Rural Utilities Service

## BULLETIN 1790-1

**SUBJECT: [Nondiscrimination Among Beneficiaries of RUS
Programs]{.underline}**

**TO:** RUS Electric and Telecommunications Borrowers.

**EFFECTIVE DATE:** Date of Approval.

**EXPIRATION DATE:** Seven years from date of approval.

OFFICE OF PRIMARY INTEREST: Program Development and Regulatory Analysis.

**FILING INSTRUCTIONS:** This bulletin supersedes and rescinds RUS
Bulletin

20-19:320-19, Nondiscrimination Among Beneficiaries of RUS Programs,
issued July 1978.

**AVAILABILITY:** This bulletin can be accessed through the Internet at
http://www.usda.gov/rus/regs.html

**PURPOSE:** RUS firmly believes that good civil rights practices are
synonymous with good business practices for our borrowers. Maintaining a
good civil rights posture towards the consumers you serve and towards
the employees of your organization will improve your overall member
relations program which, in turn, will result in an improved corporate
image throughout your service area.

It is the established policy of RUS that no person in the United States
shall, on the grounds of race, color, or national origin, or solely by
reason of such person\'s disability or on the basis of age, be excluded
from participation in, be denied the benefits of, or otherwise be
subjected to discrimination under the RUS electric, telecommunication,
and rural development programs.

The bulletin provides information and guidance that RUS shall make
available to borrowers or applicants for financial assistance, to comply
with the following rules and regulations:

Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et
seq.); Section 504 of the Rehabilitation Act of 1973 as amended (29
U.S.C. 794); the Age Discrimination Act of 1975, as amended (42 U.S.C.
6101 et seq.); the rules and regulations of the Department of
Agriculture (the Department) implementing the provisions of Title VI of
the Civil Rights Act (7CFR Part 15); the rules and regulations of the
Department of Health and Human Services implementing the provisions of
the Age Discrimination Act (45 CFR Part 90) under which the Department
is operating until such time as the Department adopts its own
implementing rules and regulations (7 CFR Part 15, 7 CFR Part 15b, and
45 CFR Part 90 are hereinafter collectively called the Departmental
rules and regulations).

*/s/ Christopher A. McLean 1/28/00*

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Acting Administrator Date

**TABLE OF CONTENTS**

**[Page]{.underline}**

**1** Purpose 4

**2** Policy 4

**3** Procedures 4

**4** Provisions of Title VI of the Civil Rights Act, Section 504 of the
Rehabilitation Act,

and the Age Discrimination Act Applicable to RUS Borrowers 4

**5** Compliance Assurance (RUS Form 266) 5

**6** Public Notification Requirements 6

**7** Data Collection Requirements and Report of Compliance and
Participation 7

**8** Civil Rights Compliance Reviews 8

**9** Noncompliance Procedures 9

**10** Greater Participation by Minorities and Women 10

**11** Program accessibility 10

**12** Employment 11

**13** Other Civil Rights Statues, Orders, Rules, and Regulations Which
May Be

Applicable to RUS Borrowers 13

######## EXHIBITS

**Exhibit A:** RUS Form 266, Compliance Assurance 15

**Exhibit B:** Statement of Nondiscrimination 16

**Exhibit C:** RUS Form 268, Report of Compliance and Participation 17

INDEX:

**CIVIL RIGHTS:**

Nondiscrimination Among Beneficiaries of RUS Programs

**NONDISCRIMINATION:**

Civil Rights Title VI

Equal Employment

#### ABBREVIATIONS

##### CFR Code of Federal Register

##### CRS Civil Rights Staff, Rural Development

##### GFR General Field Representative

#### DEFINITIONS

**[Act]{.underline}** means the Rural Electrification Act of 1936, as
amended, (7 U.S.C. 901 *et seq.*).

**[Active borrower]{.underline}** means an electric or
telecommunications borrower that has, on the effective date an
outstanding insured or guaranteed loan from RUS for rural
electrification, and whose eligibility for future RUS financing is not
restricted pursuant to 7 CFR part 1786.

