12 2 STA T . 1 738PUBLIC LA W 11 0– 2 46—J U NE 18 , 2008 bed e t e rmin edt ohav emetthere qu irement s o f subse c tion ( b ) ( 2 )( A )(i)( I I) .‘ ‘(d) CLAS S E S NOT A C T IV EL YENG AGE D . — ‘‘( 1 ) CAS HR ENT LANDLORD.—A l andlord contributin g land to a farming o p eration shall not be considered to be activel y engaged in farming w ith respect to the farming operation if the landlord receives cash rent , or a crop share guaranteed as to the amount of the commodity to be paid in rent, for the use of the land. ‘‘(2) O THER P ERSONS AND LEGAL ENTITIES.—Any other per - son or legal entity that the S ecretary determines does not meet the standards described in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation. ’ ’. (e) D ENIAL O FP ROGRA MB ENEFITS.—Section 1 0 01B of the F ood Security Act of 1 985 ( 7U .S.C. 1 3 08 – 2) is amended to read as follows
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‘ SEC.10 01 B . D E NIALOFPR O G RA M BENEFI T S. ‘‘(a) 2- Y EAR DENIAL OF PROGRAM BENEFITS.—A person or legal entity shall be ineligible to receive payments specified in subsections (b) and (c) of section 1001 for the crop year, and the succeeding crop year, in which the Secretary determines that the person or legal entity— ‘‘(1) failed to comply with section 1001A(b) and adopted or participated in adopting a scheme or device to evade the application of section 1001, 1001A, or 1001C
or ‘‘(2) intentionally concealed the interest of the person or legal entity in any farm or legal entity engaged in farming. ‘‘(b) E X TENDED INELIGI B ILITY.—If the Secretary determines that a person or legal entity, for the benefit of the person or legal entity or the benefit of any other person or legal entity, has k now- ingly engaged in, or aided in the creation of a fraudulent document, failed to disclose material information relevant to the administra- tion of sections 1001 through 1001F, or committed other equally serious actions (as identified in regulations issued by the Secretary), the Secretary may for a period not to e x ceed 5 crop years deny the issuance of payments to the person or legal entity. ‘‘(c) PRO R ATA DENIAL.— ‘‘(1) IN GENERAL.—Payments otherwise owed to a person or legal entity described in subsections (a) or (b) shall be denied in a pro rata manner based on the ownership interest of the person or legal entity in a farm. ‘‘(2) CASH RENT TENANT.—Payments otherwise payable to a person or legal entity shall be denied in a pro rata manner if the person or legal entity is a cash rent tenant on a farm owned or under the control of a person or legal entity with respect to which a determination has been made under sub- section (a) or (b). ‘‘(d) J OINT AND SEVERAL L IABILITY.—Any legal entity (including partnerships and j oint ventures) and any member of any legal entity determined to have knowingly participated in a scheme or device to evade, or that has the purpose of evading, sections 1001, 1001A, or 1001C shall be jointly and severally liable for any amounts that are payable to the Secretary as the result of the scheme or device (including amounts necessary to recover those amounts). Fraud.Reg u l a tions .
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