Subtitle A--Amendments to the Food, Agriculture, Conservation,
and Trade
Act of 1990
Chapter 1--General Provisions
Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services
in rural areas.
Sec. 705. Limitation on authorization of appropriations
for rural
technology
grants.
Sec. 706. Demonstration projects.
Sec. 707. Monitoring the economic progress of rural
America.
Sec. 708. Analysis by Office of Technology Assessment.
Sec. 709. Rural health infrastructure improvement.
Sec. 710. Census of agriculture.
Sec. 711. Study of the transportation of fertilizer
and agricultural
chemicals
to farmers.
Chapter 2--Alternative Agricultural Research and Commercialization
Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and
Commercialization
Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts,
and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision
of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and
Commercialization
Revolving
Fund.
Sec. 729. Procurement preferences for products receiving
Corporation
assistance.
Sec. 730. Business plan and feasibility study and
report.
Subtitle B--Amendments to the Consolidated Farm and Rural Development Act
Chapter 1--General Provisions
Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant
program for small
communities.
Sec. 743. Emergency community water assistance grant
program for
smallest
communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation
and development
loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain
purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development
programs.
Sec. 754. State rural economic development review
panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee
authority.
Sec. 757. Water systems for rural and Native villages
in Alaska.
Sec. 758. Application requirements relating to water
and waste disposal
loan and
grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting
systems.
Chapter 2--Rural Community Advancement Program
Sec. 761. Rural community advancement program.
Sec. 762. Simplified, uniform application for assistance
from all
Federal
rural development programs.
Sec. 763. Community facilities grant program.
Subtitle C--Amendments to the Rural Electrification Act of 1936
Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission
lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration
created by Executive
order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste
facility services
to electric
customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural Business Incubator Fund.
Subtitle D--Miscellaneous Rural Development Provisions
Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers,
dislocated farmers,
and rural
families.
Sec. 793. Fund for Rural America.
Sec. 794. Under Secretary of Agriculture for Rural
Economic and
Community
Development renamed the Under Secretary of
Agriculture
for Rural Development.
TITLE VII--RURAL DEVELOPMENT
Subtitle A--Amendments to the Food, Agriculture,
Conservation, and Trade
Act of 1990
CHAPTER 1--GENERAL PROVISIONS
SEC. 701. RURAL INVESTMENT PARTNERSHIPS.
Subtitle B of title XXIII of the Food, Agriculture,
Conservation,
and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is repealed.
SEC. 702. WATER AND WASTE FACILITY FINANCING.
Section 2322 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 1926-1) is repealed.
SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.
Section 2324 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is repealed.
SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.
Chapter 1 of subtitle D of title XXIII of the Food,
Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.) is amended
to read as follows:
``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS
``SEC. 2331. <<NOTE: 7 USC 950aaa.>> PURPOSE.
``The purpose of this chapter is to encourage and
improve
telemedicine services and distance learning services in rural areas
through the use of telecommunications, computer networks, and related
advanced technologies by students, teachers, medical professionals,
and
rural residents.
<<NOTE: 7 USC 950aaa-1.>> ``SEC. 2332. DEFINITIONS.
``In this chapter:
``(1) Construct.--The term `construct' means to construct,
acquire, install, improve,
or extend a facility or system.
``(2) Cost of money loan.--The term `cost of money loan'
means a loan made under
this chapter bearing interest at a rate
equal to the then current
cost to the Federal Government of
loans of similar maturity.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 2333. <<NOTE: 7 USC 950aaa-2.>> TELEMEDICINE AND
DISTANCE
LEARNING SERVICES IN RURAL AREAS.
``(a) Services to Rural Areas.--The Secretary may
provide financial
assistance for the purpose of financing the construction of facilities
and systems to provide telemedicine services and distance learning
services in rural areas.
``(b) Financial Assistance.--
``(1) In general.--Financial assistance shall consist of
grants or cost of money
loans, or both.
``(2) Form.--The Secretary shall determine the portion of
the financial assistance
provided to a recipient that consists
of grants and the portion
that consists of cost of money loans
so as to result in the maximum
feasible repayment to the Federal
Government of the financial
assistance, based on the ability to
repay of the recipient and
full utilization of funds made
available to carry out this
chapter.
``(c) Recipients.--
``(1) In general.--The Secretary may provide financial
assistance under this chapter
to--
``(A) entities using telemedicine services or
distance learning services; and
``(B) entities providing or proposing to provide
telemedicine service or distance learning service to
other persons at rates calculated to ensure that the
benefit of the financial assistance is passed through to
the other persons.
``(2) Electric or telecommunications borrowers.--
``(A) Loans to borrowers.--Subject to subparagraph
(B), the Secretary may provide a cost of money loan
under this chapter to a borrower of an electric or
telecommunications loan under the Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.). A borrower receiving
a cost of money loan under this paragraph shall--
``(i) make the funds provided available to
entities that qualify under paragraph (1) for
projects satisfying the requirements of this
chapter;
``(ii) use the funds provided to acquire,
install, improve, or extend a system referred to
in subsection (a); or
``(iii) use the funds provided to install,
improve, or extend a facility referred to in
subsection (a).
``(B) Limitations.--A borrower of an electric or
telecommunications loan under the Rural Electrification
Act of 1936 shall--
``(i) make a system or facility funded under
subparagraph (A) available to entities that
qualify under paragraph (1); and
``(ii) neither retain from the proceeds of a
loan provided under subparagraph (A), nor assess a
qualifying entity under paragraph (1), any amount
except as may be required to pay the actual costs
incurred in administering the loan or making the
system or facility available.
``(3) Appeal.--If the Secretary rejects the application of a
borrower who applies for
a cost of money loan or grant under
this section, the borrower
may appeal the decision to the
Secretary not later than
10 days after the borrower is notified
of the rejection.
``(4) Assistance to provide or improve services.--Financial
assistance may be provided
under this chapter for a facility
regardless of the location
of the facility if the Secretary
determines that the assistance
is necessary to provide or
improve telemedicine services
or distance learning services in a
rural area.
``(d) Priority.--The Secretary shall establish procedures
to
prioritize financial assistance under this chapter considering--
``(1) the need for the assistance in the affected rural
area;
``(2) the financial need of the applicant;
``(3) the population sparsity of the affected rural area;
``(4) the local involvement in the project serving the
affected rural area;
``(5) geographic diversity among the recipients of financial
assistance;
``(6) the utilization of the telecommunications facilities
of any telecommunications
provider serving the affected rural
area;
``(7) the portion of total project financing provided by the
applicant from the funds
of the applicant;
``(8) the portion of project financing provided by the
applicant with funds obtained
from non-Federal sources;
``(9) the joint utilization of facilities financed by other
financial assistance;
``(10) the coordination of the proposed project with
regional projects or networks;
``(11) service to the greatest practical number of persons
within the general geographic
area covered by the financial
assistance;
``(12) conformity with the State strategic plan as prepared
under section 381D of the
Consolidated Farm and Rural
Development Act; and
``(13) other factors determined appropriate by the
Secretary.
``(e) <<NOTE: Federal Register, publication.>>
Maximum Amount of
Assistance to Individual Recipients.--The Secretary may establish the
maximum amount of financial assistance to be made available to an
individual recipient for each fiscal year under this chapter, by
publishing notice of the maximum amount in the Federal Register not
more
than 45 days after funds are made available for the fiscal year to
carry
out this chapter.
``(f) Use of Funds.--Financial assistance provided
under this
chapter shall be used for--
``(1) the development and acquisition of instructional
programming;
``(2) the development and acquisition, through lease or
purchase, of computer hardware
and software, audio and visual
equipment, computer network
components, telecommunications
terminal equipment, telecommunications
transmission facilities,
data terminal equipment,
or interactive video equipment, or
other facilities that would
further telemedicine services or
distance learning services;
``(3) providing technical assistance and instruction for the
development or use of the
programming, equipment, or facilities
referred to in paragraphs
(1) and (2); or
``(4) other uses that are consistent with this chapter, as
determined by the Secretary.
``(g) Salaries and Expenses.--Notwithstanding subsection
(f),
financial assistance provided under this chapter shall not be used
for
paying salaries or administrative expenses.
``(h) Expediting Coordinated Telephone Loans.--
``(1) In general.--The Secretary may establish and carry out
procedures to ensure that
expedited consideration and
determination is given to
applications for loans and advances of
funds submitted by local
exchange carriers under this chapter
and the Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.)
to enable the exchange carriers
to provide advanced
telecommunications services
in rural areas in conjunction with
any other projects carried
out under this chapter.
``(2) Deadline imposed on
secretary. <<NOTE:
Notification.>> --Not later than 45 days
after the receipt of a completed
application for an expedited
telephone loan under paragraph
(1), the Secretary shall notify
the applicant in writing
of the decision of the Secretary
regarding the application.
``(i) Notification of Local Exchange Carrier.--
``(1) Applicants.--Each applicant for a grant for a
telemedicine or distance
learning project established under this
chapter shall notify the
appropriate local telephone exchange
carrier regarding the application
filed with the Secretary for
the grant.
``(2) Secretary.--The Secretary shall--
``(A) publish notice of applications received for
grants under this chapter for telemedicine or distance
learning projects; and
``(B) make the applications available for
inspection.
``SEC. 2334. <<NOTE: 7 USC 950aaa-3.>> ADMINISTRATION.
``(a) Nonduplication.--The Secretary shall ensure
that facilities
constructed using financial assistance provided under this chapter
do
not duplicate adequate established telemedicine services or distance
learning services.
``(b) Loan Maturity.--The maturities of cost of
money loans shall be
determined by the Secretary, based on the useful life of the facility
being financed, except that the loan shall not be for a period of more
than 10 years.
``(c) Loan Security and Feasibility.--The Secretary
shall make a
cost of money loan only if the Secretary determines that the security
for the loan is reasonably adequate and that the loan will be repaid
within the period of the loan.
``(d) Encouraging Consortia.--The Secretary shall
encourage the
development of consortia to provide telemedicine services or distance
learning services through telecommunications in rural areas served
by a
telecommunications provider.
``(e) Coordination With Other Agencies.--The Secretary
shall
coordinate, to the extent practicable, with other Federal and State
agencies with similar grant or loan programs to pool resources for
funding meritorious proposals in rural areas.
``(f) Informational Efforts.--The Secretary shall
establish and
implement procedures to carry out informational efforts to advise
potential end users located in rural areas of each State about the
program authorized by this chapter.
``SEC. 2335. <<NOTE: 7 USC 950aaa-4.>> REGULATIONS.
``Not later than 180 days after the date of enactment
of the Federal
Agriculture Improvement and Reform Act of 1996, the Secretary shall
issue regulations to carry out this chapter.
``SEC. 2335A. <<NOTE: 7 USC 950aaa-5.>> AUTHORIZATION OF
APPROPRIATIONS.
``There are authorized to be appropriated to carry
out this chapter
$100,000,000 for each of fiscal years 1996 through 2002.''.
SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS
FOR RURAL
TECHNOLOGY GRANTS.
Section 2347 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4034) is amended--
(1) <<NOTE: 7 USC 1932.>> by striking ``(a) In General.--
''; and
(2) by striking subsection (b).
SEC. 706. DEMONSTRATION PROJECTS.
Section 2348 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 2662a) is repealed.
SEC. 707. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.
Section 2382 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is repealed.
SEC. 708. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.
Section 2385 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) is repealed.
SEC. 709. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.
Section 2391 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is repealed.
SEC. 710. CENSUS OF AGRICULTURE.
Section 2392 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4057) <<NOTE: 13 USC 142
note.>>
is repealed.
SEC. 711. <<NOTE: 15 USC 714 note.>> STUDY
OF THE TRANSPORTATION OF
FERTILIZER AND AGRICULTURAL CHEMICALS TO FARMERS.
Section 2517 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4077) is repealed.
CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
Section 1657(c) of the Food, Agriculture, Conservation,
and Trade
Act of 1990 (7 U.S.C. 5901(c)) is amended--
(1) by striking paragraphs (3) and (4);
(2) by redesignating paragraph (5) as paragraph (3);
(3) by redesignating paragraphs (6) through (12) as
paragraphs (7) through (13),
respectively; and
(4) by inserting after paragraph (3) (as redesignated by
paragraph (2)) the following:
``(4) Corporate board.--The term `Corporate Board' means the
Board of Directors of the
Corporation described in section 1659.
``(5) Corporation.--The term `Corporation' means the
Alternative Agricultural
Research and Commercialization
Corporation established
under section 1658.
``(6) Executive director.--The term `Executive Director'
means the Executive Director
of the Corporation appointed under
section 1659(e).''.
SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
(a) In General.--Section 1658 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read
as follows:
``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
``(a) Establishment.--To carry out this subtitle,
there is created a
body corporate to be known as the Alternative Agricultural Research
and
Commercialization Corporation, which shall be an agency of the United
States, within the Department of Agriculture, subject to the general
supervision and direction of the Secretary, except as specifically
provided for in this subtitle.
``(b) Purpose.--The purpose of the Corporation is
to--
``(1) expedite the development and market penetration of
industrial, nonfood, nonfeed
products from agricultural and
forestry materials; and
``(2) assist the private sector in bridging the gap between
the results of research
into nonfood, nonfeed products and the
commercialization of the
research.
``(c) Place of Incorporation. <<NOTE: District
of Columbia.>> --The
Corporation shall be incorporated in the District of Columbia.
``(d) Central Office.--The Secretary shall provide
facilities for
the principal office of the Corporation within the Washington, D.C.,
metropolitan area.
``(e) Wholly-Owned Government Corporation.--The
Corporation shall be
considered a wholly-owned government corporation in accordance with
chapter 91 of title 31, United States Code.
