate a list of programs’’ and

inserting ‘‘of the Senate—

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132 STAT. 4618 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) a list of programs’’; (C) by striking ‘‘approved to date for the fiscal year’’

and inserting ‘‘approved during the prior fiscal year’’; (D) by striking the period at the end and inserting

a semicolon; and (E) by adding at the end the following new subpara-

graphs: ‘‘(B) a description of the actual rate of return for each

commodity made available under this section for the pre- vious fiscal year including—

‘‘(i) factors that influenced the rate of return; and ‘‘(ii) with respect to the commodity, the costs of

bagging or further processing, ocean transportation, inland transportation, storage costs, and any other information that the Secretary determines to be nec- essary; and ‘‘(C) for each instance in which a commodity was made

available under this section at a rate of return less than 70 percent, an explanation for the rate of return realized.’’. (6) in subsection (k), by striking ‘‘2018’’ and inserting

‘‘2023’’; (7) in subsection (l)(1), by striking ‘‘2018’’ and inserting

‘‘2023’’; (8) in the heading of subsection (m), by striking ‘‘PRESI-

DENTIAL’’ and inserting ‘‘SECRETARIAL’’; (9) in subsection (o), by striking ‘‘(acting through the Sec-

retary)’’; (10) in subsection (o)(1), by striking ‘‘subparagraphs (C)

and (F)’’ and inserting ‘‘subparagraphs (C) and (G)’’; and (11) by adding at the end the following new subsection:.

‘‘(p) PILOT AGREEMENTS.— ‘‘(1) IN GENERAL.—For each of fiscal years 2019 through

2023, subject to the availability of appropriations pursuant to the authorization in paragraph (3), the Secretary shall enter into 1 or more pilot agreements with 1 or more eligible entities through which the Secretary shall provide financial assistance to the eligible entities to carry out activities consistent with subsection (l)(4)(A).

‘‘(2) REPORT REQUIRED.—In each of fiscal years 2020 through 2024, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing, with respect to the previous fiscal year—

‘‘(A) the amount provided to eligible entities under each pilot agreement pursuant to paragraph (1) and how the funds were used;

‘‘(B) the activities carried out under each pilot agree- ment;

‘‘(C) the number of direct and indirect beneficiaries of those activities; and

‘‘(D) the effectiveness of the pilot agreements, including as applicable the impact on food security and agricultural productivity. ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is author-

ized to be appropriated to carry out pilot agreements pursuant to this subsection $10,000,000 for each of fiscal years 2019 through 2023.’’.

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132 STAT. 4619PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 3303. BILL EMERSON HUMANITARIAN TRUST ACT.

Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1) is amended—

(1) in subsection (b)(2)(B)(i), by striking ‘‘2018’’ each place it appears and inserting ‘‘2023’’; and

(2) in subsection (h), by striking ‘‘2018’’ each place it appears and inserting ‘‘2023’’.

SEC. 3304. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

Section 1542(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101–624) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 3305. COCHRAN FELLOWSHIP PROGRAM.

Section 1543 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is amended—

(1) in subsection (a), by striking ‘‘for study in the United States.’’ and inserting the following: ‘‘for study—

‘‘(1) in the United States; or ‘‘(2) at a college or university located in an eligible country

that the Secretary determines— ‘‘(A) has sufficient scientific and technical facilities; ‘‘(B) has established a partnership with at least one

college or university in the United States; and ‘‘(C) has substantial participation by faculty members

of the United States college or university in the design of the fellowship curriculum and classroom instruction under the fellowship.’’; (2) in subsection (c)—

(A) in paragraph (1), by inserting ‘‘(which may include agricultural extension services)’’ after ‘‘systems’’; and

(B) in paragraph (2)— (i) by striking ‘‘enhance trade’’ and inserting the

following: ‘‘enhance— ‘‘(A) trade’’;

(ii) in subparagraph (A) (as so designated) by striking the period at the end and inserting ‘‘; or’’; and

(iii) by adding at the end the following: ‘‘(B) linkages between agricultural interests in the

United States and regulatory systems governing sanitary and phytosanitary standards for agricultural products that—

‘‘(i) may enter the United States; and ‘‘(ii) may pose risks to human, animal, or plant

life or health.’’; and (3) in subsection (f)—

(A) in paragraph (1), by striking ‘‘$3,000,000’’ and inserting ‘‘$4,000,000’’;

(B) in paragraph (2), by striking ‘‘$2,000,000’’ and inserting ‘‘$3,000,000’’; and

(C) in paragraph (3), by striking ‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’.

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132 STAT. 4620 PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 3306. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY FELLOWSHIP PROGRAM.

Section 1473G of the National Agricultural Research, Exten- sion, and Teaching Policy Act of 1977 (7 U.S.C. 3319j) is amended—

(1) in subsection (c)(2)— (A) in the matter preceding subparagraph (A), by

striking ‘‘shall support’’ and inserting ‘‘support’’; (B) in subparagraph (C), by striking ‘‘and’’ at the end; (C) in subparagraph (D), by striking the period at

the end and inserting ‘‘; and’’; and (D) by adding at the end the following: ‘‘(E) the development of agricultural extension services

in eligible countries.’’; and (2) in subsection (f)—

(A) by striking ‘‘The Secretary’’ and inserting the fol- lowing: ‘‘(1) IN GENERAL.—The Secretary’’; and

(B) by adding at the end the following: ‘‘(2) LEVERAGING ALUMNI ENGAGEMENT.—In carrying out

the purposes and programs under this section, the Secretary shall encourage ongoing engagement with fellowship recipients who have completed training under the program to provide advice regarding, and participate in, new or ongoing agricul- tural development projects, with a priority for capacity-building projects.’’.

SEC. 3307. INTERNATIONAL AGRICULTURAL EDUCATION FELLOWSHIP PROGRAM.

(a) FELLOWSHIP PROGRAM ESTABLISHMENT.—The Secretary shall establish a fellowship program to be known as the Inter- national Agricultural Education Fellowship Program to provide fellowships to citizens of the United States to assist eligible coun- tries in developing school-based agricultural education and youth extension programs.

(b) ELIGIBLE COUNTRY DESCRIBED.—For purposes of this sec- tion, an eligible country is a developing country, as determined by the Secretary using a gross national income per capita test selected by the Secretary.

(c) PURPOSE OF FELLOWSHIPS.—The goals of providing a fellow- ship under this section are to—

(1) develop globally minded United States agriculturists with experience living abroad;

(2) focus on meeting the food and fiber needs of the domestic population of eligible countries; and

(3) strengthen and enhance trade linkages between eligible countries and the United States agricultural industry. (d) ELIGIBLE CANDIDATES.—The Secretary may provide fellow-

ships to citizens of the United States who— (1) hold at least a bachelors degree in an agricultural

related field of study; and (2) have an understanding of United States school-based

agricultural education and youth extension programs, as deter- mined by the Secretary. (e) CANDIDATE IDENTIFICATION.—The Secretary shall consult

with the National FFA Organization, the National 4–H Council, and other entities as the Secretary determines are appropriate to identify candidates for fellowships.

7 USC 3295.

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132 STAT. 4621PUBLIC LAW 115–334—DEC. 20, 2018

(f) PROGRAM IMPLEMENTATION.—The Secretary shall provide for the management, coordination, evaluation, and monitoring of the Fellowship Program, except that the Secretary may contract out the management of the fellowship program to an outside organization with experience in implementing fellowship programs focused on building capacity for school-based agricultural education and youth extension programs in developing countries.

(g) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—There are authorized to be appropriated

$5,000,000 to carry out this section for each of fiscal years 2019 through 2023.

(2) DURATION.—Any funds made available under this sub- section shall remain available until expended.

SEC. 3308. INTERNATIONAL FOOD SECURITY TECHNICAL ASSISTANCE.

The Food, Agriculture, Conservation, and Trade Act of 1990 is amended by inserting after section 1543A (7 U.S.C. 5679) the following:

‘‘SEC. 1543B. INTERNATIONAL FOOD SECURITY TECHNICAL ASSIST- ANCE.

‘‘(a) DEFINITION OF INTERNATIONAL FOOD SECURITY.—In this section, the term ‘international food security’ means access by any person at any time to food and nutrition that is sufficient for a healthy and productive life.

‘‘(b) COLLECTION OF INFORMATION.—The Secretary of Agri- culture (referred to in this section as the ‘Secretary’) shall compile information from appropriate mission areas of the Department of Agriculture (including the Food, Nutrition, and Consumer Services mission area) relating to the improvement of international food security.

‘‘(c) PUBLIC AVAILABILITY.—To benefit programs for the improvement of international food security, the Secretary shall organize the information described in subsection (b) and make the information available in a format suitable for—

‘‘(1) public education; and ‘‘(2) use by—

‘‘(A) a Federal, State, or local agency; ‘‘(B) an agency or instrumentality of the government

of a foreign country; ‘‘(C) a domestic or international organization, including

a domestic or international nongovernmental organization; and

‘‘(D) an intergovernmental organization. ‘‘(d) TECHNICAL ASSISTANCE.—On request by an entity described

in subsection (c)(2), the Secretary may provide technical assistance to the entity to implement a program for the improvement of international food security.

‘‘(e) PROGRAM PRIORITY.—In carrying out this section, the Sec- retary shall give priority to programs relating to the development of food and nutrition safety net systems with a focus on food insecure countries.

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2019 through 2023.’’.

7 USC 1736dd.

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132 STAT. 4622 PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 3309. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION PROGRAM.

Section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1) is amended—

(1) in subsection (a)— (A) by striking ‘‘that is’’ and inserting the following:

‘‘that— ‘‘(1) is’’;

(B) in paragraph (1) (as so designated), by striking the period at the end and inserting ‘‘; or’’; and

(C) by adding at the end the following: ‘‘(2)(A) is produced in and procured from—

‘‘(i) a developing country that is a recipient country; or

‘‘(ii) a developing country in the same region as a recipient country; and ‘‘(B) at a minimum, meets each nutritional, quality, and

labeling standard of the recipient country, as determined by the Secretary.’’;

(2) in subsection (c)(2)(A)— (A) in clause (v)(IV), by striking ‘‘and’’ at the end; (B) by redesignating clause (vi) as clause (vii); and (C) by inserting after clause (v) the following:

‘‘(vi) the costs associated with transporting the commodities described in subsection (a)(2) from a devel- oping country described in subparagraph (A)(ii) of that subsection to any designated point of entry within the recipient country; and’’;

(3) in subsection (f)(1)— (A) by redesignating subparagraphs (E) and (F) as

subparagraphs (F) and (G), respectively; and (B) by inserting after subparagraph (D) the following: ‘‘(E) ensure to the maximum extent practicable that

assistance— ‘‘(i) is provided under this section in a timely

manner; and ‘‘(ii) is available when needed throughout the

applicable school year;’’; and (4) in subsection (l)—

(A) in paragraph (2), by striking ‘‘2018’’ and inserting ‘‘2023’’; and

(B) by adding at the end the following: ‘‘(4) PURCHASE OF COMMODITIES.—Of the funds made avail-

able to carry out this section, not more than 10 percent shall be used to purchase agricultural commodities described in sub- section (a)(2).’’.

SEC. 3310. GLOBAL CROP DIVERSITY TRUST.

Section 3202 of the Food, Conservation, and Energy Act of 2008 (22 U.S.C. 2220a note; Public Law 110–246) is amended—

(1) by amending subsection (b) to read as follows: ‘‘(b) UNITED STATES CONTRIBUTION LIMIT.—

‘‘(1) IN GENERAL.—The aggregate contributions of funds of the Federal Government provided to the Trust shall not exceed—

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132 STAT. 4623PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(A) for the period of fiscal years 2014 through 2018, 25 percent of the total amount of funds contributed to the Trust from all sources; and

‘‘(B) subject to paragraph (2), effective beginning with fiscal year 2019, 33 percent of the total amount of funds contributed to the Trust from all sources. ‘‘(2) ANNUAL LIMITATION.—The contributions of funds of

the Federal Government provided to the Trust shall not exceed $5,500,000 for each of fiscal years 2019 through 2023.’’; and

(2) in subsection (c), by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 3311. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.

Section 3206(e)(1) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1726c(e)(1)) is amended—

(1) by inserting ‘‘to the Secretary’’ after ‘‘appropriated’’; and

(2) by striking ‘‘2014 through 2018’’ and inserting ‘‘2019 through 2023’’.

SEC. 3312. FOREIGN TRADE MISSIONS.

(a) TRIBAL REPRESENTATION ON TRADE MISSIONS.— (1) IN GENERAL.—The Secretary, in consultation with the

Tribal Advisory Committee established under subsection (b)(2) of section 309 of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6921(b)(2)) (as added by section 12303(2)) (referred to in this section as the ‘‘Advisory Committee’’), shall seek—

(A) to support the greater inclusion of Tribal agricul- tural and food products in Federal trade-related activities; and

(B) to increase the collaboration between Federal trade promotion efforts and other Federal trade-related activities in support of the greater inclusion sought under subpara- graph (A). (2) INTERDEPARTMENTAL COORDINATION.—In carrying out

activities to increase the collaboration described in paragraph (1)(B), the Secretary shall coordinate with—

(A) the Secretary of Commerce; (B) the Secretary of State; (C) the Secretary of the Interior; and (D) the heads of any other relevant Federal agencies.

(b) REPORT; GOALS.— (1) REPORT.—Not later than 2 years after the date of enact-

ment of this Act, the Secretary shall submit a report describing the efforts of the Department of Agriculture and other Federal agencies under this section to—

(A) the Advisory Committee; (B) the Committee on Agriculture of the House of Rep-

resentatives; (C) the Committee on Energy and Commerce of the

House of Representatives; (D) the Committee on Agriculture, Nutrition, and For-

estry of the Senate; (E) the Committee on Commerce, Science, and

Transportation of the Senate; and (F) the Committee on Indian Affairs of the Senate.

7 USC 5608.

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132 STAT. 4624 PUBLIC LAW 115–334—DEC. 20, 2018

(2) GOALS.—Not later than 90 days after the date of enact- ment of this Act, the Secretary shall establish goals for meas- uring, in an objective and quantifiable format, the extent to which Indian Tribes and Tribal agricultural and food products are included in the trade-related activities of the Department of Agriculture.

TITLE IV—NUTRITION

Subtitle A—Supplemental Nutrition Assistance Program

SEC. 4001. REQUIREMENTS FOR ONLINE ACCEPTANCE OF BENEFITS.

(a) DEFINITION.—Section 3(o)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(o)(1)) is amended by striking ‘‘or house- to-house trade route’’ and inserting ‘‘, house-to-house trade route, or online entity’’.

(b) ACCEPTANCE OF BENEFITS.—Section 7(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(k)) is amended—

(1) by striking the heading and inserting ‘‘ACCEPTANCE OF PROGRAM BENEFITS THROUGH ONLINE TRANSACTIONS’’,

(2) in paragraph (4) by striking subparagraph (C), and (3) by striking paragraph (5).

SEC. 4002. RE-EVALUATION OF THRIFTY FOOD PLAN.

Section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(u)) is amended by inserting after the 1st sentence the fol- lowing: ‘‘By 2022 and at 5-year intervals thereafter, the Secretary shall re-evaluate and publish the market baskets of the thrifty food plan based on current food prices, food composition data, consump- tion patterns, and dietary guidance.’’. SEC. 4003. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

(a) IN GENERAL.—Section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)) is amended—

(1) by striking paragraph (4) and inserting the following: ‘‘(4) ADMINISTRATIVE COSTS.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the Secretary shall pay not less than 80 percent of administra- tive costs and distribution costs on Indian reservations as the Secretary determines necessary for effective adminis- tration of such distribution by a State agency or tribal organization.

‘‘(B) WAIVER.—The Secretary shall waive up to 100 percent of the non-Federal share of the costs described in subparagraph (A) if the Secretary determines that—

‘‘(i) the tribal organization is financially unable to provide a greater non-Federal share of the costs; or

‘‘(ii) providing a greater non-Federal share of the costs would be a substantial burden for the tribal organization. ‘‘(C) LIMITATION.—The Secretary may not reduce any

benefits or services under the food distribution program on Indian reservations under this subsection to any tribal

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132 STAT. 4625PUBLIC LAW 115–334—DEC. 20, 2018

organization that is granted a waiver under subparagraph (B).

‘‘(D) TRIBAL CONTRIBUTION.—The Secretary may allow a tribal organization to use funds provided to the tribal organization through a Federal agency or other Federal benefit to satisfy all or part of the non-Federal share of the costs described in subparagraph (A) if that use is otherwise consistent with the purpose of the funds.’’, (2) in paragraph (6)—

(A) in the heading by striking ‘‘LOCALLY-GROWN’’ and inserting ‘‘LOCALLY- AND REGIONALLY-GROWN’’,

(B) in subparagraph (A) by striking ‘‘locally-grown’’ and inserting ‘‘locally- and regionally-grown’’,

(C) in subparagraph (C)— (i) in the heading by striking ‘‘LOCALLY GROWN’’

and inserting ‘‘LOCALLY- AND REGIONALLY-GROWN’’, and (ii) by striking ‘‘locally-grown’’ and inserting

‘‘locally- and regionally-grown’’, (D) by amending subparagraph (D) to read as follows: ‘‘(D) PURCHASE OF FOODS.—In carrying out this para-

graph, the Secretary shall purchase or offer to purchase those traditional foods that may be procured cost-effec- tively.’’,

(E) by striking subparagraph (E), and (F) in subparagraph (F)—

(i) by striking ‘‘(F)’’ and inserting ‘‘(E)’’, and (ii) by striking ‘‘2018’’ and inserting ‘‘2023’’, and

(3) by adding at the end the following: ‘‘(7) AVAILABILITY OF FUNDS.—

‘‘(A) IN GENERAL.—Funds made available for a fiscal year to carry out this subsection shall remain available for obligation for a period of 2 fiscal years.

‘‘(B) ADMINISTRATIVE COSTS.—Funds made available for a fiscal year to carry out paragraph (4) shall remain avail- able for obligation by the State agency or tribal organiza- tion for a period of 2 fiscal years.’’.

(b) DEMONSTRATION PROJECT FOR TRIBAL ORGANIZATIONS.— (1) DEFINITIONS.—In this subsection:

(A) DEMONSTRATION PROJECT.—The term ‘‘demonstra- tion project’’ means the demonstration project established under paragraph (2).

(B) FOOD DISTRIBUTION PROGRAM.—The term ‘‘food dis- tribution program’’ means the food distribution program on Indian reservations carried out under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)).

(C) INDIAN RESERVATION.—The term ‘‘Indian reserva- tion’’ has the meaning given the term ‘‘reservation’’ in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012).

(D) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning given the term in section 4 of the Indian Self- Determination and Education Assistance Act (25 U.S.C. 5304).

(E) SELF-DETERMINATION CONTRACT.—The term ‘‘self- determination contract’’ has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).

7 USC 2013 note.

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132 STAT. 4626 PUBLIC LAW 115–334—DEC. 20, 2018

(F) TRIBAL ORGANIZATION.—The term ‘‘tribal organiza- tion’’ has the meaning given the term in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012). (2) ESTABLISHMENT.—Subject to the availability of appro-

priations, the Secretary shall establish a demonstration project under which 1 or more tribal organizations may enter into self-determination contracts to purchase agricultural commod- ities under the food distribution program for the Indian reserva- tion of that tribal organization.

(3) ELIGIBILITY.— (A) CONSULTATION.—The Secretary shall consult with

the Secretary of the Interior and Indian tribes to determine the process and criteria under which a tribal organization may participate in the demonstration project.

(B) CRITERIA.—The Secretary shall select for participa- tion in the demonstration project tribal organizations that—

(i) are successfully administering the food distribu- tion program of the tribal organization under section 4(b)(2)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)(2)(B)),

(ii) have the capacity to purchase agricultural commodities in accordance with paragraph (4) for the food distribution program of the tribal organization, and

(iii) meet any other criteria determined by the Secretary, in consultation with the Secretary of the Interior and Indian tribes.

(4) PROCUREMENT OF AGRICULTURAL COMMODITIES.—Any agricultural commodities purchased by a tribal organization under the demonstration project shall—

(A) be domestically produced, (B) supplant, not supplement, the type of agricultural

commodities in existing food packages for that tribal organization,

(C) be of similar or higher nutritional value as the type of agricultural commodities that would be supplanted in the existing food package for that tribal organization, and

(D) meet any other criteria determined by the Sec- retary. (5) REPORT.—Not later than 1 year after the date on which

funds are appropriated under paragraph (6) and annually there- after, the Secretary shall submit to the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the activities carried out under the demonstration project during the preceding year.

(6) FUNDING.— (A) AUTHORIZATION OF APPROPRIATIONS.—There is

authorized to be appropriated to the Secretary to carry out this subsection $5,000,000, to remain available until expended.

(B) APPROPRIATIONS IN ADVANCE.—Only funds appro- priated under subparagraph (A) in advance specifically to carry out this subsection shall be available to carry out this subsection.

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132 STAT. 4627PUBLIC LAW 115–334—DEC. 20, 2018

(c) CONFORMING AMENDMENT.—Section 3(v) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(v)) is amended by striking ‘‘the Indian Self-Determination Act (25 U.S.C. 450b(b))’’ and inserting ‘‘section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)’’.

SEC. 4004. SIMPLIFIED HOMELESS HOUSING COSTS.

Section 5(e)(6)(D) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(D)) is amended—

(1) by redesignating clause (ii) as clause (iii), and (2) by striking clause (i) and inserting the following:

‘‘(i) ALTERNATIVE DEDUCTION.—The State agency shall allow a deduction of $143 a month for house- holds—

‘‘(I) in which all members are homeless individuals;

‘‘(II) that are not receiving free shelter throughout the month; and

‘‘(III) that do not opt to claim an excess shelter expense deduction under subparagraph (A). ‘‘(ii) ADJUSTMENT.—For fiscal year 2019 and each

subsequent fiscal year the amount of the homeless shelter deduction specified in clause (i) shall be adjusted to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.’’.

SEC. 4005. EMPLOYMENT AND TRAINING FOR SUPPLEMENTAL NUTRI- TION ASSISTANCE PROGRAM.

(a) EMPLOYMENT AND TRAINING PROGRAMS THAT MEET STATE AND LOCAL WORKFORCE NEEDS.—Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended—

(1) in subparagraph (A)— (A) in clause (i)—

(i) by inserting ‘‘, in consultation with the State workforce development board, or, if the State dem- onstrates that consultation with private employers or employer organizations would be more effective or effi- cient, in consultation with private employers or employer organizations,’’ after ‘‘designed by the State agency’’, and

(ii) by striking ‘‘that will increase their ability to obtain regular employment.’’ and inserting the fol- lowing: ‘‘that will—

‘‘(I) increase the ability of the household mem- bers to obtain regular employment; and

‘‘(II) meet State or local workforce needs.’’, and

(B) in clause (ii) by inserting ‘‘and implemented to meet the purposes of clause (i)’’ after ‘‘under this para- graph’’, (2) in subparagraph (B)—

(A) in the matter preceding clause (i), by inserting ‘‘case management services such as comprehensive intake

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132 STAT. 4628 PUBLIC LAW 115–334—DEC. 20, 2018

assessments, individualized service plans, progress moni- toring, or coordination with service providers and’’ after ‘‘contains’’,

(B) in clause (iv) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and indenting appropriately,

(C) by redesignating clauses (i) through (vii) and clause (viii) as subclauses (I) through (VII) and subclause (IX), respectively, and indenting appropriately,

(D) by striking subclause (I), as so redesignated, and inserting the following:

‘‘(I) Supervised job search programs that occur at State-approved locations at which the activities of participants shall be directly supervised and the timing and activities of participants tracked in accordance with guidelines issued by the State.’’,

(E) in subclause (II), as so redesignated, by striking ‘‘jobs skills assessments, job finding clubs, training in tech- niques for’’ and inserting ‘‘employability assessments, training in techniques to increase’’,

(F) in subclause (IV), as so redesignated, in the first sentence, by inserting ‘‘, including subsidized employment and apprenticeships’’ before the period at the end,

(G) in subclause (VII), as so redesignated, by inserting ‘‘not less than 30 days but’’ after ‘‘period of’’,

(H) by inserting after subclause (VII), as so redesig- nated, the following:

‘‘(VIII) Programs and activities under clause (iv) of section 16(h)(1)(F) that the Secretary deter- mines, based on results from the independent evaluations conducted under clause (vii)(I) of such section, have the most demonstrable impact on the ability of participants to find and retain employment that leads to increased household income and reduced reliance on public assistance.’’,

(I) in the matter preceding subclause (I), as so redesig- nated—

(i) by striking ‘‘this subparagraph’’ and inserting ‘‘this clause’’, and

(ii) by striking ‘‘(B) For purposes of this Act, an’’ and inserting the following: ‘‘(B) DEFINITIONS.—In this Act:

‘‘(i) EMPLOYMENT AND TRAINING PROGRAM.—The term’’, and (J) by adding at the end the following:

‘‘(ii) WORKFORCE PARTNERSHIP.— ‘‘(I) IN GENERAL.—The term ‘workforce part-

nership’ means a program that— ‘‘(aa) is operated by—

‘‘(AA) a private employer, an organiza- tion representing private employers, or a nonprofit organization providing services relating to workforce development; or

‘‘(BB) an entity identified as an eligible provider of training services under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d));

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132 STAT. 4629PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(bb) the Secretary certifies, or the State agency certifies to the Secretary—

‘‘(AA) subject to subparagraph (N)(ii), would assist participants who are mem- bers of households participating in the supplemental nutrition assistance pro- gram in gaining high-quality, work-rel- evant skills, training, work, or experience that will increase the ability of the partici- pants to obtain regular employment;

‘‘(BB) subject to subparagraph (N)(ii), would provide participants with not less than 20 hours per week of training, work, or experience under subitem (AA);

‘‘(CC) would not use any funds author- ized to be appropriated by this Act;

‘‘(DD) would provide sufficient information, on request by the State agency, for the State agency to determine that participants who are members of households participating in the supple- mental nutrition assistance program are fulfilling any applicable work requirement under this subsection or subsection (o);

‘‘(EE) would be willing to serve as a reference for participants who are mem- bers of households participating in the supplemental nutrition assistance pro- gram for future employment or work- related programs; and

‘‘(FF) meets any other criteria estab- lished by the Secretary, on the condition that the Secretary shall not establish any additional criteria that would impose significant paperwork burdens on the workforce partnership; and ‘‘(cc) is in compliance with the Fair Labor

Standards Act of 1938 (29 U.S.C. 201 et seq.), if applicable. ‘‘(II) INCLUSION.—The term ‘workforce partner-

ship’ includes a multistate program.’’, (3) in subparagraph (E)—

(A) in the second sentence, by striking ‘‘Such require- ments’’ and inserting the following:

‘‘(ii) VARIATION.—The requirements under clause (i)’’, (B) by striking ‘‘(E) Each State’’ and inserting the

following: ‘‘(E) REQUIREMENTS FOR PARTICIPATION FOR CERTAIN

INDIVIDUALS.— ‘‘(i) IN GENERAL.—Each State’’, and

(C) by adding at the end the following: ‘‘(iii) APPLICATION TO WORKFORCE PARTNERSHIPS.—

To the extent that a State agency requires an indi- vidual to participate in an employment and training program, the State agency shall consider an individual participating in a workforce partnership to be in

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132 STAT. 4630 PUBLIC LAW 115–334—DEC. 20, 2018

compliance with the employment and training require- ments.’’,

(4) in subparagraph (H), by striking ‘‘(B)(v)’’ and inserting ‘‘(B)(i)(V)’’, and

(5) by adding at the end the following: ‘‘(N) WORKFORCE PARTNERSHIPS.—

‘‘(i) CERTIFICATION.—In certifying that a program meets the requirements of subitems (AA) and (BB) of subparagraph (B)(ii)(I)(bb) to be certified as a workforce partnership, the Secretary or the State agency shall require that the program submit to the Secretary or State agency sufficient information that describes—

‘‘(I) the services and activities of the program that would provide participants with not less than 20 hours per week of training, work, or experience under those subitems; and

‘‘(II) how the program would provide services and activities described in subclause (I) that would directly enhance the employability or job readiness of the participant. ‘‘(ii) SUPPLEMENT, NOT SUPPLANT.—A State agency

may use a workforce partnership to supplement, not to supplant, the employment and training program of the State agency.

