SALE OF PROPERTY.

SEC. 638. SALE OF PROPERTY. Section 335 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985) is amended— 110 STAT. 1094 (1) in subsection (b), by striking “subsection (e)” and inserting “subsections (c) and (e)”; (2) by striking subsection (c) and inserting the following: “(c) Sale of Property.— “(1) In general.— Subject to this subsection and subsection (e)(1)(A), the Secretary shall offer to sell real property that is acquired by the Secretary under this title using the following order and method of sale: “(A) Advertisement.— Not later than 15 days after acquiring real property, the Secretary shall publicly advertise the property for sale. “(B) Beginning farmer or rancher.— “(i) In general.— Not later than 75 days after acquiring real property, the Secretary shall offer to sell the property to a qualified beginning farmer or rancher at current market value based on a current appraisal. “(ii) Random selection.— If more than 1 qualified beginning farmer or rancher offers to purchase the property, the Secretary shall select between the qualified applicants on a random basis. “(iii) Appeal of random selection.— A random selection or denial by the Secretary of a beginning farmer or rancher for farm inventory property under this subparagraph shall be final and not administratively appealable. “(C) Public sale.— If no acceptable offer is received from a qualified beginning farmer or rancher under subparagraph (B) not later than 75 days after acquiring the real property, the Secretary shall, not later than 30 days after the 75-day period, sell the property after public notice at a public sale, and, if no acceptable bid is received, by negotiated sale, at the best price obtainable. “(2) Transitional rules.— “(A) Previous lease.— In the case of real property acquired prior to the date of enactment of this subparagraph that the Secretary leased prior to the date of enactment of this subparagraph, not later than 60 days after the lease expires, the Secretary shall offer to sell the property in accordance with paragraph (1). “(B) Previously in inventory.— In the case of real property acquired prior to the date of enactment of this subparagraph that the Secretary has not leased, not later than 60 days after the date of enactment of this subparagraph, the Secretary shall offer to sell the property in accordance with paragraph (1). “(3) Interest.— “(A) In general.— Subject to subparagraph (B), any conveyance of real property under this subsection shall include all of the interest of the United States in the property, including mineral rights. “(B) Conservation.— The Secretary may for conservation purposes grant or sell an easement, restriction, development right, or similar legal right to real property to a State, a political subdivision of a State, or a private nonprofit organization separately from the underlying fee or other rights to the property owned by the United States. 110 STAT. 1095 “(4) Other law.— The Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) shall not apply to any exercise of authority under this title. “(5) Lease of property.— “(A) In general.— Subject to subparagraph (B), the Secretary may not lease any real property acquired under this title. “(B) Exception.— “(i) Beginning farmer or rancher.— The Secretary may lease or contract to sell to a beginning farmer or rancher a farm or ranch acquired by the Secretary under this title if the beginning farmer or rancher qualifies for a credit sale or direct farm ownership loan under subtitle A but credit sale authority for loans or direct farm ownership loan funds, respectively, are not available. “(ii) Term.— The term of a lease or contract to sell to a beginning farmer or rancher under clause (i) shall be until the earlier of— “(I) the date that is 18 months after the date of the lease or sale; or “(II) the date that direct farm ownership loan funds or credit sale authority for loans becomes available to the beginning farmer or rancher. “(iii) Income-producing capability.— In determining the rental rate on real property leased under this subparagraph, the Secretary shall consider the income-producing capability of the property during the term that the property is leased. “(6) Expedited determination.— “(A) In general.— On the request of an applicant, not later than 30 days after denial of the applicant’s application, the appropriate State director shall provide an expedited review and determination of whether the applicant is a beginning farmer or rancher for the purpose of acquiring farm inventory property. “(B) Appeal.— The determination of a State Director under subparagraph (A) shall be final and not administratively appealable. “(C) Effects of determinations.— “(i) In general.— The Secretary shall maintain Records, statistical data on the number and results of determinations made under subparagraph (A) and the effect of the determinations on— “(I) selling farm inventory property to beginning farmers and ranchers; and “(II) disposing of real property in inventory. “(ii) Notification.— The Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate if the Secretary determines that the review process under subparagraph (A) is adversely affecting the selling of farm inventory property to beginning farmers or ranchers or the disposing of real property in inventory”; and (3) in subsection (e)— (A) in paragraph (1)— 110 STAT. 1096 (i) by striking subparagraphs (A) through (C); (ii) by redesignating subparagraphs (D) through (G) as subparagraphs (A) through CD), respectively; (iii) in subparagraph (A) (as redesignated by clause (ii))— (I) in clause (i)— (aa) in the matter preceding subclause (I), by striking “(G)” and inserting “(D)”; (bb) by striking subclause (I) and inserting the following: “(I) the Secretary acquires property under this title that is located within an Indian reservation; and”; (cc) in subclause (II), by striking “, and” at the end and inserting a semicolon; and (dd) by striking subclause (III); and (II) in clause (iii), by striking “The Secretary shall” and all that follows through “of subparagraph (A),” and inserting “Not later than 90 days after acquiring the property, the Secretary shall”; and (iv) in subparagraph (D) (as redesignated by clause (ii))— (I) in clause (i), by striking “(D)” in the matter following subclause (IV) and inserting “(A)”; (II) in clause (iii)(I), by striking “subparagraphs (C)(i), (C)(ii), and (D)” and inserting “subparagraph (A)”; and (III) by striking clause (v) and inserting the following: “(v) Foreclosure procedures.— “(I) Notice to borrower.— If an Indian borrower-owner does not voluntarily convey to the Secretary real property described in clause (i), not less than 30 days before a foreclosure sale of the property, the Secretary shall provide the Indian borrower-owner with the option of— “(aa) requiring the Secretary to assign the loan and security instruments to the Secretary of the Interior, if the Secretary of the Interior agrees to an assignment releasing the Secretary of Agriculture from all further responsibility for collection of any amounts with regard to the loan secured by the real property; or “(bb) requiring the Secretary to assign the loan and security instruments to the tribe having jurisdiction over the reservation in which the real property is located, if the tribe agrees to the assignment. “(II) Notice to tribe.— If an Indian borrowerowner does not voluntarily convey to the Secretary real property described in clause (i), not less than 30 days before a foreclosure sale of the property, the Secretary shall provide written notice to the Indian tribe that has jurisdiction over the reservation in which the real property is located of— “(aa) the sale; 110 STAT. 1097 “(bb) the fair market value of the property; and “(cc) the requirements of this subparagraph. “(III) Assumed loans.— If an Indian tribe assumes a loan under subclause (I)— “(aa) the Secretary shall not foreclose the loan because of any default that occurred prior to the date of the assumption; “(bb) the loan shall be for the lesser of the outstanding principal and interest of the loan or the fair market value of the property; and “(cc) the loan shall be treated as though the loan was made under Public Law 91–229 (25 U.S.C. 488 et seq.).”; (B) by striking paragraph (3); (C) in paragraph (4)— (i) by striking subparagraph (B); (ii) in subparagraph (A)— (I) in clause (i), by striking “(i)”; and (II) by redesignating clause (ii) as subparagraph (B); and (iii) in subparagraph (B) (as redesignated by clause (ii)(II)), by striking “clause (i)” and inserting “subparagraph (A)”; (D) by striking paragraphs (5), (6), and (9); and (E) by redesignating paragraphs (4), (7), (8), and (10) as paragraphs (3), (4), (5), and (6), respectively.