``(f) General Powers.--In addition to any other
powers granted to
the Corporation under this subtitle, the Corporation--
``(1) shall have succession in its corporate name;
``(2) may adopt, alter, and rescind any bylaw and adopt and
alter a corporate seal,
which shall be judicially noticed;
``(3) may enter into any agreement or contract with a person
or private or governmental
agency, except that the Corporation
shall not provide any financial
assistance unless specifically
authorized by this subtitle;
``(4) may lease, purchase, accept a gift or donation of, or
otherwise acquire, use,
own, hold, improve, or otherwise deal in
or with, and sell, convey,
mortgage, pledge, lease, exchange, or
otherwise dispose of, any
property or interest in property, as
the Corporation considers
necessary in the transaction of
the business of the Corporation,
except that this paragraph
shall not provide authority
for carrying out a program of real
estate investment;
``(5) may sue and be sued in the corporate name of the
Corporation, except that--
``(A) no attachment, injunction, garnishment, or
similar process shall be issued against the Corporation
or property of the Corporation; and
``(B) <<NOTE: Courts.>> exclusive original
jurisdiction shall reside in the district courts of the
United States, but the Corporation may intervene in any
court in any suit, action, or proceeding in which the
Corporation has an interest;
``(6) may independently retain legal representation;
``(7) may provide for and designate such committees, and the
functions of the committees,
as the Corporate Board considers
necessary or desirable;
``(8) may indemnify the Executive Director and other
officers of the Corporation,
as the Corporate Board considers
necessary and desirable,
except that the Executive Director and
officers shall not be indemnified
for an act outside the scope
of employment;
``(9) may, with the consent of any board, commission,
independent establishment,
or executive department of the
Federal Government, including
any field service, use
information, services, facilities,
officials, and employees in
carrying out this subtitle,
and pay for the use, which payments
shall be transferred to
the applicable appropriation account
that incurred the expense;
``(10) may obtain the services and fix the compensation of
any consultant and otherwise
procure temporary and intermittent
services under section 3109(b)
of title 5, United States Code;
``(11) may use the United States mails on the same terms and
conditions as the Executive
agencies of the Federal Government;
``(12) shall have the rights, privileges, and immunities of
the United States with respect
to the right to priority of
payment with respect to
debts due from bankrupt, insolvent, or
deceased creditors;
``(13) may collect or compromise any obligations assigned to
or held by the Corporation,
including any legal or equitable
rights accruing to the Corporation;
``(14) shall determine the character of, and necessity for,
obligations and expenditures
of the Corporation and the manner
in which the obligations
and expenditures shall be incurred,
allowed, and paid, subject
to provisions of law specifically
applicable to Government
corporations;
``(15) may make final and conclusive settlement and
adjustment of any claim
by or against the Corporation or a
fiscal officer of the Corporation;
``(16) may sell assets, loans, and equity interests acquired
in connection with the financing
of projects funded by the
Corporation; and
``(17) may exercise all other lawful powers necessarily or
reasonably related to the
establishment of the Corporation to
carry out this subtitle
and the powers, purposes, functions,
duties, and authorized activities
of the Corporation.
``(g) Specific Powers.--To carry out this subtitle,
the Corporation
may--
``(1) make grants to, and enter into cooperative agreements
and contracts with, eligible
applicants for research,
development, and demonstration
projects in accordance with
section 1660;
``(2) make loans and interest subsidy payments and invest
venture capital in accordance
with section 1661;
``(3) collect and disseminate information concerning State,
regional, and local commercialization
projects;
``(4) search for new nonfood, nonfeed products that may be
produced from agricultural
commodities and for processes to
produce the products;
``(5) administer, maintain, and dispense funds from the Fund
to facilitate the conduct
of activities under this subtitle; and
``(6) engage in other activities incident to carrying out
the functions of the Corporation.''.
(b) Wholly-Owned Government Corporation.--Section
9101(3) of title
31, United States Code, is amended--
(1) by redesignating subparagraph (N) (relating to the
Uranium Enrichment Corporation)
as subparagraph (O); and
(2) by adding at the end the following:
``(Q) the Alternative Agricultural Research and
Commercialization Corporation.''.
(c) Conforming Amendment.--Section 211(b)(5) of the
Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6911(b)(5)) is amended
by striking ``Alternative Agricultural Research and Commercialization
Board'' and inserting ``Corporate Board of the Alternative Agricultural
Research and Commercialization Corporation''.
SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.
(a) In General.--Section 1659 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended to read
as follows:
``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.
``(a) In General.--The powers of the Corporation
shall be vested in
a Corporate Board.
``(b) Members of the Corporate Board.--The Corporate
Board shall
consist of 11 members as follows:
``(1) The Under Secretary of Agriculture for Rural
Development.
``(2) The Under Secretary of Agriculture for Research,
Education, and Economics.
``(3) 5 members appointed by the Secretary, of whom--
``(A) at least 1 member shall be a representative of
the leading scientific disciplines relevant to the
activities of the Corporation;
``(B) at least 1 member shall be a producer or
processor of agricultural commodities;
``(C) at least 1 member shall be a person who is
privately engaged in the commercialization of new
nonfood, nonfeed products from agricultural commodities;
and
``(D) at least 1 member shall have expertise in
financial management.
A different member shall
be appointed pursuant to each
subparagraph of this paragraph.
``(4) 2 members appointed by the Secretary who--
``(A) have expertise in areas of applied research
relating to the development or commercialization of new
nonfood, nonfeed products; and
``(B) shall be appointed from a group of at least 4
individuals nominated by the Director of the National
Science Foundation if the nominations are made not later
than 60 days after the date a vacancy occurs.
``(5) 2 members appointed by the Secretary who--
``(A) have expertise in financial and managerial
matters; and
``(B) shall be appointed from a group of at least 4
individuals nominated by the Secretary of Commerce if
the nominations are made not later than 60 days after
the date a vacancy occurs.
``(c) Responsibilities of the Corporate Board.--
``(1) In general.--The Corporate Board shall--
``(A) be responsible for the general supervision of
the Corporation and Regional Centers established under
section 1663;
``(B) determine (in consultation with Regional
Centers) high priority commercialization areas to
receive assistance under section 1663;
``(C) review any grant, contract, or cooperative
agreement to be made or entered into by the Corporation
under section 1660 and any financial assistance to be
provided under section 1661;
``(D) make the final decision, by majority vote, on
whether and how to provide assistance to an applicant;
and
``(E) develop and establish a budget plan and a
long-term operating plan to carry out this subtitle.
``(2) Authority of the secretary.--
``(A) In general.--The Secretary shall vacate and
remand to the Corporate Board for reconsideration any
decision made pursuant to paragraph (1)(D) if the
Secretary determines that there has been a violation of
subsection (j), or any conflict of interest provisions
of the bylaws of the Corporate Board, with respect to
the decision.
``(B) Reasons.--In the case of any violation and
referral of a funding decision to the Corporate Board,
the Secretary shall inform the Corporate Board of the
reasons for any remand pursuant to subparagraph (A).
``(d) Chairperson.--The members of the Corporate
Board shall select
a Chairperson from among the members of the Corporate Board. The term
of
office of the Chairperson shall be 2 years. The members referred to
in
paragraphs (1) and (2) of subsection (b) may not serve as Chairperson.
``(e) Executive Director.--
``(1) Appointment.--The Corporate Board shall appoint an
Executive Director, subject
to the approval of the Secretary.
``(2) Duties.--The Executive Director shall be the chief
executive officer of the
Corporation, with such power and
authority as may be conferred
by the Corporate Board.
``(3) Compensation.--The Executive Director shall receive
basic pay at the rate provided
for level IV of the Executive
Schedule under section 5315
of title 5, United States Code.
``(f) Officers.--The Corporate Board shall establish
the offices and
appoint the officers of the Corporation, including a Secretary, and
define the duties of the officers in a manner consistent with this
subtitle.
``(g) Meetings.--The Corporate Board shall meet
at least 3 times
each fiscal year at the call of the Chairperson or at the request of
the
Executive Director. The location of the meetings shall be subject to
approval of the Executive Director. A quorum of the Corporate Board
shall consist of a majority of the members. The decisions of the
Corporate Board shall be made by majority vote.
``(h) Term; Vacancies.--
``(1) In general.--The term of office of a member of the
Corporate Board shall be
4 years, except that the members
initially appointed shall
be appointed to serve staggered terms.
A member appointed to fill
a vacancy for an unexpired term may
be appointed only for the
remainder of the term. A vacancy on
the Corporate Board shall
be filled in the same manner as the
original appointment. The
Secretary may remove a member of the
Corporate Board only for
cause.
``(2) Transition measure.--The Secretary may appoint to the
Corporate Board an individual
who, on the day before the date of
enactment of the Federal
Agriculture Improvement and Reform Act
of 1996, was serving on
the former Alternative Agricultural
Research and Commercialization
Board, for a term that does not
exceed the term for which
the individual was appointed to the
former Board.
``(i) Compensation.--A member of the Corporate Board
who is an
officer or employee of the United States shall not receive any
additional compensation by reason of service on the Corporate Board.
Any
other member shall receive, for each day (including travel time) the
member is engaged in the performance of the functions of the Corporate
Board, compensation at a rate not to exceed the daily equivalent of
the
annual rate in effect for Level IV of the Executive Schedule. A member
of the Corporate Board shall be reimbursed for travel, subsistence,
and
other necessary expenses incurred by the member in the performance
of
the duties of the member.
``(j) Conflict of Interest; Financial Disclosure.--
``(1) Conflict of interest.--Except as provided in paragraph
(3), no member of the Corporate
Board shall vote on any matter
respecting any application,
contract, claim, or other particular
matter pending before the
Corporation, in which, to the
knowledge of the member,
the member, spouse, or child of the
member, partner, or organization
in which the member is serving
as officer, director, trustee,
partner, or employee, or any
person or organization with
whom the member is negotiating or
has any arrangement concerning
prospective employment, has a
financial interest.
``(2) Violations.--Violation of paragraph (1) by a member of
the Corporate Board shall
be cause for removal of the member,
but shall not impair or
otherwise affect the validity of any
otherwise lawful action
by the Corporation in which the member
participated.
``(3) Exceptions.--The prohibitions contained in paragraph
(1) shall not apply if a
member of the Corporate Board advises
the Corporate Board of the
nature of the particular matter in
which the member proposes
to participate, and if the member
makes a full disclosure
of the financial interest, prior to any
participation, and the Corporate
Board determines, by majority
vote, that the financial
interest is too remote or too
inconsequential to affect
the integrity of the member's services
to the Corporation in that
matter. The member involved shall not
vote on the determination.
``(4) Financial disclosure.--A Board member shall be subject
to the financial disclosure
requirements set forth in subchapter
B of chapter XVI of title
5, Code of Federal Regulations (or any
corresponding or similar
regulation or ruling), applicable to a
special Government employee
(as defined in section 202(a) of
title 18, United States
Code).
``(k) Delegation of Authority.--
``(1) In general.--The Corporate Board may, by resolution,
delegate to the Chairperson,
the Executive Director, or any
other officer or employee
any function, power, or duty assigned
to the Corporation under
this subtitle, other than a function,
power, or duty expressly
vested in the Corporate Board by
subsections (c) through
(n).
``(2) Prohibition on delegation.--Notwithstanding any other
law, the Secretary and any
other officer or employee of the
United States shall not
make any delegation to the Corporate
Board, the Chairperson,
the Executive Director, or the
Corporation of any power,
function, or authority not expressly
authorized by this subtitle,
unless the delegation is made
pursuant to an authority
in law that expressly makes reference
to this section.
``(3) Reorganization act.--Notwithstanding any other law,
the President (through authorities
provided under chapter 9 of
title 5, United States Code)
may not authorize the transfer to
the Corporation of any power,
function, or authority in addition
to powers, functions, and
authorities provided by law.
``(l) Bylaws.--Notwithstanding section 1658(f)(2),
the Corporate
Board shall adopt, and may from time to time amend, any bylaw that
is
necessary for the proper management and functioning of the Corporation.
The Corporate Board shall not adopt any bylaw that has not been reviewed
and approved by the Secretary.
``(m) Organization.--The Corporate Board shall provide
a system of
organization to fix responsibility and promote efficiency.
``(n) Personnel and Facilities of Corporation.--
``(1) Appointment and compensation of personnel.--The
Corporation may select and
appoint officers, attorneys,
employees, and agents, who
shall be vested with such powers and
duties as the Corporation
may determine.
``(2) Use of facilities and services of the department of
agriculture.--Notwithstanding
any other provision of law, to
perform the responsibilities
of the Corporation under this
subtitle, the Corporation
may partially or jointly utilize the
facilities of and the services
of employees of the Department of
Agriculture, without cost
to the Corporation.
``(3) Government employment laws.--An officer or employee of
the Corporation shall be
subject to all laws of the United
States relating to governmental
employment.''.
(b) Conforming Amendment.--Section 5315 of title
5, United States
Code, is amended by adding at the end the following:
``Executive Director of the Alternative Agricultural
Research and Commercialization
Corporation.''.
SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.
Section 1660 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 5904) is amended--
(1) by striking ``Center'' each place it appears and
inserting ``Corporation'';
(2) in subsection (c), by striking ``Board'' and inserting
``Corporate Board''; and
(3) in subsection (f), by striking ``non-Center'' and
inserting ``non-Corporation''.
SEC. 725. COMMERCIALIZATION ASSISTANCE.
Section 1661 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 5905) is amended--
(1) by striking ``Center'' each place it appears and
inserting ``Corporation'';
(2) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
(3) by striking subsection (c);
(4) by redesignating subsections (d), (e), and (f) as
subsections (c), (d), and
(e), respectively; and
(5) in subsection (c) (as so redesignated)--
(A) in the subsection heading of paragraph (1), by
striking ``director'' and inserting ``executive
director''; and
(B) by striking ``Director'' each place it appears
and inserting ``Executive Director''.
SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.
Section 1662 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 5906) is amended--
(1) by striking ``Center'' each place it appears (except in
subsection (b)) and inserting
``Corporation'';
(2) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
and
(3) in subsection (b)--
(A) in the second sentence, by striking ``Board, a
Regional Center, or the Advisory Council'' and inserting
``Board or a Regional Center''; and
(B) by striking the third sentence.