‘‘(iii) PARTICIPATION.—A State agency— ‘‘(I) shall—

‘‘(aa) maintain a list of workforce partner- ships certified under subparagraph (B)(ii)(I)(bb); and

‘‘(bb) not less frequently than at certifi- cation and recertification, provide to a house- hold member subject to work requirements under subsection (d)(1) or subsection (o), elec- tronically or by other means, the list described in item (aa); but ‘‘(II) may not require any member of a house-

hold participating in the supplemental nutrition assistance program to participate in a workforce partnership. ‘‘(iv) EFFECT.—

‘‘(I) IN GENERAL.—A workforce partnership shall not replace the employment or training of an individual not participating in the workforce partnership.

‘‘(II) SELECTION.—Nothing in this subsection or subsection (o) affects the criteria or screening process for selecting participants by a workforce partnership. ‘‘(v) LIMITATION ON REPORTING REQUIREMENTS.—

In carrying out this subparagraph, the Secretary and each applicable State agency shall limit the reporting requirements of a workforce partnership to—

‘‘(I) on notification that an individual is receiving supplemental nutrition assistance pro- gram benefits, notifying the applicable State

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132 STAT. 4631PUBLIC LAW 115–334—DEC. 20, 2018

agency that the individual is participating in the workforce partnership;

‘‘(II) identifying participants who have com- pleted or are no longer participating in the workforce partnership;

‘‘(III) identifying changes to the workforce partnership that result in the workforce partner- ship no longer meeting the certification require- ments of the Secretary or the State agency under subparagraph (B)(ii)(I)(bb); and

‘‘(IV) providing sufficient information, on request by the State agency, for the State agency to verify that a participant is fulfilling any applicable work requirements under this sub- section or subsection (o).

‘‘(O) REFERRAL OF CERTAIN INDIVIDUALS.— ‘‘(i) IN GENERAL.—In accordance with such regula-

tions as may be issued by the Secretary, with respect to any individual who is not eligible for an exemption under paragraph (2) and who is determined by the operator of an employment and training program component to be ill-suited to participate in that employ- ment and training program component, the State agency shall—

‘‘(I) refer the individual to an appropriate employment and training program component;

‘‘(II) refer the individual to an appropriate workforce partnership, if available;

‘‘(III) reassess the physical and mental fitness of the individual under paragraph (1)(A); or

‘‘(IV) to the maximum extent practicable, coordinate with other Federal, State, or local workforce or assistance programs to identify work opportunities or assistance for the individual. ‘‘(ii) PROCESS.—In carrying out clause (i), the State

agency shall ensure that an individual undergoing and complying with the process established under that clause shall not be found to have refused without good cause to participate in an employment and training program.’’.

(b) WORK REQUIREMENTS.—Section 6(o) of the Food and Nutri- tion Act of 2008 (7 U.S.C. 2015(o)) is amended—

(1) in paragraph (1)— (A) in subparagraph (B) by striking ‘‘and’’ at the end, (B) in subparagraph (C) by striking ‘‘job search pro-

gram or a job search training program.’’ and inserting ‘‘supervised job search program or job search training pro- gram;’’, and

(C) by adding at the end the following: ‘‘(D) a program of employment and training for vet-

erans operated by the Department of Labor or the Depart- ment of Veterans Affairs, and approved by the Secretary; and

‘‘(E) a workforce partnership under subsection (d)(4)(N).’’, (2) in paragraph (4)(A) by inserting ‘‘and with the support

of the chief executive officer of the State’’ after ‘‘agency’’, and

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132 STAT. 4632 PUBLIC LAW 115–334—DEC. 20, 2018

(3) in paragraph (6)— (A) in the heading by striking ‘‘15-PERCENT EXEMPTION’’

and inserting ‘‘EXEMPTIONS’’, (B) in subparagraph (B) by striking ‘‘(G)’’ and inserting

‘‘(H)’’, (C) in subparagraph (C) by striking ‘‘(E) and (G)’’ and

inserting ‘‘(F) and (H)’’ , (D) in subparagraph (D)—

(i) in the heading by striking ‘‘SUBSEQUENT FISCAL YEARS’’ and inserting ‘‘FISCAL YEARS 1999 THROUGH 2019’’,

(ii) by striking ‘‘(E) through (G)’’ and inserting ‘‘(F) through (H)’’, and

(iii) by striking ‘‘year,’’ and inserting ‘‘year through fiscal year 2019,’’, (E) in subparagraph (E) by striking ‘‘or (D)’’ and

inserting ‘‘, (D), or (E)’’, (F) by redesignating subparagraphs (E), (F), and (G)

as subparagraphs (F), (G), and (H), respectively, and (G) by inserting after subparagraph (D) the following: ‘‘(E) SUBSEQUENT FISCAL YEARS.—Subject to subpara-

graphs (F) through (H), for fiscal year 2020 and each subse- quent fiscal year, a State agency may provide a number of exemptions such that the average monthly number of exemptions in effect during the fiscal year does not exceed 12 percent of the number of covered individuals in the State, as estimated by the Secretary under subparagraph (C), adjusted by the Secretary to reflect changes in the State’s caseload and the Secretary’s estimate of changes in the proportion of members of households that receive supplemental nutrition assistance program benefits covered by waivers granted under paragraph (4).’’.

(c) STATE PLANS.—Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is amended—

(1) in subsection (e)(19) by inserting ‘‘the extent to which such programs will be carried out in coordination with the activities carried out under title I of the Workforce Innovation and Opportunity Act (29 U.S.C. 3111 et seq.),’’ before ‘‘and the basis,’’, and

(2) by adding at the end the following: ‘‘(w) For households containing at least one adult, with no

elderly or disabled members and with no earned income at their last certification or required report, a State agency shall, at the time of recertification, be required to advise members of the house- hold not exempt under section 6(d)(2) regarding available employ- ment and training services.’’.

(d) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.—Sec- tion 16(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)) is amended—

(1) in paragraph (1)— (A) in subparagraph (A) by striking ‘‘$90,000,000’’ and

inserting ‘‘$103,900,000’’, (B) in subparagraph (C)—

(i) in clause (i) by inserting ‘‘, subject to clauses (ii) through (v),’’ after ‘‘(B), the Secretary’’, and

(ii) by adding at the end the following:

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132 STAT. 4633PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(iv) PRIORITY.—The Secretary shall reallocate funds under this subparagraph as follows:

‘‘(I)(aa) Subject to items (bb) and (cc), not less than 50 percent shall be reallocated to State agen- cies requesting such funds to conduct employment and training programs and activities for which such State agencies had previously received funding under subparagraph (F)(viii) that the Sec- retary determines have the most demonstrable impact on the ability of participants to find and retain employment that leads to increased house- hold income and reduced reliance on public assist- ance.

‘‘(bb) The Secretary shall base the determina- tion under item (aa) on—

‘‘(AA) project results from the independent evaluations conducted under subparagraph (F)(vii)(I); or

‘‘(BB) if the project results from the inde- pendent evaluations conducted under subpara- graph (F)(vii)(I) are not yet available, the reports under subparagraph (F)(vii)(II) or other information relating to performance of the programs and activities funded under subparagraph (F)(viii). ‘‘(cc) Employment and training activities

funded under this subclause are not subject to subparagraph (F)(vii), but are subject to moni- toring under paragraph (h)(5).

‘‘(II) Not less than 30 percent shall be reallo- cated to State agencies requesting such funds to implement or continue employment and training programs and activities under section 6(d)(4)(B)(i) that the Secretary determines have the most demonstrable impact on the ability of participants to find and retain employment that leads to increased household income and reduced reliance on public assistance, including programs and activities that are targeted to—

‘‘(aa) individuals 50 years of age or older; ‘‘(bb) formerly incarcerated individuals; ‘‘(cc) individuals participating in a sub-

stance abuse treatment program; ‘‘(dd) homeless individuals; ‘‘(ee) people with disabilities seeking to

enter the workforce; ‘‘(ff) other individuals with substantial

barriers to employment; or ‘‘(gg) households facing multi-generational

poverty, to support employment and workforce participation through an integrated and family-focused approach in providing sup- portive services. ‘‘(III) The Secretary shall reallocate any

remaining funds available under this subpara- graph, to State agencies requesting such funds to use for employment and training programs and

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132 STAT. 4634 PUBLIC LAW 115–334—DEC. 20, 2018

activities that the Secretary determines have the most demonstrable impact on the ability of partici- pants to find and retain employment that leads to increased household income and reduced reli- ance on public assistance under section 6(d)(4)(B)(i). ‘‘(v) CONSIDERATION.—In reallocating funds under

this subparagraph, a State agency that receives reallo- cated funds under clause (iv)(I) may also be considered for reallocated funding under clause (iv)(II).’’, and (C) in subparagraph (D) by striking ‘‘$50,000’’ and

inserting ‘‘$100,000’’, and (2) in paragraph (5)(B) by adding at the end the following:

‘‘(v) STATE OPTION.—The State agency may report relevant data from a workforce partnership carried out under section 6(d)(4)(N) to demonstrate the number of program participants served by the workforce part- nership.’’.

(e) EXPIRED AUTHORITY.—Section 17(b) of the Food and Nutri- tion Act of 2008 (7 U.S.C. 2026(b)) is amended—

(1) by striking paragraph (2), and (2) by redesignating paragraph (3) as paragraph (2).

SEC. 4006. IMPROVEMENTS TO ELECTRONIC BENEFIT TRANSFER SYSTEM.

(a) EBT PORTABILITY.—Section 7(f)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(f)(5)) is amended by adding at the end the following:

‘‘(C) OPERATION OF INDIVIDUAL POINT OF SALE DEVICE BY FARMERS’ MARKETS AND DIRECT MARKETING FARMERS.— A farmers’ market or direct marketing farmer that is exempt under paragraph (2)(B)(i) shall be allowed to operate an individual electronic benefit transfer point of sale device at more than 1 location under the same supple- mental nutrition assistance program authorization, if—

‘‘(i) the farmers’ market or direct marketing farmer provides to the Secretary information on location and hours of operation at each location; and

‘‘(ii)(I) the point of sale device used by the farmers’ market or direct marketing farmer is capable of pro- viding location information of the device through the electronic benefit transfer system; or

‘‘(II) if the Secretary determines that the tech- nology is not available for a point of sale device to meet the requirement under subclause (I), the farmers’ market or direct marketing farmer provides to the Secretary any other information, as determined by the Secretary, necessary to ensure the integrity of trans- actions processed using the point of sale device.’’.

(b) MODERNIZATION OF ELECTRONIC BENEFIT TRANSFER REGU- LATIONS.—The 1st sentence of section 7(h)(2) of the Food and Nutri- tion Act of 2008 (7 U.S.C. 2016(h)(2)) is amended by inserting ‘‘and shall periodically review such regulations and modify such regulations to take into account evolving technology and comparable industry standards’’ before the period at the end.

(c) BENEFIT RECOVERY.—Section 7(h)(12) of the Food and Nutri- tion Act of 2008 (7 U.S.C. 2016(h)(12)) is amended—

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132 STAT. 4635PUBLIC LAW 115–334—DEC. 20, 2018

(1) in subparagraph (A) by inserting ‘‘, or due to the death of all members of the household’’ after ‘‘inactivity’’, and

(2) by striking subparagraphs (B) and (C) and inserting the following:

‘‘(B) BENEFIT STORAGE.— ‘‘(i) IN GENERAL.—A State agency may store recov-

ered electronic benefits off-line in accordance with clause (ii), if the household has not accessed the account after 3 months.

‘‘(ii) NOTICE OF BENEFIT STORAGE.—A State agency shall—

‘‘(I) send notice to a household the benefits of which are stored under clause (i); and

‘‘(II) not later than 48 hours after request by the household, make the stored benefits avail- able to the household.

‘‘(C) BENEFIT EXPUNGING.— ‘‘(i) IN GENERAL.—Subject to clause (ii), a State

agency shall expunge benefits that have not been accessed by a household after a period of 9 months, or upon verification that all members of the household are deceased.

‘‘(ii) NOTICE OF BENEFIT EXPUNGING.—Not later than 30 days before benefits are to be expunged under clause (i), a State agency shall—

‘‘(I) provide sufficient notice to the household that benefits will be expunged due to inactivity, and the date upon which benefits will be expunged;

‘‘(II) for benefits stored off-line in accordance with subparagraph (B), provide the household an opportunity to request that such benefits be restored to the household; and

‘‘(III) not later than 48 hours after request by the household, make the benefits available to the household.’’.

(d) PROHIBITED FEES.—Section 7 of the Food and Nutrition Act of 2008 (7 U.S.C. 2016) is amended—

(1) by amending subsection (h)(13) to read as follows: ‘‘(13) FEES.—

‘‘(A) INTERCHANGE FEES.—No interchange fees shall apply to electronic benefit transfer transactions under this subsection.

‘‘(B) OTHER FEES.—Effective through fiscal year 2023, neither a State, nor any agent, contractor, or subcontractor of a State who facilitates the provision of supplemental nutrition assistance program benefits in such State may impose a fee for switching (as defined in subsection (j)(1)(H)) or routing such benefits.’’, and (2) by amending subsection (j)(1)(H) to read as follows:

‘‘(H) SWITCHING.—The term ‘switching’ means the routing of an intrastate or interstate transaction that con- sists of transmitting the details of a transaction electroni- cally recorded through the use of an electronic benefit transfer card in one State to the issuer of the card that may be in the same or different State.’’.

(e) MOBILE TECHNOLOGIES.—Section 7(h)(14) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(14)) is amended—

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132 STAT. 4636 PUBLIC LAW 115–334—DEC. 20, 2018

(1) by amending subparagraph (A) to read as follows: ‘‘(A) IN GENERAL.—Subject to subparagraph (B), the

Secretary shall authorize the use of mobile technologies for the purpose of accessing supplemental nutrition assist- ance program benefits.’’, (2) in subparagraph (B)—

(A) by striking the heading and inserting ‘‘DEMONSTRA- TION PROJECTS ON ACCESS OF BENEFITS THROUGH MOBILE TECHNOLOGIES’’,

(B) by amending clause (i) to read as follows: ‘‘(i) DEMONSTRATION PROJECTS.—Before author-

izing implementation of subparagraph (A) in all States, the Secretary shall approve not more than 5 dem- onstration project proposals submitted by State agen- cies that will pilot the use of mobile technologies for supplemental nutrition assistance program benefits access.’’, (C) in clause (ii)—

(i) in the heading by striking ‘‘DEMONSTRATION PROJECTS’’ and inserting ‘‘PROJECT REQUIREMENTS’’,

(ii) by striking ‘‘retail food store’’ the first place it appears and inserting ‘‘State agency’’,

(iii) by striking ‘‘includes’’, (iv) by striking subclauses (I), (II), (III), and (IV),

and inserting the following: ‘‘(I) provides recipient protections regarding

privacy, ease of use, household access to benefits, and support similar to the protections provided under existing methods;

‘‘(II) ensures that all recipients, including those without access to mobile payment technology and those who shop across State borders, have a means of benefit access;

‘‘(III) requires retail food stores, unless exempt under section 7(f)(2)(B), to bear the costs of acquiring and arranging for the implementation of point-of-sale equipment and supplies for the redemption of benefits that are accessed through mobile technologies;

‘‘(IV) requires that foods purchased with bene- fits issued under this section through mobile tech- nologies 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 deter- mined by the Secretary;

‘‘(V) ensures adequate documentation for each authorized transaction, adequate security meas- ures to deter fraud, and adequate access to retail food stores that accept benefits accessed through mobile technologies, as determined by the Sec- retary;

‘‘(VI) provides for an evaluation of the dem- onstration project, including, but not limited to, an evaluation of household access to benefits;

‘‘(VII) requires that the State demonstration projects are voluntary for all retail food stores

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132 STAT. 4637PUBLIC LAW 115–334—DEC. 20, 2018

and that all recipients are able to use benefits in non-participating retail food stores; and

‘‘(VIII) meets other criteria as established by the Secretary.’’,

(D) by amending clause (iii) to read as follows: ‘‘(iv) DATE OF PROJECT APPROVAL.—The Secretary

shall solicit and approve the qualifying demonstration projects required under subparagraph (B)(i) not later than January 1, 2021.’’, and (E) by inserting after clause (ii) the following:

‘‘(iii) PRIORITY.—The Secretary may prioritize dem- onstration project proposals that would—

‘‘(I) reduce fraud; ‘‘(II) encourage positive nutritional outcomes;

and ‘‘(III) meet such other criteria as determined

by the Secretary.’’, and (3) in subparagraph (C)(i)—

(A) by striking ‘‘2017’’ and inserting ‘‘2022’’, and (B) by inserting ‘‘requires further study by way of

an extended pilot period or’’ after ‘‘States’’ the 2d place it appears.

(f) APPROVAL OF RETAIL FOOD STORES.—Section 9 of the Food and Nutrition Act (7 U.S.C. 2018) is amended—

(1) in subsection (a)(1)— (A) in the 4th sentence by striking ‘‘No retail food

store’’ and inserting the following: ‘‘(D) VISIT REQUIRED.—No retail food store’’, (B) in the 3d sentence by striking ‘‘Approval’’ and

inserting the following: ‘‘(C) CERTIFICATE.—Approval’’, (C) in the 2d sentence—

(i) by striking ‘‘food; and (D) the’’ and inserting the following: ‘‘food;

‘‘(iv) any information, if available, about the ability of the anticipated or existing electronic benefit transfer equipment and service provider of the applicant to provide sufficient information through the electronic benefit transfer system to minimize the risk of fraudu- lent transactions; and

‘‘(v) the’’, (ii) by striking ‘‘concern; (C) whether’’ and inserting

the following: ‘‘concern; ‘‘(iii) whether’’, (iii) by striking ‘‘applicant; (B) the’’ and inserting

the following: ‘‘applicant; ‘‘(ii) the’’, (iv) by striking ‘‘following: (A) the nature’’ and

inserting the following: ‘‘following: ‘‘(i) the nature’’, and (v) in the matter preceding clause (i), as so des-

ignated, by striking ‘‘In determining’’ and inserting the following: ‘‘(B) FACTORS FOR CONSIDERATION.—In determining’’,

and (D) in the 1st sentence by striking ‘‘(a)(1) Regulations’’

and inserting the following:

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132 STAT. 4638 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(a) AUTHORIZATION TO ACCEPT AND REDEEM BENEFITS.— ‘‘(1) APPLICATIONS.—

‘‘(A) IN GENERAL.—Regulations’’, (2) in subsection (a) by adding at the end the following: ‘‘(4) ELECTRONIC BENEFIT TRANSFER EQUIPMENT AND

SERVICE PROVIDERS.—Before implementing clause (iv) of para- graph (1)(B), the Secretary shall issue guidance for retail food stores on how to select electronic benefit transfer equipment and service providers that are able to meet the requirements of that clause.’’, and

(3) in the 1st sentence of subsection (c) by inserting ‘‘records relating to electronic benefit transfer equipment and related services, transaction and redemption data provided through the electronic benefit transfer system,’’ after ‘‘purchase invoices,’’.

SEC. 4007. REVIEW OF SUPPLEMENTAL NUTRITION ASSISTANCE PRO- GRAM OPERATIONS.

Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is amended by adding at the end the following:

‘‘(i) REVIEW OF PROGRAM OPERATIONS.— ‘‘(1) REVIEW BY THE SECRETARY.—The Secretary—

‘‘(A) shall review a representative sample of currently authorized facilities referred to in section 3(k)(3) to deter- mine whether benefits are properly used by or on behalf of participating households residing in such facilities and whether such facilities are using more than 1 source of Federal or State funding to meet the food needs of resi- dents;

‘‘(B) may carry out similar reviews for currently partici- pating residential drug and alcohol treatment and rehabilitation programs, and group living arrangements for the blind and disabled, referred to in section 3(k);

‘‘(C) shall gather information, and such facilities, pro- grams, and arrangements shall be required to submit information deemed necessary for a full and thorough review; and

‘‘(D) shall report the results of these reviews to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate not later than 18 months after the date of the enactment of the Agriculture Improvement Act of 2018, along with recommendations regarding—

‘‘(i) any additional requirements or oversight that would be appropriate for such facilities, programs, and arrangements; and

‘‘(ii) whether such facilities, programs, and arrangements should continue to be authorized to participate in the supplemental nutrition assistance program.

‘‘(2) LIMITATION.—Nothing in this subsection shall authorize the Secretary to deny any application for continued authorization, any application for authorization, or any request to withdraw the authorization of any such facility, program, or arrangement based on a determination that residents of any such facility or entity are residents of an institution for

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132 STAT. 4639PUBLIC LAW 115–334—DEC. 20, 2018

a period of 18 months from the date of enactment of the Agriculture Improvement Act of 2018.’’.

SEC. 4008. RETAIL INCENTIVES.

Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018), as amended by section 4007, is amended by adding at the end the following:

‘‘(j) INCENTIVES.— ‘‘(1) DEFINITION OF ELIGIBLE INCENTIVE FOOD.—In this sub-

section, the term ‘eligible incentive food’ means— ‘‘(A) a staple food that is identified for increased

consumption, consistent with the most recent dietary rec- ommendations; and

‘‘(B) a fruit, vegetable, dairy, whole grain, or product thereof. ‘‘(2) GUIDANCE.—

‘‘(A) IN GENERAL.—The Secretary shall issue guidance to clarify the process by which an approved retail food store may seek a waiver to offer an incentive, which may be used only for the purchase of an eligible incentive food at the point of purchase, to a household purchasing food with benefits issued under this Act.

‘‘(B) GUIDANCE.—The guidance under subparagraph (A) shall establish a process under which an approved retail food store, prior to carrying out an incentive program under this subsection, shall provide to the Secretary information describing the incentive program, including—

‘‘(i) the types of incentives that will be offered; ‘‘(ii) the types of foods that will be incentivized

for purchase; and ‘‘(iii) an explanation of how the incentive program

intends to support meeting dietary intake goals. ‘‘(3) NO LIMITATION ON BENEFITS.—A waiver granted under

this subsection shall not be used to carry out any activity that limits the use of benefits under this Act or any other Federal nutrition law.

‘‘(4) EFFECT.—Guidance provided under this subsection shall not affect any requirements under section 4405 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517), including the eligibility of a retail food store to participate in a project funded under such section.

‘‘(5) REPORT.—The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Com- mittee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the types of incentives approved under this subsection.’’.

SEC. 4009. REQUIRED ACTION ON DATA MATCH INFORMATION.

Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)) is amended—

(1) in paragraph (24) by striking ‘‘and’’ after the semicolon, (2) in paragraph (25) by striking the period at the end

and inserting ‘‘; and’’, and (3) by adding at the end the following: ‘‘(26) that for a household participating in the supplemental

nutrition assistance program, the State agency shall pursue clarification and verification, if applicable, of information relating to the circumstances of the household received from

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data matches for the purpose of ensuring an accurate eligibility and benefit determination, only if the information—

‘‘(A) appears to present significantly conflicting information from the information that was used by the State agency at the time of certification of the household;

‘‘(B) is obtained from data matches carried out under subsection (q), (r), or (x); or

‘‘(C)(i) is less than 60 days old relative to the current month of participation of the household; and

‘‘(ii) if accurate, would have been required to be reported by the household based on the reporting require- ments assigned to the household by the State agency under section 6(c).’’.

SEC. 4010. INCENTIVIZING TECHNOLOGY MODERNIZATION.

