Farm Security & Rural Investment Act of 2002

116 STAT. 352 PUBLIC LAW 107–171—MAY 13, 2002

TITLE VI—RURAL DEVELOPMENT

Subtitle A—Consolidated Farm and Rural

Development Act

SEC. 6001. ELIGIBILITY OF RURAL EMPOWERMENT ZONES AND RURAL

ENTERPRISE COMMUNITIES FOR DIRECT AND GUARANTEED

LOANS FOR ESSENTIAL COMMUNITY FACILITIES.

Section 306(a)(1) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926(a)(1)) is amended by inserting after the first sentence the following:

‘‘The Secretary may also make or insure loans to communities that have been

designated as rural empowerment zones or rural enterprise communities pursuant to

part I of subchapter U of chapter 1 of the Internal Revenue Code of 1986, or as rural

enterprise communities pursuant to section 766 of the Agriculture, Rural Development,

Food and Drug Administration, and Related Agencies Appropriations Act, 1999

(Public Law 105–277; 112 Stat. 2681, 2681–37), to provide for the installation

or improvement of essential community facilities including necessary related equipment,

and to furnish financial assistance or other aid in planning projects for such purposes.’’.

SEC. 6002. WATER OR WASTE DISPOSAL GRANTS.

Section 306(a)(2) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926(a)(2)) is amended—

(1) by striking ‘‘(2) The’’ and inserting the following:

‘‘(2) WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY

GRANTS.—

‘‘(A) AUTHORITY.—

‘‘(i) IN GENERAL.—The’’;

(2) by striking ‘‘aggregating not to exceed $590,000,000

in any fiscal year’’;

(3) by striking ‘‘The amount’’ and inserting the following:

‘‘(ii) AMOUNT.—The amount’’;

(4) by striking ‘‘paragraph’’ and inserting ‘‘subparagraph’’;

(5) by striking ‘‘The Secretary shall’’ and inserting the

following:

‘‘(iii) GRANT RATE.—The Secretary shall’’; and

(6) by adding at the end the following:

‘‘(B) REVOLVING FUNDS FOR FINANCING WATER AND

WASTEWATER PROJECTS.—

‘‘(i) IN GENERAL.—The Secretary may make grants

to qualified private, nonprofit entities to capitalize

revolving funds for the purpose of providing financing

to eligible entities for—

‘‘(I) predevelopment costs associated with proposed

water and wastewater projects or with

existing water and wastewater systems; and

‘‘(II) short-term costs incurred for replacement

equipment, small-scale extension services, or other small capital

projects that are not part of the regular operations and maintenance

activities of existing water and wastewater systems.

‘‘(ii) ELIGIBLE ENTITIES.—To be eligible to obtain

financing from a revolving fund under clause (i), an

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PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 353

eligible entity must be eligible to obtain a loan, loan

guarantee, or grant under paragraph (1) or this paragraph.

‘‘(iii) MAXIMUM AMOUNT OF FINANCING.—The

amount of financing made to an eligible entity under

this subparagraph shall not exceed—

‘‘(I) $100,000 for costs described in clause (i)(I);

and

‘‘(II) $100,000 for costs described in clause

(i)(II).

‘‘(iv) TERM.—The term of financing provided to

an eligible entity under this subparagraph shall not

exceed 10 years.

‘‘(v) ADMINISTRATION.—The Secretary shall limit

the amount of grant funds that may be used by a

grant recipient for administrative costs incurred under

this subparagraph.

‘‘(vi) ANNUAL REPORT.—A nonprofit entity receiving

a grant under this subparagraph shall submit to the

Secretary an annual report that describes the number

and size of communities served and the type of

financing provided.

‘‘(vii) AUTHORIZATION OF APPROPRIATIONS.—There

are authorized to be appropriated to carry out this

subparagraph $30,000,000 for each of fiscal years 2002

through 2007.’’.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

Section 306(a)(11)(D) of the Consolidated Farm and Rural

Development Act (7 U.S.C. 1926(a)(11)(D)) is amended—

(1) by striking ‘‘$7,500,000’’ and inserting ‘‘$15,000,000’’;

and

(2) by striking ‘‘2002’’ and inserting ‘‘2007’’.

SEC. 6004. CHILD DAY CARE FACILITIES.

Section 306(a)(19) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926(a)(19)) is amended by adding at the end

the following:

‘‘(C) RESERVATION OF FUNDS FOR CHILD DAY CARE

FACILITIES.—

‘‘(i) IN GENERAL.—For each fiscal year, not less

than 10 percent of the funds made available to carry

out this paragraph shall be reserved for grants to

pay the Federal share of the cost of developing and

constructing day care facilities for children in rural

areas.

‘‘(ii) RELEASE.—Funds reserved under clause (i)

for a fiscal year shall be reserved only until April 1 of the fiscal year.’’.

SEC. 6005. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

Section 306(a) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926(a)) is amended by adding at the end the following:

‘‘(22) RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.—

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116 STAT. 354 PUBLIC LAW 107–171—MAY 13, 2002

‘‘(A) IN GENERAL.—The Secretary shall establish a

national rural water and wastewater circuit rider program

that is based on the rural water circuit rider program

of the National Rural Water Association that (as of the

date of enactment of this paragraph) receives funding from

the Secretary, acting through the Rural Utilities Service.

‘‘(B) RELATIONSHIP TO EXISTING PROGRAM.—The program

established under subparagraph (A) shall not affect

the authority of the Secretary to carry out the circuit

rider program for which funds are made available under

the heading ‘‘RURAL COMMUNITY ADVANCEMENT PROGRAM’’

in title III of the Agriculture, Rural Development, Food

and Drug Administration, and Related Agencies Appropriations

Act, 2002 (115 Stat. 719).

‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There is

authorized to be appropriated to carry out this paragraph

$15,000,000 for fiscal year 2003 and each fiscal year thereafter.’’.

SEC. 6006. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

Section 306(a) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926(a)) (as amended by section 6005) is

amended by adding at the end the following:

‘‘(23) MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.—

‘‘(A) GRANTS.—The Secretary shall provide grants to

multijurisdictional regional planning and development

organizations to pay the Federal share of the cost of providing

assistance to local governments to improve the infrastructure,

services, and business development capabilities

of local governments and local economic development

organizations.

‘‘(B) PRIORITY.—In determining which organizations

will receive a grant under this paragraph, the Secretary

shall give priority to an organization that—

‘‘(i) serves a rural area that, during the most recent

5-year period—

‘‘(I) had a net out-migration of inhabitants,

or other population loss, from the rural area that

equals or exceeds 5 percent of the population of

the rural area; or

‘‘(II) had a median household income that is

less than the nonmetropolitan median household

income of the applicable State; and

‘‘(ii) has a history of providing substantive assistance

to local governments and economic development organizations.