Section 1663 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 5907) is amended--
(1) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
(2) in subsection (e)(8), by striking ``Center'' and
inserting ``Corporation'';
and
(3) in subsection (f)--
(A) in paragraph (2), by striking ``in consultation
with the Advisory Council appointed under section
1661(c)''; and
(B) by striking paragraphs (3) and (4) and inserting
the following:
``(3) Recommendation.--The Regional Director, based on the
comments of the reviewers,
shall make and submit a
recommendation to the Board,
which shall not be binding on the
Board.''.
SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
Section 1664 of the Food, Agriculture, Conservation,
and Trade Act
of 1990 (7 U.S.C. 5908) is amended to read as follows:
``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
``(a) Establishment.--There is established in the
Treasury of the
United States a revolving fund to be known as the Alternative
Agricultural Research and Commercialization Revolving Fund. The Fund
shall be available to the Corporation, without fiscal year limitation,
to carry out this subtitle.
``(b) Contents of Fund.--There shall be deposited
in the Fund--
``(1) such amounts as may be appropriated or transferred to
support programs and activities
of the Corporation;
``(2) payments received from any source for products,
services, or property furnished
in connection with the
activities of the Corporation;
``(3) fees and royalties collected by the Corporation from
licensing or other arrangements
relating to commercialization of
products developed through
projects funded in whole or part by
grants, contracts, or cooperative
agreements executed by the
Corporation;
``(4) proceeds from the sale of assets, loans, and equity
interests made in furtherance
of the purposes of the
Corporation;
``(5) donations or contributions accepted by the Corporation
to support authorized programs
and activities; and
``(6) any other funds acquired by the Corporation.
``(c) Funding Allocations.--Funding of projects and
activities under
this subtitle shall be subject to the following restrictions:
``(1) Of the total amount of funds made available for a
fiscal year under this subtitle--
``(A) not more than the lesser of 15 percent or
$3,000,000 may be set aside to be used for authorized
administrative expenses of the Corporation;
``(B) not more than 1 percent may be set aside to be
used for generic studies and specific reviews of
individual proposals for financial assistance; and
``(C) except as provided in subsection (e), not less
than 84 percent shall be set aside to be awarded to
qualified applicants who file project applications with,
or respond to requests for proposals from, the
Corporation under sections 1660 and 1661.
``(2) Any funds remaining uncommitted at the end of a fiscal
year shall be credited to
the Fund and added to the total
program funds available
to the Corporation for the next fiscal
year.
``(d) Authorized Administrative Expenses.--For the
purposes of this
section, authorized administrative expenses shall include
all ordinary and necessary expenses, including all compensation for
personnel and consultants, expenses for computer usage, or space needs
of the Corporation and similar expenses. Funds authorized for
administrative expenses shall not be available for the acquisition
of
real property.
``(e) Project Monitoring.--The Corporate Board may
establish, in the
bylaws of the Corporate Board, that a percentage (which shall not exceed
1 percent) of the funds provided under subsection (c) for any
commercialization project shall be expended to ensure that project
funds
are being utilized in accordance with the project agreement.
``(f) Termination of the Fund.--On expiration of
the authority
provided by this subtitle, all assets (after payment of all outstanding
obligations) of the Fund shall revert to the general fund of the
Treasury.
``(g) Authorization of Appropriations; Capitalization.--
``(1) Authorization of appropriation.--There are authorized
to be appropriated to the
Fund $75,000,000 for each of fiscal
years 1996 through 2002.
``(2) Capitalization.--The Executive Director may pay in as
capital of the Corporation,
out of dollar receipts made
available through annual
appropriations, $75,000,000 for each of
fiscal years 1996 through
2002. On the payment of an amount of
capital by the Executive
Director, the Corporation shall issue
an equivalent amount of
capital stock to the Secretary of the
Treasury.
``(3) Transfer.--All obligations, assets, and related rights
and responsibilities of
the former Alternative Agricultural
Research and Commercialization
Center established under former
section 1658 of this Act
(as in effect on the day before the
date of enactment of the
Federal Agriculture Improvement and
Reform Act of 1996) are
transferred to the Corporation.''.
SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING
CORPORATION
ASSISTANCE.
Subtitle G of title XVI of the Food, Agriculture,
Conservation, and
Trade Act of 1990 (7 U.S.C. 5901 et seq.) is amended by adding at the
end the following:
``SEC. 1665. <<NOTE: 7 USC 5909.>> PROCUREMENT OF ALTERNATIVE
AGRICULTURAL RESEARCH AND COMMERCIALIZATION PRODUCTS.
``(a) Definition of Executive Agency.--In this section,
the term
`executive agency' has the meaning provided the term in section 4(1)
of
the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
``(b) Procurement.--To further the achievement of
the purposes
specified in section 1657(b), an executive agency may, for any
procurement involving the acquisition of property, establish set-asides
and preferences for property that has been commercialized with
assistance provided under this subtitle.
``(c) Set-Asides.--Procurements solely for property
may be set aside
exclusively for products developed with commercialization assistance
provided under section 1661.
``(d) Preferences.--Preferences for property developed
with
assistance provided under this subtitle in procurements involving the
acquisition of property may be--
``(1) a price preference, if the procurement is solely for
property, of not greater
than a percentage to be determined
within the sole discretion
of the head of the procuring agency;
or
``(2) a technical evaluation preference included as an award
factor or subfactor as determined
within the sole discretion of
the head of the procuring
agency.
``(e) Notice.--Each competitive solicitation or invitation
for bids
selected by an executive agency for a set-aside or preference under
this
section shall contain a provision notifying offerors where a list of
products eligible for the set-aside or preference may be obtained.
``(f) Eligibility.--Offerors shall receive the set-aside
or
preference required under this section if, in the case of products
developed with financial assistance under--
``(1) section 1660, less than 10 years have elapsed since
the expiration of the grant,
cooperative agreement, or contract;
``(2) paragraph (1) or (2) of section 1661(a), less than 5
years have elapsed since
the date the loan was made or insured;
``(3) section 1661(a)(3), less than 5 years have elapsed
since the date of sale of
any remaining government equity
interest in the company;
or
``(4) section 1661(a)(4), less than 5 years have elapsed
since the date of the final
payment on the repayable grant.''.
SEC. 730. <<NOTE: 7 USC 5902 note.>> BUSINESS
PLAN AND FEASIBILITY
STUDY AND REPORT.
(a) Business Plan.--Not later than 180 days after
the date of
enactment of this Act, the Alternative Agricultural Research and
Commercialization Corporation established by section 1658 of the Food,
Agriculture, Conservation, and Trade Act of 1990 shall--
(1) develop a 5-year business plan pursuant to section
1659(c)(1)(E) of the Act;
and
(2) submit the plan to the Secretary of Agriculture, the
Committee on Agriculture
of the House of Representatives, and
the Committee on Agriculture,
Nutrition, and Forestry of the
Senate.
(b) Feasibility Study and Report.--
(1) Study.--The Secretary of Agriculture shall conduct a
study of, and prepare a
report on, the continued feasibility of
the Alternative Agricultural
Research and Commercialization
Corporation. In conducting
the study, the Secretary shall
examine options for privatizing
the Corporation and converting
the Corporation to a Government-sponsored
enterprise.
(2) Report.--Not later than December 31, 2001, the Secretary
shall transmit the report
required by paragraph (1) to the
Committee on Agriculture
of the House of Representatives and the
Committee on Agriculture,
Nutrition, and Forestry of the Senate.
Subtitle B--Amendments to the Consolidated
Farm and Rural Development
Act
CHAPTER 1--GENERAL PROVISIONS
SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.
(a) In General.--Section 306(a) of the Consolidated
Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended--
(1) in the first sentence of paragraph (2), by striking
``$500,000,000'' and inserting
``$590,000,000'';
(2) by striking paragraph (7) and inserting the following:
``(7) Definition of rural and rural areas.--For the purpose
of water and waste disposal
grants and direct and guaranteed
loans provided under paragraphs
(1) and (2), the terms `rural'
and `rural area' mean a
city, town, or unincorporated area that
has a population of no more
than 10,000 inhabitants.'';
(3) by striking paragraphs (9), (10), and (11) and inserting
the following:
``(9) Conformity with state drinking water standards.--No
Federal funds shall be made
available under this section for a
water system unless the
Secretary determines that the water
system will make significant
progress toward meeting the
standards established under
title XIV of the Public Health
Service Act (commonly known
as the `Safe Drinking Water Act')
(42 U.S.C. 300f et seq.).
``(10) Conformity with federal and state water pollution
control standards.--No Federal
funds shall be made available
under this section for a
water treatment discharge or waste
disposal system unless the
Secretary determines that the
effluent from the system
conforms with applicable Federal and
State water pollution control
standards.
``(11) Rural business opportunity grants.--
``(A) In general.--The Secretary may make grants,
not to exceed $1,500,000 annually, to public bodies,
private nonprofit community development corporations or
entities, or such other agencies as the Secretary may
select to enable the recipients--
``(i) to identify and analyze business
opportunities, including opportunities in export
markets, that will use local rural economic and
human resources;
``(ii) to identify, train, and provide
technical assistance to existing or prospective
rural entrepreneurs and managers;
``(iii) to establish business support centers
and otherwise assist in the creation of new rural
businesses, the development of methods of
financing local businesses, and the enhancement of
the capacity of local individuals and entities to
engage in sound economic activities;
``(iv) to conduct regional, community, and
local economic development planning and
coordination, and leadership development; and
``(v) to establish centers for training,
technology, and trade that will provide training
to rural businesses in the utilization of
interactive communications technologies to develop
international trade opportunities and markets.
``(B) Criteria.--In awarding the grants, the
Secretary shall consider, among other criteria to be
established by the Secretary--
``(i) the extent to which the applicant
provides development services in the rural service
area of the applicant; and
``(ii) the capability of the applicant to
accomplish the activities described in the
relevant clauses of subparagraph (A).
``(C) Coordination.--The Secretary shall ensure, to
the maximum extent practicable, that assistance provided
under this paragraph is coordinated with and delivered
in cooperation with similar services or assistance
provided to rural residents by the Cooperative State
Research, Education, and Extension Service or other
Federal agencies.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $7,500,000 for each of fiscal years 1996
through 2002.'';
(4) by striking paragraphs (14) and (15);
(5) by redesignating paragraphs (16) through (20) as
paragraphs (14) through
(18), respectively; and
(6) in paragraph (14) (as so redesignated)--
(A) by striking ``(14)(A) The'' and inserting the
following:
``(14) Rural water and wastewater technical assistance and
training programs.--
``(A) In general.--The'';
(B) in subparagraph (A)--
(i) by striking ``(i) identify'' and inserting
the following:
``(i) identify'';
(ii) by striking ``(ii) prepare'' and
inserting the following:
``(ii) prepare''; and
(iii) by striking ``(iii) improve'' and
inserting the following:
``(iii) improve'';
(C) in subparagraph (B), by striking ``(B) In'' and
inserting the following:
``(B) Selection priority.--In''; and
(D) in subparagraph (C)--
(i) by striking ``(C) Not'' and inserting the
following:
``(C) Funding.--Not''; and
(ii) by striking ``2 per centum of any funds
provided in appropriations Acts'' and inserting
``3 percent of any funds appropriated''.
(b) Conforming Amendment.--The second sentence of
section 309A(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a))
(as
amended by section 661(c)(1)) is amended by striking ``, 306(a)(14),''.
SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT
PROGRAM FOR SMALL
COMMUNITIES.
Section 306A of the Consolidated Farm and Rural Development
Act (7
U.S.C. 1926a) is amended--
(1) in subsection (e)--
(A) in paragraph (1)(A), by striking ``15,000'' and
inserting ``10,000''; and
(B) in paragraph (2), by striking ``5,000'' and
inserting ``3,000''; and
(2) by striking subsection (i) and inserting the following:
``(i) Authorization of Appropriations.--There are
authorized to be
appropriated to carry out this section $35,000,000 for each of fiscal
years 1996 through 2002.''.
SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT
PROGRAM FOR
SMALLEST COMMUNITIES.
Section 306B of the Consolidated Farm and Rural Development
Act (7
U.S.C. 1926b) is repealed.
SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.
Section 309(f) of the Consolidated Farm and Rural
Development Act (7
U.S.C. 1929(f)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (6) as
paragraphs (1) through (5),
respectively.
SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.
Section 309A(g) of the Consolidated Farm and Rural
Development Act
(7 U.S.C. 1929a(g)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (8) as
paragraphs (1) through (7),
respectively.
SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION
AND DEVELOPMENT
LOANS.
Section 310A of the Consolidated Farm and Rural Development
Act (7
U.S.C. 1931) is repealed.
SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.
(a) In General.--Section 310B of the Consolidated
Farm and Rural
Development Act (7 U.S.C. 1932) is amended--
(1) in the first sentence of subsection (a)--
(A) by striking ``and'' at the end of clause (2);
and
(B) by inserting before the period the following:
``, and (4) to facilitate economic opportunity for
industries undergoing adjustment from terminated Federal
agricultural price and income support programs or
increased competition from foreign trade'';
(2) in subsection (b), by striking ``(b)(1)'' and all that
follows through ``(2) The''
and inserting the following:
``(b) Solid Waste Management Grants.--The'';
(3) in subsection (c)--
(A) by striking ``(c)(1) The'' and inserting the
following:
``(c) Rural Business Enterprise Grants.--
``(1) In general.--The'';
(B) in paragraph (1), by inserting ``(including
nonprofit entities)'' after ``private business
enterprises'';
(C) in paragraph (2)--
(i) by striking ``(2) The'' and inserting the
following:
``(2) Passenger transportation services or facilities.--
The''; and
(ii) by striking ``make grants'' and inserting
``award grants on a competitive basis''; and
(D) by adding at the end the following:
``(3) Grants to aid industries in adjusting to terminated
federal agricultural programs
or increased foreign
competition.--The Secretary
may make grants under this section
to facilitate economic opportunity
for industries
undergoing adjustment from
terminated Federal agricultural price
and income support programs
or increased competition from
foreign trade.'';
(4) by striking subsection (e) and inserting the following:
``(e) Rural Cooperative Development Grants.--
``(1) Definitions.--In this subsection:
``(A) Nonprofit institution.--The term `nonprofit
institution' means any organization or institution,
including an accredited institution of higher education,
no part of the net earnings of which inures, or may
lawfully inure, to the benefit of any private
shareholder or individual.