Section 11(t) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(t)) is amended—

(1) by striking the heading and inserting ‘‘GRANTS FOR SIMPLIFIED APPLICATION AND ELIGIBILITY DETERMINATION SYS- TEMS AND IMPROVED ACCESS TO BENEFITS’’,

(2) in paragraph (1) by striking ‘‘implement—’’ and all that follows through the period at the end, and inserting ‘‘imple- ment supplemental nutrition assistance program simplified application and eligibility determination systems.’’, and

(3) in paragraph (2)— (A) by amending subparagraph (B) to read as follows: ‘‘(B) establishing enhanced technological methods that

improve the administrative infrastructure used in proc- essing applications and determining eligibility; or’’,

(B) by striking subparagraphs (C) and (D), and (C) by redesignating subparagraph (E) as subpara-

graph (C). SEC. 4011. INTERSTATE DATA MATCHING TO PREVENT MULTIPLE

ISSUANCES.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020), as amended by section 4005(c), is amended by adding at the end the following:

‘‘(x) NATIONAL ACCURACY CLEARINGHOUSE.— ‘‘(1) DEFINITION OF INDICATION OF MULTIPLE ISSUANCE.—

In this subsection, the term ‘indication of multiple issuance’ means an indication, based on a computer match, that supple- mental nutrition assistance program benefits are being issued to an individual by more than 1 State agency simultaneously.

‘‘(2) ESTABLISHMENT.— ‘‘(A) IN GENERAL.—The Secretary shall establish an

interstate data system, to be known as the ‘National Accuracy Clearinghouse’, to prevent multiple issuances of supplemental nutrition assistance program benefits to an individual by more than 1 State agency simultaneously.

‘‘(B) DATA MATCHING.—The Secretary shall require that State agencies make available to the National Accuracy Clearinghouse only such information as is necessary for the purpose described in subparagraph (A).

‘‘(C) DATA PROTECTION.—The information made avail- able by State agencies under subparagraph (B)—

‘‘(i) shall be used only for the purpose described in subparagraph (A);

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‘‘(ii) shall be exempt from the disclosure require- ments of section 552(a) of title 5 of the United States Code pursuant to section 552(b)(3) of title 5 of the United States Code, to the extent such information is obtained or received by the Secretary;

‘‘(iii) shall not be retained for longer than is nec- essary to accomplish the purpose in subparagraph (A);

‘‘(iv) shall be used in a manner that protects the identity and location of a vulnerable individual (including a victim of domestic violence) that is an applicant for, or recipient of, supplemental nutrition assistance program benefits; and

‘‘(v) shall meet security standards as determined by the Secretary.

‘‘(3) ISSUANCE OF INTERIM FINAL REGULATIONS.—Not later than 18 months after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall promulgate regu- lations (which shall include interim final regulations) to carry out this subsection that—

‘‘(A) incorporate best practices and lessons learned from the pilot program under section 4032(c) of the Agricultural Act of 2014 (7 U.S.C. 2036c(c));

‘‘(B) require a State agency to take appropriate action, as determined by the Secretary, with respect to each indica- tion of multiple issuance of supplemental nutrition assist- ance program benefits, or each indication that an individual receiving such benefits in 1 State has applied to receive such benefits in another State, while ensuring timely and fair service to applicants for, and recipients of, such bene- fits;

‘‘(C) establish standards to limit and protect the information submitted through or retained by the National Accuracy Clearinghouse consistent with paragraph (2)(C);

‘‘(D) establish safeguards to protect— ‘‘(i) the information submitted through or retained

by the National Accuracy Clearinghouse, including by limiting the period of time that information is retained to the period necessary to accomplish the purpose described in paragraph (2)(A); and

‘‘(ii) the privacy of information that is submitted through or retained by the National Accuracy Clearing- house consistent with subsection (e)(8); and ‘‘(E) include such other rules and standards the Sec-

retary determines appropriate to carry out this subsection. ‘‘(4) TIMING.—The initial match and corresponding actions

required by paragraph (3)(B) shall occur within 3 years after the date of the enactment of the Agriculture Improvement Act of 2018.’’.

SEC. 4012. REQUIREMENT OF LIVE-PRODUCTION ENVIRONMENTS FOR CERTAIN PILOT PROJECTS RELATING TO COST SHARING FOR COMPUTERIZATION.

Section 16(g)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(g)(1)) is amended—

(1) in subparagraph (F) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appro- priately;

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132 STAT. 4642 PUBLIC LAW 115–334—DEC. 20, 2018

(2) by redesignating subparagraphs (A) through (F) as clauses (i) through (vi), respectively, and indenting appro- priately;

(3) in the matter preceding clause (i), as so redesignated— (A) by striking ‘‘paragraphs (2) and (3)’’ and inserting

‘‘paragraph (2)’’; and (B) by striking ‘‘in the planning’’ and inserting the

following: ‘‘in the— ‘‘(A) planning’’,

(4) in clause (v), as so redesignated, of subparagraph (A), as so designated, by striking ‘‘implementation, including through pilot projects in limited areas for major systems changes as determined under rules promulgated by the Sec- retary, data from which’’ and inserting the following: ‘‘implementation, including a requirement that—

‘‘(I) such testing shall be accomplished through pilot projects in limited areas for major systems changes (as determined under rules promulgated by the Secretary);

‘‘(II) each pilot project described in subclause (I) that is carried out before the implementation of a system shall be conducted in a live-production environment; and

‘‘(III) the data resulting from each pilot project carried out under this clause’’;

(5) in clause (vi), as so redesignated, by striking the period at end and inserting ‘‘; and’’, and

(6) by adding at the end the following: ‘‘(B) operation of 1 or more automatic data processing

and information retrieval systems that the Secretary deter- mines may continue to be operated in accordance with clauses (i) through (vii) of subparagraph (A).’’.

SEC. 4013. QUALITY CONTROL IMPROVEMENTS.

(a) RECORDS.—Section 11(a)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(a)(3)(B)) is amended—

(1) by striking ‘‘Records described’’ and inserting ‘‘All records, and the entire information systems in which records are contained, that are covered’’, and

(2) by amending clause (i) to read as follows: ‘‘(i) be made available for inspection and audit

by the Secretary, subject to data and security protocols agreed to by the State agency and Secretary;’’.

(b) QUALITY CONTROL SYSTEM.—Section 16(c)(1)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(B)) is amended to read as follows:

‘‘(B) QUALITY CONTROL SYSTEM INTEGRITY.— ‘‘(i) IN GENERAL.—Not later than 180 days after

the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall issue interim final regulations that—

‘‘(I) ensure that the quality control system established under this subsection produces valid statistical results;

‘‘(II) provide for oversight of contracts entered into by a State agency for the purpose of improving payment accuracy;

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132 STAT. 4643PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(III) ensure the accuracy of data collected under the quality control system established under this subsection; and

‘‘(IV) for each fiscal year, to the maximum extent practicable, provide for the evaluation of the integrity of the quality control process of not fewer than 2 State agencies, selected in accordance with criteria determined by the Secretary. ‘‘(ii) DEBARMENT.—In accordance with the non-

procurement debarment procedures under part 417 of title 2, Code of Federal Regulations, or successor regu- lations, the Secretary shall debar any person that, in carrying out the quality control system established under this subsection, knowingly submits, or causes to be submitted, false information to the Secretary.’’.

(c) REPORTING REQUIREMENTS.—The 1st sentence of section 16(c)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(4)) is amended by inserting ‘‘, including providing access to applicable State records and the entire information systems in which the records are contained,’’ after ‘‘necessary’’.

(d) STATE PERFORMANCE INDICATORS.—Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(d)) is amended—

(1) by striking the heading and inserting ‘‘STATE PERFORM- ANCE INDICATORS’’,

(2) in paragraph (2)— (A) in the heading by striking ‘‘AND THEREAFTER’’ and

inserting ‘‘THROUGH 2017’’, (B) in subparagraph (A) by striking ‘‘and each fiscal

year thereafter’’ and inserting ‘‘through fiscal year 2017’’, and

(C) in subparagraph (B) by striking ‘‘and each fiscal year thereafter’’ and inserting ‘‘through fiscal year 2017’’, and (3) by adding at the end the following: ‘‘(6) FISCAL YEAR 2018 AND FISCAL YEARS THEREAFTER.—

‘‘(A) With respect to fiscal year 2018 and each fiscal year thereafter, the Secretary shall establish, by regulation, performance criteria relating to—

‘‘(i) actions taken to correct errors, reduce rates of error, and improve eligibility determinations; and

‘‘(ii) other indicators of effective administration determined by the Secretary. ‘‘(B) The Secretary shall not award performance bonus

payments to State agencies in fiscal year 2019 for fiscal year 2018 performance.’’.

(e) COST SHARING FOR COMPUTERIZATION.—Section 16(g)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(g)(1)(A)), as amended by section 4012, is amended—

(1) in clause (v)(III) by striking ‘‘and’’, and (2) by adding at the end the following:

‘‘(vii) would be accessible by the Secretary for inspection and audit under section 11(a)(3)(B); and’’.

SEC. 4014. EVALUATION OF CHILD SUPPORT ENFORCEMENT COOPERA- TION REQUIREMENTS.

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is amended by adding at the end the following:

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‘‘(m) EVALUATION OF CHILD SUPPORT ENFORCEMENT COOPERA- TION REQUIREMENTS.—

‘‘(1) IN GENERAL.—The Secretary, in consultation with the Secretary of Health and Human Services, shall conduct an independent evaluation of a representative sample of States—

‘‘(A) to assess the implementation and impact of the eligibility requirements described in subsections (l) through (n) of section 6 in States that have formerly implemented or continue to implement those requirements, and the feasi- bility of implementing those requirements in other States;

‘‘(B) to assess the factors that contributed to the deci- sion of States that formerly implemented the eligibility requirements described in each of subsections (l) through (n) of section 6 to cease such implementation;

‘‘(C) to review alternatives to the eligibility require- ments described in each of subsections (l) through (n) of section 6 that are used by other States to assist participants in the supplemental nutrition assistance program to make or receive child support payments and the effectiveness of those alternatives; and

‘‘(D) to evaluate the costs and benefits to households and to State agencies, of requiring State agencies to imple- ment each of the eligibility requirements described in sub- sections (l) through (n) of section 6. ‘‘(2) EVALUATION.—The evaluation under paragraph (1)

shall include, to the maximum extent practicable, an assess- ment of—

‘‘(A) the manner in which applicable State agencies implement and enforce the eligibility requirements described in subparagraph (A) of such paragraph, including—

‘‘(i) the procedures used by each State to determine cooperation, to sanction participants for failure to cooperate, and to determine good cause for noncoopera- tion under each of subsections (l) through (n) of section 6; and

‘‘(ii) the manner in which each State aligns the procedures for implementing those eligibility require- ments with procedures for implementing other Federal programs that require cooperation with child support enforcement, including the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Secu- rity Act (42 U.S.C. 601 et seq.), the Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.), and programs carried out under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.); ‘‘(B) the Federal, State, and local costs associated with

implementing those eligibility requirements, including costs incurred under this Act and by child support enforcement agencies for personnel, technology upgrades, and other costs;

‘‘(C) the effect of those eligibility requirements on the establishment of new child support orders, the establish- ment of paternity, changes in child support payments to

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132 STAT. 4645PUBLIC LAW 115–334—DEC. 20, 2018

custodial households, and changes in arrears owed on child support orders;

‘‘(D) with respect to the eligibility requirements under each of subsections (l) through (n) of section 6—

‘‘(i) the number of individuals subject to those requirements;

‘‘(ii) the number of individuals in each State who meet those requirements; and

‘‘(iii) the number of individuals in each State who fail to meet those requirements; ‘‘(E) the number of individuals in each State for whom

good cause for noncooperation has been found under section 6(l)(2);

‘‘(F) the impact of those eligibility requirements on the supplemental nutrition assistance program eligibility, benefit levels, food security, income, and economic stability of—

‘‘(i) individuals subject to those requirements; ‘‘(ii) the household members of those individuals,

including children; and ‘‘(iii) households with nontraditional family struc-

tures, including a household in which a grandparent is the primary caretaker of a grandchild of the grand- parent.

‘‘(3) STATE AGENCY COOPERATION.—Each State agency selected under paragraph (1) shall provide information to the Secretary necessary to conduct the evaluation under such para- graph.

‘‘(4) REPORT.—Not later than 3 years after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agri- culture, Nutrition, and Forestry of the Senate a report describing the findings from the evaluation conducted under paragraph (1).’’.

SEC. 4015. LONGITUDINAL DATA FOR RESEARCH.

(a) LONGITUDINAL DATA.—Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026), as amended by section 4014, is amended by adding at the end the following:

‘‘(n) LONGITUDINAL DATA FOR RESEARCH.— ‘‘(1) IN GENERAL.—Subject to paragraphs (3) through (5),

a State agency may, on approval by the Secretary, establish a longitudinal database that contains information about house- holds and members of households that receive benefits under the supplemental nutrition assistance program in the State.

‘‘(2) PURPOSE.—Each longitudinal database established under paragraph (1) shall be used solely to conduct research on participation in and the operation of the supplemental nutri- tion assistance program, including duration of participation in the program.

‘‘(3) REQUIREMENTS FOR DATABASES.—Prior to the approval of State agencies to establish longitudinal databases under paragraph (1), the Secretary shall—

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‘‘(A) identify features that shall be standard across States such as database format to facilitate use of longitu- dinal databases established under paragraph (1) for research purposes;

‘‘(B) identify features of longitudinal databases estab- lished under paragraph (1) that may vary across States;

‘‘(C) identify a procedure for States operating longitu- dinal databases under paragraph (1) to use a unique identi- fier to provide relevant information on household members who receive benefits under the supplemental nutrition assistance program for the purpose of comparing participa- tion data in multiple participating States over time while protecting participant privacy;

‘‘(D) establish the manner in which data security and privacy protections, as required by Federal law and con- sistent with other appropriate practices, shall be imple- mented and maintained;

‘‘(E) provide direction to State agencies on the respon- sibilities of and funding arrangements for State agencies and any State contractors (including entities providing technical assistance) relating to the establishment and operation of a longitudinal database;

‘‘(F) provide a description of the documentation that States shall submit to the Secretary prior to allowing researchers access to a longitudinal database;

‘‘(G) consult with other Federal research agencies, including the Bureau of the Census;

‘‘(H) consult with States that have already established databases used for purposes similar to the purposes out- lined in this subsection; and

‘‘(I) identify any other requirements determined appro- priate by the Secretary. ‘‘(4) INCLUDED DATA.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), each longitudinal database established under paragraph (1)—

‘‘(i) shall include monthly information about house- holds and members of households that receive benefits under the supplemental nutrition assistance program in the participating State taken from existing informa- tion collected by the State agency including, if avail- able,—

‘‘(I) demographic characteristics; ‘‘(II) income and financial resources (as

described in section 5(g)); ‘‘(III) employment status; ‘‘(IV) household circumstances, such as deduct-

ible expenses; and ‘‘(V) the amount of the monthly allotment

received under the supplemental nutrition assist- ance program; and ‘‘(ii) may include information from other State data

sources such as— ‘‘(I) earnings and employment data from the

State department of labor; ‘‘(II) health insurance program data; or ‘‘(III) data from participation in other pro-

grams administered by the State.

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‘‘(B) DATA PROTECTION.—Any State that establishes a longitudinal database under paragraph (1) shall, in accordance with all applicable Federal and State privacy standards and requirements—

‘‘(i) protect the privacy of information about each member of each household that receives benefits under the supplemental nutrition assistance program in such State by ensuring that no personally identifiable information (including social security number, home address, or contact information) is included in the longitudinal database; and

‘‘(ii) make the data under this paragraph available to researchers and the Secretary.

‘‘(5) APPROVAL.—The Secretary shall approve the establish- ment of longitudinal databases under paragraph (1) in States that—

‘‘(A) meet the requirements for databases under para- graph (3) and (4)(B);

‘‘(B) reflect a range of participant numbers, demo- graphics, operational structures, and geographic regions; and

‘‘(C) have the capacity to provide on a periodic and ongoing basis household and participant data derived from the eligibility system and other data sources of the State. ‘‘(6) GRANTS.—

‘‘(A) IN GENERAL.—In carrying out this subsection, the Secretary may provide grants to States that have been approved by the Secretary in accordance with paragraph (5) out of funds made available under paragraph (9).

‘‘(B) METHOD OF AWARDING GRANTS.—Grants awarded under this paragraph shall be made in such amounts and under such terms and conditions as the Secretary deter- mines necessary to carry out the purposes of this sub- section. ‘‘(7) REPORT.—

‘‘(A) IN GENERAL.—Not later than 4 years after the effective date of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Represent- atives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the feasibility of expanding implementation of longitudinal databases to every State.

‘‘(B) CONTENTS.—The report required under subpara- graph (A) shall describe—

‘‘(i) the cost of expanding implementation of longitudinal databases with consistent data to every State;

‘‘(ii) the challenges and benefits of using State longitudinal databases with consistent data; and

‘‘(iii) alternatives to expanding implementation of longitudinal databases with consistent data to every State that may achieve similar research outcomes and the advantages and disadvantages of those alter- natives.

‘‘(8) EFFECT.—Nothing in this subsection shall be construed to prevent or limit the ability of State agencies to establish

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or continue operating databases used for purposes similar to the purposes outlined in this subsection.

‘‘(9) FUNDING.—Of the funds made available under section 18, the Secretary shall use to carry out this subsection—

‘‘(A) $20,000,000 for fiscal year 2019 to remain avail- able through fiscal year 2021; and

‘‘(B) $5,000,000 for fiscal year 2022 and each fiscal year thereafter.’’.

(b) CONFORMING AMENDMENT.—The 1st sentence of section 16(a) of the Food and Nutrition Act of 2008 is amended—

(1) by striking ‘‘and (8)’’ and inserting ‘‘(8)’’; and (2) by inserting ‘‘, and (9) establishing and operating a

longitudinal database in accordance with section 17(n)’’ before ‘‘: Provided’’.

SEC. 4016. AUTHORIZATION OF APPROPRIATIONS.

The 1st sentence of section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 4017. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

Section 25(b)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2034(b)(2)) is amended—

(1) in subparagraph (B) by striking ‘‘and’’ at the end, (2) in subparagraph (C) by striking ‘‘fiscal year 2015 and

each fiscal year thereafter.’’ and inserting ‘‘each of fiscal years 2015 through 2018; and’’, and

(3) by adding at the end the following: ‘‘(D) $5,000,000 for fiscal year 2019 and each fiscal

year thereafter.’’. SEC. 4018. EMERGENCY FOOD ASSISTANCE PROGRAM.

(a) STATE PLAN.—Section 202A(b) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7503(b)) is amended—

(1) in paragraph (3), by striking ‘‘and’’ after the semicolon; (2) in paragraph (4), by striking the period at the end

and inserting a semicolon; and (3) by adding at the end the following: ‘‘(5) at the option of the State agency, describe a plan

of operation for 1 or more projects in partnership with 1 or more emergency feeding organizations located in the State to harvest, process, package, or transport donated commodities received under section 203D(d); and

‘‘(6) describe a plan, which may include the use of a State advisory board established under subsection (c), that provides emergency feeding organizations or eligible recipient agencies within the State an opportunity to provide input on the com- modity preferences and needs of the emergency feeding organization or eligible recipient agency.’’. (b) STATE AND LOCAL SUPPLEMENTATION OF COMMODITIES.—

Section 203D of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7507) is amended by adding at the end the following:

‘‘(d) PROJECTS TO HARVEST, PROCESS, PACKAGE, OR TRANSPORT DONATED COMMODITIES.—

‘‘(1) DEFINITION OF PROJECT.—In this subsection, the term ‘project’ means the harvesting, processing, packaging, or transportation of unharvested, unprocessed, or unpackaged commodities donated by agricultural producers, processors, or

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distributors for use by emergency feeding organizations under subsection (a).

‘‘(2) FEDERAL FUNDING FOR PROJECTS.— ‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and

(C) and paragraph (3), using funds made available under paragraph (5), the Secretary may provide funding to States to pay for the costs of carrying out a project.

‘‘(B) FEDERAL SHARE.—The Federal share of the cost of a project under subparagraph (A) shall not exceed 50 percent of the total cost of the project.

‘‘(C) ALLOCATION.— ‘‘(i) IN GENERAL.—Each fiscal year, the Secretary

shall allocate the funds made available under subpara- graph (A), based on a formula determined by the Sec- retary, to States that have submitted a State plan describing a plan of operation for a project under sec- tion 202A(b)(5).

‘‘(ii) REALLOCATION.—If the Secretary determines that a State will not expend all of the funds allocated to the State for a fiscal year under clause (i), the Secretary shall reallocate the unexpended funds to other States that have submitted under section 202A(b)(5) a State plan describing a plan of operation for a project during that fiscal year or the subsequent fiscal year, as the Secretary determines appropriate.

‘‘(iii) REPORTS.—Each State to which funds are allocated for a fiscal year under this subparagraph shall, on a regular basis, submit to the Secretary finan- cial reports describing the use of the funds.

‘‘(3) PROJECT PURPOSES.—A State may only use Federal funds received under paragraph (2) for a project the purposes of which are—

‘‘(A) to reduce food waste at the agricultural production, processing, or distribution level through the donation of food;

‘‘(B) to provide food to individuals in need; and ‘‘(C) to build relationships between agricultural pro-

ducers, processors, and distributors and emergency feeding organizations through the donation of food. ‘‘(4) COOPERATIVE AGREEMENTS.—The Secretary may

encourage a State agency that carries out a project using Fed- eral funds received under paragraph (2) to enter into coopera- tive agreements with State agencies of other States under section 203B(d) to maximize the use of commodities donated under the project.

‘‘(5) FUNDING.—Out of funds not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this subsection $4,000,000 for each of fiscal years 2019 through 2023, to remain available until the end of the subsequent fiscal year.’’. (c) FOOD WASTE.—Section 203D of the Emergency Food Assist-

ance Act of 1983 (7 U.S.C. 7507), as amended by subsection (b), is amended by adding at the end the following:

‘‘(e) FOOD WASTE.—The Secretary shall issue guidance outlining best practices to minimize the food waste of the commodities donated under subsection (a).’’.

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132 STAT. 4650 PUBLIC LAW 115–334—DEC. 20, 2018

(d) EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.— Section 209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

(e) AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM.—Section 27(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended—

(1) in paragraph (1), by striking ‘‘2018’’ and inserting ‘‘2023’’; and

(2) in paragraph (2)— (A) in subparagraph (C), by striking ‘‘2018’’ and

inserting ‘‘2023’’; (B) in subparagraph (D)—

(i) in the matter preceding clause (i), by striking ‘‘2018’’ and inserting ‘‘2023’’;

(ii) in clause (iii), by striking ‘‘and’’ after the semi- colon;

(iii) in clause (iv), by striking ‘‘and’’ after the semi- colon;

(iv) by adding at the end the following: ‘‘(v) for fiscal year 2019, $23,000,000; ‘‘(vi) for fiscal year 2020, $35,000,000; ‘‘(vii) for fiscal year 2021, $35,000,000; ‘‘(viii) for fiscal year 2022, $35,000,000; and ‘‘(ix) for fiscal year 2023, $35,000,000; and’’; and

(C) in subparagraph (E)— (i) by striking ‘‘2019’’ and inserting ‘‘2024’’; (ii) by striking ‘‘(D)(iv)’’ and inserting ‘‘(D)(ix)’’; and (iii) by striking ‘‘June 30, 2017’’ and inserting

‘‘June 30, 2023’’.

SEC. 4019. NUTRITION EDUCATION.

Section 28(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(c)) is amended—

(1) in paragraph (2)— (A) in subparagraph (B)—

(i) in the matter preceding clause (i), by striking ‘‘Except as provided in subparagraph (C), a’’ and inserting ‘‘A’’,

(ii) in clause (ii) by striking ‘‘and’’ after the semi- colon,

(iii) by redesignating clause (iii) as clause (iv), and

(iv) by inserting after clause (ii) the following: ‘‘(iii) describe how the State agency shall use an

electronic reporting system to— ‘‘(I) measure and evaluate the projects; and ‘‘(II) account for the allowable State agency

administrative costs including for— ‘‘(aa) salaries and benefits of State agency

personnel; ‘‘(bb) office supplies and equipment; ‘‘(cc) travel costs; ‘‘(dd) development and production of nutri-

tion education materials; ‘‘(ee) memberships, subscriptions, and

professional activities;

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132 STAT. 4651PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ff) lease or rental costs; ‘‘(gg) maintenance and repair expenses; ‘‘(hh) indirect costs; and ‘‘(ii) cost of using publicly-owned building

space; and’’, and (B) by striking subparagraph (C),

(2) in paragraph (3)(B) in the matter preceding clause (i), by inserting ‘‘, the Director of the National Institute of Food and Agriculture,’’ before ‘‘and outside stakeholders’’,

(3) in paragraph (5) by inserting ‘‘the expanded food and nutrition education program or’’ before ‘‘other health pro- motion’’, and

(4) by adding at the end the following: ‘‘(6) INFORMATION CLEARINGHOUSE.—The Secretary shall

establish an online clearinghouse that makes available to State agencies, local agencies, institutions of higher education, and community organizations best practices for planning, imple- menting, and evaluating nutrition education and obesity prevention services to ensure that projects carried out with funds received under this section are appropriate for the target population.

