715 
† HR 2642 EAS 
‘‘(B) that the Secretary determines have a 
substantial need for assistance. 
‘‘(b) REQUIREMENTS.—The Secretary shall carry out 
those rural economic area partnership zones administra-
tively in effect on the date of enactment of the Agriculture 
Reform, Food, and Jobs Act of 2013 in accordance with 
the terms and conditions contained in the memoranda of 
agreement entered into by the Secretary for the rural eco-
nomic area partnership zones. 
‘‘SEC. 3706. STREAMLINING APPLICATIONS AND IMPROVING 
ACCESSIBILITY 
OF 
RURAL 
DEVELOPMENT 
PROGRAMS. 
‘‘The Secretary shall expedite the process of creating 
user-friendly and accessible application forms and proce-
dures prioritizing programs and applications at the indi-
vidual applicant level with an emphasis on utilizing cur-
rent technology including online applications and submis-
sion processes. 
‘‘SEC. 3707. STATE RURAL DEVELOPMENT PARTNERSHIP. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) AGENCY WITH RURAL RESPONSIBILITIES.— 
The term ‘agency with rural responsibilities’ means 
any executive agency (as defined in section 105 of 
title 5, United States Code) that implements a Fed-
716 
† HR 2642 EAS 
eral law, or administers a program, targeted at or 
having a significant impact on rural areas. 
‘‘(2) PARTNERSHIP.—The term ‘Partnership’ 
means the State Rural Development Partnership con-
tinued by subsection (b). 
‘‘(3) STATE RURAL DEVELOPMENT COUNCIL.— 
The term ‘State rural development council’ means a 
State rural development council that meets the re-
quirements of subsection (c). 
‘‘(b) PARTNERSHIP.— 
‘‘(1) IN GENERAL.—The Secretary shall support 
the State Rural Development Partnership comprised 
of State rural development councils. 
‘‘(2) PURPOSES.—The purposes of the Partner-
ship are to empower and build the capacity of States, 
regions, and rural communities to design flexible and 
innovative responses to their rural development needs 
in a manner that maximizes collaborative public- and 
private-sector cooperation and minimizes regulatory 
redundancy. 
‘‘(3) COORDINATING PANEL.—A panel consisting 
of representatives of State rural development councils 
shall be established— 
‘‘(A) to lead and coordinate the strategic op-
eration and policies of the Partnership; and
717 
† HR 2642 EAS 
‘‘(B) to facilitate effective communication 
among the members of the Partnership, includ-
ing the sharing of best practices. 
‘‘(4) ROLE OF FEDERAL GOVERNMENT.—The role 
of the Federal Government in the Partnership may be 
that of a partner and facilitator, with Federal agen-
cies authorized— 
‘‘(A) to cooperate with States to implement 
the Partnership; 
‘‘(B) to provide States with the technical 
and administrative support necessary to plan 
and implement tailored rural development strat-
egies to meet local needs; 
‘‘(C) to ensure that the head of each agency 
with rural responsibilities directs appropriate 
field staff to participate fully with the State 
rural development council within the jurisdiction 
of the field staff; and 
‘‘(D) to enter into cooperative agreements 
with, and to provide grants and other assistance 
to, State rural development councils. 
‘‘(c) STATE RURAL DEVELOPMENT COUNCILS.— 
‘‘(1) ESTABLISHMENT.—Notwithstanding chap-
ter 63 of title 31, United States Code, each State may 
elect to participate in the Partnership by entering
718 
† HR 2642 EAS 
into an agreement with the Secretary to recognize a 
State rural development council. 
‘‘(2) COMPOSITION.—A State rural development 
council shall— 
‘‘(A) be composed of representatives of Fed-
eral, State, local, and tribal governments, non-
profit organizations, regional organizations, the 
private sector, and other entities committed to 
rural advancement; and 
‘‘(B) have a nonpartisan and nondiscrim-
inatory membership that— 
‘‘(i) is broad and representative of the 
economic, social, and political diversity of 
the State; and 
‘‘(ii) shall be responsible for the gov-
ernance and operations of the State rural 
development council. 
‘‘(3) DUTIES.—A State rural development coun-
cil shall— 
‘‘(A) facilitate collaboration among Federal, 
State, local, and tribal governments and the pri-
vate and nonprofit sectors in the planning and 
implementation of programs and policies that 
have an impact on rural areas of the State;
719 
† HR 2642 EAS 
‘‘(B) monitor, report, and comment on poli-
cies and programs that address, or fail to ad-
dress, the needs of the rural areas of the State; 
‘‘(C) as part of the Partnership, facilitate 
the development of strategies to reduce or elimi-
nate conflicting or duplicative administrative or 
regulatory requirements of Federal, State, local, 
and tribal governments; and 
‘‘(D)(i) provide to the Secretary an annual 
plan with goals and performance measures; and 
‘‘(ii) submit to the Secretary an annual re-
port on the progress of the State rural develop-
ment council in meeting the goals and measures. 
‘‘(4) FEDERAL PARTICIPATION IN STATE RURAL 
DEVELOPMENT COUNCILS.— 
‘‘(A) IN
GENERAL.—A State Director for 
Rural Development of the Department of Agri-
culture, other employees of the Department, and 
employees of other Federal agencies with rural 
responsibilities shall fully participate as voting 
members in the governance and operations of 
State rural development councils (including ac-
tivities related to grants, contracts, and other 
agreements in accordance with this section) on
720 
† HR 2642 EAS 
an equal basis with other members of the State 
rural development councils. 
‘‘(B) CONFLICTS.—Participation by a Fed-
eral employee in a State rural development 
council in accordance with this paragraph shall 
not constitute a violation of section 205 or 208 
of title 18, United States Code. 
‘‘(d) ADMINISTRATIVE SUPPORT OF THE PARTNER-
SHIP.— 
‘‘(1) DETAIL OF EMPLOYEES.— 
‘‘(A) IN GENERAL.—In order to provide ex-
perience in intergovernmental collaboration, the 
head of an agency with rural responsibilities 
that elects to participate in the Partnership 
may, and is encouraged to, detail to the Sec-
retary for the support of the Partnership 1 or 
more employees of the agency with rural respon-
sibilities without reimbursement for a period of 
up to 1 year. 
‘‘(B) CIVIL
SERVICE
STATUS.—The detail 
shall be without interruption or loss of civil serv-
ice status or privilege. 
‘‘(2) ADDITIONAL SUPPORT.—The Secretary may 
provide for any additional support staff to the Part-
721 
† HR 2642 EAS 
nership as the Secretary determines to be necessary to 
carry out the duties of the Partnership. 
‘‘(3) INTERMEDIARIES.—The Secretary may 
enter into a contract with a qualified intermediary 
under which the intermediary shall be responsible for 
providing administrative and technical assistance to 
a State rural development council, including admin-
istering the financial assistance available to the State 
rural development council. 
‘‘(e) MATCHING REQUIREMENTS FOR STATE RURAL 
DEVELOPMENT COUNCILS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State rural development council shall 
provide matching funds, or in-kind goods or services, 
to support the activities of the State rural develop-
ment council in an amount that is not less than 33 
percent of the amount of Federal funds received from 
a Federal agency under subsection (f)(2). 
‘‘(2) EXCEPTIONS TO MATCHING REQUIREMENT 
FOR CERTAIN FEDERAL FUNDS.—Paragraph (1) shall 
not apply to funds, grants, funds provided under con-
tracts or cooperative agreements, gifts, contributions, 
or technical assistance received by a State rural devel-
opment council from a Federal agency that are 
used—
722 
† HR 2642 EAS 
‘‘(A) to support 1 or more specific program 
or project activities; or 
‘‘(B) to reimburse the State rural develop-
ment council for services provided to the Federal 
agency providing the funds, grants, funds pro-
vided under contracts or cooperative agreements, 
gifts, contributions, or technical assistance. 
‘‘(3) DEPARTMENT’S
SHARE.—The Secretary 
shall develop a plan to decrease, over time, the share 
of the Department of Agriculture of the cost of the 
core operations of State rural development councils. 
‘‘(f) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $5,000,000 for each of fiscal years 2014 
through 2018. 
‘‘(2) FEDERAL AGENCIES.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law limiting the ability of an 
agency, along with other agencies, to provide 
funds to a State rural development council in 
order to carry out the purposes of this section, a 
Federal agency may make grants, gifts, or con-
tributions to, provide technical assistance to, or
723 
† HR 2642 EAS 
enter into contracts or cooperative agreements 
with, a State rural development council. 
‘‘(B) ASSISTANCE.—Federal agencies are 
encouraged to use funds made available for pro-
grams that have an impact on rural areas to 
provide assistance to, and enter into contracts 
with, a State rural development council, as de-
scribed in subparagraph (A). 
‘‘(3) CONTRIBUTIONS.—A State rural develop-
ment council may accept private contributions. 
‘‘(g) TERMINATION.—The authority provided under 
this section shall terminate on September 30, 2018. 
‘‘CHAPTER 4—DELTA REGIONAL 
AUTHORITY 
‘‘SEC. 3801. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) AUTHORITY.—The term ‘Authority’ means 
the Delta Regional Authority established by section 
3802. 
‘‘(2) FEDERAL
GRANT
PROGRAM.—The term 
‘Federal grant program’ means a Federal grant pro-
gram to provide assistance in— 
‘‘(A) acquiring or developing land; 
‘‘(B) constructing or equipping a highway, 
road, bridge, or facility; or
724 
† HR 2642 EAS 
‘‘(C) carrying out other economic develop-
ment activities. 
‘‘(3) REGION.—The term ‘region’ means the 
Lower Mississippi (as defined in section 4 of the 
Delta Development Act (42 U.S.C. 3121 note; Public 
Law 100–460)). 
‘‘SEC. 3802. DELTA REGIONAL AUTHORITY. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN
GENERAL.—There is established the 
Delta Regional Authority. 
‘‘(2) COMPOSITION.—The Authority shall be com-
posed of— 
‘‘(A) a Federal member, to be appointed by 
the President, with the advice and consent of the 
Senate; and 
‘‘(B) the Governor (or a designee of the Gov-
ernor) of each State in the region that elects to 
participate in the Authority. 
‘‘(3) COCHAIRPERSONS.—The Authority shall be 
headed by— 
‘‘(A) the Federal member, who shall serve 
as— 
‘‘(i) the Federal cochairperson; and 
‘‘(ii) a liaison between the Federal 
Government and the Authority; and
725 
† HR 2642 EAS 
‘‘(B) a State cochairperson, who shall be— 
‘‘(i) a Governor of a participating 
State in the region; and 
‘‘(ii) elected by the State members for 
a term of not less than 1 year. 
‘‘(4) ALABAMA.—Notwithstanding any other pro-
vision of law, the State of Alabama shall be a full 
member of the Authority and shall be entitled to all 
rights and privileges that the membership affords to 
all other participating States in the Authority. 
‘‘(b) ALTERNATE MEMBERS.— 
‘‘(1) STATE ALTERNATES.—The State member of 
a participating State may have a single alternate, 
who shall be— 
‘‘(A) a resident of that State; and 
‘‘(B) appointed by the Governor of the 
State. 
‘‘(2) ALTERNATE
FEDERAL
COCHAIRPERSON.— 
The President shall appoint an alternate Federal co-
chairperson. 
‘‘(3) QUORUM.—A State alternate shall not be 
counted toward the establishment of a quorum of the 
Authority in any instance in which a quorum of the 
State members is required to be present.
726 
† HR 2642 EAS 
‘‘(4) DELEGATION OF POWER.—No power or re-
sponsibility of the Authority specified in paragraphs 
(2) and (3) of subsection (c), and no voting right of 
any Authority member, shall be delegated to any per-
son— 
‘‘(A) who is not an Authority member; or 
‘‘(B) who is not entitled to vote in Author-
ity meetings. 
‘‘(c) VOTING.— 
‘‘(1) IN GENERAL.—A decision by the Authority 
shall require a majority vote of the Authority (not in-
cluding any member representing a State that is de-
linquent under subsection (g)(2)(C)) to be effective. 
‘‘(2) QUORUM.—A quorum of State members 
shall be required to be present for the Authority to 
make any policy decision, including— 
‘‘(A) a modification or revision of an Au-
thority policy decision; 
‘‘(B) approval of a State or regional devel-
opment plan; and 
‘‘(C) any allocation of funds among the 
States. 
‘‘(3) PROJECT AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be— 
‘‘(A) a responsibility of the Authority; and
727 
† HR 2642 EAS 
‘‘(B) conducted in accordance with section 
3809. 
‘‘(4) VOTING BY ALTERNATE MEMBERS.—An al-
ternate member shall vote in the case of the absence, 
death, disability, removal, or resignation of the Fed-
eral or State representative for which the alternate 
member is an alternate. 
‘‘(d) DUTIES.—The Authority shall— 
‘‘(1) develop, on a continuing basis, comprehen-
sive and coordinated plans and programs to establish 
priorities and approve grants for the economic devel-
opment of the region, giving due consideration to 
other Federal, State, and local planning and develop-
ment activities in the region; 
‘‘(2) review, and where appropriate amend, pri-
orities in a development plan for the region (includ-
ing 5-year regional outcome targets); 
‘‘(3) assess the needs and assets of the region 
based on available research, demonstrations, inves-
tigations, assessments, and evaluations of the region 
prepared by Federal, State, and local agencies, uni-
versities, local development districts, and other non-
profit groups;
728 
† HR 2642 EAS 
‘‘(4) formulate and recommend to the Governors 
and legislatures of States that participate in the Au-
thority forms of interstate cooperation; 
‘‘(5) work with State and local agencies in devel-
oping appropriate model legislation; 
‘‘(6)(A) enhance the capacity of, and provide 
support for, local development districts in the region; 
or 
‘‘(B) if no local development district exists in an 
area in a participating State in the region, foster the 
creation of a local development district; 
‘‘(7) encourage private investment in industrial, 
commercial, and other economic development projects 
in the region; and 
‘‘(8) cooperate with and assist State governments 
with economic development programs of participating 
States. 
‘‘(e) ADMINISTRATION.—In carrying out subsection 
(d), the Authority may— 
‘‘(1) hold such hearings, sit and act at such 
times and places, take such testimony, receive such 
evidence, and print or otherwise reproduce and dis-
tribute a description of the proceedings and reports 
on actions by the Authority as the Authority con-
siders appropriate;
729 
† HR 2642 EAS 
‘‘(2) authorize, through the Federal or State co-
chairperson or any other member of the Authority 
designated by the Authority, the administration of 
oaths if the Authority determines that testimony 
should be taken or evidence received under oath; 
‘‘(3) request from any Federal, State, or local de-
partment or agency such information as may be 
available to or procurable by the department or agen-
cy that may be of use to the Authority in carrying 
out duties of the Authority; 
‘‘(4) adopt, amend, and repeal bylaws, rules, and 
regulations governing the conduct of Authority busi-
ness and the performance of Authority duties; 
‘‘(5) request the head of any Federal department 
or agency to detail to the Authority such personnel as 
the Authority requires to carry out duties of the Au-
thority, each such detail to be without loss of senior-
ity, pay, or other employee status; 
‘‘(6) request the head of any State department or 
agency or local government to detail to the Authority 
such personnel as the Authority requires to carry out 
duties of the Authority, each such detail to be without 
loss of seniority, pay, or other employee status;
730 
† HR 2642 EAS 
‘‘(7) provide for coverage of Authority employees 
in a suitable retirement and employee benefit system 
by— 
‘‘(A) making arrangements or entering into 
contracts with any participating State govern-
ment; or 
‘‘(B) otherwise providing retirement and 
other employee benefit coverage; 
‘‘(8) accept, use, and dispose of gifts or donations 
of services or real, personal, tangible, or intangible 
property; 
‘‘(9) enter into and perform such contracts, 
leases, cooperative agreements, or other transactions 
as are necessary to carry out Authority duties, in-
cluding any contracts, leases, or cooperative agree-
ments with— 
‘‘(A) any department, agency, or instru-
mentality of the United States; 
‘‘(B) any State (including a political sub-
division, agency, or instrumentality of the 
State); or 
‘‘(C) any person, firm, association, or cor-
poration; and
731 
† HR 2642 EAS 
‘‘(10) establish and maintain a central office 
and field offices at such locations as the Authority 
may select. 
‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal 
agency shall— 
‘‘(1) cooperate with the Authority; and 
‘‘(2) provide, on request of the Federal cochair-
person, appropriate assistance in carrying out this 
chapter, in accordance with applicable Federal laws 
(including regulations). 