‘‘(C) FEDERAL SHARE.—A grant provided under this

paragraph shall be for not more than 75 percent of the

cost of providing assistance described in subparagraph (A).

‘‘(D) MAXIMUM AMOUNT OF GRANTS.—The amount of

a grant provided to an organization under this paragraph

shall not exceed $100,000.

‘‘(E) AUTHORIZATION OF APPROPRIATIONS.—There is

authorized to be appropriated to carry out this paragraph

$30,000,000 for each of fiscal years 2003 through 2007.’’.

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PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 355

SEC. 6007. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT

LOANS.

(a) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL

COMMUNITY FACILITIES LOANS.—Section 306(a) of the Consolidated

Farm and Rural Development Act (7 U.S.C. 1925(a)) (as

amended by section 6006) is amended by adding at the end the following:

‘‘(24) LOAN GUARANTEES FOR WATER, WASTEWATER, AND

ESSENTIAL COMMUNITY FACILITIES LOANS.—

‘‘(A) IN GENERAL.—The Secretary may guarantee a loan made to finance

a community facility or water or waste facility project in a rural area, including

a loan financed by the net proceeds of a bond described in section 142(a)

of the Internal Revenue Code of 1986.

‘‘(B) REQUIREMENTS.—To be eligible for a loan guarantee

under subparagraph (A), an individual or entity offering to purchase

the loan shall demonstrate to the Secretary that the person has—

‘‘(i) the capabilities and resources necessary to service the loan in a manner that

ensures the continued performance of the loan, as determined by the Secretary; and

‘‘(ii) the ability to generate capital to provide borrowers of the loan

with the additional credit necessary to properly service the loan.’’.

(b) LOAN GUARANTEES FOR CERTAIN LOANS.—Section 310B of

the Consolidated Farm and Rural Development Act (7 U.S.C. 1932)

is amended by adding at the end the following:

‘‘(h) LOAN GUARANTEES FOR CERTAIN LOANS.—The Secretary

may guarantee loans made under subsection (a) to finance the

issuance of bonds for the projects described in section 306(a)(24).’’.

SEC. 6008. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY

FACILITIES.

Section 306(a) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926(a)) (as amended by section 6007(a)) is

amended by adding at the end the following:

‘‘(25) TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY

FACILITIES.—

‘‘(A) IN GENERAL.—The Secretary may make grants

to tribal colleges and universities (as defined in section

316 of the Higher Education Act of 1965 (20 U.S.C. 1059c))

to provide the Federal share of the cost of developing

specific tribal college or university essential community

facilities in rural areas.

‘‘(B) FEDERAL SHARE.—

‘‘(i) IN GENERAL.—Except as provided in clauses

(ii) and (iii), the Secretary shall, by regulation, establish

the maximum percentage of the cost of the facility

that may be covered by a grant under this paragraph.

‘‘(ii) MAXIMUM AMOUNT.—The amount of a grant

provided under this paragraph for a facility shall not

exceed 75 percent of the cost of developing the facility.

‘‘(iii) GRADUATED SCALE.—The Secretary shall provide

for a graduated scale of the percentages of the

cost covered by a grant made under this paragraph

that provides higher percentages for facilities in

Regulation.

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116 STAT. 356 PUBLIC LAW 107–171—MAY 13, 2002

communities that have lower community population

and income levels, as determined by the Secretary.

‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There is

authorized to be appropriated to carry out this paragraph

$10,000,000 for each of fiscal years 2003 through 2007.’’.

SEC. 6009. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE

GRANT PROGRAM.

Section 306A of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926a) is amended—

(1) in the section heading, by inserting ‘‘AND IMMINENT’’

after ‘‘EMERGENCY’’;

(2) in subsection (a)—

(A) in paragraph (1), by inserting ‘‘, or when such

a decline is imminent’’ before the semicolon at the end; and

(B) in paragraph (2)—

(i) in subparagraph (A), by striking ‘‘acute’’ and

inserting ‘‘acute, or imminent,’’; and

(ii) in subparagraph (B), by striking ‘‘decline’’ and

inserting ‘‘decline, or imminent decline,’’;

(3) in subsection (c)(2), by striking ‘‘occurred’’ and inserting

‘‘occurred, or will occur,’’;

(4) in subsection (d), by striking paragraph (1) and inserting

the following:

‘‘(1) IN GENERAL.—Grants made under this section may

be used—

‘‘(A) for waterline extensions from existing systems,

laying of new waterlines, repairs, significant maintenance,

digging of new wells, equipment replacement, and hook

and tap fees;

‘‘(B) for any other appropriate purpose associated with

developing sources of, treating, storing, or distributing water;

‘‘(C) to assist communities in complying with the

requirements of the Federal Water Pollution Control Act

(33 U.S.C. 1251 et seq.) or the Safe Drinking Water Act

(42 U.S.C. 300f et seq.); and

‘‘(D) to provide potable water to communities through

other means.’’;

(5) in subsection (f)(2), by striking ‘‘$75,000’’ and inserting

‘‘$150,000’’;

(6) in subsection (h)—

(A) in the second sentence of paragraph (1), by striking

‘‘decline’’ and inserting ‘‘decline, or imminent decline,’’; and

(B) by striking paragraph (2) and inserting the following:

‘‘(2) TIMING OF REVIEW OF APPLICATIONS.—

‘‘(A) SIMPLIFIED APPLICATION.—The application process

developed by the Secretary under paragraph (1) shall include

a simplified application form that will permit expedited consideration

of an application for a grant filed under this section.

‘‘(B) PRIORITY REVIEW.—In processing applications for

any water or waste grant or loan authorized under this

title, the Secretary shall afford priority processing to an

application for a grant under this section to the extent

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PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 357

funds will be available for an award on the application

at the conclusion of priority processing.

‘‘(C) TIMING.—The Secretary shall, to the maximum

extent practicable, review and act on an application under

this section within 60 days after the date on which the

application is submitted to the Secretary.’’; and

(7) by striking subsection (i) and inserting the following:

‘‘(i) FUNDING.—

‘‘(1) RESERVATION.—

‘‘(A) IN GENERAL.—For each fiscal year, not less than

3 nor more than 5 percent of the total amount made available

to carry out section 306(a)(2) for the fiscal year shall

be reserved for grants under this section.

‘‘(B) RELEASE.—Funds reserved under subparagraph

(A) for a fiscal year shall be reserved only until July 1 of

the fiscal year.

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to

funds made available under paragraph (1), there is authorized

to be appropriated to carry out this section $35,000,000 for

each of fiscal years 2003 through 2007.’’.

SEC. 6010. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN

TRIBES.