‘‘(7) TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance to a State agency in developing and imple- menting a nutrition education State plan, including—

‘‘(A) by identifying common challenges faced by entities described in paragraph (6) that participate in projects car- ried out with funds received under this section;

‘‘(B) by coordinating efforts to address those common challenges;

‘‘(C) by collecting and disseminating information on evidence-based practices relating to nutrition education and obesity prevention;

‘‘(D) by facilitating communication between and among grantees and subgrantees of funds received under this sec- tion;

‘‘(E) by assisting State agencies in creating or maintaining systems to compile program data; and

‘‘(F) by performing or assisting with other activities, as determined by the Secretary. ‘‘(8) ANNUAL STATE REPORT.—Each State agency that

delivers nutrition education and obesity prevention services under this subsection shall submit to the Secretary an annual report, which shall be made publicly available by the Secretary, that includes—

‘‘(A) the use of funds on the State agency’s program, including for each category of allowable State agency administrative costs identified in paragraph (2)(B)(iii)(II);

‘‘(B) a description of each project carried out by that agency under this subsection, including, with respect to the project, the target population, interventions, edu- cational materials used, key performance indicators used, and evaluations made;

‘‘(C) a comprehensive analysis of the impacts and out- comes—

‘‘(i) of the project, including with respect to the elements described in subparagraph (A); and

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132 STAT. 4652 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) to the extent practicable, of completed multiyear projects; and ‘‘(D) the status of any ongoing multiyear project.

‘‘(9) ANNUAL FEDERAL REPORT.—The Administrator of the Food and Nutrition Service, in consultation with the Director of the National Institute of Food and Agriculture, shall annually submit to the Committee on Agriculture of the House of Rep- resentatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that—

‘‘(A) evaluates the level of coordination between— ‘‘(i) the nutrition education and obesity prevention

grant program under this section; ‘‘(ii) the expanded food and nutrition education

program under section 1425 of the National Agricul- tural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175); and

‘‘(iii) any other nutrition education program administered by the Department of Agriculture; and ‘‘(B) includes the use of funds on such programs

including State agency administrative costs reported by States under paragraph (8)(A).’’.

SEC. 4020. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

Section 29(c)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036b(c)(1)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 4021. PUBLIC-PRIVATE PARTNERSHIPS.

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

‘‘SEC. 30. PILOT PROJECTS TO ENCOURAGE THE USE OF PUBLIC-PRI- VATE PARTNERSHIPS COMMITTED TO ADDRESSING FOOD INSECURITY.

‘‘(a) IN GENERAL.—The Secretary may, on application of eligible entities, approve not more than 10 pilot projects to support public- private partnerships that address food insecurity and poverty.

‘‘(b) DEFINITIONS.—For purposes of this section— ‘‘(1) the term ‘eligible entity’ means—

‘‘(A) a nonprofit organization; ‘‘(B) a community-based organization; ‘‘(C) an institution of higher education; or ‘‘(D) a private entity, as determined by the Secretary;

and ‘‘(2) the term ‘public agency’ means a department, agency,

other unit, or instrumentality of Federal, State, or local govern- ment. ‘‘(c) PROJECT REQUIREMENTS.—Projects approved under this sec-

tion shall— ‘‘(1) be limited to 2 years in length; and ‘‘(2) include a collaboration between one or more public

agencies and one or more eligible entities that— ‘‘(A) improves the effectiveness and impact of the

supplemental nutrition assistance program; ‘‘(B) develops food security solutions that are specific

to the needs of a community or region; and ‘‘(C) strengthens the capacity of communities to address

food insecurity and poverty.

7 USC 2036d.

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132 STAT. 4653PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(d) EVALUATION.—The Secretary shall provide for an inde- pendent evaluation of pilot projects approved under this section that includes—

‘‘(1) a summary of the activities conducted under the pilot projects;

‘‘(2) an assessment of the effectiveness of the pilot projects; and

‘‘(3) best practices regarding the use of public-private part- nerships to improve the effectiveness of public benefit programs to address food insecurity and poverty. ‘‘(e) FUNDING.—

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is author- ized to be appropriated to carry out this section $5,000,000 to remain available until expended.

‘‘(2) APPROPRIATION IN ADVANCE.—Only funds appropriated under paragraph (1) in advance specifically to carry out this section shall be available to carry out this section.’’.

SEC. 4022. TECHNICAL CORRECTIONS.

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended—

(1) in section 3— (A) in subsections (d) and (i) by striking ‘‘7(i)’’ and

inserting ‘‘7(h)’’, and (B) in subsection (o)(1)(A) by striking ‘‘(r)(1)’’ and

inserting ‘‘(q)(1)’’, (2) in section 5(a) by striking ‘‘and section’’ each place

it appears and all that follows through ‘‘households’’ the respec- tive next place it appears, and inserting ‘‘and section 3(m)(4), households’’,

(3) in subsections (e)(1) and (f)(1)(A)(i) of section 8 by striking ‘‘3(n)(5)’’ and inserting ‘‘3(m)(5)’’,

(4) in the 1st sentence of section 10— (A) by striking ‘‘or the Federal Savings and Loan Insur-

ance Corporation’’ each place it appears, and (B) by striking ‘‘3(p)(4)’’ and inserting ‘‘3(o)(4)’’,

(5) in section 11— (A) in subsection (a)(2) by striking ‘‘3(t)(1)’’ and

inserting ‘‘3(s)(1)’’, and (B) in subsection (d)—

(i) by striking ‘‘3(t)(1)’’ each place it appears and inserting ‘‘3(s)(1)’’, and

(ii) by striking ‘‘3(t)(2)’’ each place it appears and inserting ‘‘3(s)(2)’’, and (C) in subsection (e)—

(i) in paragraph (17) by striking ‘‘3(t)(1)’’ inserting ‘‘3(s)(1)’’, and

(ii) in paragraph (23) by striking ‘‘Simplified Supplemental Nutrition Assistance Program’’ and inserting ‘‘simplified supplemental nutrition assistance program’’,

(6) in section 15(e) by striking ‘‘exchange’’ and all that follows through ‘‘anything’’, and inserting ‘‘exchange for bene- fits, or anything’’,

(7) in section 17(b)(1)(B)(iv)(III)(aa) by striking ‘‘3(n)’’ and inserting ‘‘3(m)’’,

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132 STAT. 4654 PUBLIC LAW 115–334—DEC. 20, 2018

(8) in section 25(a)(1)(B)(i)(I) by striking the 2d semicolon at the end, and

(9) in section 26(b) by striking ‘‘out’’ and all that follows through ‘‘(referred’’, and inserting ‘‘out a simplified supple- mental nutrition assistance program (referred’’.

Subtitle B—Commodity Distribution Programs

SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.

The 1st sentence of section 4(a) of the Agriculture and Con- sumer Protection Act of 1973 (7 U.S.C. 612c note) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended—

(1) in subsection (a)— (A) in paragraph (1) by striking ‘‘2018’’ and inserting

‘‘2023’’, and (B) in paragraph (2)(B), in the matter preceding clause

(i), by striking ‘‘2018’’ and inserting ‘‘2023’’, (2) in subsection (d)(2), in the 1st sentence, by striking

‘‘2018’’ and inserting ‘‘2023’’, and (3) in subsection (g)—

(A) by striking ‘‘Except’’ and inserting the following: ‘‘(1) IN GENERAL.—Except’’, and

(B) by adding at the end the following: ‘‘(2) CERTIFICATION.—

‘‘(A) DEFINITION OF CERTIFICATION PERIOD.—In this paragraph, the term ‘certification period’ means the period during which a participant in the commodity supplemental food program in a State may continue to receive benefits under the commodity supplemental food program without a formal review of the eligibility of the participant.

‘‘(B) MINIMUM CERTIFICATION PERIOD.—Subject to sub- paragraphs (C) and (D), a State shall establish for the commodity supplemental food program of the State a certifi- cation period of—

‘‘(i) not less than 1 year; but ‘‘(ii) not more than 3 years.

‘‘(C) TEMPORARY CERTIFICATION.—An eligible applicant for the commodity supplemental food program in a State may be provided with a temporary monthly certification to fill any caseload slot resulting from nonparticipation by certified participants.

‘‘(D) APPROVALS.—A certification period of more than 1 year established by a State under subparagraph (B) shall be subject to the approval of the Secretary, who shall approve such a certification period on the condition that, with respect to each participant receiving benefits under the commodity supplemental food program of the State, the local agency in the State administering the com- modity supplemental food program, on an annual basis during the certification period applicable to the partici- pant—

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132 STAT. 4655PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(i) verifies the address and continued interest of the participant; and

‘‘(ii) has sufficient reason to determine that the participant still meets the income eligibility standards under paragraph (1), which may include a determina- tion that the participant has a fixed income.’’.

SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION PROJECTS.

Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C. 1431e(a)(2)(A)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 4104. FOOD DONATION STANDARDS.

Section 203D of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7507), as amended by section 4018(c), is amended by adding at the end the following:

‘‘(f) FOOD DONATION STANDARDS.— ‘‘(1) DEFINITIONS.—In this subsection:

‘‘(A) APPARENTLY WHOLESOME FOOD.—The term ‘appar- ently wholesome food’ has the meaning given the term in section 22(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1791(b)).

‘‘(B) INSTITUTION OF HIGHER EDUCATION.—The term ‘institution of higher education’ has the meaning given the term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).

‘‘(C) QUALIFIED DIRECT DONOR.—The term ‘qualified direct donor’ means a retail food store, wholesaler, agricul- tural producer, restaurant, caterer, school food authority, or institution of higher education. ‘‘(2) GUIDANCE.—

‘‘(A) IN GENERAL.—Not later than 180 days after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall issue guidance to promote awareness of donations of apparently wholesome food pro- tected under section 22(c) of the Child Nutrition Act of 1966 (42 U.S.C. 1791(c)) by qualified direct donors in compliance with applicable State and local health, food safety, and food handling laws (including regulations).

‘‘(B) ISSUANCE.—The Secretary shall encourage State agencies and emergency feeding organizations to share the guidance issued under subparagraph (A) with qualified direct donors.’’.

Subtitle C—Miscellaneous SEC. 4201. SENIORS FARMERS’ MARKET NUTRITION PROGRAM.

Section 4402(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007(a)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 4202. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DIS-

TRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.

Section 10603(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c-4(b)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

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132 STAT. 4656 PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 4203. SERVICE OF TRADITIONAL FOODS IN PUBLIC FACILITIES.

Section 4033(d)(1) of the Agricultural Act of 2014 (128 Stat. 818) is amended—

(1) by striking ‘‘and’’ the 1st place it appears, (2) by inserting ‘‘, a State, a county or county equivalent,

a local educational agency, and an entity or person authorized to facilitate the donation, storage, preparation, or serving of traditional food by the operator of a food service program’’ after ‘‘organization’’, and

(3) by inserting ‘‘storage, preparation, or’’ after ‘‘donation to or’’.

SEC. 4204. HEALTHY FOOD FINANCING INITIATIVE.

Section 243 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6953) is amended—

(1) in subsection (a), by inserting ‘‘and enterprises’’ after ‘‘retailers’’;

(2) in subsection (b)(3)(B)(iii), by inserting ‘‘and enterprises’’ after ‘‘retailers’’; and

(3) in subsection (c)(2)(B)(ii), by inserting ‘‘as applicable,’’ before ‘‘to accept’’.

SEC. 4205. THE GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM.

(a) AMENDMENT TO PROGRAM.—Section 4405 of the Food, Con- servation, and Energy Act of 2008 (7 U.S.C. 7517) is amended—

(1) by striking the heading and inserting ‘‘THE GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM’’,

(2) in subsection (a)— (A) by amending paragraph (1) to read as follows:

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a governmental agency or nonprofit organization.’’,

(B) in paragraph (3) by striking ‘‘means the’’ and all that follows through the period at the end, and inserting the following:

‘‘means— ‘‘(A) the supplemental nutrition assistance program

established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); and

‘‘(B) the programs for nutrition assistance under sec- tion 19 of such Act (7 U.S.C. 2028).’’, and

(C) by adding at the end the following: ‘‘(4) HEALTHCARE PARTNER.—The term ‘healthcare partner’

means a healthcare provider, including— ‘‘(A) a hospital; ‘‘(B) a Federally-qualified health center (as defined in

section 1905(l) of the Social Security Act (42 U.S.C. 1396d(l)));

‘‘(C) a hospital or clinic operated by the Secretary of Veterans Affairs; or

‘‘(D) a healthcare provider group. ‘‘(5) MEMBER.—The term ‘member’ means, as determined

by the applicable eligible entity or healthcare partner carrying out a project under subsection (c) in accordance with procedures established by the Secretary—

‘‘(A) an individual eligible for— ‘‘(i) benefits under the Food and Nutrition Act

of 2008 (7 U.S.C. 2011 et seq.); or

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132 STAT. 4657PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) medical assistance under a State plan or a waiver of such a plan under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) and enrolled under such plan or waiver; and ‘‘(B) a member of a low-income household that suffers

from, or is at risk of developing, a diet-related health condition.’’, (3) in subsection (b)—

(A) in paragraph (1)— (i) in subparagraph (B) by striking ‘‘The’’ and

inserting ‘‘Except as provided in subparagraph (D)(iii), the’’,

(ii) in subparagraph (C) by adding at the end the following:

‘‘(iii) TRIBAL AGENCIES.—The Secretary may allow a Tribal agency to use funds provided to the Indian Tribe of the Tribal agency through a Federal agency (including the Indian Health Service) or other Federal benefit to satisfy all or part of the non-Federal share described in clause (i) if such use is otherwise con- sistent with the purpose of such funds.’’,

(iii) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), and

(iv) by inserting after subparagraph (A) the fol- lowing: ‘‘(B) PARTNERS AND COLLABORATORS.—An eligible

entity that receives a grant under this subsection may partner with, or make subgrants to, public, private, non- profit, or for-profit entities, including—

‘‘(i) an emergency feeding organization; ‘‘(ii) an agricultural cooperative; ‘‘(iii) a producer network or association; ‘‘(iv) a community health organization; ‘‘(v) a public benefit corporation; ‘‘(vi) an economic development corporation; ‘‘(vii) a farmers’ market; ‘‘(viii) a community-supported agriculture program; ‘‘(ix) a buying club; ‘‘(x) a retail food store participating in the supple-

mental nutrition assistance program; ‘‘(xi) a State, local, or tribal agency; ‘‘(xii) another eligible entity that receives a grant

under this subsection; and ‘‘(xiii) any other entity the Secretary designates.’’,

(B) in paragraph (2)— (i) by amending subparagraph (A) to read as fol-

lows: ‘‘(A) IN GENERAL.—To receive a grant under this sub-

section, an eligible entity shall— ‘‘(i) meet the application criteria set forth by the

Secretary; and ‘‘(ii) propose a project that, at a minimum—

‘‘(I) has the support of the State agency admin- istering the supplemental nutrition assistance pro- gram;

‘‘(II) would increase the purchase of fruits and vegetables by low-income households participating

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132 STAT. 4658 PUBLIC LAW 115–334—DEC. 20, 2018

in the supplemental nutrition assistance program by providing an incentive for the purchase of fruits and vegetables at the point of purchase to a house- hold purchasing food with supplemental nutrition assistance program benefits;

‘‘(III) except in the case of projects receiving $100,000 or less over 1 year, would measure the purchase of fruits and vegetables by low-income households participating in the supplemental nutrition assistance program;

‘‘(IV) ensures that the same terms and condi- tions apply to purchases made by individuals with benefits issued under the Food and Nutrition Act of 2008 and incentives provided for in this sub- section as apply to purchases made by individuals who are not members of households receiving bene- fits, such as provided for in section 278.2(b) of title 7, Code of Federal Regulations (or a successor regulation);

‘‘(V) has adequate plans to collect data for reporting and agrees to provide that information for the report described in subsection (e)(2)(B)(iii); and

‘‘(VI) would share information with the Nutri- tion Incentive Program Training, Technical Assist- ance, Evaluation, and Information Centers estab- lished under subsection (e).’’, (ii) in subparagraph (B)—

(I) by striking clause (v), (II) by redesignating clause (vi) as clause (x),

and (III) by inserting after clause (iv) the following:

‘‘(v) include a project design— ‘‘(I) that provides incentives when fruits or

vegetables are purchased using supplemental nutrition assistance program benefits; and

‘‘(II) in which the incentives earned may be used only to purchase fruits or vegetables; ‘‘(vi) have demonstrated the ability to provide serv-

ices to underserved communities; ‘‘(vii) include coordination with multiple stake-

holders, such as farm organizations, nutrition edu- cation programs, cooperative extension services, public health departments, health providers, private and public health insurance agencies, cooperative grocers, grocery associations, and community-based and non- governmental organizations;

‘‘(viii) offer supplemental services in high-need communities, including online ordering, transportation between home and store, and delivery services;

‘‘(ix) include food retailers that are open— ‘‘(I) for extended hours; and ‘‘(II) most or all days of the year; or’’, and

(C) by striking paragraphs (3) and (4), (4) in subsection (c)—

(A) in paragraph (1) by striking ‘‘subsection (b) $5,000,000 for each of fiscal years 2014 through 2018’’

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132 STAT. 4659PUBLIC LAW 115–334—DEC. 20, 2018

and inserting ‘‘this section $5,000,000 for each of fiscal years 2014 through 2023’’, and

(B) in paragraph (2)— (i) in the matter preceding subparagraph (A), by

striking ‘‘subsection (b)’’ and inserting ‘‘this section’’, (ii) in subparagraph (B) by striking ‘‘and’’ at the

end, (iii) in subparagraph (C) by striking the period

at the end and inserting a semicolon, and (iv) by adding at the end the following:

‘‘(C) $45,000,000 for fiscal year 2019; ‘‘(D) $48,000,000 for fiscal year 2020; ‘‘(E) $48,000,000 for fiscal year 2021; ‘‘(F) $53,000,000 for fiscal year 2022; and ‘‘(G) $56,000,000 for fiscal year 2023 and each fiscal

year thereafter. ‘‘(3) USE OF FUNDS.—With respect to funds made available

under this section for fiscal years 2019 through 2023— ‘‘(A) for each fiscal year the Secretary shall use not

more than 10 percent of such funds available for such fiscal year for the produce prescription program described in subsection (c);

‘‘(B) for each fiscal year not more than 8 percent of such funds available for such fiscal year shall be used by the National Institute of Food and Agriculture and the Food and Nutrition Service for administration; and

‘‘(C) the Secretary shall use for the Nutrition Incentive Program Training, Technical Assistance, Evaluation, and Information Centers established under subsection (e) not more than—

‘‘(i) $17,000,000 in the aggregate for fiscal years 2019 and 2020; and

‘‘(ii) $7,000,000 for each of the fiscal years 2021 through 2023.’’,

(5) by redesignating subsection (c) as subsection (f), and (6) by inserting after subsection (b) the following:

‘‘(c) PRODUCE PRESCRIPTION PROGRAM.— ‘‘(1) IN GENERAL.—The Secretary shall establish a grant

program under which the Secretary shall award grants to eligible entities to conduct projects that demonstrate and evaluate the impact of the projects on—

‘‘(A) the improvement of dietary health through increased consumption of fruits and vegetables;

‘‘(B) the reduction of individual and household food insecurity; and

‘‘(C) the reduction in healthcare use and associated costs. ‘‘(2) HEALTHCARE PARTNERS.—In carrying out a project

using a grant received under paragraph (1), an eligible entity shall partner with 1 or more healthcare partners.

‘‘(3) GRANT APPLICATIONS.— ‘‘(A) IN GENERAL.—To be eligible to receive a grant

under paragraph (1), an eligible entity— ‘‘(i) shall—

‘‘(I) prescribe fresh fruits and vegetables to members;

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132 STAT. 4660 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(II) submit to the Secretary an application containing such information as the Secretary may require, including the information described in subparagraph (B); and ‘‘(ii) may—

‘‘(I) provide financial or non-financial incen- tives for members to purchase or procure fresh fruits and vegetables;

‘‘(II) provide educational resources on nutrition to members; and

‘‘(III) establish additional accessible locations for members to procure fresh fruits and vegetables.

‘‘(B) APPLICATION.—An application shall— ‘‘(i) identify the 1 or more healthcare partners

with which the eligible entity is partnering under para- graph (2); and

‘‘(ii) include— ‘‘(I) a description of the methods by which

an eligible entity shall— ‘‘(aa) screen and verify eligibility for mem-

bers for participation in a produce prescription project, in accordance with procedures estab- lished under subsection (a)(5);

‘‘(bb) implement an effective produce prescription project, including the role of each healthcare partner in implementing the produce prescription project;

‘‘(cc) evaluate members participating in a produce prescription project with respect to the matters described in subparagraphs (A) through (C) of paragraph (1);

‘‘(dd) provide educational opportunities relating to nutrition to members participating in a produce prescription project; and

‘‘(ee) inform members of the availability of the produce prescription project, including locations at which produce prescriptions may be redeemed; ‘‘(II) a description of any additional nonprofit

or emergency feeding organizations that shall be involved in the project and the role of each addi- tional nonprofit or emergency feeding organization in implementing and evaluating an effective produce prescription project;

‘‘(III) documentation of a partnership agree- ment with a relevant State Medicaid agency or other appropriate entity, as determined by the Sec- retary, to evaluate the effectiveness of the produce prescription project in reducing healthcare use and associated costs;

‘‘(IV) adequate plans to collect data for reporting and agreement to provide that informa- tion for the report described in subsection (e)(2)(B)(iii); and

‘‘(V) agreement to share information with the Nutrition Incentive Program Training, Technical

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132 STAT. 4661PUBLIC LAW 115–334—DEC. 20, 2018

Assistance, Evaluation, and Information Centers established under subsection (e).

‘‘(4) COORDINATION.—In carrying out the grant program established under paragraph (1), the Secretary shall coordinate with the Secretary of Health and Human Services and the heads of other appropriate Federal agencies that carry out activities relating to healthcare partners.

‘‘(5) PARTNERSHIPS.— ‘‘(A) IN GENERAL.—In carrying out the grant program

under paragraph (1), the Secretary may enter into 1 or more memoranda of understanding with a Federal agency, a State, or a private entity to ensure the effective implementation and evaluation of each project.

‘‘(B) MEMORANDUM OF UNDERSTANDING.—A memo- randum of understanding entered into under subparagraph (A) shall include—

‘‘(i) a description of a plan to provide educational opportunities relating to nutrition to members partici- pating in produce prescription projects;

‘‘(ii) a description of the role of the Federal agency, State, or private entity, as applicable, in implementing and evaluating an effective produce prescription project; and

‘‘(iii) documentation of a partnership agreement with a relevant State Medicaid agency or other appro- priate entity, as determined by the Secretary.

‘‘(d) APPLICABILITY.— ‘‘(1) IN GENERAL.—The value of any benefit provided to

a participant in any activity funded under subsections (b) or (c) shall be treated as supplemental nutrition benefits under section 8(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(b)).

‘‘(2) PROHIBITION ON COLLECTION OF SALES TAXES.—Each State shall ensure that no State or local tax is collected on a purchase of food with assistance provided under subsections (b) and (c).

‘‘(3) NO LIMITATION ON BENEFITS.—Grants made available under subsections (b) and (c) shall not be used to carry out any project that limits the use of benefits under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other Federal nutrition law.

‘‘(4) HOUSEHOLD ALLOTMENT.—Assistance provided under subsections (b) and (c) to households receiving benefits under the supplemental nutrition assistance program shall not—

‘‘(A) be considered part of the supplemental nutrition assistance program benefits of the household; or

‘‘(B) be used in the collection or disposition of claims under section 13 of the Food and Nutrition Act of 2008 (7 U.S.C. 2022).

‘‘(e) NUTRITION INCENTIVE PROGRAM TRAINING, TECHNICAL ASSISTANCE, EVALUATION, AND INFORMATION CENTERS.—

‘‘(1) IN GENERAL.—The Secretary shall— ‘‘(A) establish 1 or more Nutrition Incentive Program

Training, Technical Assistance, Evaluation, and Informa- tion Centers, in consultation with the Director of the National Institute of Food and Agriculture; and

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132 STAT. 4662 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(B) to the extent practicable, consult on the design and scope of such Centers with grocers, farmers, health professionals, researchers, incentive program managers, and employees of the Department of Agriculture with direct experience with implementation of existing incentive pro- grams or projects. ‘‘(2) ESTABLISHMENT.—The Centers shall be capable of pro-

viding services related to grants under subsections (b) and (c), including—

‘‘(A) offering incentive program training and technical assistance to applicants and grantees to the extent prac- ticable, including—

‘‘(i) collecting and providing information on best practices that may include communications, signage, record-keeping, incentive instruments, development and integration of point of sale systems, and reporting;

‘‘(ii) disseminating information and assisting with collaboration among grantee projects, applicable State agencies, and nutrition education programs;

‘‘(iii) facilitating communication between grantees and the Department of Agriculture and applicable State agencies; and

‘‘(iv) providing support for the development of best practices for produce prescription projects and the sharing of information among eligible entities and healthcare providers that participate in a produce prescription project under subsection (c); and

‘‘(v) other services identified by the Secretary; and ‘‘(B) creating a system to collect and compile core data

sets from eligible entities that— ‘‘(i) uses standard metrics with consideration of

outcome measures for existing projects; ‘‘(ii) includes to the extent practicable grocers,

farmers, health professionals, researchers, incentive program managers, and employees of the Department of Agriculture with direct experience with implementa- tion of existing incentive programs in the design of the instrument through which data will be collected and the mechanism for reporting;

‘‘(iii) compiles project data from grantees, and beginning in fiscal year 2020 generates an annual report to Congress on grant outcomes, including—

‘‘(I) the results of the project; and ‘‘(II) the amount of grant funds used for the

project; and ‘‘(iv) creates and maintains a publicly accessible

online site that makes annual reports and incentive program information available in an anonymized for- mat that protects confidential, personal, or other sen- sitive data.

‘‘(3) COOPERATIVE AGREEMENT.— ‘‘(A) IN GENERAL.—To carry out paragraph (1), the

Secretary may, on a competitive basis, enter into 1 or more cooperative agreements with 1 or more organizations with expertise in developing outcome-based reporting, at

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132 STAT. 4663PUBLIC LAW 115–334—DEC. 20, 2018

least 1 of which has expertise in the food insecurity nutri- tion incentive program and at least 1 of which has expertise in produce prescription projects.

