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ment concerning prospective employment, has a fi-
nancial interest.
‘‘(2) VIOLATIONS.—Action by a member of the
Corporate Board that is contrary to the prohibition
contained in paragraph (1) shall be cause for removal
of the member, but shall not impair or otherwise af-
fect the validity of any otherwise lawful action by the
Corporation in which the member participated.
‘‘(3) EXCEPTIONS.—The prohibitions contained
in paragraph (1) shall not apply if a member of the
Corporate Board advises the Corporate Board of the
nature of the particular matter in which the member
proposes to participate, and if the member makes a
full disclosure of the financial interest, prior to any
participation, and the Corporate Board determines,
by majority vote, that the financial interest is too re-
mote or too inconsequential to affect the integrity of
the member’s services to the Corporation in that mat-
ter. The member involved shall not vote on the deter-
mination.
‘‘(4) FINANCIAL DISCLOSURE.—A Board member
shall be subject to the financial disclosure require-
ments applicable to a special Government employee
(as defined in section 202(a) of title 18, United States
Code).
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‘‘(k) DELEGATION OF AUTHORITY.—
‘‘(1) IN GENERAL.—The Corporate Board may,
by resolution, delegate to the Chairperson, the Execu-
tive Director, or any other officer or employee any
function, power, or duty assigned to the Corporation
under this subtitle, other than a function, power, or
duty expressly vested in the Corporate Board by sub-
sections (c) through (n).
‘‘(2) PROHIBITION
ON
DELEGATION.—Notwith-
standing any other law, the Secretary and any other
officer or employee of the United States shall not
make any delegation to the Corporate Board, the
Chairperson, the Executive Director, or the Corpora-
tion of any power, function, or authority not ex-
pressly authorized by this subtitle, unless the delega-
tion is made pursuant to an authority in law that ex-
pressly makes reference to this section.
‘‘(3) REORGANIZATION
ACT.—Notwithstanding
any other law, the President (through authorities pro-
vided under chapter 9, title 5, United States Code)
may not authorize the transfer to the Corporation of
any power, function, or authority in addition to pow-
ers, functions, and authorities provided by law.
‘‘(l) BYLAWS.—Notwithstanding section 1658(f)(2), the
Corporate Board shall adopt, and may from time to time
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amend, any bylaw that is necessary for the proper manage-
ment and functioning of the Corporation. The Corporate
Board shall not adopt any bylaw that has not been reviewed
and approved by the Secretary.
‘‘(m) ORGANIZATION.—The Corporate Board shall
provide a system of organization to fix responsibility and
promote efficiency.
‘‘(n) PERSONNEL
AND
FACILITIES
OF
CORPORA-
TION.—
‘‘(1) APPOINTMENT AND COMPENSATION OF PER-
SONNEL.—The Corporation may select and appoint
officers, attorneys, employees, and agents, who shall be
vested with such powers and duties as the Corpora-
tion may determine.
‘‘(2) USE OF FACILITIES AND SERVICES OF THE
DEPARTMENT
OF
AGRICULTURE.—Notwithstanding
any other provision of law, to perform the responsibil-
ities of the Corporation under this subtitle, the Cor-
poration may partially or jointly utilize the facilities
of and the services of employees of the Department of
Agriculture, without cost to the Corporation.
‘‘(3) GOVERNMENT EMPLOYMENT LAWS.—An of-
ficer or employee of the Corporation shall be subject
to all laws of the United States relating to govern-
mental employment.’’.
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(b) CONFORMING AMENDMENT.—Section 5315 of title
V, United States Code, is amended by adding at the end
the following:
‘‘Executive Director of the Alternative Agricul-
tural Research and Commercialization Corporation.’’.
SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CON-
TRACTS, AND AGREEMENTS.
Section 1660 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5904) is amended—
(1) by striking ‘‘Center’’ each place it appears
and inserting ‘‘Corporation’’;
(2) in subsection (c), by striking ‘‘Board’’ and
inserting ‘‘Corporate Board’’; and
(3) in subsection (f), by striking ‘‘non-Center’’
and inserting ‘‘non-Corporation’’.
SEC. 725. COMMERCIALIZATION ASSISTANCE.