**[Administrator]{.underline}** means the Administrator of the Rural
Utilities Service or the Administrator's designee.

**[Borrower]{.underline}** means an entity that has outstanding RUS
loan(s) or guarantee(s) for an electric or telecommunications purpose
under the provisions of the Act.

**[Departmental rules and regulations]{.underline}** means 7 CFR Part
15, 7 CFR Part 15b, and 45 CFR Part 90, collectively.

**[Electric or telecommunications purpose]{.underline}** means a purpose
that:

> 1\) The Administrator is authorized to finance under sections 2, 4, 5,
> 201, 305, and 408 of the Act; or
>
> 2\) Is characterized by furnishing, generating, or transmitting
> electric energy or other activities involved in providing electricity,
> or is characterized as providing telephone service. It will not
> include a relatively insignificant amount of customer premises
> equipment, as determined by the Administrator.

**1** **PURPOSE:** The purpose of this guidance bulletin is to summarize
all current civil rights rules and regulations pertaining to RUS
electric and telecommunications borrowers into a single document. This
document will describe the statutes, rules, and regulations, which
inform RUS borrowers of their responsibilities for ensuring
nondiscrimination practices in the operation of their organizations.

**2 POLICY:** It is the established policy of RUS that no person in the
United States shall, on the grounds of race, color, or national origin,
or solely by reason of such person\'s disability, or on the basis of
age, be excluded from participation in, be denied the benefits of, or
otherwise be subjected to discrimination under the RUS electric,
telecommunications, and rural development programs.

3 PROCEDURES: The regulations referenced provide information on the
procedures and forms required of RUS borrowers and applicants for
financial assistance to comply with Title VI of the Civil Rights Act of
1964, as amended (42 U.S.C. 2000d *et seq*.), Section 504 of the
Rehabilitation Act of 1973, as amended, (29 U.S.C. 794), the Age
Discrimination Act of 1975, as amended, (42 U.S.C. 6101, *et seq*.), and
Departmental rules and regulations, (7 CFR 15 and 15b, 45 CFR 90,
collectively).

**3.1 [Availability of U.S. Department of Agriculture Rules and
Regulations]{.underline}**. Copies of the Departmental rules and
regulations can be accessed through the Internet at
<http://www.access.gpo.gov/nara/cfr/index.html>. RUS bulletins and forms
referenced in this bulletin are available from the Rural Utilities
Service, U.S. Department of Agriculture, 1400 Independence Ave., SW,
STOP 1522, Washington, D.C. 20250-1522; fax (202) 720-4120, or most may
be available from the RUS website: http://www.usda.gov/rus/index.html.

4\. Provisions of Title VI of the civil rights act, section 504 of the
rehabilitation act, and the age discrimination act applicable to RUS
borrowers.

**4.1 [Borrowers subject to above civil rights
regulations]{.underline}:** A RUS borrower becomes subject to the
provisions of Title VI of the Civil Rights Act, Section 504 of the
Rehabilitation Act, and the Age Discrimination Act, upon receipt by such
borrower of a loan made by RUS, an advance of funds, or a note or bond
under which the advance of funds is requested.

**4.2 [Prohibition against discrimination]{.underline}:** To the extent
that Title VI of the Civil Rights Act, Section 504 of the Rehabilitation
Act, and the Age Discrimination Act, apply to each RUS borrower, no
person in the United States shall, on the basis of race, color, national
origin, age or handicap, be excluded from participation in, be denied
the benefits of, or otherwise be subjected to discrimination under the
RUS electric, telecommunications, and rural development programs.

**4.3 [Illustrations of specifically prohibited actions]{.underline}:**
The actions set forth below are illustrations of the kinds of activities
prohibited by RUS-financed electric and telecommunications
organizations. This list of actions is not all inclusive, but it
provides RUS borrowers with further clarification of their
responsibilities for compliance with Departmental rules and regulations.

**4.3.1** Program services must be provided without regard to race,
color, national origin, age, or disability, therefore, RUS borrowers
shall not:

a\. Discriminate by refusing or failing to extend electric or
telecommunications service to persons in identified minority classes,
inconsistent with the borrower's line extension policy.

