Rural Economic Development Act of 1990

Summary

Rural Economic Development Act of 1989 - Title I: Reorganization of the Department of Agriculture - Amends the Consolidated Farm and Rural Development Act to establish in the Department of Agriculture the Rural Development Administration. Title II: Local Prioritization of Project Funding - Amends the Consolidated Farm and Rural Development Act to set out the framework for certain rural development programs, which shall include: (1) an area plan for long range rural development; and (2) State rural economic development review panels. Authorizes grants for State revolving funds for loans to very small businesses. Title III: Enhancement of Existing Rural Development Programs - Amends the Rural Electrification Act of 1936 to establish in the Rural Electrification Administration a technical assistance unit. Amends the Farm Credit Act of 1971 to authorize banks for cooperatives to make loans for water or waste disposal systems. Title VII: Rural Electrification Provisions - Rural Telecommunications Improvements Act of 1989 - Subtitle A: Amendments Relating to Title I of the 1936 Act - Amends the Rural Electrification Act of 1936 (the Act) to include the balance of all rescinded loans and obligations among the unexpended or unobligated funds which may be carried over for loans by the Administrator (the Administrator) of the Rural Electrification Administration (REA). Prohibits the Administrator and the Governor of the Rural Telephone Bank (the Governor) from: (1) denying or reducing any loan based on a borrower's fund level; or (2) making any loan, guarantee, or grant, unless the borrower has obtained the consent of the State regulatory authority and the loan or grant will not duplicate existing facilities or systems. Subtitle B: Amendments Relating to Title II of the 1936 Act - Prohibits the Administrator and the Governor from making or guaranteeing a telephone grant or a loan which would result in facilities or service duplication. Prohibits the Administrator and the Governor from requiring a telephone loan applicant to increase: (1) rates charged to customers or subscribers; or (2) the ratio of net income or margins before interest to the interest requirements on all the applicant's outstanding and proposed loans. Prohibits the Administrator from treating certain rural development investments as dividends or capital distributions. Requires the Administrator and the Governor to: (1) publish telephone policy standards; (2) use only specified depreciation rates in loan evaluations; and (3) make loans for all authorized purposes. Prohibits the Administrator and the Governor from: (1) rescinding certain telephone loans without the borrower's consent; (2) regulating the order or sequence of advances of funds to any borrower under any combination of approved telephone loans from specified entities; or (3) denying a loan or taking adverse action against a borrower for any reason not based on a published policy standard. Subtitle C: Amendments Relating to Title III of the 1936 Act - Directs the Administrator to maintain separate electric and telephone accounts within the Rural Electric and Telephone Revolving Fund. Sets forth a tier requirement for the interest rates of insured telephone loans. Provides for full use of REA insured loan authority. Prohibits the Administrator from providing guarantee assistance unless the borrower specifically applies for it. Subtitle D: Amendments Relating to Title IV of the 1936 Act - Revises provisions for the Rural Telephone Bank (RTB) Board of Directors. Revises (RTB) provisions relating to: (1) capitalization; (2) pro rata stock purchases by RTB borrowers; (3) authority to set loan levels; and (4) the overcharge on RTB loans made before FY 1988. Provides for full use of RTB loan authority. Title VIII: Miscellaneous - Amends the Consolidated Farm and Rural Development Act to establish local income-based loan rates for health care and related facilities. Increases assistance for communities dependent on natural resources. Directs the Secretary to establish a loan restructuring and servicing program for distressed community facility program borrowers. Amends the Consolidated Farm and Rural Development Act to direct the Secretary to provide water and waste facility loans and grants to alleviate health risks.

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Documents

4 official files

• Reported in House (text)

  Reported in House · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Passed House amended

  summary · EN · 22 March 1990

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• Introduced in House

  summary · EN · 2 November 1989

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