§ 2008j. — National Sheep Industry Improvement Center.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2008j]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 2008j. National Sheep Industry Improvement Center
(a) Definitions
In this section:
(1) Board
The term ``Board'' means the Board of Directors established
under subsection (f) of this section.
(2) Center
The term ``Center'' means the National Sheep Industry
Improvement Center established under subsection (b) of this section.
(3) Eligible entity
The term ``eligible entity'' means an entity that promotes the
betterment of the United States sheep or goat industries and that
is--
(A) a public, private, or cooperative organization;
(B) an association, including a corporation not operated for
profit;
(C) a federally recognized Indian Tribe; or
(D) a public or quasi-public agency.
(4) Fund
The term ``Fund'' means the National Sheep Industry Improvement
Center Revolving Fund established under subsection (e) of this
section.
(5) Intermediary
The term ``intermediary'' means a financial institution
receiving Center funds for establishing a revolving fund and
relending to an eligible entity.
(b) Establishment of Center
The Secretary shall establish a National Sheep Industry Improvement
Center.
(c) Purposes
The purposes of the Center shall be to--
(1) promote strategic development activities and collaborative
efforts by private and State entities to maximize the impact of
Federal assistance to strengthen and enhance production and
marketing of sheep or goat products in the United States;
(2) optimize the use of available human capital and resources
within the sheep or goat industries;
(3) provide assistance to meet the needs of the sheep or goat
industry for infrastructure development, business development,
production, resource development, and market and environmental
research;
(4) advance activities that empower and build the capacity of
the United States sheep or goat industry to design unique responses
to the special needs of the sheep or goat industries on both a
regional and national basis; and
(5) adopt flexible and innovative approaches to solving the
long-term needs of the United States sheep or goat industry.
(d) Strategic plan
(1) In general
The Center shall submit to the Secretary an annual strategic
plan for the delivery of financial assistance provided by the
Center.
(2) Requirements
A strategic plan shall identify--
(A) goals, methods, and a benchmark for measuring the
success of carrying out the plan and how the plan relates to the
national and regional goals of the Center;
(B) the amount and sources of Federal and non-Federal funds
that are available for carrying out the plan;
(C) funding priorities;
(D) selection criteria for funding; and
(E) a method of distributing funding.
(e) Revolving Fund
(1) Establishment
There is established in the Treasury the National Sheep Industry
Improvement Center Revolving Fund. The Fund shall be available to
the Center, without fiscal year limitation, to carry out the
authorized programs and activities of the Center under this section.
(2) Contents of Fund
There shall be deposited in the Fund--
(A) such amounts as may be appropriated, transferred, or
otherwise made available to support programs and activities of
the Center;
(B) payments received from any source for products,
services, or property furnished in connection with the
activities of the Center;
(C) fees and royalties collected by the Center from
licensing or other arrangements relating to commercialization of
products developed through projects funded, in whole or part, by
grants, contracts, or cooperative agreements executed by the
Center;
(D) proceeds from the sale of assets, loans, and equity
interests made in furtherance of the purposes of the Center;
(E) donations or contributions accepted by the Center to
support authorized programs and activities; and
(F) any other funds acquired by the Center.
(3) Use of Fund
(A) In general
The Center may use amounts in the Fund to make direct loans,
loan guarantees, cooperative agreements, equity interests,
investments, repayable grants, and grants to eligible entities,
either directly or through an intermediary, in accordance with a
strategic plan submitted under subsection (d) of this section.
(B) Continued existence
The Center shall manage the Fund in a manner that ensures
that sufficient amounts are available in the Fund to carry out
subsection (c) of this section. The Fund is intended to furnish
the initial capital for a revolving fund that will eventually be
privatized for the purposes of assisting the United States sheep
and goat industries.
(C) Diverse area
The Center shall, to the maximum extent practicable, use the
Fund to serve broad geographic areas and regions of diverse
production.
