H. R. 2646—264
company will be operated soundly and profitably, and man-
aged actively and prudently in accordance with the articles
of the rural business investment company;
‘‘(B) determine that the rural business investment com-
pany will be able to comply with the requirements of this
subtitle;
‘‘(C) require that at least 75 percent of the capital
of each rural business investment company is invested
in rural business concerns and not more than 10 percent
of the investments shall be made in an area containing
a city of over 150,000 in the last decennial census and
the Census Bureau defined urbanized area containing or
adjacent to that city;
‘‘(D) ensure that the rural business investment com-
pany is designed primarily to meet equity capital needs
of the businesses in which the rural business investment
company invests and not to compete with traditional small
business financing by commercial lenders; and
‘‘(E) require that the rural business investment com-
pany makes short-term non-equity investments of less than
5 years only to the extent necessary to preserve an existing
investment.
‘‘(d) DIVERSIFICATION OF OWNERSHIP.—The Secretary shall
ensure that the management of each rural business investment
company licensed after the date of enactment of this subtitle is
sufficiently diversified from and unaffiliated with the ownership
of the rural business investment company so as to ensure independ-
ence and objectivity in the financial management and oversight
of the investments and operations of the rural business investment
company.
‘‘SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.
‘‘(a) IN GENERAL.—Except as otherwise provided in this section
and notwithstanding any other provision of law, the following banks,
associations, and institutions are eligible both to establish and
invest in any rural business investment company or in any entity
established to invest solely in rural business investment companies:
‘‘(1) Any bank or savings association the deposits of which
are insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.).
‘‘(2) Any Farm Credit System institution described in sec-
tion 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
‘‘(b) LIMITATION.—No bank, association, or institution described
in subsection (a) may make investments described in subsection
(a) that are greater than 5 percent of the capital and surplus
of the bank, association, or institution.
‘‘(c) LIMITATION ON RURAL BUSINESS INVESTMENT COMPANIES
CONTROLLED BY FARM CREDIT SYSTEM INSTITUTIONS.—If a Farm
Credit System institution described in section 1.2(a) of the Farm
Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 15 percent
of the shares of a rural business investment company, either alone
or in conjunction with other System institutions (or affiliates), the
rural business investment company shall not provide equity invest-
ments in, or provide other financial assistance to, entities that
are not otherwise eligible to receive financing from the Farm Credit
System under that Act (12 U.S.C. 2001 et seq.).
H. R. 2646—265
‘‘SEC. 384K. REPORTING REQUIREMENTS.
‘‘(a) RURAL BUSINESS INVESTMENT COMPANIES.—Each rural
business investment company that participates in the program
established under this subtitle shall provide to the Secretary such
information as the Secretary may require, including—
‘‘(1) information relating to the measurement criteria that
the rural business investment company proposed in the pro-
gram application of the rural business investment company;
and
‘‘(2) in each case in which the rural business investment
company under this subtitle makes an investment in, or a
loan or grant to, a business that is not located in a rural
area, a report on the number and percentage of employees
of the business who reside in those areas.
‘‘(b) PUBLIC REPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall prepare and make
available to the public an annual report on the program estab-
lished under this subtitle, including detailed information on—
‘‘(A) the number of rural business investment compa-
nies licensed by the Secretary during the previous fiscal
year;
‘‘(B) the aggregate amount of leverage that rural busi-
ness investment companies have received from the Federal
Government during the previous fiscal year;
‘‘(C) the aggregate number of each type of leveraged
instruments used by rural business investment companies
during the previous fiscal year and how each number com-
pares to previous fiscal years;
‘‘(D) the number of rural business investment company
licenses surrendered and the number of rural business
investment companies placed in liquidation during the pre-
vious fiscal year, identifying the amount of leverage each
rural business investment company has received from the
Federal Government and the type of leverage instruments
each rural business investment company has used;
‘‘(E) the amount of losses sustained by the Federal
Government as a result of operations under this subtitle
during the previous fiscal year and an estimate of the
total losses that the Federal Government can reasonably
expect to incur as a result of the operations during the
current fiscal year;
‘‘(F) actions taken by the Secretary to maximize
recoupment of funds of the Federal Government expended
to implement and administer the Rural Business Invest-
ment Program under this subtitle during the previous fiscal
year and to ensure compliance with the requirements of
this subtitle (including regulations);
‘‘(G) the amount of Federal Government leverage that
each licensee received in the previous fiscal year and the
types of leverage instruments each licensee used;
‘‘(H) for each type of financing instrument, the sizes,
types of geographic locations, and other characteristics of
the small business investment companies using the
instrument during the previous fiscal year, including the
extent to which the investment companies have used the
leverage from each instrument to make loans or equity
investments in rural areas; and
H. R. 2646—266
‘‘(I) the actions of the Secretary to carry out this sub-
title.
‘‘(2) PROHIBITION.—In compiling the report required under
paragraph (1), the Secretary may not—
‘‘(A) compile the report in a manner that permits identi-
fication of any particular type of investment by an indi-
vidual rural business investment company or small busi-
ness concern in which a rural business investment company
invests; and
‘‘(B) may not release any information that is prohibited
under section 1905 of title 18, United States Code.
‘‘SEC. 384L. EXAMINATIONS.
‘‘(a) IN GENERAL.—Each rural business investment company
that participates in the program established under this subtitle
shall be subject to examinations made at the direction of the Sec-
retary in accordance with this section.
‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—An examina-
tion under this section may be conducted with the assistance of
a private sector entity that has the qualifications and the expertise
necessary to conduct such an examination.
‘‘(c) COSTS.—
‘‘(1) IN GENERAL.—The Secretary may assess the cost of
an examination under this section, including compensation of
the examiners, against the rural business investment company
examined.
‘‘(2) PAYMENT.—Any rural business investment company
against which the Secretary assesses costs under this para-
graph shall pay the costs.
‘‘(d) DEPOSIT OF FUNDS.—Funds collected under this section
shall—
‘‘(1) be deposited in the account that incurred the costs
for carrying out this section;
‘‘(2) be made available to the Secretary to carry out this
section, without further appropriation; and
‘‘(3) remain available until expended.
‘‘SEC. 384M. INJUNCTIONS AND OTHER ORDERS.
‘‘(a) IN GENERAL.—
‘‘(1) APPLICATION BY SECRETARY.—Whenever, in the judg-
ment of the Secretary, a rural business investment company
or any other person has engaged or is about to engage in
any act or practice that constitutes or will constitute a violation
of a provision of this subtitle (including any rule, regulation,
order, or participation agreement under this subtitle), the Sec-
retary may apply to the appropriate district court of the United
States for an order enjoining the act or practice, or for an
order enforcing compliance with the provision, rule, regulation,
order, or participation agreement.
‘‘(2) JURISDICTION; RELIEF.—The court shall have jurisdic-
tion over the action and, on a showing by the Secretary that
the rural business investment company or other person has
engaged or is about to engage in an act or practice described
in paragraph (1), a permanent or temporary injunction,
restraining order, or other order, shall be granted without
bond.
‘‘(b) JURISDICTION.—
H. R. 2646—267
‘‘(1) IN GENERAL.—In any proceeding under subsection (a),
the court as a court of equity may, to such extent as the
court considers necessary, take exclusive jurisdiction over the
rural business investment company and the assets of the rural
business investment company, wherever located.
‘‘(2) TRUSTEE OR RECEIVER.—The court shall have jurisdic-
tion in any proceeding described in paragraph (1) to appoint
a trustee or receiver to hold or administer the assets.
‘‘(c) SECRETARY AS TRUSTEE OR RECEIVER.—
‘‘(1) AUTHORITY.—The Secretary may act as trustee or
receiver of a rural business investment company.
‘‘(2) APPOINTMENT.—On the request of the Secretary, the
court shall appoint the Secretary to act as a trustee or receiver
of a rural business investment company unless the court con-
siders the appointment inequitable or otherwise inappropriate
by reason of any special circumstances involved.
‘‘SEC. 384N. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.
‘‘(a) IN GENERAL.—With respect to any rural business invest-
ment company that violates or fails to comply with this subtitle
(including any rule, regulation, order, or participation agreement
under this subtitle), the Secretary may, in accordance with this
section—
‘‘(1) void the participation agreement between the Secretary
and the rural business investment company; and
‘‘(2) cause the rural business investment company to forfeit
all of the rights and privileges derived by the rural business
investment company under this subtitle.
‘‘(b) ADJUDICATION OF NONCOMPLIANCE.—
‘‘(1) IN GENERAL.—Before the Secretary may cause a rural
business investment company to forfeit rights or privileges
under subsection (a), a court of the United States of competent
jurisdiction must find that the rural business investment com-
pany committed a violation, or failed to comply, in a cause
of action brought for that purpose in the district, territory,
or other place subject to the jurisdiction of the United States,
in which the principal office of the rural business investment
company is located.
‘‘(2) PARTIES
AUTHORIZED
TO
FILE
CAUSES
OF
ACTION.—
Each cause of action brought by the United States under this
subsection shall be brought by the Secretary or by the Attorney
General.
‘‘SEC. 384O. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY
DUTY.
‘‘(a) PARTIES DEEMED TO COMMIT A VIOLATION.—Whenever any
rural business investment company violates this subtitle (including
any rule, regulation, order, or participation agreement under this
subtitle), by reason of the failure of the rural business investment
company to comply with this subtitle or by reason of its engaging
in any act or practice that constitutes or will constitute a violation
of this subtitle, the violation shall also be deemed to be a violation
and an unlawful act committed by any person that, directly or
indirectly, authorizes, orders, participates in, causes, brings about,
counsels, aids, or abets in the commission of any acts, practices,
or transactions that constitute or will constitute, in whole or in
part, the violation.
H. R. 2646—268
‘‘(b) FIDUCIARY DUTIES.—It shall be unlawful for any officer,
director, employee, agent, or other participant in the management
or conduct of the affairs of a rural business investment company
to engage in any act or practice, or to omit any act or practice,
in breach of the fiduciary duty of the officer, director, employee,
agent, or participant if, as a result of the act or practice, the
rural business investment company suffers or is in imminent danger
of suffering financial loss or other damage.
‘‘(c) UNLAWFUL ACTS.—Except with the written consent of the
Secretary, it shall be unlawful—
‘‘(1) for any person to take office as an officer, director,
or employee of any rural business investment company, or
to become an agent or participant in the conduct of the affairs
or management of a rural business investment company, if
the person—
‘‘(A) has been convicted of a felony, or any other
criminal offense involving dishonesty or breach of trust;
or
‘‘(B) has been found liable in a civil action for damages,
or has been permanently or temporarily enjoined by an
order, judgment, or decree of a court of competent jurisdic-
tion, by reason of any act or practice involving fraud or
breach of trust; and
‘‘(2) for any person to continue to serve in any of the
capacities described in paragraph (1), if—
‘‘(A) the person is convicted of a felony or any other
criminal offense involving dishonesty or breach of trust;
or
‘‘(B) the person is found liable in a civil action for
damages, or is permanently or temporarily enjoined by
an order, judgment, or decree of a court of competent
jurisdiction, by reason of any act or practice involving
fraud or breach of trust.
‘‘SEC. 384P. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
‘‘Using the procedures established by the Secretary for removing
or suspending a director or an officer of a rural business investment
company, the Secretary may remove or suspend any director or
officer of any rural business investment company.
‘‘SEC. 384Q. CONTRACTING OF FUNCTIONS.
‘‘(a) IN GENERAL.—Notwithstanding any other provision of law,
to carry out the day-to-day management and operation of the pro-
gram authorized by this subtitle on behalf of the Secretary, the
Secretary shall enter into an interagency agreement under section
1535 of title 31, United States Code, with another Federal agency
that has considerable expertise in operating a program under which
capital is provided for equity investments in private sector compa-
nies.
‘‘(b) FUNDING.—The costs incurred by a Federal agency entering
into an agreement under subsection (a) shall be reimbursed in
accordance with section 1535 of title 31, United States Code, from
amounts made available under section 384S(a)(2).
‘‘SEC. 384R. REGULATIONS.
‘‘The Secretary may promulgate such regulations as the Sec-
retary considers necessary to carry out this subtitle.
H. R. 2646—269
‘‘SEC. 384S. FUNDING.