‘‘(B) INCLUSION.—The organizations referred to in subparagraph (A) may include—

‘‘(i) nongovernmental organizations; ‘‘(ii) State cooperative extension services; ‘‘(iii) regional food system centers; ‘‘(iv) Federal, State, or Tribal agencies; ‘‘(v) institutions of higher education (as defined

in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))); or

‘‘(vi) other appropriate entities as determined by the Secretary.’’.

(b) CONFORMING AMENDMENT.—The table of contents of the Food, Conservation, and Energy Act of 2008 (Public Law 113– 188) is amended by striking the item relating to section 4405 and inserting the following:

‘‘Sec. 4405. The Gus Schumacher nutrition incentive program.’’.

SEC. 4206. MICRO-GRANTS FOR FOOD SECURITY.

(a) PURPOSE.—The purpose of this section is to increase the quantity and quality of locally grown food through small-scale gar- dening, herding, and livestock operations in food insecure commu- nities in areas of the United States that have significant levels of food insecurity and import a significant quantity of food.

(b) DEFINITIONS.—In this section: (1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means an

entity that— (A) is—

(i) an individual; (ii) an Indian tribe or tribal organization, as

defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304);

(iii) a nonprofit organization engaged in increasing food security, as determined by the Secretary, including—

(I) a religious organization; (II) a food bank; or (III) a food pantry;

(iv) a federally funded educational facility, including—

(I) a Head Start program or an Early Head Start program carried out under the Head Start Act (42 U.S.C. 9831 et seq.);

(II) a public elementary school or public sec- ondary school;

(III) a public institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001));

(IV) a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b))); or

(V) a job training program; or (v) a local or Tribal government that may not

levy local taxes under State or Federal law; and (B) is located in an eligible State.

7 USC 7518.

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132 STAT. 4664 PUBLIC LAW 115–334—DEC. 20, 2018

(2) ELIGIBLE STATE.—The term ‘‘eligible State’’ means— (A) the State of Alaska; (B) the State of Hawaii; (C) American Samoa; (D) the Commonwealth of the Northern Mariana

Islands; (E) the Commonwealth of Puerto Rico; (F) the Federated States of Micronesia; (G) Guam; (H) the Republic of the Marshall Islands; (I) the Republic of Palau; and (J) the United States Virgin Islands.

(c) ESTABLISHMENT.—The Secretary shall distribute funds to the agricultural department or agency of each eligible State for the competitive distribution of subgrants to eligible entities to increase the quantity and quality of locally grown food in food insecure communities, including through small-scale gardening, herding, and livestock operations.

(d) DISTRIBUTION OF FUNDS.— (1) IN GENERAL.—Of the amount made available under

subsection (g), the Secretary shall distribute— (A) 40 percent to the State of Alaska; (B) 40 percent to the State of Hawaii; and (C) 2.5 percent to each eligible State described in any

of subparagraphs (C) through (J) of subsection (b)(2). (2) CARRYOVER OF FUNDS.—Funds distributed under para-

graph (1) shall remain available until expended. (3) ADMINISTRATIVE FUNDS.—An eligible State that receives

funds under paragraph (1) may use not more than 3 percent of those funds—

(A) to administer the competition for providing sub- grants to eligible entities in that eligible State;

(B) to provide oversight of the subgrant recipients in that eligible State; and

(C) to collect data and submit a report to the Secretary under subsection (f)(2).

(e) SUBGRANTS TO ELIGIBLE ENTITIES.— (1) AMOUNT OF SUBGRANTS.—

(A) IN GENERAL.—The amount of a subgrant to an eligible entity under this section shall be—

(i) in the case of an eligible entity that is an individual, not greater than $5,000 per year; and

(ii) in the case of an eligible entity described in any of clauses (ii) through (v) of subsection (b)(1)(A), not greater than $10,000 per year. (B) MATCHING REQUIREMENT.—As a condition of

receiving a subgrant under this section, an eligible entity shall provide funds equal to 10 percent of the amount received by the eligible entity under the subgrant, to be derived from non-Federal sources. A State may waive the matching requirement for an individual who otherwise meets the requirements to receive a subgrant by the eligible State.

(C) PROJECT PERIOD.—Funds received by an eligible entity that is awarded a subgrant under this section shall remain available for expenditure not later than 3 years after the date the funds are received.

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132 STAT. 4665PUBLIC LAW 115–334—DEC. 20, 2018

(2) PRIORITY.—In carrying out the competitive distribution of subgrants under subsection (c), an eligible State may give priority to an eligible entity that—

(A) has not previously received a subgrant under this section; or

(B) is located in a community or region in that eligible State with the highest degree of food insecurity, as deter- mined by the agricultural department or agency of the eligible State. (3) PROJECTS.—An eligible State may provide subgrants

to 2 or more eligible entities to carry out the same project. (4) USE OF SUBGRANT FUNDS BY ELIGIBLE ENTITIES.—An

eligible entity that receives a subgrant under this section shall use the funds to engage in activities that will increase the quantity and quality of locally grown food for food insecure individuals, families, neighborhoods, and communities, including by—

(A) purchasing gardening tools or equipment, soil, soil amendments, seeds, plants, animals, canning equipment, refrigeration, or other items necessary to grow and store food;

(B) purchasing or building composting units; (C) purchasing or building towers designed to grow

leafy green vegetables; (D) expanding an area under cultivation or engaging

in other activities necessary to be eligible to receive funding under the environmental quality incentives program estab- lished under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) for a high tunnel;

(E) engaging in an activity that extends the growing season;

(F) starting or expanding hydroponic and aeroponic farming of any scale;

(G) building, buying, erecting, or repairing fencing for livestock, poultry, or reindeer;

(H) purchasing and equipping a slaughter and proc- essing facility approved by the Secretary;

(I) traveling to participate in agricultural education provided by—

(i) a State cooperative extension service; (ii) a land-grant college or university (as defined

in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));

(iii) a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)));

(iv) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as such terms are defined in section 317(b) of the Higher Education Act of 1965 (20 U.S.C. 1059d(b))); or

(v) a Federal or State agency; (J) paying for shipping of purchased items relating

to growing or raising food for local consumption or pur- chase;

(K) creating or expanding avenues for—

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132 STAT. 4666 PUBLIC LAW 115–334—DEC. 20, 2018

(i) the sale of food commodities, specialty crops, and meats that are grown by the eligible entity for sale in the local community; or

(ii) increasing the availability of fresh, locally grown, and nutritious food; and (L) engaging in other activities relating to increasing

food security (including subsistence), as determined by the Secretary. (5) ELIGIBILITY FOR OTHER FINANCIAL ASSISTANCE.—An

eligible entity shall not be ineligible to receive financial assist- ance under another program administered by the Secretary as a result of receiving a subgrant under this section. (f) REPORTING REQUIREMENT.—

(1) SUBGRANT RECIPIENTS.—As a condition of receiving a subgrant under this section, an eligible entity shall agree to submit to the eligible State in which the eligible entity is located a report—

(A) not later than 60 days after the end of the project funded by the subgrant; and

(B) that describes the use of the subgrants by eligible entities, the quantity of food grown through small-scale gardening, herding, and livestock operations, and the number of food insecure individuals fed as a result of the subgrant. (2) REPORT TO THE SECRETARY.—Not later than 120 days

after the date on which an eligible State receives a report from each eligible entity in that State under paragraph (1), the eligible State shall submit to the Secretary a report that describes, in the aggregate, the information and data contained in the reports received from those eligible entities. (g) FUNDING.—

(1) AUTHORIZATION OF APPROPRIATIONS.—There is author- ized to be appropriated to the Secretary to carry out this section $10,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended.

(2) APPROPRIATIONS IN ADVANCE.—Only funds appropriated under paragraph (1) in advance specifically to carry out this section shall be available to carry out this section.

SEC. 4207. BUY AMERICAN REQUIREMENTS.

(a) ENFORCEMENT.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Agriculture shall—

(1) enforce full compliance with the requirements of section 12(n) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1760(n)) for purchases of agricultural commodities, including fish, meats, vegetables, and fruits, and the products thereof, and

(2) ensure that States and school food authorities fully understand their responsibilities under such Act. (b) REQUIREMENT.—The products of the agricultural commod-

ities described in subsection (a)(1) shall be processed in the United States and substantially contain—

(1) meats, vegetables, fruits, and other agricultural commodities produced in—

(A) a State, (B) the District of Columbia, (C) the Commonwealth of Puerto Rico, or

42 USC 1760 note.

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132 STAT. 4667PUBLIC LAW 115–334—DEC. 20, 2018

(D) any territory or possession of the United States, or (2) fish harvested—

(A) within the Exclusive Economic Zone of the United States, as described in Presidential Proclamation 5030 (48 Fed. Reg. 10605; March 10, 1983), or

(B) by a United States flagged vessel. (c) REPORT.—Not later than 180 days after the date of the

enactment of this Act, the Secretary shall submit to Congress a report on the actions the Secretary has taken, and plans to take, to comply with this section.

SEC. 4208. HEALTHY FLUID MILK INCENTIVES PROJECTS.

(a) DEFINITION OF FLUID MILK.—In this section the term ‘‘fluid milk’’ means all varieties of pasteurized cow’s milk that—

(1) is without flavoring or sweeteners, (2) is consistent with the most recent dietary recommenda-

tions, (3) is packaged in liquid form, and (4) contains vitamins A and D at levels consistent with

the Food and Drug Administration, State, and local standards for fluid milk. (b) PROJECTS.—The Secretary of Agriculture shall carry out,

under such terms and conditions as the Secretary considers to be appropriate, healthy fluid milk incentive projects to develop and test methods to increase the purchase and consumption of fluid milk by members of households that receive supplemental nutrition assistance program benefits by providing an incentive for the purchase of fluid milk at the point of purchase to members of households purchasing food with supplemental nutrition assist- ance program benefits.

(c) GRANTS OR COOPERATIVE AGREEMENTS.— (1) IN GENERAL.—To carry out this section, the Secretary,

on a competitive basis, shall enter into cooperative agreements with, or provide grants to, governmental entities or nonprofit organizations for projects that meet the purpose and selection criteria specified in this subsection.

(2) APPLICATION.—To be eligible to enter into a cooperative agreement or receive a grant under this subsection, a govern- ment entity or nonprofit organization shall submit to the Sec- retary an application containing such information as the Sec- retary may require.

(3) SELECTION CRITERIA.—Projects proposed in applications shall be evaluated against publicly disseminated criteria that shall incorporate a scientifically based strategy that is designed to improve diet quality and nutritional outcomes through the increased purchase of fluid milk by members of households that participate in the supplemental nutrition assistance pro- gram.

(4) USE OF FUNDS.—Funds made available to carry out this section shall not be used for any project that limits the use of benefits provided under the Food and Nutrition Act of 2008. (d) EVALUATION AND REPORTING.—

(1) EVALUATION.— (A) INDEPENDENT EVALUATION.—

7 USC 2026a note.

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132 STAT. 4668 PUBLIC LAW 115–334—DEC. 20, 2018

(i) IN GENERAL.—The Secretary shall provide for an independent evaluation of projects selected under this section that measures, to the maximum extent practicable, the impact on health and nutrition.

(ii) REQUIREMENT.—The independent evaluation under this subparagraph shall use rigorous methodolo- gies, particularly random assignment or other methods that are capable of producing scientifically valid information regarding which activities are effective. (B) COSTS.—The Secretary may use funds not to exceed

7 percent of the funding provided to carry out this section to pay costs associated with evaluating the outcomes of the healthy fluid milk incentive projects. (2) REPORTING.—Not later than December 31 of 2020, and

biennially thereafter, the Secretary shall submit to the Com- mittee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes a description of—

(A) the status of each healthy fluid milk incentives project, and

(B) the results of any completed evaluation that— (i) include, to the maximum extent practicable,

the impact of the healthy fluid milk incentive projects on health and nutrition outcomes among households participating in such projects, and

(ii) have not been submitted in a previous report under this paragraph.

(3) PUBLIC DISSEMINATION.—In addition to the reporting requirements under paragraph (2), evaluation results shall be shared publicly to promote wide use of successful strategies. (e) FUNDING.—

(1) AUTHORIZATION OF APPROPRIATIONS.—There is author- ized to be appropriated $20,000,000 to carry out and evaluate the outcomes of projects under this section, to remain available until expended.

(2) APPROPRIATIONS IN ADVANCE.—Only funds appropriated under paragraph (1) in advance specifically to carry out this section shall be available to carry out this section.

TITLE V—CREDIT

Subtitle A—Farm Ownership Loans SEC. 5101. MODIFICATION OF THE 3-YEAR EXPERIENCE ELIGIBILITY

REQUIREMENT FOR FARM OWNERSHIP LOANS.

Section 302(b) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1922(b)) is amended by adding at the end the following:

‘‘(4) WAIVER AUTHORITY.—In the case of a qualified begin- ning farmer or rancher, the Secretary may—

‘‘(A) reduce the 3-year requirement in paragraph (1) to 1 or 2 years, if the farmer or rancher has—

‘‘(i) not less than 16 credit hours of post-secondary education in a field related to agriculture;

‘‘(ii) successfully completed a farm management curriculum offered by a cooperative extension service,

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132 STAT. 4669PUBLIC LAW 115–334—DEC. 20, 2018

a community college, an adult vocational agriculture program, a nonprofit organization, or a land-grant col- lege or university;

‘‘(iii) at least 1 year of experience as hired farm labor with substantial management responsibilities;

‘‘(iv) successfully completed a farm mentorship, apprenticeship, or internship program with an emphasis on management requirements and day-to- day farm management decisions;

‘‘(v) significant business management experience; ‘‘(vi) been honorably discharged from the armed

forces of the United States; ‘‘(vii) successfully repaid a youth loan made under

section 311(b); or ‘‘(viii) an established relationship with an indi-

vidual who has experience in farming or ranching, or is a retired farmer or rancher, and is participating as a counselor in a Service Corps of Retired Executives program authorized under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)), or with a local farm or ranch operator or organization, approved by the Secretary, that is committed to men- toring the farmer or rancher; or ‘‘(B) waive the 3-year requirement in paragraph (1)

if the farmer or rancher meets the requirements of clauses (iii) and (viii) of subparagraph (A).’’.

SEC. 5102. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

Section 304(h) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1924(h)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 5103. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

Section 305 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925) is amended—

(1) in subsection (a)(2)— (A) by striking ‘‘$300,000’’ and inserting ‘‘$600,000’’; (B) by striking ‘‘$700,000’’ and inserting ‘‘$1,750,000’’;

and (C) by striking ‘‘2000’’ and inserting ‘‘2019’’; and

(2) in subsection (c)— (A) in paragraph (1), by striking ‘‘August’’ and inserting

‘‘July’’; and (B) in paragraph (2), by striking ‘‘ending on August

31, 1996’’ and inserting ‘‘that immediately precedes the 12-month period described in paragraph (1)’’.

SEC. 5104. RELENDING PROGRAM TO RESOLVE OWNERSHIP AND SUCCESSION ON FARMLAND.

Subtitle A of title III of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the following:

‘‘SEC. 310I. RELENDING PROGRAM TO RESOLVE OWNERSHIP AND SUCCESSION ON FARMLAND.

‘‘(a) IN GENERAL.—The Secretary may make loans to eligible entities described in subsection (b) so that the eligible entities

7 USC 1936c.

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132 STAT. 4670 PUBLIC LAW 115–334—DEC. 20, 2018

may relend the funds to individuals and entities for the purposes described in subsection (c).

‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for loans described in subsection (a) are cooperatives, credit unions, and nonprofit organizations with—

‘‘(1) certification under section 1805.201 of title 12, Code of Federal Regulations (or successor regulations), to operate as a lender;

‘‘(2) experience assisting socially disadvantaged farmers and ranchers (as defined in subsection (a) of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) or limited resource or new and beginning farmers and ranchers, rural businesses, cooperatives, or credit unions, including experience in making and servicing agricul- tural and commercial loans; and

‘‘(3) the ability to provide adequate assurance of the repay- ment of a loan. ‘‘(c) ELIGIBLE PURPOSES.—The proceeds from loans made by

the Secretary pursuant to subsection (a) shall be re-lent by eligible entities for projects that assist heirs with undivided ownership interests to resolve ownership and succession on farmland that has multiple owners.

‘‘(d) PREFERENCE.—In making loans under subsection (a), the Secretary shall give preference to eligible entities—

‘‘(1) with not less than 10 years of experience serving socially disadvantaged farmers and ranchers; and

‘‘(2) in States that have adopted a statute consisting of an enactment or adoption of the Uniform Partition of Heirs Property Act, as approved and recommended for enactment in all States by the National Conference of Commissioners on Uniform State Laws in 2010, that relend to owners of heirs property (as defined in that Act). ‘‘(e) LOAN TERMS AND CONDITIONS.—The following terms and

conditions shall apply to loans made under this section: ‘‘(1) The interest rate at which intermediaries may borrow

funds under this section shall be determined by the Secretary. ‘‘(2) The rates, terms, and payment structure for borrowers

to which intermediaries lend shall be— ‘‘(A) determined by the intermediary in an amount

sufficient to cover the cost of operating and sustaining the revolving loan fund; and

‘‘(B) clearly and publicly disclosed to qualified ultimate borrowers. ‘‘(3) Borrowers to which intermediaries lend shall be—

‘‘(A) required to complete a succession plan as a condi- tion of the loan; and

‘‘(B) be offered the opportunity to borrow sufficient funds to cover costs associated with the succession plan under subparagraph (A) and other associated legal and closing costs.

‘‘(f) REPORT.—Not later than 1 year after the date of enactment of this section, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the operation and outcomes of the program under this section, with recommendations on how to strengthen the program.

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132 STAT. 4671PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2019 through 2023.’’.

Subtitle B—Operating Loans

SEC. 5201. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

Section 313 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1943) is amended—

(1) in subsection (a)(1)— (A) by striking ‘‘$300,000’’ and inserting ‘‘$400,000’’; (B) by striking ‘‘$700,000’’ and inserting ‘‘$1,750,000’’;

and (C) by striking ‘‘2000’’ and inserting ‘‘2019’’; and

(2) in subsection (b)— (A) in paragraph (1), by striking ‘‘August’’ and inserting

‘‘July’’; and (B) in paragraph (2), by striking ‘‘ending on August

31, 1996’’ and inserting ‘‘that immediately precedes the 12-month period described in paragraph (1)’’.

SEC. 5202. MICROLOANS.

Section 313(c)(2) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1943(c)(2)) is amended by striking ‘‘title’’ and inserting ‘‘subsection’’. SEC. 5203. COOPERATIVE LENDING PILOT PROJECTS.

Section 313(c)(4)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1943(c)(4)(A)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

Subtitle C—Administrative Provisions

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOP- MENT ACCOUNTS PILOT PROGRAM.

Section 333B(h) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1983b(h)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. SEC. 5302. LOAN AUTHORIZATION LEVELS.

Section 346(b)(1) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1994(b)(1)) is amended—

(1) in the matter preceding subparagraph (A), by striking ‘‘$4,226,000,000 for each of fiscal years 2008 through 2018’’ and inserting ‘‘$10,000,000,000 for each of fiscal years 2019 through 2023’’; and

(2) by striking subparagraphs (A) and (B) and inserting the following:

‘‘(A) $3,000,000,000 shall be for direct loans, of which— ‘‘(i) $1,500,000,000 shall be for farm ownership

loans under subtitle A; and ‘‘(ii) $1,500,000,000 shall be for operating loans

under subtitle B; and ‘‘(B) $7,000,000,000 shall be for guaranteed loans, of

which—

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132 STAT. 4672 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(i) $3,500,000,000 shall be for farm ownership loans under subtitle A; and

‘‘(ii) $3,500,000,000 shall be for operating loans under subtitle B.’’.

SEC. 5303. LOAN FUND SET-ASIDES.

Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 5304. USE OF ADDITIONAL FUNDS FOR DIRECT OPERATING MICROLOANS UNDER CERTAIN CONDITIONS.

Section 346(b) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1994(b)) is amended by adding at the end the following:

‘‘(5) USE OF ADDITIONAL FUNDS FOR DIRECT OPERATING MICROLOANS UNDER CERTAIN CONDITIONS.—

‘‘(A) IN GENERAL.—If the Secretary determines that the amount needed for a fiscal year for direct operating loans (including microloans) under subtitle B is greater than the aggregate principal amount authorized for that fiscal year by this Act, an appropriations Act, or any other provision of law, the Secretary shall make additional microloans under subtitle B using amounts made available under subparagraph (C).

‘‘(B) NOTICE.—Not later than 15 days before the date on which the Secretary uses the authority under subpara- graph (A), the Secretary shall submit a notice of the use of that authority to—

‘‘(i) the Committee on Appropriations of the House of Representatives;

‘‘(ii) the Committee on Appropriations of the Senate;

‘‘(iii) the Committee on Agriculture of the House of Representatives; and

‘‘(iv) the Committee on Agriculture, Nutrition, and Forestry of the Senate. ‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There is

authorized to be appropriated to carry out this paragraph $5,000,000 for each of fiscal years 2019 through 2023.’’.

SEC. 5305. EQUITABLE RELIEF.

The Consolidated Farm and Rural Development Act is amended by inserting after section 365 (7 U.S.C. 2008) the following:

‘‘SEC. 366. EQUITABLE RELIEF.

‘‘(a) IN GENERAL.—Subject to subsection (b), the Secretary may provide a form of relief described in subsection (c) to any farmer or rancher who—

‘‘(1) received a direct farm ownership, operating, or emer- gency loan under this title; and

‘‘(2) the Secretary determines is not in compliance with the requirements of this title with respect to the loan. ‘‘(b) LIMITATION.—The Secretary may only provide relief to a

farmer or rancher under subsection (a) if the Secretary determines that the farmer or rancher—

‘‘(1) acted in good faith; and

7 USC 2008a.

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132 STAT. 4673PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(2) relied on an action of, or the advice of, the Secretary (including any authorized representative of the Secretary) to the detriment of the farming or ranching operation of the farmer or rancher. ‘‘(c) FORMS OF RELIEF.—The Secretary may provide to a farmer

or rancher under subsection (a) any of the following forms of relief: ‘‘(1) The farmer or rancher may retain loans or other bene-

fits received in association with the loan with respect to which the farmer or rancher was determined to be noncompliant under subsection (a)(2).

‘‘(2) The farmer or rancher may receive such other equitable relief as the Secretary determines to be appropriate. ‘‘(d) CONDITION.—As a condition of receiving relief under this

section, the Secretary may require the farmer or rancher to take actions designed to remedy the noncompliance.

‘‘(e) ADMINISTRATIVE APPEAL; JUDICIAL REVIEW.—A determina- tion or action of the Secretary under this section—

‘‘(1) shall be final; and ‘‘(2) shall not be subject to administrative appeal or judicial

review under chapter 7 of title 5, United States Code.’’. SEC. 5306. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS;

QUALIFIED BEGINNING FARMERS AND RANCHERS.

The Consolidated Farm and Rural Development Act is amended by inserting after section 366 (as added by section 5305) the fol- lowing: ‘‘SEC. 367. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS;

QUALIFIED BEGINNING FARMERS AND RANCHERS.

‘‘In the case of a loan guaranteed by the Secretary under subtitle A or B to a socially disadvantaged farmer or rancher (as defined in section 355(e)) or a qualified beginning farmer or rancher, the Secretary may provide for a standard guarantee plan, which shall cover an amount equal to 95 percent of the outstanding principal of the loan.’’. SEC. 5307. EMERGENCY LOAN ELIGIBILITY.

Section 373(b)(2)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008h(b)(2)(B)) is amended—

(1) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately;

(2) in the matter preceding subclause (I) (as so redesig- nated), by striking ‘‘The Secretary’’ and inserting the following:

‘‘(i) IN GENERAL.—The Secretary’’; and (3) by adding at the end the following:

‘‘(ii) RESTRUCTURED LOANS.—For purposes of clause (i), a borrower who was restructured with a write-down or restructuring under section 353 shall not be considered to have received debt forgiveness on a loan made or guaranteed under this title.’’.

7 USC 2008b.

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132 STAT. 4674 PUBLIC LAW 115–334—DEC. 20, 2018

Subtitle D—Miscellaneous

SEC. 5401. TECHNICAL CORRECTIONS TO THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.

(a)(1) Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended in the second sen- tence by striking ‘‘and limited liability companies’’ and inserting ‘‘limited liability companies, and such other legal entities’’.

(2) The amendment made by this subsection shall take effect as if included in the enactment of section 5201(2)(C) of the Agricul- tural Act of 2014 (Public Law 113–79) in lieu of the amendment made by such section.

(b)(1) Section 331D(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981d(e)) is amended by inserting after ‘‘within 60 days after receipt of the notice required in this section’’ the following: ‘‘or, in extraordinary circumstances as determined by the applicable State director, after the 60-day period’’.

(2) The amendment made by this subsection shall take effect as if included in the enactment of section 10 of the Agricultural Credit Improvement Act of 1992 (Public Law 102–554).

(c)(1) Section 333A(f)(1)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a(f)(1)(A)) is amended by striking ‘‘114’’ and inserting ‘‘339’’.

(2) The amendment made by this subsection shall take effect as if included in the enactment of section 14 of the Agricultural Credit Improvement Act of 1992 (Public Law 102–554).

(d) Section 339(d)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C.1989(d)(3)) is amended by striking ‘‘pre- ferred certified lender’’ and inserting ‘‘Preferred Certified Lender’’.

(e)(1) Section 343(a)(11)(C) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(11)(C)) is amended by striking ‘‘or joint operators’’ and inserting ‘‘joint operator, or owners’’.

(2) The amendment made by this subsection shall take effect as of the effective date of section 5303(a)(2) of the Agricultural Act of 2014 (Public Law 113–79).

(f)(1) Section 343(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(b)) is amended by striking ‘‘307(e)’’ and inserting ‘‘307(d)’’.

(2) The amendment made by paragraph (1) shall take effect as of the date of enactment of the Agricultural Act of 2014 (Public Law 113–79).

(g) Section 346(a) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C.1994(a)) is amended by striking the last comma.