Section 306C of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1926c) is amended by striking subsection (e) and

inserting the following:

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), there are

authorized to be appropriated—

‘‘(A) for grants under this section, $30,000,000 for each

fiscal year;

‘‘(B) for loans under this section, $30,000,000 for each

fiscal year; and

‘‘(C) in addition to grants provided under subparagraph

(A), for grants under this section to benefit Indian tribes

(as defined in section 4 of the Indian Self-Determination

and Education Assistance Act (25 U.S.C. 450b)),

$20,000,000 for each fiscal year.

‘‘(2) EXCEPTION.—An entity eligible to receive funding

through a grant made under section 306D shall not be eligible

for a grant from funds made available under paragraph (1)(C).’’.

SEC. 6011. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE

VILLAGES IN ALASKA.

Section 306D(d)(1) of the Consolidated Farm and Rural

Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking

‘‘and 2002’’ and inserting ‘‘through 2007’’.

SEC. 6012. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE

CONSTRUCTION, REFURBISHING, AND SERVICING OF

INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS

IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR

MODERATE INCOMES.

116 STAT. 358 PUBLIC LAW 107–171—MAY 13, 2002

(a) IN GENERAL.—The Consolidated Farm and Rural Development

Act is amended by inserting after section 306D (7 U.S.C.

1926d) the following:

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‘‘SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE

CONSTRUCTION, REFURBISHING, AND SERVICING OF

INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS

IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR

MODERATE INCOMES.

‘‘(a) DEFINITION OF ELIGIBLE INDIVIDUAL.—In this section, the

term ‘eligible individual’ means an individual who is a member

of a household the members of which have a combined income

(for the most recent 12-month period for which the information

is available) that is not more than 100 percent of the median

nonmetropolitan household income for the State or territory in

which the individual resides, according to the most recent decennial

census of the United States.

‘‘(b) GRANTS.—

‘‘(1) IN GENERAL.—The Secretary may make grants to private

nonprofit organizations for the purpose of providing loans

to eligible individuals for the construction, refurbishing, and

servicing of individual household water well systems in rural

areas that are or will be owned by the eligible individuals.

‘‘(2) TERMS OF LOANS.—A loan made with grant funds under

this section—

‘‘(A) shall have an interest rate of 1 percent;

‘‘(B) shall have a term not to exceed 20 years; and

‘‘(C) shall not exceed $8,000 for each water well system

described in paragraph (1).

‘‘(3) ADMINISTRATIVE EXPENSES.—A recipient of a grant

made under this section may use grant funds to pay administrative

expenses associated with providing the assistance described

in paragraph (1), as determined by the Secretary.

‘‘(c) PRIORITY IN AWARDING GRANTS.—In awarding grants under this section,

the Secretary shall give priority to an applicant that has substantial expertise

and experience in promoting the safe and productive use of individually-owned

household water well systems and ground water.

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section $10,000,000 for each

of fiscal years 2003 through 2007.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

takes effect on October 1, 2002.

SEC. 6013. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY

SYSTEMS.

Section 310B(a)(3) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1932(a)(3)) is amended by inserting ‘‘and other renewable

energy systems (including wind energy systems and anaerobic digestors

for the purpose of energy generation)’’ after ‘‘solar energy systems’’.

SEC. 6014. RURAL BUSINESS ENTERPRISE GRANTS.

Section 310B(c)(1) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1932(c)(1)) is amended—

PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 359

(1) by striking ‘‘(1) IN GENERAL.—The Secretary’’ and

inserting the following:

‘‘(1) GRANTS.—

‘‘(A) IN GENERAL.—The Secretary’’; and

(2) by adding at the end the following:

‘‘(B) SMALL AND EMERGING PRIVATE BUSINESS ENTERPRISES.—

‘‘(i) IN GENERAL.—For the purpose of subparagraph

(A), a small and emerging private business enterprise

shall include (regardless of the number of employees

or operating capital of the enterprise) an eligible nonprofit

entity, or other tax-exempt organization, with

a principal office in an area that is located—

‘‘(I) on land of an existing or former Native

American reservation; and

‘‘(II) in a city, town, or unincorporated area

that has a population of not more than 5,000

inhabitants.

‘‘(ii) USE OF GRANT.—An eligible nonprofit entity,

or other tax exempt organization, described in clause

(i) may use assistance provided under this paragraph

to create, expand, or operate value-added processing

in an area described in clause (i) in connection with

production agriculture.

‘‘(iii) PRIORITY.—In making grants under this paragraph,

the Secretary shall give priority to grants that

will be used to provide assistance to eligible nonprofit

entities and other tax exempt organizations described

in clause (i).’’.

SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

Section 310B(e) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1932(e)) is amended—

(1) in paragraph (5)(F), before the period at the end the

following: ‘‘, except that the Secretary shall not require non-

Federal financial support in an amount that is greater than

5 percent in the case of a 1994 institution (as defined in

section 532 of the Equity in Educational Land-Grant Status

Act of 1994 (7 U.S.C. 301 note; Public Law 103–382))’’; and

(2) in paragraph (9), by striking ‘‘2002’’ and inserting

‘‘2007’’.

SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

Section 310B(f) of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1932(f)) is amended by adding at the end the following:

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this subsection $5,000,000

for each of fiscal years 2002 through 2007.’’.

SEC. 6017. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

Section 310B of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1932) is amended by striking subsection (g) and

inserting the following:

116 STAT. 360 PUBLIC LAW 107–171—MAY 13, 2002

‘‘(g) BUSINESS AND INDUSTRY DIRECT AND GUARANTEED

LOANS.—

‘‘(1) DEFINITION OF BUSINESS AND INDUSTRY LOAN.—In this

subsection, the term ‘business and industry loan’ means a business

and industry direct or guaranteed loan that is made or

guaranteed by the Secretary under subsection (a)(1).

‘‘(2) LOAN GUARANTEES FOR THE PURCHASE OF COOPERATIVE

STOCK.—

‘‘(A) IN GENERAL.—The Secretary may guarantee a

business and industry loan to individual farmers or

ranchers for the purpose of purchasing capital stock of

a farmer or rancher cooperative established for the purpose

of processing an agricultural commodity.

‘‘(B) PROCESSING CONTRACTS DURING INITIAL PERIOD.—

A cooperative described in subparagraph (A) for which

a farmer or rancher receives a guarantee to purchase stock

under subparagraph (A) may contract for services to process

agricultural commodities, or otherwise process value-added

agricultural products, during the 5-year period beginning

on the date of the startup of the cooperative in order

to provide adequate time for the planning and construction

of the processing facility of the cooperative.

‘‘(C) FINANCIAL INFORMATION.—Financial information

required by the Secretary from a farmer or rancher as

a condition of making a business and industry loan guarantee

under this paragraph shall be provided in the manner

generally required by commercial agricultural lenders in

the area.