‘‘(a) IN GENERAL.—Notwithstanding any other provision of law,
of the funds of the Commodity Credit Corporation, the Secretary
shall make available—
‘‘(1) such sums as may be necessary for the cost of guaran-
teeing $280,000,000 of debentures under this subtitle; and
‘‘(2) $44,000,000 to make grants under this subtitle.
‘‘(b) AVAILABILITY OF FUNDS.—Funds transferred under sub-
section (a) shall remain available until expended.’’.
SEC. 6030. RURAL STRATEGIC INVESTMENT PROGRAM.
The Consolidated Farm and Rural Development Act (as
amended by section 6029) is amended by adding at the end the
following:
‘‘Subtitle I—Rural Strategic Investment
Program
‘‘SEC. 385A. PURPOSE.
‘‘The purpose of this subtitle is to establish a rural strategic
investment program—
‘‘(1) to provide rural communities with flexible resources
to develop comprehensive, collaborative, and locally-based stra-
tegic planning processes; and
‘‘(2) to implement innovative community and economic
development strategies that optimize regional competitive
advantages.
‘‘SEC. 385B. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) BENCHMARK.—The term ‘benchmark’ means an annual
set of strategies and goals of a Regional Board established
for the purpose of measuring performance in meeting the
regional plan of the Regional Board.
‘‘(2) CONFERENCE.—The term ‘‘Conference’’ means the
National Conference on Rural America conducted under section
385H.
‘‘(3) ELIGIBLE AREA.—
‘‘(A) IN GENERAL.—The term ‘eligible area’ means a
nonmetropolitan county (as defined by the Secretary) that
has a population of 50,000 inhabitants or less.
‘‘(B) INCLUSION.—
‘‘(i) IN GENERAL.—Subject to clause (ii), the term
‘eligible area’ includes an unincorporated or other area
of a county that has a population of more than 50,000
inhabitants if the unincorporated area or other area
is adjacent to an eligible rural area described in
subparagraph (A).
‘‘(ii) PARTICIPATION.—An area described in clause
(i) may be represented on a Regional Board.
‘‘(C) EXCLUSION.—The term ‘eligible area’ does not
include any area designated by the Secretary as a rural
empowerment zone or rural enterprise community.
‘‘(4) INNOVATION
GRANT.—The term ‘innovation grant’
means an innovation grant made by the National Board to
a Regional Board under section 385G.
H. R. 2646—270
‘‘(5) NATIONAL BOARD.—The term ‘National Board’ means
the National Board on Rural America established under section
385D(a).
‘‘(6) NATIONAL PLAN.—The term ‘national plan’ means a
national strategic investment plan of the National Board devel-
oped under section 385D(d)(3).
‘‘(7) PLANNING GRANT.—The term ‘planning grant’ means
a regional strategic investment planning grant made by the
National Board to a Regional Board under section 385F.
‘‘(8) PROGRAM.—The term ‘program’ means the rural stra-
tegic investment program established under this subtitle.
‘‘(9) REGION.—The term ‘region’ means the eligible areas
that—
‘‘(A) are under the jurisdiction of a Regional Board;
and
‘‘(B) meet criteria established by the National Board
not later than 1 year after the date of enactment of this
subtitle.
‘‘(10) REGIONAL BOARD.—The term ‘Regional Board’ means
a Regional Investment Board certified under section 385C(a).
‘‘(11) REGIONAL PLAN.—The term ‘regional plan’ means a
regional strategic investment plan of a Regional Board devel-
oped under section 385C(b)(3)(B).
‘‘SEC. 385C. REGIONAL INVESTMENT BOARDS.
‘‘(a) IN GENERAL.—The National Board may certify a group
representing the interests described in subsection (b)(2)(A) as a
Regional Investment Board created to develop and implement a
regional strategic investment plan for grants made under this sub-
title to promote investment in eligible areas.
‘‘(b) REQUIREMENTS FOR CERTIFICATION.—
‘‘(1) IN GENERAL.—A Regional Board shall meet the require-
ments of this subsection for certification.
‘‘(2) COMPOSITION.—
‘‘(A) IN GENERAL.—A Regional Board shall be composed
of residents of the region that broadly represent diverse
public, nonprofit, and private sector interests in investment
in the region, including (to the maximum extent prac-
ticable) representatives of—
‘‘(i) units of local government (including multijuris-
dictional units of local government);
‘‘(ii) in the case of regions with Indian populations,
Indian tribes (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b));
‘‘(iii) private nonprofit community-based develop-
ment organizations;
‘‘(iv) regional development organizations;
‘‘(v) private business organizations;
‘‘(vi) other entities and organizations, as deter-
mined by the Regional Board; and
‘‘(vii) consortia of entities and organizations
described in clauses (i) through (vii).
‘‘(B) LOCAL PUBLIC-PRIVATE REPRESENTATION.—Of the
members of a Regional Board, to the maximum extent
practicable—
H. R. 2646—271
‘‘(i) 1⁄2 of the members shall be representatives
of units of local government and Indian tribes described
in subparagraph (A); and
‘‘(ii) 1⁄2 of the members shall be representatives
of nonprofit, regional, private, and other entities and
organizations described in subparagraph (A).
‘‘(C) EX-OFFICIO MEMBERS.—
‘‘(i) IN GENERAL.—An officer or employee of a Fed-
eral or State agency may serve as an ex-officio, non-
voting member of a Regional Board representing the
agency.
‘‘(ii) CONFLICTS.—Participation by a Federal officer
or employee in activities of the Regional Board shall
not constitute a violation of section 205 or 208 of
title 18, United States Code.
‘‘(D) CERTIFICATION.—To be certified by the National
Board, a Regional Board shall demonstrate to the National
Board that the Regional Board is broadly representative
of the interests described in subparagraph (A).
‘‘(E) APPEALS.—
‘‘(i) IN
GENERAL.—Prior to certification of the
Regional Board by the National Board, representatives
of interests described in subparagraph (A) that partici-
pated in the development of a Regional Board may
appeal the composition of the Regional Board to the
National Board on the ground that—
‘‘(I) the composition of the Regional Board does
not adequately reflect the purposes of the program;
or
‘‘(II) the selection process for the Regional
Board unfairly disadvantaged those interests.
‘‘(ii) ACTION BY NATIONAL BOARD.—The National
Board shall act on any appeal of the composition of
a Regional Board before taking action on the certifi-
cation of the Regional Board.
‘‘(3) DUTIES AND PURPOSE.—The organizational documents
of the proposed Regional Board shall demonstrate that, on
certification, the Regional Board shall—
‘‘(A) create a collaborative, inclusive public-private
planning process;
‘‘(B) develop, and submit to the National Board for
approval, a regional strategic investment plan that meets
the requirements of section 385F, with benchmarks, to
promote investment in eligible areas through the use of
grants made available under this subtitle;
‘‘(C) implement the approved regional plan;
‘‘(D) provide annual reports to the Secretary and the
National Board on progress made in achieving the bench-
marks of the regional plan, including an annual financial
statement; and
‘‘(E) select a non-Federal organization (such as a
regional development organization) in the local area served
by the Regional Board that has previous experience in
the management of Federal funds to serve as fiscal man-
ager of any funds of the Regional Board.
H. R. 2646—272
‘‘SEC. 385D. NATIONAL BOARD ON RURAL AMERICA.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish a National
Board on Rural America to carry out the rural strategic invest-
ment program established under this subtitle.
‘‘(2) SUPERVISION AND DIRECTION.—Except as otherwise pro-
vided in this subtitle, the National Board shall be subject
to the general supervision and direction of the Secretary.
‘‘(b) COMPOSITION.—
‘‘(1) IN GENERAL.—
‘‘(A) APPOINTMENT.—In addition to the Secretary or
the designee of the Secretary, the National Board shall
consist of 14 members appointed by the Secretary from
among—
‘‘(i) 
representatives 
of 
nationally 
recognized
entrepreneurship organizations;
‘‘(ii) representatives of regional planning and
development organizations;
‘‘(iii) representatives of community-based organiza-
tions;
‘‘(iv) elected members of county governments;
‘‘(v) elected members of State legislatures;
‘‘(vi) representatives of the rural philanthropic
community; and
‘‘(vii) representatives of Indian tribes (as defined
in section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b)).
‘‘(B) RECOMMENDATIONS.—In appointing the members
of the National Board under subparagraph (A), the Sec-
retary shall consider recommendations made by—
‘‘(i) the chairman and ranking member of each
of the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate;
‘‘(ii) the Majority Leader of the Senate; and
‘‘(iii) the Speaker of the House of Representatives.
‘‘(3) TERM OF OFFICE.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
term of office of a member of the National Board appointed
under paragraph (1)(A) shall be 4 years.
‘‘(B) STAGGERED INITIAL TERMS.—Of the initial mem-
bers of the National Board appointed under paragraph
(1)(A), the term of office of—
‘‘(i) 5 members shall be 4 years;
‘‘(ii) 5 members shall be 3 years; and
‘‘(iii) 4 members shall be 2 years.
‘‘(4) INITIAL APPOINTMENTS.—Not later than 90 days after
the date of enactment of this subtitle, the Secretary shall
appoint the initial members of the National Board under para-
graph (1)(A).
‘‘(5) EX-OFFICIO MEMBERS.—
‘‘(A) SPECIAL ASSISTANT TO THE PRESIDENT FOR RURAL
POLICY.—If appointed by the President under section
6406(1) of the Farm Security and Rural Investment Act
of 2002, the Special Assistant to the President for Rural
Policy shall serve as an ex-officio, non-voting member of
the National Board.
H. R. 2646—273
‘‘(B) OTHER MEMBERS.—In consultation with the chair-
man and ranking member of each of the Committee on
Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the
Senate, the Secretary may appoint not more than 3 other
officers or employees of the Executive Branch to serve
as ex-officio, non-voting members of the National Board.
‘‘(6) VACANCIES.—A vacancy on the National Board shall
be filled in the same manner as the original appointment.
‘‘(7) COMPENSATION.—A member of the National Board
shall receive no compensation for service on the National Board,
but shall be reimbursed for travel and other expenses incurred
in carrying out the duties of the member of the National Board
in accordance with section 5702 and 5703 of title 5, United
States Code.
‘‘(8) CHAIRPERSON.—The National Board shall select a
chairperson from among the members of the National Board.
‘‘(9) MEETINGS.—
‘‘(A) TIME AND PLACE.—The National Board shall meet
at the call of the chairperson.
‘‘(B) QUORUM.—A quorum of the National Board shall
consist of a majority of the members.
‘‘(C) MAJORITY VOTE.—A decision of the National Board
shall be made by majority vote.
‘‘(10) FEDERAL STATUS.—For purposes of Federal law, a
member of the National Board shall be considered a special
Government employee (as defined in section 202(a) of title
18, United States Code).
‘‘(11) CONFLICT OF INTEREST.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(C), no member of the National Board shall vote on any
matter respecting any application for a grant or other
particular matter pending before the National Board 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.
‘‘(B) VIOLATIONS.—A violation of subparagraph (A) by
a member of the National 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 National
Board in which the member participated.
‘‘(C) EXCEPTION.—Subparagraph (A) shall not apply
to the extent a member of the National Board advises
the National Board of the nature of the particular matter
in which the member proposes to participate, if—
‘‘(i) the member makes a full disclosure of the
financial interest; and
‘‘(ii) prior to any participation by the member,
the National Board determines, by majority vote of
the other members of the National Board, that the
financial interest is too remote or too inconsequential
to affect the integrity of the services of the member
to the National Board in that matter.
H. R. 2646—274
‘‘(c) ADMINISTRATIVE SUPPORT.—The Secretary, on a reimburs-
able basis, may provide such administrative support to the National
Board as the Secretary determines is necessary to carry out the
duties of the National Board.
