7 USC 1627 - National Sheep Industry Improvement Center

View all text of Subchapter I [§ 1621 - § 1633]

§ 1627b. National Sheep Industry Improvement Center

(a) DefinitionsIn this section:

(1) Board

(2) Center

(3) Eligible entityThe 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;

(D) a public or quasi-public agency.

(4) Fund

(5) Intermediary

(b) Establishment of Center

(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

(2) RequirementsA 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;

(D) selection criteria for funding; and

(E) a method of distributing funding.

(e) Revolving Fund

(1) Establishment

(2) Contents of FundThere 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

(B) Continued existence

(D) AdministrationThe 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—

(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

(F) Accounting

(G) Uses of FundThe 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), 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

(B) TermThe term of a loan may not exceed the shorter of—

(i) the useful life of the activity financed; or

(ii) 40 years.

(D) Proceeds

(5) Maintenance of effort

(f) Board of Directors

(1) In general

(2) PowersThe 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;

(D) develop and establish a budget plan and a long-term operating plan to carry out the goals of the Center.

(3) CompositionThe 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

(B) National organizationsA 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

(B) Staggered initial terms

(6) Vacancy

(A) In general

(B) Reappointment

(7) Chairperson

(A) In general

(B) Term

(8) Annual meeting

(A) In general

(B) Location

(9) Voting

(A) Quorum

(B) Majority vote

(10) Conflicts of interest

(A) In generalExcept 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

(D) Disclosure

(i) In general

(ii) Vote

(E) Remands

(i) In general

(ii) Reasons

(iii) Conflicted members not to vote on remanded decisions

(11) Compensation

(A) In general

(B) Expenses

(12) Bylaws

(13) Public hearings

(14) Organizational system

(15) Use of Department of Agriculture

(g) Officers and employees

(1) Executive director

(A) In general

(B) Tenure

(2) Other officers and employees

(3) Delegation

(h) ConsultationTo 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

(2) SanctionsIf, 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

(Aug. 14, 1946, ch. 966, title II, § 210, formerly Pub. L. 87–128, title III, § 375, as added Pub. L. 104–127, title VII, § 759, Apr. 4, 1996, 110 Stat. 1132; amended Pub. L. 106–78, title VIII, § 816, Oct. 22, 1999, 113 Stat. 1182; Pub. L. 106–387, § 1(a) [title VII, § 756], Oct. 28, 2000, 114 Stat. 1549, 1549A–43; Pub. L. 107–76, title VII, § 731, Nov. 28, 2001, 115 Stat. 736; Pub. L. 108–7, div. A, title VII, § 728, Feb. 20, 2003, 117 Stat. 42; Pub. L. 108–199, div. A, title VII, § 726, Jan. 23, 2004, 118 Stat. 35; Pub. L. 108–447, div. A, title VII, § 725, Dec. 8, 2004, 118 Stat. 2842; Pub. L. 110–234, title XI, § 11009(a), (b)(1), May 22, 2008, 122 Stat. 1359; Pub. L. 110–246, § 4(a), title XI, § 11009(a), (b)(1), June 18, 2008, 122 Stat. 1664, 2120, 2121; renumbered act Aug. 14, 1946, § 210, and amended Pub. L. 113–79, title XII, § 12102(b), Feb. 7, 2014, 128 Stat. 979.)