[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3790 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3790

                  To protect rural electric borrowers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1994

 Ms. Long (for herself, Mr. Skelton, and Mr. Gunderson) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
                  To protect rural electric borrowers.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Consumer Protection Act of 
1994''.

SEC. 2. PROTECTION OF RURAL ELECTRIC BORROWERS.

    The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is 
amended by inserting after section 16 the following:

``SEC. 17. PROHIBITION AGAINST CURTAILMENT OR LIMITATION OF SERVICES OF 
              ELECTRIC BORROWERS.

    ``(a) In General.--Except as provided in subsection (b) of this 
section, section 306(b) of the Consolidated Farm and Rural Development 
Act shall apply to a borrower of an electric loan made or guaranteed 
under this Act in the same manner in which such section applies to an 
association referred to in such section.
    ``(b) Exceptions.--
            ``(1) Waiver by the borrower.--A borrower of an electric 
        loan made or guaranteed under this Act may agree to waive part 
        or all of the protection afforded by subsection (a).
            ``(2) Public interest.--
                    ``(A) Impartial finding.--A municipality may 
                curtail or limit the ability of a borrower of a loan 
                made or guaranteed under this Act to provide electric 
                service if an independent third party, pursuant to this 
                paragraph, determines that the curtailment or 
                limitation--
                            ``(i) is in the public interest;
                            ``(ii) will benefit consumers residing in 
                        the area in which the curtailment or limitation 
                        is to be imposed; and
                            ``(iii) will not adversely impact consumers 
                        residing outside the area.
                    ``(B) Use of independent third party.--If a 
                borrower of a loan made or guaranteed under this Act 
                does not agree to a request of a municipality to 
                curtail or limit the ability of the borrower to provide 
                electric service, the municipality may request the 
                Governor of the State to select an independent third 
                party to make the determination described in 
                subparagraph (A).
                    ``(C) Selection of independent third party.--Upon 
                receipt of a request under subparagraph (B), the 
                Governor shall select as the independent third party--
                            ``(i) the public utility commission of the 
                        State if the public utility commission is 
                        authorized under State law to make the 
                        requested determination; or
                            ``(ii) any entity (including the public 
                        utility commission of the State) qualified to 
                        make the requested determination if the 
                        Governor determines that the public utility 
                        commission is not authorized under State law to 
                        make the requested determination.
                    ``(D) Determination of independent third party is 
                binding.--Any determination made by an independent 
                third party selected in accordance with subparagraph 
                (C) with respect to a request of a municipality to 
                curtail or limit the ability of a borrower to provide 
                electric service shall be binding upon the borrower and 
                the municipality.
    ``(c) Interpretive Rule.--Subsection (a) shall not be construed to 
prevent a municipality from imposing a usual, customary, and 
nondiscriminatory fee on a borrower of a loan made or guaranteed under 
this Act.''.

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