Section 1661 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5905) is amended—
(1) by striking ‘‘Center’’ each place it appears
and inserting ‘‘Corporation’’;
(2) by striking ‘‘Board’’ each place it appears
and inserting ‘‘Corporate Board’’;
(3) by striking subsection (c);
(4) by redesignating subsections (d), (e), and (f)
as subsections (c), (d), and (e), respectively; and
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(5) in subsection (c) (as so redesignated)—
(A) in the subsection heading of paragraph
(1), by striking ‘‘DIRECTOR’’ and inserting ‘‘EX-
ECUTIVE DIRECTOR’’; and
(B) by striking ‘‘Director’’ each place it ap-
pears and inserting ‘‘Executive Director’’.
SEC. 726. GENERAL RULES REGARDING THE PROVISION OF
ASSISTANCE.
Section 1662 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5906) is amended—
(1) by striking ‘‘Center’’ each place it appears
(except in subsection (b)) and inserting ‘‘Corpora-
tion’’;
(2) by striking ‘‘Board’’ each place it appears
and inserting ‘‘Corporate Board’’; and
(3) in subsection (b)—
(A) in the second sentence, by striking
‘‘Board, a Regional Center, or the Advisory
Council’’ and inserting ‘‘Board or a Regional
Center’’; and
(B) by striking the third sentence.
SEC. 727. REGIONAL CENTERS.
Section 1663 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5907) is amended—
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(1) by striking ‘‘Board’’ each place it appears
and inserting ‘‘Corporate Board’’;
(2) in subsection (e)(8), by striking ‘‘Center’’ and
inserting ‘‘Corporation’’; and
(3) in subsection (f)—
(A) in paragraph (2), by striking ‘‘in con-
sultation with the Advisory Council appointed
under section 1661(c)’’; and
(B) by striking paragraphs (3) and (4) and
inserting the following:
‘‘(3) RECOMMENDATION.—The Regional Direc-
tor, based on the comments of the reviewers, shall
make and submit a recommendation to the Board. A
recommendation submitted by a Regional Director
shall not be binding on the Board.’’.
SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND
COMMERCIALIZATION REVOLVING FUND.
Section 1664 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5908) is amended to read
as follows:
‘‘SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND
COMMERCIALIZATION REVOLVING FUND.
‘‘(a) ESTABLISHMENT.—There is established in the
Treasury of the United States a revolving fund to be known
as the Alternative Agricultural Research and Commer-
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‘‘(6) any other funds acquired by the Corpora-
tion.
‘‘(c) FUNDING ALLOCATIONS.—Funding of projects
and activities under this subtitle shall be subject to the fol-
lowing restrictions:
‘‘(1) Of the total amount of funds made available
for a fiscal year under this subtitle—
‘‘(A) not more than the lesser of 15 percent
or $3,000,000 may be set aside to be used for au-
thorized administrative expenses of the Corpora-
tion in carrying out the functions of the Cor-
poration;
‘‘(B) not more than 1 percent may be set
aside to be used for generic studies and specific
reviews of individual proposals for financial as-
sistance; and
‘‘(C) except as provided in subsection (e),
not less than 84 percent shall be set aside to be
awarded to qualified applicants who file project
applications with, or respond to requests for pro-
posals from, the Corporation under sections 1660
and 1661.
‘‘(2) Any funds remaining uncommitted at the
end of a fiscal year shall be credited to the Fund and
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added to the total program funds available to the Cor-
poration for the next fiscal year.
‘‘(d) AUTHORIZED ADMINISTRATIVE EXPENSES.—For
the purposes of this section, authorized administrative ex-
penses shall include all ordinary and necessary expenses,
including all compensation for personnel and consultants,
expenses for computer usage, or space needs of the Corpora-
tion and similar expenses. Funds authorized for adminis-
trative expenses shall not be available for the acquisition
of real property.
‘‘(e) PROJECT MONITORING.—The Board may estab-
lish, in the bylaws of the Board, a percent of funds provided
under subsection (c), not to exceed 1 percent per project
award, for any commercialization project to be expended
from project awards that shall be used to ensure that project
funds are being utilized in accordance with the project
agreement.