‘‘(g) ADMINISTRATIVE EXPENSES.— 
‘‘(1) IN GENERAL.—Administrative expenses of 
the Authority (except for the expenses of the Federal 
cochairperson, including expenses of the alternate and 
staff of the Federal cochairperson, which shall be paid 
solely by the Federal Government) shall be paid— 
‘‘(A) by the Federal Government, in an 
amount equal to 50 percent of the administrative 
expenses; and 
‘‘(B) by the States in the region partici-
pating in the Authority, in an amount equal to 
50 percent of the administrative expenses. 
‘‘(2) STATE SHARE.—
732 
† HR 2642 EAS 
‘‘(A) IN GENERAL.—The share of adminis-
trative expenses of the Authority to be paid by 
each State shall be determined by the Authority. 
‘‘(B) NO
FEDERAL
PARTICIPATION.—The 
Federal cochairperson shall not participate or 
vote in any decision under subparagraph (A). 
‘‘(C) DELINQUENT STATES.—If a State is 
delinquent in payment of the State’s share of ad-
ministrative expenses of the Authority under this 
subsection— 
‘‘(i) no assistance under this chapter 
shall be furnished to the State (including 
assistance to a political subdivision or a 
resident of the State); and 
‘‘(ii) no member of the Authority from 
the State shall participate or vote in any 
action by the Authority. 
‘‘(h) COMPENSATION.— 
‘‘(1) FEDERAL
COCHAIRPERSON.—The Federal 
cochairperson shall be compensated by the Federal 
Government at level III of the Executive Schedule in 
subchapter II of chapter 53 of title 5, United States 
Code. 
‘‘(2) ALTERNATE
FEDERAL
COCHAIRPERSON.— 
The alternate Federal cochairperson—
733 
† HR 2642 EAS 
‘‘(A) shall be compensated by the Federal 
Government at level V of the Executive Schedule 
described in paragraph (1); and 
‘‘(B) when not actively serving as an alter-
nate for the Federal cochairperson, shall perform 
such functions and duties as are delegated by the 
Federal cochairperson. 
‘‘(3) STATE MEMBERS AND ALTERNATES.— 
‘‘(A) IN
GENERAL.—A State shall com-
pensate each member and alternate representing 
the State on the Authority at the rate established 
by law of the State. 
‘‘(B) NO ADDITIONAL COMPENSATION.—No 
State member or alternate member shall receive 
any salary, or any contribution to or sup-
plementation of salary from any source other 
than the State for services provided by the mem-
ber or alternate to the Authority. 
‘‘(4) DETAILED EMPLOYEES.— 
‘‘(A) IN GENERAL.—No person detailed to 
serve the Authority under subsection (e)(6) shall 
receive any salary or any contribution to or sup-
plementation of salary for services provided to 
the Authority from—
734 
† HR 2642 EAS 
‘‘(i) any source other than the State, 
local, or intergovernmental department or 
agency from which the person was detailed; 
or 
‘‘(ii) the Authority. 
‘‘(B) VIOLATION.—Any person that violates 
this paragraph shall be fined not more than 
$5,000, imprisoned not more than 1 year, or 
both. 
‘‘(C) APPLICABLE
LAW.—The Federal co-
chairperson, the alternate Federal cochairperson, 
and any Federal officer or employee detailed to 
duty on the Authority under subsection (e)(5) 
shall not be subject to subparagraph (A), but 
shall remain subject to sections 202 through 209 
of title 18, United States Code. 
‘‘(5) ADDITIONAL PERSONNEL.— 
‘‘(A) COMPENSATION.— 
‘‘(i) IN GENERAL.—The Authority may 
appoint and fix the compensation of an ex-
ecutive director and such other personnel as 
are necessary to enable the Authority to 
carry out the duties of the Authority. 
‘‘(ii) 
EXCEPTION.—Compensation 
under clause (i) shall not exceed the max-
735 
† HR 2642 EAS 
imum rate for the Senior Executive Service 
under section 5382 of title 5, United States 
Code, including any applicable locality- 
based comparability payment that may be 
authorized under section 5304(h)(2)(C) of 
that title. 
‘‘(B) EXECUTIVE DIRECTOR.—The executive 
director shall be responsible for— 
‘‘(i) the carrying out of the adminis-
trative duties of the Authority; 
‘‘(ii) direction of the Authority staff; 
and 
‘‘(iii) such other duties as the Author-
ity may assign. 
‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No 
member, alternate, officer, or employee of the Au-
thority (except the Federal cochairperson of the 
Authority, the alternate and staff for the Federal 
cochairperson, and any Federal employee de-
tailed to the Authority under subsection (e)(5)) 
shall be considered to be a Federal employee for 
any purpose. 
‘‘(i) CONFLICTS OF INTEREST.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), no State member, alternate, officer, or
736 
† HR 2642 EAS 
employee of the Authority shall participate personally 
and substantially as a member, alternate, officer, or 
employee of the Authority, through decision, approval, 
disapproval, recommendation, the rendering of advice, 
investigation, or otherwise, in any proceeding, appli-
cation, request for a ruling or other determination, 
contract, claim, controversy, or other matter in which, 
to knowledge of the member, alternate, officer, or em-
ployee, there is a financial interest of— 
‘‘(A) the member, alternate, officer, or em-
ployee; 
‘‘(B) the spouse, minor child, partner, or or-
ganization (other than a State or political sub-
division of the State) of the member, alternate, 
officer, or employee, in which the member, alter-
nate, officer, or employee is serving as officer, di-
rector, trustee, partner, or employee; or 
‘‘(C) any person or organization with whom 
the member, alternate, officer, or employee is ne-
gotiating or has any arrangement concerning 
prospective employment. 
‘‘(2) DISCLOSURE.—Paragraph (1) shall not 
apply if the State member, alternate, officer, or em-
ployee—
737 
† HR 2642 EAS 
‘‘(A) immediately advises the Authority of 
the nature and circumstances of the proceeding, 
application, request for a ruling or other deter-
mination, contract, claim, controversy, or other 
particular matter presenting a potential conflict 
of interest; 
‘‘(B) makes full disclosure of the financial 
interest; and 
‘‘(C) before the proceeding concerning the 
matter presenting the conflict of interest, receives 
a written determination by the Authority that 
the interest is not so substantial as to be likely 
to affect the integrity of the services that the Au-
thority may expect from the State member, alter-
nate, officer, or employee. 
‘‘(3) VIOLATION.—Any person that violates this 
subsection shall be fined not more than $10,000, im-
prisoned not more than 2 years, or both. 
‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.— 
The Authority may declare void any contract, loan, or 
grant of or by the Authority in relation to which the Au-
thority determines that there has been a violation of any 
provision under subsection (h)(4), subsection (i), or sections 
202 through 209 of title 18, United States Code.
738 
† HR 2642 EAS 
‘‘SEC. 3803. ECONOMIC AND COMMUNITY DEVELOPMENT 
GRANTS. 
‘‘(a) IN GENERAL.—The Authority may approve 
grants to States and public and nonprofit entities for 
projects, approved in accordance with section 3809— 
‘‘(1) to develop the transportation infrastructure 
of the region for the purpose of facilitating economic 
development in the region (except that grants for this 
purpose may only be made to a State or local govern-
ment); 
‘‘(2) to assist the region in obtaining the job 
training, employment-related education, and business 
development (with an emphasis on entrepreneurship) 
that are needed to build and maintain strong local 
economies; 
‘‘(3) to provide assistance to severely distressed 
and underdeveloped areas that lack financial re-
sources for improving basic public services; 
‘‘(4) to provide assistance to severely distressed 
and underdeveloped areas that lack financial re-
sources for equipping industrial parks and related fa-
cilities; and 
‘‘(5) to otherwise achieve the purposes of this 
chapter. 
‘‘(b) FUNDING.—
739 
† HR 2642 EAS 
‘‘(1) IN GENERAL.—Funds for grants under sub-
section (a) may be provided— 
‘‘(A) entirely from appropriations to carry 
out this section; 
‘‘(B) in combination with funds available 
under another Federal or Federal grant pro-
gram; or 
‘‘(C) from any other source. 
‘‘(2) PRIORITY OF FUNDING.—To best build the 
foundations for long-term economic development and 
to complement other Federal and State resources in 
the region, Federal funds available under this chapter 
shall be focused on the activities in the following order 
or priority: 
‘‘(A) Basic public infrastructure in dis-
tressed counties and isolated areas of distress. 
‘‘(B) Transportation infrastructure for the 
purpose of facilitating economic development in 
the region. 
‘‘(C) Business development, with emphasis 
on entrepreneurship. 
‘‘(D) Job training or employment-related 
education, with emphasis on use of existing pub-
lic educational institutions located in the region.
740 
† HR 2642 EAS 
‘‘SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 
‘‘(a) FINDING.—Congress finds that certain States and 
local communities of the region, including local develop-
ment districts, may be unable to take maximum advantage 
of Federal grant programs for which the States and commu-
nities are eligible because— 
‘‘(1) the States or communities lack the economic 
resources to provide the required matching share; or 
‘‘(2) there are insufficient funds available under 
the applicable Federal law authorizing the Federal 
grant program to meet pressing needs of the region. 
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Notwith-
standing any provision of law limiting the Federal share, 
the areas eligible for assistance, or the authorizations of ap-
propriations of any Federal grant program, and in accord-
ance with subsection (c), the Authority, with the approval 
of the Federal cochairperson and with respect to a project 
to be carried out in the region— 
‘‘(1) may increase the Federal share of the costs 
of a project under the Federal grant program to not 
more than 90 percent (except as provided in section 
3806(b)); and 
‘‘(2) shall use amounts made available to carry 
out this chapter to pay the increased Federal share. 
‘‘(c) CERTIFICATIONS.—
741 
† HR 2642 EAS 
‘‘(1) IN GENERAL.—In the case of any project for 
which all or any portion of the basic Federal share 
of the costs of the project is proposed to be paid under 
this section, no Federal contribution shall be made 
until the Federal official administering the Federal 
law that authorizes the Federal grant program cer-
tifies that the project— 
‘‘(A) meets (except as provided in subsection 
(b)) the applicable requirements of the applicable 
Federal grant program; and 
‘‘(B) could be approved for Federal con-
tribution under the Federal grant program if 
funds were available under the law for the 
project. 
‘‘(2) CERTIFICATION BY AUTHORITY.— 
‘‘(A) IN GENERAL.—The certifications and 
determinations required to be made by the Au-
thority for approval of projects under this Act in 
accordance with section 3809 shall be— 
‘‘(i) controlling; and 
‘‘(ii) accepted by the Federal agencies. 
‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR-
PERSON.—In the case of any project described in 
paragraph (1), any finding, report, certification, 
or documentation required to be submitted with
742 
† HR 2642 EAS 
respect to the project to the head of the depart-
ment, agency, or instrumentality of the Federal 
Government responsible for the administration of 
the Federal grant program under which the 
project is carried out shall be accepted by the 
Federal cochairperson. 
‘‘SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; CERTIFI-
CATION AND ADMINISTRATIVE EXPENSES. 
‘‘(a) DEFINITION
OF
LOCAL
DEVELOPMENT
DIS-
TRICT.—In this section, the term ‘local development district’ 
means an entity that— 
‘‘(1) is— 
‘‘(A) a planning district in existence on the 
date of enactment of the Agriculture Reform, 
Food, and Jobs Act of 2013 that is recognized by 
the Secretary; or 
‘‘(B) if an entity described in subparagraph 
(A) does not exist— 
‘‘(i) organized and operated in a man-
ner that ensures broad-based community 
participation and an effective opportunity 
for other nonprofit groups to contribute to 
the development and implementation of pro-
grams in the region;
743 
† HR 2642 EAS 
‘‘(ii) governed by a policy board with 
at least a simple majority of members con-
sisting of elected officials or employees of a 
general purpose unit of local government 
who have been appointed to represent the 
government; 
‘‘(iii) certified to the Authority as hav-
ing a charter or authority that includes the 
economic development of counties or parts 
of counties or other political subdivisions 
within the region— 
‘‘(I) by the Governor of each State 
in which the entity is located; or 
‘‘(II) by the State officer des-
ignated by the appropriate State law 
to make the certification; and 
‘‘(iv)(I) a nonprofit incorporated body 
organized or chartered under the law of the 
State in which the entity is located; 
‘‘(II) a nonprofit agency or instrumen-
tality of a State or local government; 
‘‘(III) a public organization established 
before December 21, 2000, under State law 
for creation of multi-jurisdictional, area- 
wide planning organizations; or
744 
† HR 2642 EAS 
‘‘(IV) a nonprofit association or com-
bination of bodies, agencies, and instrumen-
talities described in subclauses (I) through 
(III); and 
‘‘(2) has not, as certified by the Federal cochair-
person— 
‘‘(A) inappropriately used Federal grant 
funds from any Federal source; or 
‘‘(B) appointed an officer who, during the 
period in which another entity inappropriately 
used Federal grant funds from any Federal 
source, was an officer of the other entity. 
‘‘(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.— 
‘‘(1) IN GENERAL.—The Authority shall make 
grants for administrative expenses under this section. 
‘‘(2) CONDITIONS FOR GRANTS.— 
‘‘(A) MAXIMUM AMOUNT.—The amount of 
any grant awarded under paragraph (1) shall 
not exceed 80 percent of the administrative ex-
penses of the local development district receiving 
the grant. 
‘‘(B) MAXIMUM
PERIOD.—No grant de-
scribed in paragraph (1) shall be awarded to a 
State agency certified as a local development dis-
trict for a period greater than 3 years.
745 
† HR 2642 EAS 
‘‘(C) LOCAL SHARE.—The contributions of a 
local development district for administrative ex-
penses may be in cash or in kind, fairly evalu-
ated, including space, equipment, and services. 
‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.— 
A local development district shall— 
‘‘(1) operate as a lead organization serving 
multicounty areas in the region at the local level; and 
‘‘(2) serve as a liaison between State and local 
governments, nonprofit organizations (including com-
munity-based groups and educational institutions), 
the business community, and citizens that— 
‘‘(A) are involved in multijurisdictional 
planning; 
‘‘(B) provide technical assistance to local 
jurisdictions and potential grantees; and 
‘‘(C) provide leadership and civic develop-
ment assistance. 
‘‘SEC. 3806. DISTRESSED COUNTIES AND AREAS AND NON-
DISTRESSED COUNTIES. 
‘‘(a) DESIGNATIONS.—Each year, the Authority, in ac-
cordance with such criteria as the Authority may establish, 
shall designate— 
‘‘(1) as distressed counties, counties in the region 
that are the most severely and persistently distressed
746 
† HR 2642 EAS 
and underdeveloped and have high rates of poverty or 
unemployment; 
‘‘(2) as nondistressed counties, counties in the re-
gion that are not designated as distressed counties 
under paragraph (1); and 
‘‘(3) as isolated areas of distress, areas located in 
nondistressed counties (as designated under para-
graph (2)) that have high rates of poverty or unem-
ployment. 
‘‘(b) DISTRESSED COUNTIES.— 
‘‘(1) IN GENERAL.—The Authority shall allocate 
at least 75 percent of the appropriations made avail-
able under section 3813 for programs and projects de-
signed to serve the needs of distressed counties and 
isolated areas of distress in the region. 
‘‘(2) FUNDING LIMITATIONS.—The funding limi-
tations under section 3804(b) shall not apply to a 
project providing transportation or basic public serv-
ices to residents of 1 or more distressed counties or 
isolated areas of distress in the region. 
‘‘(c) NONDISTRESSED COUNTIES.— 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, no funds shall be provided under this 
chapter for a project located in a county designated 
as a nondistressed county under subsection (a)(2).
747 
† HR 2642 EAS 
‘‘(2) EXCEPTIONS.— 
‘‘(A) IN GENERAL.—The funding prohibi-
tion under paragraph (1) shall not apply to 
grants to fund the administrative expenses of 
local development districts under section 3805(b). 
‘‘(B) MULTICOUNTY
PROJECTS.—The Au-
thority may waive the application of the funding 
prohibition under paragraph (1) to a multi-
county project that includes participation by a 
nondistressed county; or any other type of project 
if the Authority determines that the project could 
bring significant benefits to areas of the region 
outside a nondistressed county. 