‘‘(3) LOANS TO COOPERATIVES.—

‘‘(A) IN GENERAL.—The Secretary may make or guarantee

a business and industry loan to a cooperative

organization that is headquartered in a metropolitan area

if the loan is used for a project or venture described in

subsection (a) that is located in a rural area or a loan

guarantee that meets the requirements of paragraph (6).

‘‘(B) REFINANCING.—A cooperative organization that is

eligible for a business and industry loan shall be eligible

to refinance an existing business and industry loan with

a lender if—

‘‘(i) the cooperative organization—

‘‘(I) is current and performing with respect

to the existing loan; and

‘‘(II) is not, and has not been, in payment

default, or the collateral of which has not been

converted, with respect to the existing loan; and

‘‘(ii) there is adequate security or full collateral

for the refinanced loan.

‘‘(4) LOAN APPRAISALS.—The Secretary may require that

any appraisal made in connection with a business and industry

loan be conducted by a specialized appraiser that uses standards

that are similar to standards used for similar purposes

in the private sector, as determined by the Secretary.

‘‘(5) FEES.—The Secretary may assess a 1-time fee for any

guaranteed business and industry loan in an amount that does

PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 361

not exceed 2 percent of the guaranteed principal portion of

the loan.

‘‘(6) LOAN GUARANTEES IN NONRURAL AREAS.—

‘‘(A) IN GENERAL.—The Secretary may guarantee a

business and industry loan to a cooperative organization

for a facility that is not located in a rural area if—

‘‘(i) the primary purpose of the loan guarantee

is for a facility to provide value-added processing for

agricultural producers that are located within 80 miles

of the facility;

‘‘(ii) the applicant demonstrates to the Secretary

that the primary benefit of the loan guarantee will

be to provide employment for residents of a rural area;

and

‘‘(iii) the total amount of business and industry

loans guaranteed for a fiscal year under this paragraph

does not exceed 10 percent of the business and industry

loans guaranteed for the fiscal year under subsection

(a)(1).

‘‘(B) PRINCIPAL AMOUNTS.—The principal amount of a

business and industry loan guaranteed under this paragraph

may not exceed $25,000,000.

‘‘(7) INTANGIBLE ASSETS.—In determining whether a

cooperative organization is eligible for a guaranteed business

and industry loan, the Secretary may consider the market

value of a properly appraised brand name, patent, or trademark

of the cooperative.

‘‘(8) LIMITATIONS ON LOAN GUARANTEES FOR COOPERATIVE

ORGANIZATIONS.—

‘‘(A) PRINCIPAL AMOUNT.—

‘‘(i) IN GENERAL.—Subject to clause (ii), the principal

amount of a business and industry loan made to a cooperative organization

and guaranteed under this subsection shall not exceed $40,000,000.

‘‘(ii) USE.—To be eligible for a guarantee under

this subsection for a business and industry loan made

to a cooperative organization, the principal amount

of the any such loan in excess of $25,000,000 shall

be used to carry out a project—

‘‘(I) in a rural area; and

‘‘(II) that provides for the value-added processing

of agricultural commodities.

‘‘(B) APPLICATIONS.—If a cooperative organization submits

an application for a guarantee under this subsection

of a business and industry loan with a principal amount

that is in excess of $25,000,000, the Secretary—

‘‘(i) shall review and, if appropriate, approve the

application; and

‘‘(ii) may not delegate the approval authority.

‘‘(C) MAXIMUM AMOUNT.—The total amount of business

and industry loans made to cooperative organizations and

guaranteed for a fiscal year under this subsection with

principal amounts that are in excess of $25,000,000 may

not exceed 10 percent of the business and industry loans

guaranteed for the fiscal year under subsection (a)(1).’’.

116 STAT. 362 PUBLIC LAW 107–171—MAY 13, 2002

SEC. 6018. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR

OTHER PURPOSES.

Subtitle A of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1921 et seq.) (as amended by section 5006) is amended

by adding at the end the following:

‘‘SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR

OTHER PURPOSES.

‘‘If, after making a loan or a grant described in section 381E(d),

the Secretary determines that the circumstances under which the

loan or grant was made have sufficiently changed to make the

project or activity for which the loan or grant was made available

no longer appropriate, the Secretary may allow the loan borrower

or grant recipient to use property (real and personal) purchased

or improved with the loan or grant funds, or proceeds from the

sale of property (real and personal) purchased with such funds,

for another project or activity that (as determined by the Secretary)—

‘‘(1) will be carried out in the same area as the original

project or activity;

‘‘(2) meets the criteria for a loan or a grant described

in section 381E(d); and

‘‘(3) satisfies such additional requirements as are established

by the Secretary.’’.

SEC. 6019. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

Section 333A of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1983a) (as amended by section 5307) is amended

by striking subsection (g) and inserting the following:

‘‘(g) 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—

‘‘(A) farmer program loans the principal amount of

which is $125,000 or less; and

‘‘(B) business and industry guaranteed loans under

section 310B(a)(1) the principal amount of which is—

‘‘(i) in the case of a loan guarantee made during

fiscal year 2002 or 2003, $400,000 or less; and

‘‘(ii) in the case of a loan guarantee made during

any subsequent fiscal year—

‘‘(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 practicable, the processing of

applications for water and waste disposal grants or direct or

guaranteed loans under paragraph (1) or (2) of section 306(a)

the grant award amount or principal loan amount, respectively,

of which is $300,000 or less.

‘‘(3) ADMINISTRATION.—In developing an application under

PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 363

this subsection, the Secretary shall—

‘‘(A) consult with commercial and cooperative lenders;

and

‘‘(B) ensure that—

‘‘(i) the form can be completed manually or electronically,

at the option of the lender;

‘‘(ii) the form minimizes the documentation

required to accompany the form;

‘‘(iii) the cost of completing and processing the

form is minimal; and

‘‘(iv) the form can be completed and processed in

an expeditious manner.’’.

SEC. 6020. DEFINITION OF RURAL AND RURAL AREA.

(a) IN GENERAL.—Section 343(a) of the Consolidated Farm and

Rural Development Act (7 U.S.C. 1991(a)) is amended by adding

at the end the following:

‘‘(13) RURAL AND RURAL AREA.—

‘‘(A) IN GENERAL.—Except as otherwise provided in

this paragraph, the terms ‘rural’ and ‘rural area’ mean

any area other than—

‘‘(i) a city or town that has a population of greater

than 50,000 inhabitants; and

‘‘(ii) the urbanized area contiguous and adjacent

to such a city or town.

