August 30, 1972 - 7 Pub. Law 92-419 business, industry, and employment and improving the economic and environmental climate in rural areas or through joint grants to applicants eligible under subsection (e) for such purposes, including in the case of loans or grants the development, construction, or acquisition of land, buildings, plants, equipment, access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities, refining, service and fees. 86 STAT. 664 665. (1) No financial or other assistance shall be extended under any Restrictions. provision of sections 304 (b), 310B, and 312(b) that is calculated to or Ante, pp.657, 663. is likely to result in the transfer from one area to another of any Post, p. employment or business activity provided by operations of the applicant, but this limitation shall not be construed to prohibit assistance for the expansion of an existing business entity through the establishment of a new branch, afiliate, or subsidiary of such entity if the establishment of such branch, affiliate, or subsidiary will not result in an increase in unemployment in the area of original location or in any other area where such entity conducts business operations unless there is reason to believe that such branch, affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where it conducts such operations. (2) No financial or other assistance shall be extended under any provision of sections 304 (b), 310B, and 312(b) which is calculated to or likely to result in an increase in the production of goods, materials, or commodities, or the availability of services or facilities in the area, when there is not sufficient demand for such goods, materials, commodities, services, or facilities, to employ the efficient capacity of existing competitive commercial or industrial enterprises, unless such financial or other assistance will not have an adverse effect upon existing competitive enterprises in the area. (3) No financial or other assistance shall be extended under any provision of sections 304(b), 310B, and 312(b) if the Secretary of Labor certifies within 60 days after the matter has been submitted to him by the Secretary of Agriculture that the provisions of paragraph (1) and (2) of this subsection have not been complied with. The Seeretary of Labor shall, in cooperation with the Secretary of Agriculture, develop a system of certification which will insure the expeditious processing of requests for assistance under this section." (b) Section 333 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting "310B," in paragraph (b) after 75 Stat. 314. *306,". 7 USC 1983. SEC. 119. GUARANTEED RURAL HOUSING LOANS.-Subtitle A of the Consolidated Farmers Home Administration Act of 1961 is amended 7 USC 1922. by adding at the end thereof a new section as follows: “SEC. 310C. (a) Rural Housing Loans which (1) are guaranteed by the Secretary under section 517 (a) (2) of the Housing Act of 1949, (2) 79 Stat. 498. are made by other lenders approved by the Secretary to provide dwell- 42 USC 1487. ings in rural areas for the applicants own use, and (3) bear interest and other charges at rates not above the maximum rates prescribed by the Secretary of Housing and Urban Development for loans made by private lenders for similar purposes and guaranteed by the Secretary of Housing and Urban Development under the National Housing Act 48 Stat. 1246. or superseding legislation shall not be subject to sections 501 (c) and 12 USC 1701. 502(b) (3) of the Housing Act of 1949." "(b) For the purposes of title V of the Housing Act of 1949, as amended, a guarantee of payment given under the color of law by the Department of Hawaiian Home Lands (or its successor in function) shall be found by the Secretary reasonably to assure repayment of any indebtedness so guaranteed." 63 Stat. 432, 433. 1472. 42 USC 1471. Pub. Law 92-419 86 STAT. 665 - 8. August 30, 1972 75 Stat. 310. 7 USC 1941. 82 Stat. 771. 7 USC 1942. Liability. 84 Stat. 1593. 29 USC 655. 29 USC 667. Supra. Pollution abatement. 75 Stat. 310. 7 USC 1943. 7 USC 1941. Supra. 7 USC 1928. Ante, pp. 660, 661. 7 USC 1927. 7 USC 1981. SEC. 120. YOUNG FARMERS' LOANS.-(a) Section 311 of the Consolidated Farmers Home Administration Act of 1961 is amended by-(1) inserting "(a)" before the first word; and (2) adding at the end of the section a new subsection as follows: (b) (1) Loans may also be made under this subtitle without regard to the requirements of clauses (2) and (3) of subsection (a) to youths who are rural residents to enable them to operate enterprises in connection with their participation in 4-H Clubs, Future Farmers of America, and similar organizations and for the purposes specified in section 312. (2) A person receiving a loan under this subsection who executes a promissory note therefor shall thereby incur full personal liability for the indebtedness evidenced by such note in accordance with its terms free of any disability of minority. "(3) For loans under this subsection the Secretary may accept the personal liability of a cosigner of the promissory note in addition to the borrowers' personal liability." (b) Section 312 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting "(a)" after "311". SEC. 121. RURAL ENTERPRISE OPERATING LOANS.