‘‘(d) DUTIES.—The National Board shall—
‘‘(1) certify Regional Boards in accordance with section
385C, with the initial certification of Regional Boards occurring
not later than 540 days after the date of enactment of this
subtitle;
‘‘(2) approve, negotiate, or disapprove each regional plan
that is submitted by a Regional Board to the National Board
under section 385C;
‘‘(3) develop, and submit to the Secretary for approval,
a national strategic investment plan;
‘‘(4) use the amount received from the Secretary under
section 385E to make planning grants and innovation grants
to Regional Boards and to otherwise carry out the program;
‘‘(5) provide leadership and advice to Regional Boards on
issues, best practices, and emerging trends relating to rural
development;
‘‘(6) evaluate the progress of each Regional Board in
achieving the benchmarks of the regional plan using annual
reports submitted under section 385C(b)(3)(D) and any other
information that is available to the Regional Board; and
‘‘(7) submit an annual report on the performance of
Regional Boards and the program to—
‘‘(A) the Committee on Agriculture of the House of
Representatives;
‘‘(B) the Committee on Agriculture, Nutrition, and For-
estry of the Senate; and
‘‘(C) the Secretary.
‘‘SEC. 385E. RURAL STRATEGIC INVESTMENT PROGRAM.
‘‘(a) IN GENERAL.—If the Secretary approves a national strategic
investment plan submitted by the National Board, of the funds
of the Commodity Credit Corporation, the Secretary shall transfer
to the National Board $100,000,000, to remain available until
expended, for the Board to use to make planning grants and innova-
tion grants to Regional Boards and to otherwise carry out this
subtitle.
‘‘(b) USE BY NATIONAL BOARD.—Of the amount transferred by
the Secretary to the National Board under subsection (a), the
National Board shall use—
‘‘(1) not less than $8,000,000 to make planning grants
to Regional Boards under section 385F;
‘‘(2) not less than $87,000,000 to make innovation grants
to Regional Boards under section 385G; and
‘‘(3) the remainder of the funds to carry out section 385H
and administer this subtitle (other than section 385H).
‘‘SEC. 385F. REGIONAL STRATEGIC INVESTMENT PLANNING GRANTS.
‘‘(a) IN GENERAL.—The National Board shall use amounts made
available under section 385E(b)(1) to make not fewer than 80 plan-
ning grants, on a competitive basis, to applicant Regional Boards
to develop, maintain, evaluate, and report progress on regional
strategic investment plans in accordance with section 385C and
this section.
H. R. 2646—275
‘‘(b) REGIONAL PLANS.—A regional plan for a region covered
by a Regional Board shall, to the maximum extent practicable,
cover—
‘‘(1) basic infrastructure needs of the region;
‘‘(2) basic services within the region;
‘‘(3) opportunities for economic diversification and innova-
tion within the region, with particular attention to entrepre-
neurial support and innovation;
‘‘(4) the current and future human resource capacity of
the region;
‘‘(5) access to market-based financing and venture and
equity capital in the region;
‘‘(6) the development of innovative public and private
collaborations for investments in the region; and
‘‘(7) other appropriate matters, as determined by the
National Board and the Secretary.
‘‘(c) PREFERENCES.—In awarding planning grants, the National
Board shall give a preference to planning grants that will be used
to address community capacity building and community sustain-
ability.
‘‘(d) AMOUNT.—The total amount of a planning grant made
to a Regional Board shall not exceed $100,000.
‘‘(e) COST SHARING.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), the
share of the costs of developing, maintaining, evaluating, and
reporting on a regional plan funded by a grant under this
section shall not exceed 50 percent.
‘‘(2) FORM.—
‘‘(A) IN GENERAL. Except as provided in subparagraph
(B), a Regional Board shall pay the grantee share of the
costs described in paragraph (1) in the form of cash, serv-
ices, materials, or other in-kind contributions.
‘‘(B) LIMITATION.—A grantee shall not pay more than
50 percent of the grantee share in the form of services,
materials, or other in-kind contributions.
‘‘(3) INCREASED SHARE.—The National Board may increase
the share of the costs covered by a planning grant made to
a Regional Board under this section if a limited ability of
the Regional Board to pay would otherwise create a barrier
to full participation in the program.
‘‘SEC. 385G. INNOVATION GRANTS.
‘‘(a) IN GENERAL.—The National Board shall use amounts made
available under section 385E(b)(2) to make innovation grants, on
a competitive basis, to Regional Boards to implement projects that
are identified in the regional plans of the Regional Boards.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—For a Regional Board to be eligible to
receive an innovation grant, the National Board shall determine
that—
‘‘(A) the regional plan of a Regional Board meets the
requirements of this subtitle;
‘‘(B) the management and organizational structure of
the Regional Board is sufficient to oversee grant projects;
‘‘(C) the Regional Board will be able to provide the
grantee share required under this section; and
H. R. 2646—276
‘‘(D) the Regional Board agrees to achieve, to the max-
imum extent practicable, the performance-based bench-
marks of the regional plan.
‘‘(2) RELATIONSHIP
TO
PLANNING
GRANTS.—A Regional
Board that meets the requirements of paragraph (1) shall be
eligible to receive an innovation grant, regardless of whether
the Regional Board receives a planning grant.
‘‘(c) SELECTION.—Subject to subsection (d), of the applications
submitted by Regional Boards for innovation grants, the National
Board shall, to the maximum extent practicable, select not fewer
than 30 regional boards to receive innovation grants.
‘‘(d) PREFERENCES.—In awarding innovation grants, the
National Board shall give a preference (in order of priority) to
Regional Boards that—
‘‘(1) exhibit collaborative innovation and entrepreneurship,
particularly within a public-private partnership;
‘‘(2) represent a broad coalition of interests described in
section 385C(b)(2)(A);
‘‘(3) demonstrate a plan to leverage public (Federal and
non-federal) and private funds and existing assets, including
natural assets and public infrastructure;
‘‘(4) address gaps in existing basic services within a region;
‘‘(5) address economic diversification, including agricultural
and non-agriculturally based economies, within a regional
framework;
‘‘(6) demonstrate a plan to achieve multijurisdictional
regional planning and development, with particular evidence
of economic development successes within diverse stakeholder
frameworks; or
‘‘(7) meet other community development needs identified
by a Regional Board.
‘‘(e) USES.—
‘‘(1) LEVERAGE.—A Regional Board shall prioritize projects,
in part, on the degree to which the Regional Board is able
to leverage additional funds for the implementation of the
projects.
‘‘(2) PURPOSES.—A Regional Board may use an innovation
grant provided for a region—
‘‘(A) to support the development of critical infrastruc-
ture necessary to facilitate economic development in the
region;
‘‘(B) to provide assistance to entities within the region
that provide basic public services;
‘‘(C) to assist with job training, workforce development,
or other needs related to the development and maintenance
of strong local and regional economies;
‘‘(D) to assist in the development of unique new
collaborations that link public, private, and philanthropic
resources to achieve collaboratively designed regional
advancement; and
‘‘(E) to provide support to business investment.
‘‘(3) OTHER
DEPARTMENT
PROGRAMS.—A Regional Board
may not use an innovation grant provided for a region for
any purpose for which funding may be obtained under any
other rural development program of the Department of Agri-
culture unless—
‘‘(A) the Regional Board—
H. R. 2646—277
‘‘(i) has submitted an application for the funding
under the other program; and
‘‘(ii) withdraws the application; and
‘‘(B) the National Board approves use of the innovation
grant for that purpose.
‘‘(4) OPERATING EXPENSES.—A Regional Board may use for
administrative costs in carrying out programs and activities
related to the grant the greater of—
‘‘(A) $100,000; or
‘‘(B) 5 percent of the amount of an innovation grant
provided.
‘‘(f) AMOUNT.—
‘‘(1) IN GENERAL.—The amount of an innovation grant made
to a Regional Board shall not exceed $3,000,000.
‘‘(2) AVAILABILITY.—The amount of an innovation grant
made to a Regional Board shall remain available until
expended.
‘‘(g) COST SHARING.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), the
share of the costs of projects covered by an innovation grant
made to a Regional Board under this section shall not exceed
75 percent, as determined by the National Board.
‘‘(2) FORM.—A Regional Board may pay the grantee share
of the costs of projects covered by an innovation grant in the
form of cash or services, materials, or other in-kind contribu-
tions.
‘‘(3) WAIVER OF GRANTEE SHARE.—The National Board may
waive the grantee share of the costs of projects covered by
an innovation grant made to a Regional Board under this
section if the National Board determines that such a waiver
is appropriate.
‘‘(4) OTHER FEDERAL PROGRAMS.—For the purpose of deter-
mining grantee share requirements for any other Federal pro-
grams, funds provided for innovation grants shall be considered
to be non-Federal funds.
‘‘(h) NEGOTIATION.—The National Board may—
‘‘(1) negotiate with a Regional Board on the substance,
size, and scope of a regional plan; and
‘‘(2) approve an innovation grant for an amount that is
lower than the amount requested by the Regional Board.
‘‘(i) NONCOMPLIANCE.—If a Regional Board fails to comply with
the requirements of this section, the National Board may take
such actions as are necessary to obtain reimbursement of unused
grant funds.
‘‘(j) OTHER USES.—The National Board may use not more than
5 percent of the amounts made available for innovation grants—
‘‘(1) to provide assistance to interests described in section
385C(b)(2)(A) to obtain certification of a Regional Board;
‘‘(2) 
to 
provide 
assistance 
for 
emergent 
innovative
opportunities that are not covered by existing regional plans;
‘‘(3) to provide technical assistance, research, organizational
support, and other capacity building infrastructure to support
existing Regional Boards;
‘‘(4) to provide assistance for other entrepreneurial
opportunities to advance the goals of the program; or
‘‘(5) to advance a more integrative rural policy framework
for the United States.
H. R. 2646—278
‘‘(k) TRANSFERS.—To ensure maximum use of funds provided
under this subtitle, the National Board may transfer not more
than 10 percent of the amount of funds made available between
planning grants and innovation grants.
‘‘SEC. 385H. NATIONAL CONFERENCE ON RURAL AMERICA.
‘‘(a) IN GENERAL.—The President shall call and conduct a
National Conference on Rural America, which shall be held not
earlier than November 1, 2002, and not later than October 30,
2004.
‘‘(b) PURPOSE.—The purpose of the Conference shall be to bring
together the resources of governmental agencies and the private
and nonprofit sectors to develop—
‘‘(1) policy recommendations and integrative strategies for
addressing the unique challenges facing rural areas of the
United States; and
‘‘(2) an implementation plan, with outcome-based measure-
ments, for addressing the challenges.
‘‘(c) COMPOSITION.—
‘‘(1) IN GENERAL.—The Conference shall be comprised of—
‘‘(A) representatives of organizations devoted to rural
development;
‘‘(B) Members of Congress, including the chairman and
ranking member of each of the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate;
‘‘(C) representatives of the Department of Agriculture
and other Federal agencies;
‘‘(D) State, local, and tribal elected officials and rep-
resentatives;
‘‘(E) representatives of colleges and universities, State
and tribal extension services, and State rural development
councils; and
‘‘(F) individuals with specialized knowledge of and
expertise in rural and community development, cooperative
business, agricultural credit, venture capital, health care,
and rural demography.
‘‘(2) SELECTION.—Of the participants in the Conference
described in paragraph (1)—
‘‘(A) 1⁄3 of the members shall be selected by the Presi-
dent;
‘‘(B) 1⁄3 of the members shall be selected by the Chair-
man and the ranking member of the Committee on Agri-
culture of the House of Representatives; and
‘‘(C) 1⁄3 of the members shall be selected by the Chair-
man and the ranking member of the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
‘‘(3) REPRESENTATION.—In selecting the participants of the
Conference, the President and the Chairman of each Committee
referred to in paragraph (2) shall ensure, to the maximum
extent practicable, that the participants are representative of
the ethnic, racial, and linguistic diversity of rural areas of
the United States.
‘‘(d) REPORT.—
‘‘(1) REPORT TO PRESIDENT.—Not later than 120 days after
the termination of the Conference, the Conference shall submit
H. R. 2646—279
to the President a report that contains the findings and rec-
ommendations of the Conference, including findings and rec-
ommendations to address needs related to—
‘‘(A) telecommunications;
‘‘(B) rural health issues;
‘‘(C) transportation;
‘‘(D) opportunities for economic diversification and
innovation within rural America, with particular attention
to entrepreneurial support and innovation;
‘‘(E) the current and future human resource capacity
of rural America;
‘‘(F) access to market-based financing and venture and
equity capital in rural America; and
‘‘(G) the development of innovative public and private
collaborations for investments in rural America.