‘‘(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT

AND GUARANTEED LOANS.—For the purpose of water and

waste disposal grants and direct and guaranteed loans

provided under paragraphs (1), (2), and (24) of section

306(a), the terms ‘rural’ and ‘rural area’ mean a city, town,

or unincorporated area that has a population of no more

than 10,000 inhabitants.

‘‘(C) COMMUNITY FACILITY LOANS AND GRANTS.—For the

purpose of community facility direct and guaranteed loans

and grants under paragraphs (1), (19), (20), (21), and (24)

of section 306(a), the terms ‘rural’ and ‘rural area’ mean

a city, town, or unincorporated area that has a population

of not more than 20,000 inhabitants.

‘‘(D) MULTIJURISDICTIONAL REGIONAL PLANNING

ORGANIZATIONS; NATIONAL RURAL DEVELOPMENT PARTNERSHIP.—

In sections 306(a)(23) and 378, the term ‘rural area’

means—

‘‘(i) all the territory of a State that is not within

the boundary of any standard metropolitan statistical

area; and

‘‘(ii) all territory within any standard metropolitan

statistical area within a census tract having a population

density of less than 20 persons per square mile,

as determined by the Secretary according to the most

recent census of the United States as of any date.

‘‘(E) RURAL BUSINESS INVESTMENT PROGRAM.—In subtitle

H, the term ‘rural area’ means an area that is

located—

‘‘(i) outside a standard metropolitan statistical

116 STAT. 364 PUBLIC LAW 107–171—MAY 13, 2002

area; or

‘‘(ii) within a community that has a population

of 50,000 inhabitants or less.’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 306(a) of the Consolidated Farm and Rural

Development Act (7 U.S.C. 1926(a)) is amended by striking

paragraph (7).

(2) Section 381A of the Consolidated Farm and Rural

Development Act (7 U.S.C. 2009) is amended—

(A) by striking paragraph (1); and

(B) by redesignating paragraphs (2) and (3) as paragraphs

(1) and (2), respectively.

(3) Section 735 of the Agriculture, Rural Development,

Food and Drug Administration, and Related Agencies Appropriations

Act, 1999 (112 Stat. 2681–29) is repealed.

SEC. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

Subtitle D of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1981 et seq.) (as amended by section 5321) is amended

by adding at the end the following:

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‘‘SEC. 378. NATIONAL 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 Federal law, or administers a

program, targeted at or having a significant impact on rural areas.

‘‘(2) COORDINATING COMMITTEE.—The term ‘Coordinating

Committee’ means the National Rural Development Coordinating

Committee established by subsection (c).

‘‘(3) PARTNERSHIP.—The term ‘Partnership’ means the National Rural

Development Partnership continued by subsection (b).

‘‘(4) STATE RURAL DEVELOPMENT COUNCIL.—The term ‘State

rural development council’ means a State rural development

council that meets the requirements of subsection (d).

‘‘(b) PARTNERSHIP.—

‘‘(1) IN GENERAL.—The Secretary shall continue the

National Rural Development Partnership composed of—

‘‘(A) the Coordinating Committee; and

‘‘(B) State rural development councils.

‘‘(2) PURPOSES.—The purposes of the Partnership are to empower and

build the capacity of States and rural communities to design flexible and

innovative responses to their own special rural development needs, with local

determinations of progress and selection of projects and activities.

‘‘(3) GOVERNING PANEL.—

‘‘(A) IN GENERAL.—A panel consisting of representatives of the Coordinating

Committee and State rural development councils shall be established to lead

and coordinate the strategic operation, policies, and practices of the Partnership.

‘‘(B) ANNUAL REPORTS.—In conjunction with the Coordinating Committee and State

rural development councils, the panel shall prepare and submit to Congress an annual

report on the activities of the Partnership.

‘PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 365

‘(4) ROLE OF FEDERAL GOVERNMENT.—The role of the Federal

Government in the Partnership may be that of a partner

and facilitator, with Federal agencies 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 strategies to meet local needs;

‘‘(C) to ensure that the head of each agency with rural

responsibilities designates a senior-level agency official to

represent the agency on the Coordinating Committee and

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, the Coordinating

Committee and State rural development councils.

‘‘(c) NATIONAL RURAL DEVELOPMENT COORDINATING COMMITTEE.—

Establishment.

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‘‘(1) ESTABLISHMENT.—The Secretary shall establish a

National Rural Development Coordinating Committee within

the Department of Agriculture.

‘‘(2) COMPOSITION.—The Coordinating Committee shall be

composed of—

‘‘(A) 1 representative of each agency with rural responsibilities;

and

‘‘(B) representatives, approved by the Secretary, of—

‘‘(i) national associations of State, regional, local,

and tribal governments and intergovernmental and

multijurisdictional agencies and organizations;

‘‘(ii) national public interest groups;

‘‘(iii) other national nonprofit organizations that

elect to participate in the activities of the Coordinating

Committee; and

‘‘(iv) the private sector.

‘‘(3) DUTIES.—The Coordinating Committee shall—

‘‘(A) support the work of the State rural development

councils;

‘‘(B) facilitate coordination of rural development policies,

programs, and activities among Federal agencies and

with those of State, local, and tribal governments, the

private sector, and nonprofit organizations;

‘‘(C) review and comment on policies, regulations, and

proposed legislation that affect or would affect rural areas

and gather and provide related information;

‘‘(D) develop and facilitate strategies to reduce or eliminate

administrative and regulatory impediments; and

‘‘(E) require each State rural development council

receiving funds under this section to submit an annual

report on the use of the funds, including a description

of strategic plans, goals, performance measures, and outcomes

for the State rural development council of the State.

‘‘(4) FEDERAL PARTICIPATION IN COORDINATING COMMITTEE.—

‘‘(A) IN GENERAL.—A Federal employee shall fully

participate in the governance and operations of the Coordinating

Committee, including activities related to grants,

contracts, and other agreements, in accordance with this

section.

‘‘(B) CONFLICTS.—Participation by a Federal employee

in the Coordinating Committee in accordance with this

paragraph shall not constitute a violation of section 205

or 208 of title 18, United States Code.

‘‘(5) ADMINISTRATIVE SUPPORT.—The Secretary may provide

such administrative support for the Coordinating Committee

as the Secretary determines is necessary to carry out the duties

of the Coordinating Committee.

‘‘(6) PROCEDURES.—The Secretary may prescribe such regulations,

bylaws, or other procedures as are necessary for the

operation of the Coordinating Committee.

‘‘(d) STATE RURAL DEVELOPMENT COUNCILS.—

‘‘(1) ESTABLISHMENT.—Notwithstanding chapter 63 of title

31, United States Code, each State may elect to participate

in the Partnership by entering 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 Federal, State,

local, and tribal governments, nonprofit organizations,

regional organizations, the private sector, and other entities

committed to rural advancement; and

‘‘(B) have a nonpartisan and nondiscriminatory membership

that—

‘‘(i) is broad and representative of the economic,

social, and political diversity of the State; and

‘‘(ii) shall be responsible for the governance and

operations of the State rural development council.