> b\. Discriminate by denying any person the benefits of improvement,
> expansion, or upgrading, of electric or telecommunications service;
>
> c\. Discriminate in the rates, terms, or conditions in providing
> service to customers;

d\. Discriminate in the type of service provided to electric and
telecommunications customers;

e\. Refuse or fail to accept applications for membership or applications
to purchase shares of stock;

> f\. Exclude or discourage any member or stockholder, if the borrower
> is a cooperative or mutual type corporation, from participation in any
> meeting; or discriminate with respect to the member\'s or
> stockholder\'s rights, such as nomination and election to a position
> on the board of directors; or discriminate against any qualified voter
> from participation in any election. The Civil Rights Staff will give
> advice and assistance to program recipients regarding the nomination
> and election process, so that full member involvement is encouraged.
>
> g\. Discriminate against any person in the use of the borrower\'s
> public facilities;
>
> h\. Discriminate in employment practices, which tend to have an impact
> on services provided to customers;
>
> i\. Discriminate against any customer, under its consumer financing
> program, on the weatherproofing of buildings, the wiring of premises,
> or the installation of electrical and plumbing appliances and
> equipment.
>
> j\. Discriminate by excluding any qualified bidder from having an
> equal opportunity to participate in the bidding or negotiating process
> for construction, maintenance, or service and supply contracts.

5 Compliance assurance (RUS Form 266)

**5.1 [Requirements for submission of compliance
assurance]{.underline}:** Each borrower is required, as a condition
prerequisite to advance of loan funds, to provide RUS with assurance
that it will conduct its program operations in compliance with
Departmental rules and regulations. Such assurance is required to be
furnished to RUS with respect to the first advance of loan funds,
irrespective of the date of the loan contract, note, or bond under which
the advance of funds was requested. The assurance is provided on RUS
Form 266, Compliance Assurance, executed by an authorized official of
the borrower's board of directors. The compliance assurance shall remain
effective for all subsequent advances.

**5.2 [When submission of compliance assurance is
required]{.underline}:**

**5.2.1** [Existing borrowers.]{.underline} All RUS borrowers must have
an RUS Form 266, Compliance Assurance, on file at the RUS Washington
D.C. Headquarters office, prior to the advance of funds.

**5.2.2** [New applicants.]{.underline} Each first-time loan applicant
who requests a loan from RUS shall include the RUS Form 266 with its
loan application.

**5.3 [Duration of compliance assurance]{.underline}:**

**5.3.1** [Real property.]{.underline} When loan funds from RUS are
advanced to a borrower to finance the acquisition or improvement of real
property, including the acquisition, construction, or improvement of
structures on real property, the RUS Form 266 shall apply to the
borrower. In the case of a subsequent transfer, the transferee then
becomes responsible for the RUS Form 266, only if the transfer is
through debt assumption.

**5.3.2** [Personal property.]{.underline} When loan funds from RUS are
advanced to a borrower to finance the acquisition or improvement of
personal property, the Form 266 shall apply to the borrower for the
period during which the borrower retains ownership or possession of the
personal property.

**5.3.3** [Other cases.]{.underline} In all other cases, the RUS Form
266 shall apply to the borrower for the period during which any loan
funds from RUS remain unpaid and outstanding.

**6 Public notification requirements**

**6.1** **[Requirement to notify persons of nondiscrimination
policy]{.underline}:**

**6.1.1** [Existing borrowers.]{.underline} Each RUS borrower is
required to notify customers, beneficiaries, applicants, employees, and
other interested persons of the applicability of the Departmental rules
and regulations by furnishing, publishing and posting the Statement of
Nondiscrimination and the most current version of "And Justice for All"
(AD-475A) poster.

**6.1.2** [New Borrowers.]{.underline} Each new borrower, within 60 days
after receiving its first advance of loan funds, shall also furnish,
publish, and post the Statement of Nondiscrimination and the most
current version of the "And Justice for All" (AD-475A) poster.

**6.2 [Forms of public notification required]{.underline}:**

**6.2.1** [Title VI of the Civil Rights Act.]{.underline} Each borrower
that has received an advance of loan funds from RUS shall notify
participants, beneficiaries, and other interested persons of the
applicability of Title VI of the Civil Rights Act using the Statement of
Nondiscrimination.