-Section 312 of the Consolidated Farmers Home Administration Act of 1961, as amended by this title, is amended by (1) inserting "(a)" before the first word; and (2) further amending subsection (a) (as so designated by paragraph (1)) by striking out “and (9) for loan closing costs." and by inserting in lieu thereof the following: "(9) loan closing costs. and (10) for assisting farmers or ranchers in effecting additions to or alterations in the equipment, facilities, or methods of operation of their farms or ranches in order to comply with the applicable standards promulgated pursuant to section 6 of the Occupational Safety and Health Act of 1970 or standards adopted by a State pursuant to a plan approved under section 18 of the Occupational Safety and Health Act of 1970, if the Secretary. determines that any such farmer or rancher is likely to suffer substantial economic injury due to such compliance without assistance under this paragraph.' (3) adding at the end of the section new subsections as follows: (b) Loans may also be made under this subtitle to residents of rural areas without regard to the requirements of clauses (2) and (3) of section 311(a) to operate in rural areas small business enterprises to provide such residents with essential income. (c) Loans may also be made to eligible applicants under this subtitle for pollution abatement and control projects in rural areas. "(d) The Secretary may make grants, not to exceed $25,000,000 annually, to eligible applicants under this subtitle for pollution abatement and control projects in rural areas. No such grant shall exceed 50 per centum of the development cost of such a project." SEC. 122. MAXIMUM SIZE.-Section 313 of the Consolidated Farmers Home Administration Act of 1961 is amended by changing $35,000“ to "$50,000". SEC. 123. INSURED OPERATING LOANS.-Subtitle B of the Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof a new section as follows: "SEC. 317. Loans meeting the requirements of this subtitle (except section 312(b)) may be insured, or made to be sold and insured, in accordance with and subject to sections 308 and 309 and the last sentence of section 307 of this title." . SEC. 124. AMENDMENTS TO SECTION 331.-Section 331 of the Consolidated Farmers Home Administration Act of 1961, is amended-(1) by inserting before the semicolon, in paragraph (a), the 91-868 O-73-37 August 30, 1972 - 9 Pub. Law 92-419 86 STAT. 666 following: ", and until January 1, 1975, make contracts for services incident to making, insuring, collecting, and servicing loans and property as determined by the Secretary to be necessary for carrying out the purposes of this title: (and the Secretary shall Peport to Presiprior to June 30, 1974, report to the Congress through the President, transmittal dent on the experience in using such contracts, together with to Congress. recommendations for such legislation as he may see fit)"; and (2) by changing the period at the end of any lettered paragraph thereof to a semicolon and adding at the end of such section the following additional paragraphs: “(g) Obtain fidelity bonds protecting the Government against fraud Fidelity bonds. and dishonesty of officers and employees of the Farmers Home Admin istration in lieu of faithful performance of duties bonds under section 14, title 6. United States Code, and regulations issued pursuant thereto. Ante, P. 202. but otherwise in accordance with the provisions thereof; *(h) Not require borrowers to pay interest accrued after Decem- Interest payber 31, 1972. on interest which is not more than 90 days overdue on any ments. loan held or insured by the Farmers Home Administration: "(i) Consent to the transfer of property securing any loan or financed by any loan or grant made, insured, or held by the Secretary under this title, or the provisions of any other law administered by the Farmers Home Administration, upon such terms as he deems necessary to carry out the purpose of the loan or grant or to protect the financial interest of the Government.“ SEC. 125. CREDIT ELSEWHERE DETERMINATION.--Paragraph (a) of section 333 is amended by inserting after "in writing" the following: 75 Stat. 314. ", and the Secretary shall determine.". SEC. 126. REPEAL OF COUNTY COMMITTEE APPROVAL REQUIREMENT FOR ASSOCIATION AND DISTRICT LOANS.-Section 333 (b) of the Consolidated Farmers Home Administration Act of 1961 is amended by striking out the words "said sections" and inserting "section 821(b) (2)". 7 USC 1983. 7 USC 1961. SEC. 127. DISPOSITION OF REAL PROPERTY.