‘‘(3) DUTIES.—A State rural development council shall—

‘‘(A) facilitate collaboration among Federal, State, local,

and tribal governments and the private and nonprofit sectors

in the planning and implementation of programs and

policies that have an impact on rural areas of the State;

‘‘(B) monitor, report, and comment on policies and programs

that address, or fail to address, the needs of the

rural areas of the State;

‘‘(C) as part of the Partnership, in conjunction with

the Coordinating Committee, facilitate the development of

strategies to reduce or eliminate conflicting or duplicative

administrative or regulatory requirements of Federal,

State, local, and tribal governments; and

‘‘(D)(i) provide to the Coordinating Committee an

annual plan with goals and performance measures; and

‘‘(ii) submit to the Coordinating Committee an annual

report on the progress of the State rural development

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 Agriculture, 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 activities related to grants,

contracts, and other agreements in accordance with this

section) on an equal basis with other members of the State

rural development councils.

‘‘(B) CONFLICTS.—Participation by a Federal 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.

‘‘(e) ADMINISTRATIVE SUPPORT OF THE PARTNERSHIP.—

‘‘(1) DETAIL OF EMPLOYEES.—

‘‘(A) IN GENERAL.—In order to provide experience 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 Secretary

for the support of the Partnership 1 or more

employees of the agency with rural responsibilities without

reimbursement for a period of up to 1 year.

‘‘(B) CIVIL SERVICE STATUS.—The detail shall be without

interruption or loss of civil service status or privilege.

‘‘(2) ADDITIONAL SUPPORT.—The Secretary may provide for

any additional support staff to the Partnership 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 administering the financial assistance available to

the State rural development council.

‘‘(f) MATCHING REQUIREMENTS FOR STATE RURAL DEVELOPMENT

COUNCILS.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

a State rural development council shall provide matching funds,

or in-kind goods or services, to support the activities of the

State rural development council in an amount that is not less

than 33 percent of the amount of Federal funds received from

a Federal agency under subsection (g)(2).

‘‘(2) EXCEPTIONS TO MATCHING REQUIREMENT FOR CERTAIN

FEDERAL FUNDS.—Paragraph (1) shall not apply to funds,

grants, funds provided under contracts or cooperative agreements,

gifts, contributions, or technical assistance received by

a State rural development council from a Federal agency that

are used—

‘‘(A) to support 1 or more specific program or project

activities; or

‘‘(B) to reimburse the State rural development council

for services provided to the Federal agency providing the

funds, grants, funds provided 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.

‘‘(g) FUNDING.—

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section $10,000,000

for each of fiscal years 2003 through 2007.

116 STAT. 368 PUBLIC LAW 107–171—MAY 13, 2002

‘‘(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 the Coordinating Committee

or a State rural development council in order to

carry out the purposes of this section, a Federal agency

may make grants, gifts, or contributions to, provide technical

assistance to, or enter into contracts or cooperative

agreements with, the Coordinating Committee or a State

rural development council.

‘‘(B) ASSISTANCE.—Federal agencies are encouraged to

use funds made available for programs that have an impact

on rural areas to provide assistance to, and enter into

contracts with, the Coordinating Committee or a State

rural development council, as described in subparagraph

(A).

‘‘(3) CONTRIBUTIONS.—The Coordinating Committee and a

State rural development council may accept private contributions.

‘‘(h) TERMINATION.—The authority provided under this section

shall terminate on the date that is 5 years after the date of enactment

of this section.’’.

SEC. 6022. RURAL TELEWORK.

Subtitle D of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1981 et seq.) (as amended by section 6021) is amended

by adding at the end the following:

‘‘SEC. 379. RURAL TELEWORK.

‘‘(a) DEFINITIONS.—In this section:

‘‘(1) ELIGIBLE ORGANIZATION.—The term ‘eligible organization’

means a nonprofit entity, an educational institution, an

Indian tribe (as defined in section 4 of the Indian Self-Determination

and Education Assistance Act (25 U.S.C. 450b)), or

any other organization, in a rural area (except for the institute),

that meets the requirements of this section and such other

requirements as are established by the Secretary.

‘‘(2) INSTITUTE.—The term ‘institute’ means a rural

telework institute established using a grant under subsection (b).

‘‘(3) TELEWORK.—The term ‘telework’ means the use of

telecommunications to perform work functions at a rural work

center located outside the place of business of an employer.

‘‘(b) RURAL TELEWORK INSTITUTE.—

‘‘(1) IN GENERAL.—The Secretary shall make 1 or more

grants to an eligible organization to pay the Federal share

of the cost of establishing and operating a national rural

telework institute to carry out projects described in paragraph

(2).

‘‘(2) PROJECTS.—The institute shall use grant funds

received under this subsection to carry out a 5-year project—

‘‘(A) to serve as a clearinghouse for telework research

and development;

‘‘(B) to conduct outreach to rural communities and

rural workers;

PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 369

‘‘(C) to develop and share best practices in rural

telework throughout the United States;

‘‘(D) to develop innovative, market-driven telework

projects and joint ventures with the private sector that

employ workers in rural areas in jobs that promote economic

self-sufficiency;

‘‘(E) to share information about the design and

implementation of telework arrangements;

‘‘(F) to support private sector businesses that are

transitioning to telework;

‘‘(G) to support and assist telework projects and

individuals at the State and local level; and

‘‘(H) to perform such other functions as the Secretary

considers appropriate.

‘‘(3) NON-FEDERAL SHARE.—

‘‘(A) IN GENERAL.—As a condition of receiving a grant

under this subsection, an eligible organization shall agree

to obtain, after the application of the eligible organization

has been approved and notice of award has been issued,

contributions from non-Federal sources that are equal to—

‘‘(i) during each of the first, second, and third

years of a project, 30 percent of the amount of the

grant; and

‘‘(ii) during each of the fourth and fifth years of

the project, 50 percent of the amount of the grant.

‘‘(B) INDIAN TRIBES.—Notwithstanding subparagraph

(A), an Indian tribe may use any Federal funds made

available to the Indian tribe for self-governance to pay

the non-Federal contributions required under subparagraph

(A).

‘‘(C) FORM.—The non-Federal contributions required

under subparagraph (A) may be in the form of in-kind

contributions, including office equipment, office space, computer

software, consultant services, computer networking

equipment, and related services.

‘‘(c) TELEWORK GRANTS.—

‘‘(1) IN GENERAL.—Subject to paragraphs (2) through (5),

the Secretary shall make grants to eligible organizations to

pay the Federal share of the cost of—

‘‘(A) obtaining equipment and facilities to establish

or expand telework locations in rural areas; and

‘‘(B) operating telework locations in rural areas.