‘‘(f) TERMINATION OF THE FUND.—On expiration of
the authority provided by this subtitle, all assets (after pay-
ment of all outstanding obligations) of the Fund shall revert
to the general fund of the Treasury.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS; CAPITAL-
IZATION.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATION.—
There are authorized to be appropriated to the Fund
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$75,000,000 for each of fiscal years 1996 through
2002.
‘‘(2) CAPITALIZATION.—The Executive Director
may pay as capital of the Corporation, from amounts
made available through annual appropriations,
$75,000,000 for each of fiscal years 1996 through
2002. On the payment of capital by the Executive Di-
rector, the Corporation shall issue an equivalent
amount of capital stock to the Secretary of the Treas-
ury.
‘‘(3) TRANSFER.—All obligations, assets, and re-
lated rights and responsibilities of the Alternative Ag-
ricultural Research and Commercialization Center es-
tablished under section 1658 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5902)
(as in effect on the day before the effective date of the
Agricultural Reform and Improvement Act of 1996)
are transferred to the Corporation.’’.
SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS
RECEIVING CORPORATION ASSISTANCE.
Subtitle G of title XVI of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.)
is amended by adding at the end the following:
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‘‘SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICUL-
TURAL RESEARCH AND COMMERCIALIZATION
PRODUCTS.
‘‘(a) DEFINITION OF EXECUTIVE AGENCY.—In this
section, the term ‘executive agency’ has the meaning pro-
vided the term in section 4(1) of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403(1)).
‘‘(b) PROCUREMENT.—To further the achievement of
the purposes specified in section 1657(b), an executive agen-
cy may, for any procurement involving the acquisition of
property, establish set-asides and preferences for property
that has been commercialized with assistance provided
under this subtitle.
‘‘(c) SET-ASIDES.—Procurements solely for property
may be set-aside exclusively for products developed with
commercialization assistance provided under section 1661.
‘‘(d) PREFERENCES.—Preferences for property devel-
oped with assistance provided under this subtitle in pro-
curements involving the acquisition of property may be—
‘‘(1) a price preference, if the procurement is
solely for property, of not greater than a percentage
to be determined within the sole discretion of the head
of the procuring agency; or
‘‘(2) a technical evaluation preference included
as an award factor or subfactor as determined within
the sole discretion of the head of the procuring agency.
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‘‘(e) NOTICE.—Each competitive solicitation or invita-
tion for bids selected by an executive agency for a set-aside
or preference under this section shall contain a provision
notifying offerors where a list of products eligible for the
set aside or preference may be obtained.
‘‘(f) ELIGIBILITY.—Offerors shall receive the set aside
or preference required under this section if, in the case of
products developed with financial assistance under—
‘‘(1) section 1660, less than 10 years have
elapsed since the expiration of the grant, cooperative
agreement, or contract;
‘‘(2) paragraph (1) or (2) of section 1661(a), less
than 5 years have elapsed since the date the loan was
made or insured;
‘‘(3) section 1661(a)(3), less than 5 years have
elapsed since the date of sale of any remaining gov-
ernment equity interest in the company; or
‘‘(4) section 1661(a)(4), less than 5 years have
elapsed since the date of the final payment on the re-
payable grant.’’.
SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND RE-
PORT.
(a) BUSINESS PLAN.—Not later than 180 days after
the date of enactment of this Act, the Alternative Agricul-
tural Research and Commercialization Corporation estab-
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lished under section 1658 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5902) shall—
(1) develop a 5-year business plan pursuant to
section 1659(c)(1)(E) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (as amended by sec-
tion 723); and
(2) submit the plan to the Secretary of Agri-
culture, the Committee on Agriculture of the House of
Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
(b) FEASIBILITY STUDY AND REPORT.—
(1) STUDY.—The Secretary of Agriculture shall
conduct a study of and prepare a report on the con-
tinued feasibility of the Alternative Agricultural Re-
search and Commercialization Corporation. In con-
ducting the study, the Secretary shall examine options
for privatizing the Corporation and converting the
Corporation to a Government sponsored enterprise.
(2) REPORT.—Not later than December 31, 2001,
the Secretary shall transmit the report to the Com-
mittee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
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Subtitle 
B—Amendments 
to 
the
Consolidated Farm and Rural
Development Act
CHAPTER 1—GENERAL PROVISIONS
SEC. 741. WATER AND WASTE FACILITY LOANS AND
GRANTS.