‘‘(C) ISOLATED AREAS OF DISTRESS.—For 
a designation of an isolated area of distress for 
assistance to be effective, the designation shall be 
supported— 
‘‘(i) by the most recent Federal data 
available; or 
‘‘(ii) if no recent Federal data are 
available, by the most recent data available 
through the government of the State in 
which the isolated area of distress is located. 
‘‘(d) TRANSPORTATION
AND BASIC PUBLIC INFRA-
STRUCTURE.—The Authority shall allocate at least 50 per-
748 
† HR 2642 EAS 
cent of any funds made available under section 3813 for 
transportation and basic public infrastructure projects au-
thorized under paragraphs (1) and (3) of section 3803(a). 
‘‘SEC. 3807. DEVELOPMENT PLANNING PROCESS. 
‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 
with policies established by the Authority, each State mem-
ber shall submit a development plan for the area of the re-
gion represented by the State member. 
‘‘(b) CONTENT OF PLAN.—A State development plan 
submitted under subsection (a) shall reflect the goals, objec-
tives, and priorities identified in the regional development 
plan developed under section 3802(d)(2). 
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process 
(including the selection of programs and projects for assist-
ance), a State may— 
‘‘(1) consult with— 
‘‘(A) local development districts; and 
‘‘(B) local units of government; and 
‘‘(2) take into consideration the goals, objectives, 
priorities, and recommendations of the entities de-
scribed in paragraph (1). 
‘‘(d) PUBLIC PARTICIPATION.— 
‘‘(1) IN GENERAL.—The Authority and applica-
ble State and local development districts shall encour-
749 
† HR 2642 EAS 
age and assist, to the maximum extent practicable, 
public participation in the development, revision, and 
implementation of all plans and programs under this 
chapter. 
‘‘(2) REGULATIONS.—The Authority shall de-
velop guidelines for providing public participation 
described in paragraph (1), including public hear-
ings. 
‘‘SEC. 3808. PROGRAM DEVELOPMENT CRITERIA. 
‘‘(a) IN GENERAL.—In considering programs and 
projects to be provided assistance under this chapter and 
in establishing a priority ranking of the requests for assist-
ance provided by the Authority, the Authority shall follow 
procedures that ensure, to the maximum extent practicable, 
consideration of— 
‘‘(1) the relationship of the project or class of 
projects to overall regional development; 
‘‘(2) the per capita income and poverty and un-
employment rates in an area; 
‘‘(3) the financial resources available to the ap-
plicants for assistance seeking to carry out the 
project, with emphasis on ensuring that projects are 
adequately financed to maximize the probability of 
successful economic development;
750 
† HR 2642 EAS 
‘‘(4) the importance of the project or class of 
projects in relation to other projects or classes of 
projects that may be in competition for the same 
funds; 
‘‘(5) the prospects that the project for which as-
sistance is sought will improve, on a continuing rath-
er than a temporary basis, the opportunities for em-
ployment, the average level of income, or the economic 
development of the area served by the project; and 
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which 
grant expenditures and the results of the expenditures 
may be evaluated. 
‘‘(b) NO RELOCATION ASSISTANCE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no financial assistance authorized by this 
chapter shall be used to assist a person or entity in 
relocating from 1 area to another. 
‘‘(2) OUTSIDE
BUSINESSES.—Financial assist-
ance under this chapter may be used as otherwise au-
thorized by this subtitle to attract businesses from 
outside the region to the region. 
‘‘(c) REDUCTION OF FUNDS.—Funds may be provided 
for a program or project in a State under this chapter only 
if the Authority determines that the level of Federal or State
751 
† HR 2642 EAS 
financial assistance provided under a law other than this 
chapter, for the same type of program or project in the same 
area of the State within the region, will not be reduced as 
a result of funds made available by this chapter. 
‘‘SEC. 3809. APPROVAL OF DEVELOPMENT PLANS AND 
PROJECTS. 
‘‘(a) IN GENERAL.—A State or regional development 
plan or any multistate subregional plan that is proposed 
for development under this chapter shall be reviewed and 
approved by the Authority. 
‘‘(b) EVALUATION BY STATE MEMBER.—An applica-
tion for a grant or any other assistance for a project under 
this chapter shall be made through and evaluated for ap-
proval by the State member of the Authority representing 
the applicant. 
‘‘(c) CERTIFICATION.—An application for a grant or 
other assistance for a project shall be approved only on cer-
tification by the State member that the application for the 
project— 
‘‘(1) describes ways in which the project complies 
with any applicable State development plan; 
‘‘(2) meets applicable criteria under section 
3808;
752 
† HR 2642 EAS 
‘‘(3) provides adequate assurance that the pro-
posed project will be properly administered, operated, 
and maintained; and 
‘‘(4) otherwise meets the requirements of this 
chapter. 
‘‘(d) APPROVAL OF GRANT APPLICATIONS.—On certifi-
cation by a State member of the Authority of an application 
for a grant or other assistance for a specific project under 
this section, an affirmative vote of the Authority under sec-
tion 3802(c) shall be required for approval of the applica-
tion. 
‘‘SEC. 3810. CONSENT OF STATES. 
‘‘Nothing in this chapter requires any State to engage 
in or accept any program under this chapter without the 
consent of the State. 
‘‘SEC. 3811. RECORDS. 
‘‘(a) RECORDS OF THE AUTHORITY.— 
‘‘(1) IN GENERAL.—The Authority shall main-
tain accurate and complete records of all transactions 
and activities of the Authority. 
‘‘(2) AVAILABILITY.—All records of the Authority 
shall be available for audit and examination by the 
Comptroller General of the United States and the In-
spector General of the Department of Agriculture (in-
cluding authorized representatives of the Comptroller
753 
† HR 2642 EAS 
General and the Inspector General of the Department 
of Agriculture). 
‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST-
ANCE.— 
‘‘(1) IN GENERAL.—A recipient of Federal funds 
under this chapter shall, as required by the Authority, 
maintain accurate and complete records of trans-
actions and activities financed with Federal funds 
and report on the transactions and activities to the 
Authority. 
‘‘(2) AVAILABILITY.—All records required under 
paragraph (1) shall be available for audit by the 
Comptroller General of the United States, the Inspec-
tor General of the Department of Agriculture, and the 
Authority (including authorized representatives of the 
Comptroller General, the Inspector General of the De-
partment of Agriculture, and the Authority). 
‘‘SEC. 3812. ANNUAL REPORT. 
‘‘Not later than 180 days after the end of each fiscal 
year, the Authority shall submit to the President and to 
Congress a report describing the activities carried out under 
this chapter. 
‘‘SEC. 3813. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to the Authority to carry out this chapter
754 
† HR 2642 EAS 
$30,000,000 for each of fiscal years 2014 through 2018, to 
remain available until expended. 
‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 
percent of the amount appropriated under subsection (a) 
for a fiscal year shall be used for administrative expenses 
of the Authority. 
‘‘SEC. 3814. TERMINATION OF AUTHORITY. 
‘‘This chapter and the authority provided under this 
chapter expire on October 1, 2018. 
‘‘CHAPTER 5—NORTHERN GREAT PLAINS 
REGIONAL AUTHORITY 
‘‘SEC. 3821. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) AUTHORITY.—The term ‘Authority’ means 
the Northern Great Plains Regional Authority estab-
lished by section 3822. 
‘‘(2) FEDERAL
GRANT
PROGRAM.—The term 
‘Federal grant program’ means a Federal grant pro-
gram to provide assistance in— 
‘‘(A) implementing the recommendations of 
the Northern Great Plains Rural Development 
Commission established by the Northern Great 
Plains Rural Development Act (7 U.S.C. 2661 
note; Public Law 103–318); 
‘‘(B) acquiring or developing land;
755 
† HR 2642 EAS 
‘‘(C) constructing or equipping a highway, 
road, bridge, or facility; 
‘‘(D) carrying out other economic develop-
ment activities; or 
‘‘(E) conducting research activities related 
to the activities described in subparagraphs (A) 
through (D). 
‘‘(3) REGION.—The term ‘region’ means the 
States of Iowa, Minnesota, Missouri (other than coun-
ties included in the Delta Regional Authority), Ne-
braska, North Dakota, and South Dakota. 
‘‘SEC. 3822. NORTHERN GREAT PLAINS REGIONAL AUTHOR-
ITY. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN
GENERAL.—There is established the 
Northern Great Plains Regional Authority. 
‘‘(2) COMPOSITION.—The Authority shall be com-
posed of— 
‘‘(A) a Federal member, to be appointed by 
the President, by and with the advice and con-
sent of the Senate; 
‘‘(B) the Governor (or a designee of the Gov-
ernor) of each State in the region that elects to 
participate in the Authority; and
756 
† HR 2642 EAS 
‘‘(C) a member of an Indian tribe, who 
shall be a chairperson of an Indian tribe in the 
region or a designee of such a chairperson, to be 
appointed by the President, by and with the ad-
vice and consent of the Senate. 
‘‘(3) COCHAIRPERSONS.—The Authority shall be 
headed by— 
‘‘(A) the Federal member, who shall serve 
as— 
‘‘(i) the Federal cochairperson; and 
‘‘(ii) a liaison between the Federal 
Government and the Authority; 
‘‘(B) a State cochairperson, who shall be— 
‘‘(i) a Governor of a participating 
State in the region; and 
‘‘(ii) elected by the State members for 
a term of not less than 1 year; and 
‘‘(C) the member of an Indian tribe, who 
shall serve as— 
‘‘(i) the tribal cochairperson; and 
‘‘(ii) a liaison between the governments 
of Indian tribes in the region and the Au-
thority. 
‘‘(4) FAILURE TO CONFIRM.—
757 
† HR 2642 EAS 
‘‘(A) FEDERAL MEMBER.—Notwithstanding 
any other provision of this section, if a Federal 
member described in paragraph (2)(A) has not 
been confirmed by the Senate by not later than 
180 days after the date of enactment of the Agri-
culture Reform, Food, and Jobs Act of 2013, the 
Authority may organize and operate without the 
Federal member. 
‘‘(B) TRIBAL COCHAIRPERSON.—In the case 
of the tribal cochairperson, if no tribal cochair-
person is confirmed by the Senate, the regional 
authority shall consult and coordinate with the 
leaders of Indian tribes in the region concerning 
the activities of the Authority, as appropriate. 
‘‘(b) ALTERNATE MEMBERS.— 
‘‘(1) ALTERNATE
FEDERAL
COCHAIRPERSON.— 
The President shall appoint an alternate Federal co-
chairperson. 
‘‘(2) STATE ALTERNATES.— 
‘‘(A) IN GENERAL.—The State member of a 
participating State may have a single alternate, 
who shall be— 
‘‘(i) a resident of that State; and 
‘‘(ii) appointed by the Governor of the 
State.
758 
† HR 2642 EAS 
‘‘(B) QUORUM.—A State alternate member 
shall not be counted toward the establishment of 
a quorum of the members of the Authority in 
any case in which a quorum of the State mem-
bers is required to be present. 
‘‘(3) ALTERNATE TRIBAL COCHAIRPERSON.—The 
President shall appoint an alternate tribal cochair-
person, by and with the advice and consent of the 
Senate. 
‘‘(4) DELEGATION OF POWER.—No power or re-
sponsibility of the Authority specified in paragraphs 
(2) and (3) of subsection (c), and no voting right of 
any member of the Authority, shall be delegated to 
any person who is not— 
‘‘(A) a member of the Authority; or 
‘‘(B) entitled to vote in Authority meetings. 
‘‘(c) VOTING.— 
‘‘(1) IN GENERAL.—A decision by the Authority 
shall require a majority vote of the Authority (not in-
cluding any member representing a State that is de-
linquent under subsection (g)(2)(D)) to be effective. 
‘‘(2) QUORUM.—A quorum of State members 
shall be required to be present for the Authority to 
make any policy decision, including—
759 
† HR 2642 EAS 
‘‘(A) a modification or revision of an Au-
thority policy decision; 
‘‘(B) approval of a State or regional devel-
opment plan; and 
‘‘(C) any allocation of funds among the 
States. 
‘‘(3) PROJECT AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be— 
‘‘(A) a responsibility of the Authority; and 
‘‘(B) conducted in accordance with section 
3830. 
‘‘(4) VOTING BY ALTERNATE MEMBERS.—An al-
ternate member shall vote in the case of the absence, 
death, disability, removal, or resignation of the Fed-
eral, State, or Indian tribe member for whom the al-
ternate member is an alternate. 
‘‘(d) DUTIES.—The Authority shall— 
‘‘(1) develop, on a continuing basis, comprehen-
sive and coordinated plans and programs for 
multistate cooperation to advance the economic and 
social well-being of the region and to approve grants 
for the economic development of the region, giving due 
consideration to other Federal, State, tribal, and local 
planning and development activities in the region;
760 
† HR 2642 EAS 
‘‘(2) review, and when appropriate amend, pri-
orities in a development plan for the region (includ-
ing 5-year regional outcome targets); 
‘‘(3) assess the needs and assets of the region 
based on available research, demonstrations, inves-
tigations, assessments, and evaluations of the region 
prepared by Federal, State, tribal, and local agencies, 
universities, regional and local development districts 
or organizations, and other nonprofit groups; 
‘‘(4) formulate and recommend to the Governors 
and legislatures of States that participate in the Au-
thority forms of interstate cooperation for— 
‘‘(A) renewable energy development and 
transmission; 
‘‘(B) transportation planning and economic 
development; 
‘‘(C) information technology; 
‘‘(D) movement of freight and individuals 
within the region; 
‘‘(E) federally funded research at institu-
tions of higher education; and 
‘‘(F) conservation land management; 
‘‘(5) work with State, tribal, and local agencies 
in developing appropriate model legislation;
761 
† HR 2642 EAS 
‘‘(6) enhance the capacity of, and provide sup-
port for, multistate development and research organi-
zations, local development organizations and districts, 
and resource conservation districts in the region; 
‘‘(7) encourage private investment in industrial, 
commercial, renewable energy, and other economic de-
velopment projects in the region; and 
‘‘(8) cooperate with and assist State governments 
with economic development programs of participating 
States. 
‘‘(e) ADMINISTRATION.—In carrying out subsection 
(d), the Authority may— 
‘‘(1) hold such hearings, sit and act at such 
times and places, take such testimony, receive such 
evidence, and print or otherwise reproduce and dis-
tribute a description of the proceedings and reports 
on actions by the Authority as the Authority con-
siders appropriate; 
‘‘(2) authorize, through the Federal, State, or 
tribal cochairperson or any other member of the Au-
thority designated by the Authority, the administra-
tion of oaths if the Authority determines that testi-
mony should be taken or evidence received under oath; 
‘‘(3) request from any Federal, State, tribal, or 
local agency such information as may be available to
762 
† HR 2642 EAS 
or procurable by the agency that may be of use to the 
Authority in carrying out the duties of the Authority; 
‘‘(4) adopt, amend, and repeal bylaws and rules 
governing the conduct of business and the perform-
ance of duties of the Authority; 
‘‘(5) request the head of any Federal agency to 
detail to the Authority such personnel as the Author-
ity requires to carry out duties of the Authority, each 
such detail to be without loss of seniority, pay, or 
other employee status; 
‘‘(6) request the head of any State agency, tribal 
government, or local government to detail to the Au-
thority such personnel as the Authority requires to 
carry out duties of the Authority, each such detail to 
be without loss of seniority, pay, or other employee 
status; 
‘‘(7) provide for coverage of Authority employees 
in a suitable retirement and employee benefit system 
by— 
‘‘(A) making arrangements or entering into 
contracts with any participating State govern-
ment or tribal government; or 
‘‘(B) otherwise providing retirement and 
other employee benefit coverage;
763 
† HR 2642 EAS 
‘‘(8) accept, use, and dispose of gifts or donations 
of services or real, personal, tangible, or intangible 
property; 
‘‘(9) enter into and perform such contracts, 
leases, cooperative agreements, or other transactions 
as are necessary to carry out Authority duties, in-
cluding any contracts, leases, or cooperative agree-
ments with— 
‘‘(A) any department, agency, or instru-
mentality of the United States; 
‘‘(B) any State (including a political sub-
division, agency, or instrumentality of the 
State); 
‘‘(C) any Indian tribe in the region; or 
‘‘(D) any person, firm, association, or cor-
poration; and 
‘‘(10) establish and maintain a central office 
and field offices at such locations as the Authority 
may select. 
‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal 
agency shall— 
‘‘(1) cooperate with the Authority; and 
‘‘(2) provide, on request of a cochairperson, ap-
propriate assistance in carrying out this chapter, in
764 
† HR 2642 EAS 
accordance with applicable Federal laws (including 
regulations). 