‘‘(2) APPLICATIONS.—To be eligible to receive a grant under

this subsection, an eligible organization shall submit to the

Secretary, and receive the approval of the Secretary of, an

application for the grant that demonstrates that the eligible

organization has adequate resources and capabilities to establish

or expand a telework location in a rural area.

‘‘(3) NON-FEDERAL SHARE.—

‘‘(A) IN GENERAL.—As a condition of receiving a grant under this

subsection, an eligible organization shall agree to obtain, after the

application of the eligible organization has been approved and notice

of award has been issued, contributions from non-Federal sources that

are equal to 50 percent of the amount of the grant.

116 STAT. 370 PUBLIC LAW 107–171—MAY 13, 2002

‘‘(B) INDIAN TRIBES.—Notwithstanding subparagraph

(A), an Indian tribe may use Federal funds made available

to the tribe for self-governance to pay the non-Federal

contributions required under subparagraph (A).

‘‘(C) SOURCES.—The non-Federal contributions required

under subparagraph (A)—

‘‘(i) may be in the form of in-kind contributions,

including office equipment, office space, computer software,

consultant services, computer networking equipment,

and related services; and

‘‘(ii) may not be made from funds made available

for community development block grants under title

I of the Housing and Community Development Act

of 1974 (42 U.S.C. 5301 et seq.).

‘‘(4) DURATION.—The Secretary may not provide a grant

under this subsection to expand or operate a telework location

in a rural area after the date that is 3 years after the establishment

of the telework location.

‘‘(5) AMOUNT.—The amount of a grant provided to an

eligible organization under this subsection shall be not less

than $1,000,000 and not more than $2,000,000.

‘‘(d) APPLICABILITY OF CERTAIN FEDERAL LAW.—An eligible

organization that receives funds under this section shall be subject

to the provisions of Federal law (including regulations) administered

by the Secretary of Labor or the Equal Employment Opportunity

Commission that govern the responsibilities of employers to

employees.

‘‘(e) REGULATIONS.—Not later than 180 days after the date

of enactment of this section, the Secretary shall promulgate regulations

to carry out this section.

‘‘(f) AUTHORIZATION OF APPROPRIATION.—There is authorized

to be appropriated to carry out this section $30,000,000 for each

of fiscal years 2002 through 2007, of which $5,000,000 shall be

provided to establish and support an institute under subsection

(b).’’.

SEC. 6023. HISTORIC BARN PRESERVATION.

Subtitle D of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is amended

by adding at the end the following:

‘‘SEC. 379A. HISTORIC BARN PRESERVATION.

‘‘(a) DEFINITIONS.—In this section:

‘‘(1) BARN.—The term ‘barn’ means a building (other than

a dwelling) on a farm, ranch, or other agricultural operation

for—

‘‘(A) housing animals;

‘‘(B) storing or processing crops;

‘‘(C) storing and maintaining agricultural equipment;

or

‘‘(D) serving an essential or useful purpose related

to agricultural activities conducted on the adjacent land.

‘‘(2) ELIGIBLE APPLICANT.—The term ‘eligible applicant’ means—

PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 371

‘‘(A) a State department of agriculture (or a designee);

‘‘(B) a national or State nonprofit organization that—

‘‘(i) is described in section 501(c)(3) of the Internal

Revenue Code of 1986 and exempt from taxation under

section 501(a) of such Code; and

‘‘(ii) has experience or expertise, as determined

by the Secretary, in the identification, evaluation,

rehabilitation, preservation, or protection of historic

barns; and

‘‘(C) a State historic preservation office.

‘‘(3) HISTORIC BARN.—The term ‘historic barn’ means a

barn that—

‘‘(A) is at least 50 years old;

‘‘(B) retains sufficient integrity of design, materials,

and construction to clearly identify the barn as an agricultural

building; and

‘‘(C) meets the criteria for listing on National, State,

or local registers or inventories of historic structures.

‘‘(4) SECRETARY.—The term ‘Secretary’ means the Secretary,

acting through the Under Secretary of Rural Development.

‘‘(b) PROGRAM.—The Secretary shall establish a historic barn

preservation program—

‘‘(1) to assist States in developing a list of historic barns;

‘‘(2) to collect and disseminate information on historic

barns;

‘‘(3) to foster educational programs relating to the history,

construction techniques, rehabilitation, and contribution to

society of historic barns; and

‘‘(4) to sponsor and conduct research on—

‘‘(A) the history of barns; and

‘‘(B) best practices to protect and rehabilitate historic

barns from the effects of decay, fire, arson, and natural

disasters.

‘‘(c) GRANTS.—

‘‘(1) IN GENERAL.—The Secretary may make grants to, or

enter into contracts or cooperative agreements with, eligible

applicants to carry out an eligible project under paragraph

(2).

‘‘(2) ELIGIBLE PROJECTS.—A grant under this subsection

may be made to an eligible applicant for a project—

‘‘(A) to rehabilitate or repair a historic barn;

‘‘(B) to preserve a historic barn through—

‘‘(i) the installation of a fire protection system,

including fireproofing or fire detection system and

sprinklers; and

‘‘(ii) the installation of a system to prevent vandalism;

and

‘‘(C) to identify, document, and conduct research on

a historic barn to develop and evaluate appropriate techniques

or best practices for protecting historic barns.

‘‘(3) REQUIREMENTS.—An eligible applicant that receives

a grant for a project under this subsection shall comply with

any standards established by the Secretary of the Interior

for historic preservation projects.

‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There are

authorized to be appropriated such sums as are necessary to

carry out this section for each of fiscal years 2002 through

2007.’’.

SEC. 6024. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

Subtitle D of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1981 et seq.) (as amended by section 6023)) is amended

by adding at the end the following:

‘‘SEC. 379B. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

‘‘(a) IN GENERAL.—The Secretary, acting through the Administrator

of the Rural Utilities Service, may make grants to public

and nonprofit entities, and borrowers of loans made by the Rural

Utilities Service, for the Federal share of the cost of acquiring

radio transmitters to increase coverage of rural areas by the all

hazards weather radio broadcast system of the National Oceanic

and Atmospheric Administration.

‘‘(b) ELIGIBILITY.—To be eligible for a grant under this section,

an applicant shall provide to the Secretary—

‘‘(1) a binding commitment from a tower owner to place

the transmitter on a tower; and

‘‘(2) a description of how the tower placement will increase

coverage of a rural area by the all hazards weather radio

broadcast system of the National Oceanic and Atmospheric

Administration.