(a) IN GENERAL.—Section 306(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)) is
amended—
(1) in the first sentence of paragraph (2), by
striking 
‘‘$500,000,000’’ 
and 
inserting
‘‘$590,000,000’’;
(2) by striking paragraph (7) and inserting the
following:
‘‘(7) 
DEFINITION
OF
RURAL
AND
RURAL
AREAS.—For the purpose of water and waste disposal
grants and direct and guaranteed loans provided
under paragraphs (1) and (2), the terms ‘rural’ and
‘rural area’ shall mean a city, town, or unincor-
porated area that has a population of no more than
10,000 inhabitants.’’;
(3) by striking paragraphs (9), (10), and (11)
and inserting the following:
‘‘(9) CONFORMITY WITH STATE DRINKING WATER
STANDARDS.—No Federal funds shall be made avail-
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able under this section unless the Secretary deter-
mines that the water system seeking funding will
make significant progress toward meeting the stand-
ards established under title XIV of the Public Health
Service Act (commonly known as the ‘Safe Drinking
Water Act’) (42 U.S.C. 300f et seq.).
‘‘(10) CONFORMITY WITH FEDERAL AND STATE
WATER
POLLUTION
CONTROL
STANDARDS.—In the
case of a water treatment discharge or waste disposal
system seeking funding, no Federal funds shall be
made available under this section unless the Secretary
determines that the effluent from the system conforms
with applicable Federal and State water pollution
control standards.
‘‘(11) 
RURAL
BUSINESS
OPPORTUNITY
GRANTS.—
‘‘(A) IN
GENERAL.—The Secretary may
make grants, not to exceed $1,500,000 annually,
to public bodies, private nonprofit community
development corporations or entities, or such
other agencies as the Secretary may select to en-
able the recipients—
‘‘(i) to identify and analyze business
opportunities, including opportunities in
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export markets, that will use local rural eco-
nomic and human resources;
‘‘(ii) to identify, train, and provide
technical assistance to existing or prospec-
tive rural entrepreneurs and managers;
‘‘(iii) to establish business support cen-
ters and otherwise assist in the creation of
new rural businesses, the development of
methods of financing local businesses, and
the enhancement of the capacity of local in-
dividuals and entities to engage in sound
economic activities;
‘‘(iv) to conduct regional, community,
and local economic development planning
and coordination, and leadership develop-
ment; and
‘‘(v) to establish centers for training,
technology, and trade that will provide
training to rural businesses in the utiliza-
tion of interactive communications tech-
nologies to develop international trade op-
portunities and markets.
‘‘(B) CRITERIA.—In awarding the grants,
the Secretary shall consider, among other cri-
teria to be established by the Secretary—
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‘‘(i) the extent to which the applicant
provides development services in the rural
service area of the applicant; and
‘‘(ii) the capability of the applicant to
carry out the purposes of this section.
‘‘(C) COORDINATION.—The Secretary shall
ensure, to the maximum extent practicable, that
assistance provided under this paragraph is co-
ordinated with and delivered in cooperation with
similar services or assistance provided to rural
residents by the Cooperative State Research,
Education, and Extension Service or other Fed-
eral agencies.
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated
to carry out this paragraph $7,500,000 for each
of fiscal years 1996 through 2002.’’;
(4) by striking paragraphs (14) and (15); and
(5) in paragraph (16)—
(A) by striking ‘‘(16)(A) The’’ and inserting
the following:
‘‘(16) RURAL WATER AND WASTEWATER TECH-
NICAL ASSISTANCE AND TRAINING PROGRAMS.—
‘‘(A) IN GENERAL.—The’’;
(B) in subparagraph (A)—
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(i) by striking ‘‘(i) identify’’ and in-
serting the following:
‘‘(i) identify’’;
(ii) by striking ‘‘(ii) prepare’’ and in-
serting the following:
‘‘(ii) prepare’’; and
(iii) by striking ‘‘(iii) improve’’ and
inserting the following:
‘‘(iii) improve’’;
(C) in subparagraph (B), by striking ‘‘(B)
In’’ and inserting the following:
‘‘(B) SELECTION PRIORITY.—In’’; and
(D) in subparagraph (C)—
(i) by striking ‘‘(C) Not’’ and inserting
the following:
‘‘(C) FUNDING.—Not’’; and
(ii) by striking ‘‘2 per centum of any
funds provided in Appropriations Acts’’
and inserting ‘‘3 percent of any funds ap-
propriated’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 307(a)(6)(B) of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1927(a)(6)(B)) (as amended by section 651(a)(2)) is
further amended—
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(A) by striking clause (ii); and
(B) by redesignating clauses (iii) and (iv)
as clauses (ii) and (iii), respectively.
