§ 2009f. — Grants to States.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2009f]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER V--RURAL COMMUNITY ADVANCEMENT PROGRAM
Sec. 2009f. Grants to States
(a) Simple grants
(1) Mandatory grant
The Secretary shall make a grant to any eligible State for any
fiscal year for which the State requests a grant under this section
in an amount equal to 5 percent of the total amount allocated for
the State under section 2009d(f) of this title.
(2) Permissive grant
Before July 15 of each fiscal year, the Secretary may make a
grant to any State to defray the cost of any subsidy associated with
a guarantee provided by an eligible public entity of the State under
section 2009g of this title in an amount that does not exceed 5
percent of the total amount allocated for the State under section
2009d(f) of this title.
(3) Source of funds
The Secretary shall make grants to a State under paragraphs (1)
and (2) from amounts allocated for the State in the accounts
specified in section 2009d(c) of this title, by reducing each such
allocated amount by the same percentage.
(b) Matching grants
(1) In general
Subject to paragraph (2), the Secretary shall make a grant to
any eligible State for any fiscal year for which the State requests
a grant under this section in an amount equal to 5 percent of the
amount allocated for the State for the fiscal year under section
2009d(g) of this title.
(2) Eligibility
A State shall be eligible for a grant under paragraph (1) if the
State makes commitments to the Secretary to--
(A) expend from non-Federal sources in accordance with
subsection (c) of this section an amount that is not less than
200 percent of the amount of the grant; and
(B) maintain the amounts paid to the State under this
subsection and the amount referred to in subparagraph (A) in an
account separate from all other State funds until expended in
accordance with subsection (c) of this section.
(3) Source of funds
If the Secretary makes a grant under paragraph (1) before July
15 of the fiscal year, the grant shall be made from amounts
allocated for the State in the accounts specified in section
2009d(c) of this title for the fiscal year, by reducing each
allocated amount by the same percentage.
(c) Use of funds
A State to which funds are provided under this section shall use the
funds in rural areas for any activity authorized under the authorities
described in section 2009d(d) of this title in accordance with the State
strategic plan referred to in section 2009c of this title.
(d) Maintenance of effort
The State shall provide assurances to the Secretary that funds
provided to the State under this section will be used only to
supplement, not to supplant, the amount of Federal, State, and local
funds otherwise expended for rural development assistance in the State.
(e) Appeals
The Secretary shall provide to a State an opportunity to appeal any
action taken with respect to the State under this section.
(f) Administrative costs
Federal funds shall not be used for any administrative costs
incurred by a State in carrying out this subchapter.
(g) Expenditure of funds by State
(1) In general
Payments to a State from a grant under this section for a fiscal
year shall be obligated by the State in the fiscal year or in the
succeeding fiscal year. A State shall obligate funds under this
section to provide assistance to rural areas.
(2) Failure to obligate
If a State fails to obligate payments in accordance with
paragraph (1), the Secretary shall make an equal reduction in the
amount of payments provided to the State under this section for the
immediately succeeding fiscal year.
(3) Noncompliance
(A) Review
The Secretary shall review and monitor State compliance with
this section.
(B) Penalty
If the Secretary finds that there has been misuse of grant
funds provided under this section, or noncompliance with any of
the terms and conditions of a grant, after reasonable notice and
opportunity for a hearing--
(i) the Secretary shall notify the State of the finding;
and
(ii) no further payments to the State shall be made with
respect to the programs funded under this section until the
Secretary is satisfied that there is no longer any failure
to comply or that the noncompliance will be promptly
corrected.
(C) Other sanctions
In the case of a finding of noncompliance made pursuant to
subparagraph (B), the Secretary may, in addition to, or in lieu
of, imposing the sanctions described in subparagraph (B), impose
other appropriate sanctions, including recoupment of money
improperly expended for purposes prohibited or not authorized by
this section and disqualification from the receipt of financial
assistance under this section.
(h) No entitlement to contract, grant, or assistance
Nothing in this subchapter--
(1) entitles any person to assistance or a contract or grant; or
(2) limits the right of a State to impose additional limitations
or conditions on assistance or a contract or grant under this
section.
(Pub. L. 87-128, title III, Sec. 381G, as added Pub. L. 104-127, title
VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1143; amended Pub. L. 107-171,
title VI, Sec. 6026(c), May 13, 2002, 116 Stat. 372.)
Amendments
2002--Subsec. (a)(1), (2). Pub. L. 107-171, Sec. 6026(c)(1),
substituted ``section 2009d(f) of this title'' for ``section 2009d(g) of
this title''.
Subsec. (b)(1). Pub. L. 107-171, Sec. 6026(c)(2), substituted
``section 2009d(g) of this title'' for ``section 2009d(h) of this
title''.
Section Referred to in Other Sections
This section is referred to in sections 2009d, 2009g of this title.