``(B) United states.--The term `United States' means
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the other territories and
possessions of the United States.
``(2) Grants.--The Secretary shall make grants under this
subsection to nonprofit
institutions for the purpose of enabling
the institutions to establish
and operate centers for rural
cooperative development.
``(3) Goals.--The goals of a center funded under this
subsection shall be to facilitate
the creation of jobs in rural
areas through the development
of new rural cooperatives, value
added processing, and rural
businesses.
``(4) Application.--Any nonprofit institution seeking a
grant under paragraph (2)
shall submit to the Secretary an
application containing a
plan for the establishment and
operation by the institution
of a center or centers for
cooperative development.
The Secretary may approve the
application if the plan
contains the following:
``(A) A provision that substantiates that the center
will effectively serve rural areas in the United States.
``(B) A provision that the primary objective of the
center will be to improve the economic condition of
rural areas through cooperative development.
``(C) A description of the activities that the
center will carry out to accomplish the objective. The
activities may include the following:
``(i) Programs for applied research and
feasibility studies that may be useful to
individuals, cooperatives, small businesses, and
other similar entities in rural areas served by
the center.
``(ii) Programs for the collection,
interpretation, and dissemination of information
that may be useful to individuals, cooperatives,
small businesses, and other similar entities in
rural areas served by the center.
``(iii) Programs providing training and
instruction for individuals, cooperatives, small
businesses, and other similar entities in rural
areas served by the center.
``(iv) Programs providing loans and grants to
individuals, cooperatives, small businesses, and
other similar entities in rural areas served by
the center.
``(v) Programs providing technical assistance,
research services, and advisory services to
individuals, cooperatives, small businesses, and
other similar entities in rural areas served by
the center.
``(vi) Programs providing for the coordination
of services and sharing of information among the
center.
``(D) A description of the contributions that the
activities are likely to make to the improvement of the
economic conditions of the rural areas for which the
center will provide services.
``(E) Provisions that the center, in carrying out
the activities, will seek, where appropriate, the
advice, participation, expertise, and assistance of
representatives of business, industry, educational
institutions, the Federal Government, and State and
local governments.
``(F) Provisions that the center will take all
practicable steps to develop continuing sources of
financial support for the center, particularly from
sources in the private sector.
``(G) Provisions for--
``(i) monitoring and evaluating the activities
by the nonprofit institution operating the center;
and
``(ii) accounting for money received by the
institution under this section.
``(5) Awarding grants.--Grants made under paragraph (2)
shall be made on a competitive
basis. In making grants under
paragraph (2), the Secretary
shall give preference to grant
applications providing for
the establishment of centers for
rural cooperative development
that--
``(A) demonstrate a proven track record in
administering a nationally coordinated, regionally or
State-wide operated project;
``(B) demonstrate previous expertise in providing
technical assistance in rural areas;
``(C) demonstrate the ability to assist in the
retention of businesses, facilitate the establishment of
cooperatives and new cooperative approaches, and
generate employment opportunities that will improve the
economic conditions of rural areas;
``(D) demonstrate the ability to create horizontal
linkages among businesses within and among various
sectors in rural areas of the United States and vertical
linkages to domestic and international markets;
``(E) commit to providing technical assistance and
other services to underserved and economically
distressed areas in rural areas of the United States;
and
``(F) commit to providing greater than a 25 percent
matching contribution with private funds and in-kind
contributions.
``(6) 1-year grants; authority to approve grant for 1
additional year without
application.--The Secretary shall make
grants under this subsection
for a period of 1 year. The
Secretary shall evaluate
programs receiving assistance under
this subsection. If the
Secretary determines it to be in the
best interest of the program,
the Secretary may award an
additional grant to the
program for the immediately succeeding
year without application
for the grant.
``(7) Technical assistance to prevent excessive unemployment
or underemployment.--In
carrying out this subsection, the
Secretary may provide technical
assistance to alleviate or
prevent conditions of excessive
unemployment,
underemployment, outmigration,
or low employment growth in
economically distressed
rural areas that the Secretary
determines have a substantial
need for the assistance. The
assistance may include planning
and feasibility studies,
management and operational
assistance, and studies evaluating
the need for development
potential of projects that increase
employment and improve economic
growth in the areas.
``(8) Grants to defray administrative costs.--The Secretary
may make grants to defray
not to exceed 75 percent of the costs
incurred by organizations
and public bodies to carry out
projects for which grants
or loans are made under this
subsection. For purposes
of determining the non-Federal share of
the costs, the Secretary
shall consider contributions in cash
and in kind, fairly evaluated,
including premises, equipment,
and services.
``(9) Authorization of appropriations.--There are authorized
to be appropriated to carry
out this subsection $50,000,000 for
each of fiscal years 1996
through 2002.'';
(5) by striking subsections (f), (g), (h), and (i);
(6) by redesignating subsection (j) as subsection (f); and
(7) by adding at the end the following:
``(g) Loan Guarantees for the Purchase of Cooperative
Stock.--
``(1) Definition of farmer.--In this subsection, the term
`farmer' means any farmer
that the Secretary determines is a
family farmer.
``(2) Loan guarantees.--The Secretary may guarantee loans
under this section to individual
farmers for the purpose of
purchasing start-up capital
stock of a farmer cooperative
established for the purpose
of processing an agricultural
commodity.
``(3) Eligibility.--To be eligible for a loan guarantee
under this subsection, a
farmer must produce the agricultural
commodity that will be processed
by the cooperative.''.
(b) Conforming Amendments.--
(1) Clause (iii) of section 307(a)(6)(B) of the Consolidated
Farm and Rural Development
Act (7 U.S.C. 1927(a)(6)(B)) (as
redesignated by section
661(a)(2)) is amended by striking
``subsections (d) and (e)
of section 310B'' and inserting
``section 310B(d)''.
(2) Section 232(c)(2) of the Department of Agriculture
Reorganization Act of 1994
(7 U.S.C. 6942(c)(2)) is amended--
(A) by striking ``310B(b)(2)'' and inserting
``310B(b)''; and
(B) by striking ``1932(b)(2)'' and inserting
``1932(b)''.
(3) Section 233(b) of the Department of Agriculture
Reorganization Act of 1994
(7 U.S.C. 6943(b)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
Section 331(b)(4) of the Consolidated Farm and Rural
Development Act
(7 U.S.C. 1981(b)(4)) is amended--
(1) by inserting after ``claims'' the following:
``(including debts and claims
arising from loan guarantees)'';
(2) by striking ``Farmers Home Administration or'' and
inserting ``Consolidated
Farm Service Agency, Rural Utilities
Service, Rural Housing Service,
Rural Business-Cooperative
Service, or a successor
agency, or''; and
(3) <<NOTE: Notification.>> by inserting after ``activities
under the Housing Act of
1949.'' the following: ``In the case of
a security instrument entered
into under the Rural
Electrification Act of 1936
(7 U.S.C. 901 et seq.), the
Secretary shall notify the
Attorney General of the intent of the
Secretary to exercise the
authority of the Secretary under this
paragraph.''.
SEC. 749. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 338 of the Consolidated
Farm and Rural
Development Act (7 U.S.C. 1988) is amended--
(1) by striking subsections (b), (c), (d), and (e); and
(2) by redesignating subsection (f) as subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 309(g)(1) of the
Consolidated Farm and Rural
Development Act (7 U.S.C.
1929(g)(1)) is amended by
inserting after ``section 338(c)'' the
following: ``(before the
amendment made by section 749(a)(1) of
the Federal Agriculture
Improvement and Reform Act of 1996)''.
(2) Section 343(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C.
1991(b)) is amended by striking
``338(f),'' and inserting
``338(b),''.
SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.
Section 345 of the Consolidated Farm and Rural Development
Act (7
U.S.C. 1993) is repealed.
SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.
Section 363 of the Consolidated Farm and Rural Development
Act (7
U.S.C. 2006e) is amended by adding at the end the following: ``This
section shall not apply to a loan made or guaranteed under this title
for a utility line.''.
SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.
The Consolidated Farm and Rural Development Act is
amended by
inserting after section 363 (7 U.S.C. 2006e) the following:
``SEC. 364. <<NOTE: 7 USC 2006f.>> RURAL DEVELOPMENT CERTIFIED
LENDERS
PROGRAM.
``(a) Certified Lenders Program.--
``(1) In general.--The Secretary may establish a program
under which the Secretary
may guarantee a loan for any rural
development program that
is made by a lender certified by the
Secretary.
``(2) Certification requirements.--The Secretary may certify
a lender if the lender meets
such criteria as the Secretary may
prescribe in regulations,
including the ability of the lender to
properly make, service,
and liquidate the guaranteed loans of
the lender.
``(3) Condition of certification.--As a condition of
certification, the Secretary
may require the lender to undertake
to service the guaranteed
loan using standards that are not less
stringent than generally
accepted banking standards concerning
loan servicing that are
used by prudent commercial or
cooperative lenders.
``(4) Guarantee.--Notwithstanding any other provision of
law, the Secretary may guarantee
not more than 80 percent of a
loan made by a certified
lender described in paragraph
(1), if the borrower of
the loan meets the eligibility
requirements and such other
criteria for the loan guarantee that
are established by the Secretary.
``(5) Certifications.--With respect to loans to be
guaranteed, the Secretary
may permit a certified lender to make
appropriate certifications
(as provided in regulations issued by
the Secretary)--
``(A) relating to issues such as creditworthiness,
repayment ability, adequacy of collateral, and
feasibility of the operation; and
``(B) that the borrower is in compliance with all
requirements of law, including regulations issued by the
Secretary.
``(6) Relationship to other requirements.--This subsection
shall not affect the responsibility
of the Secretary to
determine eligibility, review
financial information, and
otherwise assess an application.
``(b) Preferred Certified Lenders Program.--
``(1) In general.--The Secretary may establish a preferred
certified lenders program
for lenders who establish their--
``(A) knowledge of, and experience under, the
program established under subsection (a);
``(B) knowledge of the regulations concerning the
particular guaranteed loan program; and
``(C) proficiency related to the certified lender
program requirements.
``(2) Additional lending institutions.--The Secretary may
certify any lending institution
as a preferred certified lender
if the institution meets
such additional criteria as the
Secretary may prescribe
by regulation.
``(3) Revocation of designation.--The designation of a
lender as a preferred certified
lender shall be revoked if the
Secretary determines that
the lender is not adhering to the
rules and regulations applicable
to the program or if the loss
experiences of the preferred
certified lender are greater than
other preferred certified
lenders, except that the suspension or
revocation shall not affect
any outstanding guarantee.
``(4) Condition of certification.--As a condition of the
preferred certification,
the Secretary shall require the lender
to undertake to service
the loan guaranteed by the Secretary
under this subsection using
generally accepted banking standards
concerning loan servicing
employed by prudent commercial or
cooperative lenders. The
Secretary shall, at least annually,
monitor the performance
of each preferred certified lender to
ensure that the conditions
of the certification are being met.
``(5) Effect of preferred lender certification.--
Notwithstanding any other
provision of law, the Secretary may--
``(A) guarantee not more than 80 percent of any
approved loan made by a preferred certified lender as
described in this subsection, if the borrower meets the
eligibility requirements and such other criteria as may
be applicable to loans guaranteed by the Secretary; and
``(B) permit preferred certified lenders to make all
decisions, with respect to loans to be guaranteed by the
Secretary under this subsection relating to
creditworthiness, the closing, monitoring, collection,
and liquidation of loans, and to accept appropriate
certifications, as provided in regulations issued by the
Secretary, that the borrower is
in compliance with all requirements of law and
regulations issued by the Secretary.''.
SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.
(a) In General.--Section 365 of the Consolidated
Farm and Rural
Development Act (7 U.S.C. 2008) is repealed.
(b) Conforming Amendments.--
(1) Section 2375 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C.
6613) is amended--
(A) in subsection (e), by striking ``, as defined in
section 365(b)(2) of the Consolidated Farm and Rural
Development Act,''; and
(B) by adding at the end the following:
``(g) Definition of Designated Rural Development
Program.--In this
section, the term `designated rural development program' means a program
carried out under section 304(b), 306(a), or 310B(e) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e))
for which funds are available at any time during the fiscal year.''.
(2) Paragraph (2) of section 233(b) of the Department of
Agriculture Reorganization
Act of 1994 (7 U.S.C. 6943(b)) (as
redesignated by section
747(b)(3)(B)) is amended by striking
``sections 365 through 369
of the Consolidated Farm and Rural
Development Act (7 U.S.C.
2008-2008d)'' and inserting ``section
369 of the Consolidated
Farm and Rural Development Act (7 U.S.C.
2008d)''.
SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.
Section 366 of the Consolidated Farm and Rural Development
Act (7
U.S.C. 2008a) is repealed.
SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.
Section 367 of the Consolidated Farm and Rural Development
Act (7
U.S.C. 2008b) is repealed.
SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.
Section 368 of the Consolidated Farm and Rural Development
Act (7
U.S.C. 2008c) is repealed.
SEC. 757. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
The Consolidated Farm and Rural Development Act is
amended by
inserting after section 306C (7 U.S.C. 1926c) the following:
``SEC. 306D. <<NOTE: 7 USC 1926d.>> WATER SYSTEMS FOR RURAL
AND NATIVE
VILLAGES IN ALASKA.
``(a) In General.--The Secretary may make grants
to the State of
Alaska for the benefit of rural or Native villages in Alaska to provide
for the development and construction of water and wastewater systems
to
improve the health and sanitation conditions in those villages.