(2) The second sentence of section 309A(a) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 
1929a(a)) 
is 
amended 
by 
striking 
‘‘,
306(a)(14),’’.
SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE
GRANT PROGRAM FOR SMALL COMMUNITIES.
Section 306A of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1926a) is amended—
(1) in subsection (e)—
(A) by striking paragraph (1) and inserting
the following:
‘‘(1) MAXIMUM
INCOME.—No grant provided
under this section may be used to assist any rural
area or community that has a median household in-
come in excess of the State nonmetropolitan median
household income according to the most recent decen-
nial census of the United States.’’; and
(B) in paragraph (2), by striking ‘‘5,000’’
and inserting ‘‘3,000’’; and
(2) by striking subsection (i) and inserting the
following:
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‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section
$35,000,000 for each of fiscal years 1996 through 2002.’’.
SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE
GRANT PROGRAM FOR SMALLEST COMMU-
NITIES.
Section 306B of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1926b) is repealed.
SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.
Section 309(f) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1929(f)) is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (6)
as paragraphs (1) through (5), respectively.
SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.
Section 309A(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1929a(g)) is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (8)
as paragraphs (1) through (7), respectively.
SEC. 746. INSURED WATERSHED AND RESOURCE CON-
SERVATION AND DEVELOPMENT LOANS.
Section 310A of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1931) is repealed.
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SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.
(a) IN GENERAL.—Section 310B of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932) is
amended—
(1) in subsection (b), by striking ‘‘(b)(1)’’ and all
that follows through ‘‘(2) The’’ and inserting the fol-
lowing:
‘‘(b) SOLID WASTE MANAGEMENT GRANTS.—The’’;
(2) in subsection (c)—
(A) by striking ‘‘(c)(1) The’’ and inserting
the following:
‘‘(c) RURAL BUSINESS ENTERPRISE GRANTS.—
‘‘(1) IN GENERAL.—The’’;
(B) in paragraph (1), by inserting ‘‘(in-
cluding nonprofit entities)’’ after ‘‘private busi-
ness enterprises’’; and
(C) in paragraph (2)—
(i) by striking ‘‘(2) The’’ and inserting
the following:
‘‘(2) PASSENGER TRANSPORTATION SERVICES OR
FACILITIES.—The’’; and
(ii) by striking ‘‘make grants’’ and in-
serting ‘‘award grants on a competitive
basis’’; and
(3) by striking subsections (e), (g), (h), and (i);
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(4) by redesignating subsections (f) and (j) as
subsections (e) and (f), respectively;
(5) by striking subsection (e) (as so redesignated)
and inserting the following:
‘‘(e) RURAL COOPERATIVE DEVELOPMENT GRANTS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) NONPROFIT
INSTITUTION.—The term
‘nonprofit institution’ means any organization
or institution, including an accredited institu-
tion of higher education, no part of the net earn-
ings of which inures, or may lawfully inure, to
the benefit of any private shareholder or individ-
ual.
‘‘(B) UNITED STATES.—The term ‘United
States’ means the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, and
the other territories and possessions of the United
States.
‘‘(2) GRANTS.—The Secretary shall make grants
under this subsection to nonprofit institutions for the
purpose of enabling the institutions to establish and
operate centers for rural cooperative development.
‘‘(3) GOALS.—The goals of a center funded under
this subsection shall be to facilitate the creation of
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jobs in rural areas through the development of new
rural cooperatives, value added processing, and rural
businesses.