SEC. 5402. STATE AGRICULTURAL MEDIATION PROGRAMS.

(a) ISSUES COVERED BY STATE MEDIATION PROGRAMS.—Section 501(c) of the Agricultural Credit Act of 1987 (7 U.S.C. 5101(c)) is amended—

(1) in paragraph (1)— (A) in subparagraph (B)—

(i) in the matter preceding clause (i), by striking ‘‘under the jurisdiction of the Department of Agri- culture’’;

(ii) in clause (ii), by inserting ‘‘and the national organic program established under the Organic Foods

7 USC 1901 note.

7 USC 1991 note.

7 USC 1983a note.

7 USC 1981d note.

7 USC 1961 note.

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132 STAT. 4675PUBLIC LAW 115–334—DEC. 20, 2018

Production Act of 1990 (7 U.S.C. 6501 et seq.)’’ before the period at the end; and

(iii) by striking clause (vii) and inserting the fol- lowing:

‘‘(vii) Lease issues, including land leases and equip- ment leases.

‘‘(viii) Family farm transition. ‘‘(ix) Farmer-neighbor disputes. ‘‘(x) Such other issues as the Secretary or the

head of the department of agriculture of each partici- pating State considers appropriate for better serving the agricultural community and persons eligible for mediation.’’; and (B) by adding at the end the following: ‘‘(C) MEDIATION SERVICES.—Funding provided for the

mediation program of a qualifying State may also be used to provide credit counseling to persons described in para- graph (2)—

‘‘(i) prior to the initiation of any mediation involving the Department of Agriculture; or

‘‘(ii) unrelated to any ongoing dispute or mediation in which the Department of Agriculture is a party.’’;

(2) in paragraph (2)(A)— (A) in clause (ii), by striking ‘‘and’’ after the semicolon; (B) in clause (iii), by striking the period at the end

and inserting ‘‘; and’’; and (C) by adding at the end the following:

‘‘(iv) any other persons involved in an issue for which mediation services are provided by a mediation program described in paragraph (1)(B).’’; and

(3) in paragraph (3)(F), by striking ‘‘that persons’’ and inserting the following: ‘‘that—

‘‘(i) the Department of Agriculture receives ade- quate notification of those issues; and

‘‘(ii) persons’’. (b) REPORT REQUIRED.—Section 505 of the Agricultural Credit

Act of 1987 (7 U.S.C. 5105) is amended to read as follows:

‘‘SEC. 505. REPORT.

‘‘Not later than 2 years after the date of enactment of the Agriculture Improvement Act of 2018, the Secretary shall submit to Congress a report describing—

‘‘(1) the effectiveness of the State mediation programs receiving matching grants under this subtitle;

‘‘(2) recommendations for improving the delivery of medi- ation services to producers;

‘‘(3) the steps being taken to ensure that State mediation programs receive timely funding under this subtitle; and

‘‘(4) the savings to the States as a result of having a mediation program.’’. (c) AUTHORIZATION OF APPROPRIATIONS.—Section 506 of the

Agricultural Credit Act of 1987 (7 U.S.C. 5106) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’.

SEC. 5403. COMPENSATION OF BANK DIRECTORS.

Section 4.21 of the Farm Credit Act of 1971 (12 U.S.C. 2209) is repealed.

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132 STAT. 4676 PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 5404. SHARING OF PRIVILEGED AND CONFIDENTIAL INFORMA- TION.

Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 2254) is amended by adding at the end the following:

‘‘(e) SHARING OF PRIVILEGED AND CONFIDENTIAL INFORMA- TION.—A System institution shall not be considered to have waived the confidentiality of a privileged communication with an attorney or an accountant if the System institution provides the content of the communication to the Farm Credit Administration pursuant to the supervisory or regulatory authorities of the Farm Credit Administration.’’. SEC. 5405. FACILITY HEADQUARTERS.

Section 5.16 of the Farm Credit Act of 1971 (12 U.S.C. 2251) is amended by striking all that precedes ‘‘to the rental of quarters’’ and inserting the following: ‘‘SEC. 5.16. QUARTERS AND FACILITIES FOR THE FARM CREDIT

ADMINISTRATION.

‘‘(a) The Farm Credit Administration shall maintain its prin- cipal office within the Washington D.C.-Maryland-Virginia standard metropolitan statistical area, and such other offices within the United States as in its judgment are necessary.

‘‘(b) As an alternate’’. SEC. 5406. REMOVAL AND PROHIBITION AUTHORITY; INDUSTRY-WIDE

PROHIBITION.

Part C of title V of the Farm Credit Act of 1971 is amended by inserting after section 5.29 (12 U.S.C. 2265) the following: ‘‘SEC. 5.29A. REMOVAL AND PROHIBITION AUTHORITY; INDUSTRY-WIDE

PROHIBITION.

‘‘(a) DEFINITION OF PERSON.—In this section, the term ‘person’ means—

‘‘(1) an individual; and ‘‘(2) in the case of a specific determination by the Farm

Credit Administration, a legal entity. ‘‘(b) INDUSTRY-WIDE PROHIBITION.—Except as provided in sub-

section (c), any person who, pursuant to an order issued under section 5.28 or 5.29, has been removed or suspended from office at a System institution or prohibited from participating in the conduct of the affairs of a System institution shall not, during the period of effectiveness of the order, continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of—

‘‘(1) any insured depository institution subject to section 8(e)(7)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(A)(i));

‘‘(2) any institution subject to section 8(e)(7)(A)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(A)(ii));

‘‘(3) any insured credit union under the Federal Credit Union Act (12 U.S.C. 1751 et seq.);

‘‘(4) any Federal home loan bank; ‘‘(5) any institution chartered under this Act; ‘‘(6) any appropriate Federal financial institutions regu-

latory agency (as defined in section 8(e)(7)(D) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(D)));

‘‘(7) the Federal Housing Finance Agency; or

12 USC 2265a.

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132 STAT. 4677PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(8) the Farm Credit Administration. ‘‘(c) EXCEPTION FOR INSTITUTION-AFFILIATED PARTY THAT

RECEIVES WRITTEN CONSENT.— ‘‘(1) IN GENERAL.—

‘‘(A) AFFILIATED PARTIES.—If, on or after the date on which an order described in subsection (b) is issued that removes or suspends an institution-affiliated party from office at a System institution or prohibits an institution- affiliated party from participating in the conduct of the affairs of a System institution, that party receives written consent described in subparagraph (B), subsection (b) shall not apply to that party—

‘‘(i) to the extent provided in the written consent received; and

‘‘(ii) with respect to the institution described in each written consent. ‘‘(B) WRITTEN CONSENT DESCRIBED.—The written con-

sent referred to in subparagraph (A) is written consent received from—

‘‘(i) the Farm Credit Administration; and ‘‘(ii) each appropriate Federal financial institutions

regulatory agency (as defined in section 8(e)(7)(D) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(D))) of the applicable institution described in any of paragraphs (1), (2), (3), or (4) of subsection (b) with respect to which the party proposes to be become an affiliated party.

‘‘(2) DISCLOSURE.—Any agency described in clause (i) or (ii) of paragraph (1)(B) that provides a written consent under that paragraph shall—

‘‘(A) report the action to the Farm Credit Administra- tion; and

‘‘(B) publicly disclose the action. ‘‘(3) CONSULTATION BETWEEN AGENCIES.—The agencies

described in clauses (i) and (ii) of paragraph (1)(B) shall consult with each other before providing any written consent under that paragraph. ‘‘(d) VIOLATIONS.—A violation of subsection (b) by any person

who is subject to an order described in that subsection shall be treated as violation of that order.’’.

SEC. 5407. JURISDICTION OVER INSTITUTION-AFFILIATED PARTIES.

Part C of title V of the Farm Credit Act of 1971 is amended by inserting after section 5.31 (12 U.S.C. 2267) the following:

‘‘SEC. 5.31A. JURISDICTION OVER INSTITUTION-AFFILIATED PARTIES.

‘‘(a) IN GENERAL.—For purposes of sections 5.25, 5.26, and 5.32, the jurisdiction of the Farm Credit Administration over par- ties, and the authority of the Farm Credit Administration to initiate actions, shall include enforcement authority over institution-affili- ated parties.

‘‘(b) EFFECT OF SEPARATION ON JURISDICTION AND AUTHORITY.— Subject to subsection (c), the resignation, termination of employ- ment or participation, or separation of an institution-affiliated party (including a separation caused by the merger, consolidation, con- servatorship, or receivership of a Farm Credit System institution) shall not affect the jurisdiction and authority of the Farm Credit

12 USC 2267a.

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132 STAT. 4678 PUBLIC LAW 115–334—DEC. 20, 2018

Administration to issue any notice or order and proceed under this part against that party.

‘‘(c) LIMITATION.—To proceed against a party under subsection (b), the notice or order described in that subsection shall be served not later than 6 years after the date on which the party ceased to be an institution-affiliated party with respect to the applicable Farm Credit System institution.

‘‘(d) APPLICABILITY.—The date on which a party ceases to be an institution-affiliated party described in subsection (c) may occur before, on, or after the date of enactment of this section.’’.

SEC. 5408. DEFINITION OF INSTITUTION-AFFILIATED PARTY.

Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) is amended—

(1) in paragraph (3), by striking ‘‘and’’ at the end; (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph (3) the following: ‘‘(4) the term ‘institution-affiliated party’ means—

‘‘(A) a director, officer, employee, shareholder, or agent of a System institution;

‘‘(B) an independent contractor (including an attorney, appraiser, or accountant) who knowingly or recklessly participates in—

‘‘(i) a violation of law (including regulations) that is associated with the operations and activities of 1 or more System institutions;

‘‘(ii) a breach of fiduciary duty; or ‘‘(iii) an unsafe practice that causes or is likely

to cause more than a minimum financial loss to, or a significant adverse effect on, a System institution; and ‘‘(C) any other person, as determined by the Farm

Credit Administration (by regulation or on a case-by-case basis) who participates in the conduct of the affairs of a System institution; and’’.

SEC. 5409. PROHIBITION ON USE OF FUNDS.

Section 5.65 of the Farm Credit Act of 1971 (12 U.S.C. 2277a– 14) is amended by adding at the end the following:

‘‘(e) PROHIBITION ON USES OF FUNDS RELATED TO FEDERAL AGRICULTURAL MORTGAGE CORPORATION.—No funds from adminis- trative accounts or from the Farm Credit System Insurance Fund may be used by the Corporation to provide assistance to the Federal Agricultural Mortgage Corporation or to support any activities related to the Federal Agricultural Mortgage Corporation.’’.

SEC. 5410. EXPANSION OF ACREAGE EXCEPTION TO LOAN AMOUNT LIMITATION.

(a) IN GENERAL.—Section 8.8(c)(2) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–8(c)(2)) is amended by striking ‘‘1,000’’ and inserting ‘‘2,000’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect 1 year after the date a report submitted in accord- ance with section 5414 of this Act indicates that it is feasible to increase the acreage limitation in section 8.8(c)(2) of the Farm Credit Act of 1971 to 2,000 acres.

12 USC 2279aa–8 note.

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132 STAT. 4679PUBLIC LAW 115–334—DEC. 20, 2018

SEC. 5411. REPEAL OF OBSOLETE PROVISIONS; TECHNICAL CORREC- TIONS.

(1) Section 1.1(c) of the Farm Credit Act of 1971 (12 U.S.C. 2001(c)) is amended in the first sentence by striking ‘‘including any costs of defeasance under section 4.8(b),’’.

(2) Section 1.2 of the Farm Credit Act of 1971 (12 U.S.C. 2002) is amended by striking subsection (a) and inserting the following: ‘‘(a) COMPOSITION.—The Farm Credit System shall include the

Farm Credit Banks, the bank for cooperatives, Agricultural Credit Banks, the Federal Land Bank Associations, the Federal Land Credit Associations, the Production Credit Associations, the agricul- tural credit associations, the Federal Farm Credit Banks Funding Corporation, the Federal Agricultural Mortgage Corporation, service corporations established pursuant to section 4.25, and such other institutions as may be made a part of the Farm Credit System, all of which shall be chartered by and subject to regulation by the Farm Credit Administration.’’.

(3) Section 2.4 of the Farm Credit Act of 1971 (12 U.S.C. 2075) is amended by striking subsection (d).

(4) Section 3.0(a) of the Farm Credit Act of 1971 (12 U.S.C. 2121(a)) is amended—

(A) in the third sentence, by striking ‘‘and a Central Bank for Cooperatives’’; and

(B) by striking the fifth sentence. (5) Section 3.2 of the Farm Credit Act of 1971 (12 U.S.C.

2123) is amended— (A) in subsection (a)—

(i) in paragraph (1), by striking ‘‘not merged into the United Bank for Cooperatives or the National Bank for Cooperatives’’; and

(ii) in paragraph (2)(A), in the matter preceding clause (i), by striking ‘‘(other than the National Bank for Cooperatives)’’; (B) by striking subsection (b); (C) in subsection (a)—

(i) by striking ‘‘(a)(1) Each bank’’ and inserting the following:

‘‘(a) IN GENERAL.—Each bank’’; and (ii) by striking ‘‘(2)(A) If approved’’ and inserting

the following: ‘‘(b) NOMINATION AND ELECTION.—

‘‘(1) IN GENERAL.—If approved’’; (D) in subsection (b)(1) (as so designated)—

(i) in subparagraph (B), by striking ‘‘(B) The total’’ and inserting the following:

‘‘(2) NUMBER OF VOTES.—The total’’; and (ii) by redesignating clauses (i) and (ii) as subpara-

graphs (A) and (B), respectively, and indenting appro- priately; and (E) in paragraph (2) (as so designated), by striking

‘‘paragraph’’ and inserting ‘‘subsection’’. (6) Section 3.5 of the Farm Credit Act of 1971 (12 U.S.C.

2126) is amended in the third sentence by striking ‘‘district’’. (7) Section 3.7(a) of the Farm Credit Act of 1971 (12 U.S.C.

2128(a)) is amended by striking the second sentence.

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132 STAT. 4680 PUBLIC LAW 115–334—DEC. 20, 2018

(8) Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2129(b)(1)(A)) is amended by inserting ‘‘(or any suc- cessor agency)’’ after ‘‘Rural Electrification Administration’’.

(9) Section 3.9(a) of the Farm Credit Act of 1971 (12 U.S.C. 2130(a)) is amended by striking the third sentence.

(10) Section 3.10 of the Farm Credit Act of 1971 (12 U.S.C. 2131) is amended—

(A) in subsection (c), by striking the second sentence; and

(B) in subsection (d)— (i) by striking ‘‘district’’ each place it appears; and (ii) by inserting ‘‘for cooperatives (or any successor

bank)’’ before ‘‘on account’’. (11) Section 3.11 of the Farm Credit Act of 1971 (12 U.S.C.

2132) is amended— (A) in subsection (a), in the first sentence, by striking

‘‘subsections (b) and (c) of this section’’ and inserting ‘‘sub- section (b)’’;

(B) in subsection (b)— (i) in the first sentence, by striking ‘‘district’’; and (ii) in the second sentence, by striking ‘‘Except

as provided in subsection (c) below, all’’ and inserting ‘‘All’’; (C) by striking subsection (c); and (D) by redesignating subsections (d) through (f) as sub-

sections (c) through (e), respectively. (12) Part B of title III of the Farm Credit Act of 1971

(12 U.S.C. 2141 et seq.) is amended in the part heading by striking ‘‘UNITED AND’’.

(13) Section 3.20 of the Farm Credit Act of 1971 (12 U.S.C. 2141) is amended—

(A) in subsection (a), by striking ‘‘or the United Bank for Cooperatives, as the case may be’’; and

(B) in subsection (b), by striking ‘‘the district banks for cooperatives and the Central Bank for Cooperatives’’ and inserting ‘‘the constituent banks described in section 413(b) of the Agricultural Credit Act of 1987 (12 U.S.C. 2121 note; Public Law 100–233)’’. (14) Section 3.21 of the Farm Credit Act of 1971 (12 U.S.C.

2142) is repealed. (15) Section 3.28 of the Farm Credit Act of 1971 (12 U.S.C.

2149) is amended by striking ‘‘a district bank for cooperatives and the Central Bank for Cooperatives’’ and inserting ‘‘the constituent banks described in section 413(b) of the Agricultural Credit Act of 1987 (12 U.S.C. 2121 note; Public Law 100– 233)’’.

(16) Section 3.29 of the Farm Credit Act of 1971 (12 U.S.C. 2149a) is repealed.

(17) Section 4.0 of the Farm Credit Act of 1971 (12 U.S.C. 2151) is repealed.

(18) Section 4.8 of the Farm Credit Act of 1971 (12 U.S.C. 2159) is amended—

(A) by striking the section designation and heading and all that follows through ‘‘Each bank’’ in subsection (a) and inserting the following:

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132 STAT. 4681PUBLIC LAW 115–334—DEC. 20, 2018

‘‘SEC. 4.8. PURCHASE AND SALE OF OBLIGATIONS.

‘‘Each bank’’; and (B) by striking subsection (b).

(19) Section 4.9 of the Farm Credit Act of 1971 (12 U.S.C. 2160) is amended—

(A) in subsection (d)— (i) by striking paragraph (2) and inserting the

following: ‘‘(3) REPRESENTATION OF BOARD.—The Farm Credit System

Insurance Corporation shall not have representation on the board of directors of the Corporation.’’;

(ii) in the undesignated matter following para- graph (1)(D), by striking ‘‘In selecting’’ and inserting the following:

‘‘(2) CONSIDERATIONS.—In selecting’’; and (iii) in paragraph (2) (as so designated), by

inserting ‘‘of paragraph (1)’’ after ‘‘(A) and (B)’’; (B) by striking subsection (e); and (C) by redesignating subsection (f) as subsection (e).

(20) Section 4.9A(c) of the Farm Credit Act of 1971 (12 U.S.C. 2162(c)) is amended—

(A) by striking ‘‘institution, and—’’ in the matter pre- ceding paragraph (1) and all that follows through the period at the end of paragraph (2) and inserting ‘‘institution.’’;

(B) by striking ‘‘If an institution’’ and inserting the following: ‘‘(1) IN GENERAL.—If an institution’’;

(C) in paragraph (1) (as so designated), by striking ‘‘the receiver of the institution’’ and inserting ‘‘the Farm Credit System Insurance Corporation, acting as receiver,’’; and

(D) by adding at the end the following: ‘‘(2) FUNDING.—The Farm Credit System Insurance Cor-

poration shall use such funds from the Farm Credit Insurance Fund as are sufficient to carry out this section.’’.

(21) Section 4.12A(a) of the Farm Credit Act of 1971 (12 U.S.C. 2184(a)) is amended by striking paragraph (1) and inserting the following:

‘‘(1) IN GENERAL.—A Farm Credit System bank or associa- tion shall provide to a stockholder of the bank or association a current list of stockholders of the bank or association not later than 7 calendar days after the date on which the bank or association receives a written request for the stockholder list from the stockholder.’’.

(22) Section 4.14A of the Farm Credit Act of 1971 (12 U.S.C. 2202a) is amended—

(A) in subsection (a)— (i) in the matter preceding paragraph (1), by

inserting ‘‘and section 4.36’’ before the colon at the end; and

(ii) in paragraph (5)(B)(ii)(I), by striking ‘‘4.14C,’’; (B) by striking subsection (h); (C) by redesignating subsections (i) through (l) as sub-

sections (h) through (k), respectively; and (D) in subsection (k) (as so redesignated), by striking

‘‘production credit’’.

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132 STAT. 4682 PUBLIC LAW 115–334—DEC. 20, 2018

(23) Section 4.14C of the Farm Credit Act of 1971 (12 U.S.C. 2202c) is repealed.

(24) Section 4.17 of the Farm Credit Act of 1971 (12 U.S.C. 2205) is amended in the third sentence by striking ‘‘Federal intermediate credit banks and’’.

(25) Section 4.19(a) of the Farm Credit Act of 1971 (12 U.S.C. 2207(a)) is amended—

(A) in the first sentence— (i) by striking ‘‘district’’; and (ii) by striking ‘‘Federal land bank association and

production credit’’; and (B) in the second sentence, by striking ‘‘units’’ and

inserting ‘‘institutions’’. (26) Section 4.38 of the Farm Credit Act of 1971 (12 U.S.C.

2219c) is amended by striking ‘‘The Assistance Board estab- lished under section 6.0 and all’’ and inserting ‘‘All’’.

(27) Section 4.39 of the Farm Credit Act of 1971 (12 U.S.C. 2219d) is amended by striking ‘‘8.0(7))’’ and inserting ‘‘8.0)’’.

(28) Section 5.16 of the Farm Credit Act of 1971 (12 U.S.C. 2251) is amended in the undesignated matter following para- graph (5) of subsection (b) (as designated by section 5405)—

(A) in the fifth sentence, by striking ‘‘In actions under- taken by the banks pursuant to the foregoing provisions of this section’’ and inserting the following: ‘‘(5) AGENT FOR BANKS.—In actions undertaken by the

banks pursuant to this section’’; (B) in the fourth sentence, by striking ‘‘The plans’’

and inserting the following: ‘‘(4) APPROVAL OF BOARD.—The plans’’;

(C) in the third sentence, by striking ‘‘The powers’’ and inserting the following: ‘‘(3) POWERS OF BANKS.—The powers’’;

(D) in the second sentence, by striking ‘‘Such advances’’ and inserting the following: ‘‘(2) ADVANCES.—The advances of funds described in para-

graph (1)’’; and (E) in the first sentence, by striking ‘‘The Board’’ and

inserting the following: ‘‘(c) FINANCING.—

‘‘(1) IN GENERAL.—The Board’’. (29) Section 5.17(a)(2) of the Farm Credit Act of 1971

(12 U.S.C. 2252(a)(2)) is amended by striking the second and third sentences.

(30) Section 5.18 of the Farm Credit Act of 1971 (12 U.S.C. 2253) is repealed.

(31) Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 2254) is amended—

(A) in subsection (a)— (i) in the first sentence, by striking ‘‘Except for

Federal land bank associations, each’’ and inserting ‘‘Each’’; and

(ii) by striking the second sentence; and (B) in subsection (b)—

(i) by striking ‘‘(b)(1) Each’’ and inserting ‘‘(b) Each’’;

(ii) in the matter preceding paragraph (2) (as so designated)—

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132 STAT. 4683PUBLIC LAW 115–334—DEC. 20, 2018

(I) in the second sentence, by striking ‘‘, except with respect to any actions taken by any banks of the System under section 4.8(b),’’; and

(II) by striking the third sentence; and (iii) by striking paragraphs (2) and (3).

(32) Section 5.31 of the Farm Credit Act of 1971 (12 U.S.C. 2267) is amended in the second sentence by striking ‘‘4.14A(i)’’ and inserting ‘‘4.14A(h)’’.

(33) Section 5.32(h) of the Farm Credit Act of 1971 (12 U.S.C. 2268(h)) is amended by striking ‘‘4.14A(i)’’ and inserting ‘‘4.14A(h)’’.

(34) Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) is amended in paragraph (5) (as redesignated by section 5408(2))—

(A) in subparagraph (A), by adding ‘‘and’’ at the end; (B) by striking subparagraph (B); (C) by redesignating subparagraph (C) as subpara-

graph (B); and (D) in subparagraph (B) (as so redesignated)—

(i) by striking ‘‘after December 31, 1992,’’; and (ii) by striking ‘‘by the Farm Credit System Assist-

ance Board under section 6.6 or’’. (35) Section 5.38 of the Farm Credit Act of 1971 (12 U.S.C.

2274) is amended by striking ‘‘a farm’’ and all that follows through ‘‘land bank’’ and inserting ‘‘a Farm Credit Bank board, officer, or employee shall not remove any director or officer of any’’.

(36) Section 5.44 of the Farm Credit Act of 1971 (12 U.S.C. 2275) is repealed.

(37) Section 5.58(2) of the Farm Credit Act of 1971 (12 U.S.C. 2277a–7(2)) is amended by striking the second sentence.

(38) Section 5.60 of the Farm Credit Act of 1971 (12 U.S.C. 2277a–9) is amended—

(A) in subsection (b), by striking the subsection des- ignation and heading and all that follows through ‘‘The Corporation’’ in paragraph (2) and inserting the following:

‘‘(b) AMOUNTS IN FUND.—The Corporation’’; and (B) in subsection (c)(2), by striking ‘‘Insurance Fund

to—’’ in the matter preceding subparagraph (A) and all that follows through ‘‘ensure’’ in subparagraph (B) and inserting ‘‘Insurance Fund to ensure’’. (39) Title VI of the Farm Credit Act of 1971 (12 U.S.C.

2278a et seq.) is repealed. (40) Section 7.9 of the Farm Credit Act of 1971 (12 U.S.C.

2279c–2) is amended by striking subsection (c). (41) Section 7.10(a) of the Farm Credit Act of 1971 (12

U.S.C. 2279d(a)) is amended by striking paragraph (4) and inserting the following:

‘‘(4) the institution pays to the Farm Credit Insurance Fund the amount by which the total capital of the institution exceeds 6 percent of the assets;’’.

(42) Section 8.0 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa) is amended—

(A) in paragraph (2), by striking ‘‘means—’’ in the matter preceding subparagraph (A) and all that follows through the period at the end of the undesignated matter

12 USC 2278a— 2278a–13, 2278b–2— 2278b–11.

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132 STAT. 4684 PUBLIC LAW 115–334—DEC. 20, 2018

following subparagraph (B) and inserting ‘‘means the board of directors established under section 8.2.’’;

(B) by striking paragraphs (6) and (8); (C) by redesignating paragraphs (7), (9), and (10) as

paragraphs (6), (7), and (8), respectively; and (D) in subparagraph (B)(i) of paragraph (7) (as so

redesignated), by striking ‘‘(b) through (d)’’ and inserting ‘‘(b) and (c)’’. (43) Section 8.2 of the Farm Credit Act of 1971 (12 U.S.C.