**6.2.2** [Section 504 of the Rehabilitation Act.]{.underline} Each
borrower that has received an advance of loan funds from RUS shall
notify participants, beneficiaries, and other interested persons of the
applicability of Section 504 of the Rehabilitation Act using the
Statement of Nondiscrimination.

**6.2.3** [Age discrimination act.]{.underline} Each borrower that has
received an advance of loan funds from RUS shall notify participants,
beneficiaries, and other interested persons of the applicability of the
Age Discrimination Act using the Statement of Nondiscrimination.

**6.3 [Specifically Required Notification Actions]{.underline}:** The
Statement of Nondiscrimination is the required statement, which must be
used by RUS borrowers upon implementing public notification
requirements. Borrowers will be required to provide verification that
this statement has been published during civil rights compliance
reviews. Additionally, the \"And Justice for All\" poster must be
displayed. These requirements apply to both headquarters and branch
office(s).

**6.3.1** Each RUS borrower shall notify participants, beneficiaries,
applicants, employees, and other interested persons of the
organization\'s nondiscrimination policy by:

> a\. Displaying the "And Justice For All" poster (AD 475A) in the
> headquarters and branch office lobbies where it is easily visible to
> the general public;
>
> b\. Posting the required Statement of Nondiscrimination in the
> headquarters and branch office lobbies where it is easily visible to
> the general public;
>
> c\. Publishing the Statement of Nondiscrimination, in the local
> newspaper(s) annually. (Verification of the newspaper statement and
> date(s) of publication must be provided to governmental reviewers
> during pre and post loan civil rights audits); and
>
> d\. Providing a copy of the Statement of Nondiscrimination to all new
> customers and employees.

7 Data collection requirements and report of compliance and
participation

**7.1 [Requirement to Collect and Maintain Racial and Ethnic
Data]{.underline}:** RUS borrowers must establish and maintain a
documented system to identify and collect racial/ethnic data on the
eligible population in served residences.

**7.2 [Required Racial and Ethnic Categories]{.underline}:** The
required racial/ethnic categories to be used by RUS borrowers when
recording the information requested are as follows:

a.  American Indian or Alaska Native

b.  Asian

> c\. Black or African American
>
> d\. Native Hawaiian or Other
>
> e\. White

f.  Hispanic or Latino

> g\. Other

**7.3 [Procedures for Collecting Racial and Ethnic Data]{.underline}:**
Census data is available for a number of different geographic breakdowns
(counties, census blocks, etc.). You should use the geographic breakdown
that most closely approximates your service area or combine census areas
to develop a weighted average covering your service area. Census data
can be found on the Internet at
[http://www.census.gov](http://www.census.gov/) or alternatively at your
county courthouse.

**7.3.1** [Visual Observation]{.underline}: When new customers apply for
service at the office, the organization may determine that person's race
or ethnic background through visual observation. The data collected must
be coded and maintained.

**7.3.2** [Verbal or Written Request]{.underline}: In situations where a
customer does not apply for service at the office, either an oral or
written request can be made. It is appropriate to request such
information from the customer; however, it must be specified that the
data is being collected for Federal Government Reporting Purposes Only.
The customer has the option to provide or not to provide this
information.

**7.3.2.1** If the customer chooses not to provide the requested data,
the organization may determine the customer\'s race or ethnic background
based on the makeup of the service area. The data collected must be
coded and maintained.

###### 8 Civil rights compliance reviews

**8.1** **[Technical Assistance]{.underline}:** The Civil Rights Staff
(CRS), Rural Development, shall provide to the RUS staff ongoing
technical assistance and guidance as necessary to ensure that borrowers
are in compliance with Departmental rules and regulations.

**8.2 [Civil Rights Compliance Reviews]{.underline}**: RUS General Field
Representatives (GFRs) shall conduct periodic pre-loan and post-loan
civil rights compliance reviews to determine borrowers\' civil rights
compliance posture. In most cases, a civil rights compliance review
shall be conducted by the GFR of RUS borrowers at least once in a
12-month period. The CRS, Rural Development, shall also conduct Civil
Rights Compliance Reviews of RUS borrowers, on an ongoing basis.