‘‘(4) APPLICATION.—Any nonprofit institution
seeking a grant under paragraph (2) shall submit to
the Secretary an application containing a plan for
the establishment and operation by the institution of
a center or centers for cooperative development. The
Secretary may approve the application if the plan
contains the following:
‘‘(A) A provision that substantiates that the
center will effectively serve rural areas in the
United States.
‘‘(B) A provision that the primary objective
of the center will be to improve the economic con-
dition of rural areas through cooperative devel-
opment.
‘‘(C) A description of the activities that the
center will carry out to accomplish the objective.
The activities may include the following:
‘‘(i) Programs for applied research and
feasibility studies that may be useful to in-
dividuals, cooperatives, small businesses,
and other similar entities in rural areas
served by the center.
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‘‘(ii) Programs for the collection, inter-
pretation, and dissemination of information
that may be useful to individuals, coopera-
tives, small businesses, and other similar
entities in rural areas served by the center.
‘‘(iii) Programs providing training
and instruction for individuals, coopera-
tives, small businesses, and other similar
entities in rural areas served by the center.
‘‘(iv) Programs providing loans and
grants to individuals, cooperatives, small
businesses, and other similar entities in
rural areas served by the center.
‘‘(v) Programs providing technical as-
sistance, research services, and advisory
services to individuals, cooperatives, small
businesses, and other similar entities in
rural areas served by the center.
‘‘(vi) Programs providing for the co-
ordination of services and sharing of infor-
mation among the center.
‘‘(D) A description of the contributions that
the activities are likely to make to the improve-
ment of the economic conditions of the rural
areas for which the center will provide services.
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‘‘(E) Provisions that the center, in carrying
out the activities, will seek, where appropriate,
the advice, participation, expertise, and assist-
ance of representatives of business, industry, edu-
cational institutions, the Federal Government,
and State and local governments.
‘‘(F) Provisions that the center will take all
practicable steps to develop continuing sources of
financial support for the center, particularly
from sources in the private sector.
‘‘(G) Provisions for—
‘‘(i) monitoring and evaluating the ac-
tivities by the nonprofit institution operat-
ing the center; and
‘‘(ii) accounting for money received by
the institution under this section.
‘‘(5) AWARDING GRANTS.—Grants made under
paragraph (2) shall be made on a competitive basis.
In making grants under paragraph (2), the Secretary
shall give preference to grant applications providing
for the establishment of centers for rural cooperative
development that—
‘‘(A) demonstrate a proven track record in
administering a nationally coordinated, region-
ally or State-wide operated project;
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‘‘(B) demonstrate previous expertise in pro-
viding technical assistance in rural areas;
‘‘(C) demonstrate the ability to assist in the
retention of existing businesses, facilitate the es-
tablishment of new cooperatives and new cooper-
ative approaches, and generate new employment
opportunities that will improve the economic
conditions of rural areas;
‘‘(D) demonstrate the ability to create hori-
zontal linkages among businesses within and
among various sectors in rural America and ver-
tical linkages to domestic and international
markets;
‘‘(E) commit to providing technical assist-
ance and other services to underserved and eco-
nomically distressed areas in rural America; and
‘‘(F) commit to providing greater than a 25
percent matching contribution with private
funds and in-kind contributions.
‘‘(6) TWO-YEAR
GRANTS.—The Secretary shall
evaluate programs receiving assistance under this
subsection and, if the Secretary determines it to be in
the best interest of the Federal Government, the Sec-
retary may approve grants under this subsection for
up to 2 years.
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‘‘(7) TECHNICAL ASSISTANCE TO PREVENT EX-
CESSIVE UNEMPLOYMENT OR UNDEREMPLOYMENT.—
In carrying out this subsection, the Secretary may
provide technical assistance to alleviate or prevent
conditions 
of 
excessive 
unemployment,
underemployment, outmigration, or low employment
growth in economically distressed rural areas that the
Secretary determines have a substantial need for the
assistance. The assistance may include planning and
feasibility studies, management and operational as-
sistance, and studies evaluating the need for develop-
ment potential of projects that increase employment
and improve economic growth in the areas.
‘‘(8) 
GRANTS
TO
DEFRAY
ADMINISTRATIVE
COSTS.—The Secretary may make grants to defray
not to exceed 75 percent of the costs incurred by orga-
nizations and public bodies to carry out projects for
which grants or loans are made under this subsection.