``(b) Matching Funds.--To be eligible to receive
a grant under
subsection (a), the State of Alaska shall provide equal matching funds
from non-Federal sources.
``(c) Consultation With the State of Alaska.--The
Secretary shall
consult with the State of Alaska on a method of prioritizing
the allocation of grants under subsection (a) according to the needs
of,
and relative health and sanitation conditions in, each village.
``(d) Authorization of Appropriations.--There are
authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 1996 through 2002.''.
SEC. 758. APPLICATION REQUIREMENTS RELATING TO WATER
AND WASTE DISPOSAL
LOAN AND GRANT PROGRAMS.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7
U.S.C. 926(a)) <<NOTE: 7 USC 1926.>> is amended by inserting
after
paragraph (4) the following:
``(5) Application requirements.--Not earlier than 60 days
before a preliminary application
is filed for a loan under
paragraph (1) or a grant
under paragraph (2) for a water or
waste disposal purpose,
a notice of the intent of the applicant
to apply for the loan or
grant shall be published in a general
circulation newspaper. The
selection of engineers for a project
design shall be done by
a request for proposals by the
applicant.''.
SEC. 759. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.
The Consolidated Farm and Rural Development Act (as
amended by
section 649) is amended by adding at the end the following:
``SEC. 375. <<NOTE: Goats. 7 USC 2008j.>> NATIONAL SHEEP
INDUSTRY
IMPROVEMENT CENTER.
``(a) Definitions.--In this section:
``(1) Board.--The term `Board' means the Board of Directors
established under subsection
(f).
``(2) Center.--The term `Center' means the National Sheep
Industry Improvement Center
established under subsection (b).
``(3) Eligible entity.--The term `eligible entity' means an
entity that promotes the
betterment of the United States sheep
or goat industries and that
is--
``(A) a public, private, or cooperative
organization;
``(B) an association, including a corporation not
operated for profit;
``(C) a federally recognized Indian Tribe; or
``(D) a public or quasi-public agency.
``(4) Fund.--The term `Fund' means the National Sheep
Industry Improvement Center
Revolving Fund established under
subsection (e).
``(b) Establishment of Center.--The Secretary shall
establish a
National Sheep Industry Improvement Center.
``(c) Purposes.--The purposes of the Center shall
be to--
``(1) promote strategic development activities and
collaborative efforts by
private and State entities to maximize
the impact of Federal assistance
to strengthen and enhance
production and marketing
of sheep or goat products in the United
States;
``(2) optimize the use of available human capital and
resources within the sheep
or goat industries;
``(3) provide assistance to meet the needs of the sheep or
goat industry for infrastructure
development, business
development, production,
resource development, and market and
environmental research;
``(4) advance activities that empower and build the capacity
of the United States sheep
or goat industry to design unique
responses to the special
needs of the sheep or goat industries
on both a regional and national
basis; and
``(5) adopt flexible and innovative approaches to solving
the long-term needs of the
United States sheep or goat industry.
``(d) Strategic Plan.--
``(1) In general.--The Center shall submit to the Secretary
an annual strategic plan
for the delivery of financial
assistance provided by the
Center.
``(2) Requirements.--A strategic plan shall identify--
``(A) goals, methods, and a benchmark for measuring
the success of carrying out the plan and how the plan
relates to the national and regional goals of the
Center;
``(B) the amount and sources of Federal and non-
Federal funds that are available for carrying out the
plan;
``(C) funding priorities;
``(D) selection criteria for funding; and
``(E) a method of distributing funding.
``(e) Revolving Fund.--
``(1)
Establishment.--There is established in the Treasury
the National Sheep Industry
Improvement Center Revolving Fund.
The Fund shall be available
to the Center, without fiscal year
limitation, to carry out
the authorized programs and activities
of the Center under this
section.
``(2) Contents of fund.--There shall be deposited in the
Fund--
``(A) such amounts as may be appropriated,
transferred, or otherwise made available to support
programs and activities of the Center;
``(B) payments received from any source for
products, services, or property furnished in connection
with the activities of the Center;
``(C) fees and royalties collected by the Center
from licensing or other arrangements relating to
commercialization of products developed through projects
funded, in whole or part, by grants, contracts, or
cooperative agreements executed by the Center;
``(D) proceeds from the sale of assets, loans, and
equity interests made in furtherance of the purposes of
the Center;
``(E) donations or contributions accepted by the
Center to support authorized programs and activities;
and
``(F) any other funds acquired by the Center.
``(3) Use of fund.--
``(A) In general.--The Center may use amounts in the
Fund to make grants and loans to eligible entities in
accordance with a strategic plan submitted under
subsection (d).
``(B) Continued existence.--The Center shall manage
the Fund in a manner that ensures that sufficient
amounts are available in the Fund to carry out
subsection (c).
``(C) Diverse area.--The Center shall, to the
maximum extent practicable, use the Fund to serve broad
geographic areas and regions of diverse production.
``(D) Variety of loans and grants.--The Center
shall, to the maximum extent practicable, use the Fund
to provide a variety of grants and intermediate- and
long-term loans.
``(E) Administration.--The Center may not use more
than 3 percent of the amounts in the Fund for a fiscal
year for the administration of the Center.
``(F) Influencing legislation.--None of the amounts
in the Fund may be used to influence legislation.
``(G) Accounting.--To be eligible to receive amounts
from the Fund, an entity must agree to account for the
amounts using generally accepted accounting principles.
``(H) Uses of fund.--The Center may use amounts in
the Fund to--
``(i) participate with Federal and State
agencies in financing activities that are in
accordance with a strategic plan submitted under
subsection (d), including participation with
several States in a regional effort;
``(ii) participate with other public and
private funding sources in financing activities
that are in accordance with the strategic plan,
including participation in a regional effort;
``(iii) provide security for, or make
principal or interest payments on, revenue or
general obligation bonds issued by a State, if the
proceeds from the sale of the bonds are deposited
in the Fund;
``(iv) accrue interest;
``(v) guarantee or purchase insurance for
local obligations to improve credit market access
or reduce interest rates for a project that is in
accordance with the strategic plan; or
``(vi) sell assets, loans, and equity
interests acquired in connection with the
financing of projects funded by the Center.
``(4) Loans.--
``(A) Rate.--A loan from the Fund may be made at an
interest rate that is below the market rate or may be
interest free.
``(B) Term.--The term of a loan may not exceed the
shorter of--
``(i) the useful life of the activity
financed; or
``(ii) 40 years.
``(C) Source of repayment.--The Center may not make
a loan from the Fund unless the recipient establishes an
assured source of repayment.
``(D) Proceeds.--All payments of principal and
interest on a loan made from the Fund shall be deposited
into the Fund.
``(5) Maintenance of effort.--The Center shall use the Fund
only to supplement and not
to supplant Federal, State, and
private funds expended for
rural development.
``(6) Funding.--
``(A) Deposit of funds.--All Federal and non-Federal
amounts received by the Center to carry out this section
shall be deposited in the Fund.
``(B) Mandatory funds.--Out of any moneys in the
Treasury not otherwise appropriated, the Secretary of
the Treasury shall provide to the Center not to exceed
$20,000,000 to carry out this section.
``(C) Additional funds.--In addition to any funds
provided under subparagraph (B), there is authorized to
be appropriated $30,000,000 to carry out this section.
``(D) Privatization.--No additional Federal funds
shall be used to carry out this section beginning on the
earlier of--
``(i) the date that is 10 years after the date
of enactment of this section; or
``(ii) the day after a total of $50,000,000
has been made available under subparagraphs (B)
and (C) to carry out this section.
``(f) Board of Directors.--
``(1) In general.--The management of the Center shall be
vested in a Board of Directors.
``(2) Powers.--The Board shall--
``(A) be responsible for the general supervision of
the Center;
``(B) review any grant, loan, contract, or
cooperative agreement to be made or entered into by the
Center and any financial assistance provided to the
Center;
``(C) make the final decision, by majority vote, on
whether and how to provide assistance to an applicant;
and
``(D) develop and establish a budget plan and a
long-term operating plan to carry out the goals of the
Center.
``(3) Composition.--The Board shall be composed of--
``(A) 7 voting members, of whom--
``(i) 4 members shall be active producers of
sheep or goats in the United States;
``(ii) 2 members shall have expertise in
finance and management; and
``(iii) 1 member shall have expertise in lamb,
wool, goat, or goat product marketing; and
``(B) 2 nonvoting members, of whom--
``(i) 1 member shall be the Under Secretary of
Agriculture for Rural Development; and
``(ii) 1 member shall be the Under Secretary
of Agriculture for Research, Education, and
Economics.
``(4) Nomination.--
``(A) Nominating body.--The Secretary shall appoint
the voting members of the Board from nominations
submitted by organizations described in subparagraph
(B).
``(B) National organizations.--A national
organization is described in this subparagraph if the
organization--
``(i) consists primarily of active sheep or
goat producers in the United States; and
``(ii) has as the primary interest of the
organization the production of sheep or goats in
the United States.
``(5) Term of office.--
``(A) In general.--Subject to subparagraph (B), the
term of office of a voting member of the Board shall be
3 years.
``(B) Staggered initial terms.--The initial voting
members of the Board (other than the chairperson of the
initially established Board) shall serve for staggered
terms of 1, 2, and 3 years, as determined by the
Secretary.
``(C) Reelection.--A voting member may be reelected
for not more than 1 additional term.
``(6) Vacancy.--
``(A) In general.--A vacancy on the Board shall be
filled in the same manner as the original Board.
``(B) Reelection.--A member elected to fill a
vacancy for an unexpired term may be reelected for 1
full term.
``(7) Chairperson.--
``(A) In general.--The Board shall select a
chairperson from among the voting members of the Board.
``(B) Term.--The term of office of the chairperson
shall be 2 years.
``(8) Annual meeting.--
``(A) In general.--The Board shall meet not less
than once each fiscal year at the call of the
chairperson or at the request of the executive director
appointed under subsection (g)(1).
``(B) Location.--The location of a meeting of the
Board shall be established by the Board.
``(9) Voting.--
``(A) Quorum.--A quorum of the Board shall consist
of a majority of the voting members.
``(B) Majority vote.--A decision of the Board shall
be made by a majority of the voting members of the
Board.
``(10) Conflicts of interest.--
``(A) In general.--Except as provided in
subparagraph (D), a member of the Board shall not vote
on any matter respecting any application, contract,
claim, or other particular matter pending before the
Board in which, to the knowledge of the member, an
interest is held by--
``(i) the member;
``(ii) any spouse of the member;
``(iii) any child of the member;
``(iv) any partner of the member;
``(v) any organization in which the member is
serving as an officer, director, trustee, partner,
or employee; or
``(vi) any person with whom the member is
negotiating or has any arrangement concerning
prospective employment or with whom the member has
a financial interest.
``(B) Removal.--Any action by a member of the Board
that violates subparagraph (A) shall be cause for
removal from the Board.
``(C) Validity of action.--An action by a member of
the Board that violates subparagraph (A) shall not
impair or otherwise affect the validity of any otherwise
lawful action by the Board.
``(D) Disclosure.--
``(i) In general.--If a member of the Board
makes a full disclosure of an interest and, prior
to any participation by the member, the Board
determines, by majority vote, that the interest is
too remote or too inconsequential to affect the
integrity of any participation by the member, the
member may participate in the matter relating to
the interest, except as provided in subparagraph
(E)(iii).
``(ii) Vote.--A member that discloses an
interest under clause (i) shall not vote on a
determination of whether the member may
participate in the matter relating to the
interest.
``(E) Remands.--
``(i) In general.--The Secretary may vacate
and remand to the Board for reconsideration any
decision made pursuant to subsection (e)(3)(H) if
the Secretary determines that there has been a
violation of this paragraph or any conflict of
interest provision of the bylaws of the Board with
respect to the decision.
``(ii) Reasons.--In the case of any violation
and remand of a funding decision to the Board
under clause (i), the Secretary shall inform the
Board of the reasons for the remand.
``(iii) Conflicted members not to vote on
remanded decisions.--If a decision with respect to
a matter is remanded to the Board by reason of a
conflict of interest faced by a Board member, the
member may not participate in any subsequent
decision with respect to the matter.
``(11) Compensation.--
``(A) In general.--A member of the Board shall not
receive any compensation by reason of service on the
Board.
``(B) Expenses.--A member of the Board shall be
reimbursed for travel, subsistence, and other necessary
expenses incurred by the member in the performance of a
duty of the member.
``(12) Bylaws.--The Board shall adopt, and may from time to
time amend, any bylaw that
is necessary for the proper
management and functioning
of the Center.
``(13) Public hearings.--Not later than 1 year after the
date of enactment of this
section, the Board shall hold public
hearings on policy objectives
of the program established under
this section.
``(14) Organizational system.--The Board shall provide a
system of organization to
fix responsibility and promote
efficiency in carrying out
the functions of the Board.
``(15) Use of department of agriculture.--The Board may,
with the consent of the
Secretary, utilize the facilities of and
the services of employees
of the Department of Agriculture,
without cost to the Center.
``(g) Officers and Employees.--
``(1) Executive director.--
``(A) In general.--The Board shall appoint an
executive director to be the chief executive officer of
the Center.
``(B) Tenure.--The executive director shall serve at
the pleasure of the Board.
``(C) Compensation.--Compensation for the executive
director shall be established by the Board.
``(2) Other officers and employees.--The Board may select
and appoint officers, attorneys,
employees, and agents who shall
be vested with such powers
and duties as the Board may
determine.
``(3) Delegation.--The Board may, by resolution, delegate to
the chairperson, the executive
director, or any other officer or
employee any function, power,
or duty of the Board other
than voting on a grant,
loan, contract, agreement, budget, or
annual strategic plan.
``(h) Consultation.--To carry out this section, the
Board may
consult with--
``(1) State departments of agriculture;
``(2) Federal departments and agencies;
``(3) nonprofit development corporations;
``(4) colleges and universities;
``(5) banking and other credit-related agencies;
``(6) agriculture and agribusiness organizations; and
``(7) regional planning and development organizations.