‘‘(g) ADMINISTRATIVE EXPENSES.— 
‘‘(1) FEDERAL SHARE.—The Federal share of the 
administrative expenses of the Authority shall be— 
‘‘(A) for fiscal year 2014, 100 percent; 
‘‘(B) for fiscal year 2015, 75 percent; and 
‘‘(C) for fiscal year 2016 and each fiscal 
year thereafter, 50 percent. 
‘‘(2) NON-FEDERAL SHARE.— 
‘‘(A) IN GENERAL.—The non-Federal share 
of the administrative expenses of the Authority 
shall be paid by non-Federal sources in the 
States that participate in the Authority. 
‘‘(B) SHARE PAID BY EACH STATE.—The 
share of administrative expenses of the Authority 
to be paid by non-Federal sources in each State 
shall be determined by the Authority. 
‘‘(C) NO
FEDERAL
PARTICIPATION.—The 
Federal cochairperson shall not participate or 
vote in any decision under subparagraph (B). 
‘‘(D) DELINQUENT STATES.—If a State is 
delinquent in payment of the State’s share of ad-
ministrative expenses of the Authority under this 
subsection—
765 
† HR 2642 EAS 
‘‘(i) no assistance under this chapter 
shall be provided to the State (including as-
sistance to a political subdivision or a resi-
dent of the State); and 
‘‘(ii) no member of the Authority from 
the State shall participate or vote in any 
action by the Authority. 
‘‘(h) COMPENSATION.— 
‘‘(1) FEDERAL AND TRIBAL COCHAIRPERSONS.— 
The Federal cochairperson and the tribal cochair-
person shall be compensated by the Federal Govern-
ment at the annual rate of basic pay prescribed for 
level III of the Executive Schedule in subchapter II of 
chapter 53 of title 5, United States Code. 
‘‘(2) ALTERNATE
FEDERAL
AND
TRIBAL
CO-
CHAIRPERSONS.—The alternate Federal cochairperson 
and the alternate tribal cochairperson— 
‘‘(A) shall be compensated by the Federal 
Government at the annual rate of basic pay pre-
scribed for level V of the Executive Schedule de-
scribed in paragraph (1); and 
‘‘(B) when not actively serving as an alter-
nate, shall perform such functions and duties as 
are delegated by the Federal cochairperson or the 
tribal cochairperson, respectively.
766 
† HR 2642 EAS 
‘‘(3) STATE MEMBERS AND ALTERNATES.— 
‘‘(A) IN
GENERAL.—A State shall com-
pensate each member and alternate representing 
the State on the Authority at the rate established 
by State law. 
‘‘(B) NO ADDITIONAL COMPENSATION.—No 
State member or alternate member shall receive 
any salary, or any contribution to or sup-
plementation of salary from any source other 
than the State for services provided by the mem-
ber or alternate member to the Authority. 
‘‘(4) DETAILED EMPLOYEES.— 
‘‘(A) IN GENERAL.—No person detailed to 
serve the Authority under subsection (e)(6) shall 
receive any salary or any contribution to or sup-
plementation of salary for services provided to 
the Authority from— 
‘‘(i) any source other than the State, 
tribal, local, or intergovernmental agency 
from which the person was detailed; or 
‘‘(ii) the Authority. 
‘‘(B) VIOLATION.—Any person that violates 
this paragraph shall be fined not more than 
$5,000, imprisoned not more than 1 year, or 
both.
767 
† HR 2642 EAS 
‘‘(C) APPLICABLE
LAW.—The Federal co-
chairperson, the alternate Federal cochairperson, 
and any Federal officer or employee detailed to 
duty on the Authority under subsection (e)(5) 
shall not be subject to subparagraph (A), but 
shall remain subject to sections 202 through 209 
of title 18, United States Code. 
‘‘(5) ADDITIONAL PERSONNEL.— 
‘‘(A) COMPENSATION.— 
‘‘(i) IN GENERAL.—The Authority may 
appoint and fix the compensation of an ex-
ecutive director and such other personnel as 
are necessary to enable the Authority to 
carry out the duties of the Authority. 
‘‘(ii) 
EXCEPTION.—Compensation 
under clause (i) shall not exceed the max-
imum rate for the Senior Executive Service 
under section 5382 of title 5, United States 
Code, including any applicable locality- 
based comparability payment that may be 
authorized under section 5304(h)(2)(C) of 
that title. 
‘‘(B) EXECUTIVE DIRECTOR.—The executive 
director shall be responsible for—
768 
† HR 2642 EAS 
‘‘(i) the carrying out of the adminis-
trative duties of the Authority; 
‘‘(ii) direction of the Authority staff; 
and 
‘‘(iii) such other duties as the Author-
ity may assign. 
‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No 
member, alternate, officer, or employee of the Au-
thority (except the Federal cochairperson of the 
Authority, the alternate and staff for the Federal 
cochairperson, and any Federal employee de-
tailed to the Authority under subsection (e)(5)) 
shall be considered to be a Federal employee for 
any purpose. 
‘‘(i) CONFLICTS OF INTEREST.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), no State member, Indian tribe mem-
ber, State alternate, officer, or employee of the Au-
thority shall participate personally and substantially 
as a member, alternate, officer, or employee of the Au-
thority, through decision, approval, disapproval, rec-
ommendation, the rendering of advice, investigation, 
or otherwise, in any proceeding, application, request 
for a ruling or other determination, contract, claim, 
controversy, or other matter in which, to knowledge of
769 
† HR 2642 EAS 
the member, alternate, officer, or employee, there is a 
financial interest of— 
‘‘(A) the member, alternate, officer, or em-
ployee; 
‘‘(B) the spouse, minor child, partner, or or-
ganization (other than a State or political sub-
division of the State or the Indian tribe) of the 
member, alternate, officer, or employee, in which 
the member, alternate, officer, or employee is 
serving as officer, director, trustee, partner, or 
employee; or 
‘‘(C) any person or organization with whom 
the member, alternate, officer, or employee is ne-
gotiating or has any arrangement concerning 
prospective employment. 
‘‘(2) DISCLOSURE.—Paragraph (1) shall not 
apply if the State member, Indian tribe member, al-
ternate, officer, or employee— 
‘‘(A) immediately advises the Authority of 
the nature and circumstances of the proceeding, 
application, request for a ruling or other deter-
mination, contract, claim, controversy, or other 
particular matter presenting a potential conflict 
of interest;
770 
† HR 2642 EAS 
‘‘(B) makes full disclosure of the financial 
interest; and 
‘‘(C) before the proceeding concerning the 
matter presenting the conflict of interest, receives 
a written determination by the Authority that 
the interest is not so substantial as to be likely 
to affect the integrity of the services that the Au-
thority may expect from the State member, In-
dian tribe member, alternate, officer, or em-
ployee. 
‘‘(3) VIOLATION.—Any person that violates this 
subsection shall be fined not more than $10,000, im-
prisoned not more than 2 years, or both. 
‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.— 
The Authority may declare void any contract, loan, or 
grant of or by the Authority in relation to which the Au-
thority determines that there has been a violation of any 
provision under subsection (h)(4) or subsection (i) of this 
chapter, or sections 202 through 209 of title 18, United 
States Code. 
‘‘SEC. 3823. INTERSTATE COOPERATION FOR ECONOMIC OP-
PORTUNITY AND EFFICIENCY. 
‘‘(a) IN GENERAL.—The Authority shall provide as-
sistance to States in developing regional plans to address 
multistate economic issues, including plans—
771 
† HR 2642 EAS 
‘‘(1) to develop a regional transmission system 
for movement of renewable energy to markets outside 
the region; 
‘‘(2) to address regional transportation concerns, 
including the establishment of a Northern Great 
Plains Regional Transportation Working Group; 
‘‘(3) to encourage and support interstate collabo-
ration on federally funded research that is in the na-
tional interest; and 
‘‘(4) to establish a Regional Working Group on 
Agriculture Development and Transportation. 
‘‘(b) ECONOMIC ISSUES.—The multistate economic 
issues referred to in subsection (a) shall include— 
‘‘(1) renewable energy development and trans-
mission; 
‘‘(2) transportation planning and economic de-
velopment; 
‘‘(3) information technology; 
‘‘(4) movement of freight and individuals within 
the region; 
‘‘(5) federally funded research at institutions of 
higher education; and 
‘‘(6) conservation land management.
772 
† HR 2642 EAS 
‘‘SEC. 3824. ECONOMIC AND COMMUNITY DEVELOPMENT 
GRANTS. 
‘‘(a) IN GENERAL.—The Authority may approve 
grants to States, Indian tribes, local governments, and pub-
lic and nonprofit organizations for projects, approved in 
accordance with section 3830— 
‘‘(1) to assist the region in obtaining the job 
training, employment-related education, and business 
development (with an emphasis on entrepreneurship) 
that are needed to build and maintain strong local 
economies; 
‘‘(2) to develop the transportation, renewable en-
ergy transmission, and telecommunication infrastruc-
ture of the region for the purpose of facilitating eco-
nomic development in the region (except that grants 
for this purpose may be made only to States, Indian 
tribes, local governments, and nonprofit organiza-
tions); 
‘‘(3) to provide assistance to severely distressed 
and underdeveloped areas that lack financial re-
sources for improving basic public services; 
‘‘(4) to provide assistance to severely distressed 
and underdeveloped areas that lack financial re-
sources for equipping industrial parks and related fa-
cilities; and
773 
† HR 2642 EAS 
‘‘(5) to otherwise achieve the purposes of this 
chapter. 
‘‘(b) FUNDING.— 
‘‘(1) IN GENERAL.—Funds for grants under sub-
section (a) may be provided— 
‘‘(A) entirely from appropriations to carry 
out this section; 
‘‘(B) in combination with funds available 
under another Federal grant program; or 
‘‘(C) from any other source. 
‘‘(2) PRIORITY OF FUNDING.—To best build the 
foundations for long-term economic development and 
to complement other Federal, State, and tribal re-
sources in the region, Federal funds available under 
this chapter shall be focused on the following activi-
ties: 
‘‘(A) Basic public infrastructure in dis-
tressed counties and isolated areas of distress. 
‘‘(B) Transportation and telecommuni-
cation infrastructure for the purpose of facili-
tating economic development in the region. 
‘‘(C) Business development, with emphasis 
on entrepreneurship.
774 
† HR 2642 EAS 
‘‘(D) Job training or employment-related 
education, with emphasis on use of existing pub-
lic educational institutions located in the region. 
‘‘SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 
‘‘(a) FINDING.—Congress finds that certain States and 
local communities of the region may be unable to take max-
imum advantage of Federal grant programs for which the 
States and communities are eligible because— 
‘‘(1) the States and communities lack the eco-
nomic resources to provide the required matching 
share; or 
‘‘(2) there are insufficient funds available under 
the applicable Federal law authorizing the Federal 
grant program to meet pressing needs of the region. 
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Notwith-
standing any provision of law limiting the Federal share, 
the areas eligible for assistance, or the authorizations of ap-
propriations, under any Federal grant program, and in ac-
cordance with subsection (c), the Authority, with the ap-
proval of the Federal cochairperson and with respect to a 
project to be carried out in the region— 
‘‘(1) may increase the Federal share of the costs 
of a project under any Federal grant program to not 
more than 90 percent (except as provided in section 
3827(b)); and
775 
† HR 2642 EAS 
‘‘(2) shall use amounts made available to carry 
out this chapter to pay the increased Federal share. 
‘‘(c) CERTIFICATIONS.— 
‘‘(1) IN GENERAL.—In the case of any project for 
which all or any portion of the basic Federal share 
of the costs of the project is proposed to be paid under 
this section, no Federal contribution shall be made 
until the Federal official administering the Federal 
law that authorizes the Federal grant program cer-
tifies that the project— 
‘‘(A) meets (except as provided in subsection 
(b)) the applicable requirements of the applicable 
Federal grant program; and 
‘‘(B) could be approved for Federal con-
tribution under the Federal grant program if 
funds were available under the law for the 
project. 
‘‘(2) CERTIFICATION BY AUTHORITY.— 
‘‘(A) IN GENERAL.—The certifications and 
determinations required to be made by the Au-
thority for approval of projects under this Act in 
accordance with section 3830 shall be— 
‘‘(i) controlling; and 
‘‘(ii) accepted by the Federal agencies.
776 
† HR 2642 EAS 
‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR-
PERSON.—In the case of any project described in 
paragraph (1), any finding, report, certification, 
or documentation required to be submitted with 
respect to the project to the head of the depart-
ment, agency, or instrumentality of the Federal 
Government responsible for the administration of 
the Federal grant program under which the 
project is carried out shall be accepted by the 
Federal cochairperson. 
‘‘SEC. 3826. MULTISTATE AND LOCAL DEVELOPMENT DIS-
TRICTS AND ORGANIZATIONS AND NORTH-
ERN GREAT PLAINS INC. 
‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVEL-
OPMENT DISTRICT OR ORGANIZATION.—In this section, the 
term ‘multistate and local development district or organiza-
tion’ means an entity— 
‘‘(1) that— 
‘‘(A) is a planning district that is recog-
nized by the Economic Development Administra-
tion of the Department of Commerce; or 
‘‘(B) is— 
‘‘(i) organized and operated in a man-
ner that ensures broad-based community 
participation and an effective opportunity
777 
† HR 2642 EAS 
for other nonprofit groups to contribute to 
the development and implementation of pro-
grams in the region; 
‘‘(ii) a nonprofit incorporated body or-
ganized or chartered under the law of the 
State in which the entity is located; 
‘‘(iii) a nonprofit agency or instru-
mentality of a State or local government; 
‘‘(iv) a public organization established 
before the date of enactment of the Agri-
culture Reform, Food, and Jobs Act of 2013 
under State law for creation of multijuris-
dictional, area-wide planning organiza-
tions; 
‘‘(v) a nonprofit agency or instrumen-
tality of a State that was established for the 
purpose of assisting with multistate co-
operation; or 
‘‘(vi) a nonprofit association or com-
bination of bodies, agencies, and instrumen-
talities described in clauses (ii) through (v); 
and 
‘‘(2) that has not, as certified by the Authority 
(in consultation with the Federal cochairperson or 
Secretary, as appropriate)—
778 
† HR 2642 EAS 
‘‘(A) inappropriately used Federal grant 
funds from any Federal source; or 
‘‘(B) appointed an officer who, during the 
period in which another entity inappropriately 
used Federal grant funds from any Federal 
source, was an officer of the other entity. 
‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL 
DEVELOPMENT DISTRICTS AND ORGANIZATIONS.— 
‘‘(1) IN
GENERAL.—The Authority may make 
grants for administrative expenses under this section 
to multistate, local, and regional development dis-
tricts and organizations. 
‘‘(2) CONDITIONS FOR GRANTS.— 
‘‘(A) MAXIMUM AMOUNT.—The amount of 
any grant awarded under paragraph (1) shall 
not exceed 80 percent of the administrative ex-
penses of the multistate, local, or regional devel-
opment district or organization receiving the 
grant. 
‘‘(B) MAXIMUM
PERIOD.—No grant de-
scribed in paragraph (1) shall be awarded for a 
period of greater than 3 years. 
‘‘(3) LOCAL
SHARE.—The contributions of a 
multistate, local, or regional development district or 
organization for administrative expenses may be in
779 
† HR 2642 EAS 
cash or in kind, fairly evaluated, including space, 
equipment, and services. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a local development district shall operate 
as a lead organization serving multicounty areas in 
the region at the local level. 
‘‘(2) DESIGNATION.—The Federal cochairperson 
may designate an Indian tribe or multijurisdictional 
organization to serve as a lead organization in such 
cases as the Federal cochairperson or Secretary, as 
appropriate, determines appropriate. 
‘‘(d) NORTHERN GREAT PLAINS INC.—Northern Great 
Plains Inc., a nonprofit corporation incorporated in the 
State of Minnesota to implement the recommendations of 
the Northern Great Plains Rural Development Commission 
established by the Northern Great Plains Rural Develop-
ment Act (7 U.S.C. 2661 note; Public Law 103–318)— 
‘‘(1) shall serve as an independent, primary re-
source for the Authority on issues of concern to the re-
gion; 
‘‘(2) shall advise the Authority on development of 
international trade; 
‘‘(3) may provide research, education, training, 
and other support to the Authority; and
780 
† HR 2642 EAS 
‘‘(4) may carry out other activities on its own 
behalf or on behalf of other entities. 
