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‘‘(10) the coordination of the proposed project
with regional projects or networks;
‘‘(11) service to the widest 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) MAXIMUM AMOUNT OF ASSISTANCE TO INDIVID-
UAL RECIPIENTS.—The Secretary may establish the maxi-
mum amount of financial assistance to be made available
to an individual recipient for each fiscal year under this
chapter by publishing notice in the Federal Register. The
notice shall be published not more than 45 days after funds
are made available to carry out this chapter during a fiscal
year.
‘‘(f) USE OF FUNDS.—Financial assistance provided
under this chapter shall be used for—
‘‘(1) the development and acquisition of instruc-
tional programming;
‘‘(2) the development and acquisition, through
lease or purchase, of computer hardware and soft-
ware, audio and visual equipment, computer network
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components, telecommunications terminal equipment,
telecommunications transmission facilities, data ter-
minal equipment, or interactive video equipment, and
other facilities that would further telemedicine serv-
ices or distance learning services, or both;
‘‘(3) providing technical assistance and instruc-
tion 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 of employees
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 applica-
tions 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 ad-
vanced telecommunications services in rural areas in
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conjunction with any other projects carried out under
this chapter.
‘‘(2) DEADLINE IMPOSED ON SECRETARY.—Not
later than 45 days after the receipt of a completed ap-
plication for an expedited telephone loan under para-
graph (1), the Secretary shall respond to the applica-
tion. The Secretary shall notify the applicant in writ-
ing of the decision of the Secretary regarding each ex-
pedited loan application.
‘‘(i) NOTIFICATION OF LOCAL EXCHANGE CARRIER.—
‘‘(1) APPLICANTS.—Each applicant for a grant
for a telemedicine or distance learning project estab-
lished under this chapter shall notify the appropriate
local telephone exchange carrier regarding the appli-
cation 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 in-
spection.
‘‘SEC. 2334. ADMINISTRATION.
‘‘(a) NONDUPLICATION.—The Secretary shall ensure
that facilities constructed using financial assistance pro-
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vided under this chapter do not duplicate adequate estab-
lished 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 Sec-
retary shall make a cost of money loan only after determin-
ing 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, or both,
through telecommunications in rural areas served by a tele-
communications provider.
‘‘(e) COOPERATION WITH OTHER AGENCIES.—The
Secretary shall cooperate, to the extent practicable, with
other Federal and State agencies with similar grant or loan
programs to pool resources for funding meritorious propos-
als in rural areas.
‘‘(f) INFORMATIONAL EFFORTS.—The Secretary shall
establish and implement procedures to carry out informa-
tional efforts to advise potential end users located in rural
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areas of each State about the program authorized by this
chapter.
‘‘SEC. 2335. REGULATIONS.
‘‘Not later than 180 days after the effective date of the
Agricultural Reform and Improvement Act of 1996, the Sec-
retary shall issue regulations to carry out this chapter.
‘‘SEC. 2335A. 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 APPROPRIA-
TIONS 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) by striking ‘‘(a) IN GENERAL.—’’; and
(2) by striking subsection (b).
SEC. 706. 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.
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SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESS-
MENT.
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. 708. RURAL HEALTH INFRASTRUCTURE IMPROVE-
MENT.
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. 709. CENSUS OF AGRICULTURE.
Section 2392 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 104 Stat.
4057) is repealed.
CHAPTER 
2—ALTERNATIVE 
AGRICUL-
TURAL 
RESEARCH 
AND 
COMMER-
CIALIZATION
SEC. 721. DEFINITIONS.
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 para-
graph (3);
(3) by redesignating paragraphs (6) through (12)
as paragraphs (7) through (13), respectively; and
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(4) by inserting after paragraph (3) (as redesig-
nated by paragraph (2)) the following:
‘‘(4) CORPORATE BOARD.—The term ‘Corporate
Board’ means the Board of Directors of the Corpora-
tion described in section 1659.
‘‘(5) CORPORATION.—The term ‘Corporation’
means the Alternative Agricultural Research and
Commercialization Corporation established under sec-
tion 1658.
‘‘(6) EXECUTIVE DIRECTOR.—The term ‘Execu-
tive Director’ means the Executive Director of the
Corporation appointed under section 1659(d)(2).’’.
SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND
COMMERCIALIZATION CORPORATION.
(a) IN GENERAL.—Section 1658 of the Food, Agri-
culture, 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 Alter-
native Agricultural Research and Commercialization Cor-
poration, which shall be an agency of the United States,
within the Department of Agriculture, subject to the general
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supervision and direction of the Secretary, except as specifi-
cally provided for in this subtitle.
‘‘(b) PURPOSE.—The purpose of the Corporation is
to—
‘‘(1) expedite the development and market pene-
tration of industrial, nonfood, nonfeed products from
agricultural and forestry materials; and
‘‘(2) assist the private sector in bridging the gap
between research results and the commercialization of
the research.