For purposes of determining the non-Federal share of
the costs, the Secretary shall consider contributions in
cash and in kind, fairly evaluated, including prem-
ises, equipment, and services.
‘‘(9) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
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this subsection $50,000,000 for each of fiscal years
1996 through 2002.’’; and
(6) by adding at the end the following:
‘‘(g) LOAN GUARANTEES FOR THE PURCHASE OF CO-
OPERATIVE STOCK.—
‘‘(1) DEFINITION
OF
FARMER.—In this sub-
section, the term ‘farmer’ means any farmer that
meets the family farmer definition, as determined by
the Secretary.
‘‘(2) LOAN
GUARANTEES.—The Secretary may
guarantee loans under this section to individual
farmers for the purpose of purchasing capital stock of
a farmer cooperative established for the purpose of
processing an agricultural commodity.
‘‘(3) ELIGIBILITY.—To be eligible for a loan
guarantee under this subsection, a farmer must
produce the agricultural commodity that will be proc-
essed by the cooperative.
‘‘(4) COLLATERAL.—To be eligible for a loan
guarantee under this subsection for the establishment
of a cooperative, the borrower of the loan must pledge
collateral to secure at least 25 percent of the amount
of the loan.’’.
(b) CONFORMING AMENDMENTS.—
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(1) Clause (iii) of section 307(a)(6)(B) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 1927(a)(6)(B)) (as redesignated by section
741(b)(1)(B)) is amended by striking ‘‘subsections (d)
and (e) of section 310B’’ and inserting ‘‘section
310B(d)’’.
(2) Section 232(c)(2) of the Department of Agri-
culture Reorganization Act of 1994 (7 U.S.C.
6942(c)(2)) is amended—
(A) by striking ‘‘310B(b)(2)’’ and inserting
‘‘310B(b)’’; and
(B) by striking ‘‘1932(b)(2)’’ and inserting
‘‘1932(b)’’.
(3) Section 233(b) of the Department of Agri-
culture Reorganization Act of 1994 (7 U.S.C.
6943(b)) is amended—
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as
paragraph (2).
SEC. 748. ADMINISTRATION.
Section 331(b)(4) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1981(b)(4)) is amended—
(1) by inserting after ‘‘claims’’ the following:
‘‘(including debts and claims arising from loan guar-
antees)’’;
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(2) by striking ‘‘Farmers Home Administration
or’’ and inserting ‘‘Consolidated Farm Service Agen-
cy, Rural Utilities Service, Rural Housing and Com-
munity Development Service, Rural Business and Co-
operative Development Service, or a successor agency,
or’’; and
(3) by inserting after ‘‘activities under the Hous-
ing Act of 1949.’’ the following: ‘‘In the case of a secu-
rity instrument entered into under the Rural Elec-
trification Act of 1936 (7 U.S.C. 901 et seq.), the Sec-
retary shall notify the Attorney General of the intent
of the Secretary to exercise the authority of the Sec-
retary under this paragraph.’’.
SEC. 749. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 338 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1988) is
amended—
(1) by striking subsections (b), (c), (d), and (e);
and
(2) by redesignating subsection (f) as subsection
(b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 309(g)(1) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 1929(g)(1)) is amended by inserting after
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(2) Section 2375 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 6613) is
amended—
(A) in subsection (e), by striking ‘‘, as de-
fined in section 365(b)(2) of the Consolidated
Farm and Rural Development Act,’’; and
(B) by adding at the end the following:
‘‘(g) DEFINITION OF DESIGNATED RURAL DEVELOP-
MENT PROGRAM.—In this section, the term ‘designated
rural development program’ means a program carried out
under section 304(b), 306(a), or 310B(e) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1924(b),
1926(a), and 1932(e)), or under section 1323 of the Food
Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932
note), for which funds are available at any time during the
fiscal year under the section.’’.
(3) Paragraph (2) of section 233(b) of the De-
partment of Agriculture Reorganization Act of 1994
(7 U.S.C. 6943(b)) (as redesignated by section
747(b)(3)(B)) is amended by striking ‘‘sections 365
through 369 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2008-2008d)’’ and inserting
‘‘section 369 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2008d)’’.