‘‘SEC. 3827. DISTRESSED COUNTIES AND AREAS AND NON-
DISTRESSED COUNTIES. 
‘‘(a) DESIGNATIONS.—Each year, the Authority, in ac-
cordance with such criteria as the Authority may establish, 
shall designate— 
‘‘(1) as distressed counties, counties in the region 
that are the most severely and persistently distressed 
and underdeveloped and have high rates of poverty, 
unemployment, or outmigration; 
‘‘(2) as nondistressed counties, counties in the re-
gion that are not designated as distressed counties 
under paragraph (1); and 
‘‘(3) as isolated areas of distress, areas located in 
nondistressed counties (as designated under para-
graph (2)) that have high rates of poverty, unemploy-
ment, or outmigration. 
‘‘(b) DISTRESSED COUNTIES.— 
‘‘(1) IN GENERAL.—The Authority shall allocate 
at least 50 percent of the appropriations made avail-
able under section 3834 for programs and projects de-
signed to serve the needs of distressed counties and 
isolated areas of distress in the region.
781 
† HR 2642 EAS 
‘‘(2) FUNDING LIMITATIONS.—The funding limi-
tations under section 3825(b) shall not apply to a 
project to provide transportation or telecommuni-
cation or basic public services to residents of 1 or 
more distressed counties or isolated areas of distress 
in the region. 
‘‘(c) TRANSPORTATION, TELECOMMUNICATION, RE-
NEWABLE
ENERGY, AND
BASIC
PUBLIC
INFRASTRUC-
TURE.—The Authority shall allocate at least 50 percent of 
any funds made available under section 3834 for transpor-
tation, telecommunication, renewable energy, and basic 
public infrastructure projects authorized under paragraphs 
(1) and (3) of section 3824(a). 
‘‘SEC. 3828. DEVELOPMENT PLANNING PROCESS. 
‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 
with policies established by the Authority, each State mem-
ber shall submit a development plan for the area of the re-
gion represented by the State member. 
‘‘(b) CONTENT OF PLAN.—A State development plan 
submitted under subsection (a) shall reflect the goals, objec-
tives, and priorities identified in the regional development 
plan developed under section 3823(d)(2). 
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process
782 
† HR 2642 EAS 
(including the selection of programs and projects for assist-
ance), a State may— 
‘‘(1) consult with— 
‘‘(A) multistate, regional, and local develop-
ment districts and organizations; and 
‘‘(B) local units of government; and 
‘‘(2) take into consideration the goals, objectives, 
priorities, and recommendations of the entities de-
scribed in paragraph (1). 
‘‘(d) PUBLIC PARTICIPATION.— 
‘‘(1) IN GENERAL.—The Authority and applica-
ble multistate, regional, and local development dis-
tricts and organizations shall encourage and assist, to 
the maximum extent practicable, public participation 
in the development, revision, and implementation of 
all plans and programs under this chapter. 
‘‘(2) REGULATIONS.—The Authority shall de-
velop guidelines for providing public participation 
described in paragraph (1), including public hear-
ings. 
‘‘SEC. 3829. PROGRAM DEVELOPMENT CRITERIA. 
‘‘(a) IN GENERAL.—In considering programs and 
projects to be provided assistance under this chapter, and 
in establishing a priority ranking of the requests for assist-
ance provided to the Authority, the Authority shall follow
783 
† HR 2642 EAS 
procedures that ensure, to the maximum extent practicable, 
consideration of— 
‘‘(1) the relationship of the project or class of 
projects to overall multistate or regional development; 
‘‘(2) the per capita income and poverty and un-
employment and outmigration rates in an area; 
‘‘(3) the financial resources available to the ap-
plicants for assistance seeking to carry out the 
project, with emphasis on ensuring that projects are 
adequately financed to maximize the probability of 
successful economic development; 
‘‘(4) the importance of the project or class of 
projects in relation to other projects or classes of 
projects that may be in competition for the same 
funds; 
‘‘(5) the prospects that the project for which as-
sistance is sought will improve, on a continuing rath-
er than a temporary basis, the opportunities for em-
ployment, the average level of income, or the economic 
development of the area to be served by the project; 
and 
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which 
grant expenditures and the results of the expenditures 
may be evaluated.
784 
† HR 2642 EAS 
‘‘(b) NO RELOCATION ASSISTANCE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no financial assistance authorized by this 
chapter shall be used to assist a person or entity in 
relocating from 1 area to another. 
‘‘(2) OUTSIDE
BUSINESSES.—Financial assist-
ance under this chapter may be used as otherwise au-
thorized by this title to attract businesses from outside 
the region to the region. 
‘‘(c) MAINTENANCE OF EFFORT.—Funds may be pro-
vided for a program or project in a State under this chapter 
only if the Authority determines that the level of Federal 
or State financial assistance provided under a law other 
than this chapter, for the same type of program or project 
in the same area of the State within the region, will not 
be reduced as a result of funds made available by this chap-
ter. 
‘‘SEC. 3830. APPROVAL OF DEVELOPMENT PLANS AND 
PROJECTS. 
‘‘(a) IN GENERAL.—A State or regional development 
plan or any multistate subregional plan that is proposed 
for development under this chapter shall be reviewed by the 
Authority. 
‘‘(b) EVALUATION BY STATE MEMBER.—An applica-
tion for a grant or any other assistance for a project under
785 
† HR 2642 EAS 
this chapter shall be made through and evaluated for ap-
proval by the State member of the Authority representing 
the applicant. 
‘‘(c) CERTIFICATION.—An application for a grant or 
other assistance for a project shall be approved only on cer-
tification by the State member that the application for the 
project— 
‘‘(1) describes ways in which the project complies 
with any applicable State development plan; 
‘‘(2) meets applicable criteria under section 
3829; 
‘‘(3) provides adequate assurance that the pro-
posed project will be properly administered, operated, 
and maintained; and 
‘‘(4) otherwise meets the requirements of this 
chapter. 
‘‘(d) VOTES FOR DECISIONS.—On certification by a 
State member of the Authority of an application for a grant 
or other assistance for a specific project under this section, 
an affirmative vote of the Authority under section 3822(c) 
shall be required for approval of the application. 
‘‘SEC. 3831. CONSENT OF STATES. 
‘‘Nothing in this chapter requires any State to engage 
in or accept any program under this chapter without the 
consent of the State.
786 
† HR 2642 EAS 
‘‘SEC. 3832. RECORDS. 
‘‘(a) RECORDS OF THE AUTHORITY.— 
‘‘(1) IN GENERAL.—The Authority shall main-
tain accurate and complete records of all transactions 
and activities of the Authority. 
‘‘(2) AVAILABILITY.—All records of the Authority 
shall be available for audit and examination by the 
Comptroller General of the United States and the In-
spector General of the Department of Agriculture (in-
cluding authorized representatives of the Comptroller 
General and the Inspector General of the Department 
of Agriculture). 
‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST-
ANCE.— 
‘‘(1) IN GENERAL.—A recipient of Federal funds 
under this chapter shall, as required by the Authority, 
maintain accurate and complete records of trans-
actions and activities financed with Federal funds 
and report to the Authority on the transactions and 
activities to the Authority. 
‘‘(2) AVAILABILITY.—All records required under 
paragraph (1) shall be available for audit by the 
Comptroller General of the United States, the Inspec-
tor General of the Department of Agriculture, and the 
Authority (including authorized representatives of the
787 
† HR 2642 EAS 
Comptroller General, the Inspector General of the De-
partment of Agriculture, and the Authority). 
‘‘(c) ANNUAL AUDIT.—The Inspector General of the 
Department of Agriculture shall audit the activities, trans-
actions, and records of the Authority on an annual basis 
for any fiscal year for which funds are appropriated. 
‘‘SEC. 3833. ANNUAL REPORT. 
‘‘Not later than 180 days after the end of each fiscal 
year, the Authority shall submit to the President and to 
Congress a report describing the activities carried out under 
this chapter. 
‘‘SEC. 3834. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to the Authority to carry out this chapter 
$30,000,000 for each of fiscal years 2014 through 2018, to 
remain available until expended. 
‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 
percent of the amount appropriated under subsection (a) 
for a fiscal year shall be used for administrative expenses 
of the Authority. 
‘‘(c) MINIMUM STATE SHARE OF GRANTS.—Notwith-
standing any other provision of this chapter, for any fiscal 
year, the aggregate amount of grants received by a State 
and all persons or entities in the State under this chapter
788 
† HR 2642 EAS 
shall be not less than 1⁄3 of the product obtained by multi-
plying— 
‘‘(1) the aggregate amount of grants under this 
chapter for the fiscal year; and 
‘‘(2) the ratio that— 
‘‘(A) the population of the State (as deter-
mined by the Secretary of Commerce based on 
the most recent decennial census for which data 
are available); bears to 
‘‘(B) the population of the region (as so de-
termined). 
‘‘SEC. 3835. TERMINATION OF AUTHORITY. 
‘‘The authority provided by this chapter terminates ef-
fective October 1, 2018. 
‘‘Subtitle C—General Provisions 
‘‘SEC. 3901. FULL FAITH AND CREDIT. 
‘‘(a) IN GENERAL.—A guarantee executed by the Sec-
retary under this title shall be an obligation supported by 
the full faith and credit of the United States. 
‘‘(b) CONTESTABILITY.—A guarantee executed by the 
Secretary under this title shall be incontestable except for 
fraud or misrepresentation that the lender or any holder— 
‘‘(1) has actual knowledge of at the time the 
guarantee is executed; or 
‘‘(2) participates in or condones.
789 
† HR 2642 EAS 
‘‘SEC. 3902. PURCHASE AND SALE OF GUARANTEED POR-
TIONS OF LOANS. 
‘‘(a) IN GENERAL.—Subject to subsections (b) and (c), 
the Secretary may purchase, on such terms and conditions 
as the Secretary considers appropriate, the guaranteed por-
tion of a loan guaranteed under this title, if the Secretary 
determines that an adequate secondary market is not avail-
able in the private sector. 
‘‘(b) MAXIMUM PAYMENT.—The Secretary may not 
pay for any guaranteed portion of a loan under subsection 
(a) in excess of an amount equal to the unpaid principal 
balance and accrued interest on the guaranteed portion of 
the loan. 
‘‘(c) SOURCES OF FUNDING.—The Secretary may use 
for the purchases— 
‘‘(1) funds from the Rural Development Insur-
ance Fund with respect to rural development loans 
(as defined in section 3704(a)); and 
‘‘(2) funds from the Agricultural Credit Insur-
ance Fund with respect to all other loans under this 
title. 
‘‘(d) SALE OF GUARANTEED LOANS.— 
‘‘(1) SALES.— 
‘‘(A) REGULATION.— 
‘‘(i) IN
GENERAL.—The guaranteed 
portion of any loan made under this title
790 
† HR 2642 EAS 
may be sold by the lender, and by any sub-
sequent holder, in accordance with such reg-
ulations governing the sales as the Secretary 
shall establish, subject to clauses (ii) and 
(iii). 
‘‘(ii) FEES TO BE PAID IN FULL.—All 
fees due the Secretary with respect to a 
guaranteed loan shall be paid in full before 
any sale. 
‘‘(iii) 
LOAN
TO
BE
FULLY
DIS-
BURSED.—The loan shall be fully disbursed 
to the borrower before the sale. 
‘‘(B) POST-SALE.—After a loan is sold in 
the secondary market, the lender shall— 
‘‘(i) remain obligated under the guar-
antee agreement of the lender with the Sec-
retary; and 
‘‘(ii) continue to service the loan in ac-
cordance with the terms and conditions of 
that agreement. 
‘‘(C) PROCEDURES.—The Secretary shall 
develop such procedures as are necessary for— 
‘‘(i) the facilitation, administration, 
and promotion of secondary market oper-
ations; and
791 
† HR 2642 EAS 
‘‘(ii) determining the increase of access 
of farmers to capital at reasonable rates 
and terms as a result of secondary market 
operations. 
‘‘(D) RIGHTS TO PREPAY.—This subsection 
does not impede or extinguish— 
‘‘(i) the right of the borrower or the 
successor in interest to the borrower to pre-
pay (in whole or in part) any loan made 
under this title; or 
‘‘(ii) the rights of any party under any 
provision of this title. 
‘‘(2) ISSUE POOL CERTIFICATES.— 
‘‘(A) IN GENERAL.—The Secretary may, di-
rectly or through a market maker approved by 
the Secretary, issue pool certificates representing 
ownership of part or all of the guaranteed por-
tion of any loan guaranteed by the Secretary 
under this title. 
‘‘(B) APPROVAL.—Certificates under sub-
paragraph (A) shall be based on and backed by 
a pool established or approved by the Secretary 
and composed solely of the entire guaranteed 
portion of the loans.
792 
† HR 2642 EAS 
‘‘(C) GUARANTEE OF POOL.—On such terms 
and conditions as the Secretary considers appro-
priate, the Secretary may guarantee the timely 
payment of the principal and interest on pool 
certificates issued on behalf of the Secretary by 
approved market makers for purposes of this sub-
section. 
‘‘(D) LIMITATIONS.—A guarantee under 
subparagraph (C) shall be limited to the extent 
of principal and interest on the guaranteed por-
tions of loans that compose the pool. 
‘‘(E) PREPAYMENT.—If a loan in a pool is 
prepaid, either voluntarily or by reason of de-
fault, the guarantee of timely payment of prin-
cipal and interest on the pool certificates shall be 
reduced in proportion to the amount of principal 
and interest that the prepaid loan represents in 
the pool. 
‘‘(F) INTEREST ACCRUAL.—Interest on pre-
paid or defaulted loans shall accrue and be guar-
anteed by the Secretary only through the date of 
payment on the guarantee. 
‘‘(G) REDEMPTION.—During the term of the 
pool certificate, the certificate may be called for
793 
† HR 2642 EAS 
redemption due to prepayment or default of all 
loans constituting the pool. 
‘‘(H) FULL FAITH AND CREDIT.—The full 
faith and credit of the United States is pledged 
to the payment of all amounts that may be re-
quired to be paid under any guarantee of the 
pool certificates issued by approved market mak-
ers under this subsection. 
‘‘(I) FEES.— 
‘‘(i) IN GENERAL.—The Secretary shall 
not collect any fee for any guarantee under 
this subsection. 
‘‘(ii) 
SECRETARIAL
FUNCTIONS.— 
Clause (i) does not preclude the Secretary 
from collecting a fee for the functions de-
scribed in paragraph (3). 
‘‘(J) DEFAULT.—Not later than 30 days 
after a borrower of a guaranteed loan is in de-
fault of any principal or interest payment due 
for 60 days or more, the Secretary shall— 
‘‘(i) purchase the pool certificates rep-
resenting ownership of the guaranteed por-
tion of the loan; and 
‘‘(ii) pay the registered holder of the 
certificates an amount equal to the guaran-
794 
† HR 2642 EAS 
teed portion of the loan represented by the 
certificate. 
‘‘(K) PAYMENT
OF
CLAIMS.—If the Sec-
retary pays a claim under a guarantee issued 
under this subsection, the claim shall be sub-
rogated fully to the rights satisfied by the pay-
ment, as may be provided by the Secretary. 
‘‘(L) APPLICATION OF LAWS.—No State or 
local law, and no Federal law, shall preclude or 
limit the exercise by the Secretary of the owner-
ship rights of the Secretary in the portions of 
loans constituting the pool against which the cer-
tificates are issued. 
‘‘(3) DUTIES OF THE SECRETARY.— 
‘‘(A) IN
GENERAL.—On the adoption of 
final rules and regulations, the Secretary shall— 
‘‘(i) provide for the central collection of 
registration information from all partici-
pating market makers for all loans and pool 
certificates sold under paragraphs (1) and 
(2), including, with respect to each original 
sale and any subsequent sale— 
‘‘(I) identification of the interest 
rate paid by the borrower to the lender;
795 
† HR 2642 EAS 
‘‘(II) the servicing fee of the lend-
er; 
‘‘(III) disclosure of whether inter-
est on the loan is at a fixed or variable 
rate; 
‘‘(IV) identification of each pur-
chaser of a pool certificate; 
‘‘(V) the interest rate paid on the 
certificate; and 
‘‘(VI) such other information as 
the Secretary considers appropriate. 