‘‘(c) PLACE
OF INCORPORATION.—The Corporation
shall be located 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 govern-
ment corporation for purposes of 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;
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‘‘(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, ex-
cept that the Corporation shall not provide any fi-
nancial assistance unless specifically authorized
under this subtitle;
‘‘(4) may lease, purchase, accept a gift or dona-
tion of, or otherwise acquire, use, own, hold, improve,
or otherwise deal in or with, and sell, convey, mort-
gage, pledge, lease, exchange, or otherwise dispose of,
any property, real, personal, or mixed, or any inter-
est in property, as the Corporation considers nec-
essary in the transaction of the business of the Cor-
poration, 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, garnish-
ment, or similar process shall be issued against
the Corporation or property of the Corporation;
and
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‘‘(B) exclusive original jurisdiction shall re-
side 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 representa-
tion;
‘‘(7) may provide for and designate such com-
mittees, 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 in-
demnified for an act outside the scope of employment;
‘‘(9) may, with the consent of any board, com-
mission, independent establishment, or executive de-
partment of the Federal Government, including any
field service, use information, services, facilities, offi-
cials, and employees in carrying out this subtitle, and
pay for the use, which payments shall be credited to
the applicable appropriation that incurred the ex-
pense;
‘‘(10) may obtain the services and fix the com-
pensation of any consultant and otherwise procure
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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 im-
munities 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 neces-
sity for, obligations and expenditures of the Corpora-
tion and the manner in which the obligations and ex-
penditures shall be incurred, allowed, and paid, sub-
ject 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 Cor-
poration 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
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‘‘(17) may exercise all other lawful powers nec-
essarily 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 shall have the authority to—
‘‘(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 con-
cerning 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 Alternative Agricultural Research and Com-
mercialization Revolving Fund to facilitate the con-
duct of activities under this subtitle; and
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‘‘(6) engage in other activities incident to carry-
ing out the functions of the Corporation.’’.
(b) WHOLLY OWNED GOVERNMENT CORPORATION.—
Section 9101(3) of title 31, United States Code, is amend-
ed—
(1) by redesignating subparagraph (N) (relating
to the Uranium Enrichment Corporation) as sub-
paragraph (O); and
(2) by adding at the end the following:
‘‘(P) 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 FACILI-
TIES.
(a) IN GENERAL.—Section 1659 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C.
5903) is amended to read as follows:
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‘‘SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FA-
CILITIES.
‘‘(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 10 members as follows:
‘‘(1) The Under Secretary of Agriculture for
Rural Economic and Community Development.
‘‘(2) The Under Secretary of Agriculture for Re-
search, Education, and Economics.
‘‘(3) 4 members appointed by the Secretary, of
whom—
‘‘(A) at least 1 member shall be a represent-
ative 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; and
‘‘(C) at least 1 member shall be a person
who is privately engaged in the commercializa-
tion of new nonfood, nonfeed products from agri-
cultural commodities.
‘‘(4) 2 members appointed by the Secretary
who—
‘‘(A) have expertise in areas of applied re-
search relating to the development or commer-
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cialization 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 nomina-
tions are made within 60 days after the date a
vacancy occurs.
‘‘(5) 2 members appointed by the Secretary
who—
‘‘(A) have expertise in financial and mana-
gerial 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 within
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 super-
vision of the Corporation and Regional Centers
established under section 1663;
‘‘(B) determine (in consultation with Re-
gional Centers) high priority commercialization
areas to receive assistance under section 1663;
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‘‘(C) review any grant, contract, or coopera-
tive agreement to be made or entered into by the
Corporation under section 1660 and any finan-
cial 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) using the results of the hearings and
other information and data collected under para-
graph (2), 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 va-
cate and remand to the Board for reconsider-
ation 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 Board,
with respect to the decision.
‘‘(B) REASONS.—In the case of any viola-
tion and referral of a funding decision to the
Board, the Secretary shall inform the Board of
the reasons for any remand pursuant to sub-
paragraph (A).
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‘‘(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 Chair-
person shall be 2 years. The members referred to in para-
graphs (1) and (2) of subsection (b) may not serve as Chair-
person.
‘‘(e) EXECUTIVE DIRECTOR.—
‘‘(1) IN GENERAL.—The Executive Director of
the Corporation shall be the chief executive officer of
the Corporation, with such power and authority as
may be conferred by the Corporate Board. The Execu-
tive Director shall be appointed by the Corporate
Board. The appointment shall be subject to the ap-
proval of the Secretary.
‘‘(2) 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, in-
cluding 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
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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 mem-
ber of the Corporate Board shall be 4 years, except
that the members initially appointed shall be ap-
pointed to serve staggered terms. A member appointed
to fill a vacancy for an unexpired term may be ap-
pointed 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
shall not remove a member of the Corporate Board ex-
cept for cause.
‘‘(2) TRANSITION MEASURE.—An individual who
is serving on the Alternative Agricultural Research
and Commercialization Board on the day before the
effective date of the Agricultural Reform and Im-
provement Act of 1996 may be appointed to the Cor-
porate Board by the Secretary for a term that does
not exceed the term of the individual on the Alter-
native Agricultural Research and Commercialization
Board if the Act had not been enacted.
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‘‘(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 Cor-
porate 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 nec-
essary expenses incurred by the member in the performance
of the duties of the member.
‘‘(j) CONFLICT
OF INTEREST; FINANCIAL DISCLO-
SURE.—
‘‘(1) CONFLICT OF INTEREST.—Except as pro-
vided in paragraph (3), no member of the Corporate
Board shall vote on any matter respecting any appli-
cation, 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 arrange-