``(i) Oversight.--
``(1) In general.--The Secretary shall review and monitor
compliance by the Board
and the Center with this section.
``(2) Sanctions.--If, following notice and opportunity for a
hearing, the Secretary finds
that the Board or the Center is not
in compliance with this
section, the Secretary may--
``(A) cease making deposits to the Fund;
``(B) suspend the authority of the Center to
withdraw funds from the Fund; or
``(C) impose other appropriate sanctions, including
recoupment of money improperly expended for purposes
prohibited or not authorized by this Act and
disqualification from receipt of financial assistance
under this section.
``(3) Rescission of sanctions.--The Secretary shall rescind
sanctions imposed under
paragraph (2) on a finding by the
Secretary that there is
no longer any failure by the Board or
the Center to comply with
this section or that the noncompliance
will be promptly corrected.''.
SEC. 759A. COOPERATIVE AGREEMENTS.
Section 607(b) of the Rural Development Act of 1972
(7 U.S.C.
2204b(b)) is amended by striking paragraph (4) and inserting the
following:
``(4) Cooperative agreements.--
``(A) In general.--Notwithstanding chapter 63 of
title 31, United States Code, the Secretary may enter
into cooperative agreements with other Federal agencies,
State and local governments, and any other organization
or individual to improve the coordination and
effectiveness of Federal programs, services, and actions
affecting rural areas, including the establishment and
financing of interagency groups, if the Secretary
determines that the objectives of the agreement will
serve the mutual interest of the parties in rural
development activities.
``(B) Cooperators.--Each cooperator, including each
Federal agency, to the extent that funds are otherwise
available, may participate in any cooperative agreement
or working group established pursuant to this paragraph
by contributing funds or other resources to the
Secretary to carry out the agreement or functions of the
group.''.
SEC. 759B. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.
Section 310B(f) of the Consolidated Farm and Rural
Development Act
(7 U.S.C. 1932(f)) (as redesignated by section 747(a)(6)) is amended
by
striking ``Systems.--The'' and inserting ``Systems.--
``(1) Definition of statewide.--In this subsection, the term
`statewide' means having
a coverage area of not less
than 90 percent of the population
of a State and not less than
80 percent of the rural
land area of the State (as determined by
the Secretary).
``(2) Grants.--The''.
CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM
SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.
The Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et
seq.) is amended by adding at the end the following:
``Subtitle E--Rural Community Advancement Program
``SEC. 381A. <<NOTE: 7 USC 2009.>> DEFINITIONS.
``In this subtitle:
``(1) Rural and rural area.--The terms `rural' and `rural
area' mean, subject to section
306(a)(7), a city, town, or
unincorporated area that
has a population of 50,000 inhabitants
or less, other than an urbanized
area immediately adjacent to a
city, town, or unincorporated
area that has a population in
excess of 50,000 inhabitants.
``(2) State.--The term `State' means each of the 50 States,
the District of Columbia,
the Commonwealth of Puerto Rico, Guam,
the Virgin Islands of the
United States, American Samoa, the
Commonwealth of the Northern
Mariana Islands, the Trust
Territory of the Pacific
Islands, and the Federated States of
Micronesia.
``(3) State director.--The term `State director' means, with
respect to a State, the
Director of the Rural Economic and
Community Development State
Office.
``SEC. 381B. <<NOTE: 7 USC 2009a.>> ESTABLISHMENT.
``The Secretary shall establish a rural community
advancement
program to provide grants, loans, loan guarantees, and other assistance
to meet the rural development needs of local communities in States
and
federally recognized Indian tribes.
``SEC. 381C. <<NOTE: 7 USC 2009b.>> NATIONAL OBJECTIVES.
``The national objectives of the program established
under this
subtitle shall be to--
``(1) promote strategic development activities and
collaborative efforts by
State and local communities, and
federally recognized Indian
tribes, to maximize the impact of
Federal assistance;
``(2) optimize the use of resources;
``(3) provide assistance in a manner that reflects the
complexity of rural needs,
including the needs for business
development, health care,
education, infrastructure, cultural
resources, the environment,
and housing;
``(4) advance activities that empower, and build the
capacity of, State and local
communities to design unique
responses to the special
needs of the State and local
communities, and federally
recognized Indian tribes, for rural
development assistance;
and
``(5) adopt flexible and innovative approaches to solving
rural development problems.
``SEC. 381D. <<NOTE: 7 USC 2009c.>> STRATEGIC PLANS.
``(a) In General.--The Secretary shall direct each
of the Directors
of Rural Economic and Community Development State Offices to prepare
a
strategic plan--
``(1) for each State for the delivery of assistance under
this subtitle in the State;
and
``(2) for each federally recognized Indian tribe for the
delivery of assistance under
this subtitle to the Indian tribe.
``(b) Assistance.--
``(1) In general.--Financial assistance for rural
development provided under
this subtitle for a State or a
federally recognized Indian
tribe shall be used only for orderly
community development that
is consistent with the strategic plan
of the State or Indian tribe.
``(2) Rural area.--Assistance under this subtitle may only
be provided in a rural area.
``(3) Small communities.--In carrying out this subtitle in a
State, the Secretary shall
give priority to communities with the
smallest populations and
lowest per capita income.
``(c) Review.--The Secretary shall review the strategic
plan of each
State and federally recognized Indian tribe not later than 60 days
after
receiving the plan, and at least once every 5 years thereafter.
``(d) Contents.--A strategic plan of a State or
federally recognized
Indian tribe under this section shall be a plan that--
``(1) coordinates economic, human, and community development
plans and related activities
proposed for an affected area;
``(2) provides that the State or federally recognized Indian
tribe, as appropriate, and
an affected community (including
local institutions and organizations
that have contributed to
the planning process) shall
act as full partners in the process
of developing and implementing
the plan;
``(3) identifies goals, methods, and benchmarks for
measuring the success of
carrying out the plan and how the plan
relates to local or regional
ecosystems;
``(4) in the case of a State, provides for the involvement,
in the preparation of the
plan, of State, local, private, and
public persons, State rural
development councils, federally
recognized Indian tribes
in the State, and community-based
organizations;
``(5) identifies the amount and source of Federal and non-
Federal resources that are
available for carrying out the plan;
and
``(6) includes such other information as may be required by
the Secretary.
``SEC. 381E. <<NOTE: 7 USC 2009d.>> RURAL DEVELOPMENT TRUST FUND.
``(a) Establishment.--There is established in the
Treasury of the
United States a trust fund which shall be known as the Rural Development
Trust Fund (in this subtitle referred to as the `Trust Fund').
``(b) Accounts.--There are established in the Trust
Fund the
following accounts:
``(1) The rural community facilities account.
``(2) The rural utilities account.
``(3) The rural business and cooperative development
account.
``(4) The national reserve account.
``(5) The federally recognized Indian tribe account.
``(c) Deposits Into Accounts.--Notwithstanding any
other provision
of law, each fiscal year--
``(1) all amounts made available to carry out the
authorities described in
subsection (d)(1) for the fiscal year
shall be deposited into
the rural community facilities account
of the Trust Fund;
``(2) all amounts made available to carry out the
authorities described in
subsection (d)(2) for the fiscal year
shall be deposited into
the rural utilities account of the Trust
Fund; and
``(3) all amounts made available to carry out the
authorities described in
subsection (d)(3) for the fiscal year
shall be deposited into
the rural business and cooperative
development account of the
Trust Fund.
``(d) Function Categories.--The function categories
described in
this subsection are the following:
``(1) Rural community facilities.--The rural community
development category consists
of all amounts made available
for--
``(A) community facility direct and guaranteed loans
under section 306(a)(1); or
``(B) community facility grants under section
306(a)(19).
``(2) Rural utilities.--The rural utilities category
consists of all amounts
made available for--
``(A) water or waste disposal grants or direct or
guaranteed loans under paragraph (1) or (2) of section
306(a);
``(B) rural water or wastewater technical assistance
and training grants under section 306(a)(14);
``(C) emergency community water assistance grants
under section 306A; or
``(D) solid waste management grants under section
310B(b).
``(3) Rural business and cooperative development.--The rural
business and cooperative
development category consists of all
amounts made available for--
``(A) rural business opportunity grants under
section 306(a)(11)(A);
``(B) business and industry guaranteed loans under
section 310B(a)(1); or
``(C) rural business enterprise grants or rural
educational network grants under section 310B(c).
``(e) National Reserve Account.--
``(1) Transfers into account.--
``(A) Initial transfer.--Each fiscal year, the
Secretary shall transfer to the national reserve account
of the Trust Fund from each account specified in
subsection (c) not more than the applicable percentage
of the amount deposited in each such account for the
fiscal year under subsection (c).
``(B) Repooling of unobligated funds allocated among
the states.--Not earlier than July 15 of each fiscal
year, the Secretary shall transfer to the national
reserve account from each account specified in
subsection (c) any amount in the account that is
allocated for any State, and has not been obligated by
the State director or obligated for specific approved
projects in the State.
``(2) Use.--The Secretary may use amounts in the national
reserve account of the Trust
Fund, pursuant to any authority
described in subsection
(d)--
``(A) in the case of a fiscal year other than fiscal
year 2001 or 2002--
``(i) to meet situations of exceptional need;
``(ii) to meet emergency situations; or
``(iii) to provide funds to entities whose
applications for funds provided under this
subtitle have been approved and who have not
received funds sufficient to meet the needs of the
projects described in the applications; or
``(B) in the case of fiscal years 2001 and 2002--
``(i) to meet situations of exceptional need;
or
``(ii) to meet emergency situations.
``(3) Applicable percentage defined.--In paragraph (1), the
term `applicable percentage'
means, with respect to a fiscal
year--
``(A) 15 percent for fiscal year 1997;
``(B) 12.5 percent for fiscal year 1998;
``(C) 10 percent for fiscal year 1999;
``(D) 7.5 percent for fiscal year 2000;
``(E) 5 percent for fiscal year 2001; and
``(F) 5 percent for fiscal year 2002.
``(f) Federally Recognized Indian Tribe Account.--
``(1) Transfers into account.--Each fiscal year, the
Secretary shall transfer
to the federally recognized Indian
tribe account of the Trust
Fund 3 percent of the amount
deposited into the Trust
Fund for the fiscal year under
subsection (d).
``(2) Use of funds.--The Secretary shall make available to
federally recognized Indian
tribes the amounts in the federally
recognized Indian tribe
account for use pursuant to any
authority described in subsection
(d).
``(g) Allocation Among States.--The Secretary shall
allocate the
amounts in each account specified in subsection (c) among the States
in
a fair, reasonable, and appropriate manner that takes into consideration
rural population, levels of income, unemployment, and other relevant
factors, as determined by the Secretary.
``(h) Availability of Funds Allocated for States.--The
Secretary
shall make available to each State the total amount allocated for the
State under subsection (g) of this section that remains after applying
section 381G.
``SEC. 381F. <<NOTE: 7 USC 2009e.>> TRANSFERS OF FUNDS.
``(a) General Authority.--Subject to subsection (b)
of this section,
the State Director of any State may, during any fiscal year, transfer
from each account specified in section 381E(c) a total of not more
than
25 percent of the amount in the account that is allocated for the State
for the fiscal year to any other account in which amounts are allocated
for the State for the fiscal year.
``(b) Limitation.--Except as provided in subsection
(c) of this
section, a transfer otherwise authorized by subsection (a) of this
section to be made during a fiscal year may not be made to the extent
that the sum of the amount to be transferred and all amounts
so transferred by State directors under subsection (a) of this section
during the fiscal year exceeds 10 percent of the total amount made
available to carry out the authorities described in section 381E(d)
for
the fiscal year.
``(c) Exceptions.--Subsections (a) and (b) shall
not apply to a
transfer of funds by a State director if the State director certifies
to
the Secretary that--
``(1) there is an approved application for a project in the
function category to which
the funds are to be transferred but
funds are not available
for the project in the function
category; and
``(2)(A) there is no such approved application in the
function category from which
the funds are to be transferred; or
``(B) the community that would benefit from the project has
a smaller population and
a lesser per capita income than any
community that would benefit
from a project in the function
category from which the
funds are to be transferred.
``SEC. 381G. <<NOTE: 7 USC 2009f.>> GRANTS TO STATES.
``(a) Simple Grants.--
``(1) Mandatory grant.--The Secretary shall make a grant to
any eligible State for any
fiscal year for which the State
requests a grant under this
section in an amount equal to 5
percent of the total amount
allocated for the State under
section 381E(g).
``(2) Permissive grant.--Before July 15 of each fiscal year,
the Secretary may make a
grant to any State to defray the cost
of any subsidy associated
with a guarantee provided by an
eligible public entity of
the State under section 381H in an
amount that does not exceed
5 percent of the total amount
allocated for the State
under section 381E(g).
``(3) Source of funds.--The Secretary shall make grants to a
State under paragraphs (1)
and (2) from amounts allocated for
the State in the accounts
specified in section 381E(c), by
reducing each such allocated
amount by the same percentage.
``(b) Matching Grants.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall make a grant to any
eligible State for any fiscal year for
which the State requests
a grant under this section in an amount
equal to 5 percent of the
amount allocated for the State for the
fiscal year under section
381E(h).
``(2) Eligibility.--A State shall be eligible for a grant
under paragraph (1) if the
State makes commitments to the
Secretary to--
``(A) expend from non-Federal sources in accordance
with subsection (c) an amount that is not less than 200
percent of the amount of the grant; and
``(B) maintain the amounts paid to the State under
this subsection and the amount referred to in
subparagraph (A) in an account separate from all other
State funds until expended in accordance with subsection
(c).
``(3) Source of funds.--If the Secretary makes a grant under
paragraph (1) before July
15 of the fiscal year, the grant shall
be made from amounts allocated
for the State in the accounts
specified in section 381E(c)
for the fiscal year, by reducing
each allocated amount by
the same percentage.
``(c) Use of Funds.--A State to which funds are
provided under this
section shall use the funds in rural areas for any activity authorized
under the authorities described in section 381E(d) in accordance with
the State strategic plan referred to in section 381D.