‘‘(2) REPORT MADE PUBLIC AND TO CONGRESS.—Not later
than 90 days after receipt by the President, the President
shall—
‘‘(A) make the report public; and
‘‘(B) transmit to the Committee on Agriculture of the
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a copy of
the report and a statement of the President containing
recommendations for implementing the report.
‘‘(3) PUBLICATION AND DISTRIBUTION.—
‘‘(A) IN GENERAL.—The Conference shall publish and
distribute the report described in paragraph (1).
‘‘(B) MANDATORY DISTRIBUTION.—The Conference shall
provide a copy of a report published under subparagraph
(A), at no cost, to—
‘‘(i) each Federal depository library; and
‘‘(ii) on request, each State, tribal, and local elected
official in a rural area of the United States.
‘‘(e) FUNDING.—Not later than 180 days after the establishment
of the National Board, the National Board shall transfer not more
than $2,000,000 to the Office of the President to carry out this
section, to remain available until expended.’’.
SEC. 6031. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND
GRANT APPLICATIONS.
(a) DEFINITION
OF APPLICATION.—In this section, the term
‘‘application’’ does not include an application for a loan or grant
that, as of the date of enactment of this Act, is in the preapplication
phase of consideration under regulations of the Secretary of Agri-
culture in effect on the date of enactment of this Act.
(b) USE OF FUNDS.—Subject to subsection (c), the Secretary
of Agriculture shall use funds made available under subsection
(d) to provide funds for applications that are pending on the date
of enactment of this Act for—
(1) water or waste disposal grants or direct loans under
paragraph (1) or (2) of section 306(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1926(a)); and
(2) emergency community water assistance grants under
section 306A of that Act (7 U.S.C. 1926a).
(c) LIMITATIONS.—
(1) APPROPRIATED AMOUNTS.—Funds made available under
this section shall be available to the Secretary to provide funds
H. R. 2646—280
for applications for loans and grants described in subsection
(b) that are pending on the date of enactment of this Act
only to the extent that funds for the loans and grants appro-
priated in the annual appropriations Act for fiscal year 2002
have been exhausted.
(2) PROGRAM
REQUIREMENTS.—The Secretary may use
funds made available under this section to provide funds for
a pending application for a loan or grant described in subsection
(b) only if the Secretary processes, reviews, and approves the
application in accordance with regulations in effect on the date
of enactment of this Act.
(3) PRIORITY.—In providing funding under this section for
pending applications for loans or grants described in subsection
(b), the Secretary shall provide funding in the following order
of priority (until funds made available under this section are
exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal systems.
(d) FUNDING.—Notwithstanding any other provision of law, of
the funds of the Commodity Credit Corporation, the Secretary shall
use $360,000,000 to carry out this section, to remain available
until expended.
Subtitle B—Rural Electrification Act of
1936
SEC. 6101. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELEC-
TRIFICATION OR TELEPHONE PURPOSES.
(a) IN GENERAL.—The Rural Electrification Act of 1936 is
amended by inserting after section 313 (7 U.S.C. 940c) the following:
‘‘SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELEC-
TRIFICATION OR TELEPHONE PURPOSES.
‘‘(a) IN GENERAL.—Subject to subsection (b), the Secretary shall
guarantee payments on bonds or notes issued by cooperative or
other lenders organized on a not-for-profit basis if the proceeds
of the bonds or notes are used to make loans for any electrification
or telephone purpose eligible for assistance under this Act, including
section 4 or 201 or to refinance bonds or notes issued for such
purposes.
‘‘(b) LIMITATIONS.—
‘‘(1) OUTSTANDING LOANS.—A lender shall not receive a
guarantee under this section for a bond or note if, at the
time of the guarantee, the total principal amount of such
guaranteed bonds or notes outstanding of the lender would
exceed the principal amount of outstanding loans of the lender
for electrification or telephone purposes that have been made
concurrently with loans approved for such purposes under this
Act.
‘‘(2) GENERATION OF ELECTRICITY.—The Secretary shall not
guarantee payment on a bond or note issued by a lender,
the proceeds of which are used for the generation of electricity.
‘‘(3) QUALIFICATIONS.—The Secretary may deny the request
of a lender for the guarantee of a bond or note under this
section if the Secretary determines that—
H. R. 2646—281
‘‘(A) the lender does not have appropriate expertise
or experience or is otherwise not qualified to make loans
for electrification or telephone purposes;
‘‘(B) the bond or note issued by the lender would not
be investment grade quality without a guarantee; or
‘‘(C) the lender has not provided to the Secretary a
list of loan amounts approved by the lender that the lender
certifies are for eligible purposes described in subsection
(a).
‘‘(4) INTEREST RATE REDUCTION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), a lender may not use any amount obtained from the
reduction in funding costs as a result of the guarantee
of a bond or note under this section to reduce the interest
rate on a new or outstanding loan.
‘‘(B) CONCURRENT
LOANS.—A lender may use any
amount described in subparagraph (A) to reduce the
interest rate on a loan if the loan is—
‘‘(i) made by the lender for electrification or tele-
phone projects that are eligible for assistance under
this Act; and
‘‘(ii) made concurrently with a loan approved by
the Secretary under this Act for such a project, as
provided in section 307.
‘‘(c) FEES.—
‘‘(1) IN GENERAL.—A lender that receives a guarantee issued
under this section on a bond or note shall pay a fee to the
Secretary.
‘‘(2) AMOUNT.—The amount of an annual fee paid for the
guarantee of a bond or note under this section shall be equal
to 30 basis points of the amount of the unpaid principal of
the bond or note guaranteed under this section.
‘‘(3) PAYMENT.—A lender shall pay the fees required under
this subsection on a semiannual basis.
‘‘(4) RURAL ECONOMIC DEVELOPMENT SUBACCOUNT.—Subject
to subsection (e)(2), fees collected under this subsection shall
be—
‘‘(A) deposited into the rural economic development
subaccount maintained under section 313(b)(2)(A), to
remain available until expended; and
‘‘(B) used for the purposes described in section
313(b)(2)(B).
‘‘(d) GUARANTEES.—
‘‘(1) IN GENERAL.—A guarantee issued under this section
shall—
‘‘(A) be for the full amount of a bond or note, including
the amount of principal, interest, and call premiums;
‘‘(B) be fully assignable and transferable; and
‘‘(C) represent the full faith and credit of the United
States.
‘‘(2) LIMITATION.—To ensure that the Secretary has the
resources necessary to properly examine the proposed guaran-
tees, the Secretary may limit the number of guarantees issued
under this section to 5 per year.
‘‘(3) DEPARTMENT OPINION.—On the timely request of a
lender, the General Counsel of the Department of Agriculture
shall provide the Secretary with an opinion regarding the
H. R. 2646—282
validity and authority of a guarantee issued to the lender
under this section.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be appropriated
such sums as are necessary to carry out this section.
‘‘(2) FEES.—To the extent that the amount of funds appro-
priated for a fiscal year under paragraph (1) are not sufficient
to carry out this section, the Secretary may use up to 1⁄3
of the fees collected under subsection (c) for the cost of providing
guarantees of bonds and notes under this section before depos-
iting the remainder of the fees into the rural economic develop-
ment subaccount maintained under section 313(b)(2)(A).
‘‘(f) TERMINATION.—The authority provided under this section
shall terminate on September 30, 2007.’’.
(b) ADMINISTRATION.—
(1) REGULATIONS.—Not later than 180 days after the date
of enactment of this Act, the Secretary of Agriculture shall
promulgate regulations to carry out the amendments made
by this section.
(2) IMPLEMENTATION.—Not later than 240 days after the
date of enactment of this Act, the Secretary shall implement
the amendment made by this section.
SEC. 6102. EXPANSION OF 911 ACCESS.
Title III of the Rural Electrification Act of 1936 (7 U.S.C.
931 et seq.) is amended by adding at the end the following:
‘‘SEC. 315. EXPANSION OF 911 ACCESS.
‘‘(a) IN GENERAL.—Subject to such terms and conditions as
the Secretary may prescribe, the Secretary may make telephone
loans under this title to borrowers of loans made by the Rural
Utilities Service, State or local governments, Indian tribes (as
defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), or other public entities for facilities
and equipment to expand or improve 911 access and integrated
emergency communications systems in rural areas.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2002 through 2007.’’.
SEC. 6103. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN
RURAL AREAS.
(a) IN GENERAL.—The Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.) is amended by adding at the end the following:
‘‘TITLE VI—RURAL BROADBAND ACCESS
‘‘SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES
IN RURAL AREAS.
‘‘(a) PURPOSE.—The purpose of this section is to provide loans
and loan guarantees to provide funds for the costs of the construc-
tion, improvement, and acquisition of facilities and equipment for
broadband service in eligible rural communities.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) BROADBAND SERVICE.—The term ‘broadband service’
means any technology identified by the Secretary as having
the capacity to transmit data to enable a subscriber to the
H. R. 2646—283
service to originate and receive high-quality voice, data,
graphics, and video.
‘‘(2) ELIGIBLE RURAL COMMUNITY.—The term ‘eligible rural
community’ means any incorporated or unincorporated place
that—
‘‘(A) has not more than 20,000 inhabitants, based on
the most recent available population statistics of the
Bureau of the Census; and
‘‘(B) is not located in an area designated as a standard
metropolitan statistical area.
‘‘(c) LOANS AND LOAN GUARANTEES.—
‘‘(1) IN GENERAL.—The Secretary shall make or guarantee
loans to eligible entities described in subsection (d) to provide
funds for the construction, improvement, or acquisition of facili-
ties and equipment for the provision of broadband service in
eligible rural communities.
‘‘(2) PRIORITY.—In making or guaranteeing loans under
paragraph (1), the Secretary shall give priority to eligible rural
communities in which broadband service is not available to
residential customers.
‘‘(d) ELIGIBLE ENTITIES.—
‘‘(1) IN GENERAL.—To be eligible to obtain a loan or loan
guarantee under this section, an entity shall—
‘‘(A) have the ability to furnish, improve, or extend
a broadband service to an eligible rural community; and
‘‘(B) submit to the Secretary a proposal for a project
that meets the requirements of this section.
‘‘(2) STATE
AND
LOCAL
GOVERNMENTS.—A State or local
government (including any agency, subdivision, or instrumen-
tality thereof (including consortia thereof)) shall be eligible
for a loan or loan guarantee under this section to provide
broadband services to an eligible rural community only if, not
later than 90 days after the Administrator has promulgated
regulations to carry out this section, no other eligible entity
is already offering, or has committed to offer, broadband serv-
ices to the eligible rural community.
‘‘(3) SUBSCRIBER
LINES.—An entity shall not be eligible
to obtain a loan or loan guarantee under this section if the
entity serves more than 2 percent of the telephone subscriber
lines installed in the aggregate in the United States.
‘‘(e) BROADBAND SERVICE.—The Secretary shall, from time to
time as advances in technology warrant, review and recommend
modifications of rate-of-data transmission criteria for purposes of
the identification of broadband service technologies under sub-
section (b)(1).
‘‘(f) TECHNOLOGICAL NEUTRALITY.—For purposes of determining
whether or not to make a loan or loan guarantee for a project
under this section, the Secretary shall use criteria that are techno-
logically neutral.
‘‘(g) TERMS AND CONDITIONS FOR LOANS AND LOAN GUARAN-
TEES.—Notwithstanding any other provision of law, a loan or loan
guarantee under subsection (c) shall—
‘‘(1) bear interest at an annual rate of, as determined
by the Secretary—
‘‘(A) in the case of a direct loan—
H. R. 2646—284
‘‘(i) the cost of borrowing to the Department of
the Treasury for obligations of comparable maturity;
or
‘‘(ii) 4 percent; and
‘‘(B) in the case of a guaranteed loan, the current
applicable market rate for a loan of comparable maturity;
and
‘‘(2) have a term not to exceed the useful life of the assets
constructed, improved, or acquired with the proceeds of the
loan or extension of credit.
‘‘(h) USE OF LOAN PROCEEDS TO REFINANCE LOANS FOR DEPLOY-
MENT OF BROADBAND SERVICE.—Notwithstanding any other provi-
sion of this Act, the proceeds of any loan made or guaranteed
by the Secretary under this Act may be used by the recipient
of the loan for the purpose of refinancing an outstanding obligation
of the recipient on another telecommunications loan made under
this Act if the use of the proceeds for that purpose will further
the construction, improvement, or acquisition of facilities and equip-
ment for the provision of broadband service in eligible rural commu-
nities.