‘‘(ii) before any sale, require the seller 
(as defined in subparagraph (B)) to disclose 
to each prospective purchaser of the portion 
of a loan guaranteed under this title and to 
each prospective purchaser of a pool certifi-
cate issued under paragraph (2) informa-
tion on the terms, conditions, and yield of 
such instrument; 
‘‘(iii) provide for adequate custody of 
any pooled guaranteed loans; 
‘‘(iv) take such actions as are nec-
essary, in restructuring pools of the guaran-
teed portion of loans, to minimize the esti-
796 
† HR 2642 EAS 
mated costs of paying claims under guaran-
tees issued under this subsection; 
‘‘(v) require each market maker— 
‘‘(I) to service all pools formed, 
and participations sold, by the market 
maker; and 
‘‘(II) to provide the Secretary 
with information relating to the collec-
tion and disbursement of all periodic 
payments, prepayments, and default 
funds from lenders, to or from the re-
serve fund that the Secretary shall es-
tablish to enable the timely payment 
guarantee to be self-funding, and from 
all beneficial holders; and 
‘‘(vi) regulate market makers in pool 
certificates sold under this subsection. 
‘‘(B) DEFINITION
OF
SELLER.—For pur-
poses of subparagraph (A)(ii), if the instrument 
being sold is a loan, the term ‘seller’ does not in-
clude— 
‘‘(i) the person who made the loan; or 
‘‘(ii) any person who sells 3 or fewer 
guaranteed loans per year.
797 
† HR 2642 EAS 
‘‘(4) CONTRACT FOR SERVICES.—The Secretary 
may contract for goods and services to be used for the 
purposes of this subsection without regard to titles 5, 
40, and 41, United States Code (including any regu-
lations issued under those titles). 
‘‘SEC. 3903. ADMINISTRATION. 
‘‘(a) POWERS OF SECRETARY.—The Secretary may— 
‘‘(1)(A) administer the powers and duties of the 
Secretary through such national, area, State, or local 
offices and employees in the United States as the Sec-
retary determines to be necessary; and 
‘‘(B) authorize an office to serve an area com-
posed of 2 or more States if the Secretary determines 
that the volume of business in the area is not suffi-
cient to justify separate State offices; 
‘‘(2)(A) accept and use voluntary and uncom-
pensated services; and 
‘‘(B) with the consent of the agency concerned, 
use the officers, employees, equipment, and informa-
tion of any agency of the Federal Government, or of 
any State, territory, or political subdivision; 
‘‘(3) subject to appropriations, make necessary 
expenditures for the purchase or hire of passenger ve-
hicles, and such other facilities and services as the
798 
† HR 2642 EAS 
Secretary may from time to time find necessary for 
the proper administration of this title; 
‘‘(4) subject to subsection (b), compromise, ad-
just, reduce, or charge-off debts or claims (including 
debts and claims arising from loan guarantees), and 
adjust, modify, subordinate, or release the terms of se-
curity instruments, leases, contracts, and agreements 
entered into or administered by the Farm Service 
Agency, the Rural Utilities Service, the Rural Hous-
ing Service, the Rural Business-Cooperative Service, 
or successor agencies under this title, except for activi-
ties conducted under the Housing Act of 1949 (42 
U.S.C. 1441 et seq.); 
‘‘(5)(A) except for activities conducted under the 
Housing Act of 1949 (42 U.S.C. 1441 et seq.), collect 
all claims and obligations administered by the Farm 
Service Agency, the Rural Utilities Service, the Rural 
Housing Service, or the Rural Business-Cooperative 
Service, or under any mortgage, lease, contract, or 
agreement entered into or administered by the Agency 
or Service; and 
‘‘(B) if the Secretary determines the action is 
necessary and advisable, pursue the collection to final 
collection in any court having jurisdiction;
799 
† HR 2642 EAS 
‘‘(6) release mortgage and other contract liens if 
it appears that the mortgage and liens have no 
present or prospective value or that the enforcement 
of the mortgage and liens likely would be ineffectual 
or uneconomical; 
‘‘(7) obtain fidelity bonds protecting the Federal 
Government against fraud and dishonesty of officers 
and employees of the Farm Service Agency, the Rural 
Utilities Service, the Rural Housing Service, or the 
Rural Business-Cooperative Service in lieu of faithful 
performance of duties bonds under section 14 of title 
6, United States Code, but otherwise in accordance 
with the section; 
‘‘(8) consent to— 
‘‘(A) long-term leases of facilities financed 
under this title notwithstanding the failure of the 
lessee to meet any of the requirements of this title 
if the long-term leases are necessary to ensure the 
continuation of services for which financing was 
extended to the lessor; and 
‘‘(B) the transfer of property securing any 
loan or financed by any loan or grant made or 
guaranteed by the Farm Service Agency, the 
Rural Utilities Service, the Rural Housing Serv-
ice, or the Rural Business-Cooperative Service
800 
† HR 2642 EAS 
under this title, or any other law administered 
by the Secretary, on such terms as the Secretary 
considers necessary to carry out the purpose of 
the loan or grant or to protect the financial in-
terest of the Federal Government, provided that 
the Secretary shall document the consent of the 
Secretary for the transfer of the property of a 
borrower in the file of the borrower; and 
‘‘(9) notwithstanding that an area ceases, or has 
ceased, to be rural, in a rural area, or an eligible 
area, make loans and grants, and approve transfers 
and assumptions, under this title on the same basis 
as though the area still was rural in connection with 
property securing any loan made or guaranteed by 
the Secretary under this title or in connection with 
any property held by the Secretary under this title. 
‘‘(b) LOAN ADJUSTMENTS.— 
‘‘(1) NO LIQUIDATION OF PROPERTY.—The Sec-
retary may not require liquidation of property secur-
ing any farmer program loan or acceleration of any 
payment required under any farmer program loan as 
a prerequisite to initiating an action authorized 
under subsection (a). 
‘‘(2) RELEASE OF PERSONAL LIABILITY.—
801 
† HR 2642 EAS 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary may release a 
borrower or other person obligated on a debt 
(other than debt incurred under the Housing Act 
of 1949 (42 U.S.C. 1441 et seq.)) from personal 
liability with or without payment of any consid-
eration at the time of the compromise, adjust-
ment, reduction, or charge-off of any claim. 
‘‘(B) EXCEPTION.—No compromise, adjust-
ment, reduction, or charge-off of any claim may 
be made or carried out after the claim has been 
referred to the Attorney General, unless the At-
torney General approves. 
‘‘(3) RURAL
ELECTRIFICATION
SECURITY
IN-
STRUMENTS.—In the case of a security instrument 
entered into under the Rural Electrification Act of 
1936 (7 U.S.C. 901 et seq.), the Secretary shall notify 
the Attorney General of the intent of the Secretary to 
exercise the authority of the Secretary under para-
graph (2). 
‘‘(c) SIMPLIFIED APPLICATION FORMS
FOR LOAN 
GUARANTEES.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
to lenders a short, simplified application form for 
guarantees under this title of—
802 
† HR 2642 EAS 
‘‘(A) farmer program loans the principal 
amount of which is $125,000 or less; and 
‘‘(B) business and industry guaranteed 
loans under section 3601(a)(2)(A) the principal 
amount of which is— 
‘‘(i) $400,000 or less; or 
‘‘(ii) if the Secretary determines that 
there is not a significant increased risk of 
a default on the loan, $600,000 or less. 
‘‘(2) WATER AND WASTE DISPOSAL GRANTS AND 
LOANS.—The Secretary shall develop an application 
process that accelerates, to the maximum extent prac-
ticable, the processing of applications for water and 
waste disposal grants or direct or guaranteed loans 
under section 3501(a)(1) the grant award amount or 
principal loan amount, respectively, of which is 
$300,000 or less. 
‘‘(3) ADMINISTRATION.—In developing an appli-
cation under this subsection, the Secretary shall— 
‘‘(A) consult with commercial and coopera-
tive lenders; and 
‘‘(B) ensure that— 
‘‘(i) the form can be completed manu-
ally or electronically, at the option of the 
lender;
803 
† HR 2642 EAS 
‘‘(ii) the form minimizes the docu-
mentation required to accompany the form; 
‘‘(iii) the cost of completing and proc-
essing the form is minimal; and 
‘‘(iv) the form can be completed and 
processed in an expeditious manner. 
‘‘(d) USE OF ATTORNEYS FOR PROSECUTION OR DE-
FENSE OF CLAIMS.—The Secretary may use for the prosecu-
tion or defense of any claim or obligation described in sub-
section (a)(5) the Attorney General, the General Counsel of 
the Department, or a private attorney who has entered into 
a contract with the Secretary. 
‘‘(e) PRIVATE COLLECTION AGENCY.—The Secretary 
may use a private collection agency to collect a claim or 
obligation described in subsection (a)(5). 
‘‘(f) SECURITY SERVICING.— 
‘‘(1) IN GENERAL.—The Secretary may— 
‘‘(A) make advances, without regard to any 
loan or total indebtedness limitation, to preserve 
and protect the security for, or the lien or pri-
ority of the lien securing any loan or other in-
debtedness owing to or acquired by the Secretary 
under this title or under any other program ad-
ministered by the Farm Service Agency, the 
Rural Utilities Service, the Rural Housing Serv-
804 
† HR 2642 EAS 
ice, or the Rural Business-Cooperative Service 
applicable program, as determined by the Sec-
retary; and 
‘‘(B)(i) bid for and purchase at any execu-
tion, foreclosure, or other sale or otherwise ac-
quire property on which the United States has a 
lien by reason of a judgment or execution arising 
from, or that is pledged, mortgaged, conveyed, at-
tached, or levied on to secure the payment of, the 
indebtedness regardless of whether the property is 
subject to other liens; 
‘‘(ii) accept title to any property so pur-
chased or acquired; and 
‘‘(iii) sell, manage, or otherwise dispose of 
the property in accordance with this subsection. 
‘‘(2) OPERATION OR LEASE OF REALTY.—Except 
as provided in subsections (c) and (e), real property 
administered under this title may be operated or 
leased by the Secretary for such period as the Sec-
retary may consider necessary to protect the invest-
ment of the Federal Government in the property. 
‘‘(g) PAYMENTS TO LENDERS.— 
‘‘(1) REQUIREMENT.—Not later than 90 days 
after a court of competent jurisdiction confirms a 
plan of reorganization under chapter 12 of title 11,
805 
† HR 2642 EAS 
United States Code, for any borrower to whom a 
lender has made a loan guaranteed under this title, 
the Secretary shall pay the lender an amount esti-
mated by the Secretary to be equal to the loss in-
curred by the lender for purposes of the guarantee. 
‘‘(2) PAYMENT TOWARD LOAN GUARANTEE.—Any 
amount paid to a lender under this subsection with 
respect to a loan guaranteed under this title shall be 
treated as payment towards satisfaction of the loan 
guarantee. 
‘‘SEC. 3904. LOAN MORATORIUM AND POLICY ON FORE-
CLOSURES. 
‘‘(a) IN GENERAL.—In addition to any other authority 
that the Secretary may have to defer principal and interest 
and forgo foreclosure, the Secretary may permit, at the re-
quest of the borrower, the deferral of principal and interest 
on any outstanding loan made or guaranteed by the Sec-
retary under this title, or under any other law administered 
by the Farm Service Agency, the Rural Utilities Service, 
the Rural Housing Service, or the Rural Business-Coopera-
tive Service, and may forgo foreclosure of the loan, for such 
period as the Secretary considers necessary on a showing 
by the borrower that, due to circumstances beyond the con-
trol of the borrower, the borrower is temporarily unable to 
continue making payments of the principal and interest
806 
† HR 2642 EAS 
when due without unduly impairing the standard of living 
of the borrower. 
‘‘(b) INTEREST.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may permit any loan de-
ferred under this section to bear no interest during or 
after the deferral period. 
‘‘(2) EXCEPTION.—If the security instrument se-
curing the loan is foreclosed, such interest as is in-
cluded in the purchase price at the foreclosure shall 
become part of the principal and draw interest from 
the date of foreclosure at the rate prescribed by law. 
‘‘(c) 
MORATORIUM
REGARDING
CIVIL
RIGHTS 
CLAIMS.— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this subsection, effective beginning on May 22, 
2008, there shall be in effect a moratorium, with re-
spect to farmer program loans made under subtitle A, 
on all acceleration and foreclosure proceedings insti-
tuted by the Department against any farmer who— 
‘‘(A) has pending against the Department a 
claim of program discrimination that is accepted 
by the Department as valid; or 
‘‘(B) files a claim of program discrimina-
tion that is accepted by the Department as valid.
807 
† HR 2642 EAS 
‘‘(2) WAIVER OF INTEREST AND OFFSETS.—Dur-
ing the period of the moratorium, the Secretary shall 
waive the accrual of interest and offsets on all farmer 
program loans made under subtitle A for which loan 
acceleration or foreclosure proceedings have been sus-
pended under paragraph (1). 
‘‘(3) TERMINATION OF MORATORIUM.—The mor-
atorium shall terminate with respect to a claim of 
discrimination by a farmer on the earlier of— 
‘‘(A) the date the Secretary resolves the 
claim; or 
‘‘(B) if the farmer appeals the decision of 
the Secretary on the claim to a court of com-
petent jurisdiction, the date that the court ren-
ders a final decision on the claim. 
‘‘(4) FAILURE TO PREVAIL.—If a farmer does not 
prevail on a claim of discrimination described in 
paragraph (1), the farmer shall be liable for any in-
terest and offsets that accrued during the period that 
loan acceleration or foreclosure proceedings have been 
suspended under paragraph (1). 
‘‘SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON LOANS. 
‘‘(a) IN GENERAL.—The Secretary shall permit a bor-
rower of a loan made or guaranteed under this title to make 
a prospective payment on the loan with proceeds from—
808 
† HR 2642 EAS 
‘‘(1) the leasing of oil, gas, or other mineral 
rights to real property used to secure the loan; or 
‘‘(2) the sale of oil, gas, or other minerals re-
moved from real property used to secure the loan, if 
the value of the rights to the oil, gas, or other min-
erals has not been used to secure the loan. 
‘‘(b) APPLICABILITY.—Subsection (a) shall not apply 
to a borrower of a loan made or guaranteed under this title 
with respect to which a liquidation or foreclosure pro-
ceeding was pending on December 23, 1985. 
‘‘SEC. 3906. TAXATION. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), all property subject to a lien held by the United States 
or the title to which is acquired or held by the Secretary 
under this title (other than property used for administra-
tive purposes) shall be subject to taxation by State, terri-
tory, district, and local political subdivisions in the same 
manner and to the same extent as other property is taxed. 
‘‘(b) EXCEPTIONS.—No tax shall be imposed or col-
lected as described in subsection (a) if the tax (whether as 
a tax on the instrument or in connection with conveying, 
transferring, or recording the instrument) is based on— 
‘‘(1) the value of any notes or mortgages or other 
lien instruments held by or transferred to the Sec-
retary;
809 
† HR 2642 EAS 
‘‘(2) any notes or lien instruments administered 
under this title that are made, assigned, or held by 
a person otherwise liable for the tax; or 
‘‘(3) the value of any property conveyed or trans-
ferred to the Secretary. 
‘‘(c) FAILURE TO PAY OR COLLECT TAX.—The failure 
to pay or collect a tax under subsection (a) shall not— 
‘‘(1) be a ground for— 
‘‘(A) refusal to record or file an instrument; 
or 
‘‘(B) failure to provide notice; or 
‘‘(2) prevent the enforcement of the instrument 
in any Federal or State court. 
‘‘SEC. 3907. CONFLICTS OF INTEREST. 
‘‘(a) ACCEPTANCE OF CONSIDERATION PROHIBITED.— 
No officer, attorney, or other employee of the Department 
shall, directly or indirectly, be the beneficiary of or receive 
any fee, commission, gift, or other consideration for or in 
connection with any transaction or business under this title 
other than such salary, fee, or other compensation as the 
officer, attorney, or employee may receive as the officer, at-
torney, or employee. 
‘‘(b) ACQUISITION OF INTEREST IN LAND PROHIB-
ITED.—
810 
† HR 2642 EAS 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no officer or employee of the Department 
who acts on or reviews an application made by any 
person under this title for a loan to purchase land 
may acquire, directly or indirectly, any interest in 
the land for a period of 3 years after the date on 
which the action is taken or the review is made. 
‘‘(2) FORMER COUNTY COMMITTEE MEMBERS.— 
Paragraph (1) shall not apply to a former member of 
a county committee on a determination by the Sec-
retary, prior to the acquisition of the interest, that the 
former member acted in good faith when acting on or 
reviewing the application. 