(D) Administration
The Center may not use more than 3 percent of the amounts in
the portfolio of the Center for each fiscal year for the
administration of the Center. The portfolio shall be calculated
at the beginning of each fiscal year and shall include a total
of--
(i) all outstanding loan balances;
(ii) the Fund balance;
(iii) the outstanding balance to intermediaries; and
(iv) the amount the Center paid for all equity
interests.
(E) Influencing legislation
None of the amounts in the Fund may be used to influence
legislation.
(F) Accounting
To be eligible to receive amounts from the Fund, an entity
must agree to account for the amounts using generally accepted
accounting principles.
(G) Uses of Fund
The Center may use amounts in the Fund to--
(i) participate with Federal and State agencies in
financing activities that are in accordance with a strategic
plan submitted under subsection (d) of this section,
including participation with several States in a regional
effort;
(ii) participate with other public and private funding
sources in financing activities that are in accordance with
the strategic plan, including participation in a regional
effort;
(iii) provide security for, or make principal or
interest payments on, revenue or general obligation bonds
issued by a State, if the proceeds from the sale of the
bonds are deposited in the Fund;
(iv) accrue interest;
(v) guarantee or purchase insurance for local
obligations to improve credit market access or reduce
interest rates for a project that is in accordance with the
strategic plan;
(vi) sell assets, loans, and equity interests acquired
in connection with the financing of projects funded by the
Center; or
(vii) purchase equity interests.
(4) Loans
(A) Rate
A loan from the Fund may be made at an interest rate that is
below the market rate or may be interest free.
(B) Term
The term of a loan may not exceed the shorter of--
(i) the useful life of the activity financed; or
(ii) 40 years.
(C) Source of repayment
The Center may not make a loan from the Fund unless the
recipient establishes an assured source of repayment.
(D) Proceeds
All payments of principal and interest on a loan made from
the Fund shall be deposited into the Fund.
(5) Maintenance of effort
The Center shall use the Fund only to supplement and not to
supplant Federal, State, and private funds expended for rural
development.
(6) Funding
(A) Deposit of funds
All Federal and non-Federal amounts received by the Center
to carry out this section shall be deposited in the Fund.
(B) Mandatory funds
Out of any moneys in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall provide to the
Center not to exceed $26,000,000 to carry out this section.
(C) Additional funds
In addition to any funds provided under subparagraph (B),
there is authorized to be appropriated $30,000,000 to carry out
this section.
(f) Board of Directors
(1) In general
The management of the Center shall be vested in a Board of
Directors.
(2) Powers
The Board shall--
(A) be responsible for the general supervision of the
Center;
(B) review any contract, direct loan, loan guarantee,
cooperative agreement, equity interest, investment, repayable
grant, and grant to be made or entered into by the Center and
any financial assistance provided to the Center;
(C) make the final decision, by majority vote, on whether
and how to provide assistance to an applicant; and
(D) develop and establish a budget plan and a long-term
operating plan to carry out the goals of the Center.
(3) Composition
The Board shall be composed of--
(A) 7 voting members, of whom--
(i) 4 members shall be active producers of sheep or
goats in the United States;
(ii) 2 members shall have expertise in finance and
management; and
(iii) 1 member shall have expertise in lamb, wool, goat,
or goat product marketing; and
(B) 2 nonvoting members, of whom--
(i) 1 member shall be the Under Secretary of Agriculture
for Rural Development; and
(ii) 1 member shall be the Under Secretary of
Agriculture for Research, Education, and Economics.
(4) Nomination
(A) Nominating body
The Secretary shall appoint the voting members of the Board
from nominations submitted by organizations described in
subparagraph (B).
(B) National organizations
A national organization is described in this subparagraph if
the organization--
(i) consists primarily of active sheep or goat producers
in the United States; and
(ii) has as the primary interest of the organization the
production of sheep or goats in the United States.