‘‘(i) REPORTS.—Not later than 1 year after the date of enactment
of this section, and biennially thereafter, the Administrator shall
submit to Congress a report that—
‘‘(1) describes how the Administrator determines under sub-
section (a)(1) that a service enables a subscriber to originate
and receive high-quality voice, data, graphics, and video; and
‘‘(2) provides a detailed list of services that have been
granted assistance under this section.
‘‘(j) FUNDING.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section—
‘‘(A) $20,000,000 for each of fiscal years 2002 through
2005, to remain available until expended; and
‘‘(B) $10,000,000 for each of fiscal years 2006 and 2007,
to remain available until expended.
‘‘(2) TELEVISION FUNDS.—
‘‘(A) IN GENERAL.—The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section,
without further appropriation any funds made available
under section 1011(a)(2)(B) of the Launching Our Commu-
nities’ Access to Local Television Act of 2000 (47 U.S.C.
1109(a)(2)(B)).
‘‘(B) USE OF TELEVISION FUNDS.—The Secretary shall
use any funds received under subparagraph (A) in equal
amounts for each remaining fiscal year on receipt of the
funds (including the fiscal year of receipt) through fiscal
year 2007.
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—In addition to
funds otherwise made available under this subsection, there
are authorized to be appropriated such sums as necessary to
carry out this section for each of fiscal years 2003 through
2007.
‘‘(4) ALLOCATION OF FUNDS.—
‘‘(A) IN GENERAL.—From amounts made available for
each fiscal year under this subsection, the Secretary shall—
H. R. 2646—285
‘‘(i) establish a national reserve for loans and loan
guarantees to eligible entities in States under this
section; and
‘‘(ii) allocate amounts in the reserve to each State
for each fiscal year for loans and loan guarantees to
eligible entities in the State.
‘‘(B) AMOUNT.—The amount of an allocation made to
a State for a fiscal year under subparagraph (A) shall
bear the same ratio to the amount of allocations made
for all States for the fiscal year as the number of commu-
nities with a population of 2,500 inhabitants or less in
the State bears to the number of communities with a
population of 2,500 inhabitants or less in all States, as
determined on the basis of the latest available census.
‘‘(C) UNOBLIGATED
AMOUNTS.—Any amounts in the
reserve established for a State for a fiscal year under
subparagraph (B) that are not obligated by April 1 of
the fiscal year shall be available to the Secretary to make
loans and loan guarantees under this section to eligible
entities in any State, as determined by the Secretary.
‘‘(k) TERMINATION OF AUTHORITY.—No loan or loan guarantee
may be made under this section after September 30, 2007.’’.
(b) REGULATIONS.—
(1) IN GENERAL.—Not later than 180 days after the date
of enactment of this Act, the Secretary of Agriculture shall
promulgate such regulations as are necessary to implement
the amendment made by subsection (a).
(2) PROCEDURE.—The promulgation of the regulations shall
be made without regard to—
(A) the notice and comment provisions of section 553
of title 5, United States Code;
(B) the Statement of Policy of the Secretary of Agri-
culture effective July 24, 1971 (36 Fed. Reg. 13804),
relating to notices of proposed rulemaking and public
participation in rulemaking; and
(C) chapter 35 of title 44, United States Code (com-
monly known as the ‘‘Paperwork Reduction Act’’).
(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In
carrying out this subsection, the Secretary shall use the
authority provided under section 808 of title 5, United States
Code.
Subtitle C—Food, Agriculture,
Conservation, and Trade Act of 1990
SEC. 6201. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMER-
CIALIZATION CORPORATION.
(a) REPEAL OF CORPORATION AUTHORIZATION.—Subtitle G of
title XVI of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5901 et seq.) is repealed.
(b) DISPOSITION OF ASSETS.—On the date of enactment of this
Act—
(1) the assets, both tangible and intangible, of the Alter-
native Agricultural Research and Commercialization Corpora-
tion (referred to in this section as the ‘‘Corporation’’), including
the funds in the Alternative Agricultural Research and
H. R. 2646—286
Commercialization Revolving Fund as of the date of enactment
of this Act, are transferred to the Secretary of Agriculture;
and
(2) notwithstanding the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 471 et seq.) and any
other law that prescribes procedures for procurement, use, and
disposal of property by a Federal agency, the Secretary shall
have authority to manage and dispose of the assets transferred
under paragraph (1) in a manner that, to the maximum extent
practicable, provides the best value to the Federal Government.
(c) USE OF ASSETS.—
(1) IN GENERAL.—Funds transferred under subsection (b),
and any income from assets or proceeds from the sale of assets
transferred under subsection (b), shall be deposited in an
account in the Treasury, and shall remain available to the
Secretary until expended, without further appropriation, to
pay—
(A) any claims against, or obligations of, the Corpora-
tion; and
(B) the costs incurred by the Secretary in carrying
out this section.
(2) FINAL DISPOSITION.—On final disposition of all assets
transferred under subsection (b), any funds remaining in the
account described in paragraph (1) shall be transferred into
miscellaneous receipts in the Treasury.
(d) CONFORMING AMENDMENTS.—
(1) Section 5315 of title 5, United States Code, is amended
by striking ‘‘Executive Director of the Alternative Agricultural
Research and Commercialization Corporation’’.
(2) Section 730 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 5902 note; Public Law 104–
127) is repealed.
(3) Section 211(b) of the Department of Agriculture Reorga-
nization Act of 1994 (7 U.S.C. 6911(b)) is amended by striking
paragraph (5).
(4) Section 404(d) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7624(d)) is
amended—
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and (4) as para-
graphs (2) and (3), respectively.
(5) The Herger-Feinstein Quincy Library Group Forest
Recovery Act (16 U.S.C. 2104; Public Law 105–277; 112 Stat.
2681–305) is amended by striking subsection (m).
(6) Section 9101(3) of title 31, United States Code, is
amended by striking subparagraph (Q).
SEC. 6202. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
Subtitle H of title XVI of the Food, Agriculture, Conservation,
and Trade Act of 1990 is amended by inserting after section 1669
(7 U.S.C. 5922) the following:
‘‘SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) DEVELOPMENT CENTER.—The term ‘development center’
means—
‘‘(A) the North Central Regional Center for Rural
Development;
H. R. 2646—287
‘‘(B) the Northeast Regional Center for Rural Develop-
ment or its designee;
‘‘(C) the Southern Rural Development Center; and
‘‘(D) the Western Rural Development Center or its
designee.
‘‘(2) EXTENSION PROGRAM.—The term ‘extension program’
means the rural electronic commerce extension program estab-
lished under subsection (b).
‘‘(3) MICROENTERPRISE.—The term ‘microenterprise’ means
a commercial enterprise that has 5 or fewer employees, 1 or
more of whom own the enterprise.
‘‘(4) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture, acting through the Administrator of the Coopera-
tive State Research, Education, and Extension Service.
‘‘(5) SMALL BUSINESS.—The term ‘small business’ has the
meaning given the term ‘small-business concern’ by section
3(a) of the Small Business Act (15 U.S.C. 632(a)).
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a rural
electronic commerce extension program to expand and enhance
electronic commerce practices and technology to be used by small
businesses and microenterprises in rural areas.
‘‘(c) GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall carry out the pro-
gram established under subsection (b) by making—
‘‘(A) grants to each of the development centers; and
‘‘(B) competitive grants to land-grant colleges and
universities (or consortia of land-grant colleges and univer-
sities) and to colleges and universities (including commu-
nity colleges) with agricultural or rural development
programs—
‘‘(i) to develop and facilitate innovative rural elec-
tronic commerce business strategies; and
‘‘(ii) to assist small businesses and microenter-
prises in identifying, adapting, implementing, and
using electronic commerce business practices and tech-
nologies.
‘‘(2) ELIGIBILITY.—The selection criteria established for
grants awarded under paragraph (1)(B) shall include—
‘‘(A) the ability of an applicant to provide training
and education on best practices, technology transfer, adop-
tion, and use of electronic commerce in rural communities
by small businesses and microenterprises;
‘‘(B) the extent and geographic diversity of the area
served by the proposed project or activity under the exten-
sion program;
‘‘(C) in the case of a land-grant college or university,
the extent of participation of the land-grant college or
university in the extension program (including any eco-
nomic benefits that would result from that participation);
‘‘(D) the percentage of funding and in-kind commit-
ments from non-Federal sources that would be needed by
and available for a proposed project or activity under the
extension program; and
‘‘(E) the extent of participation of low-income and
minority businesses or microenterprises in a proposed
project or activity under the extension program.
‘‘(3) NON-FEDERAL SHARE.—
H. R. 2646—288
‘‘(A) IN
GENERAL.—As a condition of the receipt of
funds under this section, a development center or grant
applicant shall agree to obtain from non-Federal sources
(including State, local, nonprofit, or private sector sources)
contributions of an amount equal to 50 percent of the
grant amount.
‘‘(B) FORM.—The non-Federal share required under
subparagraph (A) may be provided in the form of in-kind
contributions.
‘‘(C) EXCEPTION.—The non-Federal share required
under subparagraph (A) may be reduced to 25 percent
if the grant recipient serves low-income or minority-owned
businesses or microenterprises, as determined by the Sec-
retary.
‘‘(d) REPORT.—Not later than 2 years after the date of enact-
ment of this section, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that describes—
‘‘(1) the policies, practices, and procedures used to assist
rural communities in efforts to adopt and use electronic com-
merce techniques; and
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $60,000,000 for each
of fiscal years 2002 through 2007, of which not less than 1⁄3 of
the amount made available for each fiscal year shall be used to
carry out activities under subsection (c)(1)(A).’’.
SEC. 6203. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN
RURAL AREAS.
(a) IN GENERAL.—Section 2335A of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 950aaa–5) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
(b) CONFORMING AMENDMENT.—Section 1(b) of Public Law 102–
551 (7 U.S.C. 950aaa note) is amended by striking ‘‘1997’’ and
inserting ‘‘2007’’.
Subtitle D—SEARCH Grants for Small
Communities
SEC. 6301. DEFINITIONS.
In this subtitle:
(1) COUNCIL.—The term ‘‘council’’ means an independent
citizens’ council established by a State rural development
director under section 6302(c).
(2) ENVIRONMENTAL PROJECT.—
(A) IN
GENERAL.—The term ‘‘environmental project’’
means a project that—
(i) improves environmental quality; and
(ii) is necessary to comply with an applicable
environmental law (including a regulation).
(B) INCLUSION.—The term ‘‘environmental project’’
includes an initial feasibility study of a project.
(3) REGION.—The term ‘‘region’’ means a geographic area
of a State, as determined by the State rural development
H. R. 2646—289
director, in coordination with the environmental protection
director of the State.
(4) SEARCH GRANT.—The term ‘‘SEARCH grant’’ means
a grant awarded under section 6302(f).
(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture.
(6) SMALL
COMMUNITY.—The term ‘‘small community’’
means an incorporated or unincorporated rural community with
a population of 2,500 inhabitants or less.
(7) STATE.—The term ‘‘State’’ has the meaning given the
term in section 381A of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009).
SEC. 6302. SEARCH GRANT PROGRAM.
(a) IN GENERAL.—The Secretary, in coordination with the
Administrator of the Environmental Protection Agency, may estab-
lish the SEARCH grant program.
(b) ALLOCATION TO STATE RURAL DEVELOPMENT DIRECTORS.—
(1) IN
GENERAL.—Subject to paragraph (2) and section
6304(a)(2), not later than 60 days after the date on which
the Director of the Office of Management and Budget apportions
any amounts made available under this subtitle for any of
fiscal years 2002 through 2007, the Secretary, on request of
a State rural development director (in coordination with the
environmental protection director of the State), shall allocate
to the State rural development director an amount not to exceed
$1,000,000, to be used by the State rural development director
to award SEARCH grants under subsection (d).
(2) GRANTS TO STATES.—The total amount of funds allocated
to State rural development directors in all States other than
Alaska, Hawaii, or the 48 contiguous States for a fiscal year
under this subsection shall not exceed $1,000,000.