**8.3 [Waiver for Annual Civil Rights Compliance
Reviews]{.underline}**[:]{.underline} If a RUS borrower does not have
loan activity, including outstanding unadvanced loan funds in a 12-month
period, the GFR is not required to conduct an annual civil rights
compliance review during that period. The GFRs must provide a written
statement to the CRS, Rural Development indicating those borrowers for
whom a waiver is being requested.

**8.4 [Departmental civil rights compliance reviews]{.underline}:**
Special civil rights compliance reviews, with respect to the
requirements of Title VI of the Civil Rights Act, Section 504 of the
Rehabilitation Act, and the Age Discrimination Act, may be made
periodically by representatives of the Office of Civil Rights
Enforcement, U.S. Department of Agriculture.

**8.5 [Access to Sources of Review Information]{.underline}:** Each RUS
borrower shall permit Departmental/Agency officials access to its
facilities during compliance review visits. Also, borrowers must provide
these officials access to all reports, books, records, accounts, and any
other source of information requested for the purpose of determining
compliance with civil rights regulations.

9 Noncompliance procedures

**9.1 [Findings of Noncompliance]{.underline}:** Any findings of
noncompliance by the GFR will be brought to the attention of the RUS
borrower in an effort to resolve the noncompliance voluntarily.
Noncompliance procedures are as follows:

**9.1.1** Upon receipt by RUS of information indicating violation of the
Departmental rules and regulations, the RUS Regional Division Director
shall notify the borrower, in writing, and request the borrower to
discontinue the alleged violation voluntarily and to state its position
with regard to the alleged violation.

**9.1.2** If efforts to secure voluntary compliance are unsuccessful,
the RUS shall notify the borrower, in writing, of the agency\'s intent
to refer the matter to the Department\'s Office of Civil Rights (OCR)
for appropriate action 7 CFR l5.8. Also, the RUS shall promptly notify
the Assistant Attorney General, Civil Rights Division, U.S. Department
of Justice (DOJ), as required by 28 CFR 42.407d.

**9.1.3** If efforts by RUS to secure voluntary compliance are not
successful, the noncompliance may result in one or more of the following
actions by RUS:

> a\. Refusal to make an additional loan to the borrower.
>
> b\. Suspension or termination of further advances of loan funds.
>
> c\. Any other action as may be authorized by law.
>
> d\. All actions shall be taken in accordance with 7 CFR 15.8-l5.11.

**9.2 [Complaint Procedures]{.underline}:** Discrimination complaints
against RUS borrowers are to be submitted, in writing, to the Secretary
of Agriculture; RUS Administrator; or the Office of Civil Rights, U.S.
Department of Agriculture, Washington, D.C. 20250. Written
discrimination complaints must be filed not later than 180 days from the
date of the alleged discrimination, unless the time for filing the
complaint has been extended by the Secretary of Agriculture.

**10 Greater participation by minorities and women**

**10.1 [Equal Opportunity in Bidding Process for
Contracts]{.underline}:** Each RUS borrower shall implement a system
that provides an equal opportunity for minorities and/or female-owned
enterprises to participate in the bidding process for contracts and the
purchases of supplies, materials, and equipment.

In addition to publicizing the above information in the local news
media, RUS borrowers should make special outreach efforts to contact
minority and/or female-owned enterprises to advise them of opportunities
for participation in the bidding process. These special outreach efforts
must be documented by the borrower and will be verified by GFRs during
annual civil rights compliance reviews.

**10.2 [Cooperative Bylaws]{.underline}:** The bylaws constitute a
contract between the customer and the cooperative or mutual-type
corporation. A copy of the bylaws must be available at the
cooperative\'s office. Also, each new patron is to be provided with a
copy of the bylaws.

All members should be provided with the bylaws section on the election
process at least 30 days prior to the nomination of candidates for board
positions. An organization having no nominating committee or district
meeting, shall include this information with the annual meeting
announcement.