``(d) Maintenance of Effort.--The State shall provide
assurances to
the Secretary that funds provided to the State under this section will
be used only to supplement, not to supplant, the amount of Federal,
State, and local funds otherwise expended for rural development
assistance in the State.
``(e) Appeals.--The Secretary shall provide to a
State an
opportunity to appeal any action taken with respect to the State under
this section.
``(f) Administrative Costs.--Federal funds shall
not be used for any
administrative costs incurred by a State in carrying out this subtitle.
``(g) Expenditure of Funds by State.--
``(1) In general.--Payments to a State from a grant under
this section for a fiscal
year shall be obligated by the State
in the fiscal year or in
the succeeding fiscal year. A State
shall obligate funds under
this section to provide assistance to
rural areas.
``(2) Failure to obligate.--If a State fails to obligate
payments in accordance with
paragraph (1), the Secretary shall
make an equal reduction
in the amount of payments provided to
the State under this section
for the immediately succeeding
fiscal year.
``(3) Noncompliance.--
``(A) Review.--The Secretary shall review and
monitor State compliance with this section.
``(B) Penalty.--If the Secretary finds that there
has been misuse of grant funds provided under this
section, or noncompliance with any of the terms and
conditions of a grant, after reasonable notice and
opportunity for a hearing--
``(i) the Secretary shall notify the State of
the finding; and
``(ii) no further payments to the State shall
be made with respect to the programs funded under
this section until the Secretary is satisfied that
there is no longer any failure to comply or that
the noncompliance will be promptly corrected.
``(C) Other sanctions.--In the case of a finding of
noncompliance made pursuant to subparagraph (B), the
Secretary may, in addition to, or in lieu of, imposing
the sanctions described in subparagraph (B), impose
other appropriate sanctions, including recoupment of
money improperly expended for purposes prohibited or not
authorized by this section and disqualification from the
receipt of financial assistance under this section.
``(h) No Entitlement to Contract, Grant, or Assistance.--Nothing
in
this subtitle--
``(1) entitles any person to assistance or a contract or
grant; or
``(2) limits the right of a State to impose additional
limitations or conditions
on assistance or a contract or grant
under this section.
``SEC. 381H. <<NOTE: 7 USC 2009g.>> GUARANTEE AND COMMITMENT
TO
GUARANTEE LOANS.
``(a) Definition of Eligible Public Entity.--In this
section, the
term `eligible public entity' means any unit of general local
government.
``(b) Guarantee and Commitment.--The Secretary,
on such terms and
conditions as the Secretary may prescribe, may guarantee and make
commitments to guarantee notes or other obligations issued by eligible
public entities, or by public agencies designated by the eligible public
entities, for the purposes of financing rural development activities
authorized and funded under section 381G.
``(c) Limitation.--The Secretary may not make a
guarantee or
commitment to guarantee with respect to a note or other obligation
if
the total amount of outstanding notes or obligations guaranteed under
this section (excluding any amount repaid under the contract entered
into under subsection (e)(1)(A)) for issuers in the State would exceed
an amount equal to 5 times the sum of the total amount of grants made
to
the State under section 381G.
``(d) Payment of Principal, Interest, and Costs.--Notwithstanding
any other provision of this subtitle, a State to which a grant is made
under section 381G may use the grant (including program income derived
from the grant) to pay principal and interest due (including such
servicing, underwriting, or other costs as may be specified in
regulations of the Secretary) on any note or other obligation guaranteed
under this section.
``(e) Repayment Contract; Security.--
``(1) In general.--To ensure the repayment of notes or other
obligations and charges
incurred under this section and as a
condition for receiving
the guarantees, the Secretary shall
require the issuer to--
``(A) enter into a contract, in a form acceptable to
the Secretary, for repayment of notes or other
obligations guaranteed under this section;
``(B) pledge any grant for which the issuer may
become eligible under this subtitle; and
``(C) furnish, at the discretion of the Secretary,
such other security as may be considered appropriate by
the Secretary in making the guarantees.
``(2) Security.--To assist in ensuring the repayment of
notes or other obligations
and charges incurred under this
section, a State shall pledge
any grant for which the State may
become eligible under this
subtitle as security for notes or
other obligations and charges
issued under this section by any
eligible public entity in
the State.
``(f) Pledged Grants for Repayments.--Notwithstanding
any other
provision of this subtitle, the Secretary may apply grants pledged
pursuant to paragraphs (1)(B) and (2) of subsection (e) to any
repayments due the United States as a result of the guarantees.
``(g) Outstanding Obligations.--The total amount
of outstanding
obligations guaranteed on a cumulative basis by the Secretary pursuant
to subsection (b) shall not at any time exceed such amount as may be
authorized to be appropriated for such purpose for any fiscal year.
``(h) Purchase of Guaranteed Obligations by Federal
Financing
Bank.--Notes or other obligations guaranteed under this section may
not
be purchased by the Federal Financing Bank.
``(i) Full Faith and Credit.--The full faith and
credit of the
United States is pledged to the payment of all guarantees made under
this section. Any such guarantee made by the Secretary shall be
conclusive evidence of the eligibility of the obligations for the
guarantee with respect to principal and interest. The validity of the
guarantee shall be incontestable in the hands of a holder of the
guaranteed obligations.
``SEC. 381I. <<NOTE: 7 USC 2009h.>> LOCAL INVOLVEMENT.
``An application for assistance under this subtitle
shall include
evidence of significant community support for the project for which
the
assistance is requested. In the case of assistance for a community
facilities or infrastructure project, the evidence shall be in the
form
of a certification of support for the project from each affected general
purpose local government.
``SEC. 381J. <<NOTE: 7 USC 2009i.>> INTERSTATE COLLABORATION.
``The Secretary shall permit the establishment of
voluntary pooling
arrangements among States, and regional fund-sharing agreements, to
carry out projects receiving assistance under this subtitle.
``SEC. 381K. <<NOTE: 7 USC 2009j.>> ANNUAL REPORT.
``(a) In General.--The Secretary, in collaboration
with State,
local, public, and private entities, State rural development councils,
and community-based organizations, shall prepare an annual report that
contains evaluations, assessments, and performance outcomes concerning
the rural community advancement programs carried out under this
subtitle.
``(b) Submission.--Not later than March 1 of each
year, the
Secretary shall--
``(1) submit the report required by subsection (a) to
Congress and the chief executives
of the States participating in
the program established
under this subtitle; and
``(2) make the report available to State and local
participants.
``SEC. 381L. <<NOTE: 7 USC 2009k.>> RURAL DEVELOPMENT INTERAGENCY
WORKING GROUP.
``(a) In General.--The Secretary shall provide leadership
within the
Executive branch for, and assume responsibility for, establishing an
interagency working group chaired by the Secretary.
``(b) Duties.--The working group shall establish
policy for,
coordinate, make recommendations with respect to, and evaluate the
performance of, all Federal rural development efforts.
``SEC. 381M. <<NOTE: 7 USC 2009l.>> DUTIES OF RURAL ECONOMIC
AND
COMMUNITY DEVELOPMENT STATE OFFICES.
``In carrying out this subtitle, the Director of
a Rural Economic
and Community Development State Office shall--
``(1) to the maximum extent practicable, ensure that the
State strategic plan referred
to in section 381D is implemented;
``(2) coordinate community development objectives within the
State;
``(3) establish links between local, State, and field office
program administrators of
the Department of Agriculture;
``(4) ensure that recipient communities comply with
applicable Federal and State
laws and requirements; and
``(5) integrate State development programs with assistance
under this subtitle.
``SEC. 381N. <<NOTE: 7 USC 2009m.>> ELECTRONIC TRANSFER.
``The Secretary shall transfer funds in accordance
with this
subtitle through electronic transfer as soon as practicable after the
date of enactment of this subtitle.
``SEC. 381O. <<NOTE: 7 USC 2009n.>> RURAL VENTURE CAPITAL
DEMONSTRATION
PROGRAM.
``(a) In General.--The Secretary may designate for
each fiscal year
up to 10 community development venture capital organizations to
demonstrate the utility of guarantees to attract increased private
investment in rural private business enterprises.
``(b) Rural Business Investment Pool.--
``(1) Establishment.--To be eligible to participate in the
demonstration program, an
organization referred to in subsection
(a) shall establish a rural
business private investment pool
(referred to in this subsection
as a `pool') for the purpose of
making equity investments
in rural private business enterprises.
``(2) Guarantee.--From amounts in the national reserve
account of the Trust Fund,
the Secretary shall guarantee the
funds in a pool against
loss, except that the guarantee shall
not exceed an amount equal
to 30 percent of the total funds in
the pool.
``(3) Amount.--The Secretary shall issue guarantees covering
not more than $15,000,000
of contingent liabilities for each of
fiscal years 1996 through
2002.
``(4) Term.--The term of a guarantee provided under this
subsection shall not exceed
10 years.
``(5) Submission of plan.--To be eligible to participate in
the demonstration program,
an organization referred to in
subsection (a) shall submit
a plan that describes--
``(A) potential sources and uses of the pool to be
established by the organization;
``(B) the utility of the guarantee authority in
attracting capital for the pool; and
``(C) on selection, mechanisms for notifying State,
local, and private nonprofit business development
organizations and businesses of the existence of the
pool.
``(6) Competition.--
``(A) In general.--The Secretary shall conduct a
competition for the designation and establishment of
pools.
``(B) Priority.--In conducting the competition, the
Secretary shall give priority to organizations that--
``(i) have a demonstrated record of
performance, or have a board and executive
director with experience, in venture capital,
small business equity investment, or community
development finance;
``(ii) propose to serve low-income
communities;
``(iii) propose to maintain an average
investment of not more than $500,000 from the pool
of the organization;
``(iv) invest funds statewide or in a
multicounty region; and
``(v) propose to target job opportunities
resulting from the investments primarily to
economically disadvantaged individuals, as determined by the
Secretary.
``(C) Geographic diversity.--To the extent
practicable, the Secretary shall designate organizations
in diverse geographic areas.''.
SEC. 762. <<NOTE: 7 USC 2204b note.>>
SIMPLIFIED, UNIFORM APPLICATION
FOR ASSISTANCE FROM ALL FEDERAL RURAL DEVELOPMENT PROGRAMS.
Not later than 1 year after the date of enactment
of this Act, the
Secretary of Agriculture shall develop a streamlined, simplified, and
uniform application which shall be used in applying for assistance
under
all of the following:
(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375
and subtitle E of the Consolidated
Farm and Rural Development
Act (7 U.S.C. 1924(b), 1926,
1926a, 1926c, 1926d, and 1932).
(2) Subtitle G of title XVI and sections 2281, 2333, and
2381 of the Food, Agriculture,
Conservation, and Trade Act of
1990 (7 U.S.C. 5901-5908,
5177a, 950aaa-2, and 3125b).
(3) Subtitle C of title IX of the Food, Agriculture,
Conservation, and Trade
Act Amendments of 1991 (Public Law 102-
237: 7 U.S.C. 5930 note).
(4) Section 1323(b) of the Food Security Act of 1985 (Public
Law 99-198; 7 U.S.C. 1932
note).
(5) Title V and section 603(c) of the Rural Development Act
of 1972 (7 U.S.C. 2661-2669
and 2204a(c)).
(6) Sections 5 and 311 and title IV of the Rural
Electrification Act of 1936
(7 U.S.C. 905, 940a, and 941-950b).
SEC. 763. COMMUNITY FACILITIES GRANT PROGRAM.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7
U.S.C. 1926(a)) (as amended by section 741(a)(5)) is amended by adding
at the end the following:
``(19) Community facilities grant program.--
``(A) In general.--The Secretary may make grants, in
a total amount not to exceed $10,000,000 for any fiscal
year, to associations, units of general local
government, nonprofit corporations, and federally
recognized Indian tribes to provide the Federal share of
the cost of developing specific essential community
facilities in rural areas.
``(B) Federal share.--
``(i) In general.--Except as provided in
clauses (ii) and (iii), the Secretary shall, by
regulation, establish the amount of the Federal
share of the cost of the facility under this
paragraph.
``(ii) Maximum amount.--The amount of a grant
provided under this paragraph for a facility shall
not exceed 75 percent of the cost of developing
the facility.
``(iii) Graduated scale.--The Secretary shall
provide for a graduated scale for the amount of
the Federal share provided under this paragraph,
with higher Federal shares for facilities in
communities that have lower community population
and income levels, as determined by the
Secretary.''.
Subtitle C--Amendments to the Rural Electrification Act of 1936
SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.
Section 2 of the Rural Electrification Act of 1936
(7 U.S.C. 902) is
amended--
(1) by striking ``Sec. 2. (a) The Secretary of Agriculture
is'' and inserting the following:
``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.
``(a) Loans.--The Secretary of Agriculture (referred
to in this Act
as the `Secretary') is'';
(2) in subsection (a)--
(A) by striking ``and the furnishing'' the first
place it appears and all that follows through ``central
station service''; and
(B) by striking ``systems; to make'' and all that
follows and inserting ``systems.''; and
(3) by striking subsection (b) and inserting the following:
``(b) Investigations and Reports.--The Secretary
may make, or cause
to be made, studies, investigations, and reports regarding matters,
including financial, technological, and regulatory matters, affecting
the condition and progress of electric, telecommunications, and economic
development in rural areas, and publish and disseminate information
with
respect to the matters.''.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 3 of the Rural Electrification
Act of 1936
(7 U.S.C. 903) is amended to read as follows:
``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums
as are necessary
to carry out this Act.''.
(b) Conforming Amendments.--
(1) Section 301(a) of the Rural Electrification Act of 1936
(7 U.S.C. 931(a)) is amended--
(A) by striking ``(a)'' the first place the term
appears; and
(B) in paragraph (3), by striking ``notwithstanding
section 3(a) of title I,''.
(2) Section 302(b)(2) of the Rural Electrification Act of
1936 (7 U.S.C. 932(b)(2))
is amended by striking ``pursuant to
section 3(a) of this Act''.