2279aa–2) is amended— (A) by striking subsection (a); (B) in subsection (b), by striking the subsection des-

ignation and heading and all that follows through the period at the end of paragraph (1) and inserting the fol- lowing:

‘‘(a) IN GENERAL.— ‘‘(1) ESTABLISHMENT.—The Corporation shall be under the

management of the board of directors.’’; (C) in subsection (a) (as so designated)—

(i) by striking ‘‘permanent board’’ each place it appears and inserting ‘‘Board’’;

(ii) by striking paragraph (3); (iii) by redesignating paragraphs (4) through (10)

as paragraphs (3) through (9), respectively; and (iv) in paragraph (3)(A) (as so redesignated), by

striking ‘‘(6)’’ and inserting ‘‘(5)’’; and (D) by redesignating subsection (c) as subsection (b).

(44) Section 8.4(a)(1) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–4(a)(1)) is amended—

(A) in the sixth sentence— (i) by striking ‘‘Class B’’ and inserting the fol-

lowing: ‘‘(iii) CLASS B STOCK.—Class B’’; and (ii) by striking ‘‘8.2(b)(2)(B)’’ and inserting

‘‘8.2(a)(2)(B)’’; (B) in the fifth sentence—

(i) by striking ‘‘Class A’’ and inserting the fol- lowing:

‘‘(ii) CLASS A STOCK.—Class A’’; and (ii) by striking ‘‘8.2(b)(2)(A)’’ and inserting

‘‘8.2(a)(2)(A)’’; (C) in the fourth sentence, by striking ‘‘The stock’’

and inserting the following: ‘‘(D) CLASSES OF STOCK.—

‘‘(i) IN GENERAL.—The stock’’; (D) by striking the third sentence and inserting the

following: ‘‘(C) OFFERS.—

‘‘(i) IN GENERAL.—The Board shall offer the voting common stock to banks, other financial institutions, insurance companies, and System institutions under such terms and conditions as the Board may adopt.

‘‘(ii) REQUIREMENTS.—The voting common stock shall be fairly and broadly offered to ensure that—

‘‘(I) no institution or institutions acquire a dis- proportionate share of the total quantity of the

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132 STAT. 4685PUBLIC LAW 115–334—DEC. 20, 2018

voting common stock outstanding of a class of stock; and

‘‘(II) capital contributions and issuances of voting common stock for the contributions are fairly distributed between entities eligible to hold class A stock and class B stock.’’;

(E) in the second sentence, by striking ‘‘Each share’’ and inserting the following:

‘‘(B) NUMBER OF VOTES.—Each share’’; and (F) in the first sentence, by striking ‘‘The Corporation’’

and inserting the following: ‘‘(A) IN GENERAL.—The Corporation’’.

(45) Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) is amended—

(A) by striking subsection (d); (B) by redesignating subsection (e) as subsection (d);

and (C) in paragraph (2) of subsection (d) (as so redesig-

nated), by striking ‘‘8.0(9))’’ and inserting ‘‘8.0)’’. (46) Section 8.9 of the Farm Credit Act of 1971 (12 U.S.C.

2279aa–9) is amended by striking ‘‘4.14C,’’ each place it appears.

(47) Section 8.11(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–11(e)) is amended by striking ‘‘8.0(7))’’ and inserting ‘‘8.0)’’.

(48) Section 8.32(a) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–1(a)) is amended—

(A) in the first sentence of the matter preceding para- graph (1), by striking ‘‘Not sooner than the expiration of the 3-year period beginning on the date of enactment of the Farm Credit System Reform Act of 1996, the’’ and inserting ‘‘The’’; and

(B) in paragraph (1)(B), by striking ‘‘8.0(9)(C)’’ and inserting ‘‘8.0(7)(C)’’. (49) Section 8.33(b)(2)(A) of the Farm Credit Act of 1971

(12 U.S.C. 2279bb–2(b)(2)(A)) is amended by striking ‘‘8.6(e)’’ and inserting ‘‘8.6(d)’’.

(50) Section 8.35 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–4) is amended by striking subsection (e).

(51) Section 8.38 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–7) is repealed.

(52) Section 4 of the Agricultural Marketing Act (12 U.S.C. 1141b) is repealed.

(53) Section 5 of the Agricultural Marketing Act (12 U.S.C. 1141c) is repealed.

(54) Section 6 of the Agricultural Marketing Act (12 U.S.C. 1141d) is repealed.

(55) Section 7 of the Agricultural Marketing Act (12 U.S.C. 1141e) is repealed.

(56) Section 8 of the Agricultural Marketing Act (12 U.S.C. 1141f) is repealed.

(57) Section 14 of the Agricultural Marketing Act (12 U.S.C. 1141i) is repealed.

(58) The Act of June 22, 1939 (53 Stat. 853, chapter 239; 12 U.S.C. 1141d–1), is repealed.

(59) Section 201(e) of the Emergency Relief and Construc- tion Act of 1932 (12 U.S.C. 1148) is repealed.

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132 STAT. 4686 PUBLIC LAW 115–334—DEC. 20, 2018

(60) Section 2 of the Act of July 14, 1953 (67 Stat. 150, chapter 192; 12 U.S.C. 1148a–4), is repealed.

(61) Section 32 of the Farm Credit Act of 1937 (12 U.S.C. 1148b) is repealed.

(62) Section 33 of the Farm Credit Act of 1937 (12 U.S.C. 1148c) is repealed.

(63) Section 34 of the Farm Credit Act of 1937 (12 U.S.C. 1148d) is repealed.

(64) The Joint Resolution of March 3, 1932 (47 Stat. 60, chapter 70; 12 U.S.C. 1401 et seq.), is repealed.

SEC. 5412. CORPORATION AS CONSERVATOR OR RECEIVER; CERTAIN OTHER POWERS.

Part E of title V of the Farm Credit Act of 1971 is amended by inserting after section 5.61B (12 U.S.C. 2277a–10b) the following: ‘‘SEC. 5.61C. CORPORATION AS CONSERVATOR OR RECEIVER; CERTAIN

OTHER POWERS.

‘‘(a) DEFINITION OF INSTITUTION.—In this section, the term ‘institution’ includes any System institution for which the Corpora- tion has been appointed as conservator or receiver.

‘‘(b) CERTAIN POWERS AND DUTIES OF CORPORATION AS CONSER- VATOR OR RECEIVER.—In addition to the powers inherent in the express grant of corporate authority under section 5.58(9), and other powers exercised by the Corporation under this part, the Corporation shall have the following express powers to act as a conservator or receiver:

‘‘(1) RULEMAKING AUTHORITY OF CORPORATION.—The Cor- poration may prescribe such regulations as the Corporation determines to be appropriate regarding the conduct of conservatorships or receiverships.

‘‘(2) GENERAL POWERS.— ‘‘(A) SUCCESSOR TO SYSTEM INSTITUTION.—The Corpora-

tion shall, as conservator or receiver, and by operation of law, succeed to—

‘‘(i) all rights, titles, powers, and privileges of the System institution, and of any stockholder, member, officer, or director of such System institution with respect to the System institution and the assets of the System institution; and

‘‘(ii) title to the books, records, and assets of any previous conservator or other legal custodian of such System institution. ‘‘(B) OPERATE THE SYSTEM INSTITUTION.—The Corpora-

tion may, as conservator or receiver— ‘‘(i) take over the assets of and operate the System

institution with all the powers of the stockholders or members, the directors, and the officers of the System institution and conduct all business of the System institution;

‘‘(ii) collect all obligations and money due the System institution;

‘‘(iii) perform all functions of the System institution in the name of the System institution which are con- sistent with the appointment as conservator or receiver;

‘‘(iv) preserve and conserve the assets and property of such System institution; and

12 USC 2277a–10c.

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132 STAT. 4687PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(v) provide by contract for assistance in fulfilling any function, activity, action, or duty of the Corporation as conservator or receiver. ‘‘(C) FUNCTIONS OF SYSTEM INSTITUTION’S OFFICERS,

DIRECTORS, MEMBERS, AND STOCKHOLDERS.—The Corpora- tion may, by regulation or order, provide for the exercise of any function by any stockholder, member, director, or officer of any System institution for which the Corporation has been appointed conservator or receiver.

‘‘(D) POWERS AS CONSERVATOR.—Subject to any Farm Credit Administration approvals required under this Act, the Corporation may, as conservator, take such action as may be—

‘‘(i) necessary to put the System institution in a sound and solvent condition; and

‘‘(ii) appropriate to carry on the business of the System institution and preserve and conserve the assets and property of the System institution. ‘‘(E) ADDITIONAL POWERS AS RECEIVER.—The Corpora-

tion may, as receiver, liquidate the System institution and proceed to realize upon the assets of the System institution, in such manner as the Corporation determines to be appro- priate.

‘‘(F) ORGANIZATION OF NEW SYSTEM BANK.—The Cor- poration may, as receiver with respect to any System bank, organize a bridge System bank under subsection (h).

‘‘(G) MERGER; TRANSFER OF ASSETS AND LIABILITIES.— ‘‘(i) IN GENERAL.—Subject to clause (ii), the Cor-

poration may, as conservator or receiver— ‘‘(I) merge the System institution with another

System institution; and ‘‘(II) transfer or sell any asset or liability of

the System institution in default without any approval, assignment, or consent with respect to such transfer. ‘‘(ii) APPROVAL.—No merger or transfer under

clause (i) may be made to another System institution (other than a bridge System bank under subsection (h)) without the approval of the Farm Credit Adminis- tration. ‘‘(H) PAYMENT OF VALID OBLIGATIONS.—The Corpora-

tion, as conservator or receiver, shall, to the extent that proceeds are realized from the performance of contracts or the sale of the assets of a System institution, pay all valid obligations of the System institution in accordance with the prescriptions and limitations of this section.

‘‘(I) INCIDENTAL POWERS.— ‘‘(i) IN GENERAL.—The Corporation may, as conser-

vator or receiver— ‘‘(I) exercise all powers and authorities specifi-

cally granted to conservators or receivers, respec- tively, under this section and such incidental powers as shall be necessary to carry out such powers; and

‘‘(II) take any action authorized by this section, which the Corporation determines is in the best interests of—

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132 STAT. 4688 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(aa) the System institution in receiver- ship or conservatorship;

‘‘(bb) System institutions; ‘‘(cc) System institution stockholders or

investors; or ‘‘(dd) the Corporation.

‘‘(ii) TERMINATION OF RIGHTS AND CLAIMS.— ‘‘(I) IN GENERAL.—Except as provided in sub-

clause (II), notwithstanding any other provision of law, the appointment of the Corporation as receiver for a System institution and the succes- sion of the Corporation, by operation of law, to the rights, titles, powers, and privileges described in subparagraph (A) shall terminate all rights and claims that the stockholders and creditors of the System institution may have, arising as a result of their status as stockholders or creditors, against the assets or charter of the System institution or the Corporation.

‘‘(II) EXCEPTIONS.—Subclause (I) shall not terminate the right to payment, resolution, or other satisfaction of the claims of stockholders and creditors described in that subclause, as permitted under paragraphs (10) and (11) and subsection (d). ‘‘(iii) CHARTER.—Notwithstanding any other provi-

sion of law, for purposes of this section, the charter of a System institution shall not be considered to be an asset of the System institution. ‘‘(J) UTILIZATION OF PRIVATE SECTOR.—In carrying out

its responsibilities in the management and disposition of assets from System institutions, as conservator, receiver, or in its corporate capacity, the Corporation may utilize the services of private persons, including real estate and loan portfolio asset management, property management, auction marketing, legal, and brokerage services, if the Corporation determines utilization of such services is prac- ticable, efficient, and cost effective. ‘‘(3) AUTHORITY OF RECEIVER TO DETERMINE CLAIMS.—

‘‘(A) IN GENERAL.—The Corporation may, as receiver, determine claims in accordance with the requirements of this subsection and regulations prescribed under paragraph (4).

‘‘(B) NOTICE REQUIREMENTS.—The receiver, in any case involving the liquidation or winding up of the affairs of a closed System institution, shall—

‘‘(i) promptly publish a notice to the System institu- tion’s creditors to present their claims, together with proof, to the receiver by a date specified in the notice which shall be not less than 90 days after the publica- tion of such notice; and

‘‘(ii) republish such notice approximately 1 month and 2 months, respectively, after the publication under clause (i). ‘‘(C) MAILING REQUIRED.—The receiver shall mail a

notice similar to the notice published under subparagraph

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132 STAT. 4689PUBLIC LAW 115–334—DEC. 20, 2018

(B)(i) at the time of such publication to any creditor shown on the System institution’s books—

‘‘(i) at the creditor’s last address appearing in such books; or

‘‘(ii) upon discovery of the name and address of a claimant not appearing on the System institution’s books within 30 days after the discovery of such name and address.

‘‘(4) RULEMAKING AUTHORITY RELATING TO DETERMINATION OF CLAIMS.—The Corporation may prescribe regulations regarding the allowance or disallowance of claims by the receiver and providing for administrative determination of claims and review of such determination.

‘‘(5) PROCEDURES FOR DETERMINATION OF CLAIMS.— ‘‘(A) DETERMINATION PERIOD.—

‘‘(i) IN GENERAL.—Before the end of the 180-day period beginning on the date any claim against a System institution is filed with the Corporation as receiver, the Corporation shall determine whether to allow or disallow the claim and shall notify the claim- ant of any determination with respect to such claim.

‘‘(ii) EXTENSION OF TIME.—The period described in clause (i) may be extended by a written agreement between the claimant and the Corporation.

‘‘(iii) MAILING OF NOTICE SUFFICIENT.—The require- ments of clause (i) shall be deemed to be satisfied if the notice of any determination with respect to any claim is mailed to the last address of the claimant which appears—

‘‘(I) on the System institution’s books; ‘‘(II) in the claim filed by the claimant; or ‘‘(III) in documents submitted in proof of the

claim. ‘‘(iv) CONTENTS OF NOTICE OF DISALLOWANCE.—If

any claim filed under clause (i) is disallowed, the notice to the claimant shall contain—

‘‘(I) a statement of each reason for the dis- allowance; and

‘‘(II) the procedures available for obtaining agency review of the determination to disallow the claim or judicial determination of the claim.

‘‘(B) ALLOWANCE OF PROVEN CLAIMS.—The receiver shall allow any claim received on or before the date speci- fied in the notice published under paragraph (3)(B)(i) by the receiver from any claimant which is proved to the satisfaction of the receiver.

‘‘(C) DISALLOWANCE OF CLAIMS FILED AFTER END OF FILING PERIOD.—

‘‘(i) IN GENERAL.—Except as provided in clause (ii), claims filed after the date specified in the notice published under paragraph (3)(B)(i) shall be disallowed and such disallowance shall be final.

‘‘(ii) CERTAIN EXCEPTIONS.—Clause (i) shall not apply with respect to any claim filed by any claimant after the date specified in the notice published under paragraph (3)(B)(i) and such claim may be considered by the receiver if—

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132 STAT. 4690 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(I) the claimant did not receive notice of the appointment of the receiver in time to file such claim before such date; and

‘‘(II) such claim is filed in time to permit pay- ment of such claim.

‘‘(D) AUTHORITY TO DISALLOW CLAIMS.— ‘‘(i) IN GENERAL.—The receiver may disallow any

portion of any claim by a creditor or claim of security, preference, or priority which is not proved to the satis- faction of the receiver.

‘‘(ii) PAYMENTS TO LESS THAN FULLY SECURED CREDITORS.—In the case of a claim of a creditor against a System institution which is secured by any property or other asset of such System institution, any receiver appointed for any System institution—

‘‘(I) may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim against the System institution; and

‘‘(II) may not make any payment with respect to such unsecured portion of the claim other than in connection with the disposition of all claims of unsecured creditors of the System institution. ‘‘(iii) EXCEPTIONS.—No provision of this paragraph

shall apply with respect to— ‘‘(I) any extension of credit from any Federal

Reserve bank or the United States Treasury to any System institution; or

‘‘(II) any security interest in the assets of the System institution securing any such extension of credit.

‘‘(E) NO JUDICIAL REVIEW OF DETERMINATION PURSUANT TO SUBPARAGRAPH (D).—No court may review the Corpora- tion’s determination pursuant to subparagraph (D) to dis- allow a claim.

‘‘(F) LEGAL EFFECT OF FILING.— ‘‘(i) STATUTE OF LIMITATION TOLLED.—For purposes

of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commence- ment of an action.

‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Subject to paragraph (12) and the determination of claims by a receiver, the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the appointment of the receiver.

‘‘(6) PROVISION FOR JUDICIAL DETERMINATION OF CLAIMS.— ‘‘(A) IN GENERAL.—Before the end of the 60-day period

beginning on the earlier of— ‘‘(i) the end of the period described in paragraph

(5)(A)(i) with respect to any claim against a System institution for which the Corporation is receiver; or

‘‘(ii) the date of any notice of disallowance of such claim pursuant to paragraph (5)(A)(i),

the claimant may request administrative review of the claim in accordance with paragraph (7) or file suit on such claim (or continue an action commenced before the

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132 STAT. 4691PUBLIC LAW 115–334—DEC. 20, 2018

appointment of the receiver) in the district or territorial court of the United States for the district within which the System institution’s principal place of business is located or the United States District Court for the District of Columbia (and such court shall have jurisdiction to hear such claim).

‘‘(B) STATUTE OF LIMITATIONS.—If any claimant fails to file suit on such claim (or continue an action commenced before the appointment of the receiver), before the end of the 60-day period described in subparagraph (A), the claim shall be deemed to be disallowed (other than any portion of such claim which was allowed by the receiver) as of the end of such period, such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim. ‘‘(7) REVIEW OF CLAIMS; ADMINISTRATIVE HEARING.—If any

claimant requests review under this paragraph in lieu of filing or continuing any action under paragraph (6) and the Corpora- tion agrees to such request, the Corporation shall consider the claim after opportunity for a hearing on the record. The final determination of the Corporation with respect to such claim shall be subject to judicial review under chapter 7 of title 5, United States Code.

‘‘(8) EXPEDITED DETERMINATION OF CLAIMS.— ‘‘(A) ESTABLISHMENT REQUIRED.—The Corporation shall

establish a procedure for expedited relief outside of the routine claims process established under paragraph (5) for claimants who—

‘‘(i) allege the existence of legally valid and enforce- able or perfected security interests in assets of any System institution for which the Corporation has been appointed receiver; and

‘‘(ii) allege that irreparable injury will occur if the routine claims procedure is followed. ‘‘(B) DETERMINATION PERIOD.—Before the end of the

90-day period beginning on the date any claim is filed in accordance with the procedures established pursuant to subparagraph (A), the Corporation shall—

‘‘(i) determine— ‘‘(I) whether to allow or disallow such claim;

or ‘‘(II) whether such claim should be determined

pursuant to the procedures established pursuant to paragraph (5); and ‘‘(ii) notify the claimant of the determination, and

if the claim is disallowed, provide a statement of each reason for the disallowance and the procedure for obtaining agency review or judicial determination. ‘‘(C) PERIOD FOR FILING OR RENEWING SUIT.—Any

claimant who files a request for expedited relief shall be permitted to file a suit, or to continue a suit filed before the appointment of the receiver, seeking a determination of the claimant’s rights with respect to such security interest after the earlier of—

‘‘(i) the end of the 90-day period beginning on the date of the filing of a request for expedited relief; or

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132 STAT. 4692 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(ii) the date the Corporation denies the claim. ‘‘(D) STATUTE OF LIMITATIONS.—If an action described

in subparagraph (C) is not filed, or the motion to renew a previously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed in accordance with subparagraph (B), the claim shall be deemed to be disallowed as of the end of such period (other than any portion of such claim which was allowed by the receiver), such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim.

‘‘(E) LEGAL EFFECT OF FILING.— ‘‘(i) STATUTE OF LIMITATION TOLLED.—For purposes

of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commence- ment of an action.

‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Subject to paragraph (12), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the appointment of the receiver.

‘‘(9) AGREEMENT AS BASIS OF CLAIM.— ‘‘(A) REQUIREMENTS.—Except as provided in subpara-

graph (B), any agreement which does not meet the require- ments set forth in section 5.61(d) shall not form the basis of, or substantially comprise, a claim against the receiver or the Corporation.

‘‘(B) EXCEPTION TO CONTEMPORANEOUS EXECUTION REQUIREMENT.—Notwithstanding section 5.61(d), any agreement relating to an extension of credit between a Federal Reserve bank or the United States Treasury and any System institution which was executed before such extension of credit to such System institution shall be treated as having been executed contemporaneously with such extension of credit for purposes of subparagraph (A). ‘‘(10) PAYMENT OF CLAIMS.—

‘‘(A) IN GENERAL.—The receiver may, in the receiver’s discretion and to the extent funds are available from the assets of the System institution, pay creditor claims which are allowed by the receiver, approved by the Corporation pursuant to a final determination pursuant to paragraph (7) or (8), or determined by the final judgment of any court of competent jurisdiction in such manner and amounts as are authorized under this Act.

‘‘(B) LIQUIDATION PAYMENTS.—The receiver may, in the receiver’s sole discretion, pay from the assets of the System institution portions of proved claims at any time, and no liability shall attach to the Corporation (in such Corpora- tion’s corporate capacity or as receiver), by reason of any such payment, for failure to make payments to a claimant whose claim is not proved at the time of any such payment.

‘‘(C) RULEMAKING AUTHORITY OF CORPORATION.—The Corporation may prescribe such rules, including definitions of terms, as it deems appropriate to establish a single uniform interest rate for or to make payments of post insolvency interest to creditors holding proven claims

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132 STAT. 4693PUBLIC LAW 115–334—DEC. 20, 2018

against the receivership estates of System institutions fol- lowing satisfaction by the receiver of the principal amount of all creditor claims. ‘‘(11) PRIORITY OF EXPENSES AND CLAIMS.—

‘‘(A) IN GENERAL.—Amounts realized from the liquida- tion or other resolution of any System institution by any receiver appointed for such System institution shall be distributed to pay claims (other than secured claims to the extent of any such security) in the following order of priority:

‘‘(i) Administrative expenses of the receiver. ‘‘(ii) If authorized by the Corporation, wages, sala-

ries, or commissions, including vacation, severance, and sick leave pay earned by an individual—

‘‘(I) in an amount that is not more than $11,725 for each individual (as indexed for infla- tion, by regulation of the Corporation); and

‘‘(II) that is earned 180 days or fewer before the date of appointment of the Corporation as receiver. ‘‘(iii) In the case of the resolution of a System

bank, all claims of holders of consolidated and System- wide bonds and all claims of the other System banks arising from the payments of the System banks pursu- ant to—

‘‘(I) section 4.4 on consolidated and System- wide bonds issued under subsection (c) or (d) of section 4.2; or

‘‘(II) an agreement, in writing and approved by the Farm Credit Administration, among the System banks to reallocate the payments. ‘‘(iv) In the case of the resolution of a production

credit association or other association making direct loans under section 7.6, all claims of a System bank based on the financing agreement between the associa- tion and the System bank—

‘‘(I) including interest accrued before and after the appointment of the receiver; and

‘‘(II) not including any setoff for stock or other equity of that System bank owned by the associa- tion, on that condition that, prior to making that setoff, that System bank shall obtain the approval of the Farm Credit Administration Board for the retirement of that stock or equity. ‘‘(v) Any general or senior liability of the System

institution (which is not a liability described in clause (vi) or (vii)).

‘‘(vi) Any obligation subordinated to general credi- tors (which is not an obligation described in clause (vii)).

‘‘(vii) Any obligation to stockholders or members arising as a result of their status as stockholders or members. ‘‘(B) PAYMENT OF CLAIMS.—

‘‘(i) IN GENERAL.—

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132 STAT. 4694 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(I) PAYMENT.—All claims of each priority described in clauses (i) through (vii) of subpara- graph (A) shall be paid in full, or provisions shall be made for that payment, prior to the payment of any claim of a lesser priority.

‘‘(II) INSUFFICIENT FUNDS.—If there are insuffi- cient funds to pay in full all claims in any priority described clauses (i) through (vii) of subparagraph (A), distribution on that priority of claims shall be made on a pro rata basis. ‘‘(ii) DISTRIBUTION OF REMAINING ASSETS.—Fol-

lowing the payment of all claims in accordance with subparagraph (A), the receiver shall distribute the remainder of the assets of the System institution to the owners of stock, participation certificates, and other equities in accordance with the priorities for impair- ment under the bylaws of the System institution.

‘‘(iii) ELIGIBLE BORROWER STOCK.—Notwith- standing subparagraph (C) or any other provision of this section, eligible borrower stock shall be retired in accordance with section 4.9A. ‘‘(C) EFFECT OF STATE LAW.—

‘‘(i) IN GENERAL.—The provisions of subparagraph (A) shall not supersede the law of any State except to the extent such law is inconsistent with the provi- sions of such subparagraph, and then only to the extent of the inconsistency.

‘‘(ii) PROCEDURE FOR DETERMINATION OF INCONSIST- ENCY.—Upon the Corporation’s own motion or upon the request of any person with a claim described in subparagraph (A) or any State which is submitted to the Corporation in accordance with procedures which the Corporation shall prescribe, the Corporation shall determine whether any provision of the law of any State is inconsistent with any provision of subpara- graph (A) and the extent of any such inconsistency.

‘‘(iii) JUDICIAL REVIEW.—The final determination of the Corporation under clause (ii) shall be subject to judicial review under chapter 7 of title 5, United States Code. ‘‘(D) ACCOUNTING REPORT.—Any distribution by the

Corporation in connection with any claim described in subparagraph (A)(vii) shall be accompanied by the accounting report required under paragraph (15)(B). ‘‘(12) SUSPENSION OF LEGAL ACTIONS.—

‘‘(A) IN GENERAL.—After the appointment of a conser- vator or receiver for a System institution, the conservator or receiver may request a stay for a period not to exceed—

‘‘(i) 45 days, in the case of any conservator; and ‘‘(ii) 90 days, in the case of any receiver,

in any judicial action or proceeding to which such System institution is or becomes a party.