(5) Term of office
(A) In general
Subject to subparagraph (B), the term of office of a voting
member of the Board shall be 3 years.
(B) Staggered initial terms
The initial voting members of the Board (other than the
chairperson of the initially established Board) shall serve for
staggered terms of 1, 2, and 3 years, as determined by the
Secretary.
(C) Reappointment
A voting member may be reappointed for not more than one
additional term.
(6) Vacancy
(A) In general
A vacancy on the Board shall be filled in the same manner as
the original Board.
(B) Reappointment
A voting member appointed to fill a vacancy for an unexpired
term may be reappointed for one full term.
(7) Chairperson
(A) In general
The Board shall select a chairperson from among the voting
members of the Board.
(B) Term
The term of office of the chairperson shall be 2 years.
(8) Annual meeting
(A) In general
The Board shall meet not less than once each fiscal year at
the call of the chairperson or at the request of the executive
director appointed under subsection (g)(1) of this section.
(B) Location
The location of a meeting of the Board shall be established
by the Board.
(9) Voting
(A) Quorum
A quorum of the Board shall consist of a majority of the
voting members.
(B) Majority vote
A decision of the Board shall be made by a majority of the
voting members of the Board.
(10) Conflicts of interest
(A) In general
Except as provided in subparagraph (D), a member of the
Board shall not vote on any matter respecting any application,
contract, claim, or other particular matter pending before the
Board in which, to the knowledge of the member, an interest is
held by--
(i) the member;
(ii) any spouse of the member;
(iii) any child of the member;
(iv) any partner of the member;
(v) any organization in which the member is serving as
an officer, director, trustee, partner, or employee; or
(vi) any person with whom the member is negotiating or
has any arrangement concerning prospective employment or
with whom the member has a financial interest.
(B) Removal
Any action by a member of the Board that violates
subparagraph (A) shall be cause for removal from the Board.
(C) Validity of action
An action by a member of the Board that violates
subparagraph (A) shall not impair or otherwise affect the
validity of any otherwise lawful action by the Board.
(D) Disclosure
(i) In general
If a member of the Board makes a full disclosure of an
interest and, prior to any participation by the member, the
Board determines, by majority vote, that the interest is too
remote or too inconsequential to affect the integrity of any
participation by the member, the member may participate in
the matter relating to the interest, except as provided in
subparagraph (E)(iii).
(ii) Vote
A member that discloses an interest under clause (i)
shall not vote on a determination of whether the member may
participate in the matter relating to the interest.
(E) Remands
(i) In general
The Secretary may vacate and remand to the Board for
reconsideration any decision made pursuant to subsection
(e)(3)(H) of this section if the Secretary determines that
there has been a violation of this paragraph or any conflict
of interest provision of the bylaws of the Board with
respect to the decision.
(ii) Reasons
In the case of any violation and remand of a funding
decision to the Board under clause (i), the Secretary shall
inform the Board of the reasons for the remand.
(iii) Conflicted members not to vote on remanded
decisions
If a decision with respect to a matter is remanded to
the Board by reason of a conflict of interest faced by a
Board member, the member may not participate in any
subsequent decision with respect to the matter.
(11) Compensation
(A) In general
A member of the Board shall not receive any compensation by
reason of service on the Board.
(B) Expenses
A member of the Board shall be reimbursed for travel,
subsistence, and other necessary expenses incurred by the member
in the performance of a duty of the member.
(12) Bylaws
The Board shall adopt, and may from time to time amend, any
bylaw that is necessary for the proper management and functioning of
the Center.
(13) Public hearings
Not later than 1 year after April 4, 1996, the Board shall hold
public hearings on policy objectives of the program established
under this section.
(14) Organizational system
The Board shall provide a system of organization to fix
responsibility and promote efficiency in carrying out the functions
of the Board.
(15) Use of Department of Agriculture
The Board may, with the consent of the Secretary, utilize the
facilities of and the services of employees of the Department of
Agriculture, without cost to the Center.