(c) INDEPENDENT CITIZENS’ COUNCIL.—
(1) ESTABLISHMENT.—The State rural development director
of a State shall establish an independent citizens’ council to
carry out the duties described in this section.
(2) COMPOSITION.—
(A) IN GENERAL.—A council shall be composed of 9
members, appointed by the State rural development
director, in coordination with the environmental protection
director of the State.
(B) REPRESENTATION; RESIDENCE.—Each member of a
council shall—
(i) represent an individual region of the State,
as determined by the State rural development director;
and
(ii) reside in a small community in the State.
(d) ELIGIBILITY.—A SEARCH grant shall be awarded under
this section only to a small community for 1 or more environmental
projects for which the small community—
(1) needs funds to carry out initial feasibility or environ-
mental studies as required by Federal or State law before
applying to traditional funding sources; and
(2) demonstrates that the small community has been
unable to obtain sufficient funding from traditional funding
sources.
H. R. 2646—290
(e) APPLICATIONS.—To be eligible to receive a SEARCH grant,
a small community in a State shall submit to the State rural
development director of the State an application that includes—
(1) a description of the proposed environmental project
(including an explanation of how the project would assist the
small community in complying with a Federal or State environ-
mental law (including a regulation);
(2) an explanation of why the project is important to the
small community;
(3) a description of all actions taken with respect to the
project as of the date of the application, including any attempt
to secure funding; and
(4) a description of demonstrated need for funding for the
project.
(f) AWARDS.—
(1) IN GENERAL.—Not later than May 1 of each fiscal year,
a State rural development director, in coordination with the
council and the environmental protection director of the State,
shall—
(A) review all applications received by the State rural
development director under subsection (e); and
(B) award SEARCH grants to small communities based
on—
(i) an evaluation of whether the proposed project
meets the eligibility criteria under subsection (d); and
(ii) the content of the application.
(2) ADMINISTRATION.—In awarding a SEARCH grant, a
State rural development director—
(A) shall award the funds for any recommended
environmental project in a timely and expeditious manner;
and
(B) shall not award a SEARCH grant to a grantee
or project in violation of any Federal or State law (including
a regulation).
(3) MATCHING
REQUIREMENT.—A small community that
receives a SEARCH grant under this section may be required
to provide matching funds.
(g) UNEXPENDED FUNDS.—
(1) IN GENERAL.—If, for any fiscal year, any unexpended
funds remain after SEARCH grants are awarded by a State
rural development director under subsection (f), the State rural
development director, in coordination with the environmental
protection director of the State, may repeat the application
and review process so that any remaining funds are rec-
ommended for award, and awarded, not later than July 30
of the fiscal year.
(2) RETENTION OF FUNDS.—
(A) IN GENERAL.—Any unexpended funds that are not
awarded under subsection (f) or paragraph (1) shall be
retained by the State rural development director for award
during the following fiscal year.
(B) LIMITATION.—A State SEARCH account that
accumulates a balance of unexpended funds described in
subparagraph (A) in excess of $2,000,000 shall be ineligible
to receive additional funds for SEARCH grants until such
time as the State rural development director awards grants
in the amount of the excess.
H. R. 2646—291
SEC. 6303. REPORT.
Not later than 30 days after the end of the first fiscal year
for which SEARCH grants are awarded, and annually thereafter,
the Secretary shall submit to the Committee on Energy and Com-
merce and the Committee on Agriculture of the House of Represent-
atives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that—
(1) describes the number of SEARCH grants awarded
during the fiscal year;
(2) identifies each small community that received a
SEARCH grant during the fiscal year;
(3) describes the project or purpose for which each SEARCH
grant was awarded, including a statement of the benefit to
public health or the environment of the environmental project
receiving the grant funds; and
(4) describes the status of each project or portion of a
project for which a SEARCH grant was awarded, including
a project or portion of a project for which a SEARCH grant
was awarded for any previous fiscal year.
SEC. 6304. FUNDING.
(a) ALLOCATION TO STATE RURAL DEVELOPMENT DIRECTORS.—
(1) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out section 6302(b) $51,000,000
for each of fiscal years 2002 through 2007, of which not to
exceed $1,000,000 shall be used to make grants under section
6302(b)(2).
(2) ACTUAL APPROPRIATION.—If funds to carry out section
6302(b) are made available for a fiscal year in an amount
that is less than the amount authorized under paragraph (1)
for the fiscal year, the Secretary shall divide the appropriated
funds for the fiscal year equally among the 50 States.
(b) OTHER EXPENSES.—There are authorized to be appropriated
such sums as are necessary to carry out this subtitle (other than
section 6302(b)).
Subtitle E—Miscellaneous
SEC. 
6401. 
VALUE-ADDED 
AGRICULTURAL 
PRODUCT 
MARKET
DEVELOPMENT GRANTS.
(a) IN GENERAL.—Section 231 of the Agricultural Risk Protec-
tion Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) is
amended—
(1) by redesignating subsections (b) through (d) as sub-
sections (c) through (e), respectively;
(2) by striking subsection (a) and inserting the following:
‘‘(a) DEFINITION OF VALUE-ADDED AGRICULTURAL PRODUCT.—
‘‘(1) IN
GENERAL.—The term ‘value-added agricultural
product’ means any agricultural commodity or product that—
‘‘(A)(i) has undergone a change in physical state;
‘‘(ii) was produced in a manner that enhances the
value of the agricultural commodity or product, as dem-
onstrated through a business plan that shows the enhanced
value, as determined by the Secretary; or
H. R. 2646—292
‘‘(iii) is physically segregated in a manner that results
in the enhancement of the value of the agricultural com-
modity or product; and
‘‘(B) as a result of the change in physical state or
the manner in which the agricultural commodity or product
was produced or segregated—
‘‘(i) the customer base for the agricultural com-
modity or product has been expanded; and
‘‘(ii) a greater portion of the revenue derived from
the marketing, processing, or physical segregation of
the agricultural commodity or product is available to
the producer of the commodity or product.
‘‘(2) 
INCLUSION.—The 
term 
‘value-added 
agricultural
product’ includes farm- or ranch-based renewable energy.
‘‘(b) GRANT PROGRAM.—
‘‘(1) IN GENERAL.—From amounts made available under
paragraph (4), the Secretary shall award competitive grants—
‘‘(A) to an eligible independent producer (as determined
by the Secretary) of a value-added agricultural product
to assist the producer—
‘‘(i) in developing a business plan for viable mar-
keting opportunities for the value-added agricultural
product; or
‘‘(ii) in developing strategies that are intended to
create marketing opportunities for the producer; and
‘‘(B) to an eligible agricultural producer group, farmer
or rancher cooperative, or majority-controlled producer-
based business venture (as determined by the Secretary)
to assist the entity—
‘‘(i) in developing a business plan for viable mar-
keting opportunities in emerging markets for a value-
added agricultural product; or
‘‘(ii) in developing strategies that are intended to
create marketing opportunities in emerging markets
for the value-added agricultural product.
‘‘(2) AMOUNT OF GRANT.—
‘‘(A) IN GENERAL.—The total amount provided under
this subsection to a grant recipient shall not exceed
$500,000.
‘‘(B) MAJORITY-CONTROLLED PRODUCER-BASED BUSINESS
VENTURES.—The amount of grants provided to majority-
controlled producer-based business ventures under para-
graph (1)(B) for a fiscal year may not exceed 10 percent
of the amount of funds that are used to make grants
for the fiscal year under this subsection.
‘‘(3) GRANTEE STRATEGIES.—A grantee under paragraph (1)
shall use the grant—
‘‘(A) to develop a business plan or perform a feasibility
study to establish a viable marketing opportunity for a
value-added agricultural product; or
‘‘(B) to provide capital to establish alliances or business
ventures that allow the producer of the value-added agricul-
tural product to better compete in domestic or international
markets.
‘‘(4) FUNDING.—Not later than 30 days after the date of
enactment of this paragraph, on October 1, 2002, and on each
October 1 thereafter through October 1, 2006, of the funds
H. R. 2646—293
of the Commodity Credit Corporation, the Secretary shall make
available to carry out this subsection $40,000,000, to remain
available until expended.’’;
(3) in subsection (c)(1) (as redesignated by paragraph (1))—
(A) by striking ‘‘subsection (a)(2)’’ and inserting ‘‘sub-
section (b)(2)’’;
(B) by striking ‘‘$5,000,000’’ and inserting ‘‘5 percent’’;
and
(C) by striking ‘‘subsection (a)’’ and inserting ‘‘sub-
section (b)’’; and
(4) in subsection (d) (as redesignated by paragraph (1)),
by striking ‘‘subsections (a) and (b)’’ and inserting ‘‘subsections
(b) and (c)’’.
(b) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by subsection (a) apply beginning on October
1, 2002.
(2) 
FUNDING.—Funds 
made 
available 
under 
section
231(b)(4)(A)(i) of the Agricultural Risk Protection Act of 2000
(as amended by subsection (a)(2)) shall be made available not
later than 30 days after the date of enactment of this Act.
SEC. 6402. AGRICULTURE INNOVATION CENTER DEMONSTRATION PRO-
GRAM.
(a) PURPOSE.—The purpose of this section is to direct the Sec-
retary of Agriculture to establish a demonstration program under
which agricultural producers are provided—
(1) technical assistance, consisting of engineering services,
applied research, scale production, and similar services, to
enable the agricultural producers to establish businesses to
produce value-added agricultural commodities or products;
(2) assistance in marketing, market development, and busi-
ness planning; and
(3) organizational, outreach, and development assistance
to increase the viability, growth, and sustainability of
businesses that produce value-added agricultural commodities
or products.
(b) DEFINITIONS.—In this section:
(1) PROGRAM.—The term ‘‘Program’’ means the Agriculture
Innovation Center Demonstration Program established under
subsection (c).
(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture.
(c) ESTABLISHMENT OF PROGRAM.—The Secretary shall establish
a demonstration program, to be known as the ‘‘Agriculture Innova-
tion Center Demonstration Program’’ under which the Secretary
shall—
(1) make grants to assist eligible entities in establishing
Agriculture Innovation Centers to enable agricultural producers
to obtain the assistance described in subsection (a); and
(2) provide assistance to eligible entities in establishing
Agriculture Innovation Centers through the research and tech-
nical services of the Department of Agriculture.
(d) ELIGIBILITY REQUIREMENTS.—
(1) IN GENERAL.—An entity shall be eligible for a grant
and assistance described in subsection (c) to establish an Agri-
culture Innovation Center if—
H. R. 2646—294
(A) the entity—
(i) has provided services similar to the services
described in subsection (a); or
(ii) demonstrates the capability of providing such
services;
(B) the application of the entity for the grant and
assistance includes a plan, in accordance with regulations
promulgated by the Secretary, that outlines—
(i) the support for the entity in the agricultural
community;
(ii) the technical and other expertise of the entity;
and
(iii) the goals of the entity for increasing and
improving the ability of local agricultural producers
to develop markets and processes for value-added agri-
cultural commodities or products;
(C) the entity demonstrates that adequate resources
(in cash or in kind) are available, or have been committed
to be made available, to the entity, to increase and improve
the ability of local agricultural producers to develop mar-
kets and processes for value-added agricultural commod-
ities or products; and
(D) the Agriculture Innovation Center of the entity
has a board of directors established in accordance with
paragraph (2).
(2) BOARD
OF
DIRECTORS.—Each Agriculture Innovation
Center of an eligible entity shall have a board of directors
composed of representatives of each of the following groups:
(A) The 2 general agricultural organizations with the
greatest number of members in the State in which the
eligible entity is located.
(B) The department of agriculture, or similar State
department or agency, of the State in which the eligible
entity is located.
(C) Entities representing the 4 highest grossing
commodities produced in the State, determined on the basis
of annual gross cash sales.
(e) GRANTS AND ASSISTANCE.—
(1) IN GENERAL.—Subject to subsection (i), under the Pro-
gram, the Secretary shall make, on a competitive basis, annual
grants to eligible entities.
(2) MAXIMUM AMOUNT OF GRANTS.—A grant under para-
graph (1) shall be in an amount that does not exceed the
lesser of—
(A) $1,000,000; or
(B) twice the dollar amount of the resources (in cash
or in kind) that the eligible entity demonstrates are avail-
able, or have been committed to be made available, to
the eligible entity in accordance with subsection (d)(1)(C).