-Section 335 (c) of the Consolidated Farmers Home Administration Act of 1961 is amended 7 USC 1985. by (1) striking out "subtitle A" in the first sentence and inserting in lieu thereof "the provisions of any law administered by the Farmers Home Administration"; (2) striking out "the provisions of subtitle A" in the second sentence and inserting in lieu thereof "such provisions"; (3) striking out in the fourth sentence "of at least 20 per centum" and "not more than five annual"; and (4) adding at the end of the fourth sentence before the period the following: “, but not in any event at rates and terms more favorable than those legally permissible for eligible borrowers". SEC. 128. (a) GUARANTEE OF LOANS.—Section 343 of the Consoli- Definitions. dated Farmers Home Administration Act of 1961 is amended by 76 Stat. 632; inserting at the end thereof before the period the following: ", and 80 Stat. 809. (4) the word 'insure' as used in this title includes guarantee, which 7 USC 1991. means to guarantee the payment of a loan originated, held, and serviced by a private financial agency or other lender approved by the Secretary, and (5) the term 'contract of insurance' includes a contract of guarantee”. (b) Section 307(b) of the Consolidated Farmers Home Administra tion Act of 1961 is amended by changing "shall" to "may" in the 75 Stat. 308. second sentence. 7 USC 1927. SEC. 129. ORDER OF PREFERENCE, EXTENT OF GUARANTY.-The Consolidated Farmers Home Administration Act of 1961 is amended by 7 USC 1921 adding at the end thereof the following new section: note. 86 STAT. 667 Loan limitations. 79 Stat. 931; 84 Stat. 1855. 7 USC 1926. Ante, pp. 657, 658,663, 665. 16 USC 1001 note. 70 Stat. 1088. 16 USC 1002. 16 USC 1003. Conservation Pub. Law 92-419 - 10 August 30, 1972 "SEC. 344. No loan (other than one to a public body or nonprofit association (including Indian tribes on Federal and State reservations or other federally recognized Indian tribal groups) for community facilities or one of a type authorized by section 306(a)(1) prior to its amendment by the Rural Development Act of 1972) shall be made by the Secretary either for sale as an insured loan or otherwise under section 304(b), 306 (a) (1), 310B, 312(b), or 312(c) unless the Secretary shall have determined that no other lender is willing to make such loan and assume 10 per centum of any loss sustained thereon. No contract guaranteeing any such loan by such other lender shall require the Secretary to participate in more than 90 per centum of any loss sustained thereon." TITLE II—AMENDMENTS TO THE WATERSHED PROTEC- SEC. 201. AMENDMENTS TO PUBLIC LAW 83–566.—The Watershed Protection and Flood Prevention Act (68 Stat. 666), as amended, is amended as follows: (a) Section 1 is amended by striking out the words "the purpose of preventing such damages and of furthering the conservation, development, utilization, and disposal of water, and thereby of preserving and protecting the Nation's land and water resources" and substituting therefor the words "the purpose of preventing such damages, of furthering the conservation, development, utilization, and disposal of water, and the conservation and utilization of land and thereby of preserving, protecting, and improving the Nation's land and water resources and the quality of the environment." (b) Section 2 is amended by substituting a comma for the word "or" after clause (1) and adding after the phrase "(2) the conservation, development, utilization, and disposal of water" a comma and the following: "or "(3) the conservation and proper utilization of land". (c) Section 3 is amended by changing the period at the end of paragraph (5) to a semicolon and adding the following: "(6) to enter into agreements with landowners, operators, and occuprojects, long- piers, individually or collectively, based on conservation plans of such term agreements. landowners, operators, and occupiers which are developed in cooperation with and approved by the soil and water conservation district in which the land described in the agreement is situated, to be carried out on such land during a period of not to exceed ten years, providing for changes in cropping systems and land uses and for the installation of soil and water conservation practices and measures needed to conserve and develop the soil, water, woodland, wildlife, and recreation resources of lands within the area included in plans for works of improvement, as provided for in such plans, including watershed or subwatershed work plans in connection with the eleven watershed improvement programs authorized by section 13 of the Act of December 22, 1944 (58 Stat. 887), as amended and supplemented. Applications for assistance in developing such conservation plans shall be made in writing to the soil and water conservation district involved, and the proposed agreement shall be