In this section:
The term "Board" means the Board of Directors established under subsection (f).
The term "Center" means the National Sheep Industry Improvement Center established under subsection (b).
The term "eligible entity" means an entity that promotes the betterment of the United States sheep or goat industries and that is-
The term "Fund" means the National Sheep Industry Improvement Center Revolving Fund established under subsection (e).
The term "intermediary" means a financial institution receiving Center funds for establishing a revolving fund and relending to an eligible entity.
The Secretary shall establish a National Sheep Industry Improvement Center.
The purposes of the Center shall be to-
The Center shall submit to the Secretary an annual strategic plan for the delivery of financial assistance provided by the Center.
A strategic plan shall identify-
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.
There shall be deposited in the Fund-
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).
The Center shall manage the Fund in a manner that ensures that sufficient amounts are available in the Fund to carry out subsection (c). 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.
The Center shall, to the maximum extent practicable, use the Fund to serve broad geographic areas and regions of diverse production.
The Center may not use more than 10 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-
None of the amounts in the Fund may be used to influence legislation.
To be eligible to receive amounts from the Fund, an entity must agree to account for the amounts using generally accepted accounting principles.
The Center may use amounts in the Fund to-
A loan from the Fund may be made at an interest rate that is below the market rate or may be interest free.
The term of a loan may not exceed the shorter of-
The Center may not make a loan from the Fund unless the recipient establishes an assured source of repayment.
All payments of principal and interest on a loan made from the Fund shall be deposited into the Fund.
The Center shall use the Fund only to supplement and not to supplant Federal, State, and private funds expended for rural development.
The management of the Center shall be vested in a Board of Directors.
The Board shall-
The Board shall be composed of-
The Secretary shall appoint the voting members of the Board from nominations submitted by organizations described in subparagraph (B).
A national organization is described in this subparagraph if the organization-
Subject to subparagraph (B), the term of office of a voting member of the Board shall be 3 years.
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.
A voting member may be reappointed for not more than one additional term.
A vacancy on the Board shall be filled in the same manner as the original Board.
A voting member appointed to fill a vacancy for an unexpired term may be reappointed for one full term.
The Board shall select a chairperson from among the voting members of the Board.
The term of office of the chairperson shall be 2 years.
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).
The location of a meeting of the Board shall be established by the Board.
A quorum of the Board shall consist of a majority of the voting members.
A decision of the Board shall be made by a majority of the voting members of the Board.
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-
Any action by a member of the Board that violates subparagraph (A) shall be cause for removal from the Board.
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.
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).
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.
The Secretary may vacate and remand to the Board for reconsideration any decision made pursuant to subsection (e)(3)(H) 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.
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.
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.
A member of the Board shall not receive any compensation by reason of service on the Board.
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.
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.
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.
The Board shall provide a system of organization to fix responsibility and promote efficiency in carrying out the functions of the Board.
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.
The Board shall appoint an executive director to be the chief executive officer of the Center.
The executive director shall serve at the pleasure of the Board.
Compensation for the executive director shall be established by the Board.
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.
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.
To carry out this section, the Board may consult with-
The Secretary shall review and monitor compliance by the Board and the Center with this section.
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-
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.
7 U.S.C. § 1627b
EDITORIAL NOTES
REFERENCES IN TEXTThis Act, referred to in subsec. (i)(2)(C), probably means the Consolidated Farm and Rural Development Act, title III of Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 294, which is classified principally to chapter 50 (§1921 et seq.) of this title and of which this section was formerly a part prior to renumbering by Pub. L. 113-79. For classification of this Act to the Code, see Short Title note set out under section 1921 of this title and Tables.
CODIFICATIONSection was formerly classified to section 2008j of this title.A former subsec. (j)(7) of this section provided for the repeal of this section on the date the Secretary published notice in the Federal Register that the transition plan to privatize the National Sheep Industry Improvement Center had been completed. Although such notice was published in the Federal Register on May 23, 2007, at 72 F.R. 28945, repeal of this section did not take effect because of amendment by Pub. L. 110-246, §11009(b), repealing subsec. (j) of this section, effective May 1, 2007. See 2008 Amendment and Effective Date of 2008 Amendment notes below. Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246.
AMENDMENTS2014-Subsec. (e)(3)(D). Pub. L. 113-79, §12102(b)(1)(A), substituted "10 percent" for "3 percent" in introductory provisions.Subsec. (e)(6). Pub. L. 113-79, §12102(b)(1)(B), struck out par. (6) which related to funding to carry out this section.2008-Subsec. (e)(6)(B), (C). Pub. L. 110-246, §11009(a), added subpars. (B) and (C) and struck out former subpar. (B) which provided for $27,998,000 out of moneys in the Treasury not otherwise appropriated to carry out this section and former subpar. (C) which authorized appropriation of an additional $30,000,000. Subsec. (j). Pub. L. 110-246, §11009(b)(1), struck out subsec. (j) which related to privatization of the National Sheep Industry Improvement Center and repeal of this section on the date that the Secretary published notice in the Federal Register that the transition plan for such privatization had been completed. 2004-Subsec. (e)(6)(B). Pub. L. 108-447 substituted "$27,998,000" for "$26,998,000". Pub. L. 108-199 substituted "$26,998,000" for "$26,499,000". 2003-Subsec. (e)(6)(B). Pub. L. 108-7 substituted "$26,499,000" for "$26,000,000". 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, §816(a), added par. (5).Subsec. (e)(3)(A). Pub. L. 106-78, §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, §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, §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, §816(b)(1)(F), redesignated subpar. (F) as (E). Former subpar. (E) redesignated (D). Pub. L. 106-78, §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, §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, §816(b)(1)(E), added cl. (vii). Subsec. (e)(6)(D). Pub. L. 106-78, §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, §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, §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, §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, §816(d), added subsec. (j).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the date of enactment of Pub. L. 110-234 except as otherwise provided, see section 4 of Pub. L. 110-246 set out as an Effective Date note under section 8701 of this title. Pub. L. 110-234, title XI, §11009(b)(2), May 22, 2008, 122 Stat. 1359, and Pub. L. 110-246, §4(a), title XI, §11009(b)(2), June 18, 2008, 122 Stat. 1664, 2121, provided that: "The amendment made by paragraph (1) [amending this section] takes effect on May 1, 2007."[Pub. L. 110-234 and Pub. L. 110-246 enacted identical provisions. Pub. L. 110-234 was repealed by section 4(a) of Pub. L. 110-246 set out as a note under section 8701 of this title.]