**10.3 [Minority and Female Participation on Committees]{.underline}:**
RUS encourages the development of an effective program to promote and
increase minority and/or female participation in activities of the
cooperatives such as membership on the nominating and planning
committees. Also, the cooperative should make a special effort to
increase minority and women membership attendance at the annual
meetings.

###### 11 Program Accessibility

**11.1 [Program Accessibility Requirements]{.underline}:** All borrowers
must comply with Departmental rules and regulations, which implements
Section 504 of the Rehabilitation Act of 1973, as amended.

**11.2 [Prohibition Against Discrimination]{.underline}:** No person
with a disability shall be denied the benefits of, be excluded from
participation in, or otherwise be subjected to discrimination under any
program or activity administered by the U.S. Department of Agriculture.

**11.3 [Methods of Compliance (Existing Facilities)]{.underline}:** RUS
borrowers in existing facilities must comply with the Departmental
requirements by such means as redesigning equipment; conducting annual
meetings in accessible buildings; assigning aids to patrons; making home
visits; providing services in alternate accessible sites; constructing
new facilities; or any other method that results in making the program
accessible. RUS borrowers must give priority to those methods that offer
programs services to disabled persons in the most integrated setting
appropriate to obtain full benefits of the program. The CRS, Rural
Development, will give advice and assistance to program recipients
regarding holding annual meetings in facilities that allow for maximum
possible public involvement and participation.

**11.4 [Methods of Compliance (New Construction)]{.underline}:** Each
new facility, or part of a facility, which is constructed for use by a
RUS borrower shall, to the maximum extent feasible, be altered in such a
manner that the facility is fully accessible to persons with
disabilities.

12 Employment

**12.1 [Title VI of the Civil Rights Act]{.underline}:** [Prohibition
against discrimination]{.underline}. When discrimination on the basis of
race, color, or national origin in the employment practices of a RUS
borrower, tends to exclude individuals from participation in, to deny
them the benefits of, or to subject them to discrimination under any
program or activity of such borrower, the portions of the Departmental
rules and regulations, which implement Title VI of the Civil Rights Act,
shall also apply to employment practices.

**12.2 [Section 504 of the Rehabilitation Act
(Employment)]{.underline}:** [Applicability of discrimination
prohibition]{.underline}. This section applies to all borrowers.

**12.2.1** No qualified person with a disability, on the basis of such
person\'s disability, shall be subjected to discrimination in employment
by any RUS borrower to which this section applies.

**12.2.2** Each RUS borrower shall make all decisions concerning
employment in a manner that ensures that discrimination on the basis of
disability does not occur.

**12.2.3** A RUS borrower may not limit, segregate, or classify
applicants or employees in any way that adversely affects their
opportunities or status because of any disability.

**12.2.4** A borrower may not participate in a contractual or other
relationship that has the effect of subjecting qualified applicants or
employees to discrimination. This includes relationships with employment
and referral agencies, with labor unions, with organizations providing
or administering fringe benefits to employees of the borrower, and with
organizations providing training and apprenticeship programs.

**12.2.5** All provisions of this bulletin pertaining to employment
apply equally to volunteer service.

**12.3 [Requirement to Make Reasonable Accommodations]{.underline}:**

**12.3.1** Each RUS borrower shall make reasonable accommodations, to
the known physical and mental limitations of an otherwise qualified
applicant or employee with a disability, unless the borrower can
demonstrate that the accommodation would impose an undue hardship in the
operation of its program.

**12.3.1.1** Reasonable accommodations may include making facilities
used by employees readily accessible to and usable by persons with a
disability; and job restructuring; part‑time or modified work schedules;
acquisition or modification of equipment or devices; the provision of
readers or interpreters; and other similar actions.

**12.3.1.2** In determining whether an accommodation would impose an
undue hardship on the operation of a borrower\'s program, factors to be
considered are: the overall size of the borrower\'s program with respect
to the number of employees, number and type of facilities and size of
budget; the type of operation, including the composition and structure
of program workforce; and, the nature and cost of the accommodation
needed.

**12.2.1.3** An RUS borrower may not deny any employment opportunity to
a qualified employee or applicant if the basis for the denial is the
need to make reasonable accommodations for the physical or mental
limitations of the employee or applicant.

