[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2705 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2705

         To eliminate the Rural Electrification Administration.


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                    IN THE HOUSE OF REPRESENTATIVES

                              July 22, 1993

  Mr. Cox (for himself, Mr. Lipinski, Mr. Andrews of New Jersey, Mr. 
Torkildsen, Mr. Shays, Mr. Royce, Mr. King, Mr. Crane, Mr. Porter, and 
 Mr. Dornan) introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
         To eliminate the Rural Electrification Administration.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REDUCTION OF LOAN SUBSIDIES AVAILABLE FROM THE RURAL 
              ELECTRIFICATION ADMINISTRATION.

    (a) Reduction of Loan Subsidies.--
            (1) In general.--Title I of the Rural Electrification Act 
        of 1936 (7 U.S.C. 901-946) is amended by adding at the end the 
        following:

``SEC. 19. INTEREST RATE ON LOANS AND ADVANCES UNDER THIS ACT.

    ``The rate of interest on any loan made on or after the date of the 
enactment of this section, or on any advance made on or after such date 
under loan commitments made at any time, under this Act, shall equal 
the coupon equivalent yield on obligations of the Treasury of the 
United States of comparable maturity, at the most recent auction of 
such obligations by the Department of the Treasury.''.
            (2) Conforming amendments.--
                    (A) Section 4 of such Act (7 U.S.C. 904) is amended 
                by striking ``, and shall bear interest at the rate of 
                2 per centum per annum''.
                    (B) Section 5 of such Act (7 U.S.C. 905) is amended 
                by striking ``, and shall be at a rate of interest of 2 
                per centum per annum''.
                    (C) Section 305 of such Act (7 U.S.C. 935) is 
                amended by striking subsection (b), and by 
                redesignating subsections (c) and (d) as subsections 
                (b) and (c), respectively.
                    (D) Section 408(b) of such Act (7 U.S.C. 948(b)) is 
                amended by striking paragraph (3), and by redesignating 
                paragraphs (4) through (8) as paragraphs (3) through 
                (7), respectively.
    (b) Eligibility of Needy Electric Generation and Transmission 
Cooperatives for Loan Subsidies.--Section 306(a)(15) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(15)) is 
amended by adding at the end the following:
    ``(E) The Secretary may make loans, not to exceed $1,000,000 for 
any single loan, to any cooperative association for the supply and 
distribution of electric power if the Secretary determines that the 
association cannot obtain sufficient credit elsewhere from reliable 
sources at reasonable rates and terms for such purposes.''.
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 2. ELIMINATION OF RURAL ELECTRIFICATION ADMINISTRATION.

    (a) Repeal of Rural Electrification Act of 1936.--The Rural 
Electrification Act of 1936 (7 U.S.C. 901-950b) is repealed.
    (b) Effect on Existing Contracts.--
            (1) In general.--Except as provided in paragraph (2), the 
        repeal made by subsection (a) shall not be construed to permit 
        the violation of any contract entered into before the effective 
        date of this section.
            (2) Sale of outstanding loans.--During the 5-year period 
        that begins on the effective date of this section, the 
        Secretary of Agriculture shall sell to private investors all 
        interests of the United States in the outstanding loans made 
        under the Rural Electrification Act of 1936, for cash only, on 
        the most favorable terms to the Federal Government that are 
        then obtainable.
    (c) References.--Any reference in any law to the Administrator of 
the Rural Electrification Administration is deemed to be a reference to 
the Secretary of Agriculture.
    (d) Effective Date.--This section shall take effect 2 years after 
the date of the enactment of this Act.

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