‘‘(c) PENALTIES.—Any person violating this section 
shall, on conviction of the violation, be punished by a fine 
of not more than $2,000 or imprisonment for not more than 
2 years, or both. 
‘‘SEC. 3908. LOAN SUMMARY STATEMENTS. 
‘‘(a) DEFINITION OF SUMMARY PERIOD.—In this sec-
tion, the term ‘summary period’ means the period begin-
ning on the date of issuance of the preceding loan summary 
statement and ending on the date of issuance of the current 
loan summary statement. 
‘‘(b) ISSUANCE OF STATEMENTS.—On the request of a 
borrower of a loan made (but not guaranteed) under this
811 
† HR 2642 EAS 
title, the Secretary shall issue to the borrower a loan sum-
mary statement that reflects the account activity during the 
summary period for each loan made under this title to the 
borrower, including— 
‘‘(1) the outstanding amount of principal due on 
each loan at the beginning of the summary period; 
‘‘(2) the interest rate charged on each loan; 
‘‘(3) the amount of payments made on, and the 
application of the payments to, each loan during the 
summary period and an explanation of the basis for 
the application of the payments; 
‘‘(4) the amount of principal and interest due on 
each loan at the end of the summary period; 
‘‘(5) the total amount of unpaid principal and 
interest on all loans at the end of the summary pe-
riod; 
‘‘(6) any delinquency in the repayment of any 
loan; 
‘‘(7) a schedule of the amount and date of pay-
ments due on each loan; and 
‘‘(8) the procedure the borrower may use to ob-
tain more information concerning the status of the 
loans. 
‘‘SEC. 3909. CERTIFIED LENDERS PROGRAM. 
‘‘(a) CERTIFIED LENDERS PROGRAM.—
812 
† HR 2642 EAS 
‘‘(1) IN GENERAL.—The Secretary shall establish 
a program under which the Secretary shall guarantee 
loans under this title that are made by lending insti-
tutions certified by the Secretary. 
‘‘(2) CERTIFICATION REQUIREMENTS.—The Sec-
retary shall certify a lending institution that meets 
such criteria as the Secretary may prescribe in regu-
lations, including the ability of the institution to 
properly make, service, and liquidate the loans of the 
institution. 
‘‘(3) CONDITION OF CERTIFICATION.— 
‘‘(A) IN GENERAL.—As a condition of the 
certification, the Secretary shall require the in-
stitution to undertake to service the loans guar-
anteed by the Secretary under this section, using 
standards that are not less stringent than gen-
erally accepted banking standards concerning 
loan servicing employed by prudent commercial 
or cooperative lenders. 
‘‘(B) MONITORING.—The Secretary shall, at 
least annually, monitor the performance of each 
certified lender to ensure that the conditions of 
the certification are being met. 
‘‘(4) 
EFFECT
OF
CERTIFICATION.—Notwith-
standing any other provision of law:
813 
† HR 2642 EAS 
‘‘(A) AMOUNT
OF
LOAN
GUARANTEE.—In 
the case of a loan made or guaranteed under sub-
title A, the Secretary shall guarantee not more 
than 80 percent of a loan made under this sec-
tion by a certified lending institution as de-
scribed in paragraph (1), subject to a determina-
tion that the borrower of the loan meets the eligi-
bility requirements and such other criteria as 
may be applicable to loans guaranteed by the 
Secretary under other provisions of this title. 
‘‘(B) CERTIFICATIONS BY LENDING INSTITU-
TIONS.—In the case of loans to be guaranteed by 
the Secretary under this section, the Secretary 
shall permit certified lending institutions to 
make appropriate certifications (as provided by 
regulations issued by the Secretary)— 
‘‘(i) relating to issues such as credit-
worthiness, repayment ability, adequacy of 
collateral, and feasibility of farm operation; 
and 
‘‘(ii) that the borrower is in compli-
ance with all requirements of law, including 
regulations issued by the Secretary. 
‘‘(C) APPROVAL PROCESS.—
814 
† HR 2642 EAS 
‘‘(i) IN GENERAL.—The Secretary shall 
approve or disapprove a guarantee not later 
than 14 days after the date that the lending 
institution applies to the Secretary for the 
guarantee. 
‘‘(ii) DISAPPROVAL.—If the Secretary 
disapproves the loan application during the 
14-day period, the Secretary shall state, in 
writing, all of the reasons the application 
was disapproved. 
‘‘(5) 
RELATIONSHIP
TO
OTHER
REQUIRE-
MENTS.—Nothing in this section affects the responsi-
bility of the Secretary to certify eligibility, review fi-
nancial information, and otherwise assess an applica-
tion. 
‘‘(b) PREFERRED CERTIFIED LENDERS PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall establish 
a Preferred Certified Lenders Program for lenders 
under this title who establish— 
‘‘(A) knowledge of, and experience under, 
the program established under subsection (a); 
‘‘(B) knowledge of the regulations con-
cerning the guaranteed loan program; and 
‘‘(C) proficiency related to the certified 
lender program requirements.
815 
† HR 2642 EAS 
‘‘(2) REVOCATION OF DESIGNATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the designation of a lender as a Pre-
ferred Certified Lender shall be revoked at any 
time— 
‘‘(i) that the Secretary determines that 
the lender is not adhering to the rules and 
regulations applicable to the program; or 
‘‘(ii) if the loss experiences of a Pre-
ferred Certified Lender are excessive as com-
pared to other Preferred Certified Lenders. 
‘‘(B) EFFECT.—A suspension or revocation 
under subparagraph (A) shall not affect any out-
standing guarantee. 
‘‘(3) CONDITION OF CERTIFICATION.—As a con-
dition of preferred certification, the Secretary shall 
require the institution to undertake to service the 
loans guaranteed by the Secretary under this sub-
section using generally accepted banking standards 
concerning loan servicing employed by prudent com-
mercial or cooperative lenders. 
‘‘(4) MONITORING.—The Secretary shall, at least 
annually, monitor the performance of each Preferred 
Certified Lender to ensure that the conditions of cer-
tification are being met.
816 
† HR 2642 EAS 
‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI-
CATION.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the Secretary shall— 
‘‘(i) guarantee not more than 80 per-
cent of an approved loan made by a cer-
tified lending institution as described in 
this subsection, subject to a determination 
that the borrower meets the eligibility re-
quirements or such other criteria as may be 
applicable to loans guaranteed by the Sec-
retary under other provisions of this title; 
‘‘(ii) permit certified lending institu-
tions— 
‘‘(I) to make all decisions, with 
respect to loans to be guaranteed by the 
Secretary under this subsection relat-
ing to credit worthiness, the closing, 
monitoring, collection and liquidation 
of loans; and 
‘‘(II) to accept appropriate certifi-
cations, as provided by regulations 
issued by the Secretary, that the bor-
rower is in compliance with all re-
817 
† HR 2642 EAS 
quirements of law or regulations pro-
mulgated by the Secretary; and 
‘‘(iii) be considered to have guaranteed 
80 percent of a loan made by a preferred 
certified lending institution as described in 
paragraph (1), if the Secretary fails to ap-
prove or reject the application of such insti-
tution within 14 calendar days after the 
date that the lending institution presented 
the application to the Secretary. 
‘‘(B) REQUIREMENT.—If the Secretary re-
jects an application under subparagraph (A)(iii) 
during the 14-day period, the Secretary shall 
state, in writing, the reasons the application was 
rejected. 
‘‘(c) ADMINISTRATION OF CERTIFIED LENDERS AND 
PREFERRED CERTIFIED LENDERS PROGRAMS.—The Sec-
retary may administer the loan guarantee programs under 
subsections (a) and (b) through central offices established 
in States or in multi-State areas. 
‘‘SEC. 3910. LOANS TO RESIDENT ALIENS. 
‘‘(a) IN GENERAL.—Notwithstanding the provisions of 
this title limiting the making of a loan to a citizen of the 
United States, the Secretary may make a loan under this 
title to an alien lawfully admitted to the United States for
818 
† HR 2642 EAS 
permanent residence under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.). 
‘‘(b) REGULATIONS.— 
‘‘(1) IN GENERAL.—No loan may be made under 
this title to an alien referred to in subsection (a) until 
the Secretary issues regulations establishing the terms 
and conditions under which the alien may receive the 
loan. 
‘‘(2) REQUIREMENT.—The Secretary shall sub-
mit the regulations to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate at 
least 30 days prior to the date on which the regula-
tions are published in the Federal Register. 
‘‘SEC. 3911. EXPEDITED CLEARING OF TITLE TO INVENTORY 
PROPERTY. 
‘‘(a) IN GENERAL.—The Secretary may employ local 
attorneys, on a case-by-case basis, to process all legal proce-
dures necessary to clear the title to foreclosed properties in 
the inventory of the Department. 
‘‘(b) COMPENSATION.—Attorneys shall be compensated 
at not more than the usual and customary charges of the 
attorneys for the work.
819 
† HR 2642 EAS 
‘‘SEC. 3912. TRANSFER OF LAND TO SECRETARY. 
‘‘The President may at any time, in the discretion of 
the President, transfer to the Secretary any right, interest, 
or title held by the United States in any land acquired in 
the program of national defense and no longer needed for 
that purpose that the President finds suitable for the pur-
poses of this title, and the Secretary shall dispose of the 
transferred land in the manner and subject to the terms 
and conditions of this title. 
‘‘SEC. 3913. COMPETITIVE SOURCING LIMITATIONS. 
‘‘The Secretary may not complete a study of, or enter 
into a contract with a private party to carry out, without 
specific authorization in a subsequent Act of Congress, a 
competitive sourcing activity of the Secretary, including 
support personnel of the Department, relating to rural de-
velopment or farmer program loans. 
‘‘SEC. 3914. REGULATIONS. 
‘‘The Secretary may issue such regulations, prescribe 
such terms and conditions for making or guaranteeing 
loans, security instruments, and agreements, except as oth-
erwise specified in this title, and make such delegations of 
authority as the Secretary considers necessary to carry out 
this title.’’.
820 
† HR 2642 EAS 
SEC. 6002. CONFORMING AMENDMENTS. 
(a) Section 17(c) of the Rural Electrification Act of 
1936 (7 U.S.C. 917(c)) is amended by striking paragraph 
(1) and inserting the following: 
‘‘(1) Subtitle B of the Consolidated Farm and 
Rural Development Act.’’. 
(b) Section 305(c)(2)(B)(i)(I) of the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended 
by striking ‘‘section 307(a)(3)(A) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1927(a)(3)(A))’’ and 
inserting ‘‘section 3701(b)(2) of the Consolidated Farm and 
Rural Development Act’’. 
(c) Section 306F(a)(1) of the Rural Electrification Act 
of 1936 (7 U.S.C. 936f(a)(1)) is amended by striking sub-
paragraph (B) and inserting the following: 
‘‘(B) chapter 1 of subtitle B of the Consoli-
dated Farm and Rural Development Act.’’. 
(d) Section 2333(d) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 950aaa–2(d)) is 
amended— 
(1) in paragraph (11), by adding ‘‘and’’ at the 
end; 
(2) by striking paragraph (12); and 
(3) by redesignating paragraph (13) as para-
graph (12).
821 
† HR 2642 EAS 
(e) Section 601(b) of the Rural Electrification Act of 
1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph 
(3). 
(f) Section 602(5) of the Emergency Livestock Feed As-
sistance Act of 1988 (7 U.S.C. 1471(5)) is amended by 
striking ‘‘section 355(e)(1)(D)(ii) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1985(e)(1)(D)(ii))’’ 
and inserting ‘‘section 3409(c)(1)(A) of the Consolidated 
Farm and Rural Development Act)’’. 
(g) Section 508 of the Federal Crop Insurance Act (7 
U.S.C. 1508) is amended— 
(1) in subsection (b)(7)(A), by striking ‘‘section 
371 of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2008f)’’ and inserting ‘‘section 
3424 of the Consolidated Farm and Rural Develop-
ment Act’’; and 
(2) in subsection (n)(2), by striking ‘‘subtitle C 
of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1961 et seq.)’’ and inserting ‘‘chapter 3 of 
subtitle A of the Consolidated Farm and Rural Devel-
opment Act’’. 
(h) Section 231(a) of the Agricultural Risk Protection 
Act of 2000 (7 U.S.C. 1632a(a)) is amended— 
(1) in paragraph (1), by striking ‘‘section 343(a) 
of the Consolidated Farm and Rural Development Act
822 
† HR 2642 EAS 
(7 U.S.C. 1991(a))’’ and inserting ‘‘section 3002 of 
the Consolidated Farm and Rural Development Act’’; 
and 
(2) in paragraph (4), by striking ‘‘section 355(e) 
of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2003(e))’’ and inserting ‘‘section 3002 of 
the Consolidated Farm and Rural Development Act’’. 
(i) Section 14204(a) of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 2008q–1(a)) is amended by 
striking ‘‘an entity described in section 379C(a) of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
2008q(a))’’ and inserting ‘‘an entity determined by the Sec-
retary’’. 
(j) Section 607(c)(6) of the Rural Development Policy 
Act of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the last 
sentence— 
(1) by striking ‘‘, and’’ and inserting ‘‘and 
any’’; and 
(2) 
by 
striking 
‘‘required 
under 
section 
306(a)(12) of the Consolidated Farm and Rural De-
velopment Act’’. 
(k) Section 901(b) of the Agricultural Act of 1970 (7 
U.S.C. 2204b–1(b)) is amended by striking ‘‘rural areas as 
defined in the private business enterprise exception in sec-
tion 306(a)(7) of the Consolidated Farmers Home Adminis-
823 
† HR 2642 EAS 
tration Act of 1961, as amended (7 U.S.C. 1926)’’ and in-
serting ‘‘rural areas, as defined in section 3002 of the Con-
solidated Farm and Rural Development Act’’. 
(l) Section 14220 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 2206b) is amended by striking 
‘‘section 343(a)(13)(A) of the Consolidated Farm and Rural 
Development Act)’’ and inserting ‘‘section 3002 of the Con-
solidated Farm and Rural Development Act)’’. 
(m) Section 2501(c)(2)(D) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(c)(2)(D)) is amended by striking ‘‘sections 355(a)(1) 
and 355(c) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2003(a)(1))’’ and inserting ‘‘para-
graphs (1) and (3) of section 3416(a) of the Consolidated 
Farm and Rural Development Act’’. 
(n) Section 2501A(b) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 2279–1(b)) is 
amended by striking ‘‘section 355(e) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2003(e))’’ and 
inserting ‘‘section 3002 of the Consolidated Farm and 
Rural Development Act’’. 
(o) Section 7405(c)(8)(B) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is 
amended by striking ‘‘section 355(e) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2003(e))’’ and
824 
† HR 2642 EAS 
inserting ‘‘section 3002 of the Consolidated Farm and 
Rural Development Act)’’. 
(p) Section 1101(d)(2)(A) of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is amend-
ed by striking ‘‘section 355(e) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(e))’’ and inserting 
‘‘section 3002 of the Consolidated Farm and Rural Develop-
ment Act)’’. 
(q) Section 1302(d)(2)(A) of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is amend-
ed by striking ‘‘section 355(e) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(e))’’ and inserting 
‘‘section 3002 of the Consolidated Farm and Rural Develop-
ment Act)’’. 
(r) Section 2375(g) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 6613(g)) is amended 
by striking ‘‘section 304(b), 306(a), or 310B(e) of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1924(b), 1926(a), and 1932(e))’’ and inserting ‘‘subtitle B 
of the Consolidated Farm and Rural Development Act’’. 
(s) Section 226B(a)(1) of the Department of Agri-
culture Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) 
is amended by striking ‘‘section 343(a) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1991(a))’’ and
825 
† HR 2642 EAS 
inserting ‘‘section 3002 of the Consolidated Farm and 
Rural Development Act’’. 
(t) Section 196(i)(3)(B) of the Federal Agriculture Im-
provement 
and 
Reform 
Act 
of 
1996 
(7 
U.S.C. 
7333(i)(3)(B)) is amended by striking ‘‘subtitle C of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1961 et seq.)’’ and inserting ‘‘chapter 3 of subtitle A of the 
Consolidated Farm and Rural Development Act’’. 
(u) Section 9009(a)(1) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is 
amended by striking ‘‘section 343(a)(13)(A) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1991(a)(13)(A)))’’ and inserting ‘‘section 3002 of the Con-
solidated Farm and Rural Development Act’’. 