(3) MAXIMUM NUMBER OF GRANTS.—
(A) FIRST FISCAL YEAR OF PROGRAM.—In the first fiscal
year of the Program, the Secretary shall make grants to
not more than 5 eligible entities.
(B) SECOND FISCAL YEAR OF PROGRAM.—In the second
fiscal year of the Program, the Secretary may make grants
to—
H. R. 2646—295
(i) the eligible entities to which grants were made
under subparagraph (A); and
(ii) not more than 10 additional eligible entities.
(4) STATE LIMITATION.—
(A) IN GENERAL.—Subject to subparagraph (B), in the
first 3 fiscal years of the Program, the Secretary shall
not make a grant under the Program to more than 1
entity in any 1 State.
(B) COLLABORATION.—Nothing in subparagraph (A)
precludes a recipient of a grant under the Program from
collaborating with any other institution with respect to
activities conducted using the grant.
(f) USE
OF FUNDS.—An eligible entity to which a grant is
made under the Program may use the grant only for the following
purposes (but only to the extent that the use is not described
in section 231(d) of the Agricultural Risk Protection Act of 2000
(7 U.S.C. 1621 note; Public Law 106–224)):
(1) Applied research.
(2) Consulting services.
(3) Hiring of employees, at the discretion of the board
of directors of the Agriculture Innovation Center of the eligible
entity.
(4) The making of matching grants, each of which shall
be in an amount not to exceed $5,000, to agricultural producers,
except that the aggregate amount of all such matching grants
made by the eligible entity shall be not more than $50,000.
(5) Legal services.
(6) Any other related cost, as determined by the Secretary.
(g) RESEARCH ON EFFECTS ON THE AGRICULTURAL SECTOR.—
(1) IN
GENERAL.—Of the amount made available under
subsection (i) for each fiscal year, the Secretary shall use
$300,000 to support research at a university concerning the
effects of projects for value-added agricultural commodities or
products on agricultural producers and the commodity markets.
(2) RESEARCH ELEMENTS.—Research under paragraph (1)
shall systematically examine, using linked, long-term, global
projections of the agricultural sector, the potential effects of
projects described in subparagraph (A) on—
(A) demand for agricultural commodities;
(B) market prices;
(C) farm income; and
(D) Federal outlays on commodity programs.
(h) REPORT TO CONGRESS.—
(1) IN GENERAL.—Not later than 3 years after the date
on which the last of the first 10 grants is made under the
Program, the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
on—
(A) the effectiveness of the Program in improving and
expanding the production of value-added agricultural
commodities or products; and
(B) the effects of the Program on the economic viability
of agricultural producers.
(2) REQUIRED ELEMENTS.—The report under paragraph (1)
shall—
H. R. 2646—296
(A) include a description of the best practices and
innovations found at each of the Agriculture Innovation
Centers established under the Program; and
(B) specify the number and type of activities assisted,
and the type of assistance provided, under the Program.
(i) FUNDING.—Of the amount made available under section
231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
1621 note; Public Law 106–224) for each fiscal year, the Secretary
shall use to carry out this section—
(1) not less than $3,000,000 for fiscal year 2002; and
(2) not less than $6,000,000 for each of fiscal years 2003
and 2004.
SEC. 6403. FUND FOR RURAL AMERICA.
(a) IN
GENERAL.—Section 793 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 2204f) is repealed.
(b) CONFORMING
AMENDMENT.—Section 2(b)(8)(B) of the
Competitive, Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)(8)(B)) is amended in the second sentence by striking ‘‘smaller
college or university (as described in section 793(c)(2)(ii) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
2204f(c)(2)(ii))’’ and inserting ‘‘college, university, or research
foundation maintained by a college or university that ranks in
the lowest 1⁄3 of such colleges, universities, and research foundations
on the basis of Federal research funds received’’.
SEC. 6404. RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN
GUARANTEES.
(a) IN
GENERAL.—Section 1011(a) of the Launching Our
Communities’ Access to Local Television Act of 2000 (47 U.S.C.
1109(a)) is amended—
(1) by striking ‘‘For’’ and inserting the following:
‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—For’’; and
(2) by adding at the end the following:
‘‘(2) COMMODITY CREDIT CORPORATION FUNDS.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, subject to subparagraph (B), in addition to
amounts made available under paragraph (1), of the funds
of the Commodity Credit Corporation, the Secretary of
Agriculture shall make available for loan guarantees to
carry out this title $80,000,000 for the period beginning
on the date of enactment of this paragraph and ending
on December 31, 2006, to remain available until expended.
‘‘(B) BROADBAND LOANS AND LOAN GUARANTEES.—
‘‘(i) IN GENERAL.—Amounts made available under
subparagraph (A) that are not obligated as of the
release date described in clause (ii) shall be available
to the Secretary to make loans and loan guarantees
under section 601 of the Rural Electrification Act of
1936.
‘‘(ii) RELEASE DATE.—For purposes of clause (i),
the release date is the date that is the earlier of—
‘‘(I) the date the Secretary determines that
at least 75 percent of the designated market areas
(as defined in section 122(j) of title 17, United
States Code) not in the top 40 designated market
areas described in section 1004(e)(1)(C)(i) of the
H. R. 2646—297
Launching Our Communities’ Access to Local Tele-
vision Act of 2000 (47 U.S.C. 1103(e)(1)(C)(i)) have
access to local television broadcast signals for vir-
tually all households (as determined by the Sec-
retary); or
‘‘(II) December 31, 2006.
‘‘(C) ADVANCED APPROPRIATIONS.—Subsections (c) and
(h)(1)(B) of section 1004 and section 1005(n)(3)(B) shall
not apply to amounts made available under this para-
graph.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) APPROVAL OF LOAN GUARANTEES.—Section 1004 of the
Launching Our Communities’ Access to Local Television Act
of 2000 (47 U.S.C. 1103) is amended—
(A) in subsection (b)(1)—
(i) by striking ‘‘section 5’’ and inserting ‘‘section
1005’’; and
(ii) by striking ‘‘section 11’’ and inserting ‘‘section
1011’’;
(B) in subsection (d)(1), by striking ‘‘section 3’’ and
inserting ‘‘section 1003’’; and
(C) in the first sentence of subsection (h)(2)(D), by
striking ‘‘section 5’’ and inserting ‘‘section 1005’’.
(2) ADMINISTRATION OF LOAN GUARANTEES.—Section 1005
of the Launching Our Communities’ Access to Local Television
Act of 2000 (47 U.S.C. 1104) is amended—
(A) in subsection (a), by striking ‘‘sections 3 and 4’’
and inserting ‘‘sections 1003 and 1004’’;
(B) in subsection (b)—
(i) in paragraph (1)(D), by striking ‘‘section 6(a)(2)’’
and inserting ‘‘section 1006(a)(2)’’; and
(ii) 
in 
paragraph 
(3), 
by 
striking 
‘‘section
4(d)(3)(B)(iii)’’ and inserting ‘‘section 1004(d)(3)(B)(iii)’’;
and
(C) in subsection (e)(3), by striking ‘‘section 4(g)’’ and
inserting ‘‘section 1004(g)’’.
SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL
GRANT PROGRAM.
(a) IN GENERAL.—The Secretary of Agriculture may make
grants to units of general local government and Indian tribes (as
defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)) to pay the cost of training fire-
fighters and emergency medical personnel in firefighting, emergency
medical practices, and responding to hazardous materials and bio-
agents in rural areas.
(b) USE OF FUNDS.—
(1) SCHOLARSHIPS.—
(A) IN
GENERAL.—Not less than 60 percent of the
amounts made available for competitively-awarded grants
under this section shall be used to provide grants to fund
partial scholarships for training of individuals at training
centers approved by the Secretary.
(B) PRIORITY.—In awarding grants under this para-
graph, the Secretary shall give priority to grant applicants
that provide for training within the region (or locality)
of the applicant.
H. R. 2646—298
(2) GRANTS FOR TRAINING CENTERS.—
(A) IN GENERAL.—A grant under subsection (a) may
be used to provide financial assistance to State and regional
centers that provide training for firefighters and emergency
medical personnel for improvements to the training facility,
equipment, curricula, and personnel.
(B) LIMITATION.—Not more than $750,000 shall be pro-
vided to any single training center for any fiscal year
under this paragraph.
(c) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall make available to carry out this section
$10,000,000 for each of fiscal years 2003 through 2007, to remain
available until expended.
SEC. 6406. SENSE OF CONGRESS ON RURAL POLICY COORDINATION.
It is the sense of Congress that the President should—
(1) appoint a Special Assistant to the President for Rural
Policy;
(2) designate within each Federal agency with jurisdiction
over rural programs or activities 1 or more senior officers
or employees to provide rural policy leadership for the agency;
and
(3) create an intergovernmental rural policy working group
comprised of—
(A) the Special Assistant to the President for Rural
Policy, who should serve as Chairperson; and
(B) the senior officers and employees designated under
paragraph (2).
TITLE VII—RESEARCH AND RELATED
MATTERS
Subtitle A—Extensions
SEC. 7101. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7102. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL
SCIENCES EDUCATION.
Section 1417 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ after ‘‘economics,’’; and
(B) by inserting ‘‘, and rural economic, community,
and business development’’ before the period;
(2) in subsection (b)—
(A) in paragraph (1), by inserting ‘‘, or in rural eco-
nomic, community, and business development’’ before the
semicolon;
(B) in paragraph (2), by inserting ‘‘, or in rural eco-
nomic, community, and business development’’ before the
semicolon;
H. R. 2646—299
(C) in paragraph (3), by inserting ‘‘, or teaching pro-
grams emphasizing rural economic, community, and busi-
ness development’’ before the semicolon;
(D) in paragraph (4), by inserting ‘‘, or programs
emphasizing rural economic, community, and business
development,’’ after ‘‘programs’’; and
(E) in paragraph (5), by inserting ‘‘, or professionals
in rural economic, community, and business development’’
before the semicolon;
(3) in subsection (d)—
(A) in paragraph (1), by inserting ‘‘, or in rural eco-
nomic, community, and business development,’’ after
‘‘sciences’’; and
(B) in paragraph (2), by inserting ‘‘, or in the rural
economic, 
community, 
and 
business 
development
workforce,’’ after ‘‘workforce’’; and
(4) in subsection (l), by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7103. POLICY RESEARCH CENTERS.
Section 1419A(d) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7104. HUMAN NUTRITION INTERVENTION AND HEALTH PRO-
MOTION RESEARCH PROGRAM.
Section 1424(d) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7105. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND
AGRICULTURAL RESEARCH.
Section 1424A(d) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7106. NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is
amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7107. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH
PROGRAMS.
Section 1433(a) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7108. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR
REGIONAL PROBLEMS.
Section 1434(a) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES, INCLUDING
TUSKEGEE UNIVERSITY.
Section 1447(b) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended
by striking ‘‘$15,000,000 for each of fiscal years 1996 through 2002’’
H. R. 2646—300
and inserting ‘‘$25,000,000 for each of fiscal years 2002 through
2007’’.
SEC. 7110. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.
(a) AUTHORIZATION.—Section 1448 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222c) is amended by striking ‘‘2002’’ each place it appears in
subsections (a)(1) and (f) and inserting ‘‘2007’’.
(b) REDESIGNATION.—Section 1448 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222c) is amended—
(1) in the section heading, by striking ‘‘CENTENNIAL’’ and
inserting ‘‘VIRTUAL’’; and
(2) by striking ‘‘centennial’’ each place it appears and
inserting ‘‘virtual’’.
SEC. 7111. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICUL-
TURAL SCIENCE AND EDUCATION PROGRAMS.
Section 1459A(c) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7113. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended—
(1) in subsection (a), by striking ‘‘$850,000,000 for each
of the fiscal years 1991 through 2002’’ and inserting ‘‘such
sums as may be necessary for each of fiscal years 1991 through
2007’’; and
(2) in subsection (b), by striking ‘‘$310,000,000 for each
of the fiscal years 1991 through 2002’’ and inserting ‘‘such
sums as may be necessary for each of fiscal years 1991 through
2007’’.
SEC. 7114. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by
striking ‘‘$420,000,000 for fiscal year 1991, $430,000,000 for fiscal
year 1992, $440,000,000 for fiscal year 1993, $450,000,000 for fiscal
year 1994, and $460,000,000 for each of fiscal years 1995 through
2002’’ and inserting ‘‘such sums as may be necessary for each
of fiscal years 1991 through 2007’’.
SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7116. AQUACULTURE RESEARCH FACILITIES.
The first sentence of section 1477 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3324) is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
H. R. 2646—301
SEC. 7117. RANGELAND RESEARCH.
Section 1483(a) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7118. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ‘‘2002’’
and inserting ‘‘2007’’.
SEC. 7119. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672(h) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ‘‘2002’’
and inserting ‘‘2007.
SEC. 7120. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INI-
TIATIVE.
Section 1672A(g) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925a(g)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7121. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ‘‘2002’’
and inserting ‘‘2007’’.
SEC. 7122. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7123. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT
QUALITY RESEARCH.
Section 402(g) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by
striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7124. BIOBASED PRODUCTS.
(a) PILOT
PROJECT.—Section 404(e)(2) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7624(e)(2)) is amended by striking ‘‘2001’’ and inserting ‘‘2007’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 404(h) of such
Act (7 U.S.C. 7624(h)) is amended by striking ‘‘2002’’ and inserting
‘‘2007’’.
SEC. 7125. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION
COMPETITIVE GRANTS PROGRAM.
Section 406 of the Agricultural Research, Extension, and Edu-
cation Reform Act of 1998 (7 U.S.C. 7626) is amended—
(1) by redesignating subsection (e) as subsection (f);
(2) by inserting after subsection (d) the following:
‘‘(e) TERM OF GRANT.—A grant under this section shall have
a term of not more than 5 years.’’; and
(3) in subsection (f) (as so redesignated), by striking ‘‘2002’’
and inserting ‘‘2007’’.
H. R. 2646—302
SEC. 7126. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF
1994.
(f) INSTITUTIONAL CAPACITY BUILDING GRANTS.—Section 535
of the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103–382) is amended—
(1) in subsection (b)(1), by striking ‘‘2002’’ and inserting
‘‘2007’’; and
(2) in subsection (c), by striking ‘‘$1,700,000 for each of
fiscal years 1996 through 2002’’ and inserting ‘‘such sums as
are necessary for each of fiscal years 2002 through 2007’’.
SEC. 7127. 1994 INSTITUTION RESEARCH GRANTS.
Section 536(c) of the Equity in Educational Land-Grant Status
Act of 1994 (7 U.S.C. 301 note) is amended by striking ‘‘2002’’
and inserting ‘‘2007’’.
SEC. 7128. ENDOWMENT FOR 1994 INSTITUTIONS.
The first sentence of section 533(b) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended
by striking ‘‘$4,600,000’’ and all that follows through the period
and inserting ‘‘such sums as are necessary to carry out this section
for each of fiscal years 1996 through 2007.’’.
SEC. 7129. PRECISION AGRICULTURE.
Section 403(i) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by
striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7130. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICA-
TION.
Section 405(h) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by
striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7131. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT,
TRITICALE, 
AND 
BARLEY 
CAUSED 
BY 
FUSARIUM
GRAMINEARUM OR BY TILLETIA INDICA.
Section 408(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended—
(1) by striking ‘‘$5,200,000’’ and inserting ‘‘such sums as
may be necessary’’; and
(2) by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7132. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by
striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7133. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDU-
CATION, AND ECONOMICS ADVISORY BOARD.
Section 1408(h) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
H. R. 2646—303
SEC. 7134. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING
OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM
AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7135. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILI-
TIES.
Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a))
is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7136. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH
GRANTS NATIONAL RESEARCH INITIATIVE.
Section 2(b)(10) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)(10)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
SEC. 
7137. 
FEDERAL 
AGRICULTURAL 
RESEARCH 
FACILITIES
AUTHORIZATION OF APPROPRIATIONS.
Section 1431 of the National Agricultural Research, Extension,
and Teaching Policy Act Amendments of 1985 (Public Law 99–
198; 99 Stat. 1556) is amended by striking ‘‘2002’’ and inserting
‘‘2007’’.
SEC. 7138. CRITICAL AGRICULTURAL MATERIALS RESEARCH.
Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 7139. AQUACULTURE.
Section 10 of the National Aquaculture Act of 1980 (16 U.S.C.
2809) is amended by striking ‘‘2002’’ each place it appears and
inserting ‘‘2007’’.
Subtitle B—Modifications
SEC. 7201. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF
1994.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 534(a)(1)(A)
of the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note) is amended by striking ‘‘$50,000’’ and inserting
‘‘$100,000’’.
(b) CHANGE
OF INDIAN STUDENT COUNT FORMULA.—Section
533(c)(4)(A) of the Equity in Educational Land-Grant Status Act
of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended by
striking ‘‘(as defined in section 390(3) of the Carl D. Perkins Voca-
tional and Applied Technology Education Act, as such section was
in effect on the day preceding the date of enactment of the Carl.
D. Perkins Vocational and Applied Technology Education Amend-
ments of 1998 (Oct. 31, 1998)) for each 1994 Institution for the
fiscal year’’ and inserting ‘‘(as defined in section 2(a) of the Tribally
Controlled College or University Assistance Act of 1978 (25 U.S.C.
1801(a)))’’.
(c) ACCREDITATION REQUIREMENT FOR RESEARCH GRANTS.—Sec-
tion 533(a)(3) of the Equity in Educational Land-Grant Status Act
of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended by
H. R. 2646—362
(1) ANIMAL.—The term ‘‘animal’’ means any member of
the animal kingdom (except a human).
(2) ARTICLE.—The term ‘‘article’’ means any pest or disease
or any material or tangible object that could harbor a pest
or disease.
(3) DISEASE.—The term ‘‘disease’’ has the meaning given
the term by the Secretary.
(4) ENTER.—The term ‘‘enter’’ means to move into the com-
merce of the United States.
(5) EXPORT.—The term ‘‘export’’ means to move from a
place within the territorial limits of the United States to a
place outside the territorial limits of the United States.
(6) FACILITY.—The term ‘‘facility’’ means any structure.
(7) IMPORT.—The term ‘‘import’’ means to move from a
place outside the territorial limits of the United States to
a place within the territorial limits of the United States.
(8) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(9) INTERSTATE
COMMERCE.—The term ‘‘interstate com-
merce’’ means trade, traffic, or other commerce—
(A) between a place in a State and a place in another
State, or between places within the same State but through
any place outside that State; or
(B) within the District of Columbia or any territory
or possession of the United States.
(10) LIVESTOCK.—The term ‘‘livestock’’ means all farm-
raised animals.
(11) MEANS OF CONVEYANCE.—The term ‘‘means of convey-
ance’’ means any personal property used for or intended for
use for the movement of any other personal property.
(12) MOVE.—The term ‘‘move’’ means—
(A) to carry, enter, import, mail, ship, or transport;
(B) to aid, abet, cause, or induce carrying, entering,
importing, mailing, shipping, or transporting;
(C) to offer to carry, enter, import, mail, ship, or trans-
port;
(D) to receive in order to carry, enter, import, mail,
ship, or transport;
(E) to release into the environment; or
(F) to allow any of the activities described in this
paragraph.
(13) PEST.—The term ‘‘pest’’ means any of the following
that can directly or indirectly injure, cause damage to, or cause
disease in livestock:
(A) A protozoan.
(B) A plant.
(C) A bacteria.
(D) A fungus.
(E) A virus or viroid.
(F) An infectious agent or other pathogen.
(G) An arthropod.
(H) A parasite.
(I) A prion.
(J) A vector.
(K) Any organism similar to or allied with any of
the organisms described in this paragraph.
H. R. 2646—363
(14) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture.
(15) STATE.—The term ‘‘State’’ means any of the States,
the District of Columbia, the Commonwealth of Puerto Rico,
Guam, the Commonwealth of the Northern Mariana Islands,
the Virgin Islands of the United States, or any territory or
possession of the United States.
(16) THIS SUBTITLE.—Except when used in this section,
the term ‘‘this subtitle’’ includes any regulation or order issued
by the Secretary under the authority of this subtitle.
(17) UNITED STATES.—The term ‘‘United States’’ means all
of the States.
SEC. 10404. RESTRICTION ON IMPORTATION OR ENTRY.
(a) IN GENERAL.—With notice to the Secretary of the Treasury
and public notice as soon as practicable, the Secretary may prohibit
or restrict—
(1) the importation or entry of any animal, article, or
means of conveyance, or use of any means of conveyance or
facility, if the Secretary determines that the prohibition or
restriction is necessary to prevent the introduction into or
dissemination within the United States of any pest or disease
of livestock;
(2) the further movement of any animal that has strayed
into the United States if the Secretary determines that the
prohibition or restriction is necessary to prevent the introduc-
tion into or dissemination within the United States of any
pest or disease of livestock; and
(3) the use of any means of conveyance in connection with
the importation or entry of livestock if the Secretary determines
that the prohibition or restriction is necessary because the
means of conveyance has not been maintained in a clean and
sanitary condition or does not have accommodations for the
safe and proper movement of livestock.
(b) REGULATIONS.—
(1) RESTRICTIONS ON IMPORT AND ENTRY.—The Secretary
may issue such orders and promulgate such regulations as
are necessary to carry out subsection (a).
(2) POST IMPORTATION QUARANTINE.—The Secretary may
promulgate regulations requiring that any animal imported
or entered be raised or handled under post-importation quar-
antine conditions by or under the supervision of the Secretary
for the purpose of determining whether the animal is or may
be affected by any pest or disease of livestock.
(c) DESTRUCTION OR REMOVAL.—
(1) IN GENERAL.—The Secretary may order the destruction
or removal from the United States of—
(A) any animal, article, or means of conveyance that
has been imported but has not entered the United States
if the Secretary determines that destruction or removal
from the United States is necessary to prevent the introduc-
tion into or dissemination within the United States of
any pest or disease of livestock;
(B) any animal or progeny of any animal, article, or
means of conveyance that has been imported or entered
in violation of this subtitle; or
H. R. 2646—364
(C) any animal that has strayed into the United States
if the Secretary determines that destruction or removal
from the United States is necessary to prevent the introduc-
tion into or dissemination within the United States of
any pest or disease of livestock.
(2) REQUIREMENTS OF OWNERS.—
(A) ORDERS TO DISINFECT.—The Secretary may require
the disinfection of—
(i) a means of conveyance used in connection with
the importation of an animal;
(ii) an individual involved in the importation of
an animal and personal articles of the individual; and
(iii) any article used in the importation of an
animal.
(B) FAILURE TO COMPLY WITH ORDERS.—If an owner
fails to comply with an order of the Secretary under this
section, the Secretary may—
(i) take remedial action, destroy, or remove from
the United States the animal or progeny of any animal,
article, or means of conveyance as authorized under
paragraph (1); and
(ii) recover from the owner the costs of any care,
handling, disposal, or other action incurred by the
Secretary in connection with the remedial action,
destruction, or removal.
SEC. 10405. EXPORTATION.
(a) IN GENERAL.—The Secretary may prohibit or restrict—
(1) the exportation of any animal, article, or means of
conveyance if the Secretary determines that the prohibition
or restriction is necessary to prevent the dissemination from
or within the United States of any pest or disease of livestock;
(2) the exportation of any livestock if the Secretary deter-
mines that the livestock is unfit to be moved;
(3) the use of any means of conveyance or facility in connec-
tion with the exportation of any animal or article if the Sec-
retary determines that the prohibition or restriction is nec-
essary to prevent the dissemination from or within the United
States of any pest or disease of livestock; or
(4) the use of any means of conveyance in connection with
the exportation of livestock if the Secretary determines that
the prohibition or restriction is necessary because the means
of conveyance has not been maintained in a clean and sanitary
condition or does not have accommodations for the safe and
proper movement and humane treatment of livestock.
(b) REQUIREMENTS OF OWNERS.—
(1) ORDERS TO DISINFECT.—The Secretary may require the
disinfection of—
(A) a means of conveyance used in connection with
the exportation of an animal;
(B) an individual involved in the exportation of an
animal and personal articles of the individual; and
(C) any article used in the exportation of an animal.
(2) FAILURE TO COMPLY WITH ORDERS.—If an owner fails
to comply with an order of the Secretary under this section,
the Secretary may—