**12.4 [Employment Tests and Selection Criteria]{.underline}:**

**12.4.1** An RUS borrower may not use any employment test or other
selection criterion that screens out or tends to screen out persons with
disabilities unless: the borrower shows that the test score or other
selection criteria, as used by the borrower, is job‑related for the
position in question, and the Secretary of Agriculture cannot show that
alternative job‑related tests or criteria are available which do not
screen out, or tend to screen out, as many persons with disabilities.

**12.4.2** An RUS borrower shall select and administer tests concerning
employment to ensure that, when administered to an applicant or employee
who has a disability, the test results accurately reflect the
applicant\'s or employee\'s job skills, aptitude, or whatever other
factors the test purports to measure.

**12.5 [Pre-employment Inquiries and Medical
Examinations]{.underline}:**

**12.5.1** A RUS borrower may not conduct a pre-employment medical
examination or may not make pre-employment inquiry of an applicant as to
whether the applicant is a person with a disability or as to the nature
or severity of a disability. A borrower may, however, make a
pre-employment inquiry into an applicant\'s ability to perform
job‑related functions.

**12.5.2** Nothing in this bulletin shall prohibit a RUS borrower from
conditioning an offer of employment on the results of a medical
examination conducted prior to the employee\'s entrance on duty;
provided, that: all entering employees are subjected to such an
examination, regardless of disabilities; and the results of such an
examination are used only in accordance with the requirements of this
section.

13 Other civil rights statutes, orders, rules and regulations that may
be applicable to RUS borrowers

**13.1 [List of Other Civil Rights Statutes]{.underline}:** The list of
civil rights statutes, orders, rules, and regulations is not
all‑inclusive, but is intended to alert RUS borrowers that there are
civil rights requirements and responsibilities which may be applicable
to them beyond the civil rights statutes, rules, and regulations
referenced in this bulletin.

**13.2 [Prohibition Against Discrimination in Employment]{.underline}:**

**13.2.1** Title VII of the Civil Rights Act of l964, as amended
(42U.S.C. 2000e [et seq.]{.underline}) provides that it shall be an
unlawful employment practice for an employer:

> a\. To fail or refuse to hire or to discharge any individual, or
> otherwise to discriminate against any individual with respect to his
> compensation, terms, conditions, or privileges of employment, because
> of such person\'s race, color, religion, sex or national origin; or
>
> b\. To limit, segregate, or classify employees or applicants for
> employment in any way which would deprive, or tend to deprive any
> individual of employment opportunities (or otherwise adversely affect
> his status as an employee) because of such individual\'s race, color,
> religion, sex, or national origin.

**13.2.2** [Age Discrimination in Employment Act.]{.underline} The Age
Discrimination in Employment Act of l967, as amended (29 U.S.C. 62l *et
seq.*) provides that it shall be unlawful for an employer:

> a\. To fail or refuse to hire or discharge any individual or otherwise
> discriminate against any individual with respect to his compensation,
> terms, conditions, or privileges of employment, because of such
> individual\'s age;
>
> b\. To limit, segregate, or classify employees in any way which would
> deprive, or tend to deprive, any individual of employment
> opportunities or otherwise adversely affect his status as an employee,
> because of such individual\'s age; or
>
> c\. To reduce the wage rate of any employee in order to comply with
> the Age Discrimination in Employment Act.

**13.2.3** [Executive Order 11246.]{.underline} Executive Order 11246,
as amended (42 U.S.C. 2000e note), provides that each executive
department and agency which administers a program involving Federal
financial assistance shall require, as a condition for the approval of
any grant, contract, loan, insurance, or guarantee thereunder which may
involve a construction contract, that the applicant for Federal
financial assistance undertake and agree to incorporate, or cause to be
incorporated, in all construction contracts paid for in whole or in part
with funds obtained from the Federal Government or borrowed on the
credit of the Federal Government pursuant to such grant, contract, loan,
insurance, or guarantee, or undertaken pursuant to any Federal program
involving such grant, contract, loan, insurance, or guarantee, the
\"Equal Employment Opportunity Clause\" prescribed by such Executive
Order.