(3) The last sentence of section 406(a) of the Rural
Electrification Act of 1936
(7 U.S.C. 946(a)) is amended by
striking ``pursuant to section
3(a) of this Act''.
SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.
Section 4 of the Rural Electrification Act of 1936
(7 U.S.C. 904) is
amended--
(1) in the first sentence--
(A) by striking ``for the furnishing of'' and all
that follows through ``central station service and'';
and
(B) by striking ``the provisions of sections 3(d)
and 3(e) but without regard to the 25 per centum
limitation therein contained,'' and inserting ``section
3,'';
(2) in the second sentence, by striking ``: Provided
further, That all'' and
all that follows through ``loan: And
provided further, That''
and inserting ``, except that''; and
(3) in the third sentence, by striking ``and section 5''.
SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.
(a) In General.--Section 5 of the Rural Electrification
Act of 1936
(7 U.S.C. 905) is repealed.
(b) Conforming Amendments.--Section 12(a) of the
Rural
Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
(1) by striking ``: Provided, however, That'' and inserting
``, except that,''; and
(2) by striking ``, and with respect to any loan made under
section 5,'' and all that
follows through ``section 3''.
SEC. 775. TESTIMONY ON BUDGET REQUESTS.
Section 6 of the Rural Electrification Act of 1936
(7 U.S.C. 906) is
amended by striking the second sentence.
SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION
CREATED BY EXECUTIVE
ORDER.
Section 8 of the Rural Electrification Act of 1936
(7 U.S.C. 908) is
repealed.
Section 10 of the Rural Electrification Act of 1936
(7 U.S.C. 910)
is repealed.
SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE
FACILITY SERVICES
TO ELECTRIC CUSTOMERS.
The Rural Electrification Act of 1936 is amended
by inserting after
section 16 (7 U.S.C. 916) the following:
``SEC. 17. <<NOTE: 7 USC 917.>> PROHIBITION ON RESTRICTING
WATER AND
WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS.
``(a) Prohibition.--Assistance under any rural development
program
administered by the Secretary or any agency of the Department of
Agriculture shall not be conditioned on any requirement that the
recipient of the assistance accept or receive electric service from
any
particular utility, supplier, or cooperative.
``(b) <<NOTE: Regulations.>> Ensuring
Compliance.--The Secretary
shall establish, by regulation, adequate safeguards to ensure that
assistance under any rural development program is not subject to such
a
condition. The safeguards shall include periodic certifications and
audits, and appropriate measures and sanctions against any person
violating, or attempting to violate subsection (a).
``(c) Definition of Rural Development Programs.--In
this section,
the term `rural development program' means the following:
``(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375
and subtitle E of the Consolidated
Farm and Rural Development
Act (7 U.S.C. 1924(b), 1926,
1926a, 1926c, 1926d, and 1932).
``(2) Subtitle G of title XVI and sections 2281, 2333, and
2381 of the Food, Agriculture,
Conservation, and Trade Act of
1990 (7 U.S.C. 5901-5908,
5177a, 950aaa-2, and 3125b).
``(3) Subtitle C of title IX of the Food, Agriculture,
Conservation, and Trade
Act Amendments of 1991 (Public Law 102-
237; 7 U.S.C. 5930 note).
``(4) Section 1323(b) of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C.
1932 note).
``(5) Title V and section 603(c) of the Rural Development
Act of 1972 (7 U.S.C. 2661-2669
and 2204a(c)).
``(6) Sections 5 and 311 and title IV of this Act (7 U.S.C.
905, 940a, and 941-950b).
``(d) Regulations.--Not later than 60 days after
the date of
enactment of the Federal Agriculture Improvement and Reform Act of
1996,
the Secretary shall issue final regulations to ensure compliance with
subsection (a).''.
SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.
Section 309 of the Rural Electrification Act of 1936
(7 U.S.C. 939)
is amended--
(1) in subsection (a), by striking ``(a) In General.--'';
and
(2) by striking subsection (b).
SEC. 780. PRIVATIZATION PROGRAM.
Section 311 of the Rural Electrification Act of 1936
(7 U.S.C. 940a)
is repealed.
SEC. 781. RURAL BUSINESS INCUBATOR FUND.
(a) In General.--Section 502 of the Rural Electrification
Act of
1936 (7 U.S.C. 950aa-1) is repealed.
(b) Conforming Amendments.--Section 501 of the Rural
Electrification
Act of 1936 (7 U.S.C. 950aa) is amended--
(1) in paragraph (5), by inserting ``and'' at the end;
(2) in paragraph (6), by striking ``; and'' at the end and
inserting a period; and
(3) by striking paragraph (7).
Subtitle D--Miscellaneous Rural Development Provisions
SEC. 791. INTEREST RATE FORMULA.
(a) Bankhead-Jones Farm Tenant Act.--Section 32(e)
of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1011) is amended by striking the fifth
sentence and inserting the following: ``A loan under this subsection
shall be made under a contract that provides, under such terms and
conditions as the Secretary considers appropriate, for the repayment
of
the loan in not more than 30 years, with interest at a rate not to
exceed the current market yield for outstanding municipal obligations
with remaining periods to maturity comparable to the average maturity
for the loan, adjusted to the nearest \1/8\ of 1 percent.''.
(b) Watershed Protection and Flood Prevention Act.--Section
8 of the
Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a) is
amended by striking the second sentence and inserting the following:
``A
loan or advance under this section shall be made under a contract or
agreement that provides, under such terms and conditions as the
Secretary considers appropriate, for the repayment of the loan or
advance in not more than 50 years from the date when the principal
benefits of the works of improvement first become available, with
interest at a rate not to exceed the current market yield for
outstanding municipal obligations with remaining periods to maturity
comparable to the average maturity for the loan, adjusted to the nearest
\1/8\ of 1 percent.''.
SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS,
DISLOCATED FARMERS,
AND RURAL FAMILIES.
(a) In General.--Section 502 of the Rural Development
Act of 1972 (7
U.S.C. 2662) is amended by striking subsection (f).
(b) Conforming Amendments.--
(1) Section 2389 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public
Law 101-624; 7 U.S.C. 2662 note) is
amended by striking subsection
(d).
(2) Section 503(c) of the Rural Development Act of 1972 (7
U.S.C. 2663(c)) is amended--
(A) in paragraph (1)--
(i) by striking ``(1)'';
(ii) by striking ``section 502(e)'' and all
that follows through ``shall be distributed'' and
inserting ``subsections (e), (h), and (i) of
section 502 shall be distributed''; and
(iii) by striking ``objectives of'' and all
that follows through ``title'' and inserting
``objectives of subsections (e), (h), and (i) of
section 502''; and
(B) by striking paragraph (2).
SEC. 793. <<NOTE: 7 USC 2204f.>> FUND FOR RURAL AMERICA.
(a) In General.--There is established in the Treasury
of the United
States an account to be known as the Fund for Rural America (referred
to
in this section as the ``Account'') to provide funds for activities
described in subsection (c).
(b) Funding.--
(1) In general.--On January 1, 1997, October 1, 1998, and
October 1, 1999, out of
any funds in the Treasury not otherwise
appropriated, the Secretary
of the Treasury shall transfer
$100,000,000 to the Account.
(2) Entitlement.-- The Secretary of Agriculture (referred to
in this section as the ``Secretary'')--
(A) shall be entitled to receive the funds
transferred to the Account under paragraph (1);
(B) shall accept the funds; and
(C) shall use the funds to carry out this section.
(3) Purposes.--Subject to subsection (d), of the amounts
transferred to the Account
for a fiscal year, the Secretary
shall make available--
(A) for activities described in subsection (c)(1),
not less than \1/3\ and not more than \2/3\ of the funds
in the Account; and
(B) for activities described in subsection (c)(2),
all funds in the Account not made available by the
Secretary for activities described in subsection (c)(1).
(c) Activities.--
(1) Rural development.--
(A) In general.--The Secretary may use the funds in
the Account for a rural development activity--
(i) authorized under the Housing Act of 1949
for--
(I) direct loans to low-income
borrowers under section 502 (42 U.S.C.
1472);
(II) loans for financial assistance
for housing for domestic farm laborers
under section 514 (42 U.S.C. 1484);
(III) financial assistance for
housing for domestic farm laborers under
section 516 (42 U.S.C. 1486);
(IV) payments for elderly who are
not now receiving rental assistance
under section 521 (42 U.S.C. 1490a);
(V) grants and contracts for mutual
and self-help housing under section
523(b)(1)(A) (42 U.S.C. 1490c(b)(1)(A));
or
(VI) grants for rural housing
preservation under section 533 (42
U.S.C. 1490m); or
(ii) conducted under any rural development
program, including a program authorized under--
(I) the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.);
(II) subtitle G of title XVI and
title XXIII of the Food, Agriculture,
Conservation, and Trade Act of 1990;
(III) title V of the Rural
Development Act of 1971 (7 U.S.C. 2661
et seq.); or
(IV) section 1323(b) of the Food
Security Act of 1985 (Public Law 99-198;
7 U.S.C. 1932 note).
(B) Limitation on programs funded.--The Secretary
may not expend funds made available to carry out
activities described in subparagraph (A) for any
activity that did not receive appropriations for fiscal
year 1995. Funds expended under this section for any
program purpose shall be spent in accordance with and
subject to the applicable program limitations,
restrictions, and priorities found in the underlying
program authority and this Act.
(C) Limitation on housing assistance.--Not more than
20 percent of the funds made available to carry out
activities described in subparagraph (A) shall be made
available to carry out activities described in
subparagraph (A)(i).
(D) Disclosure of allocation.--For any fiscal year,
the Secretary shall not disclose the allocation of funds
under this section for any activity described in
subparagraph (A) until the date that is 1 day after the
date of enactment of legislation authorizing
appropriations for the Department of Agriculture for any
period in the fiscal year.
(2) Research.--
(A) In general.--The Secretary may use the funds in
the Account for research, extension, and education
grants to--
(i) increase international competitiveness,
efficiency, and farm profitability;
(ii) reduce economic and health risks;
(iii) conserve and enhance natural resources;
(iv) develop new crops, new crop uses, and new
agricultural applications of biotechnology;
(v) enhance animal agricultural resources;
(vi) preserve plant and animal germplasm;
(vii) increase economic opportunities in
farming and rural communities; and
(viii) expand locally-owned value-added
processing.
(B) Eligible grantee.--The Secretary may make a
grant under this paragraph to--
(i) a Federal research agency;
(ii) a national laboratory;
(iii) a college or university or a research
foundation maintained by a college or university;
or
(iv) a private research organization with an
established and demonstrated capacity to perform
research or technology transfer.
(C) Use of grant.--
(i) In general.--A grant made under this
paragraph may be used by a grantee for 1 or more
of the following uses:
(I) Outcome-oriented research at the
discovery end of the spectrum to provide
breakthrough results.
(II) Exploratory and advanced
development and technology with well-
identified outcomes.
(III) A national, regional, or
multi-State program oriented primarily
toward extension programs and education
programs demonstrating and supporting
the competitiveness of United States
agriculture.
(ii) Smaller institutions.--Of the amounts
made available for activities described in this
paragraph, not less than 15 percent shall be
awarded to colleges, universities, or research
foundations eligible for a grant under
subparagraph (B)(iii) that rank in the lowest \1/
3\ of such colleges, universities, and foundations
on the basis of Federal research funds received
under a provision of law other than this section.
(D) Administration.--
(i) Priority.--In administering this
paragraph, the Secretary shall--
(I) establish criteria for
allocating grants based on the
priorities in subparagraph (A) and in
consultation with the National
Agricultural Research, Extension,
Education, and Economics Advisory Board
established under section 1408 of the
National Agricultural Research,
Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3123);
(II) seek and accept proposals for
grants;
(III) determine the relevance and
merit of proposals through a system of
peer review and review by the National
Agricultural Research, Extension,
Education, and Economics Advisory Board;
and
(IV) award grants on the basis of
merit, quality, and relevance to
advancing the purposes of federally
supported agricultural research,
extension, and education provided in
section 1402 of the National
Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C.
3101).
(ii) Competitive basis.--A grant under this
paragraph shall be awarded on a competitive basis.
(iii) Terms.--A grant under this paragraph
shall have a term that does not exceed 5 years.
(iv) Matching funds.--As a condition of making
a grant under this paragraph, the Secretary shall
require the funding of the grant with equal
matching funds from a non-Federal source if the
grant is--
(I) for applied research that is
commodity-specific; and
(II) not of national scope.
(v) Delegation.--The Secretary shall
administer this section through the Cooperative
State Research, Education, and Extension Service
of the Department of Agriculture.
(vi) Availability of funds.--Funds shall be
available for obligation under this paragraph for
a 2-year period.
(vii) Administrative costs.--The Secretary may
use not more than 4 percent of the funds made
available for activities described in this
paragraph for administrative costs incurred by the
Secretary in carrying out this paragraph.
(viii) Buildings.--Funds made available for
activities described in this paragraph shall not
be used for the construction of a new building or
the acquisition, expansion, remodeling, or
alteration of an existing building (including site
grading and improvement and architect fees).
(d) Limitations.--Amounts in the Account may not
be used for an
activity described in subsection (c) for a fiscal year if the program
funding level for the fiscal year for the activity is less than 90
percent of the amount appropriated for the activity for fiscal year
1996, adjusted for inflation.
SEC. 794. UNDER SECRETARY OF AGRICULTURE FOR RURAL
ECONOMIC AND
COMMUNITY DEVELOPMENT RENAMED THE UNDER SECRETARY OF
AGRICULTURE FOR RURAL DEVELOPMENT.
(a) In General.--Section 231 of the Department of
Agriculture
Reorganization Act of 1994 (7 U.S.C. 6941) is amended--
(1) in the section heading, by striking ``economic and
community''; and
(2) by striking ``Economic and Community'' each place such
term appears in subsections
(a), (b), and (c).
(b) Conforming Amendment.--Section 5314 of title
5, United States
Code, is amended by striking ``Economic and Community''.