‘‘(B) GRANT OF STAY BY ALL COURTS REQUIRED.—Upon receipt of a request by any conservator or receiver pursuant to subparagraph (A) for a stay of any judicial action or proceeding in any court with jurisdiction of such action

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132 STAT. 4695PUBLIC LAW 115–334—DEC. 20, 2018

or proceeding, the court shall grant such stay as to all parties. ‘‘(13) ADDITIONAL RIGHTS AND DUTIES.—

‘‘(A) PRIOR FINAL ADJUDICATION.—The Corporation shall abide by any final unappealable judgment of any court of competent jurisdiction which was rendered before the appointment of the Corporation as conservator or receiver.

‘‘(B) RIGHTS AND REMEDIES OF CONSERVATOR OR RECEIVER.—In the event of any appealable judgment, the Corporation as conservator or receiver shall—

‘‘(i) have all the rights and remedies available to the System institution (before the appointment of such conservator or receiver) and the Corporation in its corporate capacity, including removal to Federal court and all appellate rights; and

‘‘(ii) not be required to post any bond in order to pursue such remedies. ‘‘(C) NO ATTACHMENT OR EXECUTION.—No attachment

or execution may issue by any court on— ‘‘(i) assets in the possession of the receiver; or ‘‘(ii) the charter of a System institution for which

the Corporation has been appointed receiver. ‘‘(D) LIMITATION ON JUDICIAL REVIEW.—Except as

otherwise provided in this subsection, no court shall have jurisdiction over—

‘‘(i) any claim or action for payment from, or any action seeking a determination of rights with respect to, the assets of any System institution for which the Corporation has been appointed receiver, including assets which the Corporation may acquire from itself as such receiver; or

‘‘(ii) any claim relating to any act or omission of such System institution or the Corporation as receiver. ‘‘(E) DISPOSITION OF ASSETS.—In exercising any right,

power, privilege, or authority as receiver in connection with any sale or disposition of assets of any System institu- tion for which the Corporation is acting as receiver, the Corporation shall, to the maximum extent practicable, con- duct its operations in a manner which—

‘‘(i) maximizes the net present value return from the sale or disposition of such assets;

‘‘(ii) minimizes the amount of any loss realized in the resolution of cases;

‘‘(iii) ensures adequate competition and fair and consistent treatment of offerors;

‘‘(iv) prohibits discrimination on the basis of race, sex, or ethnic groups in the solicitation and consider- ation of offers; and

‘‘(v) mitigates the potential for serious adverse effects to the rest of the System.

‘‘(14) STATUTE OF LIMITATIONS FOR ACTIONS BROUGHT BY CONSERVATOR OR RECEIVER.—

‘‘(A) IN GENERAL.—Notwithstanding any provision of any contract, the applicable statute of limitations with

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132 STAT. 4696 PUBLIC LAW 115–334—DEC. 20, 2018

regard to any action brought by the Corporation as conser- vator or receiver shall be—

‘‘(i) in the case of any contract claim, the longer of—

‘‘(I) the 6-year period beginning on the date the claim accrues; or

‘‘(II) the period applicable under State law; and ‘‘(ii) in the case of any tort claim, the longer of—

‘‘(I) the 3-year period beginning on the date the claim accrues; or

‘‘(II) the period applicable under State law. ‘‘(B) DETERMINATION OF THE DATE ON WHICH A CLAIM

ACCRUES.—For purposes of subparagraph (A), the date on which the statute of limitations begins to run on any claim described in such subparagraph shall be the later of—

‘‘(i) the date of the appointment of the Corporation as conservator or receiver; or

‘‘(ii) the date on which the cause of action accrues. ‘‘(C) REVIVAL OF EXPIRED STATE CAUSES OF ACTION.—

‘‘(i) IN GENERAL.—In the case of any tort claim described in clause (ii) for which the statute of limita- tion applicable under State law with respect to such claim has expired not more than 5 years before the appointment of the Corporation as conservator or receiver, the Corporation may bring an action as con- servator or receiver on such claim without regard to the expiration of the statute of limitation applicable under State law.

‘‘(ii) CLAIMS DESCRIBED.—A tort claim referred to in clause (i) is a claim arising from fraud, intentional misconduct resulting in unjust enrichment, or inten- tional misconduct resulting in substantial loss to the System institution.

‘‘(15) ACCOUNTING AND RECORDKEEPING REQUIREMENTS.— ‘‘(A) IN GENERAL.—The Corporation as conservator or

receiver shall, consistent with the accounting and reporting practices and procedures established by the Corporation, maintain a full accounting of each conservatorship and receivership or other disposition of System institutions in default.

‘‘(B) ANNUAL ACCOUNTING OR REPORT.—With respect to each conservatorship or receivership to which the Cor- poration was appointed, the Corporation shall make an annual accounting or report, as appropriate, available to the Farm Credit Administration Board.

‘‘(C) AVAILABILITY OF REPORTS.—Any report prepared pursuant to subparagraph (B) shall be made available by the Corporation upon request to any stockholder of the System institution for which the Corporation was appointed conservator or receiver or any other member of the public.

‘‘(D) RECORDKEEPING REQUIREMENT.— ‘‘(i) IN GENERAL.—Except as provided in clause

(ii), after the end of the 6-year period beginning on the date the Corporation is appointed as receiver of a System institution, the Corporation may destroy any

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132 STAT. 4697PUBLIC LAW 115–334—DEC. 20, 2018

records of such System institution which the Corpora- tion, in the Corporation’s discretion, determines to be unnecessary unless directed not to do so by a court of competent jurisdiction or governmental agency, or prohibited by law.

‘‘(ii) OLD RECORDS.—Notwithstanding clause (i), the Corporation may destroy records of a System institution which are at least 10 years old as of the date on which the Corporation is appointed as the receiver of such System institution in accordance with clause (i) at any time after such appointment is final, without regard to the 6-year period of limitation con- tained in clause (i).

‘‘(16) FRAUDULENT TRANSFERS.— ‘‘(A) IN GENERAL.—The Corporation, as conservator or

receiver for any System institution, may avoid a transfer of any interest of a System institution-affiliated party, or any person who the Corporation determines is a debtor of the System institution, in property, or any obligation incurred by such party or person, that was made within 5 years of the date on which the Corporation was appointed conservator or receiver if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder, delay, or defraud the System institution, the Farm Credit Administration, or the Corporation.

‘‘(B) RIGHT OF RECOVERY.—To the extent a transfer is avoided under subparagraph (A), the Corporation may recover, for the benefit of the System institution, the prop- erty transferred, or, if a court so orders, the value of such property (at the time of such transfer) from—

‘‘(i) the initial transferee of such transfer or the System institution-affiliated party or person for whose benefit such transfer was made; or

‘‘(ii) any immediate or mediate transferee of any such initial transferee. ‘‘(C) RIGHTS OF TRANSFEREE OR OBLIGEE.—The Cor-

poration may not recover under subparagraph (B) from— ‘‘(i) any transferee that takes for value, including

satisfaction or securing of a present or antecedent debt, in good faith; or

‘‘(ii) any immediate or mediate good faith trans- feree of such transferee. ‘‘(D) RIGHTS UNDER THIS PARAGRAPH.—The rights under

this paragraph of the Corporation shall be superior to any rights of a trustee or any other party (other than any party which is a Federal agency) under title 11, United States Code. ‘‘(17) ATTACHMENT OF ASSETS AND OTHER INJUNCTIVE

RELIEF.—Subject to paragraph (18), any court of competent jurisdiction may, at the request of the Corporation (in the Corporation’s capacity as conservator or receiver for any System institution or in the Corporation’s corporate capacity with respect to any asset acquired or liability assumed by the Cor- poration under section 5.61), issue an order in accordance with Rule 65 of the Federal Rules of Civil Procedure, including an order placing the assets of any person designated by the

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132 STAT. 4698 PUBLIC LAW 115–334—DEC. 20, 2018

Corporation under the control of the court and appointing a trustee to hold such assets.

‘‘(18) STANDARDS.— ‘‘(A) SHOWING.—Rule 65 of the Federal Rules of Civil

Procedure shall apply with respect to any proceeding under paragraph (17) without regard to the requirement of such rule that the applicant show that the injury, loss, or dam- age is irreparable and immediate.

‘‘(B) STATE PROCEEDING.—If, in the case of any pro- ceeding in a State court, the court determines that rules of civil procedure available under the laws of such State provide substantially similar protections to such party’s right to due process as Rule 65 (as modified with respect to such proceeding by subparagraph (A)), the relief sought by the Corporation pursuant to paragraph (17) may be requested under the laws of such State. ‘‘(19) TREATMENT OF CLAIMS ARISING FROM BREACH OF CON-

TRACTS EXECUTED BY THE RECEIVER OR CONSERVATOR.—Not- withstanding any other provision of this subsection, any final and unappealable judgment for monetary damages entered against a receiver or conservator for a System institution for the breach of an agreement executed or approved by such receiver or conservator after the date of its appointment shall be paid as an administrative expense of the receiver or conser- vator. Nothing in this paragraph shall be construed to limit the power of a receiver or conservator to exercise any rights under contract or law, including terminating, breaching, can- celing, or otherwise discontinuing such agreement. ‘‘(c) PROVISIONS RELATING TO CONTRACTS ENTERED INTO

BEFORE APPOINTMENT OF CONSERVATOR OR RECEIVER.— ‘‘(1) AUTHORITY TO REPUDIATE CONTRACTS.—In addition to

any other rights a conservator or receiver may have, the conser- vator or receiver for a System institution may disaffirm or repudiate any contract or lease—

‘‘(A) to which such System institution is a party; ‘‘(B) the performance of which the conservator or

receiver, in the conservator’s or receiver’s discretion, deter- mines to be burdensome; and

‘‘(C) the disaffirmance or repudiation of which the con- servator or receiver determines, in the conservator’s or receiver’s discretion, will promote the orderly administra- tion of the System institution’s affairs. ‘‘(2) TIMING OF REPUDIATION.—The Corporation as conser-

vator or receiver for any System institution shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment.

‘‘(3) CLAIMS FOR DAMAGES FOR REPUDIATION.— ‘‘(A) IN GENERAL.—Except as otherwise provided in

subparagraph (C) and paragraphs (4), (5), and (6), the liability of the conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be—

‘‘(i) limited to actual direct compensatory damages; and

‘‘(ii) determined as of—

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132 STAT. 4699PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(I) the date of the appointment of the conser- vator or receiver; or

‘‘(II) in the case of any contract or agreement referred to in paragraph (8), the date of the disaffirmance or repudiation of such contract or agreement.

‘‘(B) NO LIABILITY FOR OTHER DAMAGES.—For purposes of subparagraph (A), the term ‘actual direct compensatory damages’ does not include—

‘‘(i) punitive or exemplary damages; ‘‘(ii) damages for lost profits or opportunity; or ‘‘(iii) damages for pain and suffering.

‘‘(C) MEASURE OF DAMAGES FOR REPUDIATION OF FINAN- CIAL CONTRACTS.—In the case of any qualified financial contract or agreement to which paragraph (8) applies, compensatory damages shall be—

‘‘(i) deemed to include normal and reasonable costs of cover or other reasonable measures of damages uti- lized in the industries for such contract and agreement claims; and

‘‘(ii) paid in accordance with this subsection and subsection (j), except as otherwise specifically provided in this section.

‘‘(4) LEASES UNDER WHICH THE SYSTEM INSTITUTION IS THE LESSEE.—

‘‘(A) IN GENERAL.—If the conservator or receiver dis- affirms or repudiates a lease under which the System institution was the lessee, the conservator or receiver shall not be liable for any damages (other than damages deter- mined pursuant to subparagraph (B)) for the disaffirmance or repudiation of such lease.

‘‘(B) PAYMENTS OF RENT.—Notwithstanding subpara- graph (A), the lessor under a lease to which such subpara- graph applies shall—

‘‘(i) be entitled to the contractual rent accruing before the later of the date—

‘‘(I) the notice of disaffirmance or repudiation is mailed; or

‘‘(II) the disaffirmance or repudiation becomes effective, unless the lessor is in default or breach of the terms of the lease; and ‘‘(ii) have no claim for damages under any accelera-

tion clause or other penalty provision in the lease; and

‘‘(iii) have a claim for any unpaid rent, subject to all appropriate offsets and defenses, due as of the date of the appointment, which shall be paid in accord- ance with this subsection and subsection (j).

‘‘(5) LEASES UNDER WHICH THE SYSTEM INSTITUTION IS THE LESSOR.—

‘‘(A) IN GENERAL.—If the conservator or receiver repudi- ates an unexpired written lease of real property of the System institution under which the System institution is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either—

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132 STAT. 4700 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(i) treat the lease as terminated by such repudi- ation; or

‘‘(ii) remain in possession of the leasehold interest for the balance of the term of the lease, unless the lessee defaults under the terms of the lease after the date of such repudiation. ‘‘(B) PROVISIONS APPLICABLE TO LESSEE REMAINING IN

POSSESSION.—If any lessee under a lease described in subparagraph (A) remains in possession of a leasehold interest pursuant to clause (ii) of such subparagraph—

‘‘(i) the lessee— ‘‘(I) shall continue to pay the contractual rent

pursuant to the terms of the lease after the date of the repudiation of such lease; and

‘‘(II) may offset against any rent payment which accrues after the date of the repudiation of the lease, any damages which accrue after such date due to the nonperformance of any obligation of the System institution under the lease after such date; and ‘‘(ii) the conservator or receiver shall not be liable

to the lessee for any damages arising after such date as a result of the repudiation, other than the amount of any offset allowed under clause (i)(II).

‘‘(6) CONTRACTS FOR THE SALE OF REAL PROPERTY.— ‘‘(A) IN GENERAL.—If the conservator or receiver repudi-

ates any contract that meets the requirements of para- graphs (1) through (4) of section 5.61(d) for the sale of real property, and the purchaser of such real property under such contract is in possession and is not, as of the date of such repudiation, in default, such purchaser may either—

‘‘(i) treat the contract as terminated by such repudiation; or

‘‘(ii) remain in possession of such real property. ‘‘(B) PROVISIONS APPLICABLE TO PURCHASER REMAINING

IN POSSESSION.—If any purchaser of real property under any contract described in subparagraph (A) remains in possession of such property pursuant to clause (ii) of such subparagraph—

‘‘(i) the purchaser— ‘‘(I) shall continue to make all payments due

under the contract after the date of the repudiation of the contract; and

‘‘(II) may offset against any such payments any damages which accrue after such date due to the nonperformance (after such date) of any obligation of the System institution under the con- tract; and ‘‘(ii) the conservator or receiver shall—

‘‘(I) not be liable to the purchaser for any damages arising after that date as a result of the repudiation, other than the amount of any offset allowed under clause (i)(II);

‘‘(II) deliver title to the purchaser in accord- ance with the contract; and

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132 STAT. 4701PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(III) have no obligation under the contract, other than the performance required under sub- clause (II).

‘‘(C) ASSIGNMENT AND SALE ALLOWED.— ‘‘(i) IN GENERAL.—No provision of this paragraph

shall be construed as limiting the right of the conser- vator or receiver to assign the contract described in subparagraph (A) and sell the property subject to the contract and this paragraph.

‘‘(ii) NO LIABILITY AFTER ASSIGNMENT AND SALE.— If an assignment and sale described in clause (i) is consummated, the Corporation, acting as conservator or receiver, shall have no further liability under the applicable contract described in subparagraph (A) or with respect to the real property which was the subject of such contract.

‘‘(7) PROVISIONS APPLICABLE TO SERVICE CONTRACTS.— ‘‘(A) SERVICES PERFORMED BEFORE APPOINTMENT.—In

the case of any contract for services between any person and any System institution for which the Corporation has been appointed conservator or receiver, any claim of such person for services performed before the appointment of the conservator or the receiver shall be—

‘‘(i) a claim to be paid in accordance with sub- sections (b) and (d); and

‘‘(ii) deemed to have arisen as of the date the conservator or receiver was appointed. ‘‘(B) SERVICES PERFORMED AFTER APPOINTMENT AND

PRIOR TO REPUDIATION.—If, in the case of any contract for services described in subparagraph (A), the conservator or receiver accepts performance by the other person before the conservator or receiver makes any determination to exercise the right of repudiation of such contract under this section—

‘‘(i) the other party shall be paid under the terms of the contract for the services performed; and

‘‘(ii) the amount of such payment shall be treated as an administrative expense of the conservatorship or receivership. ‘‘(C) ACCEPTANCE OF PERFORMANCE NO BAR TO SUBSE-

QUENT REPUDIATION.—The acceptance by any conservator or receiver of services referred to in subparagraph (B) in connection with a contract described in such subpara- graph shall not affect the right of the conservator or receiver, to repudiate such contract under this section at any time after such performance. ‘‘(8) CERTAIN QUALIFIED FINANCIAL CONTRACTS.—

‘‘(A) DEFINITIONS.—In this paragraph: ‘‘(i) COMMODITY CONTRACT.—The term ‘commodity

contract’ means— ‘‘(I) with respect to a futures commission mer-

chant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;

‘‘(II) with respect to a foreign futures commis- sion merchant, a foreign future;

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132 STAT. 4702 PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(III) with respect to a leverage transaction merchant, a leverage transaction;

‘‘(IV) with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;

‘‘(V) with respect to a commodity options dealer, a commodity option;

‘‘(VI) any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;

‘‘(VII) any combination of the agreements or transactions referred to in this clause;

‘‘(VIII) any option to enter into any agreement or transaction referred to in this clause;

‘‘(IX) a master agreement that provides for an agreement or transaction referred to in any of subclauses (I) through (VIII), together with all supplements to any such master agreement, with- out regard to whether the master agreement pro- vides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or

‘‘(X) any security agreement or arrangement or other credit enhancement related to any agree- ment or transaction referred to in this clause, including any guarantee or reimbursement obliga- tion in connection with any agreement or trans- action referred to in this clause. ‘‘(ii) FORWARD CONTRACT.—The term ‘forward con-

tract’ means— ‘‘(I) a contract (other than a commodity con-

tract) for the purchase, sale, or transfer of a com- modity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward con- tract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date the contract is entered into, including a repurchase or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a repurchase agreement), consignment, lease, swap, hedge transaction, deposit, loan, option, allo- cated transaction, unallocated transaction, or any other similar agreement;

‘‘(II) any combination of agreements or trans- actions referred to in subclauses (I) and (III);

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132 STAT. 4703PUBLIC LAW 115–334—DEC. 20, 2018

‘‘(III) any option to enter into any agreement or transaction referred to in subclause (I) or (II);

‘‘(IV) a master agreement that provides for an agreement or transaction referred to in sub- clauses (I) through (III), together with all supple- ments to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a for- ward contract under this clause, except that the master agreement shall be considered to be a for- ward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or

‘‘(V) any security agreement or arrangement or other credit enhancement related to any agree- ment or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause. ‘‘(iii) PERSON.—The term ‘person’—

‘‘(I) has the meaning given the term in section 1 of title 1, United States Code; and

‘‘(II) includes any governmental entity. ‘‘(iv) QUALIFIED FINANCIAL CONTRACT.—The term

‘qualified financial contract’ means any securities con- tract, commodity contract, forward contract, repurchase agreement, swap agreement, and any similar agree- ment that the Corporation determines by regulation, resolution, or order to be a qualified financial contract for purposes of this paragraph.

‘‘(v) REPURCHASE AGREEMENT.— ‘‘(I) IN GENERAL.—The term ‘repurchase agree-

ment’ (including with respect to a reverse repurchase agreement)—

‘‘(aa) means— ‘‘(AA) an agreement, including related

terms, which provides for the transfer of one or more certificates of deposit, mort- gage-related securities (as such term is defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))), mortgage loans, interests in mortgage- related securities or mortgage loans, eligible bankers’ acceptances, qualified foreign government securities or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances,

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132 STAT. 4704 PUBLIC LAW 115–334—DEC. 20, 2018

securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement;

‘‘(BB) any combination of agreements or transactions referred to in subitems (AA) and (CC);

‘‘(CC) any option to enter into any agreement or transaction referred to in subitem (AA) or (BB);

‘‘(DD) a master agreement that pro- vides for an agreement or transaction referred to in subitem (AA), (BB), or (CC), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this item, except that the master agreement shall be considered to be a repurchase agreement under this item only with respect to each agreement or transaction under the master agreement that is referred to in subitem (AA), (BB), or (CC); and

‘‘(EE) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in any of subitems (AA) through (DD), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subitem; and ‘‘(bb) does not include any repurchase

obligation under a participation in a commer- cial mortgage, loan unless the Corporation determines by regulation, resolution, or order to include any such participation within the meaning of such term. ‘‘(II) RELATED DEFINITION.—For purposes of

subclause (I)(aa), the term ‘qualified foreign government security’ means a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the Organization for Economic Cooperation and Development (as determined by regulation or order adopted by the appropriate Federal banking authority). ‘‘(vi) SECURITIES CONTRACT.—The term ‘securities

contract’— ‘‘(I) means—

‘‘(aa) a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests

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132 STAT. 4705PUBLIC LAW 115–334—DEC. 20, 2018

therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option (whether or not the repurchase or reverse repurchase transaction is a repurchase agreement);

‘‘(bb) any option entered into on a national securities exchange relating to foreign cur- rencies;

‘‘(cc) the guarantee (including by novation) by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option (whether or not the settlement is in connection with any agreement or transaction referred to in any of items (aa), (bb), and (dd) through (kk));

‘‘(dd) any margin loan; ‘‘(ee) any extension of credit for the clear-

ance or settlement of securities transactions; ‘‘(ff) any loan transaction coupled with a

securities collar transaction, any prepaid secu- rities forward transaction, or any total return swap transaction coupled with a securities sale transaction;

‘‘(gg) any other agreement or transaction that is similar to any agreement or transaction referred to in this subclause;

‘‘(hh) any combination of the agreements or transactions referred to in this subclause;

‘‘(ii) any option to enter into any agree- ment or transaction referred to in this sub- clause;

‘‘(jj) a master agreement that provides for an agreement or transaction referred to in any of items (aa) through (ii), together with all supplements to any such master agree- ment, without regard to whether the master agreement provides for an agreement or trans- action that is not a securities contract under this subclause, except that the master agree- ment shall be considered to be a securities contract under this subclause only with respect to each agreement or transaction under the master agreement that is referred

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132 STAT. 4706 PUBLIC LAW 115–334—DEC. 20, 2018

to in item (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), or (ii); and

‘‘(kk) any security agreement or arrange- ment or other credit enhancement related to any agreement or transaction referred to in this subclause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this subclause; and ‘‘(II) does not include any purchase, sale, or

repurchase obligation under a participation in a commercial mortgage loan unless the Corporation determines by regulation, resolution, or order to include any such agreement within the meaning of such term. ‘‘(vii) SWAP AGREEMENT.—The term ‘swap agree-

ment’ means— ‘‘(I) any agreement, including the terms and

conditions incorporated by reference in any such agreement, that is—

‘‘(aa) an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap;

‘‘(bb) a spot, same day-tomorrow, tomor- row-next, forward, or other foreign exchange precious metals or other commodity agree- ment;

‘‘(cc) a currency swap, option, future, or forward agreement;

‘‘(dd) an equity index or equity swap, option, future, or forward agreement;

‘‘(ee) a debt index or debt swap, option, future, or forward agreement;

‘‘(ff) a total return, credit spread or credit swap, option, future, or forward agreement;

‘‘(gg) a commodity index or commodity swap, option, future, or forward agreement;

‘‘(hh) a weather swap, option, future, or forward agreement;

‘‘(ii) an emissions swap, option, future, or forward agreement; or

‘‘(jj) an inflation swap, option, future, or forward agreement; ‘‘(II) any agreement or transaction that is

similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap or other derivatives markets (including terms and conditions incorporated by reference in such agreement) and that is a forward, swap, future, option or spot transaction on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, quantitative measures associated with an occurrence, extent of an occurrence, or

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132 STAT. 4707PUBLIC LAW 115–334—DEC. 20, 2018

contingency associated with a financial, commer- cial, or economic consequence, or economic or financial indices or measures of economic or finan- cial risk or value;

‘‘(III) any combination of agreements or trans- actions referred to in this clause;

‘‘(IV) any option to enter into any agreement or transaction referred to in this clause;

‘‘(V) a master agreement that provides for an agreement or transaction referred to in any of subclauses (I) through (IV), together with all supplements to any such master agreement, with- out regard to whether the master agreement con- tains an agreement or transaction that is not a swap agreement under this clause, except that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the master agreement that is referred to in sub- clause (I), (II), (III), or (IV); and

‘‘(VI) any security agreement or arrangement or other credit enhancement related to any agree- ments or transactions referred to in any of sub- clauses (I) through (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause. ‘‘(viii) TRANSFER.—The term ‘transfer’ means every

mode, direct or indirect, absolute or conditional, vol- untary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest and foreclosure of the equity of redemption of a System institution.

‘‘(ix) TREATMENT OF MASTER AGREEMENT AS 1 AGREEMENT.—For purposes of this subparagraph—

‘‘(I) any master agreement for any contract or agreement described in this subparagraph (or any master agreement for such a master agree- ment or agreements), together with all supple- ments to the master agreement, shall be treated as a single agreement and a single qualified finan- cial contact; and

‘‘(II) if a master agreement contains provisions relating to agreements or transactions that are not qualified financial contracts, the master agree- ment shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts.

‘‘(B) RIGHTS OF PARTIES TO CONTRACTS.—Subject to paragraphs (9) and (10), and notwithstanding any other provision of this Act (other than subsection (b)(9) and sec- tion 5.61(d)) or any other Federal or State law, no person shall be stayed or prohibited from exercising—

‘‘(i) any right such person has to cause the termi- nation, liquidation, or acceleration of any qualified financial contract with a System institution which arises upon the appointment of the Corporation as

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