13.3 Prohibition Against Discrimination in Credit:

**13.3.1** [Equal Credit Opportunity Act]{.underline}. The Equal Credit
Opportunity Act of l974, as amended (l5 U.S.C. l69l *et seq.*) provides
that it shall be unlawful for any creditor to discriminate against an
applicant, with respect to a credit transaction on the basis of:

> a\. Race, color, religion, national origin, sex, or marital status,
> age (provided that the applicant has the legal capacity to enter into
> contracts); or
>
> b\. Because all or part of the applicant\'s income derives from any
> public assistance program; or

c\. Because the applicant has, in good faith, exercised his rights under
the Equal Credit Opportunity Act.

Bulletin 1790-1

Exhibit A

Page 15

####### 

####### COMPLIANCE ASSURANCE

*(Title VI, Civil Rights Act of 1964,*

*Section 504, Rehabilitation Act of 1973,*

*Age Discrimination Act of 1975)*

Rural Utilities Service

United States Department of Agriculture

Washington, D.C. 20250

The undersigned acknowledges that it is familiar with Title VI of the
Civil Rights Act of l964, as amended (42 U.S.C. 2000d *et seq*.) ("Title
VI of the Civil Rights Act"), Section 504 of the Rehabilitation Act of
l973, as amended (29 U.S.C. 794) (\"Section 504 of the Rehabilitation
Act"), the Age Discrimination Act of l975, as amended (42 U.S.C. 6l0l
*et seq*.) (the "Age Discrimination Act"), the rules and regulations of
the U.S. Department of Agriculture implementing Title VI of the Civil
Rights Act (7 CFR Part l5) and implementing Section 504 of the
Rehabilitation Act (7 CFR Part l5b), the government‑wide rules and
regulations of the U.S. Department of Health and Human Services
implementing the Age Discrimination Act (45 CFR Part 90) under which the
U.S. Department of Agriculture is operating until such time as it adopts
its own implementing regulations (7 CFR Part l5, 7 CFR Part l5b and 45
CFR Part 90 being hereinafter collectively called the \"Departmental
rules and regulations\"), and the rules and regulations of the Rural
Utilities Service implementing Title VI of the Civil Rights Act, Section
504 of the Rehabilitation Act, the Age Discrimination Act and the
Departmental rules and regulations (7 CFR Part l786) (the "RUS
regulations").

The undersigned hereby assures the Rural Utilities Service that it will
comply fully with all requirements imposed by or pursuant to such
Departmental rules and regulations and the RUS regulations which require
that no person, on the basis of race, color, national origin, age, or
handicap, be excluded from participation in, be denied the benefits of,
or be otherwise subjected to discrimination in the conduct of its
program and the operation of its facilities.

The undersigned further agrees that, in the event of its violation of or
failure to comply with any of the requirements imposed by or pursuant to
such Departmental rules and regulations, the United States may seek
judicial enforcement of compliance with such requirements.

This assurance is executed and supplied to the Rural Utilities Service
pursuant to a duly adopted resolution of the board of directors of the
undersigned.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

*RUS Borrower*

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

*Date Person Authorized by the Board*

*To Sign This Assurance*

RUS Form **266** *(Rev. 01/00)*

Bulletin 1790-1

Exhibit B

Page 16

####### 

####### STATEMENT OF NONDISCRIMINATION

"In accordance with Federal law and U.S. Department of Agriculture
policy, this institution is prohibited from discriminating on the basis
of race, color, national origin, sex, religion, age, disability (Not all
prohibited bases apply to all programs.)

To file a complaint of discrimination, write USDA, Director, Office of
Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue,
SW, Washington, DC 20250-9410, or call (202) 720-5964 (voice or TDD).
USDA is an equal opportunity provider and employer."

Bulletin 1790-1

Exhibit C

Page 17

**RUS Form 268, Report of Compliance and Participation** (Page 1)

*(Rev. 9-99)*

<http://www.usda.gov/rus/electric/forms.htm>

Bulletin 1790-1

Exhibit C

Page 18

**RUS Form 268, Report of Compliance and Participation** (Page 2)

*(Rev. 9-99)*

<http://www.usda.gov/rus/electric/forms.htm>