(g) Officers and employees
(1) Executive director
(A) In general
The Board shall appoint an executive director to be the
chief executive officer of the Center.
(B) Tenure
The executive director shall serve at the pleasure of the
Board.
(C) Compensation
Compensation for the executive director shall be established
by the Board.
(2) Other officers and employees
The Board may select and appoint officers, attorneys, employees,
and agents who shall be vested with such powers and duties as the
Board may determine.
(3) Delegation
The Board may, by resolution, delegate to the chairperson, the
executive director, or any other officer or employee any function,
power, or duty of the Board other than voting on a grant, loan,
contract, agreement, budget, or annual strategic plan.
(h) Consultation
To carry out this section, the Board may consult with--
(1) State departments of agriculture;
(2) Federal departments and agencies;
(3) nonprofit development corporations;
(4) colleges and universities;
(5) banking and other credit-related agencies;
(6) agriculture and agribusiness organizations; and
(7) regional planning and development organizations.
(i) Oversight
(1) In general
The Secretary shall review and monitor compliance by the Board
and the Center with this section.
(2) Sanctions
If, following notice and opportunity for a hearing, the
Secretary finds that the Board or the Center is not in compliance
with this section, the Secretary may--
(A) cease making deposits to the Fund;
(B) suspend the authority of the Center to withdraw funds
from the Fund; or
(C) impose other appropriate sanctions, including recoupment
of money improperly expended for purposes prohibited or not
authorized by this Act and disqualification from receipt of
financial assistance under this section.
(3) Rescission of sanctions
The Secretary shall rescind sanctions imposed under paragraph
(2) on a finding by the Secretary that there is no longer any
failure by the Board or the Center to comply with this section or
that the noncompliance will be promptly corrected.
(j) Privatization
(1) In general
Privatization of a revolving fund for the purposes of assisting
the United States sheep and goat industries shall occur on the
earlier of--
(A) September 30, 2006; or
(B) the date as of which a total of $30,000,000 has been
appropriated for the Center under subsection (e)(6)(C) of this
section.
(2) Privatization proposal
On privatization of a revolving fund in accordance with
paragraph (1), the Board shall submit to the Secretary, for
approval, a privatization proposal that--
(A) delineates a private successor entity to the Center; and
(B) establishes a transition plan.
(3) Private successor entity
The private successor entity shall--
(A) have the purposes described in subsection (c) of this
section;
(B) be organized under the laws of one of the States; and
(C) be able to continue the activities of the Center.
(4) Transition plan
The transition plan shall--
(A) identify any continuing role of the Federal Government
with respect to the Center;
(B) provide for the transfer of all Center assets and
liabilities to the private successor entity; and
(C) delineate the status of the Board and employees of the
Center.
(5) Implementation
(A) In general
On approval by the Secretary of the private successor entity
and the transition plan, the Center shall create the private
successor entity and implement the transition plan.
(B) Authority
The Secretary shall have all necessary authority to
implement the transition plan.
(6) Transfer of funds
On creation of the private successor entity, all funds held by
the Department of the Treasury pursuant to this section shall be
transferred to the private successor entity.
(7) Repeal
On the date the Secretary publishes notice in the Federal
Register that the transition plan is complete, this section is
repealed.
(Pub. L. 87-128, title III, Sec. 375, as added Pub. L. 104-127, title
VII, Sec. 759, Apr. 4, 1996, 110 Stat. 1132; amended Pub. L. 106-78,
title VIII, Sec. 816, Oct. 22, 1999, 113 Stat. 1182; Pub. L. 106-387,
Sec. 1(a) [title VII, Sec. 756], Oct. 28, 2000, 114 Stat. 1549, 1549A-
43; Pub. L. 107-76, title VII, Sec. 731, Nov. 28, 2001, 115 Stat. 736.)