‘‘(c) FEDERAL SHARE.—A grant provided under this section shall

be not more than 75 percent of the total cost of acquiring a radio

transmitter, as described in subsection (a).

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as are necessary to carry out this

section for each of fiscal years 2002 through 2007.’’.

SEC. 6025. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES

AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS

NECESSARY FOR HIGHER VALUE CROPS.

Subtitle D of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1981 et seq.) (as amended by section 6024) is amended

by adding at the end the following:

‘‘SEC. 379C. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES

AND TO TRAIN FARM WORKERS IN SPECIALIZED

SKILLS NECESSARY FOR HIGHER VALUE CROPS.

‘‘(a) IN GENERAL.—The Secretary shall make grants to nonprofit

organizations, or to a consortium of nonprofit organizations, agribusinesses,

State and local governments, agricultural labor

organizations, farmer or rancher cooperatives, and community based

organizations with the capacity to train farm workers.

‘‘(b) USE OF FUNDS.—An entity to which a grant is made under

this section shall use the grant to train farm workers to use new

technologies and develop specialized skills for agricultural development.

‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

PUBLIC LAW 107–171—MAY 13, 2002 116 STAT. 373

to be appropriated to carry out this section $10,000,000 for each

of fiscal years 2002 through 2007.’’.

SEC. 6026. RURAL COMMUNITY ADVANCEMENT PROGRAM.

(a) NATIONAL RESERVE PROGRAM.—Section 381E of the Consolidated

Farm and Rural Development Act (7 U.S.C. 2009d) is

amended—

(1) in subsection (b)—

(A) by striking paragraph (4); and

(B) by redesignating paragraph (5) as paragraph (4);

(2) by striking subsection (e);

(3) by redesignating subsections (f) through (h) as subsections

(e) through (g), respectively; and

(4) in subsection (g) (as so redesignated), by striking ‘‘subsection

(g) of this section’’ and inserting ‘‘subsection (f)’’.

(b) RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.—Section

381O of the Consolidated Farm and Rural Development Act

(7 U.S.C. 2009n) is repealed.

(c) CONFORMING AMENDMENTS.—Section 381G of the Consolidated

Farm and Rural Development Act (7 U.S.C. 2009f(a)) is

amended—

(1) in subsection (a), by striking ‘‘section 381E(g)’’ each

place it appears and inserting ‘‘section 381E(f)’’; and

(2) in subsection (b)(1), by striking ‘‘section 381E(h)’’ and

inserting ‘‘section 381E(g)’’.

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SEC. 6027. DELTA REGIONAL AUTHORITY.

(a) VOTING.—Section 382B(c) of the Consolidated Farm and

Rural Development Act (7 U.S.C. 2009aa–1(c)) is amended by

striking paragraph (1) and inserting the following:

‘‘(1) IN GENERAL.—

‘‘(A) TEMPORARY METHOD.—During the period beginning on the date of

enactment of this subparagraph and ending on December 31, 2004, a decision

by the Authority shall require the affirmative vote of the Federal cochairperson

and a majority of the State members (not including any member representing a

State that is delinquent under subsection (g)(2)(C)) to be effective.

‘‘(B) PERMANENT METHOD.—Effective beginning on

January 1, 2005, a decision by the Authority shall require

a majority vote of the Authority (not including any member

representing a State that is delinquent under subsection

(g)(2)(C)) to be effective.’’.

(b) AUTHORITY TO ISSUE REGULATIONS.—Section 382B(e)(4) of

the Consolidated Farm and Rural Development Act (7 U.S.C.

2009aa–1(e)(4)) is amended by striking ‘‘and rules’’ and inserting

‘‘, rules, and regulations’’.

(c) ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.—Section

382C(b) of the Consolidated Farm and Rural Development Act

(7 U.S.C. 2009aa–2(b)) is amended by striking paragraph (3).

(d) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—Section 382D

of the Consolidated Farm and Rural Development Act (7 U.S.C.

2009aa–3) is amended to read as follows:

116 STAT. 374 PUBLIC LAW 107–171—MAY 13, 2002

‘‘SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

‘‘(a) FINDING.—Congress finds that certain States and local

communities of the region, including local development districts,

may be unable to take maximum advantage of Federal grant programs

for which the States and communities 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.—Notwithstanding any

provision of law limiting the Federal share, the areas eligible for

assistance, or the authorizations of appropriations of any Federal

grant program, and in accordance 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 382F(b)); and

‘‘(2) shall use amounts made available to carry out this

subtitle 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 certifies 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 contribution 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 Authority for approval

of projects under this Act in accordance with section 382I—

‘‘(i) shall be controlling; and

‘‘(ii) shall be accepted by the Federal agencies.

‘‘(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—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 department,

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.’’.

(e) GRANTS TO LOCAL DEVELOPMENT AGENCIES.—Section

382E(b)(1) of the Consolidated Farm and Rural Development Act

(7 U.S.C. 2009aa–4(b)(1)) is amended by striking ‘‘may’’ and

inserting ‘‘shall’’.

(f) APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.—Section

116 STAT. 374 PUBLIC LAW 107–171—MAY 13, 2002

382I of the Consolidated Farm and Rural Development Act (7

U.S.C. 2009aa–8) is amended—

(1) in subsection (a), by inserting ‘‘and approved’’ after

‘‘reviewed’’; and

(2) in subsection (d), by striking ‘‘VOTES FOR DECISIONS.—

’’ and inserting ‘‘APPROVAL OF GRANT APPLICATIONS.—’’.

(g) AUTHORIZATION OF APPROPRIATIONS.—Section 382M(a) of

the Consolidated Farm and Rural Development Act (7 U.S.C.

2009aa–12(a)) is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.

(h) TERMINATION OF AUTHORITY.—Section 382N of the Consolidated

Farm and Rural Development Act (7 U.S.C. 2009aa–13) is

amended by striking ‘‘2002’’ and inserting ‘‘2007’’.

(i) DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.—

Subtitle D of the Consolidated Farm and Rural Development Act

(7 U.S.C. 1981 et seq.) (as amended by section 6025) is amended

by adding at the end the following:

‘‘SEC. 379D. DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.

‘‘(a) IN GENERAL.—The Secretary may make grants to assist

in the development of state-of-the-art technology in animal nutrition

(including research and development of the technology) and value added

manufacturing to promote an economic platform for the Delta

region (as defined in section 382A) to relieve severe economic conditions.

‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to carry out this section $7,000,000 for each

of fiscal years 2002 through 2007.’’.

(j) DEFINITION OF LOWER MISSISSIPPI.—Section 4(2)(I) of the

Delta Development Act (42 U.S.C. 3121 note; Public Law 100–

460) is amended by inserting ‘‘Butler, Conecuh, Escambia, Monroe,’’

after ‘‘Russell,’’.

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