reviewed by such district. In return for such agreements by landowners, operators, and occupiers the Secretary shall agree to share the costs of carrying out those practices and measures set forth in the agreement for which he determines that cost sharing is appropriate and in the public interest. The portion of such costs, including labor, to be shared shall be that part which the Secretary determines is appropriate and in the public interest for the carrying out of the practices and measures set forth in the agreement. Applications. Federal cost sharing. August 30, 1972 - 11 Pub. Law 92-419 except that the Federal assistance shall not exceed the rate of assistance for similar practices and measures under existing national programs. The Secretary may terminate any agreement with a landowner, operator, or occupier by mutual agreement if the Secretary determines that such termination would be in the public interest, and may agree to such modifications of agreements, previously entered into hereunder, as he deems desirable to carry out the purposes of this paragraph or to facilitate the practical administration of the agreements provided for herein. Notwithstanding any other provision of law, the Secretary, to the extent he deems it desirable to carry out the purposes of this paragraph, may provide in any agreement hereunder for (1) preservation for a period not to exceed the period covered by the agreement and an equal period thereafter of the cropland, crop acreage, and allotment history applicable to land covered by the agreement for the purpose of any Federal program under which such history is used as a basis for an allotment or other limitation on the production of any crop; or (2) surrender of any such history and allotments." 86 STAT. 668 (d) Paragraph (1) of section 4 is amended by inserting after "with- 74 Stat. 254; out cost to the Federal Government" the words "from funds appro- 76 Stat. 603. priated for the purposes of this act". 16 USC 1004. 70 Stat. 1090; 74 Stat. 131. 16 USC 1006a. Limitation. (e) Clause A of paragraph (2) of section 4 is amended by striking all words after "fish and wildlife" and substituting therefor the words "development, recreational development, ground water recharge, water quality management, or the conservation and proper utilization of land: Provided. That works of improvement for water quality man- Water quality agement shall consist primarily of water storage capacity in reservoirs management. for regulation of streamflow, except that any such storage and water releases shall not be provided as a substitute for adequate treatment or other methods of controlling waste at the source, and shall be consistent with standards and regulations adopted by the Water Resources Council on Federal cost sharing for water quality management, and". (f) All that part of clause (B) of paragraph (2) of section 4 which Water storage, follows the word “Provided," where it first appears therein is amended cost sharing. to read as follows: "That, in addition to and without limitation on the authority of the Secretary to make loans or advancements under section 8, the Secretary may pay for any storage of water for present or anticipated future demands or needs for municipal or industrial water included in any reservoir structure constructed or modified under the provisions of this Act as hereinafter provided: Provided further, That the cost of water storage to meet future demands may not exceed 30 per centum of the total estimated cost of such reservoir structure and the local organization shall give reasonable assurances, and there is evidence, that such demands for the use of such storage will be made within a period of time which will permit repayment within the life of the reservoir structure of the cost of such storage: Provided further, Reimbursement. That the Secretary shall determine prior to initiation of construction or modification of any reservoir structure including such water supply storage that there are adequate assurances by the local organization or by an agency of the State having authority to give such assurances, that the Secretary will be reimbursed the cost of water supply storage for anticipated future demands, and that the local organization will pay not less than 50 per centum of the cost of storage for present water supply demands: And provided further, That the cost to be borne by the local organization for anticipated future demands may be repaid within the life of the reservoir structure but in no event to exceed fifty years after the reservoir structure is first used for the storage of water for anticipated future water supply demands, except that (1) no reimbursement of the cost of such water supply storage for anticipated future demands need be made until such supply is first used, and (2) no interest shall be charged on the cost of such water-supply storage |