References in Text
This Act, referred to in subsec. (i)(2)(C), refers to the
Agricultural Act of 1961, Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 294, as
amended. For classification of this Act to the Code, see Short Title
note set out under section 1911 of this title and Tables. However, the
reference was probably intended to be ``this title'' meaning the
Consolidated Farm and Rural Development Act, title III of Pub. L. 87-
128, as amended, which is classified principally to this chapter. For
classification of this title to the Code, see Short Title note set out
under section 1921 of this title and Tables.
Amendments
2001--Subsec. (e)(6)(B). Pub. L. 107-76 substituted ``$26,000,000''
for ``$25,000,000''.
2000--Subsec. (e)(6)(B). Pub. L. 106-387 substituted ``$25,000,000''
for ``$20,000,000''.
1999--Subsec. (a)(5). Pub. L. 106-78, Sec. 816(a), added par. (5).
Subsec. (e)(3)(A). Pub. L. 106-78, Sec. 816(b)(1)(A), added subpar.
(A) and struck out heading and text of former subpar. (A). Text read as
follows: ``The Center may use amounts in the Fund to make grants and
loans to eligible entities in accordance with a strategic plan submitted
under subsection (d) of this section.''
Subsec. (e)(3)(B). Pub. L. 106-78, Sec. 816(b)(1)(B), inserted at
end ``The Fund is intended to furnish the initial capital for a
revolving fund that will eventually be privatized for the purposes of
assisting the United States sheep and goat industries.''
Subsec. (e)(3)(D). Pub. L. 106-78, Sec. 816(b)(1)(C), (F),
redesignated subpar. (E) as (D) and struck out heading and text of
former subpar. (D). Text read as follows: ``The Center shall, to the
maximum extent practicable, use the Fund to provide a variety of grants
and intermediate- and long-term loans.''
Subsec. (e)(3)(E). Pub. L. 106-78, Sec. 816(b)(1)(F), redesignated
subpar. (F) as (E). Former subpar. (E) redesignated (D).
Pub. L. 106-78, Sec. 816(b)(1)(D), added subpar. (E) and struck out
heading and text of former subpar. (E). Text read as follows: ``The
Center may not use more than 3 percent of the amounts in the Fund for a
fiscal year for the administration of the Center.''
Subsec. (e)(3)(F) to (H). Pub. L. 106-78, Sec. 816(b)(1)(F),
redesignated subpars. (G) and (H) as (F) and (G), respectively. Former
subpar. (F) redesignated (E).
Subsec. (e)(3)(H)(vii). Pub. L. 106-78, Sec. 816(b)(1)(E), added cl.
(vii).
Subsec. (e)(6)(D). Pub. L. 106-78, Sec. 816(b)(2), struck out
heading and text of subpar. (D). Text read as follows: ``No additional
Federal funds shall be used to carry out this section beginning on the
earlier of--
``(i) the date that is 10 years after April 4, 1996; or
``(ii) the day after a total of $50,000,000 has been made
available under subparagraphs (B) and (C) to carry out this
section.''
Subsec. (f)(2)(B). Pub. L. 106-78, Sec. 816(c)(1), added subpar. (B)
and struck out former subpar. (B) which read as follows: ``review any
grant, loan, contract, or cooperative agreement to be made or entered
into by the Center and any financial assistance provided to the
Center;''.
Subsec. (f)(5)(C). Pub. L. 106-78, Sec. 816(c)(2), added subpar. (C)
and struck out heading and text of former subpar. (C). Text read as
follows: ``A voting member may be reelected for not more than 1
additional term.''
Subsec. (f)(6)(B). Pub. L. 106-78, Sec. 816(c)(3), added subpar. (B)
and struck out heading and text of former subpar. (B). Text read as
follows: ``A member elected to fill a vacancy for an unexpired term may
be reelected for 1 full term.''
Subsec. (j). Pub. L. 106-78, Sec. 816(d), added subsec. (j).
Section Referred to in Other Sections
This section is referred to in section 917 of this title.