(v) Section 9011(c)(2)(B)(v) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) 
is amended by striking subclause (I) and inserting the fol-
lowing: 
‘‘(I) beginning farmers (as defined 
in accordance with section 3002 of the 
Consolidated Farm and Rural Devel-
opment Act); or’’. 
(w) Section 7(b)(2)(B) of the Small Business Act (15 
U.S.C. 636(b)(2)(B)) is amended by striking ‘‘section 321 
of the Consolidated Farm and Rural Development Act (7
826 
† HR 2642 EAS 
U.S.C. 1961)’’ and inserting ‘‘section 3301 of the Consoli-
dated Farm and Rural Development Act’’. 
(x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C. 
590h(b)(5)(B)(iii)(III)(bb)) is amended by striking ‘‘section 
355(e)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2003(e)(1))’’ and inserting ‘‘section 3002 of 
the Consolidated Farm and Rural Development Act)’’. 
(y) Section 10(b)(3) of the Cooperative Forestry Assist-
ance Act of 1978 (16 U.S.C. 2106(b)(3)) is amended in the 
last sentence by striking ‘‘set out in the first clause of sec-
tion 306(a)(7) of the Consolidated Farm and Rural Devel-
opment Act’’ and inserting ‘‘given the term in section 3002 
of the Consolidated Farm and Rural Development Act’’. 
(z) Section 1201(a)(2) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)(2)) is amended by striking ‘‘section 
343(a)(8) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(a)(8))’’ and inserting ‘‘section 3002 of 
the Consolidated Farm and Rural Development Act’’. 
(aa) Section 1238(2) of the Food Security Act of 1985 
(16 U.S.C. 3838(2)) is amended by striking ‘‘section 343(a) 
of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1991(a))’’ and inserting ‘‘section 3002 of the Con-
solidated Farm and Rural Development Act’’.
827 
† HR 2642 EAS 
(bb) Section 5 of Public Law 91–229 (25 U.S.C. 492) 
is amended by striking ‘‘section 307(a)(3)(B) of the Consoli-
dated Farmers Home Administration Act of 1961, as 
amended, and to the provisions of subtitle D of that Act 
except sections 340, 341, 342, and 343’’ and inserting 
‘‘3105(b)(2) of the Consolidated Farm and Rural Develop-
ment Act’’. 
(cc) Section 6(c) of Public Law 91–229 (25 U.S.C. 
493(c)) is amended by striking ‘‘section 333B of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1983b)’’ and inserting ‘‘subtitle H of the Department of Ag-
riculture Reorganization Act of 1994 (7 U.S.C. 6991 et 
seq.)’’. 
(dd) Section 181(a)(2)(B)(ii) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘section 2009aa–1 of 
title 7, United States Code’’ and inserting ‘‘section 3801 
of the Consolidated Farm and Rural Development Act’’. 
(ee) Section 515(b)(3) of the Housing Act of 1949 (42 
U.S.C. 1485(b)(3)) is amended by striking ‘‘all the provi-
sions of section 309 and the second and third sentences of 
section 308 of the Consolidated Farmers Home Administra-
tion Act of 1961, including the authority in section 
309(f)(1) of that Act’’ and inserting ‘‘section 3401 of the 
Consolidated Farm and Rural Development Act’’.
828 
† HR 2642 EAS 
(ff) Section 517(b) of the Housing Act of 1949 (42 
U.S.C. 1487(b)) is amended in the third sentence by strik-
ing ‘‘(7 U.S.C. 1929)’’ and inserting ‘‘under section 3401 
of the Consolidated Farm and Rural Development Act’’. 
(gg) Section 3(8) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3122(8)) is amended— 
(1) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) the Delta Regional Authority estab-
lished under chapter 4 of subtitle B of the Con-
solidated Farm and Rural Development Act;’’; 
and 
(2) by striking subparagraph (D) and inserting 
the following: 
‘‘(D) the Northern Great Plains Regional 
Authority established under chapter 5 of subtitle 
B of the Consolidated Farm and Rural Develop-
ment Act.’’. 
(hh) Section 310(a) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) 
is amended by striking paragraph (4) and inserting the fol-
lowing: 
‘‘(4) Chapter 1 of subtitle B of the Consolidated 
Farm and Rural Development Act.’’.
829 
† HR 2642 EAS 
(ii) Section 582(d)(1) of the National Flood Insurance 
Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is amended 
by striking ‘‘section 321(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1961(a))’’ and inserting 
‘‘section 3301(b) of the Consolidated Farm and Rural De-
velopment Act’’. 
(jj) Section 213(c)(1) of the Biomass Energy and Alco-
hol Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amended 
in the first sentence by striking ‘‘section 309 of the Consoli-
dated Farm and Rural Development Act or the Rural De-
velopment Insurance Fund in section 309A of such Act’’ 
and inserting ‘‘under section 3401 of the Consolidated 
Farm and Rural Development Act or the Rural Develop-
ment Insurance Fund under section 3704 of that Act’’. 
(kk) Section 1323(b)(2) of the Food Security Act of 
1985 (Public Law 99–198; 7 U.S.C. 1932 note) is amend-
ed— 
(1) in subparagraph (A), by inserting ‘‘and’’ at 
the end; 
(2) in subparagraph (B), by striking ‘‘; and’’ at 
the end and inserting a period; and 
(3) by striking subparagraph (C).
830 
† HR 2642 EAS 
Subtitle B—Rural Electrification 
SEC. 6101. DEFINITION OF RURAL AREA. 
Section 13(3) of the Rural Electrification Act of 1936 
(7 U.S.C. 913(A)) is amended by striking subparagraph (A) 
and inserting the following: 
‘‘(A) 
any 
area 
described 
in 
section 
3002(28)(A)(i) of the Consolidated Farm and 
Rural Development Act; and’’. 
SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED 
FOR ELECTRIFICATION OR TELEPHONE PUR-
POSES. 
Section 313A(f) of the Rural Electrification Act of 
1936 (7 U.S.C. 940c–1(f)) is amended by striking ‘‘2012’’ 
and inserting ‘‘2018’’. 
SEC. 6103. EXPANSION OF 911 ACCESS. 
Section 315(d) of the Rural Electrification Act of 1936 
(7 U.S.C. 940e(d)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2018’’. 
SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS 
SERVICES IN RURAL AREAS. 
Section 601 of the Rural Electrification Act of 1936 
(7 U.S.C. 950bb) is amended— 
(1) in subsection (a), by striking ‘‘loans and’’ 
and inserting ‘‘grants, loans, and’’;
831 
† HR 2642 EAS 
(2) in subsection (b), by striking paragraph (3) 
and inserting the following: 
‘‘(3) RURAL AREA.—The term ‘rural area’ means 
any area described in section 3002 of the Consoli-
dated Farm and Rural Development Act. 
‘‘(4) ULTRA-HIGH
SPEED
SERVICE.—The term 
‘ultra-high speed service’ means broadband service op-
erating at a 1 gigabit per second downstream trans-
mission capacity.’’; 
(3) in subsection (c)— 
(A) in the subsection heading, by striking 
‘‘LOANS AND’’ and inserting ‘‘GRANTS, LOANS, 
AND’’; 
(B) in paragraph (1), by inserting ‘‘make 
grants and’’ after ‘‘Secretary shall’’; 
(C) by striking paragraph (2) and inserting 
the following: 
‘‘(2) PRIORITY.— 
‘‘(A) IN
GENERAL.—In making grants, 
loans, or loan guarantees under paragraph (1), 
the Secretary shall— 
‘‘(i) establish not less than 2, and not 
more than 4, evaluation periods for each fis-
cal year to compare grant, loan, and loan 
guarantee applications and to prioritize
832 
† HR 2642 EAS 
grants, loans, and loan guarantees to all or 
part of rural communities that do not have 
residential broadband service that meets the 
minimum acceptable level of broadband 
service established under subsection (e); 
‘‘(ii) give the highest priority to appli-
cants that offer to provide broadband service 
to the greatest proportion of unserved rural 
households or rural households that do not 
have residential broadband service that 
meets the minimum acceptable level of 
broadband service established under sub-
section (e), as— 
‘‘(I) certified by the affected com-
munity, city, county, or designee; or 
‘‘(II) demonstrated on— 
‘‘(aa) the broadband map of 
the affected State if the map con-
tains address-level data; or 
‘‘(bb) 
the 
National 
Broadband Map if address-level 
data is unavailable; and 
‘‘(iii) provide equal consideration to 
all qualified applicants, including those 
that have not previously received grants,
833 
† HR 2642 EAS 
loans, or loan guarantees under paragraph 
(1). 
‘‘(B) OTHER.—After giving priority to the 
applicants described in subparagraph (A), the 
Secretary shall then give priority to projects that 
serve rural communities— 
‘‘(i) with a population of less than 
20,000 permanent residents; 
‘‘(ii) experiencing outmigration; 
‘‘(iii) with a high percentage of low-in-
come residents; and 
‘‘(iv) that are isolated from other sig-
nificant population centers.’’; and 
(D) by adding at the end the following: 
‘‘(3) GRANT AMOUNTS.— 
‘‘(A) ELIGIBILITY.—To be eligible for a 
grant under this section, the project that is the 
subject of the grant shall be carried out in a 
rural area. 
‘‘(B) MAXIMUM.—Except as provided in 
subparagraph (D), the amount of any grant 
made under this section shall not exceed 50 per-
cent of the development costs of the project for 
which the grant is provided.
834 
† HR 2642 EAS 
‘‘(C) GRANT RATE.—The Secretary shall es-
tablish the grant rate for each project in accord-
ance with regulations issued by the Secretary 
that shall provide for a graduated scale of grant 
rates that establish higher rates for projects in 
communities that have— 
‘‘(i) remote locations; 
‘‘(ii) low community populations; 
‘‘(iii) low income levels; 
‘‘(iv) developed the applications of the 
communities with the participation of com-
binations of stakeholders, including— 
‘‘(I) State, local, and tribal gov-
ernments; 
‘‘(II) nonprofit institutions; 
‘‘(III) institutions of higher edu-
cation; 
‘‘(IV) private entities; and 
‘‘(V) philanthropic organizations; 
and 
‘‘(v) targeted funding to provide the 
minimum acceptable level of broadband 
service established under subsection (e) in 
all or part of an unserved community that
835 
† HR 2642 EAS 
is below that minimum acceptable level of 
broadband service. 
‘‘(D) SECRETARIAL
AUTHORITY
TO
AD-
JUST.—The Secretary may make grants of up to 
75 percent of the development costs of the project 
for which the grant is provided to an eligible en-
tity if the Secretary determines that the project 
serves a remote or low income area that does not 
have access to broadband service from any pro-
vider of broadband service (including the appli-
cant).’’; 
(4) in subsection (d)— 
(A) in paragraph (1)(A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘loan or’’ and inserting ‘‘grant, 
loan, or’’; 
(ii) by striking clause (i) and inserting 
the following: 
‘‘(i) demonstrate the ability— 
‘‘(I) to furnish, improve in order 
to meet the minimum acceptable level 
of broadband service established under 
subsection (e), or extend broadband 
service to all or part of an unserved 
rural area or an area below the min-
836 
† HR 2642 EAS 
imum acceptable level of broadband 
service established under subsection (e); 
or 
‘‘(II) to carry out a project under 
paragraph (4)(B)(ii);’’; 
(iii) in clause (ii), by striking ‘‘a loan 
application’’ and inserting ‘‘an applica-
tion’’; and 
(iv) in clause (iii)— 
(I) by striking ‘‘the loan applica-
tion’’ and inserting ‘‘the application’’; 
and 
(II) by striking ‘‘proceeds from 
the loan made or guaranteed under 
this section are’’ and inserting ‘‘assist-
ance under this section is’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in the matter preceding clause 
(i)— 
(aa) by striking ‘‘the pro-
ceeds of a loan made or guaran-
teed’’ and inserting ‘‘assistance’’; 
and
837 
† HR 2642 EAS 
(bb) by striking ‘‘for the loan 
or loan guarantee’’ and inserting 
‘‘of the eligible entity’’; 
(II) in clause (i), by striking ‘‘is 
offered broadband service by not more 
than 1 incumbent service provider’’ 
and inserting ‘‘are unserved or have 
service levels below the minimum ac-
ceptable level of broadband service es-
tablished under subsection (e)’’; and 
(III) in clause (ii), by striking 
‘‘3’’ and inserting ‘‘2’’; 
(ii) by striking subparagraph (B) and 
inserting the following: 
‘‘(B) ADJUSTMENTS.— 
‘‘(i) INCREASE.—The Secretary may 
increase the household percentage require-
ment under subparagraph (A)(i) if— 
‘‘(I) more than 25 percent of the 
costs of the project are funded by 
grants made under this section; or 
‘‘(II) the proposed service terri-
tory includes 1 or more communities 
with a population in excess of 20,000.
838 
† HR 2642 EAS 
‘‘(ii) REDUCTION.—The Secretary may 
reduce the household percentage requirement 
under subparagraph (A)(i)— 
‘‘(I) to not less than 15 percent, if 
the proposed service territory does not 
have a population in excess of 5,000 
people; or 
‘‘(II) to not less than 18 percent, 
if the proposed service territory does 
not have a population in excess of 
7,500 people.’’; and 
(iii) in subparagraph (C)— 
(I) in the subparagraph heading, 
by striking ‘‘3’’ and inserting ‘‘2’’; 
(II) in clause (i), by inserting 
‘‘the minimum acceptable level of 
broadband service established under 
subsection (e) in’’ after ‘‘service to’’; 
and 
(III) by striking clause (ii) and 
inserting the following: 
‘‘(ii) EXCEPTIONS.—Clause (i) shall 
not apply if—
839 
† HR 2642 EAS 
‘‘(I) the applicant is eligible for 
funding under another title of this Act; 
or 
‘‘(II) the project is being carried 
out under paragraph (4)(B)(ii), unless 
an incumbent service provider is pro-
viding ultra-high speed service as of 
the date of an application for assist-
ance submitted to the Secretary under 
this section.’’; 
(C) in paragraph (3)— 
(i) in subparagraph (A), by striking 
‘‘loan or’’ and inserting ‘‘grant, loan, or’’; 
and 
(ii) in subparagraph (B), by adding at 
the end the following: 
‘‘(iii) 
INFORMATION.—Information 
submitted under this subparagraph shall 
be— 
‘‘(I) certified by the affected com-
munity, city, county, or designee; and 
‘‘(II) demonstrated on— 
‘‘(aa) the broadband map of 
the affected State if the map con-
tains address-level data; or
845 
† HR 2642 EAS 
‘‘(i) recover funds from loan defaults; 
‘‘(ii)(I) deobligate awards to grantees 
that demonstrate an insufficient level of 
performance (including failure to meet 
build-out 
requirements, 
service 
quality 
issues, or other metrics determined by the 
Secretary) or wasteful or fraudulent spend-
ing; and 
‘‘(II) award those funds, on a competi-
tive basis, to new or existing applicants 
consistent with this section; and 
‘‘(iii) consolidate and minimize over-
lap among the programs; 
‘‘(D) with respect to an application for as-
sistance under this section, shall— 
‘‘(i) promptly post on the website of the 
Rural Utility Service— 
‘‘(I) an announcement that iden-
tifies— 
‘‘(aa) each applicant; 
‘‘(bb) the amount and type of 
support requested by each appli-
cant; and 
‘‘(II) a list of the census block 
groups or proposed service territory, in
880 
† HR 2642 EAS 
(2) in subsection (a), in the matter preceding 
paragraph (1)— 
(A) by striking ‘‘Secretary may’’ and in-
serting ‘‘Secretary shall, acting through the Of-
fice of the Chief Economist,’’; and 
(B) by inserting ‘‘with a history of pro-
viding unbiased, nonpartisan economic analysis 
to Congress’’ after ‘‘subsection (b)’’; 
(3) in subsection (b), by striking ‘‘other research 
institutions’’ and all that follows through ‘‘shall be el-
igible’’ and inserting ‘‘other public research institu-
tions and organizations shall be eligible’’; 
(4) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘, with preference given to policy 
research centers having extensive databases, mod-
els, and demonstrated experience in providing 
Congress with agricultural market projections, 
rural development analysis, agricultural policy 
analysis, and baseline projections at the farm, 
multiregional, national, and international levels, 
including information, analysis, and research re-
lating to drought mitigation,’’ after ‘‘with this 
section’’; and